ANNUAL REPORT 1999-2000
PROGRESSIVE STEELS (INDIA) LIMITED
Your Directors present their Report and Audited Accounts of the company for
the year ended March 31, 2000
OPERATIONS / REASONS OF SICKNESS
Total sales during the year was Rs 499.52 lakhs as against Rs 1443.90 lakhs
in previous year. Out of total sales during the year sales on account of
trading activity was only Rs.45.68 lacs as against Rs.841.01 lacs in the
previous year. Trading activity could not be carried out in full due to
lack of resources and adequate working capital. Manufacturing activity and
corresponding sales have also been lower due to closure/shutdown of plants
of Rolling Division from 14.09.1999 and Casting Division from 14.09.1999
to 19.10.1999 and again from 1.11.19 till the end of financial year..
Company suffered a loss of Rs. 524.97 lacs as against Rs. 99.20 lacs in the
previous year.. Steel Industries in the country has passed through a
difficult phase and there has been overall demand recession for the past 2
years. The problem has further aggravated due to adverse Govt. Policy in
the form of compounding of excise duty for Mini Steel Plants and re-rolling
units w.e.f. September 1997. In Bihar, Mini Steel units have been further
crippled with the imposition of compounding of system of electricity
charges w.e.f September,1999 making the entire operation unviable. As a
result, the company has suffered heavy losses during the year leading to
erosion of networth.
The Auditors have reported that the company has become a sick industrial
company within the meaning of Clause (O) of sub section 1 of section 3 of
Sic Industrial Companies (Special Provisions) Act,1985.. Full erosion of
networth has taken place due to reasons already enumerated above. Hence,
your Directors propose to make reference to Board for Industrial and
Financial Reconstruction after due approval and adoption of accounts by the
shareholders for necessary reliefs and suitable rehabilitation scheme. Your
Directors are hopeful of turning around the unit with a suitable
rehabilitation package approve by BIFR and also because of the fact of
advalorem system of excise duty on Mini Steel Plants in place of
compounding system w.e.f. 01.04.200 .
Sri C. R Sengupta, Director of the company ,retires by rotation, but being
eligible, offers himself for reappointment.
PARTICULARS OF EMPLOYEES
Pursuant to Section 217(2A) of the Companies Act, 1956 read with the
Companies Particulars of Employees) Rules 1975 as amended, particulars of
employees have not been given as no employee was in receipt of remuneration
of Rs.5000 or more per month during the year.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO
The information required under Section 217(1) (e) of the Companies Act,1956
read with the Companies (Disclosure of Particulars in the Report of the
Board of Directors) Rules,1988 with respect to energy consumption is
appended hereto and forms part of this report. Neither the company has
earned nor spent foreign exchange during the year. No new technology has
been imported. Company l;as not undertaken any research and development
activities and no expenditure has been incurred there on.
M/s. R. Sinha Associates, Chartered Accountants were appointed as Auditors
of the company in the last Annual General Meeting of the company held on
29th Sept.,1999 in place of M/s P. Agarwal Co., Chartered Accountants. M/s
R. Sinha & Associates retire at the ensuing Annual Meeting and being
eligible offer themselves for re-appointment.
Notes on accounts referred to in the Auditors Report are self explanatory
and therefore do not require for further comments on the Auditors Report
u/s.217(3) of the companies Act,1956.
Equity Shares of the company are listed with Ahmedabad, Magadh, Mumbai and
Calcutta Stock Exchanges.
Your Directors place on record their appreciation for continued cooperation
and support extended by State Bank of India, Patliputra, Commercial Branch,
For and on behalf of Board of Directors
Place : Patna RAJ KUMAR PATWARI
Date : 28.08 2000 Chairman