SAMANA STEELS LIMITED DIRECTORS' REPORT Dear Shareholders. Your Directors are pleased to present the Eleventh Annual Report alongwith Audited Statement of Accounts for the year ended on 30th June, 1998 . OPERATIONS During the year, the Company produced 15309.98 MTs. of ERW G.I.Pipes & 14656.765 Mts. of ERW Black Pipes. The Company has manufactured the ERW GI Pipes under the Trade name " INDIA GOLD" &"BINDAL" .The products of the company have been well accepted by the customers all over India and abroad. PUBLIC DEPOSITS The Company has not accepted any deposits from public during the year under review. DIRECTORS During the year under report Shri H.S.Arora, Director has resigned. The Board place on record the valuable guidance and advice rendered by Shri Arora during his tenure as director. The Company has immensely benefited by his valuable guidance during the period. AUDITORS The Auditors M/s Bhushan Aggarwal & Co. Ludhiana of the Company who retire at the conclusion of this Annual General Meeting and being eligible, offer themselves for re-appointment .They have furnished a certificate to the effect that their appointment if made will be in accordance with Sub- section (IB) of Section 224 of the Companies Act,1956 . INFORMATION AS PER SECTION 217(1)(e) READ WITH COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OF BOARD OF DIRECTORS) RULES,1988 AND FORMING PART OF THE DIRECTORS REPORT FOR THE YEAR ENDED 30TH JUNE, 1998 . 1. CONSERVATION OF ENERGY 1997-98 1996-97 a) Energy Conservation measures taken N.A. N.A. b) Additional investments and proposals, if any being implemented for reduction of consumption of energy. No No c) Impact of the measure at (a) & (b) for reduction of energy consumption and consequent impact on the cost of prod action of goods. N.A. N.A. d) Total energy consumption and energy consequent per unit of production as per Form ' A' of the Annexure to the Rules in respect of industries speci- fied in the schedule thereto. II FOREIGN EXCHANGE EARNINGS AND OUTGO A) Activities relating to export,initiatives N.A. N.A. taken to increase exports developments of new export markets for products and services and export plans. B) Total Foreign Exchange used and earned Used NIL NIL Earned NIL NIL for and on behalf of the Board Sd/- (S.R.Gupta) Chairman Cum MD Place : Samana Dated : 02.12.1998