Mar 31, 2015
Dear Members,
The Directors have pleasure in presenting you the Twenty Second Annual
Report together with Audited Accounts for the year ended 31st March,
2015.
PERFORMANCE OF THE COMPANY (Rs. In Lakhs)
For the year For the year
ended ended
31/03/2015 31/03/2014
Sales & Other Income 27.13 37.29
Profit/(Loss) before interest and
Depreciation 0.78 (3.01)
Depreciation 1.15 2.72
Net Profit / (Loss) before Tax &
Exceptional items (0.37) (5.73)
Exceptional & Extra-Ordinary items - 7.25
Income Tax 0.10 0.15
Profit on Sale of Assets - 4.98
Net Profit/(Loss) after Tax &
Exceptional Items (0.47) (0.96)
COMPANY'S PERFORMANCE AND OPERATIONS:
The Aqua Farm situated at Isakapalli was given on lease during July,
2013 for seven years. Operating in volatile and uncertain environment
at that time, the company had given the farm on long term lease, netted
a gross income of Rs.27.13 lakhs and incurred a marginal loss of
Rs.0.47 lakhs.
DIVIDEND AND RESERVES
In view of considerable accumulated losses, no dividend is declared and
not transferred any amount to reserves.
FUTURE PROSPECTS:
Sea food exports fell just short of the targeted $6 Billion for the
year 2014- 15, but have still peaked to a new high crossing 1 Million
tonnes in volumes for the first time. Frozen shrimps continued to be
the flagship product, accounting for a share of 34% in quantity and 67%
in US $ value of the total exports. Vannamei, grown in aquaculture
farms was the main item under shrimps. This is achieved despite the
problems in the world market like depreciation of Euro, weak economic
conditions in China and devaluation of Yuan.
The company in order to reduce the losses, the company had given the
farm at Iskapally for a long term lease so that it could be put to
better use and the company will not have any burden of maintenance. As
there is a considerable improvement in the economy revival, the
promoters are exploring opportunities in various fields to revive the
fortunes of the company. The lessee had considerably improved the
infrastructure in farm and operating, with no or negligible maintenance
costs to the Company in immediate future, thereby reducing the financial
costs to the Company except the statutory compliance costs.
PARTICULARS REGARDING ENERGY CONSERVATION etc.:
The information relating to conservation of energy, technology
absorption and foreign exchange earnings and outgo pursuant to Section
134(3) of the Companies Act, 2013 read with Rule 8 of the Companies
(Accounts) Rules, 2014 is given in Annexure V to this Report.
SUBSIDIARY:
The company does not have any subsidiary.
DIRECTORS AND KEY MANAGERIAL PERSONNEL:
In accordance with the provisions of Section 152 of the Companies Act,
2013 read with the Articles of Association of the Company, Smt.
Bommidala Anitha (DIN: 00112766), Non-executive Woman Director retires
by rotation at the forthcoming Annual General Meeting and being
eligible, offers herself for re-appointment.
As required under clause 49 of the Listing Agreement a brief resume,
expertise and details of other directorships of Smt. Bommidala Anitha
(DIN:00112766) annexed to the Notice convening the 22nd Annual General
Meeting of the Company.
All the Independent Directors viz., Sri Tunuguntla Rama Krishna
(DIN:02324865) and Sri Nellore Dolendra Prasad (DIN:01816366) have
submitted declarations confirming that they continued to meet the
criteria of independence as prescribed under Section 149(6) of the
Companies Act, 2013 and Clause 49 of the Listing Agreement with the
Stock Exchanges.
The Board met 7 times during the financial year 2014-15, the details of
which are given in the Corporate Governance Report.
In accordance with the provisions of Section 134 of the Act and Clause
49 of the Listing Agreement, the Board had carried out an evaluation of
its own performance, the performance of Committees of the Board,
namely, Audit Committee, Risk Management Committee, Stakeholders
Relationship Committee and Nomination and Remuneration Committee and
also the directors individually. The manner in which the evaluation was
carried out and the process adopted had been mentioned in the Corporate
Governance Report.
The Board, on the recommendation of the Nomination & Remuneration
Committee, has framed a policy for selection and appointment of
Directors, Senior Management and their remuneration and also framed the
criteria for determining experience, qualifications, positive
attributes and independence of directors.
Sri Bommidala Rama Krishna (DIN: 00105030), Managing Director and Mr.
Arisetty Sai Prasad, Chief Financial Officer (who had been appointed
during the year) are the Key Managerial Personnel of the Company as per
Section 203 of the Companies Act, 2013.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS:
During the financial year 2014-15, the Company has not given any
guarantees/loan or made any investments. However during the year, the
company has repaid an amount of Rs. 10.90 Lakhs due as on 31st March,
2014, but received Rs.4.35 Lakhs (after the repayment of Rs.3.25 lakhs)
interest free loan from Mr. Bommidala Rama Krishna, Managing Director.
PARTICULARS OF EMPLOYEES:
The information required pursuant to Section 197 of the Companies Act,
2013 read with Rule 5 of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014 is given in Annexure VII to the Board
of Directors report.
AUDITORS AND AUDITORS' REPORT Statutory Auditors;
The Shareholders at the 21 st Annual General Meeting held on 13th
September, 2014, had appointed M/s Garlapati & Co., Chartered
Accountants (Firm Regn.No:000892S) as Statutory Auditors of the Company
to hold office until the conclusion of 22nd Annual General Meeting. M/s
Garlapati & Co., being eligible has expressed their willingness to
continue as Statutory auditors of the Company and accordingly, the
company has received a letter from them to the effect that appointment,
if made would be within the prescribed limits under section 141 (3)(g)
of the Companies Act, 2013 that they are not disqualified for
re-appointment and their appointment is recommended to the
Shareholders.
EXPLANATION FOR AUDITORS EMPHASIS OF MATTER:
(a) Regarding Non- Agriculture Tax, there was no demand from the
concerned department. However, the company had shown the amount as
contingent laibilitiy under other notes on account.
