Other Income 94.93 Total Expenditure 100.16 Gross Loss before depreciation and taxation 5.23 Depreciation 59.97Net Loss carried to Balance Sheet 65.20 FUTURE PLANS Due to versatility of the Factory. Our Company is venturing into export of Processed Food products and Vegetables. The company is able to cut costs and improve on the revenue through processing. The Company has been registered with the Board for Industrial a d Financial Reconstruction (BIFR) and the operating Agency. namely, IDBI is in preparation of a report The company is hopeful of getting concessions in the BIFR package. SUBSIDIARY COMPANIES The Turnover of the subsdiaries namely, Agri-marine (Export) Limited amounted to Rs. 1,57.181 UK Pounds while M&M Harvests did not do any turnover over during the year. PUBLIC DEPOSIT The Company has not accepted any deposit from the public during the year. RESPONSIBILITY STATEMENTS The Directors Confirm: a. That in the preparation of the annual accounts, the applicable accounting standards have been followed and that no material departures have been made from the same: b. That they have selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to given a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit or loss of the Company for that period; c. That they have Jaken 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 they have prepared the annual accounts on a going concern basis. DIRECTORS Under Article 79 of the Articles of Association of the Company Mr.Firoz Elias, Director of the Company is retiring by rotation and being eligible offers himself for reappointment. PARTICULARS OF EMPLOYEES With regard to information relating to employees covered under Section 217(2A) of the Companies Act, we wish to report that no employee of the Company is in receipt of remuneration during the year under review in excess of the prescribed limits. AUDITORS Mrs. Vivekanandan Associates, the auditors of the company retire at the conclusion of the Annual General Meeting and are eligible for re-appointment. CLARIFICATION ON THE AUDITORS' COMMENTS Note No.6: The company is following the practice of accounting of export revenue receipts at the rates prevailing on the date of negotiation. The net effect would be the same for the revenue would be increased decreased and the effect would be shown separately as exchange fluctuation. As the net effect is the same the company is following this method consistently. Note No. 4 & 5: The company is optimistic over the reausation of the Debtors and hence did not warrant any provision, for bad and doubtful debtors. Since the company's credit facilities have become non performing assets, in some cases, the company could not obtain confirmation of balances from Banks and Financial Institutions. However, there-is no operation in these accounts and obtaining confirmation is only procecdural and this will not affect in any way. Note No. 7: The working vpital loan has become a non performing asset with respect to the bank and hence no provision has been made on the said loans. The company felt that the rate of interest cnarged by the bank could be negotiated and hence no provision has ceen made. Note No,8: Regarding capitalisation of interest pertaining to term loan from IDBI, it is par ified that the interest on the loan from IDBI form part of the fixed assets for Which the said loan is raised and hence the company capitalised the interest. Point No.4 of Annexure to auditors Report The company did not have purchases dunrig the year and is doing only processing and hence the internal control procedures for the purchase of raw materials and others have no bearing on the present company's bisiness. Point No.9 of Annexure to auditors Report: Due to the financial crunch faced by the company, there are delays in depositing the PF and ESI dues. However, there is no outstanding to be remitted to the authonties. Disclosure of particulars with respect to conservation of Energy, Technology Absorption, Foreign Exchange Earnings and outgo as required under the Companies (Disclosure of particulars in the Report of Board of Directors) Rules, 1988 and forming part of the report of the Board of Directors for the year ended 31st March 2004. (Rs.in Lakhs) Total Foreign Exchange Earning during the year NIL Total Foreign Exchange used during the year NIL The particulars regarding conservation of Energy, Technology Absorption ane R & D are not applicable during the year.