The Directors have immense pleasure in presenting their Twenty first
Annual Report together with the Audited Accounts for the financial year
ended 31st March, 2014. Your Company has crossed Rs.1000 crores
turnover mark and closed the year with turnover of Rs. 1131.61 crores.
Your Company reported before tax profit at Rs. 105.18 crs and profit
after tax at Rs.69.75 crs for the year.
(Rs. in Lacs)
Profit/(Loss) before Interest,
Depreciation & Tax 11,421.59 5,250.52
Interest 349.96 337.33
Depreciation 553.74 498.38
Profit/(Loss) before Tax 10,517.89 4,414.81
Provision for Income Tax &
Deferred Tax 3,542.89 1,395.66
Profit/(Loss) after Tax 6,975.00 3,019.15
Add: Balance brought
forward from Previous year 5728.35 3,749.94
Profit/(Loss) available for
appropriation 12,703.35 6,769.09
Proposed Dividend on
equity shares 1,362.46 590.40
Corporate Dividend Tax 231.55 100.34
Transfer to General Reserve 700.00 350.00
Surplus carried to
Balance Sheet 10,409.34 5,728.35
Income 113,528.81 65,061.82
Profit/(Loss) before Tax 10,517.89 4,414.81
FEED DIVISION :
Shrimp Feed 1,45,930 1,05,422
Fish Feed - 402
Shrimp Feed 1,49,891 1,02,988
Fish Feed - 405
PROCESSING DIVISION :
Production (MTs) 3,499 2,713
Export Sales :
Direct (MTs) 3,289 2,551
The profit for the year under consideration i.e. 2013-14, before
depreciation, finance charges and tax is Rs.11,421.59 lacs as compared
to a profit of Rs. 5,250.52 lacs in the previous financial year. The
profit for the year after tax is Rs.6975.00 lacs as against a profit of
Rs.3,019.15 lacs during the previous financial year.
For the fourth consecutive year, there was overall increase in the
shrimp culture both in terms of water spread area and stocking density,
mainly because of success of continuous Vannamei shrimp culture.
Remunerative international prices for shrimps has also encouraged new
farmers in taking up the shrimp cultivation. Your directors are glad to
inform that your company''s Shrimp Feed sales grew by 45%. Your
Company''s high quality of shrimp feed and technical support to the
farmers by educating them with best culture practices has made our feed
one of the most preferred by the farmers. The year 2013-14 ended with
shrimp feed sales at 1,49,891 MT, an increase of 46,903 MT as compared
to previous financial year.
The shrimp processing and export division sales recorded export of
3,289 MT in 2013-14 as against 2,551 MT in the previous year,
registering an increase of 29%.
The four windmills of your Company located in Karnataka State with a
total capacity of 3.2 MW have generated 62.39 lac units as against
62.14 lac units generated during the previous year and power generated
was sold to Karnataka Power Transmission Corporation Limited under PPA.
Your Directors are pleased to recommend a dividend of Rs.15/- per
equity share of Rs.10/- each for the financial year 2013-14 aggregating
to Rs.1,362.46 lacs on 90,83,042 equity shares. The dividend if
declared at the ensuing Annual General Meeting, will be paid to those
shareholders whose name appears on the register of members of the
Company on 25th July 2014.
CONSOLIDATED FINANCIAL STATEMENTS
In accordance with the Accounting Standard AS-21 on Consolidated
Financial Statements read with Accounting Standard AS-23 on Accounting
for Investments in Associates and AS-27 on Financial Reporting of
Interest in Joint Ventures, the audited Consolidated Financial
Statements are provided in the Annual Report.
In accordance with the general circular No.2/2011 and Notification No.
51/12/2007-CL-III issued by the Ministry of Corporate Affairs,
Government of India, the Balance Sheet, Profit and Loss Account and
other documents of the subsidiary company is not attached with the
Balance Sheet of the Company. The Company will make available the
Annual Accounts of the subsidiary company and the related detailed
information to any member of the Company who may be interested in
obtaining the same. The annual accounts of the subsidiary company will
also be kept open for inspection at the Registered Office of the
Company. The Consolidated Financial Statements presented by the Company
include the financial results of its subsidiary and associate
In terms of Article 105 and 106 of the Articles of Association of the
Company, Sri N. Ram Prasad retires by rotation at the ensuing Annual
General Meeting and being eligible offers himself for re-appointment.
