BHILAI ENGINEERING CORPORATION LIMITED
ANNUAL REPORT 2010-2011
Your Directors have pleasure in presenting their 51st Annual Report
together with the Audited accounts of the Company for the financial year
ended 31st March 2011.
FINANCIAL RESULTS (Rs. in lacs)
F.Y. 2011 F.Y. 2010
Sales and other Income 79,859.93 44,176.42
Profit before tax
during the year 10,637.10 2,549.96
Provision for Taxation (3,650.00) (1,000.00)
Profit after Tax 6,987.10 1,549.96
Provision for Taxation
of earlier years w/back (123.01) 137.76
Deferred Tax Liabilities
w/Back 35.74 -
Amount transferred to
General Reserve - 1,687.72
Balance carried to
Balance Sheet 6,899.83 -
THE YEAR IN RETROSPECT & FUTURE PROSPECTS:
Company's profit before tax enhanced to Rs.10, 637.10 Lac as compared to
Rs.2,549.96 Lac in preceding year. After tax provision of Rs 3,650 Lac
(Last Year Rs.1,000 Lacs) the net profit (PAT) for the year is Rs. 6,987.10
Lac (Last Year Rs. 1,549.96 Lacs).
The Board of Directors has decided not to recommend dividend for the year
2010-11 in order to consolidate its financial strength.
In terms of the provisions of the Companies Act, 1956, Smt Krishna Jain,
retires by rotation and being eligible offers herself for re-appointment at
the ensuing Annual General Meeting.
The present term of Shri Ashish Jain, Whole-time Director of the Company
has expired on 31/08/2011. It is proposed to reappoint him for a further
period of 5 years with effect from 01/09/2011 in the ensuing Annual General
Miss Geetika Jain is Director of the Company w.e.f.04/12/2009. Now it is
proposed to appoint her as whole time director for a period of 5 years with
effect from 01/09/2011 in the ensuing Annual General Meeting.
None of the employees is drawing salary in excess of Rs. 2,00,000/- per
month or Rs.24, 00,000/- per annum and as such particulars in accordance
with the provision of Section 217(2A) of the Companies Act, 1956 are not
DIRECTORS RESPONSIBILITY STATEMENT:-
The Mandatory accounting standards have been followed.
The accounting policies are reasonable and prudent and are consistently
followed to give a true and fair view of the state of affairs of the
Proper and sufficient care has been taken for maintenance of adequate
accounting records for safeguarding the assets of the Company and for
preventing/detecting fraud and other irregularities.
The Annual Accounts have been prepared on going concern basis.
The terms of M/s P.C. Bafna & Company, Chartered Accountants, as Auditors
expires at the conclusion of the Annual General Meeting and they are
eligible for re-appointment. The Auditors have given certificate to the
effect that re-appointment, if made, will be within the prescribed limits
specified under section 224 (1B) of the Companies Act 1956.
Pursuant to the Section 233-B, the Central government has directed to carry
audit of the Company's Cost account records in respect of Engineering and
Fertilizers Divisions. Accordingly your Directors have appointed M/s S.
Chander and Associates, Cost Accountant to conduct cost audit for the year
ended March 2011.
Your Directors take this opportunity to place on record their due
appreciation of the valuable contribution and the spirit of dedication of
the employees at all levels during the year. The Directors also express
their deep gratitude for the business assistance, co-operation and support
extended to your Company by customers, Distributors, Suppliers/ Service
Providers, Financial Institutions, Banks, various Governmental
Organizations/Agencies and Shareholders and look forward for their
continued support and Co-operation in future also.
