| The Directors have the pleasure in presenting the 35th Annual Report
together with the Audited Accounts of the company for the year ended
31st March,2009.
FINANCIAL RESULTS
Rs. in Lacs
2008-09 2007-08
Profit before Depreciation 40.94 80.80
Depreciation 2.49 2.67
Profit After Depreciation and before
Extra Ordinary 38.43 78.13
Items
Share of Profit/(Loss) for Partnership Firms 31.39 -
Profit for the year before Tax 69.81 78.13
Less :- Provision for Income
Tax
(i) Current Tax (2.60) (6.25)
(ii) Fringe Benefit Tax (0.02) (0.04)
(iii) Deferred Tax 21.44 (9.06)
(iv) Income Tax for earlier years (0.32) (0.84)
Net Profit for the year 88.31 61.94
Balance of Profit brought forward
from previous years 1512.76 1470.82
Amount available for Appropriation 1601.07 1532.76
Appropriation :
Transferred to RBI Reserve Fund - NBFC 20.00 20.00
Balance of Profit carried to Balance Sheet 1581.07 1512.76
DIVIDEND
In order to conserve the financial resources of the Company, the
Directors have not recommended any dividend for the year under review.
FIXED DEPOSITS
The company has not accepted any deposits from public and is not,
therefore, required to furnish
DIRECTORS
In pursuance of Article 134 of the Articles of Association of the
Company, Shri N. K. Sureka and Shri Yogesh Mathur retire by rotation
and, being eligible, offer themselves for re-appointment.
DIRECTORS RESPONSIBILITY STATMENT
As required Under Section 217(2AA) of the Companies Act, 1956
(here-in-after known the "Act"), it is hereby affirmed that :- a) in
preparation of annual accounts, all applicable accounting standards
have been followed.
b) the Directors had selected such accounting policies and applied them
consistently and made judgements and estimates that are reasonable and
prudent so as to give a true and fair view ot the state of affairs of
the Company at the end of the financial year under report and of the
profit and loss of the Company for that period.
c) the Directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities; and
d) the Directors have prepared the annual accounts on a going concern
basis.
CORPORATE GOVERNANCE
A detailed Report on Corporate Governance is given in Annexure-A to
this report. The Auditors Certificate relating to compliance of the
conditions of Corporate Governance, as stipulated in clause- i 49 of
the Listing Agreement with the Delhi Stock Exchange where the shares of
the Company are listed, is also enclosed.
MANAGEMNT DISCUSSION & ANALYSIS
A Public Limited Company in the name of Bihariji Finance and Traders
Limite d was got incorporated on 19.01.1974 with registration
certificate issued by the Registrar of Companies, Delhi and Haryana
vide Registration Certificate No. 7047 of 1973-74 with seven
subscribers to the Memorandum of Association with the object of finance
and trading business. The Certificate of commencement of business was
also granted by ROC to the company on the same day. Subsequently, the
fresh Certificate of Incorporation was obtained by the company on
20.02.1986 changing the name of the company from Bihariji Finance and
Traders Limited to Bihariji Ispat Udyog Limited with the object of
taking up the business of iron & steel products apart from continuing
with the finance business since the company was having in its main
objects the business of financing industrial enterprises.
On the amendment in the Reserve Bank of India Act relating to the
Non-banking Financial Companies according to which all the non-banking
financial companies were required to be got registered with the Reserve
Bank of India and accordingly the company was registered on 10.03.1998.
The company is listed on Delhi Stock Exchange Limited.
Bihariji Ispat Udyog Limited entered into a partnership in the name of
RASHI Developers with M/s Matoshree Properties Pvt. Ltd and M/s
Jhunjhunwala Trading Pvt. Ltd. who were having very rich experience in
the construction activities, and carried out a housing project in
Santacruz with an area of 1 acre. They also constructed 112 flats and
the project was completed successfully by M i d 2006 and possession of
the flats was handed over to the customers.
During the year under report, your company has entered into another
partnership with M/s Ultra Home Construction Pvt. Ltd. by way of
forming a consortium in the name of Amrapali Sapphire Developers
Private Limited and has been allotted a plot admeasuring 40,000 sq.
meter in NOIDA by New Okhla Industrial Development Authority for
constructing flats under Group Housing Scheme.
It is a cash rich company and has earned substantial profits during the
last three years. The management is hopeful that the real estate
business will increase its profits substantially in addition to the
companys earnings from its investment activity and its bottom line
projects.
RISKS & CONCERNS
At Bihariji Ispat Udyog Limited, all key functions and divisions are
independently responsible to monitor risk associated within their
respective areas of operation such as financing and dealing in the
sale/purchase of securities of other body corporates. Since the trading
of securities is governed by the fluctuating trend of the market of
securities listed on Stock Exchange not only of the country but also of
abroad as well as the government policies from time to time,
profitability of the company is very much volatile.
AUDITORS
M/s. Salarpuria & Partners, Chartered Accountants, who retire at the
conclusion of this Annual General Meeting and, being eligible, offer
themselves for re-appointment. Your Directors recommend that they be
re-appointed as Auditors of the Company for the Financial Year
2009-2010 on such remuneration as may be fixed by the Shareholders.
Auditors observations are explained in various notes on the Accounts
and therefore do not call for any further comments.
FOREIGN EXCHANGE EARNINGS AND OUT GO
Rs. in Lacs
2008-09 2007-08
a) F.O.B. Value of Exports NIL Nil
b) Earning in foreign exchange NIL Nil
c) Foreign Exchange out go - Travelling NIL Nil
CONSERVATION OF ENERGY
As the products manufactured by the Company do not fall in the list of
industries announced by the Government of India, the information
required to be furnished in the prescribed Form A is not required
to be given and as such the same is not furnished herewith.
TECHNOLOGY ABSORPTION RESEARCH & DEVELOPMENT
Particular of Technology Absorption
Research and Development in Form B Nil
EMPLOYEES
As there have been no employees during the year under review who were
paid remuneration of Rs. 24,00,000 per annum or more, if employed
through out the year or Rs. 2,00,000/- per month and more, if employed
for the part of the year the information as required Under Section 217
(2A) of the Companies Act 1956 is thus not called for.
ACKNOWLEDGEMENT
Your Directors wish to express their gratitude to the Banks, Employees
as well as Customers for their timely help in smooth functioning of
your Company. Your Directors also extend their thanks to all the
Shareholders of the Company for their trust and confidence in the Board
of Directors of the Company.
By order of the Board of Directors
BIHARIJI ISPAT UDYOG LIMITED
(K.IvLPAI) (N.K s1jREKA )
DIRECTOR MANAGING DIRECTOR
602, Chiranjiv Tower,
43, Nehru Place,
New Delhi - 110 019
Date: 2th Sepetmber, 2009
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