డైరెక్టర్ల నివేదిక Thapar Ispat Ltd.

Jun 30, 2012

Dear Members,

The Director hereby Present Twenty Third Annual Report and Audited Accounts for the year ended on 30th June, 2012.

FINANCIAL RESULTS Amt in Rs. 30th June 2012 30th June 2011

Revenue fromop operations 38414045 37596990

Other Income 360133 700637

Deprcction 10467 10467

Ner Profit/(Loss) (551902) (859060)

During the Peering under report the Company has been able to inching the year as Compared to last year However due to Simulate increase in expenses incur read during Profits.

The Managements is trading best to improve the of the Company by Utilizing resourcing at optimal level and Proust.

STATUS OF REFEENCE TO THE BORAD FOR INDIAL AND FINANICEAL RECONSTRUCTION.

The Company has made reference to Board in dial and Financial Reconstruction under Section 15 (1)(Appellate Authority for Industrial hearing is on 15th January, 2013.

DIVIDEND

Due to non availabtiy, Your Director do not recommend divine don shares.

Exited Deposed

The Company has not accepet any fresh deposits during the year under report withing the Perview os section 58 A of the Company Act,1956

DIRECTORS

In Association with the Provision of the Ariccels Of Association of Company and the Company Act,1956 Sh. Bhag Sing Director retires and Being offers himself for reappointment.

AUDITORS

M/s.Vimal Dixit & Associates, Chartered Accountants Hold Office up to Conclusion of th forthcoming Annual General Meeting M/t Vmud DixU ft As for their are eligible for reappointment and the Board . statutory auditor* for the year 2012-13,

PARTICULARS OF EMPLOYEE

Infomation pursant to sention 217 (2A) of the Company Act 1956 read The Compoany (Panyeines employers date NIL.

CONSERVATION OF ENERGY

a) Energy congetion measures taken:

The COMPANY CONTIONES INVOLES in and importmenting eneering saving schemes/Methods.

(b) Additional investeam and Proposals, if any beting For reduction of Consemprtion NIL.

II TECHNOLOGY ABSORPTION

Efforts made in Technology Absorption as per Form-B of the Annexure the Rules.

1. Research & Development (R&D)

a) Specific area in which R&D carried out by the Company:

The company continuously involves itself in identifying and developing methods to improve quality of products and reduce costs. .

b) Benefits derived as a result of the ABOVE R&D:

The company has been able to improve the quality of its products.

c) Future Plan of Action:

The company is working continuously towards finding out the ways to improve the methods of production , cost saving.and improving quality.

d) Expenditure on R & D: (Rs.in Lacs)

Capital Nil

Recurring Nil

Total R&P Expenditure as a percentage of total turnover Nil

2 TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION

a) Efforts,in brief made toward technology absorption None

b) Benefits derived as a result of the above None efforts, e.g.product improvement, cost reduction,production development, import substitution etc.

c) In case of imported technology (imported during thelast 5 years reckoned from the beginning of the financial year) following

Infonnation may befunnshed. Not Applicable

i) Technology Imported Not Applicable

ii) Years of Import Not Applicable

iii) Has technology been absorbed

iv) If not fully absorbed,areas, Not Applicable where this has not taken place reasons thereof and future plan

FOECTION CHANGE EARNINGS AND OUT.GO

i) Earnings :NIL

ii) Outgo :NIL

COMMENTS ON AUDITOR''S QUALIFICATION

The company has made reference to Board for Industrial And Financial Rec- Section (1) of SICA. However, the same was mrr-d down as non mamtamable by BIFR N-wth company has made an appeal to hon-ble.AAIFR (Appellate Aumonty forlndu,ma Sir-rLconstruction in this regard which is pending with AAIFR as on th, date. Next hearing is on 15th January, 2013.

The company was not able to make timely payments to banks and.financial institutions being a S.SSl company. However, the company is regularly following up w,th banks and financial institutions for one time settlement.

DIRECTORS RESPONSIBILITY STATEMENT

Pursuant to section 217(AA) of Companies Act, 1956, the Directors confirm:

(a) That in the preparation of the annual accounts, the applicable accounting standards have been followed and that no material departures have been made for the same;

(b) That they have selected such accounting policies and applied hem consistently and made judgments 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 Of the profit or loss of the company for the period;

(c) That they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act,1956 for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities.

(d) That they have prepared the annual accounts on going concern basis.

ACKNOWLEDGEMENT

The Board acknowledges with gratitude the co operation and assistance provided by all the business constituents. The Board wishes to place on record the contribution made by employees of the company during the year. Your Directors thanks the customers, clients, vendors, dealers, distributors and business associates for their continued support at all the levels.

By order of the Board

For THAPAR ISPAT LIMITED

(Damnanjit) (Bhaage Singh) Executive Director Director PLACE : LUDHIANA

DATED : 01/12/2012

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Jun 30, 2010

The Directors present their Twenty First Annual Report and Audited Accounts for the year ended on 30th June, 2010.

FINANCIAL RESULTS 2009-2010 2008-2009 (Rs.in Lacs) (Rs.in Lacs)

Turnover and other income 384.58 288.05

Profit/floss) before Dep. (5.46) (25.52)

Less/Add: Depreciation 0.10 0.10

Net Profit/(Loss) after Dep. (5.47) (25.62)

Profit/(Loss) brought forward (14711.15) (14685.52)

Amount Written back on repayment of 2420.61 -- Banks & Fixed Deposits

Profit/(Loss) Carried over (12296.11) (14711.15) to Balance Sheet

PERFORMANCE REVIEW

Although the company has incurred losses during the year, the overall performance of the company has improved as is evident from reduced losses and increased turnover. The Directors of your company are continuously taking necessary steps to reduce costs and expenses. Your directors are hopeful that the company will do better in years to come.

