Bharat Bijlee

The Directors have pleasure in presenting herewith the 61st Annual
 Report of the Company together with Audited Accounts for the year ended
 31st March, 2008.
 
 FINANCIAL RESULTS
                                              Year ended     Year ended
                                              31st March,    31st March,
                                                    2008           2007
                                                  Rupees         Rupees
                                                in lakhs       in lakhs
 
 Sales & Service                                63789.81       53600.79
 Less: Excise Duty                               7550.49        6614.78
                                                56239.32       46986.01
 Other Income                                     336.26         453.51
                                                56575.58       47439.52
 Profit before Interest
 & Financial Charges,
 Depreciation, Exceptional Items and Tax        11822.51        9287.47
 Less: Interest & Financial
 Charges                                          261.11         529,45
 Less: Depreciation                               392.68         293.34
 Profit before Exceptional
 Items & Tax                                    11168.72        8464.68
 Add: Exceptional Items                              0.0        (144.48)
 Profit before Tax                              11168.72        8320.20
 Less: Provision for Taxes                       3840.12        2812.65
 Profit after Tax                                7328.60        5507.55
 Short(-)/Excess Provision of
 Tax for earlier years                            (79.42)          0.50
 Profit after Taxation                           7249.18        5508.05
 Add: Profit Brought Forward
 from previous year                              1597.71        1742.67
 Profit available for
 Appropriation                                   8846.89        7250.72
 APPROPRIATION:
 Proposed Equity Dividend                        1695.47        1412.89
 Tax on proposed Equity
 Dividend                                         288.14         240.12
 General Reserve                                 5500.00        4000.00
 Profit Carried Forward                          1363.28        1597.71
 
 Previous years figures have been regrouped for comparison purposes
 with current years presentation.
 
 DIVIDEND
 
 The Directors recommend a dividend of Rs. 30 per equity share of face
 value of Rs. 10/- each for the year ended 31st March, 2008 on 56,51,560
 equity shares. The dividend payout, including dividend tax of Rs.
 288.14 lakhs will be Rs, 1983.61 lakhs as compared to Rs. 1653.01 lakhs
 in the previous year,
 
 OPERATIONS
 
 Despite a variety of challenges your Company was once again able to
 deliver significant improvements in performance, and to strengthen its
 competitive position in the market place.
 
 During the year under review, revenue from Sales and Services increased
 by Rs. 101.89 crores from Rs. 536.01 crores in the previous year to Rs.
 637.89 crores recording a growth of 19%. PBT before exceptional items
 grew from Rs. 84.65 crores to Rs. Ill .69 crores, and PAT by 32% from
 Rs. 55,08 crores to Rs. 72.49 crores. Increased sales volumes, a richer
 product mix, and continued focus on improving the productivity of all
 resources, contributed to these results and were able to partially
 mitigate onerous increases in input costs.
 
 Orders obtained during the year amounted to Rs. 629 crores compared to
 Rs, 579 crores in the previous year, an increase of Rs. 50 crores.
 
 Earnings per share (face value Rs. 10/-) increased from Rs. 97.46 to
 Rs. 128.27.
 
 EXPANSION IN TRANSFORMER AND MOTOR PLANTS AT KALWE
 
 The Company has ongoing investments for the manufacture and testing of
 large motors, specifically catering to high-growth market segments in
 higher frame sizes and output ratings. Capacity expansion of the
 transformer plant is per schedule, and full capacity of 11,000 MVA is
 expected to be available for production from August 2008.
 
 NEW PRODUCT LINES
 
 The Companys technology transfer Agreement with Permanent Magnets SA„
 Spain, has enabled it to be the first manufacturer in India of
 synchronous permanent magnet gearless machines for elevators, including
 those without machine rooms. These machines use revolutionary
 technology and offer significant advantages in Compactness, energy
 efficiency, con-trollability and low noise to elevator manufacturers
 and their customers.
 
 The Company has also entered into an exclusive distributorship and
 service agreement with K.E.B. of Germany for A.C, variable speed
 drives, These drive systems enable precise positioning, control,
 starting and stopping of complex machinery in customized
 configurations, and have significant synergies with the electric motors
 business,
 
 AWARDS AND RECOGNITION
 
 In November 2007, the Company was recognised by Forbes Asia, with the
 award Best Under a Billion, as one of a select list of 200 small and
 mid-sized companies in Asia, with a special honour under the category
 of Return on Investment.
 
 The Company was also awarded a Certificate of Appreciation for best
 stall in its category at ELECRAMA 2008, an international trade fair in
 Mumbai organized by IEEMA.
 
 SIGNIFICANT INITIATIVES
 
 The Company is in the process of an enterprise- wide business process
 re-engineering initiative as a precursor to a comprehensive
 implementation of SAPs ERP across the organization.
 
 A parallel initiative to strengthen and sharpen the Companys Risk
 Management Processes and to evolve and implement a robust Risk
 Management framework is also under way.
 
