SINGHAL SWAROOP ISPAT LIMITED
Your Directors have pleasure in presenting their Eleventh Annual Report
together with the Statement of Accounts for the year ended June 30, 1996.
The performance of the Company for the year under review is summarised
In order to conserve the resources of the Company, your Directors recommend
a dividend of 5% subject to deduction of tax for the year under review.
REVIEW OF OPERATIONS
The turnover of the Company has increased from Rs.10823 lacs to Rs.13963
lacs from the previous year representing an increase of 29% over the
previous year. The Profit after tax has increased from Rs.539 lacs of the
previous year to Rs.619 lacs representing an increase at 14% over the
previous year. The Company could achieve the desired results despite
adverse market conditions and reduced margins.
During the year under review, your Company had come out with a Rights Issue
of 1,10,37,500 Equity Shares of Rs.10/- each (at a Premium of Rs.20/- per
share) in the ratio of 5 Equity Shares for every 2 held. The Directors
thank you for the positive response.
There are no unclaimed deposits as on June 30, 1996. The total amount of
Deposits (Net) as on June 30, 1996 was Rs. 7.05 Lacs.
During the year under review the following Directors Viz. Shri Jagdish
Doshi, Shri.Subhash Chandra, Shri.Vinod B. Agarwal, Shri. Sushil Bhuwalka
resigned from the Board. The Board wishes to place on record its sincere
thanks to the above persons for their valuable contribution extended to the
Company during their tennure as Directors.
Prof. Niranjan Murti, Col. I.P. Singh and Shri.V. B. Gadkari were appointed
as Additional Directors during the year under review to hold the office
till the conclusion of the next Annual General Meeting of the Company. They
being eligible offers themselves for appointment. The Company has received
from some of its members a notice under Section 257 of the Companies Act,
1956 proposing their appointment as Directors, liable to retire by
Information required by the Companies (Amendment) Act, 1988, is given as
Annexure I to this Report. Information in accordance with sub-section (2A)
of Section 217 of the Companies Act, 1956, read with the Companies
(Particulars of Employees) Rules, 1975, and forming part of the Directors'
Report for the year ended June 30, 1996 is also given as Annexure II to
You are requested to appoint Auditors and fix their remuneration at the
ensuing Annual General Meeting. The retiring Auditors M/s. M.G.Bhandari &
Co., Chartered Accountants, Mumbai are eligible for re-appointment.
The notes to the accounts referred to in the Auditor's Report are self
explanatory and therefore do not call for any further elucidation.
Your Directors would like to express their grateful appreciation for the
assistance and co-operation received from the Financial Institutions and
the Banks, during the year under review.
Your Directors wish to place on record their deep sense of appreciation for
the devoted services of the Executives, Staff and Workers of the Company
for its success.
ANNEXURE TO THE DIRECTORS' REPORT
ADDITIONAL INFORMATION AS REQUIRED UNDER THE COMPANIES (DISCLOSURE OF
PARTICULARS IN THE REPORT OF BOARD OF DIRECTORS) RULES, 1988.
A) CONSERVATION OF ENERGY :
a) The Company is striving continuously to conserve energy.
b) Additional investments and proposals, if any, being implemented for
reduction of consumption of energy. : NIL
c) Impact of the measures at (a) & (b) above for reduction of energy
consumption and consequent impact on the cost of production of goods :
Helps reducing costs
d) Total energy consumption and energy consumption per unit of production
Form A (Annexure)
B) TECHNOLOGY ABSORPTION:
Research and Development
At present the company is not carrying out any research and development
activities and therefore, there is neither any expenditure on this head nor
any other benefit accrued from it. Plan for future action for Research and
Development is being worked out.
Technology absorption, adaptation and innovation
1) Efforts in brief made towards technology
absorption, adaption and innovation : Nil
2) Benefits derived as a result of the above efforts : Nil
3) Information regarding technology imported during
the last five years : Nil
C) FOREIGN EXCHANGE EARNINGS AND OUTGO :
1) Activities relating to exports, initiatives taken to increase exports,
development of new export markets for products and services and export plan
: (Rs. '000)
2) Total Foreign Exchange used and earned:
Used : 2,36,903
Earned : 398
1. DISCLOSURE OF PARTICULARS WITH RESPECT TO CONSERVATION OF ENERGY
A. Power & Fuel Consumption 1995-96 1994-95
Purchased Units 1,70,37,818 2,29,60,623
Total Amount (Rs.) 5,96,10,067 7,42,83,031
Rate/Unit 3.50 3.23
b) Rolled Products
Purchased Units 8,04,860 32,040
Total Amount (Rs.) 31,82,643 5,57,612
Rate/Unit 3.95 17.40
B. Consumption per unit of Production
Special Alloy Steel 1025 892
(No Specific Standard)
Rolled Products 67 96
(No Specific Standard)
On behalf of the Board of Directors
Place : Mumbai,
Date : 28th February, 1997.