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Balaji Galvanising Industries Ltd.

BSE: 530205 Sector: Metals & Mining
NSE: N.A. ISIN Code: INE892G01019
BSE 05:30 | 01 Jan Balaji Galvanising Industries Ltd
NSE 05:30 | 01 Jan Balaji Galvanising Industries Ltd

Balaji Galvanising Industries Ltd. (BALAJIGALVANISG) - Director Report

Company director report


Your Directors take pleasure in presenting the 24th Annual Report along with theAudited Accounts of the Company for the year ended 31st March 2014.


The overall performance of the Company for the financial year are summarized below:_(Rs. in Lac)

Particulars 2013-14 2012-13
Sales 839.20 797.18
lncrease/(Decrease) in Stocks (3.65) (58.47)
Other Income 1.72 2.47
Total Revenue 837.27 741.18
Manufacturing/Operating Expenses 885.39 770.38
Loss before Financial Expenses & Depreciation (48.12) (29.20)
Interest & Financial Expenses 13.19 10.47
Depreciation 18.97 19.59
Net Loss after Interest &Financial Expenses and Depreciation (80.28) (59.26)
Earning per Share (1.62) (1.20)


During the year under review the Company could manage a revenue of Rs. 840.92 lac ascompared to last year's revenue of Rs. 799.65 lac. With a high component of overheadexpenses coupled with increased power cost as compared to the low production level theoverall expenditure increased to Rs. 921.20 lac as compared to last year's figure of Rs.858.91 lac. The Company incurred a loss of Rs. 80.28 lac during the current financial yearas compared to last year loss of Rs. 59.26 lac.

The power supply continued to remain deteriorated at the present location during thefinancial year and as a result the company has to depend on alternative means of powerdiesel generators with increased costs to maintain operations. Due to continued lossesraising of funds from banks and financial institutions to meet the operational andworking capital requirements of the company has also become difficult. The Board hastaken cognizance of the continuous losses suffered by the company due persistent powershortage in the present location and high power cost coupled with high interest burden.The Board is contemplating various means to avoid further losses including shifting of itsplant to a favourable location raising of funds for repayment of long outstanding debtsof the company by disposal of non-essential assets leasing out of its plant etc.


In view of the loss incurred by the Company no dividend was declared for the yearunder review.


During the period the Board is restructured by appointment of Shri Prabha ShankarLakhotia as an Executive Director Cum Chief Financial Officer as well the appointment ofShri Premotpal Guha as Whole Time Director of the Company for a period of three yearsw.e.f. 14th August 2014. It is also proposed to appoint Shri Sanjay Kumar Bagaria andShri Navneet Khemani as independent directors at the ensuing Annual General Meeting forfive years in terms of the provisions of Section 149 of the Companies Act 2013.

In accordance with the provisions of Companies Act 1956 and the Articles ofAssociation of the Company Shri Premotpal Guha is due to retire at the ensuing AnnualGeneral Meeting and being eligible offers himself for reappointment.

Shri Chetan Kumar Bagaria resigned from the directorship of the Company w.e.f. 14thAugust 2014 and the board sincerely appreciates his commitment and the contribution madeby him during his tenure.

Necessary resolutions were placed before the shareholders in connection with the aboveappointments in terms of the provisions of the Act for their approval.


None of the Directors of the Company are disqualified as per the provisions of Section274(1 )(g) of the Companies Act 1956 interpret with Section 164 of the Companies Act2013.


M/s. Dagiiya & Co. Chartered Accountants Statutory Auditors of the Company holdsoffice until the conclusion of the ensuing Annual General Meeting and being eligibleoffer themselves for re-appointment. They have furnished a certificate to the effect thatthey are eligible to be re-appointed as Auditors of the Company and that theirre-appointment if made will be within the limits prescribed under section 141 of theCompanies Act 2013.


The Auditors' Report read together with the Notes on Accounts are self-explanatory andtherefore do not call for any further explanation and comments.


During the financial year under review your Company has not invited or accepted anyDeposits from the Public.


Pursuant to Section 217(2AA) of the Companies Act 1956 the Board of Directors of theCompany hereby state and confirm that:

i) in the preparation of the Annual Accounts the applicable Accounting Standards havebeen followed along with proper explanation relating to material departures;

ii) the Directors have selected such accounting policies and applied them consistentlyand made judgments and estimates that are reasonable and prudent so as to give a true andfair view of the state of affairs of the Company as at 31st March 2014 and of the lossfor the year ended as on that date;

iii) the Directors have taken proper and sufficient care for the maintenance ofadequate accounting records in accordance with the provisions of the Companies Act 1956for safeguarding the assets of the Company and for preventing and detecting fraud andother irregularities; and

iv) the directors have prepared the Annual Accounts on a going concern basis.


The Company had no employee during the year ended 31st March 2014 who was in receiptof remuneration in excess of the limits specified under Section 217(2A) of the CompaniesAct 1956 read with Companies (Particulars of Employees) Rules 1975.


