GUJARAT STEEL TUBES LIMITED
ANNUAL REPORT 1999-2000
Your Directors present the Thirtynineth Annual Report and the Audited
Statements of Accounts of the Company for the year ended 31st March, 2000.
The operations of the company continue to remain suspended through out the
year. The company was declared sick by an order dated 7-11-1997 of the
BIFR. However, Bank of Baroda and other consortium banks had preferred an
appeal against this order before the AAIFR. The AAIFR, in its order dated
19-5-1998, directed the Bank of Baroda to conduct Special Investigative
Audit and asked BIFR to consider afresh the status of the company after
considering the result of the said report.
The BIFR has upheld the contentions of the company on the report of the
Investigative Audit and has declared the company as a sick industrial
company vide its order dated 17-9-1999 within the meaning of clause (o) of
sub-section (1) of Section 3 of the Sick industrial Companies (Special
Provisions) Act, 1985 and appointed the State Bank of India as the
Operating Agency. The Operating Agency has been directed to prepare a
revival proposal and initiate the process of change in management of the
company and to formulate concrete proposal for its rehabilitation.
2. PARTICULARS OF EMPLOYEES
There is no employee who is in receipt of remuneration exceeding the
ceiling specified under Section 217(2A) of the Companies Act, 1956, hence
required particulars under the said Section are not attached.
3. PARTICULARS OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN
EXCHANGE EARNINGS AND OUT GO.
The particulars regarding Conservation of Energy and Technology Absorption
as prescribed by the Companies (Disclosure of Particular in the report of
Board of Directors) Rules, 1988 are not available as the operations of the
company were suspended with effect from 26th May, 1997.
As on 31st March, 2000 there were 211 deposits from public and
shareholders aggregating Rs. 9.36 lacs, which had fallen due for payment,
but remain unclaimed/unpaid.
The tenure of appointment of Shri Apoorva Shah as Managing Director of the
company came to an end on 31st December, 1999. The appointment was not
renewed, further and Shri Apoorva Shah continues to act as Chairman of the
Board of Directors of the company w.e.f. 1st January, 2000.
Shri Apoorva Shah retires from the Board in accordance with Article 115 of
the Articles of Association of the company, but being eligible for the
reappointment, offer himself for the same.
Messrs C.C. Chokshi & Co., Chartered Accountants, Ahmedabad,the Statutory
Auditors of the company, retire at the ensuing Annual General Meeting, but
eligible for reappointment. Your Directors recommend that they be
reappointed as Auditors of the company from the conclusion of this Annual
General Meeting until the conclusion of the next Annual General Meeting of
the company. The remarks of the Auditors in their report and notes attached
to accounts as self-explanatory, and therefore, do not call for any further
For and on behalf of the Board of Directors
Date : 28th June, 2000