SRU Steels Director Report

The Directors have pleasure in presenting the Fifth Annual Report of

the Company with the Audited Statement of Accounts for the year ended

31st March, 2000.



Financial Results :



PARTICULARS (Rs.) (Rs.)

CURRENT YEAR PREVIOUS YEAR

ENDED, 31.03.2000 ENDED, 31.03.1999



Income from Operation 38,55,035 25,64,330



Other Income 5,43,373 13,54,518



Total Expenditure 42,45,399 33,73,235



Interest & Other Financial 2,312 4,725

Expenses



Profit after interest but 1,50,697 5,40,889

before Depreciation & Tax



Depreciation 24,325 37,754



Provision for taxation 48,653 1,85,091



Net Profit 77,719 3,18,044



Paid up Capital 4,24,29,500 4,24,29,500



Reserves 4,74,352 3,96,633



Earning per share .012 .053





Dividend :



The directors do not recommend any dividend for the year in order to

conserve the reserves of the company and to meet any future

contingencies.



Directors :



Shri M.L. Mittal, the director of the Company, is liable to retire by

rotation at the end of forthcoming Annual General Meeting and being

eligible, offers himself for reappointment.



Auditors :



M/s Kuldeep Sharma & Company, Chartered Accountant, Auditor of the

company will retire at the end of ensuing Annual General Meeting and

being eligible offers themselves for re-appointment. The Company has

also received a certificate from them under section 224(1 B) of the

Companies Act, 1956.



Auditors' Report :



The notes to be referred to in the Auditors Report are self explanatory

and therefore do not call for any further comments.



Operations :



The Company has entered into the field of Steel trading and its

products and the operations for the first year of operations are

satisfactory and your directors are confident of achieving better

results in the coming years.



Particulars of Employees :



There are no employees drawing remuneration in excess of the applicable

limits prescribed under section 217(2A) of the Company Act, 1956 read

with Companies (Particulars of the Employees) Rules, 1975.



Conservation of Energy :



The Company has not consumed energy of any significant level and

accordingly no measures were taken for energy conservation and no

investment was made for reduction of energy consumption.



Technological Absorption :



No comment is made on the technology absorption considering the nature

of activities undertaken by your Company during the year under review.



Foreign Exchange Earnings and Outflow :



There has been no foreign exchange earnings and outflow during the

year.



Y2K Compliance :



The Company has successfully undergone Year 2000 roll over. All system

and equipments are functioning properly.



Corporate Governance :



The SEBI has accepted the report of SEBI Committee headed by Shri Kumar

Mangalam Birla relating to compliance of Corporate Governance code by

the Listed Companies. The said corporate governance code will become

applicable to your company by March, 2003. Your company is gearing up

to ensure that all the mandatory provisions are fully complied with

before the deadlines prescribed in this regard.



Personnel :



The Board wishes to place on record its appreciation for the devoted

services of the Executives, Staff and Workers of the Company during the

year.