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.