FISHING FALCONS LIMITED
Your Directors present herewith the TENTH Annual Report, along with Audited
Accounts of the Company for the year ended on 31st March, 1996 and the
Auditors' Report thereon.
OPERATIONS OF THE COMPANY
During the year under review the company could operate the vessels hardly
for 4 to 5 months. The total operations came to stand still from October,
95 onwards. The foreign crew complement did not accept the renewal of their
contract period. The Captain of the Vaishnavi-1 had to go on medical
grounds. Due to ecological conditions then prevailing the catch was also
very poor. In addition the market conditions are very bad for fishing
industry as a whole, in particular for Tuna. The future of the industry is
very bleak as the Government policies are also not supporting the industry.
Further the Foreign Collaborator did not remit the Sale Proceeds of the 5th
Sale. This adversely affected the operations of the company due to shortage
of working capital. The Company initiated arbitration proceeding against
the foreign collaborator in the International Chamber of Commerce (ICC) as
per the Buy-Back Agreement, to recover the sale proceeds. As a result of
the above factors the company incurred heavy losses and the total capital
of the company was wiped off.
Under the above circumstances the operations of the Company were completely
stopped. In order to reduce the interest cost and deterioration of the
vessels by keeping them idle, it was decided to dispose-off the vessels
with the help of financial institutions. The SCICI has also requested the
Company to authorise it to identify the prospective buyers for the vessels
under the above adverse conditions, the industry is facing The Board
authorised, the SCICI to locate the prospective buyers
In accordance with the requirements of the Companies Act, 1956 and the
Articles of Association of this Company, your Director Shri S.V.
Chandrasekar retire by rotation and is eligible for re-appointment.
M/s. J.B. Reddy & Co, Chartered Accountants are the Auditors of your
Company and are retiring at the conclusion of this Annual General Meeting.
They are eligible for re-appointment.
Your Directors acknowledge with gratitude the co-operation and assistance
given by SCICI LTD., SBI, ICICI LTD., SBM, MPEDA and other government
Your Directors place on record the appreciation for the services rendered
by the employees of the organisation.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS
CONSERVATION OF ENERGY
Disclosure of particulars regarding energy conservation are not applicable
to the Company.
The technology will be absorbed by the department of Indian Crew in a
FOREIGN EXCHANGE EARNINGS AND OUTGO
a) Earnings : Rs. 4,24,40,128
b) Outgo : Rs. 2,86,10,806
THE COMPANIES (PARTICULARS OF EMPLOYEES) RULES, 1975
Statement of particulars of Employees pursuant to section 217(2A) of the
Companies Act, 1956 is given in Annexure - 1.
For and on behalf of the Board
G. SRIDHAR REDDY
CHAIRMAN AND MANAGING DIRECTOR
Place : Hyderabad
Date : 30th November, 1996.