(b) Regarding the preparation of accounts on going concern basis the
notes in Indipendent audit report is self explanatory and the company
had given the farm on long term lease and got steady income and been
able to meet its operational expenses.
Internal Auditors:
The Board, as required under Sec 138 of Companies Act, 2013, in
consultation with Audit Committee had appointed M/s. Jonnalagadda &
Associates, Chartered Accountants (Firn Regn. No:01358S) as internal
auditors for the year 2014-15.
Secretarial Auditor:
Pursuant to the provisions of Section 204 of the Companies Act, 2013
read with the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014, the Company has appointed M/s K. Srinivasa Rao
& Co, Company Secretaries in practice as the Secretarial Auditor to
undertake the Secretarial Audit of the Company. The Report of the
Secretarial Audit is given in Annexure-lII to this Report. There were
no qualifications, reservations or adverse remarks given by Secretarial
Auditor except non- compliance of section 203 of the Companies, 2013 in
respect of appointment the Company Secretary as Key Managerial Person.
The Board has made utmost effort for appointment of the Company
Secretary as KMP but has not been able to appoint a Company Secretary
due to lack of suitability of the Candidate to the profile of the
Company in terms of work location, job profile and remuneration.
RISK MANAGEMENT:
As required under Clause 49 of the Listing Agreement, the Company has
constituted a Risk Management Committee. The details of Committee and
its terms of reference are set out in the Corporate Governance Report
forming part of the Board's Report.
The Company has put in place a mechanism to identify, assess, monitor
and mitigate various risks to its key business objectives. Major risks
identified by the business and functions are systematically addressed
through mitigating actions on a continuing basis. The Company has
formulated a Risk Management Policy which is also available on the
Company's website at www.bkvindustries.com
INTERNAL FINANCIAL CONTROLS:
The Company has adequate Internal Financial Controls with proper checks
to ensure that transactions are properly authorised, recorded and
reported apart from safeguarding its assets. These systems are reviewed
and improved on a regular basis. It has a comprehensive budgetary
control system to monitor revenue and expenditure against approved
budget on an ongoing basis.
The internal auditors of the Company review the controls across the key
processes and submit reports periodically to the Management and
significant observations are also presented to the Audit Committee for
review. Follow up mechanism is in place to monitor the implementation
of the various recommendations.
CORPORATE SOCIAL RESPONSIBILITY (CSR) INITIATIVES:
Section 135 of the Companies Act, 2013 provides the threshold limit for
applicability of the CSR to a Company i.e. (a) net worth of the Company
to be ' 500 crore or more; or (b) turnover of the company to be' 1,000
crore or more; or (c) net profit of the company to be ' 5 crore or more.
As the Company does not fall under any of the threshold limits given
above, the provisions of Section 135 are not applicable to the Company.
RELATED PARTY TRANSACTIONS
All contracts/arrangements/transactions entered into during the
financial year with the related parties were on arm's length basis and
were in the ordinary course of business. Section 188(1) of the
Companies Act, 2013 exempts related party transactions that are in the
ordinary course of business and are on arm's length basis. However,
under clause 49 of the Listing Agreement, all material Related Party
Transactions require approval of the shareholders through special
resolution. However, during the year, there are no material related
party transactions, other than the ordinary transactions. The Board of
Directors and the Audit Committee have also approved the said related
party transactions.
There are no materially significant related party transactions with the
promoters, Directors, Key Managerial Personnel or other designated
persons which may have a potential conflict with the interest of the
Company at large. The policy on dealing with Related Party Transactions
as approved by the Board is available at the investors section of the
Company's website at www.bkvindustries.com
The particulars of contracts/arrangements entered into by the Company
with related parties as required to be disclosed are given in Annexure
IV to this Report.
CORPORATE GOVERNANCE:
The Managing Director and the Chief Financial Officer have submitted a
certificate to the Board regarding the financial statements and other
matters as required under the Listing Agreement. Statutory Auditor's
certificate on Corporate Governance compliance is attached to Corporate
Governance report.
MANAGEMENT DISCUSSION AND ANALYSIS:
The Management Discussion and Analysis Report for the year under
review, as stipulated under Clause 49 of the Listing Agreement, form
part of this Annual Report.
TRANSFER TO THE INVESTOR EDUCATION AND PROTECTION FUND:
The company has not declared any dividend till date from inception and
hence not applicable.
DISCLOSURES:
Committees of the Board
During the year, in accordance with the Companies Act, 2013 the Board
re- constituted/re-named some of its Committees and presently the
Company has the following Committees:
* Audit Committee
* Nomination & Remuneration Committee
* Stakeholders Relationship Committee
* Share Transfer Committee
* Risk Management Committee
The details of all the Committees along with their composition, terms
of reference and meetings held during the year are provided with in the
"Report on Corporate Governance" forming part of this Annual Report.
Vigil Mechanism & Whistle Blower Policy
The Company has a vigil mechanism and a whistle blower policy. The same
has been posted on the Company's website and the details of the same
are given in the Corporate Governance Report.
EXTRACT OF THE ANNUAL RETURN
The details of the extract of the Annual Return in Form MGT-9 are given
in Annexure- VI to this Report.
LISTING AGREEMENT WITH STOCK EXCHANGES:
As per the requirement of Listing Agreement, the Company declares that
its securities are listed on the Stock Exchanges of Bombay, Delhi,
Kolkata, Chennai and Hyderabad. The company confirms that it has paid
annual listing fees to the Stock Exchanges of Bombay, Madras, Delhi and
Kolkata for the year 2014-2015. The Hyderabad Stock Exchange Ltd,
Madras Stock Exchange Limited & Delhi Stock Exchange Association
Limited had since informed that SEB1 de-recognized these Stock
Exchanges.
During the year Kolkata Stock Exchange is yet to send their bill for
Listing fees, hence the fees for 2015-16 have not been paid.
