SUVARNA AQUA FARM EXPORTS LIMITED
To the Members,
Your Directors hereby present the Seventh Annual Report of the Company with
the Audited Accounts for the year ended 31st March, 1998.
REVIEW OF OPERATIONS FOR 1997-98.
During the year, your Company carried out stocking operations in its Farm
from May, 97 onwards. However, due to the viral disease prevailing in the
coastal area the ponds were affected. Though all steps were taken to
control the disease could not be controlled and subsequently the crop was
lost. During the month of August, 97, the Supreme Court in it's Interim
Order banned fresh stocking of Aqua Farms till further orders. So, the
company could not go in for stocking of the Farm during the second season.
During the year, the repairs to Processing Plant were carried out and trial
runs were conducted and the plant was kept ready for operations. However,
due to lack of working capital, the operations could not be carried out in
Your Company received an adhoc amount of Rs.137.50 lakhs from M/s. National
Insurance Co. Ltd. towards the insurance claim preferred on them on loss
of stock and damages to assets at processing plant caused by floods. The
amount has been adjusted by the bankers against their outstanding.
Besides the effect of disease and natural calamities and the interim ban
imposed by the Hon'ble Supreme Court on Aqua Farming, the operations of
your company were also adversely affected by shortage of Working Capital.
During the year, as there were no operations for most part of the year, your
company has incurred heavy losses which has resulted in more than 100%
erosion of net worth of the Company. It has resulted in the company
becoming a sick industrial company as per the Sick Industrial Companies
(Special Provisions) Act, 1985. The necessary legal formalities in this
regard will be carried out by referring a Petition to BIFR as per SICA,1985
to obtain registration as sick company.
PERFORMANCE Vs. PROMISES
As required by clause 43 of the Listing Agreement, we give below a
statement of actual results for 1997 - 98 compared to those projected in
the Prospectus (Page 19 of Prospectus) dated 8th November, 1993 for the
Rs. in lakhs
Projections for Actuals for
Particulars 1997-98 as per the year
Sales 4513.00 25.61
Net Profit(Loss) 841.00 (1210.86)
Dividend (%) 25.00 Nil
The actual results of the company for the year under review was very low as
compared to the projections given in prospectus. This has been caused,
because of the disease outbreak in the shrimp industry, Crop Holiday and
non operation of the Processing plant due to damages caused by the floods,
Supreme Court's Interim Order on Aqua Farming and lack of Working Capital.
Your company has submitted a proposal to the banks for revival of
operations and is following up with the banks for the approval. Further,
your company is making efforts to prepare a rehabilitation proposal for
submission to the banks for revival of the company. As per the Honourable
Supreme Court's Interim Order, we have applied to the Aqua Culture
Authority for continuing the farming operations.
In the recent modifications to EXIM Policy, 1997-2002, Shrimp and other
marine species have been a wed to be imported under OGL, which gives
tremendous prospects for the most modern processing plant like yours for
processing and export. Hence, the overall prospects of the company could
turn for better in the future.
PARTICULARS OF EMPLOYEES
During the year under review, as the company had to stop the operations due
to various reasons explained earlier, there were strains in the
relationship with the employees. However, the same have been amicably
There were no employees falling under any categories mentioned in Section
217 (2A) of the Companies Act, 1956 read with the Companies (Particulars of
Employees) Rules, 1975.
A. CONSERVATION OF ENERGY
Your Company has accorded high priority to conservation of energy. The
company took all measures for conservation of oil.
B. RESEARCH & DEVELOPMENT AND TECHNOLOGY ABSORPTION
Your Company has an adequately equipped laboratory at the Farm and Hatchery
to ensure quality of both inputs and output products. The Company has
absorbed the technology obtained for its Hatchery operations. The Company
has also established a Research and Development Laboratory in the
Processing plant to ensure the quality of the products to be exported.
C. FOREIGN EXCHANGE EARNINGS AND OUT GO
Foreign Exchange earned during the year on account of Export Sales is
Foreign exchange outflow during the year on account of import of Machinery,
Raw-materials and Consumables is Rs.40.39 lakhs.
The Company has not accepted any Fixed Deposits from the public during the
The Auditors M/s KARVY & COMPANY, Chartered Accountants, the Statutory
Auditors of the Company, retire on conclusion of the forthcoming Annual
General Meeting. They have indicated their availability for re-appointment
pursuant to section 224(1 B) of the Companies Act, 1956.
In accordance with the provisions of the Companies Act, 1956 and the
Articles of Association of the Company, Sri A. Ramesh retire by rotation
and being eligible offers himself for re-appointment.
During the year, Sri Anne Ramesh resigned as Managing Director of the
company. However, he continues to be the Chairman of the company.
During the year, Sri.G.S.Rao resigned as Director of the Company due to his
pre-occupations. Your Directors wish to place on record their appreciation
for guidance during his tenure.
During the year Sri.K.Suresh, Director of the company expired on 31.12.97.
Your directors would like to place on record their appreciation for the
guidance during his tenure and the heart felt condolences to his family on
his untimely demise.
Your directors have formed a Committee of Management consisting of Sri Anne
Ramesh, Sri N. M. Sekharan (Nominee Director of MMTC) and Sri P. Buchi
Prasad to take decisions on major financial matters and other important
matters effecting the company with proper quorum.
Your Directors are pleased to place on record the appreciation for the co-
operation and support extended by State Bank of India, State Bank of
Hyderabad, Induslnd Bank Limited, State Bank of Travancore, MMTC Limited,
The Marine Products Export Development Authority (MPEDA), Risk Capital
and Technology Finance Corporation Ltd. (RCTC), National Bank for
Agriculture and Rural Development (NABARD), Export Inspection Agency (ElA),
Visakhapatnam Export Processing Zone (VEPZ), the Government of Andhra
Pradesh and the Government of India.
The Board also wishes to place on record its appreciation of the valuable
services rendered by the employees of the Company.
The Board also wishes to place on record their appreciation for the
continued support of shareholders.
Date : 23.04.1998
for and on behalf of the Board of Directors