MANAGEMENT DISCUSSION Manufacturing Industry is backbone of Indian economy. The year 2011-2012 has shown loweconomic growth. In the year 2011-2012 GDP growth was at 6.75 % as compared to 2010-2011which was 8.7%. Forging Industry caters to the needs of automobile and heavy engineeringindustry. Our unit is related to Heavy Engineering and Machine Building Industry which isa core sector.
OPERATIONS & FINANCIAL PERMORMANCE :
Sales and profit performance for the year ended 31’st March, 2012 is satisfactory.Following is the summary of performance.
| Year | 2011-2012 (Rs.in | 2010-2011 (Rs. |
| Lacs) | in Lacs) |
| Sales | 5553.05 | 3163.94 |
| Cost of operation | 4923.94 | 2856.11 |
| Interest & Depreciation | 308.03 | 232.18 |
| Profit before Tax | 488.77 | 312.41 |
| Provision for Taxation | 164.75 | 112.44 |
| Net Profit after Tax | 324.02 | 199.97 |
Export performance of the Company for the last three years is tabled below :
| Year | Export Value ( Rs.) | Total Sales Value ( Rs.) | % Export | % Export Growth/ (decline) |
| 2009-2010 | 269,758,839 | 326,449,062 | 82.63 | ( 5.88 ) |
| 2010-2011 | 276,788,714 | 3163,93,558 | 87.48 | 4.85 |
| 2011-2012 | 511,183,411 | 5553,05,147 | 92.05 | 7.37 |
GENERAL :
The Registered Office of the Company is situated at 18, Shivaji Co-operative
Housing Society, Off. Senapati Bapat Road, Pune- 411016.
The Company is governed by ISO 14001 for Environmental Management System and OHSAS18001 for Occupational Health and Safety Management System and also under ISO 9001-2000.
IN TERNAL CONTROL SYSTEM & THEIR ADEQUACY :
Company has reasonable Internal Control System to safeguard assets of the Company anddetects, frauds or irregularities, if any. The internal control system is designed toensure reliability of financial records and other records for preparing financialstatements.
CONCERN & THREATS :
The world economy is under slow down. The Companies export account for about 92.05% ofthe total business. International buyers are regular in placing orders. It is expectedthat there will be increase turnover of the company in the next financial year.
Impact of the volatile Foreign Exchange Rates is enormous. The Company has takenforward exchange cover from Bank of Baroda, Pune Camp Branch to reduce the impact offoreign exchange rate difference.
Outlook :
During the year under review, the Company was able to maintain sales in spite of thecompetitive conditions. Market out-look for next two years looks promising. However,un-certainties in the exchange rate fluctuations may adversely affect the performance ofthe Company.
CAUTIONARY STATEMENT
Statements in this Management Discussion and Analysis, describing the Company’sobjectives, projections, estimates and expectations may be "forward lookingstatements’’ within the meaning of applicable laws and regulations. Actualresults might differ materially from those either expressed or implied.
HUMAN RESOURCES :
The Company has a strength of 70 employees as on 31’st March,2012. The Companycontinues to maintains cordial relations with its’ employees. The key focus of theCompany is to develop and retain talented employees.
APPRECIATION
Your Directors wish to place on record their grateful thanks to Bank of Baroda fortheir continued support and confidence reposed in the Company by its’ shareholders.
TO THE BOARD OF DIRECTORS OF RAJKUMAR FORGE LIMITED CERTIFICATION BY CHIEF EXECUTIVEOFFICER AND CHIEF FINANCIAL OFFICER OF THE COMPANY
I, the undersigned, in my capacity as Managing Director of Rajkumar Forge
Limited, ("the Company"), to the best of my knowledge and belief certify that:
(a) I have reviewed financial statements and the cash flow statement for the year ended31’st March, 2012 and to the best of my knowledge and belief :
(i) these statements do not contain any material untrue statement or omit any materialfact or contain statements that might be misleading.
(ii) these statements together present a true and fair view of the company’saffairs and are in compliance with existing accounting standards, applicable laws andregulations.
(b) There are, to the best of my knowledge and belief no transactions entered in to bythe Company during the year ended 31’st March, 2012 , which are fraudulent, illegalor violative of the Company’s code of conduct.
(c) I accept the responsibility for establishing and maintaining internal controls forfinancial reporting and I have evaluated the effectiveness of the internal control systemsof the Company pertaining to financial reporting and I have disclosed to the Auditors andAudit Committee , deficiencies in the design or operation of such internal controls, ifany, of which I am aware and the steps that have been taken or proposed to take to rectifythese deficiencies.
(d) I have indicated to the Auditors and the Audit Committee : changes in internalcontrol over financial reporting
(i) Significant during the year. change in accounting policies during the yearand
(ii) Significant that the same have been disclosed in the notes to financial statement;and
(iii) fraud of which we are aware and Instances of significant the involvement therein, if any, of the management or an employee having significant role in thecompanies internal control system over financial reporting.
| RAJKUMAR .S.KOTHAVALE |
| Managing Director |
| Date : 12’th May , 2012 | |
| Place : Pune | |