Byco Limited

Contents
Corporate Objectives & Policies 05 Vision / Mission 05 Corporate Strategy / Quality Policy 05 Safety, Health & Environment 06 Statement of Ethics & Business Practices 07 Core Values General Information 09 Company Information 10 Board of Directors 12 Directors Profile 13 Board Committees 14 Management Committees 15 Organization Structure 16 Company Profile 18 Customers & Product Range Communication with Shareholders 21 Shareholders Information 22 Notice of Annual General Meeting Stakeholders Information 25 Application of Revenue 26 Vertical Analysis 27 Horizontal Analysis 28 Decade at a Glance 30 Graphical Illustration 32 Statement of Value Added & its Distribution Corporate & Financial Reporting 35 Chairmans Review 37 Directors Report 43 Statement of Compliance of Code of Corporate Governance 45 Review Report on Compliance of Code of Corporate Governance 46 Auditors Report to the Members 47 Financial Statements 47 Balance Sheet 48 Profit and Loss Account 49 Statement of Comprehensive Income 50 Cash Flow Statement 51 Statement of Changes in Equity 52 Notes to the Financial Statements 76 Pattern of Shareholding Form of Proxy
In 2010, BCL enjoyed its best operating year in company history delivering record production, sales and earnings. During the year we significantly improved operational performance and added high quality businesses to the Company. We enter 2011 with even more robust businesses, a healthy balance sheet and significant opportunities for future growth. We have the financial flexibility to fund organic growth and remain confident of delivering further progress in 2011.
results were proud of...

Production
16,069metric ton up 12%

Sales Revenue
1,708million up 6%
Rs.
Gross Profit
240million up 46%
Rs.
Pre-Tax Profit
126million up 137%
Rs.
Earnings Per Share
8.66 up 150%
Rs.
Corporate Objectives & Policies

05 Vision / Mission 05 Corporate Strategy / Quality Policy 05 Safety, Health & Environment 06 Statement of Ethics & Business Practices 07 Core Values
Vision / Mission Corporate Strategy / Quality Policy Safety, Health & Environment
Vision
To be a player in the global market by providing high quality foundry based engineering products.
Safety
> The management of Bolan Castings Limited believes that the safety and welfare of its employees is of paramount importance. We believe that all industrial injuries can be prevented. Each individual employee is responsible for working safely, both for his own welfare, and for the safety and welfare of his fellow employees. We believe that production is not so important that time cannot be taken to find a safe way to do our work.
> >
Mission
To be market leader in foundry technology by offering competitive high quality value added products to the satisfaction of customers and to grow through diversification in local and export markets, while serving the best interest of shareholders. >
Health
> > > > Good health of employees is very important to Bolan Castings Limited. All employees of Bolan Castings Limited go through an annual medical check up. Bolan Castings Limited has a clinic at the plant site which provides medical facilities for its employees. All employees are insured under Group Life and Health Insurance Scheme.
Corporate Strategy
Bolan Castings Limited will remain proactive in combating all threats and make use of all opportunities to improve the productivity, profitability and for achieving its immediate goals and ultimate mission.
Environment Quality Policy

We will pursue and continuously improve our quality management systems so as to consistently meet the expectations of our customers and other stakeholders, operate safely and encourage our employees to develop and grow. > > > Bolan Castings Limited is making all out efforts to ensure that it takes care of the environment. Continued efforts are made so that the Company's plant operational activities are environment friendly. The Company is committed to improve the environment and is currently working to achieve the environmental standards.
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Annual Report 2010
Statement of Ethics & Business Practices
Every Director and employee of Bolan Castings Limited believes and is committed to adopt fair means to perform all business activities, based on good moral values, which are generally acceptable on social, business and economic grounds. Their conduct shall be based on and committed to integrity, objectivity, professional competence, due care, confidentiality, professional behaviour and technical standards. Purpose and Value of Business Manufacturer of castings of tractor parts, automotive parts, engineering and other that conform to the specified standards. Employees Recruitment of personnel on merit, offering training, career development, equal opportunities of growth, no discrimination or harassment and reward for achievement. Improved working conditions, ensuring safety, security and health. Customer Relation Ensure customer satisfaction by providing quality product at competitive prices. Society / Community Shareholders, Financial Institutions & Creditors Protection of investment made in the Company and appropriate return on money lent/invested. Achievement and prospects to be timely and accurately communicated. Supplies Prompt settling of bills, coordination and cooperation to achieve quality and efficiency. No bribery or excess hospitality to be accepted or given. Compliance with the spirit of laws, timely payment of Government taxes and dues thereby contributing for uplift of society and extending training including other appropriate activities for uplift of community. General The Company neither support any political party nor contribute funds to groups or associations whose activities promote political interests.
Bolan Castings Limited 06
Core Values
1.
Ethics & Integrity We do care how results are achieved and will demonstrate honest and ethical behaviour in all our activities. Choosing the course of highest integrity is our intent and we will establish and maintain the highest professional and personal standards.
