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Directors Report of Bothra Metals & Alloys Ltd.

Mar 31, 2014

The Members

Bothra Metals & Alloys Ltd.

Mumbai, Maharashtra.

The Directors have pleasure in presenting the Thirteenth Annual Report of the Company along with Audited Statement of Accounts for the year ended on 31st March 2014.

FINANCIAL RESULT

(Rs In Lakhs) 2013-14 2012-13

Sales 22,746.06 17,669.79

Less : Excise Duty 318.09 49.67

Total Income 22,427.97 17,620.12

Less : Expenditure 21303.12 16743.45

Operating Earnings / (Loss) before Financial cost, Depreciation & Tax 1124.85 876.67

Less : Financial cost 609.05 322.51

: Depreciation 140.99 60.60

Add : Other Income 55.93 19.86

Earnings / (Loss) before Tax 430.74 513.42

Less : Provision for Taxation 77.10 69.13

Profit/(Loss) after Tax 353.64 444.29

Add : Profit/(Loss) Brought Forward 690.76 246.47

Amount available for Appropriation 1044.40 690.76

Less : Appropriation

Proposed Dividend - -

Surplus Carried Forward to Balance Sheet 1044.40 690.76

Basic Earnings per share (face value of Rs10/-each) 1.91 2.78 REVIEW OF OPERATIONAL RESULTS

- During the current year of operations, your company has shown a remarkable improvement, as the turnover has increased to the extent of 27.29 % from ? 17,620.12 Lakhs during FY 2012-13 to ? 22,427.97 Lakhs during FY 2013-14.

- Operating profitability has improved marginally from 4.98% to 5.02% indicating that company has sailed through past one year amid lower physical premium and also cost inflation, wherein most of the players in the industry have seen muted growth. But profit after tax has declined to ? 353.64 Lakhs during FY 2013- 14 as compared to ? 444.29 Lakhs during FY 2012-13.

- The marginal reduction in the profits for the year 2013-14 was majorly due to increase in finance cost by almost 80% from the year 2012-13. Since your company''s major raw-material requirement is fulfilled through import, we too were caught in the storm of the major fall of the rupee.

- F.Y 2013-14 saw a major fluctuation in foreign exchange where the rupee value depreciated to one of its lowest, thereby creating a disadvantageous situation for the importers. The major component of the finance cost being the net loss on foreign currency transactions was due to the sudden fall of the rupee. The other major component of the finance cost is bank charges which were in a way the salvage cost i.e. cost incurred in forward booking to shield from the uncertainties of the fluctuations and secure the best available rate for future import payments.

- During the year, Company has streamlined the production at new plant at Sangli (Maharashtra) and is foreseeing this plant as an accelerator to the growth of the company.

FUTURE PROSPECTS

After the commencement of Sangli (Maharashtra) Plant, this year onwards the company is expecting the manufacturing activities to go up significantly and also an increase in the share of manufacturing sale out of overall topline.

Your Company is seeking more opportunities in exports for better prospects of company and also concentrating on utilization of the production capacity at New Plant at Sangli (Maharashtra).

DIVIDEND

The Company has decided to sustain the growth in line with the long term growth objectives of the Company by retaining the profits and utilizing the same for opportunities in hand.

CONSERVATION OF ENERGY. TECHNOLOGY ABSORPTION & FORIESN EXCHANGE EARNINSS AND OUTGOINGS:

The necessary information pertaining to conservation of energy, technology absorption, foreign exchange earnings and outgoings etc. as required pursuant to Section 217 (1) (e) of the Companies Act, 1956, read with Companies Rules, 1988 (Disclosure of particular in the Report of Directors), is furnished below :

Kala-Amb (HP)

A. POWER & FUEL CONSUMPTION

Conservation Energy 2013-2014 2012-13

a) Electricity Purchased (In Units) 1308900 1314771

Total Amount in (Rs In Lakhs) 80.08 70.03

Rate/Unit (Rs) 6.12 5.33

b) Furnace Oil & Other Fuel

Quantity (in Ltr) 437506 407,058

Total Amount in (Rs In Lakhs) 206.22 183.80

Rate/ Litre (Rs) 47.14 45.15

c) Gas

Quantity (in Kgs.) 9080 4430

Total Amount in (Rs In Lakhs) 8.79 3.69

Rate/ Kgs (Rs) 96.77 83.34

The Company has been continuously attempting to create a conscious awareness against excessive consumption and wastage at all levels.

B. CONSUMPTION PER UNIT OF PRODUCTION:- Paticular 2013-2014 2012-2013

a) Electricity Purchased

Total Amount in (Rs In Lakhs) 80.08 70.03

Production at Kala-Amb (in Kgs.) 2478701 2427147

Rate/Kgs. (Rs) 3.23 2.89

b) Furnace Oil & Other Fuel

Total Amount in (Rs In Lakhs) 206.22 183.80

Production at Kala-Amb (in Kgs.) 2478701 2427147

Rate/Kgs. (Rs) 8.32 7.57

c) Gas

Total Amount in (Rs In Lakhs) 8.79 3.69

Production at Kala-Amb (in Kgs.) 2478701 2427147

Rate/ Kgs (Rs) 0.35 0.15

The Company is not in a position to compile and give information relating to consumption per unit of production, since products are having different processes of production. But efforts have been put to compile the data presented.

