BRITISH INDIS STEELS, LTD. OBJECTS AND ACTIVITIES: Manufacture of Iron and Steel powder, sintered products and powder components such as high speed steel tool blanks. PROMOTION: The company was promoted by Raja Ram Dalmia, a Calcutta based industrialist. FOREIGN COLLABORATION: The company entered into a technical collaboration agreement with Posdrex Ltd., U.K. (Powdrex). Under this agreement, Powdrex were to provide complete technical kno-how and trade secrets and other relevent data and to assist and quide the company in the selection of equipment. Powdrex were also to depute the technical personnel for installation and commissioning of the plant and to train technicians of the existing process, free of cost. In consideration of their services, Powdrex were to be paid a lumpsum fee of U.K. Pound 85,000 (approximate Rs. 13.8 lakhs) inclusive of taxes payable in India in 3 equal instalments and a royalty at the rate of 41/2% of the net ex-factory price of the products excluding excise duty and after deduction of landed cost of the imported components and the value of standard brought out components. The duration of this agreement would be for a period of 10 years with effect from 6th March, 1984. INDIAN TECHNICAL CONSULTANTS: The company entered into a consultancy agreement with M.M. Suri & Associates Pct. Ltd., to render services for the complete project management on turn-key basis. OPERATIONS: Commercial production of metal powder and sintered products was started on 1st June, 1986. To make the company's products competitive with imported material, further processing was required. In order to provide in- house facility for the same, application was made for financial assistance to instal balancing equipment worth Rs. 188 lakhs. These were expected to beinstalled and made operational by early 1988. During 1989-90, duro to the failure on the part of the collaborator to provide proper technical know- how, the company had to develop the necessary know-how for its product. The long gestation period for development of know-how, low capacity utilisation and and unremunerative product-mix contributed to the operational loss. During 1990-91, the company continued to incur losses. During 1991-92, necessary steps were taken for installation of balancing equipments so that the existing facilities could be fully utilised. FINANCE: IFCI, in participation with IDBI and ICICI sanctioned a term loan of Rs. 453.05 lakhs. IFCI also sanctioned a foreign currency loan of U.S $ 1,036,693 (equivalent to about Rs.119.30 lakhs). SICK INDUSTRIAL COMPANY: During 1989-90, in view of the accumulated losses as on 31.03.1990 having reaulted in the erosion of more than 50% of the peak net worth in the submit a report as required under the provisions of the Sick Industrial Companies (Sp. Provisions) Act, 1985. During 1991-92, IFCI was appointed as the operating agency for preparation of the rehabilitation scheme for the company. GENERAL: The equity shares of the Company held by the promoters and their associates in excess of 40% of the isued equity capital were to be divested within 3 years from the date of commencement of commercial production by an offer for sale to the public at a price not exceeding the prevailing market price.