PARTAP RAJASTHAN SPECIAL STEELS LIMITED ANNUAL REPORT 2004-2005 DIRECTOR'S REPORT To The Members, Your Directors present the twenty-seventh Annual Report together with the Audited Accounts for the year ended 31st March, 2005. The Company continues to be a sick industrial unit. Despite acute financial problems the dues of the remaining workers have been totally paid off. As reported last year, the company has now made amicable settlements with all its secured creditors. During the current year PNB and UTI have been fully paid off followed with RIICO OTS being paid as per schedule. The settled dues of Public debentures have also been deposited in a separate Bank Account with the Debenture Trustees for remittance to the debenture holders. Thus after settling all its secured creditors the company would become debt-free and would be able to be rehabilitated for carrying on business afresh. FIXED DEPOSITS: During the year the company has not accepted any fixed deposits from the public. DIRECTORS: Shri Subhash Tondon has been nominated by Punjab National Bank on the Board of the Company in place of Shri. B.P. Sharma. Shri Partap Chand Maheshwari has resigned the office of director w.e.f. 07.06.2005 on health grounds. The Board place on record its appreciation for the valuable guidance given to the company by Shri B.P. Sharma and Shri Partap Chand Maheshwari during their tenure as the directors of the company. Shri Nishi Maheshwari was co- opted on the Board in the vacancy which was caused by the resignation of Shri Arvind Sood. Shri Praveen Maheshwari and Shri Nishi Maheshwari retire by rotation at the ensuing annual general meeting and are eligible for re- appointment. DIRECTORS' RESPONSIBILITY STATEMENT (i) In the preparation of Annual Accounts, the applicable accounting standards had been followed along with proper explanation relating to the material departures. (ii) The Directors has selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year and the profit or loss of the company for that period. (iii) The Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the companies Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities. (iv) The Directors had prepared the Annual Accounts on a going concern basis. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUT GO: The information required under section 217(1) (e) of the Companies Act, 1956 read with the companies (disclosure of particulars in the Report of the Board of Directors) Rules, 1988 is nil as no manufacturing activities have been carried out during the year. There is no employee U/s. 217 (2-A). Foreign exchange earning and outgoing is nil. AUDITORS: The Auditors M/s. Kailash Chand Agarwal & Co. Chartered Accountants, retire at the conclusion of the ensuing Annual General Meeting and are eligible for reappointment. Fullest information is given in respect of the Auditors' observations/ qualifications in the notes to the accounts referred to in the auditors report. By Order of the Board Praveen Maheshwari Col: B. M. Ram (Retd.) Directors Regd. Office: Road No. 6, Vishwakarma Industrial Area, JAIPUR-302013 Dated : 3rd September, 2005