STATUS OF REFERENCE TO THE BOARD FOR INDUSTRIAL AND FINANCIAL RECONSTRUCTION.

The references had been made before BIFR by the company under Section 15 (1) of SICA based on the accounts for the year 2000-2001 to 2008-2009 since the net worth of the company was entirely eroded. But the same have been turned down by the Honble BIFR (Board for Industrial and Financial Reconstruction) as non- maintainable. The company has made an appeal against this order before Honble AAIFR (Appellate Authority for Industrial and Financial Reconstruction). Your directors are very positive on this front and are doing their best to get the matter redressed at the earliest.

EXPORTS

During the year Exports Sales of the company was NIL.

DIVIDEND

Your directors regret their inability to recommend any dividend on shares due to non availability of profits.

FIXED DEPOSITS

During the year, the company has not accepted any new deposits from the public falling within the perview of Section 58 A of the Companies Act, 1956 and the rules made there under.

DIRECTORS

In accordance with the provisions of the Articles of Association of the Company and the Companies Act, 1956 Sh. Bhag Singh, Director retires by rotation and being eligible offers himself for reappointment.

AUDITORS

M/s.Vimal Dixit & Associates, Chartered Accountants holds office up to the conclusion of the forthcoming Annual General Meeting. M/s. Vimal Dixit & Associates, Chartered Accountants are eligible for reappointment and the Board of Directors has recommended for their appointment as statutory auditors for the year July- 2010 to June-2011.

PARTICULARS OF EMPLOYEES

Information pursuant to Section 217 (2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975 as amended up to date is NIL.

PARTICULARS U/S217(I)(e)

In terms of Section 217(])(e) of the Companies Act, 1956 (as amended)read with the Companies (Disclosure of Particulars in the Report of the Board of Directors)RuIes, 1988, the Directors furnish herein below the required additional information:

1. CONSERVATION OF ENERGY

a) Energy conservation measures taken:

The Company has an on-going study to identify and implement the energy saving systems. In the existing plants various energy saving devices have been installed to achieve reduction of energy inputs.

b) Additional investments and proposals, if any, being implemented for reduction of consumption of energy:

The Company has schemes in hand for investments in energy saving devices.

c) Impact of measures taken at (a) and (b) above for reduction of energy consumption and consequent impact on the cost of production of goods:

II. TECHNOLOGY ABSORPTION

Efforts made in Technology Absorption as per Form-B of the Annexure the Rules. 1. Research & Development (R&D)

a) Specific area in which R&D carried out by the Company:

Research and Development has continuously been carried out in general for improving quality of existing products,development of new and improved methods of production, processes for better productivity.

b) Benefits derived as a result of the ABOVE R&D:

As a result of R&D the quality of products has improved.

c) Future Plan of Action:

Development of new and improved products for better productivity, efficiency in production and reduction in cost per tone are planned.

d) Expenditure on R & D: (Rs.in Lacs)

Capital Nil

Recurring Nil

Total R&D Expenditure as a percentage of total turnover Nil

2. TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION

a) Efforts,in brief,made toward technology absorption None

b) Benefits derived as a result of the above None efforts, e.g.product improvement, cost reduction,production development, import substitution etc.

c) In case of imported technology (imported during the last 5 years reckoned from the beginning of the financial year)following information may be furnished.

i) Technology Imported Not Applicable

ii) Years of Import Not Applicable

iii) Has technology been absorbed Not Applicable

iv) If not fully absorbed,areas, Not Applicable where this has not taken place reasons thereof and future plan of action.

III. FOREIGN EXCHANGE EARNINGS AND OUT-GO

i) Earnings : NIL

ii) Outgo : NIL



CORPORATE GOVERNANCE

Your Directors affirm their commitments to the Corporate Governance standards prescribed by the Securities and Exchange Board of India (SEBI). A Report on Corporate Governance with Management Discussion and Analysis as required under Clause 49 of the Listing Agreement is attached.

COMMENTS ON AUDITORS QUALIFICATION

The company had made reference to Board for Industrial and Financial Reconstruction under Section 15 (1) of SICA. However, the same was turned down as non maintainable by BIFR. Now, the company has made an appeal to honble AAIFR(Appellate Authority for Industrial and Financial Reconstruction) in this regard. Being a sick industrial company, it was not able to make timely repayments to banks and other financial institutions.

INDUSTRIAL RELATIONS

Industrial relations remained peaceful and cordial at all levels during the year under review.

DIRECTORS RESPONSIBILITY STATEMENT

Pursuant to section 217(AA) of Companies Act, 1956, the Directors confirm;

(a) That in the preparation of the annual accounts, the applicable accounting standards have been followed and that no material departures have been made for the same;

(b) That they have selected such accounting policies and applied hem consistently and made judgments 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 of the profit or loss of the company for the period;

(c) That they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities.

(d) That they have prepared the annual accounts on going concern basis.

ACKNOWLEDGEMENT

The Board acknowledges with gratitude the co operation and assistance provided by all the business constituents. The Board wishes to place on record the contribution made by employees of the company during the year. Your Directors thanks the customers, clients , vendors, dealers, distributors and business associates for their continued support at all the levels.

By order of the Board For THAPAR ISPAT LIMITED

Sd/- Sd/- (Damanjit Singh) (Bhag Singh) Executive Director Director

PLACE : LUDHIANA DATED: 03/12/2010