The particulars relating to the conservation of energy technology absorption andresearch & development and foreign exchange earnings and outgo as required underSection 217(1)(e) of the Companies Act 1956 read with Companies (Disclosure ofParticulars in the Report of Board of Directors) Rules 1988 are given in aseparataannexure attached hereto and form a part of this report.


Your Company is committed to good Corporate Governance practices. The Company'sCorporate Governance practices are in accordance with the relevant Clauses of the ListingAgreement. A separate Section on Corporate Governance is included in the Annual Report andthe certificate from the Auditors of the Company regarding the compliances of theconditions of the Corporate Governance is given in annexure attached to and forming partof the Corporate Governance Report. All the Board members and senior manager personnelhave also affirmed compliance with the Code of Conduct as has been laid down by theCompany.


In accordance with Section 383A of the Companies Act 1956 and Companies (ComplianceCertificate) Rules 2001 the Company has obtained a certificate from Company Secretary inwhole time practice and a copy of such certificate is annexed to this report.


Human Resource is valued as one of the most important asset by the Company. The HumanResource Development Process promotes co-operation and innovation within the employees andprovides flexibility to keep current with the business needs of the Company. Your Companyis confident that every one of its employees will relentlessly strive to innovate newerand better ways of doing things to foster team spirit. The Company is continuouslyrenewing and updating the knowledge and skill of its employees at all levels throughtraining and development. The Company has developed an environment of harmonious andcordial relations with its employees.


Management Discussion and Analysis Report for the year under review as stipulated underClause 49 of the Listing Agreement with the stock exchanges is presented in a separateSection forming part of the Annual Report.


Your Directors would like to express their sincere appreciation of the co-operation andassistance received from shareholders bankers regulatory bodies and other businessconstituents during the year under review. Your Directors also wish to place on recordtheir deep sense of appreciation for the commitment displayed by all executives officersand staff resulting in the successful performance of the Company during the year.

By the Order of the Board
For Balaji Galvanising Industries Ltd.
Date : 14th day of August 2014 Shiv Bhagwan Bagaria
Place : Secunderabad Chairman


Statement pursuant to Section 217(1)(e) of the Companies Act 1956 read with theCompanies (Disclosure of Particulars in the Report of Board of Directors) Rules 1988.

A. Conservation of Energy

a) Your Company continues to give efforts to improve energy usage efficiencies andinnovate its existing production and manufacturing processes with the objective ofconservation of energy and waste utilization. Regular maintenance of machinery leads toimproved operation efficiency and lower power consumption.

b) Additional Investment & Proposals - NIL

c) Impact of the measures (a) above for reduction of energy consumption and consequentimpact on the cost of production of goods - Low energy consumption

The measures undertaken are expected to reduce the consumption of fuel and powersubstantially and consequently the cost of productivity.

Particulars Current Yr. Previous Yr.
A. Power and fuel consumption
1. Electricity
a. Purchased
- Units (Kwh) 1711844 1429846
- Total Amount (Rs.) 14393353 10191376
- Rate/Unit (Rs./Kwh) 8.41 7.13
b. Own generation through diesel generator
- Total Amount (Rs.) 1960680 5399884
- Diesel Consumed (litres) 36200 110778
- Unit per litre 5.00 48.75
B. Consumption per unit of production
1. Total Amount of Power & Fuel (Rs.) 16354033 15591260
2. G.I/M.S/S.S Wire (M.T) 465.000 416.170
3. Power & Fuel cost per M.T 35169.96 37463.68

B. Research & Development

1. Specific areas in which the Company carried out R & D

The Company is continuously involved in up-gradation of its manufacturing process. TheCompany is keeping a close eye on the latest developments and incorporating advancement inits processes. Due to shortage of electricity the Company was more focused inconservation of energy and ensure that there should be optimum utilization of limitedresources available.

2. Benefits derived as a result of above R&D

Improvement in quality of products enhancement of product range and improvement inmanufacturing processes resulting in cost reduction consumer satisfaction and wideracceptance of the products.

3. Future plan of action

The future plan of the Company is to invest in up-gradation of its manufacturingprocess and _ new machinery for better productivity.

4. Expenses on R & D

The expenditures on development work carried out are of continuous in nature.Expenditure on R & D

Capital : Nil
Recurring : Nil
Total : Nil
Total R&D expenditure as a percentage of total turnovers : Nil

C. Technology absorption adaptation & innovation

i) Technology Absorption - NIL

ii) No technology is imported and the whole plant is working on Indigenous Technology.

D. Foreign Exchange Earnings & Outgo: Earnings: NIL

Outgo: NIL

By the Order of the Board
For Balaji Galvanising Industries Ltd.
Date : 14th day of August 2014 Shiv Bhagwan Bagaria
Place : Secunderabad Chairman