Ethics Integrity Innovation
2.
Innovation Innovation is critical to our success. Our workplace must be an environment where creativity and new ideas have the ability to reach their full potential. We welcome new challenges as opportunities for growth.
Excellence
BCL
Customer Focus
3.
Excellence We are committed to excellence in every aspect of our activities. Each one of us must make maximum efforts to provide a quality product that responds to our customers need. Our products must meet and exceed competition. Rather than asking "is it good enough?", we must ask, "how can we do it better?". The quality of everything we do reflects on us and is essential for maintaining long-term relationships with our stakeholders.
Responsiblity
Team Work
Mutual Respect
4.
Customer Focus We are a customer-driven organization and believe that customer satisfaction is our strength and motivates us to grow.
5.
Responsibility We will manage our affairs in a highly responsible manner by ensuring that we take care of the environment, are a good corporate citizen, ensure complete satisfaction of our customers through quality and timely delivery of our products.
7.
Mutual Respect We have respect for all stakeholders of our business which includes our customers, suppliers, contractors, regulators, shareholders, our families and one other. We care about the professional and personal well being of each member of Bolan Castings Limited. People are our greatest asset and we will strive to exhibit care, concern and interest in those with whom we work and with whom we do business. Our work environment respects individual talents and provides opportunities for training, leadership development, professional growth and financial reward. A secure, highly motivated, and well-trained workforce will thrive and meet the challenges set by our customers.
Annual Report 2010
6.
Teamwork We put a lot of emphasis on team work by recognizing that we will achieve more through teamwork. We feel that operational excellence will be achieved by working together as a team and diligently performing tasks in an exceptional manner.
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General Information
09 Company Information 10 Board of Directors 12 Directors Profile 13 Board Committees 14 Management Committees 15 Organization Structure 16 Company Profile 18 Customers & Product Range
General Information
Company Information
Board of Directors Mr. Sikandar M. Khan Mr. Shahid A. Hakim Mr. Latif Khalid Hashmi Mr. Sohail Bashir Rana Mr. Laeeq Uddin Ansari Mr. Mian Muhammad Saleem Mr. Javed Munir Mr. Mujtaba Ahmed Mr. Muhammad Imran Rafiq Mr. M. Mushtaq Akhtar Mr. Faisal Lakhani Mr. Saqib Hanif M/s. Ernst & Young Ford Rhodes Sidat Hyder. M/s. Walker Martineau Saleem Habib Bank Limited MCB Bank Limited Royal Bank of Scotland Bank AlFalah Limited Dubai Islamic Bank JS Bank Limited Soneri Bank Limited Faysal Bank Limited M/s. Central Depository Company of Pakistan Ltd. CDC House, 99-B, Block-B, S.M.C.H.S. Main Shahrah-e-Faisal, Karachi Tel: +92-800-23275 Fax: +92-21-34326053 Main RCD Highway, Hub Chowki, District Lasbela, Balochistan, Pakistan Tel : +92-853-363293,363296 Fax : +92-853-363292 E-mail: bclhub@bclpk.com F-1, Hub River Road, S.l.T.E., Karachi Tel : +92-21-32579681, 32579819 Fax : +92-21-32573558 E-mail: bclho@bclpk.com www.bolancastings.com Chairman Chief Executive Director Director Director Director Director Director Director (NIT Nominee)
Company Secretary Chief Financial Officer Head of Internal Audit Auditors
Chartered Accountants Advocates & Legal Consultants
Legal Advisors Bankers
Share Registrar
Annual Report 2010
Factory & Registered Office
Head Office
Web Site
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General Information
Board of Directors
Mr. Javed Munir
Mr. Sohail Bashir Rana
Mr. Latif Khalid Hashmi
Mr. Sikandar M. Khan

Chairman
10
General Information
Board of Directors
Mr. Shahid A. Hakim

Chief Executive
Mr. Laeeq Uddin Ansari
Mr. Mian Muhammad Saleem
Mr. Mujtaba Ahmed
Mr. Muhammad Imran Rafiq
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General Information
Directors Profile
Name Title Appointment Committee membership External appointments
Mr. Sikandar M. Khan Chairman / Non Executive Director July 03, 1984 Chairman of Board's Committee for Supervision and Business Strategy Committee Chairman of Millat Tractors Ltd., Millat Equipment Ltd., Millat Industrial Products Ltd., Millat Automobile Ltd. and Director of Arabian Sea Country Club, Business Support Fund, The Pakistan Business Council, National Productivity Organization, National Vocational and Technical Education Commission, Habib Bank Limited Mr. Latif Khalid Hashmi Non Executive Director June 13, 1993 Member of Audit Committee and Board's Committee for Supervision Director of Millat Tractors Ltd., Millat Equipment Ltd., Millat Industrial Products Ltd., Millat Automobile Ltd. Mr. Laeeq Uddin Ansari Non Executive Director June 13, 1993 Chairman of Audit Committee and Member of Board's Committee for Supervision and Business Strategy Committee. Chief Executive of Millat Tractors Ltd. and Director of Millat Equipment Ltd., Millat Industrial Products Ltd., Millat Automobile Ltd., Engineers Technology Integrators Manufacturers and Asset Developers (Pvt.)Ltd., CTO 24/7 (Pvt.) Ltd. Mr. Javed Munir Non Executive Director February 22, 2005 No committee membership. Chief Financial Officer of Millat Tractors Ltd. and Director of Millat Equipment Ltd. Mr. Sajid Hassan Non Executive Director (NIT Nominee) From April 27, 2007 to July 30, 2010 Member of Audit Committee till July 30, 2010 Director of Shahmurad Sugar Mills Ltd.