PUBLIC DEPOSIT: -
The Company has not accepted any deposit within the meaning of Section 58 A
of the Companies Act, 1956 and the rules made hereunder
The Company has taken Compliance Report from practicing Company Secretary
for the F.Y. ended 31st March, 2011 as per Section 383A of the Companies
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNING &
a). Conservation of Energy: -
Information relating to Energy consumption and conservation as required
under Rule 2 of the Companies (Disclosure of particulars in the report of
Board of Directors) Rules 1989 is given in Annexure 1 forming part of this
b). Technology Absorption and Research & Development: -
The Company has Research &Development Section recognized by the Department
of Science & Technology and step has been taken during the period for: -
i. Improvement in product quality.
ii. Reduction in raw material consumption.
iii. Improvement in cost effectiveness.
c). Foreign Exchange Earning & Outgo: -
i Earnings : Rs. 4041.69 lac.
ii. Outgo : Rs. 12493.86 lac
Registered Office: FOR AND ON BEHALF OF THE BOARD
Industrial Area, B.R.JAIN A.K. JAIN
Bhilai (C.G.) CHAIRMAN MANAGING DIRECTOR
ANNEXURE 1 to Directors' Report
For disclosure of particulars with respect to conservation of energy:
Power and Fuel Consumption 2010-11 2009-10
Units 21688772 19322631
Total Amount 89433128 78657305
Average rate per unit 4.12 4.07
b) Own Generation
Units 2358309 2452793
Units/Liter of Diesel oil 2.94 2.93
Cost/Unit 12.67 12.34
02. Furnace Oil
Qty. (K.L.) 3337.50 1672
Value per K.Ltrs.of.oil 58,738 53,190
03. Consumption per unit of
production standard (if any)
(KWH)/MT Finished Steel
and Iron Castings Structural
Steel & Equipment 848.10 1183
(KWH)/MT of SSP 32.55 28.10
(KWH)/MT of GSSP 18.33 18.28
(KWH)/MT of NPK 23.77 23.61
(KWH)/MT of BRP 43.22 40.21
Furnace Oil Consumption
(KL) per MT of Steel and
Iron Castings. 0.172 0.219
MANAGEMENT DISCUSSION AND ANALYSIS
a). In Your company has four business divisions, namely Engineering and
Project Divisions, Fertilizer dustry Structure and Developments:- Division,
Constructions Division & Foods Division. The principal product includes
steel castings, fabricated steel structures, heavy equipments, single super
phosphates (SSP), sulphuric acid, processed agro foods etc. Engineering
Division also undertakes projects on Turnkey basis.
b). Outlook on Opportunities, Threats, Risk & Concerns:- Due to the boom in
steel sector all the steel plants of SAIL and of private sector are
expanding their capacities by installing new machineries. Our Engineering
Division has already bagged no. of orders from different steel plants.
Apart from this, the company also received substantial order from RINL
Vishakhapatnam. The Plants of Fertilizer Divisions are of very advanced
technology, established brand name of companys products, effective
distribution net work and increase in irrigation facilities will support
favourably to the company to grow its market size.
c). Segment wise or product wise performance: During the year under review
your Company achieved Sales and other income of Rs.79859.91 Lacs and
segment wise details of which are as under:-
Division Amount in lac
Engineering Rs. 62804.44
Fertilizers Rs. 14942.69
Constructions Rs. 1,566.12
Foods Rs. 546.66
Total Rs. 79859.91
The future outlook of your company largely depends on the prevalent
conditions in various sectors e.g. Steel, Cement, Mining Railways and
Agriculture etc. With the steel sector having turned around the demand for
products of Engineering division has gone up.
As in other industries, there are challenges of technological up-gradation,
risks on account of poor demand & increase in raw material prices, poor
monsoon etc. The subsidy policy of Govt. plays a very vital role.
Unbalanced favouring to complex fertilizers affects the viability of
company's products. However the single super phosphate has now covered
under NBS (Nutriant based subsidy) with effect from 01/05/2010 which will
increase the business value.
d).Internal Control systems and their adequacy:- Your Company has already
installed adequate internal control systems. The audit committee
periodically reviews such systems with the help of internal and statutory
auditors and reports to the Board on its adequacy.
e).Discussion on financial performance with respect to operational
performance The relevant details are given in the Directors' Report.
f).Human Resources and Industrial Relations:
Industrial relations during the year under review have been cordial and
peaceful. The company has been continuously making concerted efforts aimed
at development of Human Resources to equip them to meet the growing
organizational needs and challenges.