(Pursuant to Regulation 34 of the SEBI (LODR) Regulation, 2015)

COMPANY PROFILE

Bhagwati Autocast Limited (BAL) is manufacturing Cast Iron (CI) & Spheroidal Graphite Iron (SGI) Castings having plant located at near Bavla, Ahmedabad. The Company is ISO 9001:2015 certified (BUREAU VERITAS).

OVERALL REVIEW

The Companys production was increased by 3.13% during the year ended March 31, 2021, i.e.14037 (MT) as compared to the previous year production of 13611 (MT). In terms of total Revenue generated during the year are highlighted as follows:

(Rs. in Crores)

	2020-21	2018-19
Sale of CI Castings	104.32	98.85
Sale of SGI Castings	0.00	0.01
Sale of Patterns	0.06	1.64
Revenue from Operations	104.38	100.50
Other Operating Revenue
Other Income	0.04	0.12
Total Revenue	104.42	100.62

While detailed financial position and performance are available in the Balance Sheet, Statement ofProfit &Loss, along with related notes forming part of the financial statements for the year 2020-21.

INDUSTRY STRUCTURE AND DEVELOPMENTS

As the Companys product range can be categorized in various tractor, compressor industry manufacturers. It would be appropriate to takea look at the trends that are prevailing in relevant automobile sectors.

OUTLOOK, OPPORTUNITIES AND DEVELOPMENTS

The entire country is under a severe impact of CoVID-19 pandemic. Our Company is closely dependent on the growth of tractor industries and demand for tractors is highly dependent on the agriculture activity in the country and farmers income by way of minimum support price (MSP).

Factors like infrastructure development, and launch of new models by vehicle manufactures, changing buying pattern, replacement demand etc. overall improvement in economic fundamentals will be the positive drivers for tractor andautomobile industries in the medium to long term. The second wave of Covid and the various restrictions are expected to weigh on demand. This time around, rural areas are also getting impacted, which would affect in tractor industry. The optimistic outlook of tractor industries will give boost to the demand for auto components as well and as a component supplier, the prospects of Companys business also looks good.

THREATS, RISKS & CONCERNS

As your Company supplies components to tractor OE manufacturers, the Company would be directly affected by the factors impacting tractor industry. These would include issues like quantum of rains spread, Government policy on procurement, enforcement of safety / emission regulations, availability of credit, change in interest rates, commodity price trends,increasing intensity of competition etc.

INTERNAL CONTROL SYSTEM AND ADEQUACY

The Company has established procedures in place for internal control. The policies and procedures have been laid down with an objective to provide reasonable assurance that assets of the Company are safeguarded from risks of unauthorized use / disposition and the transactions are recorded and reported with proprietary, accuracy and speed. These aspects are regularly reviewed during internal audit and statutory audit. The Company has also laid down adequate internal financial controls. Internal Audit Reports are reviewed by the Audit Committee of the Board from time to time. During the year, such controls were tested and no material weakness in their operating effectiveness was observed.

HUMAN RESOURCES

The Company has a highly committed, loyal and dedicated team. Many initiatives have been taken to support business through organizational efficiency, process change support and various employee engagement programmes which has helped the Organization achieve higher productivity levels. A significant effort has also been undertaken to develop leadership as well as technical/ functional capabilities in order to meet future talent requirement. The Company promotes an atmosphere which encourages learning and informal communication within the organization. Industrial relations were cordial throughout the year under review.

DETAILS OF SIGNIFICANT CHANGES IN THE KEY FINANCIAL RATIOS & RETURN ON NET WORTH

As per Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (including any statutory modification(s) or re-enactment(s) thereof, for the time being in force), details of significant changes i.e. change of 25% or more as compared to the immediately previous financial year in Key Financial Ratios and any changes in Return on Net Worth of the Company including explanations therefore are given below:

Sr.No. Particulars	FY 2020-21	FY 2019-20	Change in %	Explanation
1 Debtor Turnover	3.36	3.42	-1.83	N.A.
2 Inventory Turnover	17.35	16.35	6.12	N.A.
3 Interest Coverage Ratio	7.43	4.49	65.55	Due to fast realization from customers, it has resulted in lower utilization of cash credit facilities.
4 Current Ratio	1.52	1.53	-0.94	N.A.
5 Debt Equity Ratio	0.99	0.98	0.78	N.A.
6 Operating Profit Margin (%)	2.64	3.90	-32.28	Due to lock down during first quarter of 2020-21 the compnay has made loss Rs. 96.79 lakhs. Hence overall profit is after adjustment of this loss.
7 Net Profit Margin (%)	1.77	2.14	-17.53	N.A.
8 Return on Net Worth	6.52	8.06	-19.06	N.A.

CAUTIONARY STATEMENT

Statement in the Management Discussion and Analysis Report describing companys objectives and expectations may constitute "forward looking statements" based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realized by the Company. Actual results might differ materially from those either expressed orimplied.

	By Order of the Board of Directors For, BHAGWATI AUTOCAST LIMITED
Place : Ahmedabad	Dr. Pravin N. Bhagwati
Date : 26/05/ 2021	Chairman & Jt. Managing Director DIN : 00096799