Name Title Appointment Committee membership External appointments Name Title Appointment Committee membership External appointments
Mr. Shahid A. Hakim Chief Executive Officer December 08, 2006 Chairman of System and Technology Committee and Human Resources Committee and Member of Business Strategy Committee Currently no external appointment.
Mr. Sohail Bashir Rana Non Executive Director June 13, 1993 No committee membership. Director of Millat Tractors Ltd., Millat Equipment Ltd., Millat Industrial Products Ltd., Millat Automobile Ltd., Agri Mall (Pvt.) Ltd. Mr. Mian Muhammad Saleem Non Executive Director June 13, 1993 Member of Audit Committee and Board's Committee for Supervision Director of Millat Tractors Ltd., Millat Equipment Ltd., Millat Industrial Products Ltd., Millat Automobile Ltd. Mr. Mujtaba Ahmed Executive Director October 28, 2009 Member of Business Strategy Committee and Human Resources Committee Currently no external appointment
Name Title Appointment Committee membership External appointments
Name Title Appointment Committee membership External appointments Name Title Tenure Committee membership External appointments
Mr. Muhammad Imran Rafiq Non Executive Director (NIT Nominee) Co-opted as Director in place of Mr. Sajid Hassan w.e.f. July 30, 2010 Member of Audit Committee w.e.f. September 15, 2010. Head of Research Department of National Investment Trust Ltd. and Director of Hashmi Can Co. Ltd., Johnson & Phillips (Pakistan) Ltd.
General Information
Board Committees
Audit Committee Composition of Committee Chairman Mr. Laeeq Uddin Ansari

Non-Executive Director
Meetings Attended
> To ascertain that financial and operating controls and accounting reporting systems are adequate and effective. > To review the statement on internal control system before endorsement by the Board. > To determine the compliance of applicable statutory requirements and shall also monitor compliance of Code of Corporate Governance to identify the significant violations. > To institute special projects, other reviews and tasks as the Board shall delegate to it, from time to time, by consulting CEO and referring external auditors and other external bodies. Board's Committee for Supervision (BCS) Composition of Committee Chairman Mr. Sikandar M. Khan Members Mr. Latif Khalid Hashmi Mr. Laeeq Uddin Ansari Mr. Mian Muhammad Saleem Terms of Reference Terms of Reference of Board's Committee for Supervision (BCS) are as follows: > To provide a forum for the Company's Senior Executives to contribute to planning the strategic direction of the Company. > To review and monitor the periodic operating activities regarding technical, financial and administrative aspects of the Company, against budget, forecasts and previous year on monthly basis. > To ensure implementation of strategy, the corporate plan, policies and procedures. > To ensure successful achievement of objectives of the Company. > To ensure active co-ordination, cooperation and communication between all departments of the Company. > To review the organizational structure of the Company and making recommendations for change.
Chairman /Non-Executive Director
3 of 4
Members Mr. Latif Khalid Hashmi

Non-Executive Director Non-Executive Director
Mr. Mian Muhammad Saleem Mr. Sajid Hassan*
3 of 4 2 of 4 3 of 4
Non-Executive Director
Mr. Muhammad Imran Rafiq, Non-Executive Director, has been appointed as Member Audit Committee in place of Mr. Sajid Hassan w.e.f. September 15, 2010.
Terms of Reference Terms of Reference of Audit Committee are as follows: > To make recommendations to the Board on the appointment of external auditors, the audit fee, any question of resignation or removal and provision of any service by the external auditors in addition to audit. > To determine the measures to safeguards the assets of the Company. > To review, before submission to the Board, quarterly, half yearly and annual financial statements and related announcements to be issued by the Company. This renders focusing on significant items like material adjustments resulting from audit, going concern assumption, major judgmental areas, changes in accounting polices and practices and compliance of accounting standard, listing regulations and statutory requirements. > To facilitate the external audit, ensure coordination between external and internal auditors and discuss observations raised by the external auditors and management letter issued by them alongwith response of management. > To review scope and extent of internal audit and shall ensure that internal audit is adequately resourced and appropriately placed within the Company. > To consider major findings of internal investigations and management's response.
