BCL Forgings Ltd Management Discussions

BCL FORGINGS LIMITED ANNUAL REPORT 2010-2011 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 related customers. OPPORTUNITY, AND THREATS, OUTLOOK, RISK AND CONCERNS Currently the Companys 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 protected; * 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 Companys industrial Relations continued to be harmonious during the year under review. CAUTIONARY STATEMENT: Statement in the Managements Discussion and Analysis describing the Companys 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.