SOUTH EAST AGRO INDUSTRIES LIMITED
ANNUAL REPORT 2007-2008
South East Agro Industries Ltd.
The Directors have pleasure in presenting the Annual Report and Audited
Accounts for the Financial Year ended 31st March 2008.
Financial Results 2007-08 2006-07
Exports / Sales and Other Income 42,45,592 77,48,988
Profit / (Loss) before Depreciation
and write offs (71,907) 17,61,434
Depreciation & W/Offs 29,13,554 33,61,514
Miscellaneous expenditure 8,03,980 8,03,978
Profit / (Loss) from Operation (37,89,441) (24,04,058)
Add: Income Tax/ FBT 19,090 9,929
Add : Prior Period Adjustment - 10,386
Profit / (Loss) brought forward (9,87,54,805) (9,63,30,432)
Profit / (Loss) carried forward (10,25,63,336) (9,87,54,805)
MANAGEMENT DISCUSSION AND ANALYSIS:
We have to state that your Company is continuing its export market
development work and is focusing new areas and products. Your Board of
Directors are confident that the thrust in marketing strategy will bring
better results in future.
The turnover for the year 2007-08 is showing a downward trend, which is
attributable to competition in the market.
Your Directors have proposed to skip the dividend in view of accumulating
The board is also concerned about the fact that the company's efforts have
not yielded any encouraging results. The Company has continued with the
task of standardizing its new product range to meet the expectations of
foreign market and quite hopeful of achieving better results in the coming
It has been decided not to provide for the interest on the term loans as in
the past for this year. The company had applied for one time settlement of
the term loan dues to KSIIDC under OTS Scheme and the same is in the
process of finalization during the next year by Board of KSIIDC.
RESOURCES AND LIQUIDITY:
The resources position of the Company has not shown any improvement as a
result of various adverse factors discussed above. The management feels
that the Company has to scout for additional resources at lower financial
costs to meet the Working Capital gap and Funds required for marketing
INDUSTRY STRATEGY AND OUTLOOK:
The share of Indian export in the world market for spices has been showing
encouraging growth in the recent years. India has been the centre of Spices
and Herbal trade for centuries. It is felt that with the modern technology
and strategic planning India can make tremendous progress in the World
Herbal Market and your Company's future hopes rests on that
Sh. Jayaram Banan, and Sh. K. Ishwar Banan, two Directors retire by
rotation and being eligible they offer themselves for re-appointment.
A separate-report on the corporate Governance is attached as a part of this
Annual report, along with Auditor's Certificate
There are no employees falling within -the limits prescribed U/S. 217(2A)
of the Act.
M/s. N.K. Bhat & Associates, Chartered Accountants, New Delhi, retire at
this Annual General Meeting and being eligible offer themselves for re-
DIRECTOR'S RESPONSIBILITY STATEMENT:
We are the Directors of South East Agro Industries Ltd. confirm the
1. that in the preparation of the Annual Accounts, the applicable
Accounting Standards had been followed by the Company.
2. that the Directors had selected such accounting policies and applied
them consistently and made Adjustments 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 financial year and of the profit of the Company
for that period.
3. that the Directors had taken proper and sufficient care for the
maintenance of adequate accounting records with the provisions of the
Companies Act, 1956 for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities.
4. that the Directors had prepared the Annual Accounts on a going concern
Your Directors extend their sincere thanks to the bankers and Financial
Institutions, Shareholders and Customers for their continued support during
the year under review. Your Directors express their grateful appreciation
for the services of the executives, staff of the Company.
For and on behalf of the Board
Place: New Delhi (K.G. Banan)
Dated: 25.06.2008 Director