Non-Executive Director Non-Executive Director Non-Executive Director
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Annual Report 2010
General Information
Management Committees
Business Strategy Committee Composition of Committee Chairman Mr. Sikandar M. Khan Members Mr. Laeeq Uddin Ansari Mr. Shahid A. Hakim Mr. Mujtaba Ahmed Responsibilities The Business Strategy Committee assists Board of Directors in devising short term and long term business plans and suggests strategies for achievement of organizational objectives.
System and Technology Committee Composition of Committee Chairman Mr. Shahid A. Hakim Members Mr. Sirajuddin Khan Mr. Faisal Lakhani Mr. Aamir Hashmi Responsibilities Systems provide solid base for any type of success. This Committee assists Board of Directors in formulating, implementing and upgrading systems of all types in the Company.
Human Resources Committee Composition of Committee Chairman Mr. Shahid A. Hakim Members Mr. Mujtaba Ahmed Mr. M. Mushtaq Akhtar Mr. Abdul Qadir Lasi Responsibilities The Human Resources Committee assists Board of Directors in: a) Formulating plans, procedures on manpower induction, fixation and payments of salaries, wages, allowances, retirement benefits, disciplinary activities, rewards and punishments, service rules and Labour-Management relationships. b) Periodic training arrangements. c) Devising hierarchy of management.
General Information
Organization Structure
Chairman / Board
Audit Committee
Internal Audit
Finance
I. T. H.O. Admin
Corporate Affairs H.R. Materials Management
Stores
Process Inspection Final Casting Control Laboratory
Chief Executive Officer
Quality Management
Admin & LW
Marketing
Annual Report 2010
Foundry Dy. CEO Engineering
Maintenance
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General Information
Company Profile
INTRODUCTION Being a modern and well equipped foundry and holding a major market share of the tractor and automotive castings, Bolan Castings Limited can rightly claim to be the leading foundry of its kind in Pakistan. The Company was incorporated on 15th July, 1982 as a public limited company by Pakistan Automobile Corporation Limited (PACO) under the administrative control of Ministry of Production, Government of Pakistan. The plant was commissioned in June 1986 with the assistance of Foundry Management & Design Company (FMD), United Kingdom (U.K) and commercial production was started in July, 1986. The plant is located about 40 Kms from Karachi on the main R.C.D. Highway, Hub Chowki, District Lasbella, Balochistan. The Company was privatised and handed over to a group of management under a joint collaboration of Millat Tractors Limited and the employees of Bolan Castings Limited on 13th June, 1993. FOUNDRY The foundry is located at Hub, Balochistan on a 100,000 square meters plot with a covered area of approximately 20,000 square meters. The foundry is manufacturing tractor castings such as cylinder blocks, cylinder heads, centre housings, transmission cases and truck / bus castings like brake drums and hubs with a large number of other similar castings. The plant produces more than 16,000 tons per year of tractor / automotive castings in grey and ductile iron. So far, more than 200 different types of castings have been successfully developed and supplied to various customers. PRODUCTION FACILITIES The foundry has: > Duplex melting facilities consisting of Twin Cold Blast Cupolas and Coreless Induction Furnaces. Induction melting through two 1.5 tons furnaces.
> One high pressure line of 1150 x 800 x 300 / 300 mm box size. > Another high pressure moulding line of 650 x 550 x 250 / 250 mm box size. > New Sand Preconditioning Plants. > Resin Coating Plant Continuous Mixer, Shell Core Machines, Silicate / CO2 Core Machines, Cold Box Core Machine. > Shot blasting, fetling, grinding, heat treatment and painting. > Complete inspection, testing and quality control laboratory equipments including spectrometer. > A 60 tons / hr fully computerised sand plant which on demand automatically delivers predetermined sand mixes to the moulding line. > A separate shop for the repair and maintenance of patterns, tooling and core boxes through CAD / CAM process. > An ancillary workshop for the fabrication and maintenance of equipment and tools. RESEARCH & DEVELOPMENT Experimentation and innovative studies are constantly undertaken for both manufacturing and product improvements. Bolan Castings Limited, from the very beginning, is engaged in research, quality improvement of the products, productivity enhancement, new products development and processes improvement. POLLUTION CONTROL Maximum attention is given to reduce the air pollution through the following: > Wet sludge tank for cupola emissions. > Scrubbers for air born emission at new sand pre conditioning and core plant. > Reduction of dust emissions through bag filter closed cabin for shot blasting and sand plant.
>
General Information
Company Profile
> >
Dust catchers in grinding area. Maximum plantation at the open areas of the factory.
INDUSTRIAL & PERSONAL SAFETY The following are in place for the safety of our employees and equipments: > Effective fire fighting system, which covers all areas of the plant. Safety protective provided to the work force. Adequate sound proofing of high noise machines. Protective cover for cutting machines. Controlled admittance to production site. Flammable material adequately protected from sun and heat. All work areas sufficiently ventilated.
