GWALIOR STRIPS LIMITED
Your Directors have pleasure in presenting their Tenth Annual Report and the
Audited Statement of Accounts for the year ended 31st March 1994.
The comments in the Auditors Report with the notes to Accounts in schedule 18
are self explanatory.
During the current year despite strenuous efforts, the Company could not
achieve the targetted production mainly on account of the following reasons:
1. The Company could not get required working capital funds for its
operation for a major part of the year; and
2. There was disruption in the flow of job work orders to the Company owing
to disturbed condition in the country.
However, despite the above stated problems the company had achieved a level
of production of 1235 MT and sale of 1257 MT as compared to last year
production of 1897 MT and sale of 2107 MT.
During the previous year, the members had approved a proposal for the
infusion of promoters' equity to meet the shortfall in the working capital
funds. This proposal could not be implemented owing to delay in the approval
of the High Court to the merger of Spring Steel Limited with Gwalior Strips
Limited. In the scheme approved by the members proposing merger of Spring
Steel Limited with your Cornpany there was a clause barring change in the
capital structure before the merger was completed. This matter would
therefore, be pursued at an appropriate time. It is hoped that your Company
could proceed with the issue during the current year.
The draft scheme for the rehabilitation of your Company had been approved by
the BIFR at its meeting held on 11.07.1994 and the same had been published in
the newspapers for the information and objection, if any, of all the
concerned parties. Your Board is hopeful that the Company will receive the
support of Bank and Financial Institutions for the implementation of the
As there had been difficulties in fulfilling the conditions of merger scheme
envisaged in the merger order of the Madhya Pradesh High Court, Gwalior, the
proposal of the merger of Spring Steel Limited with Gwalior Strips Limited
had been since dropped.
The efforts are being made for infusion of promoters' equity to meet the
shortfall in the working capital funds.
Shri Vinod Gupta and Shri J.P. Gupta retire by rotation at the forthcoming
Annual General Meeting and being eligible offer themselves for re-
Shri P.L. Joseph had resigned from the directorship of the Company due to his
keeping poor health. The company placed on record its appreciation for the
valuable services rendered by him during his tenure.
PARTICULARS OF EMPLOYEES
Information required under section 27(2A) of the Companies Act, 1956 is given
in the annexed statement marked Annexure '1'.
INFORMATION REGARDING ENERGY CONSERVATION ETC.
The information pursuant to Section 217(i)(e) of the Companies Act, 1956 read
with Companies (Disclosures of Particulars in the Report of the Board of
Directors) Rule, 1988 is annexed hereto and forms an integral part of the
The Company had not accepted or invited any deposit from the public during
The retiring Auditors M/s. D.R. Malik & Co., Chartered Accountants are
eligible for re-appointment and have indicated their willingrless to act as
such. The Company had obtained from them a certificate to the effect that
their re-appointment, if made, would be in conformity with the limits
prescribed in the relevant Section of the Companies Act, 1956.
The relation between the staff and management remained cordial throughout the
Financial year under report.
Your directors would like to express their thanks for the assistance and co-
operation extended by the Financial Institutions, Banks and Government
Authorities both at the centre and in the state. The Directors also thank
the employees of the Company for the services rendered by them during the
year and also to the shareholders for the confidence reposed by them in the
ANNEXURE TO THE DIRECTORS' REPORT
Information as per Section 217(1)(e) of the Companies Act, 1956 read with
Companies (Disclosure of Particulars in Report of the Board of Directors) Rule, 1988 of the period ended 31.3.1994.
1. CONSERVATION OF ENERGY
Current Year Previous Year
(A) Power & Fuel Consumption 8.13 13.56
Unit KWH (in lacs)
Total Amount (Rs. in lacs) 31.58 38.14
Rate/Unit (Rs./KWH) 3.07 02.81
(B) Own Generation
(Through DC Unit)
Unit KWH (in lacs) NIL 00.10
Unit /per Ltr. of Diesel oil NIL 03.38
Cost/Unit (Rs.) NlL 1.67
(C) Consumption per Unit of production
(CR Strips & Job works)
Production with details Unit
Standard Unit 720
2. TECHNOLOGY ABSORPTION
Research & Development (R&D)
(a) Sustained efforts are made towards energy conservation: R&D
Activities ofthe Company are directed towards energy conservation,
minimise wastage, improve quality with minimal tolerance.
(b) Sustained efforts are made, to improve quality, reduction in
wastage and environment & pollution protection.
(c) Future plan: The above activities shall continue and more efforts
in this direction will be made.
(d) Expenditure on R & D: No separate records for R&D are maintained
and recurring expenditure is merged with various other heads of
TECHNOLOGY ABSORPTION AND INNOVATION:
(a) Continuous efforts are made to improve production by valuing actual
performance against set standards. These measures have helped in
imoprovement in quality, level of production and limiting wastages.
(b) Details of imported technology: No technology has been imported
during the last five years.
3. FOREIGN EXCHANGE EARNING AND OUTGO:
(a) Activities relating to exports: Company's activities are aimed at providing import substitution.
Total Foreign Exchange Used and Earned:
(Rs. in lacs)
Foreign Exchange used NIL
Foreign Exchange Earned NIL
For and on behalf of Board of Directors
Place : New Delhi
Date : 25th Noyember 1994