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Bhilai Engineering Corporation Ltd.

BSE: 522283 Sector: Others
NSE: N.A. ISIN Code: N.A.
BSE 05:30 | 01 Jan Bhilai Engineering Corporation Ltd
NSE 05:30 | 01 Jan Bhilai Engineering Corporation Ltd

Bhilai Engineering Corporation Ltd. (BHILAIENGGCORP) - Director Report

Company director report

BHILAI ENGINEERING CORPORATION LIMITED ANNUAL REPORT 2010-2011 DIRECTOR'S REPORT To, The Members, 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). DIVIDEND: The Board of Directors has decided not to recommend dividend for the year 2010-11 in order to consolidate its financial strength. DIRECTORS:- 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 Meeting. 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. PERSONNEL:- 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 furnished. 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 Company. 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. AUDITORS: 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. COST AUDIT: 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. ACKNOWLEDGEMENT: 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 COMPLIANCE REPORT. 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 Act, 1956. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNING & OUTGO: - 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 report. 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 Hathkhoj Village, Industrial Area, B.R.JAIN A.K. JAIN Bhilai (C.G.) CHAIRMAN MANAGING DIRECTOR Place: Bhilai Date: 05.09.2011 ANNEXURE 1 to Directors' Report For disclosure of particulars with respect to conservation of energy: Power and Fuel Consumption 2010-11 2009-10 01 Electricity a) Purchased 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) Electricity Consumption (KWH)/MT Finished Steel and Iron Castings Structural Steel & Equipment 848.10 1183 Electricity Consumption (KWH)/MT of SSP 32.55 28.10 Electricity Consumption (KWH)/MT of GSSP 18.33 18.28 Electricity Consumption (KWH)/MT of NPK 23.77 23.61 Electricity Consumption (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.