BIMETAL BEARINGS LIMITED
ANNUAL REPORT 2008-2009
Ladies and Gentlemen,
I have great pleasure in extending a warm welcome to all of you for the
Forty Eighth Annual General Meeting.
I would like to introduce Mr.S. Krishnan a leading Chartered Accountant who
was co-opted as an Additional Director on 30th March, 2009.
I would also like to introduce Mr. Krishna Srinivasan a leading advocate
who was co-opted as an Additional Director on 30th March 2009.
Their experience would be of great assistance during the deliberations of
The Audited Balance Sheet of the Company as at 31.03.2009 together with
Profit and Loss Account for the year ended that date along with the
Directors' Report thereon have been with you for sometime and with your
permission I shall take them as read.
As you are aware the first half of the financial year 2008-09 witnessed a
robust growth with significant increase in export segment of the market
supported by substantial increase in export of alloy powders and strips
with resultant benefits.
The market buoyancy was reflected in other market segments also resulting
in the overall sale for the first half of the financial year increasing by
Rs.24.81 Crores (56%) from Rs.44.13 Crores recorded during the previous
However, the second half of the financial year, following the unprecedented
economic crisis, resulted in Original Equipment Manufacturers, both
domestic and overseas, drastically reducing their schedules resulting in
under utilization of capacity. While the passenger car segment of the
market recorded a small increase in sales the commercial vehicle segment
recorded a sharp decline to the extent of around 32%, a segment in which
our company has significant presence. The high cost of raw materials like
steel and non-ferrous metals and the increase in cost of imports due to
adverse exchange rates together with limitations on power availability had
adverse impact on the profitability of operations. The income from Treasury
operations was also less.
During the difficult year under review the company could achieve profit
before tax and after tax of Rs. 1149.71 lakhs and Rs.734.79 lakhs
Your Directors have recommended a dividend of Rs.7/- per share of Rs.10/-
The Auto Component Industry has been exposed to many risks of varying
intensity. The economic slow down has affected the sentiments across the
continents affecting export to a large extent. The contraction of demand,
volatility of prices of raw material with currency fluctuations,
competitive pressures are having to be addressed effectively. The Company
is well positioned on the materials and process facilities. The project for
indigenous manufacture of new and highly rated Aluminum alloy materials has
been successfully completed and commercial production is expected to
commence during the second half of this year. The Company has also
developed new specifications of copper alloy powders. For Large Bearings,
machines for different operations, have been built in-house and
commissioned to strengthen the transfer line system.
The new materials already developed and under development are fully meeting
the emerging emission norms and load capacities asked for.
The focus on cost control measures, quality and reliability of supplies to
customers, close pursuit of business opportunities for our products are
expected to support us during the current year.
Mr.K.V.Shetty, who joined the Board on 30.03.2000 resigned on 30.03.2009
and on behalf of the Board I would like to place on record the valuable
contribution made by him as Director. Mr.A.B.Avery, your Overseas Director
and Mr. N. Venkataramani one of the senior most Directors retire by
rotation and being eligible offer themselves for re-election.
Mr. S. Krishnan and Mr.Krishna Srinivasan, Directors co-opted during the
year as Additional Directors retire at this Annual General Meeting and
being eligible offer themselves for re-election.
M/s. Price Water House, Chennai the retiring Auditors are eligible for
I would like to take the opportunity to thank my colleagues on the Board
for their valuable contribution.
I would like to place on record our appreciation for the sustained efforts
made by all employees during the difficult year.
I also would like to thank the Government, our Bankers, Customers,
Distributors and Dealers for their continued support.
The Company thankfully acknowledge the continued support from Daido Metal
Concluding, let me also take the opportunity to offer my special thanks to
all our Shareholders for their continued confidence reposed by them in the
Thank you Ladies and Gentlemen for being here with us for the meeting
Source: AGM Notice A. KRISHNAMOORTHY
Dated : 20th July, 2009 Chairman & Managing Director