DIRECTOR'S RESPONSIBILITY STATEMENT:
Pursuant to the provisions contained in Section 134(3) of the Companies
Act, 2013, your Directors to the best of their knowledge and belief and
according to information and explanations obtained from the management,
confirm that:
in the preparation of the annual accounts for the financial year ended
March 31, 2015, the applicable accounting standards have been followed
and there are no material departures from the same;
the Directors have selected such accounting policies and applied them
consistently except the depreciation accounting policy as per statute
change and made judgments and estimates that are reasonable and prudent
so as to give a true and fair view of the state of affairs of the
Company as at March 31, 2015 and of the cash flows and loss of the
Company for the year ended on that date;
the Directors have taken proper and sufficient care for the maintenance
of adequate accounting records in accordance with the provisions of the
Companies Act, 2013 for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities;
The Directors have prepared the Annual Accounts on a going concern
basis.
The Directors have laid down proper internal financial controls to be
followed by the Company and such controls are adequate and operating
effectively.
the Directors have devised proper systems to ensure compliance with the
provisions of all applicable laws and that such systems are adequate
and operating effectively
GENERAL:
Your Directors state that no disclosure is required in respect of the
following items as there were no transactions on these items during the
year under review:
1. Details relating to deposits covered under Chapter V of the Companies
Act, 2013.
2. Issue of equity shares with differential rights as to dividend,
voting or otherwise.
3. Issue of shares (including sweat equity shares) to employees of the
Company under any scheme.
4. No orders were passed by the Regulators or Courts or Tribunals
which impact the going concern status and the Company's operations in
future.
DELISTING OF SHARES
Company's Ordinary Equity shares are originally listed in the Stock
Exchanges of Mumbai (BSE) and four other Stock Exchanges at New Delhi,
Kolkata, Chennai and Hyderabad. The shares of the company are
compulsorily traded in dematerialized form. The Board considered that
continued listing on all stock exchanges was not necessary and
therefore decided to de-list from Delhi and Calcutta stock exchanges in
pursuance of special resolution passed in the 14th Annual General
Meeting held on 28thSeptember, 2007. However, the company was informed
by Madras Stock Exchange Limited, Hyderabad Stock Exchange Limited, The
Delhi Stock Exchange Association Limited, that SEBI had de-recognized
the above Stock Exchanges. Company is yet to hear from Kolkata Stock
Exchange and not received any bill for Listing Fees from them for the
year 2015-16.
PERSONAL RELATIONS AND APPRECIATION:
The Directors gratefully acknowledge all stakeholders of the Company
viz., lessee, members, employees and banks for their support during the
year. Your directors hereby place on record their appreciation for the
services rendered by the staff of the Company for their hard work,
dedication and commitment.
By order of the Board of Directors
Place: Guntur
Date : 23th July, 2015
BOMMIDALA RAMA KRISHNA
Managing Director
DIN:00105030
Mar 31, 2014
Dear Members,
The Directors have pleasure in presenting you the Twenty First Annual
Report together with Audited Accounts for the year ended 31st March,
2014.
PERFORMANCE OF THE COMPANY (Rs. In Lakhs)
For the year For the year
ended ended
31/03/2014 31/03/2013
Sales & Other Income 37.29 15.70
Profit/(Loss) before interest
and Depreciation (3.01) (16.62)
Depreciation 2.72 3.22
Net Profit / (Loss) before Tax &
Exceptional items (5.73) (19.84)
Exceptional & Extra-Ordinary items 7.25 110.08
Income Tax 0.15 -
Profit on Sale of Assets 4.98 108.36
Net Profit/(Loss) after Tax &
Exceptional Items (0.96) 90.25
OPERATIONS:
The Aqua Farm situated at Isakapalli was given on lease from 1st July,
2013 for seven years and before giving it lease, the company carried
out a minimum culture in the Farm.
Operating in a volatile and uncertain environment, the company had
since given the farm on long term lease, netted a gross income of
Rs.37.29 lakhs, including the sale of shrimp produce and incurred a
marginal loss of Rs.0.96 lakhs.
DIVIDEND:
In view of huge accumulated losses, no dividend is declared.
FUTURE PROSPECTS:
The company to reduce it''s maintenance expenses had given the farm at
Iskapally for a long term lease so that it can reduce losses. As there
is considerable euphoria in the economy and with the change in the
government, the promoters are exploring the opportunities in trading of
merchantised goods in national and international markets.
Explanation for Auditors qualification :
Auditors qualification regarding the operating lease and going concern
are self explanatory and need no further explanation.
PARTICULARS REGARDING ENERGY CONSERVATION etc. :
Information regarding Energy Conservation and Technology Absorption
required to be disclosed under Section 217(1) (e) of the Companies Act,
1956 read with Companies (Disclosure of Particulars in the Report of
Board of Directors) Rules, 1988 is enclosed as annexure.
BOARD:
As per Article 145 of Articles of Association of the Company, Smt.
Bommidala Anitha, director retires by rotation at the Annual General
Meeting and being eligible offers herself for re-appointment.
During the year Sri Bommidala Kasiviswanadham and Mrs. Bommidala Saroja
Devi, the Promoter Directors have offered their resignation from the
Directorships, due to old age and health reasons. Sri Yedlapalli
Srinvasa Rao and Sri Kanteti Sridhar, directors have offered their
resignations due to their personal reasons.
Pursuant to the provisions of Sec 161(1) of Companies Act, 2013, the
Articles of Association of the Company, Sri Nellore Dolendra Prasad and
Sri Tunuguntla Rama Krishna have been re-appointed as independent
directors and shall hold office up to three consequent years from the
closure of the ensuing Annual General Meeting of the company. The
company has received a requisite notice in writing from a member
proposing the above independent directors for appointment as
independent directors.
The company has received declarations from all the independent
directors of the company confirming that they meet with the criteria of
the independence as prescribed both under sec 149(6) of the companies
Act, 2013 and Clause 49 of the Listing Agreement with Stock Exchanges.
PARTICULARS OF EMPLOYEES:
None of the employees of your company was in receipt of remuneration
exceeding the limit prescribed under section 217 (2A) of the Companies
Act, 1956 during the year.