During the manufacturing process, rapid response systems are employed in a series of integrated checks. Finished products undergo an array of checks and inspection with appropriate techniques. Critical parts and those on which safety depends are 100% checked. Checks during manufacturing are supplemented by sample checking by metallography, spectrometry and actual chemical analysis. As a result of strict and effective quality control, high standards have been achieved and the plant is now working at almost full capacity. SUPPORT FOR FOUNDRY ENGINEERING EDUCATION To improve the level of knowledge in the field of foundry practice, BCL for the last two years is providing technical support to the students of Metallurgical Engineering and Materials Engineering of NED University of Engineering & Technology, Karachi in a planned manner. ISO CERTIFICATION Bolan Castings Limited was the first foundry of its kind to obtain ISO 9002 certificate in April, 1999. The Company has now achieved ISO 9001-2008 version of Quality Management System. FORWARD INTEGRATION In the year 1998-99, setting up of in-house machining lines for various castings of tractors and trucks was undertaken. This has resulted in a considerable boost to the Company's sales and profitability.
> > > > > >
QUALITY & INSPECTION We believe that quality and a relentless commitment to continuous improvement are essential to our success. To this end, we define quality as understanding the customers' expectations, agreeing on performance and value, and providing products and services that meet expectations. Our motto is, "We pour quality into castings." The foundry has developed a "Quality Control System" that covers inspection of the complete process from raw materials supply to the despatch of finished goods. Laboratories at the plant use equipment and techniques to check all incoming material, metallic charge, ferro alloys, sands, resins, coatings and refractories.
Annual Report 2010
BACKWARD INTEGRATION In the year 2000-2001, a CNC machining set up was added in the Pattern Shop to manufacture new pattern tooling equipments. This has reduced considerably the development time for new products.
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General Information
Customers & Product Range
CUSTOMERS Tractors . Millat Tractors Limited . AI-Ghazi Tractors Limited
Automobiles . Hino Pak Motors Ltd. . Ghandhara Nissan Ltd. . Ghandhara Industries Ltd. . Sind Engineering (Pvt.) Ltd. . Master Motors Corporation Ltd. . Adam Motors Company Ltd. . Sigma Motors (Pvt.) Ltd. Automobile Industry a. Isuzu Trucks/Buses 1. Brake drums & Hubs 2. Exhaust manifold 3. Spring pads & Brackets 4. Generator brackets 5. Fly wheel b. Dong Feng Trucks/Buses 1. Brake drums & Hubs 2. Brackets 3. Shackles c. Nissan Trucks/Buses 1. Brake drums & Hubs 2. Fan pulley 3. Shackles 4. Spring stoppers & Brackets 5. Pads d. Hino Trucks/Buses 1. Brake drums 2. Spring stoppers & Brackets 3. Bracket injection pump 4. Pulleys e. Bedford Trucks 1. Brake drums 2. Differential carrier f. Honda/Coure 1. Pulleys g. Master Trucks 1. Brake drums h. Adam Car 1. Brake drums 2. Brake discs i. Sigma Jeep 1. Brake drums
PRODUCT RANGE Tractor Industry 1a. MF Tractors 11. Cylinder block 12. Cylinder head 13. Transmission case 14. Centre housing 15. Timing gears 16. Bearing caps 17. Planetary carrier 18. Differential cases 19. Hydraulic lift cover 10. Box hydraulic 11. Oil sump 240 12. Link rocker 13. Sleeve 14. Fork clutch release 15. Axle housing 240 16. Axle housing 385 17. Oil sump 385 18. Fly wheel 240 19. Fly wheel 385 20. Front wheel hub 240 21. Front wheel hub 385 22. Front axle support 240 1b. Fiat Tractors 11. Axle casing 12. Differential case 13. Trumpet 640 14. Front axle support 15. Bearing covers 16. Trumpet cover 640 17. Trumpet 480 18. Hubs 19. Master clutch housing 10. Oil sump 480
Engineering/Others . Millat Equipment Limited . Alsons Industries . HMA Stainless Steel Pumps . Balochistan Engineering Works . Transmission Engineering . Pakistan Machine Tool Factory . Pakistan Synthetic . Noor Engineering Engineering Industry a. Pumps 1. Pump heads 2. Pump bases 3. Base plates 4. Adopter flanges 5. Pump housings 6. Suction chambers 7. Seal covers b. Wheel Rims 1. Blank holder dies 2. Forming punch dies 3. Roller dies c. Textile 1. Labyrinth seals
Pouring of Molten Metal from an Induction Furnace
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Communication with Shareholders

21 Shareholders Information 22 Notice of Annual General Meeting
Shareholders Information
Bolan Castings Limited (BCL) is committed to providing a high standard of communication to its Shareholders so that they have all information reasonably required to make informed assessments of the Company's value and prospects. Periodic Financial Reports BCL produces four Periodic Financial Reports for shareholders each year: > > > > First Quarterly Report upto 30th September Second Quarterly / Half Yearly Report upto 31st December Third Quarterly Report upto 31st March Annual Report upto 30th June.
