south east agro industries ltd Management discussions

SOUTH EAST AGRO INDUSTRIES LIMITED ANNUAL REPORT 2007-2008 DIRECTORS REPORT MANAGEMENT DISCUSSION AND ANALYSIS PERFORMANCE REVIEW: We have to state that your Company is continuing its export market development work and is focusing new areas and products. Your Board of Directors are confident that the thrust in marketing strategy will bring better results in future. The turnover for the year 2007-08 is showing a downward trend, which is attributable to competition in the market. Your Directors have proposed to skip the dividend in view of accumulating losses. The board is also concerned about the fact that the companys efforts have not yielded any encouraging results. The Company has continued with the task of standardizing its new product range to meet the expectations of foreign market and quite hopeful of achieving better results in the coming year. It has been decided not to provide for the interest on the term loans as in the past for this year. The company had applied for one time settlement of the term loan dues to KSIIDC under OTS Scheme and the same is in the process of finalization during the next year by Board of KSIIDC. RESOURCES AND LIQUIDITY: The resources position of the Company has not shown any improvement as a result of various adverse factors discussed above. The management feels that the Company has to scout for additional resources at lower financial costs to meet the Working Capital gap and Funds required for marketing efforts. INDUSTRY STRATEGY AND OUTLOOK: The share of Indian export in the world market for spices has been showing encouraging growth in the recent years. India has been the centre of Spices and Herbal trade for centuries. It is felt that with the modern technology and strategic planning India can make tremendous progress in the World Herbal Market and your Companys future hopes rests on that