AUDITORS:
M/s. Garlapati & Co, Chartered Accountants, who are the statutory
auditors of the company retire at the conclusion c the Twenty first
Annual General Meeting and being eligible offer themselves for
re-appointment as Statutory Auditors c the Company. The company has
received a letter from them to the effect that appointment, if made,
would be within the prescribed limits under section 141(3)(g) of the
Companies Act, 2013 that they are not disqualified for re-appointment
COST RECORDS
The company had appointed M/s. Sandhya & Co, if applicable as cost
auditors for the compliance of cost records of the company for the
financial year 2013-14.
LISTING AGREEMENT WITH STOCK EXCHANGES:
As per the requirement of Listing Agreement, the Company declares that
its securities are listed on the Stock Exchange: of Bombay, Delhi,
Kolkata, Chennai, and Hyderabad. The company confirms that it has paid
annual listing fees to the Stock Exchanges of Bombay, Madras and
Kolkata for the year 2014-2015. The Hyderabad Stock Exchange Ltd had
stated that no Annual Listing Fees need be paid in view of their
de-recognition by SEBI. The company has applied for delisting of the
Company''s shares to the Stock Exchanges of Chennai, Kolkata, and Delhi
which are under process. There was no demand from Delhi Stock Exchange
and the company has not paid any listing fees.
FIXED DEPOSITS
The Company has not invited / received any fixed deposits during the
period.
DIRECTOR''S RESPONSIBILITY STATEMENT:
Pursuant to the provisions of Section 217 (2AA) of the Companies Act,
1956 your Directors confirm:
a) that in the preparation of the annual accounts for the year ended
31st March, 2014, the applicable accounting standards have been
followed along with proper explanation relating to material departures,
if any;
b) that the directors have selected such accounting policies and
applied them consistently and made judgments and estimates 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 2013-2014
and of the loss of the Company for that year.
c) that the directors have taken 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 fraud and other
irregularities.
d) that the directors have prepared the annual accounts on a going
concern basis.
CORPORATE GOVERNANCE:
A separate report on Corporate Governance with Auditor''s certificate on
its compliance is attached as Annexure to this report.
MANAGEMENT DISCUSSION & ANALYSIS
A. INDUSTRY, STRUCTURE, DEVELOPMENT AND OUTLOOK.
Indian aquaculture farms are upbeat about the rising prospects of
farmed shrimps in the overseas market. Both the black tiger and
vannamei varieties from India have been going at a premium in the
foreign market, particularly in Southeast Asia. A shortage of shrimps
in countries like Thailand, Vietnam, Japan and China has raised the
demand of Indian varieties. The domestic farms have gone on an
overdrive to increase the production. The exports were aggregated at
USD 3.51 billion. "During the financial year 2013-14, exports of marine
products reached an all-time high of USD 5 billion, an official
statement said. In volume terms, the exports were 9.83 lakh tonne.
Among marine products, "frozen shrimp continued to be the major export
value item accounting for 64.12 per cent of the total exports earnings.
B. OPPORTUNITIES, THREATS, RISKS AND CONCERNS
Both values and volumes entering the international fish markets are
showing moderate growth. The market situation overall continues to be
difficult, in particular in traditional developed country markets. The
slightly higher prices for some farmed species are more a symptom of
supply shortages than strong demand. Buoyant demand in South East Asian
countries has driven world aquaculture production to new heights, yet,
at the same time, consumption has slackened in many traditional
developed country markets. In the US, strong interest from buyers
competing for limited supply is contributing to the high prices, while
the US International Trade Commission (USITC) ruled in favour of
abandoning countervailing duties on imported warm-water shrimp from the
seven countries that had been accused by US producers of subsidizing
their shrimp industries, which includes India among other countries.
The Japanese market, totally dependent on imported supplies of shrimp,
is also suffering slightly as a result of the rising prices, in
addition to a weaker yen and increased landing costs. Currently the
market is holding relatively good stocks bought on high prices.
C. INTERNAL CONTROL SYSTEM
The company has a well-established system of internal control in
operation which complies with the relevant provisions on ''Internal
Control'' under the Company''s Auditor''s Report Order 2003 and as
prescribed under revised clause 49 of the Listing Agreement with Stock
Exchanges. All internal controls are continuously reviewed and risks of
inaccurate financial reporting and fraud, if any, are dealt with
immediately and eliminated. The status of implementation of recommended
solutions are regularly reviewed and presented to the Audit Committee
of the Board.
D. FINANCIAL PERFORMANCE
The financial statements are prepared in compliance with the
requirements of the Companies Act, 1956 and Generally Accepted
Accounting Principles in India. The management accepts the
responsibility of integrity and objectivity of the financial statements
and the basis for various estimates and the judgments used in preparing
the financial statements.
During March, 2013, the company entered into a lease agreement of it''s
Farm for a period of 84 months, from July, 2013, as the promoters have
decided to meet the fixed expenses / costs. The company to seize the
opportunities as and when the economy provide the profitable business
opportunities and to control the further losses in operations and to
maintain the farm assets with negligible costs to the company.
E. CAUTIONARY STATEMENT
Statement in this report, particularly those which related to
management discussion and analysis, describing the company''s
objectives, projections, estimates and expectations may constitute "
forward looking statements " within the meaning of applicable laws and
regulations. Actual results might differ materially from those either
expressed or implied. The company has entered into a seven year period
Lease from July, 2013, so that the company was able to curtail
substantial administrative costs and thereby reduce its losses
considerably.
DELISTING OF SHARES:
Company''s Ordinary Equity shares are originally listed in the Stock
Exchanges of Mumbai (BSE) and four other Stock Exchanges at New Delhi,
Kolkata, Chennai and Hyderabad. The shares of the company are
compulsorily traded in dematerialized form. Hyderabad stock exchange
had informed earlier that it had been derecognised by SEBI. Hence no
need to pay listing fee. The Board considered that continued listing on
all stock exchanges was not necessary and therefore decided to de-list
from Delhi and Calcutta stock exchanges in pursuance of special
resolution passed in the 14th Annual General Meeting held on 28th
September, 2007. The company since made an application for delisting of
its shares in Chennai, Delhi and Kolkata stock exchanges and the matter
is under consideration of these Stock Exchanges. However, the
managements opine to renew the matter during the year and proposing to
get the approval from shareholders once again as the Madras Stock
Exchange had since informed the Company that the company can delist
from it''s Stock Exchange Membership, as per SEBI directions and it''s
voluntary de-recognition by the Exchange.