Enquiries concerning holdings of the Company's ordinary shares, dividend payments and notification of shareholders' change of address should be referred to the Company's Shares Registrar: Shares Registrar Address: Central Depository Company of Pakistan Limited, CDC House, 99-B, Block-B, S.M.C.H.S., Main Shahrah-e-Faisal, Karachi-74400. Tel: Customer Support Services (Toll Free) 0800-CDCPL (23275) Fax: (92-21) 34326053 Email: info@cdcpak.com Website: www.cdcpakistan.com Web Presence A wide range of information about BCL is available at Company's website, www.bolancastings.com. The website has general information about the Company and details of its product range. The quarterly and annual reports of the Company are also posted on this site. Price Ranges Quarterly price ranges of BCL shares on the Karachi Stock Exchange, the principal market in which the stock is traded, were; 2010 Quarter First (July-Sep) Second (Oct-Dec) Third (Jan-Mar) Fourth (Apr-June) High Low High 2009 Low
Pursuant to provisions of SECP circular No 19 of 2004 dated April 14, 2004, the Company transmits its quarterly accounts to shareholders through Company's website instead of sending the same by post. However, the quarterly accounts can be provided to shareholders, on demand, at their registered addresses free of cost, within one week of such demand. The Company dispatches the Annual Accounts to its Shareholders by post. Annual Accounts are also placed on Company's website. Annual General Meeting BCL holds Annual General Meeting (AGM) normally in October of each year at Company's Registered Office. The Notice of AGM is sent to all Shareholders at least 21 days before the date of AGM and also published in one issue each of Daily English and Urdu news papers having circulation in Karachi and Lahore. The Notice of AGM contains an explanatory memorandum providing information to Shareholders for their convenience. Shareholders are encouraged to attend the meeting. However, if they are unable to attend, they are encouraged to Vote by Proxy on matters to be decided at the meeting. The Twenty Eight Annual General Meeting is scheduled to be held at the Registered Office of the Company, Main RCD Highway, Hub Chowki, District Lasbela, Baluchistan, Pakistan, on Monday October 25, 2010 at 1030 hours. Books Closure & Dividend / Bonus Shares Entitlement The Share transfer books of BCL will remain closed from October 12, 2010 to October 25, 2010 both days inclusive. Transfers received in order at the office of Share Registrar of the Company at the address given hereunder by close of working hours (1730 hrs) on October 11, 2010 shall be treated in time for the purpose of entitlement of Cash Dividend and Bonus Shares. Shareholders Enquiries During the year ended June 30, 2010, M/s. Central Depository Company of Pakistan Limited has been appointed as Share Registrar of BCL.
----------------- Rupees ----------------49.91 22.00 64.56 55.37 63.06 48.50 42.96 30.50 35.50 34.10 55.37 43.39 22.00 45.67 23.49 22.00
Annual Report 2010
Market Value Vs. Break - up Value of Shares

(Rs.) 100 90 80 70 60 50 40 30 20 10 0 92 71.5 59.5 37.9 34.41 40.11 68 77 58.77 67.95 49.23 48.65 35.58 22
50.9 53.68
58.88 55.1
2002 2003 2004 2005 2006 2007 2008 2009 2010 Market Value ( Rs./Share ) Break up Value (Rs./Share)
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Notice of Annual General Meeting
Notice is hereby given that 28th Annual General Meeting of Bolan Castings Limited will be held at the Registered Office of the Company Main RCD Highway, Hub Chowki, District Lasbella, Baluchistan, Pakistan, on Monday October 25, 2010 at 1030 hours to transact the following business:A. ORDINARY BUSINESS 1. To confirm the minutes of the 27th Annual General Meeting. 2. To receive, consider and adopt the audited accounts of the Company for the year ended June 30, 2010 together with the Directors' and Auditors' reports thereon. 3. To appoint auditors for the year ending June 30, 2011 and to fix their remuneration. Present Auditors M/s. Ernst & Young Ford Rhodes Sidat Hyder, Chartered Accountants retire and being eligible offer themselves for re-appointment. 4. To approve payment of dividend as recommended by the Directors. B. SPECIAL BUSINESS 5. To consider and if thought fit to approve issuance of 10% bonus shares by passing the following resolution as an ordinary resolution: RESOLVED that a sum of Rs. 9,481,428/- (rounded to Rs. 9,481,430/-) out of the profit available for appropriations as at June 30, 2010 be capitalized and be applied to the issue of 948,142.8 (rounded to 948,143) ordinary shares of Rs. 10/- each allotted as fully paid bonus shares to the members whose names appear in the register of members as at close of business on October 11, 2010 in the proportion of one bonus share for every ten ordinary shares held i.e 10%. FURTHER RESOLVED that these bonus shares shall rank pari passu in all respects with the existing shares except that these shares shall not qualify for the cash dividend declared for the financial year ended June 30, 2010. FURTHER RESOLVED that the Directors be and are hereby authorized to consolidate all fractions of bonus shares and sell in the stock market and pay the proceeds of sales when realized to a charitable trust. FURTHER RESOLVED that the Directors be and are hereby authorized and empowered to give effect to this resolution and to do, cause to be done; all acts, deeds and things that may be necessary or required for the issue, allotment and distribution of bonus shares. FURTHER RESOLVED and hereby agreed that Company Secretary be and is hereby authorized to complete all formalities related to issue of bonus shares. C. OTHER BUSINESS 6. To transact any other business with the permission of the Chair. By Order of the Board of Directors
Karachi: September 23, 2010 Notes :
M. Mushtaq Akhtar Company Secretary
1. The Share Transfer Books of the Company shall remain closed from October 12, 2010 to October 25, 2010 (both days inclusive). Transfers received in order at the office of our Share Registrar M/s. Central Depository Company of Pakistan Limited., CDC House, 99-B, Block-B, S.M.C.H.S., Main Shahrah-eFaisal, Karachi-74400 by close of working hours on October 11, 2010 shall be treated in time for the purpose of entitlement of cash dividend and bonus shares regarding the year ended June 30, 2010. 2. A member entitled to attend and vote at the meeting may appoint another member as his / her proxy to attend the meeting and vote on his / her behalf. Vote may be given either personally or by proxy or in case of a company / corporation by a representative duly authorized. 3. Duly executed proxies in order to be effective must be received at the office of our Share Registrar M/s. Central Depository Company of Pakistan Limited at least 48 hours before the meeting.
