Agri Marine Exports Ltd.
||ISIN Code: N.A.
05:30 | 01 Jan
Agri Marine Exports Ltd
05:30 | 01 Jan
Agri Marine Exports Ltd
Agri Marine Exports Ltd. (AGRIMARINEEXP) - Director Report
Company director report
AGRI MARINE EXPORTS LIMITED
ANNUAL REPORT 2004-2005
Your Directors have pleasure in presenting the Twentieth Annual Report
along with the Audited Accounts for the year ended 31st March 2005.
Your Company has recorded a total other income Rs.62.70 Lakhs during the
year ended 31st March 2005. The Net Loss of your Company during the year
under review is Rs.78.47 Lakhs.
The financial results of the company for the year ended 31st March 2005 are
summarised as follows :-
Rs. in lakhs
Other Income 62.70
Total Expenditure 89.28
Gross Loss before depreciation and taxation 26.58
Net Loss carried to Balance Sheet 78.47
Due to versatility of the Factory, your Company is venturing into export,
of Processed Food Products and Vegetables. The company is able to cut costs
and improve on the revenue through processing. The Company has been
registered with the Board for Industrial and Financial Reconstruction
(BIFR) and the Operating Agency, namely, IDBI is in preparation of a
report. The company is hopeful of getting concessions in the BIFR package.
The Turnover of the subsidiaries, namely, Agri-marine (Europe) Limited
amounted to 1,97,790 UK Pounds while M&M Harvests amounted to Rs.35,120/-
during the year.
The Company has not accepted any deposit from the public during the year.
The Directors Confirm:
a. that in the preparation of the annual accounts, the applicable
accounting standards have been followed and that no material departures
have been made from the same;
b. that they have selected such accounting policies and applied them
consistently and made judgements and estimates that are reasonable and
prudent so as to given a true and fair view of the state of affairs of the
Company at the end of the financial year and of the profit or loss of the
Company for that period;
c. that they have taken proper and sufficient care for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, 1956 for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities;
d. that they have prepared the annual accounts on a going concern basis.
Under Article 79 of the Articles of Association of the Company Mr. S.Muthu,
Director of the Company is retiring by rotation and being eligible offers
himself for reappointment.
PARTICULARS OF EMPLOYEES
With regard to information relating to employees covered under Section
217(2A) of the Companies Act, we wish to report that no employee of the
Company is in receipt of remuneration during the year under review in
excess of the prescribed limits.
M/s Vivekanandan Associates, the auditors of the company retire at the
conclusion of the Annual General Meeting and are eligible for re-
CLARIFICATION ON THE AUDITORS' COMMENTS
Note No.6: The company is following the practice of accounting of export
revenue receipts at the rates prevailing on the date of negotiation. The
net effect would be the same for the revenue would be increased/decreased
and the effect would be shown separately as exchange fluctuation. As the
net effect is the same the company is following this method consistently.
Note No. 4 & 5: The company is optimistic over the realisation of the
Debtors and hence did not warrant any provision for bad and doubtful
debtors. Since the company's credit facilities have become non performing
assets, in some cases, the company could not obtain confirmation of
balances from Banks and Financial Institutions. However, there is no
operation in these accounts and obtaining confirmation is only procedural
and this will not affect in any way.
Note No. 7: The working capital loan has become a non performing asset with
respect to the bank and hence no provision has been made on the said loans.
The company felt that the rate of interest charged by the bank could be
negotiated and hence no provision has been made.
Note No.8: Regarding capitalisation of interest pertaining to term loan
from IDBI, it is clarified that the interest on the loan from IDBI form
part of the fixed assets for which the said loan is raised and hence the
company capitalised the interest.
Point No.4 of Annexure to Auditors Report: The company did not have
purchases during the year and is doing only processing and hence the
internal control procedures for the purchase of raw materials and others
have no bearing on the present company's business.
Point No.9 of Annexure to Auditors Report: Due to the financial crunch
faced by the company; there are delays in depositing the PF and ESI dues.
However, there is no outstanding to be remitted to the authorities.
Disclosure of particulars with respect to conservation of Energy,
Technology Absorption, Foreign Exchange Earnings and outgo as required
under the Companies (Disclosure of particulars in the Report of Board of
Directors) Rules, 1988 and forming part of the report of the Board of
Directors for the year ended 31st March 2004.
Total Foreign Exchange Earnings during the year NIL
Total Foreign Exchange used during the year NIL
The particulars regarding conservation of Energy, Technology Absorption and
R & D are not applicable during the year.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
a. Industry structure and development
The European Union has set standards for marine products and your company
has got the certification of its factory approved. Even after that the
demand for the products abroad has not taken off.
b. Opportunities and threats
The company has ventured into providing the factory on job work basis due
to stiff competition in the international market as well as domestic
c. Segment wise performance
The company is into only one segment of marine products and the performance
is given in the main directors report.
The outlook for the company is encouraging with more and more enquiries for
job work by non certified clients.
e. Risks and concerns
In the absence of any positive trigger for increased marine products
consumption, the strategy would have to contend with severe competition and
focus on demonstrating tangible value through job work.
f. Internal control systems and their adequacy
Your company continues to place considerable emphasis and effort on the
internal control systems.
The matters required to be set in the Corporate Governance is enclosed
alongwith this report.
The Board of Directors thanks its Shareholders, Bankers and Financial
Institutions for their continued support and wishes to place on record its
sincere appreciation and gratitude to all it's employees for their
For and on behalf of the Board
24th August 2005 EHJAZ ELIAS S.H. MOHIDEEN
Chennai - 600 019 Managing Director Director
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