 Both these initiatives are being guided by inter- nationally reputed
 consulting firms and are Intended to enhance the Companys decision
 making capa- bilities, to meet the challenges of a dynamic and
 competitive business environment, and to facilitate a structured
 approach to risk mitigation.
 
 FINANCE
 
 For substantial periods during the year bank borrowings for working
 capital were nil or negative. Consequently, interest cost remained at
 0,41% of sales despite increased operational volumes and the CAPEX of
 Rs, 25. crores. There is an ongoing focus on working capital control
 and on releasing cash from operations.
 
 ICRA Limited has assigned the Company a rating of LAA, indicating
 high-credit-quality on a long term scale; and Al +, indicating the
 highest-credit-quality on a short term scale, to borrowing limits
 extended by banks to the Company,
 
 As on 31st March, 2008, the Company had Fixed Deposits aggregating to
 Rs. 1229.56 lakhs. Out of the Fixed Deposits which matured for payment
 prior to 31st March, 2008, 44 deposits aggregating to Rs. 6.02 lakhs
 were neither renewed nor claimed till 31st March, 2008. Of these 5
 deposits aggregating to Rs. 1.10 lakhs have since been renewed or
 refunded on receipt of requests from the deposit holders. The balance
 of 39 deposits aggregating to Rs, 4,92 lakhs have neither been claimed
 nor renewed till date of this Report, inspite of the Companys
 intimation to the deposit holders. There has been no default or delay
 in meeting any maturity payment obligations,
 
 HUMAN RESOURCES
 
 An adverse side-effect of the countrys economic growth has been the
 impaired availability of experi- enced technical personnel across
 sectors. Despite these challenges, the Company has taken steps to
 motivate its team of talent and to consciously upgrade work
 environments and facilities through structured initiatives.
 
 Employee relations across the Company continued to be very cordial and
 issues were settled amicably with the Union.
 
 Productivity levels continue to be subject to continuous monitoring,
 
 The employee strength as on 31st March, 2008 was 1300 compared to 1170
 in the previous year.
 
 CORPORATE GOVERNANCE
 
 A separate report on Corporate Governance along with Auditors
 Certificate on its compliance, is set out in Annexure A.
 
 DIRECTORS RESPONSIBILITY STATEMENT
 
 Pursuant to Section 217 (2AA) of the Companies
 
 Act, 1956, the Directors confirm that :
 
 (i) In the preparation of Annual Accounts, the applicable accounting
 standards have been followed along with proper explanations relating to
 material departures,
 
 (ii) The Directors have 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 of the state of affairs
 of the Company at the end of the financial year 31st March, 2008, and
 the profit for that period.
 
 (iii) Directors have taken proper and sufficient care for maintenance
 of adequate accounting records in accordance with provisions of the
 Companies Act, 1956, for safeguarding of assets of the Company and for
 preventing and detecting frauds and other irregularities.
 
 (iv) The Directors have prepared Annual Accounts on going concern
 basis,
 
 DIRECTORS
 
 Mr. Anand J. Danani, Mr. Bansi S. Mehta, and Mr. Jaisingh R. Danani
 retire by rotation at the ensuing Annual General Meeting and being
 eligible offer themselves for reappointment,
 
 Information on the Directors eligible for reappointment as required
 under Clause 49 of the Listing Agreement with Stock Exchanges is
 disclosed in the profiles of the Directors under Item Nos. 3, 4 and 5
 forming part of the Notice dated 9th May, 2008 circulated along with
 the Annual Report 2008,
 
 AUDITORS
 
 M/s. Dalai & Shah, Auditors of the Company, retire at the ensuing
 Annual General Meeting, and being eligible offer themselves for
 reappointment, This item of business is covered under Item 6 of the
 accompanying notice,
 
 COST AUDITORS
 
 M/s. R M. Nanabhoy & Co. has been appointed by the Board as Cost
 Auditors of the Company, for electric motors, for the Financial Year
 ending 31st March, 2009, subject to the approval of the Central
 Government.
 
 PARTICULARS OF EMPLOYEES
 
 The information required under Section 217 (2A) of the Companies Act,
 1956, read with Companys (Particulars of Employees) Rules, 1975, and
 forming part of this Report, are annexed to this Report. However, as
 per the provisions of Section 219 (l)(iv) of the Companies Act, 1956,
 the Report and Accounts are being sent to all shareholders of the
 Company, excluding the Statement of Particulars of Employees. Any
 shareholder interested in the Particulars of Employees, may write to
 the Company Secretary at the Registered Office of the Company for a
 copy of the Statement.
 
 Additional information as required by Department of Companies Affairs
 is presented on Page 11 of this Annual Report.
 
 APPRECIATION
 
 The Board of Directors place on record their sincere appreciation for
 the dedicated efforts, good understanding and support, and valuable
 contributions made by all our employees in achieving the excellent
 results for the year, They also wish to sincerely thank shareholders,
 customers, financiers and deposit holders for their support, good
 wishes and encouragement.
 
                            For and on behalf of the Board of Directors
 
                                                BANSI S. MEHTA
                                                Chairman 
 Date: 9th May, 2008