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Classic Biotech & Exports Ltd.

BSE: 531670 Sector: Others
NSE: N.A. ISIN Code: INE038C01018
BSE 05:30 | 01 Jan Classic Biotech & Exports Ltd
NSE 05:30 | 01 Jan Classic Biotech & Exports Ltd

Classic Biotech & Exports Ltd. (CLASSICBIOTECH) - Director Report

Company director report

CLASSIC BIOTECH AND EXPORTS LIMITED ANNUAL REPORT 2008-2009 DIRECTORS' REPORT Dear members, 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 Directors Mrs. N Ramasita and Mrs N Jhansi Rani Directors, retire by rotation, in the ensuing Annual General Meeting and being. eligible offer themselves reappointment. 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 period; 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. Auditors 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 of bankers. 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. Listing Details of Listing are annexed to the Corporate Governance Report Dematerialization of Shares Details of Dematerialization of shares are annexed to the Corporate Governance Report. 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 herewith. Fixed Deposits 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. Personnel 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. Audit Committee 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. Acknowledgements 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 years. 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 work place. 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.