Notice of Annual General Meeting
4.
Shareholders are requested to promptly notify any change in their addresses to our Share Registrar M/s. Central Depository Company of Pakistan Limited. CDC Account Holders will further have to follow the under mentioned guidelines as laid down in Circular 1 dated January 26, 2000 issued by the Securities and Exchange Commission of Pakistan. FOR ATTENDING THE MEETING:
5.2.3 Attested copies of CNIC or the passport of the beneficial owners and the proxy shall be furnished with the proxy form. 5.2.4 The proxy shall produce his / her original CNIC or original passport at the time of the meeting. 5.2.5 In case of corporate entity, the Board of Directors' resolution/power of attorney with specimen signature shall have to be submitted (unless it has been provided earlier) along with proxy form to the Company. STATEMENT UNDER SECTION 160 (1) (b) OF THE COMPANIES ORDINANCE, 1984. This statement set out the material facts concerning the Special Business, given in agenda item No. 5 of the Notice. The Directors are of the view that Company's financial position and its reserves justify the capitalization of free reserves amounting to Rs. 9,481,430/- for the issue of bonus shares in the proportion of one bonus share for every ten ordinary shares held. The Directors directly or indirectly, are not personally interested in this issue except to the extent of their shareholding in the Company. Pursuant to rule 6 (iii) of the Companies (Issue of Capital) Rules, 1996, the Auditors have certified that the free reserves retained after the issue of the bonus shares would be higher than twenty five percent of the enhanced paid-up capital.
5.
5.1
5.1.1 In case of individual, the account holder or sub-account holder shall authenticate his identity by showing his original Computerised National Identity Card (CNIC) or original passport at the time of attending the meeting. 5.1.2 In case of corporate entity, the Board of Directors' resolution / power of attorney with specimen signature of the nominee shall have to be produced (unless it has been provided earlier) at the time of the meeting. 5.2 FOR APPOINTING PROXIES :
5.2.1 In case of individual, the account holder or sub account holder, shall submit the proxy form as per the above requirement. 5.2.2 The proxy form shall be witnessed by two persons whose names, addresses and CNIC numbers shall be mentioned on the form.
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Annual Report 2010
Stakeholders Information
25 Application of Revenue 26 Vertical Analysis 27 Horizontal Analysis 28 Decade at a Glance 30 Graphical Illustration 32 Statement of Value Added & its Distribution
Application of Revenue
2010
Cost of Sales 85%
Selling & Admin 4% Retained Earning 3% Financial Charges 3% Tax,Dividend & Other Charges 5%
2009
Cost of Sales 89%
Annual Report 2010
Selling & Admin 4% Retained Earning 2% Financial Charges 4%
Tax, Dividend & Other Charges 1%
25
Vertical Analysis
2010 (Rs. 000) Operating Results Net income Cost of sales Admin, selling & distribution expenses Other operating expenses Investment income Other income Finance cost Taxation Profit after taxation 1,707,846 1,468,284 77,955 9,422 (1,072) (16,662) 44,170 43,591 82,157 100.0 85.97 4.56 0.55 (0.06) (0.98) 2.59 2.55 4.81 1,604,626 1,440,373 67,834 4,045 (515) (18,520) 58,259 19,124 34,026 100.0 89.76 4.23 0.25 (0.03) (1.15) 3.63 1.19 2.12 1,130,538 1,016,595 48,010 4,443 (955) (4,958) 32,903 11,853 22,648 100.0 89.9 4.2 0.4 (0.1) (0.4) 2.9 1.0 2.0 % 2009 (Rs. 000) % 2008 (Rs. 000) %
