The company has skipped dividend in 1997-98, against the 10 per cent paid in the previous year. Other income, including profit on sale of investments in shares, was higher at Rs 12.69 crore against Rs 11.14 crore in 1996-97.

According to the company, volumes and operating margins of the steel, electrical stampings, wheels and powmex steels divisions were adversely affected by the sluggish performance of the automobiles and electrical machinery sectors which are the end users of the company's products.

Persistent industrial relations problems in the Sankey electrical stamping division at Bhandup, Mumbai led to the declaration of a lockout from February 5, 1998, which is still continuing. Trialproduction at the new metal pressing factory in Pune started in the second half of 1997-98. This plant will manufacture metal pressed components and sub assemblies for the automotive sector and will be supported by a die shop.

GKW is silent on the status of the Rs 400-crore cement plant in the Chittor district of Rajasthan. This plant has an installed capacity of 1.4 million tonnes per annum. Till the end of March 31, 1997, the company had spent Rs 40.57 crore on the cement project.

Last year, the company rescheduled implementation of the project to the first half of 1999. Negotiations were on with domestic and overseas investors for raising project funds to enable financial closure.

GKW raised Rs 40 crore approximately last year by way of a preferential allotment to promoters and their associates pending finalisation of a public/rights issue to fund the cement project.

During 1997-98, the company incurred interest expenses of Rs 25.60 crore and depreciation charges of Rs 9.49 crore besides a Rs4.28-crore write-off of voluntary separation costs (the previous year's figure was Rs 4.04 crore).