South East Agro Industries Ltd. के निदेशक की रिपोर्ट

Mar 31, 2013

To, The Members of South East Agro Industries Ltd.

The Directors have pleasure in presenting the Annual Report and Audited Accounts for the Financial Year ended 31st March 2013.

Financial Results 2012-13 2011-12 ( Rs. ) ( Rs. )

Exports / Sales and Other Income 30,96,883 57,93,456

Profit / ( Loss ) before Financial Charges and Depreciation and write offs

Less: Depreciation & W/Offs (14,12,371) (16,35,365)

Profit/(Loss) from Operation (18,97,957) (5,36,087)

Profit / (Loss) brought forward (25,12,680)(1,19,76,593)

Profit / (Loss) carried forward (11,44,10,638)(1,25,12,680)

MANAGEMENT DISCUSSION AND

FINANCIAL REVIEW:

We have to state that Company has been continuing its marketing efforts in the direction of export of its products and search for new product mix has not made much headway. However, there are certain compliances to EJU standards to be completed by the Indian Governmental agencies which are pending. It is expected that the market in the European countries would pick up in future when these are complied with. It is observed that in spite of the Broad Banding of Red Sandalwood by CSEZ, a small consignment has been held up by the customs authorities in Bangalore for want of clearance from DGFT. The procedural hurdles created by the customs authorities in the country is adversely affecting the company''s exports.

Your attention is drawn to the financial results of the Company for the year 2012 - 13 which has shown downward trend I as compared to previous year. The t Export sale/ turnover income has been decreased Rs.30.97 lacs from 57.93 lacs during the last year. This is directly attributable to the problem stated above.

Your Directors do not recommend any dividend for the year in view of continuing losses.

Your company has put in lot of efforts to achieve higher standards by- seeking certification from Export Inspection Agency besides Organic certification with a view to- raise the acceptability of the products in western markets. Your company proposes to continue the task of standardizing its products to meet the expectations of foreign market and is quite hopeful of achieving better results in the coming year.

The Board of Directors are happy to state that the Egg Powder extract (Egg Oil) through Super Critical Fluid Extraction by C02 method, has been a break through.. The product has got good potential in theexport market and it is hoped that in the coming year we may be able to get export orders for this product.

RESOURCES AND LIQUIDITY:

The Company has continued to manage the business in low key in view of the paucity of resources. The management feels that the Company has 1o scout for additional resources at lower financial costs to meet the Working Capitalgap and Funds required for marketing efforts in the coming years.

INDUSTRY STRATEGY AND OUTLOOK:

The export of spices and solvent extracts from india has-been 1he traditional line. However, the essential oils and oleoresins extracted through Super Critical Fluid Extraction (C02) method is a latest technology. It is felt that with the modern technology and strategic planning India can make tremendous progress in the World Herbal Market and your Company''s future hopes rests on that fact: The company has to follow the B2B model till it achieves NFE level as a 100% EOU. Thereafter your management is proposing to some vertical integration and.bring out of the shelf consumer products and follow B2C model in the processed food and field of herbal cosmetics, pharma as well as aromatic products

DIRECTORS :

Sh. Diwakar Banan and Sh. Umesh Kotian, two Directors retire by rotation and being eligible they offer themselves for re-appointment.

CORPORATE GOVERNANCE :

A separate report on the corporate Governance is attached as a part.of this Annual report, along with Auditor''s Certificate

PERSONNEL:

There are no employees falling within the limits prescribed JIS. 217(2A) of the Act.

AUDITORS :

M/s. N.K.Bhat & Associates, Chartered Accountants, New Delhi, retire'' at this Annual General Meeting and being eligible offer themselves for re-appointment.

DIRECTOR''S RESPONSIBILITY STATEMENT :

We are the Directors of South East Agro Industries Ltd. confirm the following:

1. . that in the preparation of the Annual Accounts, the applicable Accounting Standards had been followed by the Company.

2. that the Directors had selected such accounting policies and applied them consistently and made adjustments 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 financial year and of the profit of the Company for that period.

3. that the Directors had taken proper and sufficient care for the maintenance of adequate accounting records with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.

4. that the Directors had prepared the Annual Accounts on a going concern concept basis.

ACKNOWELEDGEMENT :

Your Directors extend their sincere thanks tp the bankers and Financial Institutions, Shareholders and Customers for their continued support during the year under review. Your Directors express their grateful appreciation for the services of the executives, staff of the Company.

For and on behalf of the Board

Place : New Delhi (KG. Banan )

Dated :22/08/2013 Managing Director