CLASSIC BIOTECH AND EXPORTS LIMITED
ANNUAL REPORT 2008-2009
Your Directors takes great pleasure in bringing you 15th Annual Report of
the Company for the Financial year 2008-2009.
Financial performance of the Company
Rs. in Lakhs
Current year Previous Year
ended 31.03.2009 ended 31.03.2008
Gross Income 70.28 89.73
Loss after financial expenses &
depreciation 40.15 62.36
Loss after taxation 40.22 62.41
Loss carried forward to Balance Sheet 435.44 395.21
Mrs. N Ramasita and Mrs N Jhansi Rani Directors, retire by rotation, in the
ensuing Annual General Meeting and being. eligible offer themselves
Directors' Responsibility Statement
Pursuant to the requirement of Section 217 (2AA) of the Companies Act,
1956, with respect to the Directors' Responsibility Statement, Your
Directors wish to confirm that:
1. In the preparation of the Annual Accounts, the applicable accounting
standards have been followed along with proper explanations relating to
material departures, if any;
2. Such Accounting policies have been selected and applied consistently and
judgments and estimates are made that are reasonable and prudent so as to
give a true and fair view of the state of affairs of the Company at the end
of the financial year and of the profit and loss of the Company for that
3. 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 any
fraud or other irregularities has been taken.
4. Accounts for the financial year ended on 31st March 2009 are prepared on
a going-concern basis.
M/s. Krishnam Raju & Associates, Chartered Accountants, retire at the
conclusion of this Annual General Meeting and did not give their
willingness for reappointment, on their personal grounds. The Board has
recommended the appointment of M/s Lakshmana Swamy & Associates as Auditors
of the Company and placed before for your approval.
Replies to Auditors' Report
1. Unsecured loans taken are interest free and accepted on the stipulation
2. TDS and Income Tax Amount is being remitted.
3. Proposal for OTS is still under consideration with the bakers and hence
interest and loans has not been provided and dues have not been paid.
4. Other observations made by the auditors are suitably replied in the
notes on accounts.
Details of Listing are annexed to the Corporate Governance Report
Dematerialization of Shares
Details of Dematerialization of shares are annexed to the Corporate
Requirements under Clause 49 of the Listing Agreement.
In accordance with the Listing agreement, a report on (a) Corporate
governance and (b) Management Discussion & Analysis Report is annexed
The Company has not raised any fixed deposits as on 31st March 2009 so as
to attract the provisions of section 58A of the Companies Act, 1956, read
with the Companies (Acceptance of Deposits) Rules 1975 as amended form time
to time. There is no amount outstanding or due to any deposit holder.
Particulars of conservation of Energy, Technology and Absorption etc
Information required under Section 217(1) (e) of the Companies Act, 1956,
read with the Companies (Disclosure of particulars in the Report of Board
of Directors) Rules, 1988 and forming part of the Directors' Report.
The details relating to conservation of energy (form A) and technology
absorption (form B) are NIL.
The Foreign Exchange earnings and out go are as follows:
Sales Rs. - NIL
Expenditure in Foreign currency Rs. NIL
The company is doing business on deemed export basis (selling by pre fixed
price to exporters).
Particulars of Employees
In pursuance of section 217(2A) of the Companies Act, 1956 none of the
employees of the Company was drawing a remuneration exceeding the limits
stated in section 217(2A) of the Companies Act, 1956.
Your Directors place on record their appreciation for the services rendered
by the employees. The relation between the management and the workers has
been cordial through out the year.
The paid up capital of the company is less than Rs. 5 Crores and hence the
provisions of Section 292 A of the Companies Act 1956 regarding formation
of an Audit Committee is not applicable.
Your Directors take this opportunity to place on record their sincere
appreciation and wish to express their thanks for the guidance and
assistance received from Companys' clients, bankers, Financial
Institutions, Share holders for their continued support and faith in the
Company. Your Directors also wish to appreciate the hardwork and commitment
exhibited by the employees of the Company.
For and on behalf of the Board
Place: Hyderabad N.V. Prasad Raju
Date : 02.09.2009 Chairman
MANAGEMENT DISCUSSION AND ANALYSIS
a) The overall condition of floriculture industry, though satisfactory.
Government regulatory conditions and international market, competition are
the main factory coming in the way of your company to register better
turnover and contribution thereon. OTS with banks could not be completed
during the year for various factory and hopeful of completing the same in
the cusses years.
Your company has registered net sales of 70.50 lakhs and net loss of 40.22
lakhs as against 89.72 lakhs and 62.41 lakhs, respectively, in the previous
b) Internal control system and their adequacy
The management has formulated internal control systems to ensure
safeguarding of the assets and interests of the company. The internal
controlled systems are devised to promote operational efficiencies at the
c) Financial performance with respect to operational performance
The company has achieved a turnover of Rs. 70.50 Lakhs.
The net loss was Rs.40.22 lakhs.
Paidup share capital as at 31st March 2009 stood at Rs 499.98 Lakhs
Loss per share for the year was Rs. 0.80.
d) Human resources development and industrial relations
The industry is Labour oriented and depends on casual Labour for its
production, harvesting and grading activities. The Company recognizes the
contribution of its people in creating a company, which is ranked as one of
the best amongst all the floriculture units in this region.
Industrial relations have been generally cordial during the year.