Sri B.V. Kumar, Sri A.V. Achar, Sri M.S.P. Rao and Sri K. Ramamohana
Rao are Independent Directors of the Company and have held the
positions as such, for more than 5 (five) years.
The Company has received in writing from members along with the deposit
of requisite amount under Section 160 of the Companies Act, 2013,
proposing the candidatures of each of Sri B. V. Kumar,
Sri A. V. Achar, Sri M. S. P. Rao and Sri K. Ramamohana Rao for
appointment as Independent Directors.
Sri B. V. Kumar, Sri A.V. Achar, Sri M.S.P. Rao and Sri K. Ramamohana
Rao are not disqualified from being appointed as Directors in terms of
Section 164 of the Act and have given their consent to act as
Directors. The Company has also received declarations from Sri B.V.
Kumar, Sri A.V. Achar, Sri M.S.P. Rao and Sri K. Ramamohana Rao that
they meet with the criteria of independence as prescribed under Section
149(6) of the Act.
Resolution(s) for re-appointment/appointment of Directors are
propounded for consideration and passing by the shareholders at the
ensuing Annual General Meeting
The Auditors M/s. Karvy & Co., Chartered Accountants will retire at the
conclusion of the forthcoming Annual General Meeting and are eligible
for reappointment. Members are requested to consider their
reappointment for three financial years (ending on 31st March, 2015,
31st March, 2016 and 31st March, 2017) until the conclusion of 24th
Annual General Meeting on remuneration to be decided by the Board of
In pursuance of Section 233 (B) of the Companies Act, 1956 and Ministry
of Corporate Affairs Notification dated 3rd June, 2011, the Board of
Directors have appointed M/s. Sagar & Associates, Cost Accountants,
Hyderabad to carry out Audit of the Cost Accounts of the Company for
the year 2012-13. The cost Audit compliance report for the year ended
31st March, 2013 duly certified by the cost accountant was filed with
the Central Government within the stipulated time. The cost auditors
(represented by Sri E Vidya Sagar) attended the Audit Committee Meeting
where cost audit compliance report was discussed.
The Board of Directors appointed M/s. Sagar & Associates, Cost
Accountants, Hyderabad as Cost Auditors to carry out the Audit of cost
accounts of the Company for the year 2013-14. The due date for filing
the Cost Audit Report for the financial year 2013-14 is September, 30,
PARTICULARS OF EMPLOYEES:
A statement containing the particulars of employees as required under
section 217 (2A) of the Companies Act, 1956 read with Companies
(Particulars of Employees) Rules, 1975 is furnished in Annexure - 1.
CONSERVATION OF ENERGY, TECHNOLOGY AND FOREIGN EXCHANGE:
The details regarding conservation of energy, research and development,
technology absorption, foreign earnings and outgo are furnished at
Annexure - 2 pursuant to the provisions of Sec.217 (1) (e) of the
Companies Act, 1956 read with Companies (Disclosure of Particulars in
the Report of Directors) Rules, 1998.
DIRECTORS'' RESPONSIBILITY STATEMENT:
Your Directors hereby confirm and declare that:
(a) in the preparation of Annual Accounts, the applicable accounting
standards have been followed ;
(b) the accounting policies are consistently applied and reasonable,
prudent judgments and estimates are made 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 Profits of the Company for that period ;
(c) the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of Companies Act, 1956, for safeguarding the assets of the
Company and for preventing and detecting fraud and other irregularities
(d) the Directors have prepared the Annual Accounts on a going concern
As a listed company, necessary measures are taken to comply with the
Listing Agreement with the Stock Exchanges, report on the Corporate
Governance together with a certificate of compliance from the Auditors,
forms part of this report.
Your Directors take this opportunity to express their deep and sincere
gratitude and appreciation for co- operation extended by the
Governmental Agencies, Shareholders and Banks from time to time. Your
Directors also place on record their appreciation for the contributions
made by the employees through their dedication, hard work and
commitment. Your Directors also convey thanks and appreciation to the
valued customers and dealers for their continued patronage.
for and on behalf of the Board
Place: Hyderabad A. INDRA KUMAR
Date : 30.05.2014 Chairman & Managing Director