APPRECIATION:
The Board appreciates the valuable co-operation and support extended by
all the employees, Promoter & Independent Directors and shareholders of
the Company.
Place: Guntur By order of the Board of Directors
Date: 6th August, 2014
BOMMIDALA RAMA RISHNA
Managing Director
Mar 31, 2013
The Directors have pleasure in presenting you the Twentieth
Annual Report together with Audited Accounts for the year
ended 31st March, 2013.
PERFORMANCE OF THE COMPANY (Rs. in Lakhs)
For the year ended For the year ended
31/03/2013 31/03/2012
Sales & Other Income 15.70 64.96
Profit/(Loss) before
interest and Depreciation (16.62) 6.84
Depreciation 3.22 6.96
Net Profit / (Loss) before
tax & Exceptional items (19.84) (0.12)
Exceptional items 1.73 6.35
Profit on Sale of Assets 108.36 -
Net Profit/(Loss) after
Tax & Exceptional Items 90.25 6.23
OPERATIONS:
A. Farm : The Aqua Farm situated at Isakapalli was given on lease
during March, 2011 for two years, but the Lessee terminated the lease
in Nov. 2012. The company then explored the possibility of giving it''s
Farm on lease and in process the company identified another party and
gave it''s farm on lease for a period of seven years from July, 2013. In
the meanwhile the company carried out a minimal culture in the Farm.
B Hatchery: During April, 2012, the company disposed off the hatchery
assets in as is where is condition and the proceeds had been utilized
to clear off the interest free unsecured loans extended by the
management director and his associated concern pending for a long time.
DIVIDEND:
In view of huge accumulated losses, no dividend is declared.
FUTURE PROSPECTS:
As stated in the Director''s Report of the previous year, the Hatchery
unit situated at Mypadu Village was disposed off during the year in as
is where is condition and the farm is given for a period of 7 years
lease from July, 2013, there by saving considerable overhead costs.
PARTICULARS REGARDING ENERGY CONSERVATION etc. :
Information regarding Energy Conservation and Technology Absorption
required to be disclosed under Section 217 (1) (e) of the Companies
Act, 1956 read with Companies (Disclosure of Particulars in the Report
of Board of Directors) Rules, 1988 is enclosed as annexure.
BOARD:
As per Article 145 of Articles of Association of the Company, Sri
Kanteti Sridhar, director retires by rotation at the Annual General
Meeting and being eligible offers himself for re-appointment.
As per Article 145 of Articles of Association of the Company, Sri
Dolendra Prasad, director retires by rotation at the Annual General
Meeting and being eligible offers himself for re-appointment.
As per Article 145 of Articles of Association of the Company, Sri
Yedlapalli Srinivasa Rao, director retires by rotation at the Annual
General Meeting and being eligible offers himself for re-appointment.
PARTICULARS OF EMPLOYEES:
None of the employees of your company was in receipt of remuneration
exceeding the limit prescribed under section 217 (2A) of the Companies
Act, 1956 during the year.
AUDITORS:
M/s. Garlapati & Co, Chartered Accountants, who are the statutory
auditors of the company retire at the conclusion of the Twentieth
Annual General Meeting and being eligible offer themselves for
re-appointment as Statutory Auditors of the Company. The company has
received a letter from them to the effect that appointment, if made,
would be within the prescribed limits under section 224 (1B) of the
Companies Act, 1956.
COST RECORDS
The Government had stipulated cost records under Section 209(1)(d) of
the Companies Act, 1956 and as prescribed cost records are being
maintained and the same are being reviewed by the Qualified Cost
Auditor and the Compliance Report under compilation.
LISTING AGREEMENT WITH STOCK EXCHANGES:
As per the requirement of Listing Agreement, the Company declares that
it''s securities are listed on the Stock Exchanges of Bombay, Delhi,
Kolkata, Chennai and Hyderabad. The company confirms that it has paid
annual listing fees to the Stock Exchanges of Bombay, Madras and
Kolkata for the year, 2013-2014. The Hyderabad Stock Exchange Ltd had
stated that no Annual Listing Fees need to be paid in view of their de-
recognition by SEBI. The company has applied for delisting of the
Company''s shares to the Stock Exchanges of Kolkata, and Delhi which are
under process. There was no demand from Delhi Stock Exchange and the
company had not paid any listing fee.
DIRECTOR''S RESPONSIBILITY STATEMENT:
Pursuant to the provisions of Section 217 (2AA) of the Companies Act,
1956 your Directors confirm:
a) that in the preparation of the annual accounts for the year ended 31
March, 2013, the applicable accounting standards have been followed
along with proper explanation relating to material departures, if any;
b) that the directors have selected such accounting policies and
applied them consistently and made judgments and estimates 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, 2012-2013
and of the Profit of the Company for that year.
c) that the directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 to safeguard the assets of the
Company and for preventing and detecting fraud and other
irregularities.
d) that the directors have prepared the annual accounts on a going
concern basis.
CORPORATE GOVERNANCE:
A separate report on Corporate Governance with Auditor''s certificate on
its compliance is attached as Annexure to this report.
DELISTING OF SHARES:
Company''s Ordinary Equity shares are originally listed in the Stock
Exchanges of Mumbai (BSE) and four other Stock Exchanges at New Delhi,
Kolkata, Chennai and Hyderabad. The shares of the company are
compulsorily traded in dematerialized form. The Board considered that
continued listing on all stock exchanges was not necessary and
therefore decided to de-list from Delhi and Calcutta stock exchanges in
pursuance of special resolution passed in the 14 Annual General Meeting
held on 28 September, 2007. The company since made an application for
delisting of its shares in Delhi and Kolkata stock exchanges and the
matter is under consideration of these Stock Exchanges.
