HARPARTAP STEEL LIMITED
Your Directors have the pleasure in presenting the 10th Annual Report
together with the Audited Accounts of the Company for the financial year
ending 31st March, 1996.
Punjab Small Industries & Export Corporation Limited (PSIEC) has allotted
15.01 acres of land at their prestigious industrial estate located at
S.A.S. Nagar (Mohali) in the vicinity of Chandigarh. Directors are pleased
to mention that the civil works on building and foundations completed, all
the imported machinery has been received and erected, major portion of
indigenous plant & machinery and misc. fixed assets have also been received
and erected. Balance of the equipment is in the pipeline.
Inspite of the effective steps to implement the project at the earliest,
the project has been further delayed due to unpredictable circumstances
beyond the control of management and it is now proposed to be commissioned
by last quarter of 1996-97.
Since project is under advanced stage of implementation, comparison of
actual expenditure viz-a-viz projections under various heads as mentioned
in Prospectus is not warranted at this stage. The Company has utilised the
funds as stated in the Prospecturs.
Members are aware that the cost of the project for manufacturing GP/GC
sheets was revised in 1993 to Rs. 4487 lacs. with its means of financing as
term , loans from Financial Institutions/Banks (Rs.1740 lacs), Promoters
contribution (Rs.1047 lacs), Mutual Fund participation (Rs. 25 lacs),
Public Issue (Rs. 1575 lacs), State Subsidy (Rs.30 lacs) and Unsecured
loans from promoters (Rs. 70 lacs) During the year Company has not carried
out any commercial, trading or manufacturing activity and therefore no
Profit & Loss Account has been prepared for this period.
The Company has not invited and as such has not accepted any deposits
during the year.
M/s. Kalia & Co., Chartered Accountants, Auditors of the Company, retire at
the conclusion of this Annual General Meeting and, being eligible, offer
themselves for reappointment. A Certificate u/s 224(1-B) of the Companies
Act, 1956 has been obtained from them
As regards observations of the Auditors in sub para (X) and (XI) of para 5
of their Report, these are self explanatory and do not require further
In terms of Article-86 of Articles of Association of the Company, Dr. N.S.
Datar and Sh. J.S. Dhillon retire by rotation and, being eligible, offer
themselves for reappointment.
POLLUTION AND ENVIRONMENTAL CONTROL
Your Company is installing the most modern plant and equipment involving
state-of-art technology for manufacturing GP/GC Sheets so as to be
environmental friendly and have pollution level well within the permissible
limits as laid down for the project.
Solar Evaporation Drying Ponds are also being provided as stipulated by
Punjab Pollution Control Board who have already issued, "No Objection
Certificate" to the Company.
CONSERVATION OF ENERGY
The indigenous plant and equipments have been procured, designed as per
drawings/ documentation/specifications supplied by M/s. Nippon Kokan Kaisha
(NKK) of Japan-the world leaders in the field. Imported equipments have
been supplied by M/s. Nichimen Corporation of Japan, an associate of NKK as
per the drawings/ specifications/documents of NKK. Technology as such lays
great emphasis on Energy Conservation and effective utilisation of power
Technology related documentation provided by M/s. Nippon Kokan Kaisha (NKK)
has been fully absorbed to get equipment manufactured indigenously as per
NKK's drawings/specifications and in designing of building as well as plant
layout. The operational manuals received have been fully integrated into
FOREIGN EXCHANGE EARNING AND OUTGO
The Company has neither incurred any expenditure in Foreign Currency nor it
has earned any Foreign Exchange during the year.
PERSONNEL AND PARTICULARS OF EMPLOYEES
The relations of the Company with the staff have been cordial during the
period under review.
The Company had no employee in the category specified under Section 217
(2A) of the Companies Act, 1956.
Your Company is thankful for the co-operation, guidance and assistance
extended by All India Financial Institutions viz IDBI, IFCI & ICICI,
Bankers-State Bank of Patiala and Allahabad Bank, Punjab State Industrial
Development Corporation Limited (PSIDC), the Govt. of Punjab and its other
Statutory/Govt. Bodies viz Income Tax, Excise and Sales Tax, Pollution
Control Board, Punjab State Electricity Board, as also Registrar of
Companies for their full support and due co-ordination at this critical
juncture when the project is under implementation.
Your Directors also take this opportunity to place on record their warm
appreciation for the valuable contribution and dedication shown by all the
employees of the Company.
For and on behalf of the Board
Place : Chandigarh
Dated : 30th November, 1996.