Bhavnagar (Gujrat)

Conservation Energy 2013-2014 2012-2013

A. POWER & FUEL CONSUMPTION:-

a) Electricity Purchased (In Units) 2348 882

Total Amount in (? In Lakhs) 0.27 0.16

Rate/Unit (?) 11.41 23.61

b) Coke

Quantity (in Kgs.) 223.30 5186.5

Total Amount in (Rs In Lakhs) 3.46 3.93

Rate/ Kgs (Rs) 15.50 7.58

The Company has been continuously attempting to create a conscious awareness against excessive consumption and wastage at all levels.

B. CONSUMPTION PER UNIT OF PRODUCTION:-

Paticular 2013-2014 2012-2013

a) Electricity Purchased

Total Amount in (T In Lakhs) 0.27 0.16

Production at Bhavnagar (in Kgs.) 107995 261153

Rate/Kgs. (T) 0.25 0.06

b) Coke

Total Amount in (T In Lakhs) 3.46 3.93

Production at Bhavnagar (in Kgs.) 107995 261153

Rate/ Kgs (T) 3.20 1.50

The Company is not in a position to compile and give information relating to consumption per unit of production, since products are having different processes of production.

Sangli (Maharashtra)

A. POWER & FUEL CONSUMPTION:-

Paticular 2013-2014 2012-2013

a) Electricity Purchased

(In Units) 549438 3786

Total Amount in (T In Lakhs) 46.90 1.52

Rate/Unit (T) 8.54 40.27

b) Furnace Oil & Other Fuel

Quantity (in Ltr) 217701 3,240

Total Amount in (T In Lakhs) 89.30 1.16

Rate/ Litre (T) 41.02 35.88

c) Coke

Quantity (in Kgs.) 24439 0.00

Total Amount in (Rs In Lakhs) 2.15 0.00

Rate/ Litre (Rs) 8.81 0.00

The Company has been continuously attempting to create a conscious awareness against excessive consumption and wastage at all levels.

B. CONSUMPTION PER UNIT OF PRODUCTION:-

Conservation Energy 2013-2014 2012-2013

a) Electricity Purchased

Total Amount in (Rs In Lakhs) 46.90 1.52

Production at Sangli (in Kgs.) 1564083 86334

Rate/Kgs. (Rs) 3.00 1.77

b) Furnace Oil & Other Fuel

Total Amount in (Rs In Lakhs) 89.30 1.16

Production at Sangli (in Kgs.) 1564083 86334

Rate/Kgs. (Rs) 5.71 1.35

C) Coke

Total Amount in (Rs In Lakhs) 2.15 0.00

Production at Sangli (in Kgs.) 149387 0.00

Rate/Kgs. (Rs) 1.44 0.00

The Company is not in a position to compile and give information relating to consumption per unit of production, for each product separately, since products are having different processes of production.

C. TECHNOLOGY ABSORPTION, RESEARCH & DEVELOPMENT: -

The Company has incurred expenditure towards quality management, quality control, and to improve the production capacity. The Company has also undertaken cost reduction and cost control program to manage and reduce the cost of production.

D. FOREIGN EXCHANGE INFLOWS & OUTFLOWS

(Rs In Crores) 2013-14 2012-13

a) Foreign Exchange Inflows Nil Nil

b) Foreign Exchange Outflows 46.28 50.62

(Actual Paid) (48.53) (55.73)

AUDITOR

M/s. R T Jain & Co. Chartered Accountants holding office till the ensuing Annual General Meeting and our directors proposed to reappoint them. M/s. R T Jain & Co. expressed their willingness to continue as Auditor of the Company. Therefore, our Directors propose to re-appoint M/s R T Jain & Co. Chartered Accountants as auditor of the Company. The Auditors have given a confirmation that they do not exceed the limit for audit engagements as set under Section 141(3) of the Companies Act, 2013.

PARTICULAR OF EMPLOYEES

Pursuant to Section 217 (2A) of the Companies Act, 1956, read with the Companies (Particular of Employees) Rules 1975 as amended, the Company has no personnel in its employment drawing salary in excess of ? 60 Lakhs per annum or ? 5 Lakhs per month.

DIRECTORS RESPONSIBILITY

Pursuant to the requirements under Section 217(2AA) of the Companies Act, 1956, with respect to Directors Responsibility Statement, it is hereby confirmed that:

1. In preparation of the annual accounts for the year ended 31st March, 2014, the company has followed the applicable accounting standards and there are no material departures from the same.

2. The Directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of state of affair of the Company as at 31st March, 2014 and of the profit of the Company for the year ended on that date.

3. The Directors have taken proper and sufficient care for the maintenance of adequate accounting records 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.

4. The Directors have prepared the annual accounts of the Company on a "going concern" basis.

ACKNOWLEDGEMENTS

Your Directors are pleased to express their gratitude for all the co-operation and assistance received from bankers, members, customers, vendors, various Government authorities for the year under review. Your Directors also appreciate the co-operation and support received from their executives, employees and workers.