APPRECIATION:
The Board appreciates the valuable co-operation and support extended by
all the employees and shareholders of the Company.
By order of the Board of Directors
Place: Guntur
Date: 22nd July, 2013
B. RAMA KRISHNA
Chairman & Managing Director
Mar 31, 2012
The Directors have pleasure in presenting you the Nineteenth Annual
Report together with Audited Accounts for the year ended 31st March,
2012.
PERFORMANCE OF THE COMPANY
(Rs. in Lakhs)
For the year For the year
ended ended
31/03/2012 31/03/2011
Sales & Other Income 64.96 52.97
Profit/(Loss) before interest 6.84 (-) 7.24
and Depreciation
Depreciation 6.96 7.55
Net Profit/(Loss) before tax &
Exceptional items (-) 0.12 (-) 14.79
Exceptional items 6.35 14.14
Net Profit/(Loss) after tax &
Exceptional items 6.23 (-) 0.65
OPERATIONS:
A. Farm : During March, 2011, the Aqua Farm situated at
Isakapalli is given on lease. The company also
invested adequately for improving building structures
like store rooms, administrative office, godowns,
canteen etc so that the entire infrastructure is
improved substantially for future operations.
B. Hatchery: No seed is produced during the year 2011-2012.
However shrimp is produced about 17.43 tonnes in
ponds situated at Hatchery and achieved a shrimp
turnover of Rs. 37.59 lakhs.
DIVIDEND:
In view of huge accumulated losses, no dividend is declared.
FUTURE PROSPECTS:
The company has identified a buyer for its Hatchery at Mypadu in March
2012 in 'as is where is condition' and completed the formalities of
selling the total property at a total price of Rs. 150 Lakhs and could
repay the interest free unsecured loans extended by promoters for more
than a decade. With this transaction the company has become debt free
company and the promoters are reviewing the global market conditions to
venture into commodities and other related business.
PARTICULARS REGARDING ENERGY CONSERVATION etc.:
Information regarding Energy Conservation and Technology Absorption
required to be disclosed under Section 217 (1) (e) of the Companies
Act, 1956 read with Companies (Disclosure of Particulars in the Report
of Board of Directors) Rules, 1988 is enclosed as Annexure.
BOARD:
As per Article 145 of Articles of Association of the Company, Sri B.
Kasiviswanadham, director retires by rotation at the Annual General
Meeting and being eligible offers himself for re-appointment. As per
Article 145 of Articles of Association of the Company, Smt. B.Anitha,
director retires by rotation at the Annual General Meeting and being
eligible offers herself for re-appointment.
PARTICULARS OF EMPLOYEES:
None of the employees of your company was in receipt of remuneration
exceeding the limit prescribed under section 217 (2A) of the Companies
Act, 1956 during the year.
AUDITORS:
M/s. Garlapati & Co, Chartered Accountants, who are the statutory
auditors of the company retire at the conclusion of the Nineteenth
Annual General Meeting and being eligible, offer themselves for
re-appointment as Statutory Auditors of the Company. The company has
received a letter from them to the effect that appointment, if made,
would be within the prescribed limits under section 224 (1B) of the
Companies Act, 1956.
LISTING AGREEMENT WITH STOCK EXCHANGES
As per the requirement of Listing Agreement, the Company declares that
it's securities are listed on the Stock Exchanges of Bombay, Delhi,
Kolkata, Chennai, and Hyderabad. The company confirms that it has paid
annual listing fees to the Stock Exchanges of Kolkata, Bombay and
Chennai for the year 2012-2013. The Hyderabad Stock Exchange Ltd had
stated that no Annual Listing Fees need be paid in view of their
de-recognition by SEBI. The company has applied for delisting of the
Company's shares to the Stock Exchanges of Kolkata, and Delhi which are
under process. There was no demand from Delhi Stock Exchange and the
company has not paid any listing fees.
DIRECTOR'S RESPONSIBILITY STATEMENT:
Pursuant to the provisions of Section 217 (2AA) of the Companies Act,
1956 your Directors confirm:
a) that in the preparation of the annual accounts for the year ended
31st March, 2012, the applicable accounting standards have been
followed along with proper explanation relating to material departures,
if any;
b) that the directors have selected such accounting policies and
applied them consistently and made judgments and estimates 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 2011-2012
and of the Profit of the Company for that year.
c) that the directors have taken 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 fraud and other
irregularities.
d) that the directors have prepared the annual accounts on a going
concern basis.
CORPORATE GOVERNANCE:
A separate report on Corporate Governance with Auditor's certificate on
its compliance is attached as Annexure to this report.
DELISTING OF SHARES:
Company's Ordinary Equity shares are originally listed in the Stock
Exchanges of Mumbai (BSE) and four other Stock Exchanges at New Delhi,
Kolkata, Chennai and Hyderabad. The shares of the company are
compulsorily traded in dematerialized form. The Board considered that
continued listing on all stock exchanges was not necessary and
therefore decided to de-list from Delhi and Calcutta stock exchanges in
pursuance of special resolution passed in the 14th Annual General
Meeting held on 28th September, 2007. The company since made an
application for delisting of its shares in Delhi and Kolkata stock
exchanges and the matter is under consideration of these Stock
Exchanges.
APPRECIATION:
The Board appreciates the valuable co-operation and support extended by
all the employees and shareholders of the Company.
By order of the Board of Directors
B. RAMA KRISHNA
Chairman & Managing Director
Place : Guntur
Date : 04-08-2012
Mar 31, 2011
The Directors have pleasure in presenting you the Eighteenth Annual
Report together with Audited Accounts for the year ended 31st March,
2011.
