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ANNUAL REPORT 1998-99
BHARAT BERG LIMITED
DIRECTORS REPORT
To the members of
Bharat Berg Limited,
Your Directors present herewith the Thirteenth Annual Report alongwith
Audited Statement of Accounts for the Fifteen Month period ending 30th
June, 1999.
OPERATIONS
During the period under review your company achieved a turnover of
Rs.3288.50 Lacs as compared to Rs. 5498.42 Lacs in the previous period. The
production of GP/GC Sheets during the period was 9318 MTS as against 18253
MTS in the preceding period.
Lower Capacity utilisation, cessation of Sales Tax exemption, sluggish and
highly competitive market conditions had an adverse effect on the
performance of the company. The cumulative effect of the above factors has
resulted in net loss of Rs.2337.92 Lacs during the period as against
Rs.2111.08 Lacs in the previous period.
The period under review had not been good for the Steel Industry which has
witnessed wide spread recession in India and abroad. As reported in our
earlier reports, you are aware that the Board for Industrial and Financial
Reconstruction (BIFR) had ordered winding up of the company in Oct'97.
Appeal was made to Appellate Authority (AAIFR). In July'98, AAIFR upheld
the BIFR order. The company thereafter filed an appeal in the High Court
which was not considered in favour of the Company. Thereafter the Company
also filed Special Leave Petition in the Supreme Court. The Supreme Court
has vide it's order dated 19.07.1999, rejected our appeal. As such, the Law
will take it's own course whereby the Company will have to be eventually
wound up.
FINANCE :-
In view of the losses sustained by the company, its accounts with the
Bankers are irregular on account of inability of the company to honour
commitments under Letter of Credit.The Bankers are not extending any fresh
working capital to the company.
ACCOUNTS :-
As regards the Auditors Report, the explanation given in Notes on Accounts
No.2,9,10 and 11 are self-explanatory. The accounts have been prepared on
going concern basis as the Supreme Court Order was received after the
closing date of the balance sheet. Adequate disclosures are made as
required in Accounting Standards of ICAI.
DIRECTORS :-
Shri H.K. Bajpai, Shri. N.S.Datar and Shri. K.D.Sultanpuri have resigned
during the period. Your Directors wish to place on record their
appreciation for services rendered by them.
Dr.ING ROLF KOHLGRUBER and Shri K A Pardhi retire by rotation and being
eligible offer themselve for re-appointment.
AUDITORS :-
M/s Ghosh Khanna & Co., Chartered Accountants, Auditors of the company
retire at the conclusion of the Annual General Meeting and being eligible
offer themselves for re-appointment.
PERSONNEL :-
The relations with the personnel throughout the period under review have
remained cordial. None of the employees of the company was in receipt of
the remuneration in excess of the Limits prescribed Under Section 217 (2A)
of the companies act 1956 read with companies. (Particulars of Employees)
Rules 1975 as amended.
OTHER STATUTORY INFORMATION :-
Particulars with respect to conversation of energy technology absorption
and foreign exchange earnings and outgo as required Under Section 217(1)(e)
of the companies act, 1956 read with comapnies (Disclosures of particulars
in the report of Board of Directors) Rules, 1988 are set out in Annexure -I
forming part of the Report.
ACKNOWLEDGEMENT:-
Your directors take this opportunity to offer their sincere thanks to the
Financial Institutions, Banks, Central and State Governments and various
departments of Central and State Governments and are especially grateful to
you for your reposing faith and confidence in the Company's Management.Your
Directors also place on record their deep sense of appreciation for the
devoted services rendered by all the employees of the company at all
levels.
For and on behalf of the board
R.R.KUMAR
(CHAIRMAN)
PLACE: MUMBAI
DATE : 16TH September,1999.
Annexure for directors Report
Information as per section 217(1) (e) of the companies Act.1956 read with
companies (Disclosure of particulars in the report of Board of Directors)
Rules,1988 for the period ended 30th June, 1999.
A) Conservation of energy
a) Energy Conservation measures taken:
Various energy saving equipments like capacitors, economizers, motors of
optimum capacity insulated pipe lines and tip covers special type of import
burners, sophisticated automatic temparature control etc have been used.
b) Additional investment and proposals, if any, being implemented for
reduction of consumption of energy
Efforts are being made to locate the possible areas for consumption unit
production.
c) Total energy consumption per unit production as under:
TECHNOLOGY ABSORPTION
EFFORTS MADE IN TECHNOLOGY ABSORPTION AS UNDER:
FORM B
RESEARCH & DEVELOPMENT (R&D)
Specific areas in which R & D carried out by the company:
Thrust areas identified for carrying out R & D activities included:
a) Product Improvement
b) Product development
c) Yield improvement
d) Process Improvement
e) Reduction in Zinc Consumption f) Reduction in Energy Consumption
2.Benefits derived as a result of above efforts: Research & Development
efforts undertaken by the company have produced positive results with the
improvement in the quality of the product, reduction in process loss zinc
consumption, energy saving and consequent cost reduction.
3.Future plan of action: To improve further in the Areas already selected
for carrying out Research & Development.
4.Expenses have not been separately recorded.
TECHNOLOGY ABSORPTION ADOPTION AND INNOVATION
Information regarding Imported Technology.
Details of Technology imported are as under:
(a) Imported Technology : Continuous Hot Dip Galvanising line for Thin
Gauge Steel Strips 1986-87.
(b) Year of Import : Yes
(c) Has Technology been
Fully Absorbed
(d) Foreign Exchange
Earning and outgo : 1998-99 1997-98
Earning NIL NIL
Outgo:
1) CIF value of import of
Raw Material & Spare Parts 41.41 NIL
2) Trading Purchases NIL 119.41
3)Others NIL 33.35
For and on behalf of the Board
R.R.KUMAR
CHAIRMAN
PLACE: MUMBAI
DATE : 16TH September,1999.
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