RAJINDER STEEL LIMITED
Your Directors are pleased to present the 12th Annual Report together with
the Audited Accounts for the financial year ended 30th June, 1997.
In view of the need for conserving resources for the ongoing Capital
Expenditure Programme, dividend has not been recommended for the year ended
30th June, 1997.
Sales and other income for the year under review has risen to Rs.3954
Millions as against Rs.3325 Millions in the previous year, representing an
increase of 19%. However the profitability has been under pressure on
account of high cost of funds, increase in cost of input, liquidity crunch
and sluggish steel market conditions. Thus the Net Profit is Rs. 25
Millions as compared to Rs. 254 Millions at the end of the previous year.
Further to keep pace with the changing scenario of steel industry in India,
the Company continues its efforts for upgradation of technology and
modernisation of the facilities.
The Company undertook backward integration of HR Coil Project at Raipur.
During the course of project implementation, based on the recommendations
of world renowned technology consultants, the changes
incorporated resulted in the Hot Strip Mill being of the state-of-the-art
technology with an inherent capacity of one million tonne/annum of Hot
Rolled Coils. The project is in trial production and has a niche market for
value added products. Since the HR Coil plant capacity utilisation depends
on the availability of consistent quality and economic power, the 50 MW
Captive Power Plant project for Raipur has also been approved by the
Financial Institutions. Having tied up and received sanction for financial
assistance for major portion of the cost of the project the Company is
implementing the Captive Power Plant Project.
ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS
The particulars required to be disclosed under Section 217 (1) (e) of the
Companies Act, 1956, read with the Companies (Disclosure of Particulars in
the Report of Board of Directors) Rules, 1988 are annexed hereto.
PARTICULARS OF EMPLOYEES
As required by the provisions of Section 217 (2A) of the Companies Act,
1956, read with Companies (Particulars of Employees) Rules, 1975 as
amended, the names and other particulars of the employees are set out in
the annexure to the Directors' Report.
The Company has accepted Fixed Deposits during the year under review as per
Section 58A of the Companies Act, 1956 read with the Companies (Acceptance
of Deposit) Rules, 1975. However no deposit has fallen due for
repayment/renewal as at the end of the financial year. Thus no deposit is
remaining unpaid or unclaimed.
Shri K.L. Ahuja, Shri B.M. Chaturvedi and Shri H.B.S. Jolly have resigned
from the Board. Shri B.K. Batra, nominee of IDBI has been replaced by Shri
R.S. Agarwal. The Board places on record its appreciation of the services
rendered by Shri K.L. Ahuja, Shri B.M. Chaturvedi, Shri H.B.S. Jolly and
Shri B.K. Batra during their tenure as Directors of the Company.
Shri T. Raghavendran and Shri J. Jayaraman have been inducted into the
Board as Additional Directors. They hold office upto the date of ensuing
Annual General Meeting. However notices under Section 257 of the Companies
Act, 1956 have been received from members proposing their candidature as
Directors. Dr. Dharmendra Bhandari has been appointed as Director by Unit
Trust of India as its nominee. Shri B.K. Tandon and Shri Umesh Pandey
retire by rotation at the ensuing Annual General Meeting and being eligible
offer themselves for reappointment.
AUDITORS AND AUDITORS' REPORT
M/s. Kamal Gupta Associates hold office until the conclusion of the ensuing
Annual General Meeting. The Company has received a certificate from the
Auditors to the effect that their appointment, if made, would be within the
prescribed limits under Section 224 (1-B) of the Companies Act, 1956.
Accordingly, the said Auditors will be appointed as Auditors, of the
Company at the ensuing Annual General Meeting.
The notes to the Accounts referred to in the Auditors' Report are self
explanatory and therefore, do not call for any further comments.
Your Directors wish to express their sincere thanks to the Financial
Institutions, Banks, Investors and Customers for their continued support
and co-operation during the year under review.
Your Directors also wish to place on record their sense of appreciation for
the devoted service rendered by the Executives, Staff and Workers of the
Company for its continued growth.
For and on behalf of the Board
Date : 1st December, 1997
ANNEXURE TO DIRECTORS' REPORT
Particulars required under the Companies (Disclosure of Particulars in the
Report of Board of Directors) Rules, 1988.
A. CONSERVATION OF ENERGY:
a) Energy Conservation measures taken:
I. Tube Galvanising
For optimum fuel consumption improved design of Molten Zinc Bath heating
furnace is employed for hot dip galvanising of Steel Tubes utilising waste
heat for preheating/flux drying of steel tubes.
II. Steel Making
1. Regulated control of Fume Exhaust Fan Motor at EAF.
2. Avoidance of over or under heating at EAF by standardisation and tuning
of process of DRI Feeding System to EAF.
3. Reduction in fuel oil consumption for Ladle Preheating by adequate
covering of Ladies at preheat stand once after 2 heats.
4. Electrode cooling at EAF.
5. Harmonic filter capacitor banks both on 33 KV and 11 KV to improve power
factor from existing values of 0.85 to above 0.9 thus reducing the maximum
demand and energy consumption.
6. Provision of thermal panel between Roughing Mill and Finishing Mill for
heat retention and subsequent reduction of rolling power.
7. Continuous Hot Slab Charging from Caster to Reheat Furnace.
b) Additional investments and proposals, if any, being implemented for
reduction of consumption of energy:
1. Installation of Coil box for heat conservation during rolling longer
slab of 11 in to achieve 6T of Coil weight.
2. Improved design of ladle lid system in circulating hot steel ladles for
maintaining the temperature of ladle.
c) Impact of the measures at (a) and (b) above for reduction of energy
consumption and consequent impact on the cost of production of goods:
Reduction in power and fuel consumption. Hence reduced cost of production.
d) Total energy consumption and energy consumption per unit of production:
As per Form `A' annexed.
B. TECHNOLOGY ABSORPTION:
e) Efforts made in technology absorption: As per Form 'B' annexed.
C. FOREIGN EXCHANGE EARNINGS AND OUTGO:
f) Activities relating to exports; initiative taken to increase exports;
development of new export markets for products and services; and export
The Company has produced 1.20mm of HR Coils which has got a good potential
g) Total foreign exchange used and earned:
Used : Rs. 7.54 Millions
Earned : Rs. 34.48 Millions