BF Utilities

The Directors have pleasure in presenting their Eighth Annual Report on
 the business and operations of the Company together with Audited
 Statement of Accounts for the year ended 30th September, 2008.
 
 1.  FINANCIAL HIGHLIGHTS :
 
                                                    (Rs. in Million)
                                               Year          Year
                                               ended         ended
                                             30th Sept.,   30th Sept.,
                                               2008           2007
 
 Sales                                        194.50        295.23
 Other Income                                  81.96         30.24
 Profit before Interest
 and Depreciation                             173.19        233.14
 Less : Interest                               59.03         24.36
 Depreciation                                  61.26         61.26
 Profit/(Loss) before tax                      52.90        147.52
 Provision for Taxation
 a) Current Tax                                 6.50         19.80
 b) Deferred Tax (Credit)                          0          2.39
 c) Fringe Benefit Tax                          0.13          0.51
 Net Profit/(Loss)                             46.27        124.82
 Balance of Profit/(Loss)
 from previous year                            56.26        (68.56)
 Surplus retained in Profit &
 Loss Account                                 102.53         56.26
 
 For the year ended 30th September, 2008, your Company achieved a total
 sales of Rs.194.50 Million (previous year Rs. 295.23 Million) and the
 Company has earned a Profit of Rs.52.90 Million (previous year profit
 of Rs.147.52 Million).
 
 2.  DIVIDEND :
 
 Your Directors do not recommend any dividend on the equity shares for
 the year ended 30th September, 2008.
 
 3.  CONSOLIDATED FINANCIAL STATEMENTS : Pursuant to Clause 32 of the
 Listing Agreement with the Stock Exchanges, read with the applicable
 Accounting Standards, issued by the Institute of Chartered Accountants
 of India, financial statements relating to Subsidiaries, investments in
 Associates and investments in Joint ventures, as defined under the said
 Standards, are merged with the Accounts of the Company and the
 Consolidated Financial Statements are attached to these Account. The
 details are given under Note L to the said Consolidated Financial
 Statements.
 
 4.  SUBSIDIARIES :
 
 In terms of the approval granted by the Government of India, Ministry
 of Company Affairs under Section 21 2(8) of the Companies Act, 1 956,
 copies of the Balance Sheet, Profit and Loss Account, Directors Report
 and the Report of the Auditors of the Wholly Owned Subsidiary Companies
 viz. Bhalchandra Investment Limited, Mundhwa Investment Limited, Forge
 Investment Limited, Jalakamal Investment & Finance Limited and
 Jalakumbhi Investment & Finance Limited and Indirect Subsidiaries viz.
 Kalyani Utilities Development Limited and Nandi Infrastructure Corridor
 Enterprises Limited have not been attached with the Accounts of the
 Company.  The Company will make available these documents/ details upon
 request made by any shareholder of the Company interested in obtaining
 the same and the same can also be inspected at the Registered Office of
 the Company. Pursuant to the Approval, a statement of the summarised
 financials of all the subsidiaries is attached along with the
 Consolidated Financial Statements. Pursuant to Accounting Standard
 (AS)-21 issued by the Institute of Chartered Accountants of India,
 Consolidated Financial Statements presented by the Company includes the
 financial information of its Wholly Owned Subsidiaries and its Indirect
 Subsidiaries.
 
 5.  PARTICULARS OF EMPLOYEES :
 
 The information required under the provision of Section 217(2A) the
 Companies Act, 1 956, read with Companies (Particulars of Employees)
 Rules, 1975, and forming part of the report is annexed hereto.
 
 6.  CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
 EARNINGS AND OUTGO :
 
 The additional information required under the provisions of Section
 217(l)(e) of the Companies Act, 1956 read with Companies (Disclosure of
 Particulars in the Report of the Board of Directors) Rules, 1988, and
 forming part of the Report is reproduced hereunder :
 
 I. CONSERVATION OF ENERGY : Since the Company is in the business of
 Generation of Power through non-conventional sources, this part is not
 applicable.
 
 II.  TECHNOLOGY ABSORPTION :
 
 1.  Research and development (R&D) :
 
 The company continuously conducts R&D activities in-house using the
 existing manpower and other resources on continuous basis. The capital
 and recurring expenses on R&D activities is not separately identified.
 
 2.  Technology Absorption, Adaptation and Innovation :
 
 The Company has not imported any technology.
 
 III.  FOREIGN EXCHANGE EARNINGS AND OUTGO : Total Foreign Exchange Used
 and Earned :
 
 Used : Rs. 205,359/-.
 
 Earned : Rs. 18,279,804/-.
 
 7.  DIRECTORS :
 
 In accordance with the provisions of the Companies Act, 1956 and the
 Articles of Association of the Company, Mr. A. B. KALYANI and Mr. G. K.
 Agarwal, Directors of the Company, retire by rotation at the ensuing
 Annual General Meeting and, being eligible, they offer themselves for
 re-appointment.
 
 8.  DIRECTORS RESPONSIBILITY STATEMENT :
 
 Pursuant to the requirement under Section 21 7(2AA) of the Companies
 Act, 1956, with respect to Directors Responsibility Statement, it is
 hereby confirmed :
 
 (i) That in the preparation of the accounts for the financial year
 ended 30th September, 2008, the applicable accounting standards have
 been followed along with proper explanation relating to material
 departures ;
 
 (ii) That the Directors have selected such accounting policies and
 applied them consistently and made judgements and estimates that were
 reasonable and prudent so as to give a true and fair view of the state
 of affairs of the Company at the end of the financial year and of the
 profit or loss of the company for the year under review ;
 
 (iii) That the Directors have taken proper and sufficient care for the
 maintenance of adequate accounting records in accordance with
 provisions of the Companies Act, 1956 for safeguarding the assets of
 the Company and for preventing and detecting fraud and other
 irregularities ;
 
 (iv) That the Directors have prepared the annual accounts for the
 financial year ended 30th September, 2008 on a going concern basis.
 
 9.  AUDITORS :
 
 You are requested to re-appoint Auditors for the current year to hold
 the office from the conclusion of the ensuing Annual General Meeting
 until the conclusion of the next Annual General Meeting.
 
 Your directors wish to place on record their appreciation for the
 positive co-operation received from the Central Government, Government
 of Maharashtra, Financial Institutions and the Bankers.  The directors
 also wish to place on record their appreciation of the unstinted
 efforts and contributions made by the Management Team and the employees
 of the Company at all levels.
 
 The Directors express their special thanks to Mr. B.  N. Kalyani,
 Chairman for his untiring efforts for the progress of the Company.
 
                            For and on behalf of the Board of Directors
 
                                                PUNE B. N. KALYANI
 Dated : 27th December, 2008                          Chairman