| The directors submit their 10th Report and Accounts for the financial
year ended 31st March, 1998.
PRODUCTION AND MARKETING :
The directors present before you the financial statements of the Company as below :-
The Company's turnover and profit has increased significantly during
the financial year 1997-98 in comparison to earlier years, due to
resumption of Electrical power by B.S.E.B. on 01.01.98. The Company
had started its Rolling Division initially from 07.01.98 and there after Foundry unit from 12.02.98. But normal production could not be achieved due to long closure of the unit. The Company, however has achieved a production of 434.630 MT of M. S. Ingots and 451.865 MTs. of CTD Bars during the year.
FINANCIAL RESULTS
(i) Salient features of the financial performance of the company for
the year under review are given below :-
(Rs. in lacs)
Particulars 1997-98 1996-97
Sales 85.10 43.03
Other Income 1.94 1.81
Profit before interest,
Depreciation & other
Appropriations (2.13) (10.80)
Interest paid/provided 5.27 3.97
Profit before depreciation (7.40) (14.77)
Depreciation 10.09 12.12
Misc. Expenses written off 2.82 2.82
Loss on Sale of Fixed Assets 7.96 2.61
Profit/Loss for the year (28.27) (32.32)
(ii) The Company is engaged in iron and steel manufacturing activity. The electric energy is the basic input and vital component therein. Production activity of the unit was stopped on 4th August, 95 due to
illegal disconnection of power supply by Bihar State Electricity Board,
Patna, and who had also arbitrarily raised a bill for additional energy
consumption amounting to Rs. 39.41 crores. The Company had not
acknowledged the debt and accordingly provision against the same has
not been made in accounts. Aggrieved by the bill the Company had filed
a civil writ petition before the Hon'ble High Court Patna for restoration of energy supply and quashing of the additional demand.
The dispute was referred to the arbitration by the Hon'ble High Court
Patna. The Hon'ble Arbitrator had passed an interim award on 28.05.97
directing the Company to deposit Rs. 23.09 lakh (Rs. 13.09 lacs towards
outstanding dues on the company and Rs. 10 lacs deposit money to be
adjusted after the final award) with B.S.E.B. for resumption of power.
B.S.E.B. had filed an appeal against the interim award before the
Hon'ble Patna High Court. Simultaneously your company had also filed a
writ petition for implementation of the interim award. The Hon'ble
High Court Patna dismissed the appeal filed by B.S.E.B. and directed
them to implement and give effect to the arbitration interim award.
Accordingly power was resumed on 01.01.98. Final award of arbitration
is under process. The Directors hope that power resumption will
increase the financial viability of the Company considerably.
INDUSTRIAL RELATION :
Industrial Relations have been cordial throughout the year.
DIRECTORS :
Sri Om Prakash Bajoria is liable to retire by rotation from the board
of the Company and has expressed his willingness to be reappointed. It
has also been recommended by the Board to appoint Mr. Bajoria as a whole time Director on the Board w.e.f. 1st January, 1999. to hold office as such in view of increased responsibility level in the Company.
DIVIDENDS :
The directors do not consider it appropriate to recommend a dividend
for the year, in view of financial losses for the year.
AUDITORS REPORT :
Auditors report is self-explanatory, as such no further comments are
necessary.
AUDITORS :
The Auditors, M/s A. K. Jalan & Associates, Chartered Accountants, retire at the forthcoming AGM and being eligible, are willing-to be reappointed.
PUBLIC DEPOSITS :
The company has not accepted deposits from members of the public during
the year.
OTHER-PARTICULARS :
Particulars in respect of conservation of energy, technology absorption
and foreign exchange earnings and outgo pursuant to Section 217(1)(e)
of the Companies Act, 1956 are as follows :
(a) CONSERVATION OF ENERGY :
Energy efficient equipments have been used and emphasis has been laid
on preventive maintenance. This will reduce cost of production by utilising power judiciously. The benefits out of steps taken above
will be derived by the Company in course of time. Power and fuel conservation - as per form "A" annexed below.
(b) TECHNOLOGY ABSORPTION :
Efforts made in this regard are given in Form "B" annexed below.
(c) FOREIGN EXCHANGE EARNINGS AND OUTGO :
Total foreign exchange used and earned :
Total Usage - Nil Total Earnings - Nil.
PARTICULARS OF EMPLOYEES :
In accordance with Section 217(2A) of the Companies Act, 1956 read with
the Companies (Particulars of Employees) Rules, 1975 as amended are not
applicable to the Company as none of the employee is getting remuneration in excess of the stipulated limits, i.e., Rs. 3,00,000/=
if employed for the year and Rs. 25,000/= or more p.m. if employed for
part of the year.
THANKS :
The Company owes a debt of gratitude to the investing public, financial
institutions, suppliers and banks for their continued support. Also
the outstanding loyalty and dedication shown by employees at all levels
has made the Company to grow to this level. On the behalf and ours,
we express our thanks for their cooperation extended to the Company.
Disclosures of particulars with respect to absorption in 1997-98.
Research and Development :
Specific area in which R & D carried out by the Company. Product
development.
Benefits derived as a results of above R & D.
As a result of above the Company was able to improve its quality of product with savings in consumption of Raw materials and consumable.
Future Plan of Action :
The R & D proposes to cover more areas of cost reduction, improvement
in productivity, quality standardisation and adoption of
specifications.
Technology absorption, adoption and innovation :
Efforts, in brief made towards technology absorption, adoption and Innovation and benefits thereof - Nil. Import of Technology, etc. - Nil.
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