atma steels ltd Directors report

ANNUAL REPORT 1999-2000 ATMA STEELS LIMITED. DIRECTORS REPORT TO THE MEMBERS, ATMA STEELS LIMITED. The Directors present their 28th Annual Report on the operations of the Company together with the audited Statement of Accounts for the year ended March 31, 2000. DIVIDEND In view of losses, the Directors express their inability to recommend any dividend OPERATIONS Since the factory is under closure, there were no sales. The expenses were to the tune of Rs.23.71 Lakhs mainly due to legal expenses Rs.4.80 Lakhs and employee benefit and remuneration of Rs.8.12 Lakhs. Further provision made during the year for diminution in value of stock Rs.36.65 Lakhs, Provision for Doubtful Debts Rs.557.08 Lakhs, Provision for Doubtful Advances Rs.303.92 Lakhs, Provision for diminution in long term investments Rs.3.00 Lakhs and depreciation provided during the year was Rs.115.42 Lakhs. Total Net Expenditure & Provision during the year comes to Rs.1039.78 Lakhs (excluding previous year adjustments of Rs.0.32 Lakhs). CLOSURE OF FACTORY AND FUTURE OUTLOOK As already informed in the last report factory is under closure. As till date Company has not got any relief from Bank/ B.I.F.R. it could not run the unit. I.F.C.I., the operating agency has submitted their report to B.I.F.R. based on which B. l . F R. instructed the operating agency to give advertisement for change of Management and seek fresh proposals for revival of the Company. B. l . F. R. in their order also mentioned that if the existing promoters come out with some other proposal the same shall be considered on priority. Your Company requested B. l. F. R. to allow sale of some of the Fixed Assets in order to settle the dues of the A.I.F.I which was not approved. The Company went into appeal with A.I.F.R. A.I.F.R. heard the appeal and directed the B.I.F.R. to consider the sale of assets subject to court clearances if any required and decided the manner in which it can be done. B.I. F.R. is now take further action in the matter. Company has already submitted its revised proposal to B.I.F.R. Companys future working now depends upon the acceptance of revival package by B. l . F. R. DEPOSITS The Company has not accepted any deposit from the public. DIRECTORS During the period under review, Shri Bansi Ram, Director of the Company retires by rotation at the forthcoming Annual General Meeting and being eligible, offers himself for re-appointment. PERSONNEL The Board wish to express its appreciation to all employees of the Company for their support and co-operation to the Company during this difficult period. The claims of certain Employees retrenched upon closure of factory, have been settled, and for the remaining it is being in the process of settlement. Information in regard to Section 217 (2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules 1975, has not been given since no employee of the Company was in receipt of remuneration for which information is required to be given. CONSERVATION OF ENERGY, TECHNICAL ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO Information required pursuant to 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 relating to the matter contained therein is not applicable as the factory was under closure & there was no production activity during the year. Further, your company has neither earned nor incurred any amount in foreign exchange. SUBSIDIARY The Company does not have any subsidiary company. AUDITORS The Auditors M/s. B.K. Kapur & Co. Chartered Accountants, retire at the conclusion of this Annual General Meeting and eligible for re-appointment. They have furnished certificate to the effect that their re-appointment, if made, would be within the limits prescribed under section 224 (1 B) of the Companies Act, 1956. AUDITORS REPORT The Auditors observations are self explanatory and, therefore, do not call for any further comments. Further, Auditors observations in other paras of their report are noted by the Board for due compliance, wherever required. ACKNOWLEDGMENTS Your Directors wish to place on record their appreciation for the co- operation extended by the Government, Financial Institutions, Bankers, B.I.F.R., A.I.F.R. and other Agencies during this period. We also deeply acknowledge and appreciate the continued trust and confidence reposed by the Shareholders of the Company. On Behalf of the Board of Directors (DEEPAK SINGH) (HARBHAJAN SINGH) Director Managing Director PLACE: NEW DELHI DATE : August 28, 2000