For and on behalf of Board Sunderlal Bothra Sardarmal Suthar (Managing Director) (Director)

Place: Mumbai Date: 30thMay,2014


Mar 31, 2013

To The Members of Bothra Metals & Alloys Ltd. Mumbai, Maharashtra.

The Directors have pleasure in presenting the Twelfth Annual Report of the Company along with Audited Statement of Accounts for the year ended on 31st March 2013.

FINANCIAL RESULT

( Rs. In Lakhs)

Particulars 2012-13 2011-12

Sales 17669.79 11,254.28

Less : Excise Duty 49.67 32.59

Other Income 19.86 69.73

Total Income 17,639.99 11,291.42

Less : Expenditure 16,936.02 10,688.54

Profit/(Loss) before Interest, Depreciation & Tax 703.97 602.88

Less : Interest 129.95 134.26

: Depreciation 60.60 55.65

Profit/(Loss) before Tax 513.42 412.97

Less : Provision for Taxation 69.13 24.29

Profit/(Loss) after Tax 444.29 388.68

Add : Profit/(Loss) Brought Forward 246.48 171.07

Amount available for Appropriation 690.77 559.73

Less : Appropriation

Proposed Dividend - -

Dividend Distribution Tax - -

For Issue of Bonus Share - 63.25

Transfer to General Reserve - 250.00

Surplus Carried Forward to Balance Sheet 690.77 246.48

Basic Earnings per share (face value of Rs. 10/- each) 2.78 2.44



REVIEW OF OPERATIONAL RESULTS

- During the current year of operations, your company has shown a remarkable improvement, as the turnover has increased to the extent of 57.02% from Rs. 11,221.69 Lakhs during FY 2011-12 to Rs. 17,620.12 Lakhs during FY 2012-13.

- Profitability has also increased, as Profit after Tax is Rs. 444.29 Lakhs during FY 2012-13 as compared to Rs. 388.67 Lakhs during FY 2011-12.

- During the year, Company has commenced production at new plant at Sangli (Maharashtra) and is foreseeing this plant as a milestone for the company.

FUTURE PROSPECTS

After the full fledge commencement of Sangli (Maharashtra) Plant, this year onwards the company is expecting the manufacturing activities to go up significantly and also an increase in the share of manufacturing sale out of total sale.

Your Company is seeking more opportunities in exports for better prospects of company and also concentrating on utilization of the production capacity at New Plant at Sangli (Maharashtra).

DIVIDEND

The Company has decided to sustain the growth in line with the long term growth objectives of the Company by retaining the profits and utilizing the same for opportunities in hand.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION & FORIEGN EXCHANGE EARNINGS AND

OUTGOINGS:

The necessary information pertaining to conservation of energy, technology absorption, foreign exchange earnings and outgoings etc. as required pursuant to Section 217 (1) (e) of the Companies Act, 1956, read with Companies Rules, 1988 (Disclosure of particular in the Report of Directors), is furnished below:

C. TECHNOLOGY ABSORPTION, RESEARCH & DEVELOPMENT:- The Company has incurred expenditure towards quality management, quality control, and to improve the production capacity. The Company has also undertaken cost reduction and cost control program to manage and reduce the cost of production.

AUDITOR

M/s. R T Jain & Co. Chartered Accountants holding office till the ensuing Annual General Meeting and our directors proposed to reappoint them. M/s. R T Jain & Co. expressed their willingness to continue as Auditor of the Company. Therefore, our directors propose to re-appoint M/s R T Jain & Co. Chartered Accountants as auditor of the Company. The Auditors have given a confirmation that they do not exceed the limit for audit engagements as set under Section 224 (1B) of the Companies Act, 1956.

PARTICULAR OF EMPLOYEES

Pursuant to Section 217 (2A) of the Companies Act, 1956, read with the Companies (Particular of Employees) Rules 1975 as amended, the Company has no personnel in its employment drawing salary in excess of Rs. 60 Lakhs per annum or Rs. 5 Lakhs per month.

DIRECTORS RESPONSIBILITY

Pursuant to the requirements under Section 217(2AA) of the Companies Act, 1956, with respect to Directors

Responsibility Statement, it is hereby confirmed that:

1. In preparation of the annual accounts for the year ended 31st March, 2013, the company has followed the applicable accounting standards and there are no material departures from the same.

2. The Directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of state of affair of the Company as at 31st March, 2013 and of the profit of the Company for the year ended on that date.

3. The Directors have taken proper and sufficient care for the maintenance of adequate accounting records 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.

4. The Directors have prepared the annual accounts of the Company on a "going concern" basis.

ACKNOWLEDGEMENTS

Your Directors are pleased to express their gratitude for all the co-operation and assistance received from bankers, members, customers, vendors, various Government authorities for the year under review. Your Directors also appreciate the co-operation and support received from their executives, employees and workers.



For and on behalf of Board

Sunderlal Bothra Kishanlal Bothra

(Managing Director) (Director)

Place: Mumbai

Date: 1st May, 2013

 
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