The Directors hereby present their 7th Annual Report and Audited
Account for the year ended on 31st March 1999.
(Rs. in Lacs) (Rs. in Lacs)
Sales and other income (net) 1.21 1.21
GROSS PROFIT /(LOSS) (60.22) (6.16)
Less : Depreciation - -
Interest - -
PROFIT/(LOSS) BEFORE TAX (60.22) (6.16)
Add : Surplus from previous year (215.40) (221.69)
Profit & Loss Adjustment 10.26 12.45
BALANCE CARRIED TO BALANCE SHEET (266.00) (215.40)
In view of the carry forward losses by the Company during the year
under review, the Directors do not recommend any dividend on the equity
shares for the year ended March 31, 1999.
During the year under review, the Company did not undertake any
commercial production of its crops and continued crop holidays. The
Company has capitalised the entire operating cost in view of no
commercial activity having been undertaken..
Farms under production still continue to get effected by the viral
infection. The Company has entered into an arrangement with M/s.
Shakti Aquaculture Farms Limited to cultivate the farm wherein Shakti
Aquaculture Farms Ltd will bring the requisite working capital required
to operate the farm and share the risk/profit of the business
The Company has not accepted any Fixed Deposit from the Public during
The Company has made adequate arrangements for insuring its properties
and assets against fire and other probable risks. However, the
Insurance Companies have stopped insuring the crops-in-process in view
of the continuous failure of insured crops throughout the country
during the previous year.
Pursuant to Article 110 of the Articles of Association of the Company,
Shri Sharad Ruia retire by rotation at the ensuing Annual General
Meeting and being eligible, offers himself for re-appointment. Shri
S.D. Mahale and Shri M.U. Pandey have submitted their resignation as
Nominee Director and Director of the Company. The Directors place on
record their sincere appreciation and thanks for the guidance given by
these two Directors during their tenure. Further, Shri Pradeep Ruia
has been appointed as an Additional Director of the Company. In view
of the losses by the Company during the year under review, the Managing
Director has not accepted any remuneration from the Company.
As regard to the qualifications of the auditors in their report
regarding Non-provision of Interest on Term Loan and Working Capital
Loan, Non-recognition of interest on Bank Deposit capitalisation of
expenses, non provision of depreciation, Not writing off deferred
revenue expenditure, Non-Writing off preliminery expenditure and share
issue expenses, the directors have to say that Notes no 5, 6, 7, 10 &
11 of the Notes to the Accounts which deals respectively with the said
qualifications are self-explanatory and hence does not require any
During the year, M/s. Sunderlal Desai and Kanodia, Chartered
Accountants have submitted their resignation on 10.8.99 and expressed
their inability to audit the accounts of the company for the year
The casual vacancy in the office of Auditors caused by resignation of
M/s. Sunderlal Desai and Kanodia, Chartered Accountants is filled at
the Extra Ordinary General Meeting held on 4th September 1999,
appointing M.s Kailash Chand Jain & Co., Chartered Accountants. M/s.
Kailash Chand Jain & Co., will retire at the ensuing Annual General
ENERGY CONSERVATION & TECHNOLOGY ABSORPTION
The activities of the Company do not involve much use of energy and
hence cost of energy does not form a major part of the Company's total
cost of production. However, efforts for optimum utilisation and
conservation of energy is being carried out by the Company.
FOREIGN EXCHANGE EARNINGS AND OUTGO
During the year under review, the Company has not spent any amount on
account of foreign exchange outgo. Further, no foreign exchange was
PARTICULARS OF EMPLOYEES
There are no employees whose particulars are required to be given
pursuant to the provisions of Sub-section 217 of the Companies act,
1956 read with the Companies (particulars of employees) Rules, 1975.
PROMISE V/S PERFORMANCE (IN TERMS OF CLAUSE 43 OF THE LISTING
As required under clause 43 of the Listing Agreement with Stock
Exchanges, comparison of promise as given in the Company's Prospectus
dated 28th March, 1994 and actual performance by the Company is given
herein below :
(Rs. in lacs) (Rs. in lacs)
Sales and other income 1020.00 1.21
Profit/(Loss) after tax 294.95 (60.22)
All hardware and software used by the company are Y2K compliant.