The Directors present herewith the Thirteenth Annual Report alongwith
 Audited Statement of Accounts for the Fifteen Month period ending 30th
 June, 1999.
 
 FINANCIAL RESULTS
 
 The financial results of the
 company for the                                           (Rs. in Lacs)
 
 Period are as follows :       Current Period              Previous Year
                        As at 30th June, 1999     As at 31st March, 1998
                                   (15 Month)                 (12 Month)
 
 Sales                                3288.50                    5498.42
      
 Profit/(Loss) before Interest      (1107.59)                  (1111.03)
 and Depreciation
 
 Interest                             1006.53                     839.87
 
 Depreciation                          223.80                     160.18
 
 Profit/(Net Loss)                  (2337.92)                  (2111.08)
 
 OPERATIONS :-
 
 During the period under review the company achieved a turnover of Rs.
 3288.50 Lacs as compared to Rs. 5498.42 Lacs in the previous period. The production of GP/GC Sheets during
the period was 9318 MTS as against 18253 MTS in the preceding period.
 
 Lower Capacity utilisation, cessation of Sales Tax exemption, sluggish
 and highly competitive market conditions had an adverse effect on the
 performance of the company.  The cumulative effect of the above factors
 has resulted in net loss of Rs. 2337.92 Lacs during the period as against Rs. 2111.08 Lacs in the previous
period.
 
 FUTURE OUTLOOK :-
 
 The period under review had not been good for the Steel Industry which
 has witnessed wide spread recession in India and abroad.  As reported in our earlier reports, you are aware
that the Board for Industrial and Financial Reconstruction (BIFR) had ordered winding up of the company
 in Oct'97.  Appeal was made to Appellate Authority (AAIFR).  In July'98, AAIFR upheld the BIFR order.  The
company thereafter filed an appeal in the High Court which was not considered in favour of the Company. 
Thereafter the Company also filed Special Leave Petition in the Supreme Court.  The Supreme Court has vide
it's order dated 19.07.1999, rejected our appeal.  As such, the Law will take it's own course whereby the
Company will have to be eventually wound up.
 
 FINANCE :-
 
 In view of the losses sustained by the company, its accounts with the
 Bankers are irregular on account of inability of the company to honour
 commitments under Letter of Credit.  The Bankers are not extending any
 fresh working capital to the company.
 
 ACCOUNTS :-
 
 As regards the Auditors Report, the explanation given in Notes on Accounts No.2,9,10 and 11 are self
explanatory.  The accounts have been
 prepared on going concern basis as the Superme Court Order was received
 after the closing date of the balance sheet.  Adequate disclosures are
 made as required in Accounting Standards of ICAI.
 
 DIRECTORS :-
 
 Shri H.K. Bajpai, Shri. N.S. Datar and Shri. K. D. Sultanpuri have
 resigned during the period. The Directors wish to place on record their
 appreciation for services rendered by them.
 
 Dr. ING ROLF KOHLGRUBER and Shri K A Pardhi retire by rotation and being eligible offer themselves for
re-appointment. 
 
 AUDITORS :-
 
 M/s Ghosh Khanna & Co., Chartered Accountants, Auditors of the company
 retire at the conclusion of the Annual General Meeting and being eligible offer themselves for
re-appointment.
 
 PERSONNEL :-
 
 The relations with the personnel throughout the period under review have remained cordial.  None of the
employees of the company was in receipt of the remuneration in excess of the Limits prescribed Under Section
217 (2A) of the companies act 1956 read with companies (Particulars of Employee's) Rules 1975 as amended.
 
 OTHER STATUTORY INFORMATION :-
 
 Particulars with respect to conversation of energy technology absorption and foreign exchange earnings and
outgo 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 set out in Annexure -I forming part of the
Report.
 
 Information as per section 217(1)(e) of the companies Act, 1956 read with companies (Disclosure of
particulars in the report of Board of Directors) Rules, 1988 for the period ended 30th June, 1999.
 
 A) Conservation of energy
 
 a) Energy Conservation measures taken :
 
 Various energy saving equipments like capactors, economizers, motors of
 optimum capacity insulated pipe lines and tip covers special type of
 imported burners, sophisticated automatic temparature control etc have
 been used.
 
 b) Additional investment and proposals, if any, being implemented for
 reduction of comsumption of energy :
 
 Efforts are being made to locate the possible areas for consumption per
 unit production.
 
 TECHNOLOGY ABSORPTION :
 
 EFFORTS MADE IN TECHNOLOGY ABSORPTION AS UNDER :
 
 RESEARCH & DEVELOPMENT (R&D)
 
 1. Specific areas in which R & D) carried out by the company :
 
 Thrust areas identified for carrying out R & D activities included
 
 (a) - Product Improvement
      
 (b) - Product development
      
 (c) - Yield improvement
      
 (d) - Process Improvement
      
 (e) - Reduction in Zine Consumption
 
 (f) - Reduction in Energy Consumption
 
 2. Benefits derived as a result of above efforts : Research & Development efforts undertaken by the company
have produced positive
 results with the improvement in the quality of the product, reduction
 in process loss zinc consumption, energy saving and consequent cost
 reduction.
 
 3. Future plan of action : To improve further in the Areas already
 selected for carrying out Research & Development.
 
 4. Expenses have not been separately recorded.
 
 TECHNOLOGY ABSORPTION ADOPTION AND INNOVATION :
 
 Information regarding Imported Technology.
 
 Details of Technology imported are as under :
 
 (a) Imported Technology           :      Continuous Hot-Dip Galvanising
                                          line for Thin Guage Steel
                                          Strips
 
 (b)  Year of Import               :      1986-87
 
 (c)  Has Technology been          :      Yes
      Fully Absorbed
 
 (d)  Foreign Exchange Earning     :     1998-99            1997-98
      and outgo
 
      Earning                                NIL               NIL
 
      Outgo :
 
 1)   CIF value of import of Raw
      Material & Spare Parts               41.41              NIL
 
 2)   Trading Purchases                      NIL              119.41
 
 3)   Others                                 NIL               33.35