PERFORMANCE OF THE COMPANY (Rs. in Lakhs)
For the year ended For the year ended
31/03/2011 31/03/2010
Sales & Other Income 52.97 26.16
Profit/(Loss) before
interest 6.90 (-) 7.56
and Depreciation
Depreciation 7.55 8.89
Net Profit / (Loss)
before tax &
(0.65) (-) 16.45
Exceptional item
Net Profit/(Loss)
after tax
(0.65) (-) 16.45
OPERATIONS:
A. Farm : During March, 2011, the Aqua Culture Farm situated at
Isakapalli is given on lease. This will enable the company to
revitalize all its important assets like culture ponds, Feeder canal
structures, electrical installations like, generators, transformers,
lighting facilities etc. The company also invested adequately for
improving building structures like stores rooms, administrative office,
feed god owns, pump houses, generators rooms, canteen etc. so that the
entire infrastructure is improved substantially for future operations.
B. Hatchery: No seed is produced during the year 2010 - 2011. However
shrimp is produced about 15.94 Tonnes in ponds situated at Hatchery and
achieved a shrimp turnover of Rs 37.25 lakhs.
DIVIDEND:
In view of huge accumulated losses, no dividend is declared.
FUTURE PROSPECTS:
After a strong 2010, the current year is expected to yield new records
in international fish trade. Volumes are sustained by firm demand in
most markets and prices are rising for all varieties. The situation in
Japan has added some uncertainty regarding Japanese consumer behavior,
its possible impact on demand for imported fish products and the
repercussions in world markets. India's seafood exports are targeted to
rise to $ 4 billion for the current year, up from $ 2.8 billion which
was achieved in 2010-11. However, due to the projected recession in USA
and Europe, your directors expect that the export growth in the
industry might get slow down during the current year 2011-12.
PARTICULARS REGARDING ENERGY CONSERVATION etc. :
Information regarding Energy Conservation and Technology Absorption
required to be disclosed under Section 217 (1) (e) of the Companies
Act, 1956 read with Companies (Disclosure of Particulars in the Report
of Board of Directors) Rules, 1988 is enclosed as annexure.
BOARD:
As per Article 145 of Articles of Association of the Company, Smt. B.
Saroja Devi, director retires by rotation at the Annual General Meeting
and being eligible offers herself for re-appointment.
As per Article 145 of Articles of Association of the Company, Sri T.
Rama Krishna, director retires by rotation at the Annual General
Meeting and being eligible offers himself for re-appointment.
PARTICULARS OF EMPLOYEES:
None of the employees of your company was in receipt of remuneration
exceeding the limit prescribed under section 217 (2A) of the Companies
Act, 1956 during the year.
AUDITORS:
M/s. Garlapati & Co, Chartered Accountants, who are the statutory
auditors of the company retire at the conclusion of the Eighteenth
Annual General Meeting and being eligible offer themselves for
re-appointment as Statutory Auditors of the Company. The company has
received a letter from them to the effect that appointment, if made,
would be within the prescribed limits under section 224 (1B) of the
Companies Act, 1956.
LISTING AGREEMENT WITH STOCK EXCHANGES:
As per the requirement of Listing Agreement, the Company declares that
it's securities are listed on the Stock Exchanges of Bombay, Delhi,
Kolkata, Chennai, and Hyderabad. The company confirms that it has paid
annual listing fees to the Stock Exchanges of Delhi, Kolkata, Bombay
and Chennai for the year 2011-2012. The Hyderabad Stock Exchange Ltd
have stated that no Annual Listing Fees need be paid in view of their
de-recognition by SEBI. The company has applied for delisting of the
Company's shares to the Stock Exchanges of Kolkata, and Delhi which are
under process.
DIRECTOR'S RESPONSIBILITY STATEMENT:
Pursuant to the provisions of Section 217 (2AA) of the Companies Act,
1956 your Directors confirm :
a) that in the preparation of the annual accounts for the year ended
31st March, 2011, the applicable accounting standards have been
followed along with proper explanation relating to material departures,
if any;
b) that the directors have selected such accounting policies and
applied them consistently and made judgments and estimates 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 2010-2011
and of the loss of the Company for that year.
c) that the directors have taken 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 fraud and other
irregularities.
d) that the directors have prepared the annual accounts on a going
concern basis.
CORPORATE GOVERNANCE:
A separate report on Corporate Governance with Auditor's certificate on
its compliance is attached as
DELISTING OF SHARES:
Company's Ordinary Equity shares are originally listed in the Stock
Exchanges of Mumbai (BSE) and four other Stock Exchanges at New Delhi,
Kolkata, Chennai and Hyderabad. The shares of the company are
compulsorily traded in dematerialized form. The Board considered that
continued listing on all stock exchanges is not necessary and therefore
decided to de-list from Delhi and Calcutta stock exchanges in pursuance
of special resolution passed in the 14th Annual General Meeting held on
28th September, 2007. The company since made an application for
delisting of its shares in Delhi and Kolkata stock exchanges and the
matter is under consideration of these Stock Exchanges.
APPRECIATION:
The Board appreciates the valuable co-operation and support extended by
all the employees and shareholders of the Company.
By order of the Board of Directors
B. RAMA KRISHNA
Place : Guntur Chairman & Managing Director
Date:13/08/2011
Mar 31, 2010
The Directors have pleasure in presenting you the Seventeenth Annual
Report together with Audited Accounts for the year ended 31st March,
2010.
PERFORMANCE OF THE COMPANY (Rs. in Lakhs)
For the year ended For the year ended
31/03/2010 31/03/2009
Sales & Other Income 26.16 7.68
Profit/(Loss) before interest (-) 7.56 (-) 22.48
and Depreciation
Depreciation 8.89 10.34
Net Profit / (Loss) before tax & (-) 16.45 (-)32.82
Exceptional item - 192.43
Exceptional item - 0.10
Fringe Benefit Tax (-) 16.45 159.51
Net Profit/(Loss) after tax &
exceptional Items
OPERATIONS:
A. Farm : No culture is carried out during the year in Farm.
B. Hatchery: No seed is produced during the year 2009 - 2010. However
shrimp is produced about 7.39 Tonnes in ponds situated at Hatchery and
achieved a shrimp turnover of Rs 17.06 lakhs.
