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South East Agro Industries Ltd.

BSE: 531679 Sector: Industrials
NSE: N.A. ISIN Code: N.A.
BSE 05:30 | 01 Jan South East Agro Industries Ltd
NSE 05:30 | 01 Jan South East Agro Industries Ltd

South East Agro Industries Ltd. (SOUTHEASTAGRO) - Director Report

Company director report

SOUTH EAST AGRO INDUSTRIES LIMITED ANNUAL REPORT 2007-2008 DIRECTOR'S REPORT To, The Members 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 (Rs.) (Rs.) Exports / Sales and Other Income 42,45,592 77,48,988 Profit / (Loss) before Depreciation and write offs (71,907) 17,61,434 Less 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: PERFORMANCE REVIEW: 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 losses. 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 year. 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 efforts. 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 DIRECTORS: Sh. Jayaram Banan, and Sh. K. Ishwar Banan, two Directors retire by rotation and being eligible they offer themselves for re-appointment. CORPORATE GOVERNANCE: A separate-report on the corporate Governance is attached as a part of this Annual report, along with Auditor's Certificate PERSONNEL: There are no employees falling within -the limits prescribed U/S. 217(2A) of the Act. AUDITORS: M/s. N.K. Bhat & Associates, Chartered Accountants, New Delhi, retire at this Annual General Meeting and being eligible offer themselves for re- appointment. DIRECTOR'S RESPONSIBILITY STATEMENT: We are the Directors of South East Agro Industries Ltd. confirm the following: 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 concept basis. ACKNOWELEDGEMENT: 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