Prominent Notes: - Securities and Exchange Board of India

In the New Project we are adopting latest open die forging technology. This will enable us to
reduce our material input by doing the forgings with close tolerances. Further, the new
technology is fully automatic and will siginificantly reduce the manpower requirements. With
the help of this technology we can control the reduction ratio of materials which will help us
in meeting critical grain-size requirements. The implementation of SAP-ERP System has
helped us on various counts; to name a few, cost control, optimal use of resources, successful
tracking of material etc. Further, we have deployed CNC operated machines and wellcalibrated
instruments which add to the quality of our products.
In our New Project, we are acquiring critical machineries such as Manipulator and Forging
Press from reputed international suppliers to ensure high quality and productivity. The
specifications for these critical machineries are sufficiently advanced in technology and for the
purpose intended. The plant and machineries selected have adequate capability to offer good
process control, which can deliver good quality consistently.
7. Government Policies
Our major user industries comprise of Oil & Gas, Wind Energy, Power, Defence,
Shipbuilding etc. These industries are capital intensive and considered to be sensitive sectors
in the economy and are therefore subject to several government regulations. For instance,
power and oil sector in India are largely guided by the government policies in this regard. So
also, Defence is entirely within the domain of government policy. Growth of industries
particularly in these segments would be strongly influenced by the nature of policies adopted
by incumbent governments. Favourable policies will nurture growth and usher in fresh
investments whereas unfavourable policies would lead to stagnation and eventual flight of
capital from the affected industry.
DISCUSSION ON THE RESULTS OF OPERATIONS
The following discussion on the financial operations and performance is based on our restated
consolidated financial statements for the FY 2009-10, 2008-09, 2007-08 and 2006-07. The same should
be read in conjunction with the restated consolidated audited financial results of our Company for the
years ended 31 March 2010, 2009, 2008 and 2007.
The financial figures for standalone and consolidated differ only in 2009-10 and 2008-09 since the
company has only one subsidiary which was formed in 2008-09. There is no difference in standalone
and consolidated accounts of the company during year 2006-07 and 2007-08.
Particulars
Incomes
Sales :
a. Of products
manufactured by
The summary statement of Profit & Loss Account, as restated is as under:
2007-08
% of
Total
Income
the Company 1952.41 81.79
For the year ended March 31st
2008-
09
% of
Total
Income 2009-10
209
% of
Total
Income
For the
period
Ended
December
31, 2011
(` in Lacs)
% of
Total
Income
2583.3
1 87.49 2529.22 87.52 2257.09 77
b. Scrap Sale
Income 266.13 11.15 239.81 8.12 242.10 8.38 300.94 10
c. Sale of Power
Generation 2.19 0.09 17.19 0.58 26.97 0.93 17.24 1