BCL FORGINGS LIMITED
ANNUAL REPORT 2010-2011
To All The Members
Your Directors have pleasure in presenting Annual Report and the Audited
Accounts for the period ended 31.03.2011.
(Rs. In Lacs)
Financial Results Year ended Year ended
Sales & other Income 3353 4493.81
Profit before Depreciation, interest & Tax (853) (172.78)
Depreciation 126 145.70
Interest 596 596.94
Deferred Tax Liability Nil (69.66)
Profit for the year (853) (845.76)
Profit/(Loss) brought forward from previous year (1177) 194.44
Profit/(Loss) after Tax transferred to Balance Sheet (2030) (651.32)
During the, year ending 31.03.2011, the Company could achieve a turn over
of Rs. 3353.12 lacs as. compared to the turn over of Rs. 4345.74 lakhs
during the year 2009-10. This was mainly on account of continuation of
recessionary trends & lack of working capital.
Even though the Company has good orders in hand, the same cannot,be
fulfilled due to lack of working capital, which is on account of the losses
suffered by Company during previous years due to recessionary conditions.
However, Management is discussing with bankers for the same and is quite
hopeful about the results.
Also Management has taken steps to reduce over heads by reducing employee
strength and increasing the efficiency.
However, with the improvement in the demand pattern for Company's products
especially from the Indian clients, simultaneously with the various cost
control measures under taken, the Company incurred losses of Rs.. 853
lakhs. However, these losses were mainly due to financial expenses and
depreciation of Rs. 719 lakhs.
Management is also trying to increase the share of non-automobile sectors
such as Windmill Energy, Earth Moving, Equipment, Mining, Hydraulics,
Agriculture and export related customers and also has developed various
items for the same and consequently we got results as below.
i) Turnover for the quarter ended 31.03.2011 was Rs. 828.69 lakhs.
ii) Turnover for the quarter ended 30.06.2011 is Rs.1000.48 lakhs
iii) Turnover for the quarter ended 30.09.2011 is Rs. 977.62 lakhs
The Company has hot accepted any Fixed Deposits for the year ended 31st
March, 2011. Particulars under Section 2l7(l)(e) of the Companies Act 1956:
The information as required under section 217(l)(e) of the Companies Act,
1956 read with the Companies (Disclosure of Particulars in the report of
the Board of Directors) Rules, 1988 pertaining to energy conservation,
technology absorption and foreign exchange earnings and outgo is given in
the Annexure forming part of this report.
Mr. Sanjay Gaikwad and Mr. Rajiv Raje, Directors of the Company would
retire by rotation at the ensuing Annual General Meeting of the Company and
are eligible for the re-appointment
During the year Mr. N. E. Narwade and Mr. Amish Patel were appointed as
additional directors of the company by the Board of Directors on August 13,
2011. By virtue of Section 260 of the Companies Act, 1956, he holds office
upto the date of the ensuing Annual General Meeting and is eligible for
Mr. N. E. Narwade has been appointed by the Board as Whole Time Director of
the Company for a period of three years with, effect from August 13, 2011.
Necessary resolution has been proposed in notice of the ensuing Annual
General Meeting for his appointment and payment of remuneration.
Mr. Chandrashekhar Dhongde resigned as Managing Director of the Company
with effect from July 1, 2011. He continues to be a director of the
The shares of the Company are listed on Bombay Stock Exchange Ltd., Delhi
Stock Exchange Ltd. The Company has paid the necessary listing fees for the
year 2011- 12 to the Bombay Stock Exchange Ltd.
The Company's application for delisting is pending with the Delhi Stock
Report on Management Discussion & Analysis and Corporate Governance and' a
certificate' from the Auditors of the Company regarding compliance of
conditions of Corporate Governance as stipulated under Clause 49 of the
Listing Agreement with the Stock Exchanges are attached-hereto and form
part-of this Report
Particulars of Employees
The Company does not have any employee whose particulars are required to be
given pursuant to the provisions of Section 217 (2A) of the Companies Act,
1956 read with the Companies (particulars of Employees) Rules, 1975.
Directors' Responsibility Statement
Pursuant to section 217(2 A A) of the Companies Act, 1956 your Directors
confirm the following
a) that in the preparation of the annual accounts, the applicable
accounting standards have been followed and that no material departures
have been made from the same;
b) that,the directors have selected such accounting policies and applied
them , consistently and made judgements 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 that period;
c) that the directors have taken proper and sufficient care for the
maintenance of adequate accounting record 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 the directors have prepared the annual accounts on a going concern
The reference made by the Auditors in their report and notes to Accounts
are self-explanatory and require 'no further explanation.
M/ s. M.A. Parikh & Co. Chartered Accountants, Auditors of the Company,
retire at the ensuing Annual General Meeting and are eligible for re-
The overall Industrial Relations in the Company have been cordial. Your
Company has received full cooperation and support of its personnel. Your
Directors thank them and expect the same support from them in the years to
The Board wishes to thank their customers, suppliers, Shareholders and the
Bankers of the Company for their support and co-operation.
