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Fishing Falcons Ltd.

BSE: 500146 Sector: Others
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Fishing Falcons Ltd. (FISHFALCON) - Director Report

Company director report

1996 FISHING FALCONS LIMITED DIRECTORS' REPORT 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 DIRECTORS 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. AUDITORS 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. ACKNOWLEDGEMENTS Your Directors acknowledge with gratitude the co-operation and assistance given by SCICI LTD., SBI, ICICI LTD., SBM, MPEDA and other government departments. 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 AND OUTGO. CONSERVATION OF ENERGY Disclosure of particulars regarding energy conservation are not applicable to the Company. TECHNOLOGY ABSORPTION The technology will be absorbed by the department of Indian Crew in a phased manner. 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.