DIVIDEND:
In view of huge accumulated losses, no dividend is declared.
The auditors have given a disclaimer in view of discontinuance of
operations in Hatchery and Farm. The note No. Ã C Ã to the notes to
accounts (Schedule 13 ) is self explanatory in nature and the accounts
are drawn up on going concern basis in view of operations of limited
shrimp farming near Hatchery.
FUTURE PROSPECTS:
As there is a volatility in foreign exchange rates, the company is
keenly watching the markets for trading opportunity in items like
Tobacco and other commodities. Since the major portion of losses have
been wiped off, the company is contemplating to raise necessary working
capital funds for trading operations.
CAPITAL RESTRUCTURING :
The Scheme of Arrangement for capital restructuring involving the
reduction of paid-up value of the share from Rs. 10/- to Re.1/- and for
the conversion of secured loans to equity has been approved by the
Honble High Court of Andhra Pradesh dated 13th February, 2009. The
said order was also filed with the office of the Registrar of
Companies, Andhra Pradesh. The scheme has been implemented in full with
the company effecting the reduction of paid-up value of equity share
from Rs.10/- to Re.1/-. Consequently the paid-up share capital of the
company was reduced from Rs. 6,27,94,000/- to Rs. 62,79,400/- wiping
off Rs. 5,65,14,600/- of accumulated losses. The losses of the company
as at 31/03/2010 stood reduced to Rs 4,37,04,583/- as against Rs.
9,85,74,493/- as at 31/03/2009. The shares of the company carrying face
value of Re.1/- have been listed. Further on 29/01/2010 the company
allotted 91,69,184 number equity shares to the promoters of the company
namely Sri B. Kasiviswanadham, Sri B. Rama Krishna & Smt. B. Saroja
Devi by converting Rs. 303.50 lakhs secured loans as per the scheme of
arrangement. This resulted in secured loans getting wiped out and the
paid-up share capital of the company getting increased to Rs.
1,54,48,584/-. Further the promoters holding in the company increased
as under:
Prior to allotment of shares Post allotment of shares on
conversion of loans
18,03,800 - 28.73% 1,09,72,984 - 71.03%
The company employed the Price Discovery Formula as envisaged in the
said Scheme of Arrangement and the price per share as arrived was Rs.
3.31. The company is in the process of obtaining listing of the
aforesaid shares. The New Shares issued are subject to lock-in period
of three years.
PARTICULARS REGARDING ENERGY CONSERVATION etc. :
Information regarding Energy Conservation and Technology Absorption
required to be disclosed under Section 217 (1) (e) of the Companies
Act, 1956 read with Companies (Disclosure of Particulars in the Report
of Board of Directors) Rules, 1988 is enclosed as annexure.
BOARD:
As per Article 145 of Articles of Association of the Company, Sri
Kanteti Sridhar retires by rotation at the Annual General Meeting and
being eligible offers himself for re-appointment .
As per Article 145 of Articles of Association of the Company, Sri
Nellore Dolendra Prasad retires by rotation at the Annual General
Meeting and being eligible offers himself for re-appointment.
PARTICULARS OF EMPLOYEES:
None of the employees of your company was in receipt of remuneration
exceeding the limit prescribed under section 217 (2 A) of the Companies
Act, 1956 during the year.
AUDITORS:
M/s. Garlapati & Co, Chartered Accountants, who are the statutory
auditors of the company retire at the conclusion of the Seventeenth
Annual General Meeting and being eligible offer themselves for re-
appointment as Statutory Auditors of the Company. The company has
received a letter from them to the effect that appointment, if made,
would be within the prescribed limits under section 224 (1B) of the
Companies Act, 1956.
LISTING AGREEMENT WITH STOCK EXCHANGES :
As per the requirement of Listing Agreement, the Company declares that
its securities are listed on the Stock Exchanges of Mumbai, Delhi,
Kolkata, Chennai and Hyderabad. The company confirms that it has paid
annual listing fees to the Stock Exchanges of Mumbai & Chennai for the
year 2010 -11. The Hyderabad Stock Exchange Ltd have stated that no
Annual Listing Fees need be paid in view of their de- recognition by
SEBI. The company has applied for delisting of the Companys shares to
the Stock Exchanges of Kolkata, and Delhi which are under process and
hence not paid annual listing fees for the year 2010- 2011.
DIRECTORS RESPONSIBILITY STATEMENT:
Pursuant to the provisions of Section 217 (2AA) of the Companies Act,
1956, your Directors confirm
a) that in the preparation of the annual accounts for the year ended
31st March, 2010, the applicable accounting standards have been
followed along with proper explanation relating to material departures,
if any;
b) that the directors have selected such accounting policies and
applied them consistently and made judgments and estimates 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 2009-2010
and of the Loss of the Company for that year.
c) that the directors have taken 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 fraud and other
irregularities.
d) that the directors have prepared the annual accounts on a going
concern basis.
CORPORATE GOVERNANCE:
A separate report on Corporate Governance with Auditors certificate on
its compliance is attached as Annexure to this report.
DELISTING OF SHARES:
Companys Ordinary Equity shares are originally listed in the Stock
Exchanges of Mumbai (BSE) and four other Stock Exchanges at New Delhi,
Kolkata, Chennai and Hyderabad. The shares of the company are
compulsorily traded in dematerialized form. The Board considered that
continued listing on all Stock Exchanges is not necessary and therefore
decided to de-list from Delhi and Calcutta Stock Exchanges in pursuance
of special resolution passed in the 14th Annual General Meeting held on
28th September, 2007. The company since made an application for
delisting of its shares in Delhi and Kolkata Stock Exchanges and the
matter is under consideration of these Stock Exchanges.
APPRECIATION :
The Board appreciates the valuable co-operation and support extended by
all the employees and shareholders of the company.
By order of the Board of
Directors
Place : Guntur
Date: 30-08-2010
B. RAMA KRISHNA
Chairman & Managing Director
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