For and on behalf of the Board
November 24, 2011 Directors
ANNEXURE TO DIRECTORS' REPORT
Information as per Section, 217(1)(e) of the Companies Act, 1956 read with
the Company/(disclosure of Particulars in the Report of Board of Directors)
Rules, 1988 and forming part of Directors' Report for the year ended 31st
A) Energy Conservation
a) Energy conservation measures:
The Company has maintained unity power, factor through out the year. With
the help of recuperators, cost analysers, flow meters and other temperature
and pressure measurement cum control gauges, company had tried its best to
conserve electricity as well as fuel which are the main energy sources. The
Heat Treatment with polymer quenching and use of bio gas have also helped
in further reduction in energy consumption
b) Additional investment and proposal being implemented for Reduction in
consumption of energy:
The Company is in the process of modification of various furnaces.
c) Impact of measures at (a) and (b) above for reduction of energy
consumption and the consequent Impact on the cost of production:
These measures have resulted in reduced consumption of fuel and also saving
in power cost, inspite of substantial increase in the prices of the same.
B) Power and Fuel Consumption at Nasik Factory for the manufacture of
2010-11 2009-10 2008-09
a) Purchase Units (KWh) 2659760 2927000 2601180
Total Amount Rs. 14351949 14400367 12035074
Rate Per Unit 5.40 4.91 4.63
b) Own Generation Nil Nil Nil
Nil Nil Nil
2) Coal NIL NIL NIL
3) Furnace Oil
Purchase quantity (K. Ltrs.) 1176758 1206471 1107466
Total Amount Rs. 31619428 34295371 27445656
Rate Per Unit 26.87 28.42 24.78
4.Light Diesel Oil (LDO)
a) Purchase Qty (K. Ltrs.) 153147 39340 58880
Total Amount Rs. 7445260 1392663 2051186
Rate Per Unit 48.61 35.40 34.83
C) Consumption per unit of production
Production Tonnage Electricity Furnace Oil LDO
(In Rs. Per Ton) (In Rs. Per Ton) (In Rs. Per Ton)
2010-11 2009-10 2010-11 2009-10 2010-11 2009-10 2010-11 2009-10
4174 4812 3440.00 2996.84 7575.00 7127.05 178.37 289.41
D) There was no technology import during the period under review
E) Foreign Exchange Earnings and Outgo 2010-11 2009-10
Foreign Exchange Earnings Rs.101.16 Lacs Rs.142.67 Lacs
Foreign Exchange Outgo NIL NIL
For and on behalf of the Board
November 24,2011 Directors
MANAGEMENT DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE AND DEVELOPMENT:
BCL Forgings Limited is in the manufacturing of carbon & alloy steel
forging components required for various types of Industries - predominantly
to the Automobile Industry. The Company has successfully completed its
expansion programme and presently is in the process of development of
various components for auto as well, as non-auto Industries viz. Windmill
Energy, Earth Moving Equipment, Mining, Hydraulics, Agriculture and export
OPPORTUNITY, AND THREATS, OUTLOOK, RISK AND CONCERNS
Currently the Company's plant is not fully operational due to lack of
working capital & implementation of new techniques arid renovation and
opportunities and threats depend on the full operation of the plant.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:
The Company has in place adequate internal control systems and procedures
commensurate. with the size and nature of its business. These procedures
are designed to ensure:
* That all assets and resources are used efficiently and are adequately
* That all internal policies and statutory guidelines are complied within
letter & spirit
* The accuracy and timing of financial reports and management information.
FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:
The Company has made net loss of Rs. 852.51 lakhs after Provision of
Depreciation of Rs.123.10 lakhs and interest of Rs. 596.12 lakhs and
carried forward a loss of Rs. 2030.01 lakhs to the Balance Sheet after
setting off brought forward loss of Rs. 1177.49 lakhs of previous year.
MATERIAL DEVELOPMENT IN HUMAN RESOURCES INDUSTRIAL, RELATIONS FRONT,
INCLUDING NUMBER OF PEOPLE EMPLOYED:
Human' Resources are the strength of the Company and the Company has put in
place various systems to reward and recognize employee contribution towards
the growth of the Company. Your Company has a team of qualified and
dedicated personnel who have contributed to the growth of the Company.
Your Company's industrial Relations continued to be harmonious during the
year under review.
Statement in the Management's Discussion and Analysis describing the
Company's projections, estimates, expectations or predictions within the
meaning of applicable securities, laws and regulations. These forward
looking statements are based on certain assumptions and expectations of
future events over which the Company exercises no control. The Company
cannot guarantee that these assumptions and expectations are accurate or
will be realized. Actual results may differ materially from such estimates,
projections etc. whether expressed or implied.