cryptogen agro industries ltd Directors report

1997 CRYPTOGEN AGRO INDUSTRIES LIMITED DIRECTORS REPORT The Directors have pleasure in presenting their 4th Annual Report and Accounts for the year ended on 31st March, 1997. 1.0 ACCOUNTS As the Company as implementing its Mushroom Project, for a major part of the year, there were no major commercial transactions. However, the company has incurred a loss of Rs. 10.5 Lacs mainly on account of Depreciation. 2.0 PROJECT STATUS AND FINANCE Your Directors has pleasure in informing you that your company has commenced commercial production for first 10 growing rooms, out of totally envisaged 20 rooms. Almost all the machinery required for these rooms has been installed and commissioned. As you are aware the company had called for the balance of equity capital i.e. allotment money from the shareholders in the month of April 1996 and had also extended the last date of payment to 31st July, 1996. However your directors regret to inform you that an amount of Rs. 139.04 lakhs is yet to be received as on the date of this report. This precisely has put the company in lot of jeopardy while completing the total project of 20 rooms. This has resulted in an over-run in the project cost which has been assessed by the Financial Institutions and M/s. IDBI has already disbursed their share for part financing the over-run. Unless an arrangement for substantial funds is made in immediate future it is difficult to complete the implementation of the project. The board is persuading the matter with various financial institutions/banks and is hopeful of arranging the same. 3.1 FIXED DEPOSIT The company has not accepted any fixed deposits for the year ended 31st March 1997. 3.2 Additions to Fixed Assets during the year was Rs. 816.00 lacs. 3.3 The Issued, Subscribed paid-up Capital of the Company as on 31st March 197 was Rs. 626.17 Lacs. Share application money to the extent of Rs. 139.04 lacs is yet to be collected on account of calls on arrears. 4.0 FINANCIAL INSTITUTIONS The relations with the Financial Institutions viz. M/s. Industrial Development Bank of India and M/s. Bank of India had been generally cordial during the year ended 31st March 1997. 5.0 FOREIGN COLLABORATION By the end of the financial year under consideration the Foreign Collaborator has suffered a major set-back and has one into liquidation after supplying machinery and after parting the growing techniques to the company. This has left the company without any Buy back arrangements for produce. However there has been a wide Demand Supply gap for Mushrooms, in the world market hence a few renowned companies have approached the company for the buying arrangements on long term basis. 6.0 DIRECTORS Mr. Gopal P. Khare and Mr. M.R. Sathe, Directors, retire by rotation and being eligible offer themselves for reappointment. 7.0 AUDITORS REPORT The report of the Auditors and notes forming part of the Accounts are self explanatory. 8.0 AUDITORS The Companys Auditors M/s. A.L. Manjrekar & Co., Chartered Accountants, retire at the ensuing Annual General Meeting and being eligible offer themselves for reappointment. 9.0 The information required under the Companies (Disclosure of particulars in the report of the Board of Directors) Rules, 1988 is enclosed. FOR CRYPTOGEN AGRO INDUSTRIES LTD. SUDHIR G. KHARE MANAGING DIRECTOR Place : Mumbai Date : 21st June, 1997.