THE INDIAN STEEL ROLLING MILLS LIMITED
1. The Directors hereby present the 61st Annual Report on the business and
operations of the Company and financial account for the year ended 31st
2. Review of the Current year Operations
1. Consequent to closure of the Mills at Nagapattinam, the only operations
that took place during the year were at Tiruninravur and at Ambattur. The
rolling mill operations at Tiruninravur continued to be affected by erratic
power supply and frequent break downs resulting in low productivity.
Inspite of the efforts made to revive the unit by undertaking revamping
work, the operations have proved to be unviable. The other factors which
adversely affected the economic viability of operations were high fuel and
power consumption, high labourcosts and frequent revision in raw material
(billet) cost without any commensurate increase in the selling price of
finished products. This matter was discussed at length by the Directors and
a decision was arrived at to suspend operations of the units with effect
from 31st January 1995.
In line with legal requirements a notice was given to the labour and an
application was filed with the Labour Commissioner seeking permission to
close down the unit. This has, however, been turned down and an appeal is
now pending before the High Court. The employees are yet to be paid their
settlement pending an agreement with them.
2. Similarly the wire drawing operations at Ambattur were also suspended
due to paucity of margins and the operation resulting in losses.
3. In the meantime, BIFR based on the reference made to them last year and
confirming from the Company, the financial institutions and bankers that
the unit was financially and commercially unviable, appointed ICICI as the
Operating Agency and advised them to identify a potential buyer for
purchase/takeover of the unit. As no concrete proposal was received by the
Operating Agency or the Company from any party during the stipulated
period, BIFR thought it a fit case for winding up and accordingly issued a
public notice inviting objections from any party to such winding up.
4. No objections were received and consequently BIFR decided to forward its
recommendation orders for winding up of the Company to the High Court of
Madras. The High Court will now formally issue the orders for winding up
and appoint a liquidator to manage the affairs of the company.
5. As already informed in the previous Annual General Meeting held last
year the properties at Nagapattinam and Karaikal are being disposed of.
While agreements were concluded, the actual process of sale are yet to be
completed and are being carried out in a phased manner. The properties of
the Company at Tiruninravur and Ambattur are yet to be disposed off, the
realisation from which will go to liquidats the debts with Financial
Institutions and Banks.
6. As mentioned earlier, the sale proceeds of assets are being utilised for
repayment of term loans from Financial Institutions, whereas the
institutions have adjusted the amounts paid so far against the unpaid
interest leaving the principal amount to attract higher interest. This has
resulted in a higher demand for interest by the Financial Institutions.
7. Notes 1(a), 2(v) and 2(vi) appearing in Schedule 12 of the Accounts,
referred to in the Auditors Report are self explanatory.
4. Industrial Relations
Consequent to the closure of Nagapattinam and Karaikal Unit last year, an
agreement for settlement was arrived with workers of both these units and
they have been settled.
An agreement is yet to be entered into with the workers at Tiruninravur for
1. Mr. S.A. Sabavala has submitted his resignation from the Board in June
1995. The Board wishes to place on record the services of Mr. S.A. Sabavala
during his tenure as a Director.
2. Life Insurance Corporation of India withdrew its nominee Mr. E.
Ramanathan on the Board of this Company. The Board wishes to place on
record the services of Mr. E. Ramanathan during his tenure as a Director.
3. The following Directors retire by rotation and are eligible for re-
Mr. S. Ramasubramaniam Mr. V.B. Gokarn
The Directors wish to place on record the continuous support the Company
has been receiving from Tata Iron and Steel Co. Ltd and its associate
companies, Special Steels Ltd and Tata Metals and Strips Ltd.
The Directors wish to place on record the support extended to the Company
by the financial institutions viz. ICICI,IRBI,IFCI,UTI,PIPDIC and the
Company s Bankers, State Bank of India.
Details as required under Section 217(1)(e) of the Companies Act, 1956 read
with Companies (Disclosures of Particulars in the Report of Board of
Directors) Rules, 1988 are given in the Annexure. The Company had no
employees of the category mentioned in Section 217(2A) of the Companies Act
ANNEXURE TO DIRECTORS' REPORT
Form for disclosure of particulars with respect to conservation of energy
A. POWER AND FUEL CONSUMPTION 1994-95 1993-94
a) Purchased Unit ('000 Kwh) 2410 3452
Total Amount ('000 Rs.) 8089 10264
Rate/Unit (in Rs./Kwh) 3.36 2.97
b) Own Generation
Generated Unit ('000 Kwh) 190 378
Unit per litre of Diesel Oil/Gas 1.70 2.27
Cost/Unit (in Rs./Kwh) 5.62 3.42
2. Furnace Oil
Quantity (K.Ltr) 899 874
Total Amount('000 Cums) 5250 5486
Avg. Rate (in Rs./'000 Cums) 5840 6880
3. Natural Gas
Quantity ('000 Cum) -- 1165
Total Amount ('000 Rs.) -- 3953
Avg. Rate (in Rs./000 Cums) -- 3395
B. CONSUMPTION PER UNIT OF PRODUCTION
Electricity (Kwh/Ton) Oil/Gas (M.Cal/Ton)
1994-95 1993-94 1994-95 1993-94
Bars/Rods 220 174 0.83 1.03
Billets/Ingots -- Nil -- Nil
Total Foreign Exchange used
(excluding canalised imports) Nil Nil
Value of production for exports in Rupees Nil Nil
TECHNOLOGY ABSORPTION, ADOPTION AND INNOVATION
1. Efforts in brief, made towards technology absorption, adoption and
2. Benefits derived as a result of the efforts, e.g. product improvement,
cost reduction, product import substitution, etc.
3. Imported technology
For and on behalf of the Board,
Place : Madras
Dated : 30th June, 1995.