Balance Sheet Property, plant and equipment Long term investments Other non-current assets Current assets Total assets Total Share holder's equity Long term debts (excluding current maturiy) Deferred liabilities Deferred taxation Short term debts Trade creditors Current portion of long term debts Other current liabilities Total liabilities Total equity and liabilities Cash Flow Cash generated from operations Cash flow from/(used in) operating activities Cash flow from/(used in) investing activities Cash flow from/(used in) financing activities Net increase/(decrease) in cash and cash equivalents 164,061 84,150 (20,710) 63,440 259 133 (33) 100 96,647 23,627 (17,776) (11,955) (6,104) (1,583) (387) 291 196 100 10,157 (45,964) (23,737) (44,559) (114,260) (9) 40 21 39 100 236,205 8,338 4,963 793,499 1,043,004 466,809 14,082 30,284 22,383 221,867 245,010 36,250 6,320 576,195 1,043,004 22.6 0.8 0.5 76.1 100 44.8 1.4 2.9 2.1 21.3 23.5 3.5 0.6 55.2 100 242,245 8,050 4,876 639,502 894,673 384,364 14,082 30,802 20,649 289,830 109,434 36,250 9,262 510,309 894,673 27.1 0.9 0.5 71.5 100 43.0 1.6 3.4 2.3 32.4 12.2 4.1 1.0 57.0 100 252,155 16,963 4,417 533,411 806,946 334,940 50,332 16,914 14,038 274,112 73,063 36,250 7,297 472,006 806,946 31.2 2.1 0.5 66.1 100 41.5 6.2 2.1 1.7 34.0 9.1 4.5 0.9 58.5 100
Horizontal Analysis
2010 (Rs. 000) Operating Results Net income Cost of sales Gross profit Admin, selling & distribution expenses Other operating expenses Investment income Other income Profit before finance cost Finance cost Profit before taxation Taxation Profit after taxation
Inc./(dec.) vs last year figure % 6.4 1.9 45.8 14.9 132.9 108.4 (10.0) 52.5 (24.2) 136.6 127.9 141.5
2009 (Rs. 000)
Inc./(dec.) 2008 vs last (Rs. 000) year figure % 41.9 1,130,538 41.7 1,016,595 44.2 113,943 41.3 48,010 (8.9) 4,443 (46.1) 955 273.5 4,958 65.3 67,404 77.1 32,903 54.1 34,501 61.4 11,853 50.2 22,648
Inc./(dec.) 2007 vs last (Rs. 000) year figure % 30.0 33.7 4.4 6.9 49.2 (39.4) 249.0 4.8 34.7 (13.5) (14.3) (13.0) 869,672 760,498 109,174 44,894 2,978 1,576 1,421 64,300 24,429 39,870 13,832 26,038
1,707,846 1,468,284 239,562 77,955 9,422 1,072 16,662 169,918 44,170 125,749 43,591 82,157
1,604,626 1,440,373 164,253 67,834 4,045 515 18,520 111,409 58,259 53,150 19,124 34,026
Balance Sheet Property, plant and equipment Long term investments Other non-current assets Current assets Total assets Share capital Reserves Total Share holder's equity Long term debts (excluding current maturiy) Deferred liabilities Deferred taxation Short term debts Trade creditors Current portion of long term debts Other current liabilities Total liabilities Total equity and liabilities Cash Flow Cash generated from operations Cash flow from/(used in) operating activities Cash flow from/(used in) investing activities Cash flow from/(used in) financing activities Net increase/(decrease) in cash and cash equivalents
236,205 8,338 4,963 793,499 1,043,004 94,814 371,995 466,809 14,082 30,284 22,383 221,867 245,010 36,250 6,320 576,195 1,043,004
(2.5) 3.6 1.8 24.1 16.6 20.0 21.8 21.4 (1.7) 8.4 (23.4) 123.9 (31.8) 12.9 16.6
242,245 8,050 4,876 639,502 894,673 79,012 305,352 384,364 14,082 30,802 20,649 289,830 109,434 36,250 9,262 510,309 894,673
(3.9) (52.5) 10.4 19.9 10.9 30.0 11.4 14.8 (72.0) 82.1 47.1 5.7 49.8 26.9 8.1 10.9
252,155 16,963 4,417 533,411 806,946 60,778 274,161 334,940 50,332 16,914 14,038 274,112 73,063 36,250 7,297 472,006 806,946
(1.2) (10.6) 6.8 23.1 13.4 10.0 1.5 2.9 (40.2) 11.4 79.1 59.4 8.8 87.2 22.1 13.4
255,249 18,975 4,136 433,427 711,786 55,253 270,102 325,355 84,128 15,190 7,838 171,992 67,135 36,250 3,899 386,432 711,786
Annual Report 2010
164,061 69.8 84,150 256.2 (20,710) 16.5 (100.0) 63,440 (1,139.4)
96,647 23,627 (17,776) (11,955) (6,104)
851.6 10,157 (151.4) (45,964) (25.1) (23,737) (73.2) (44,559) (94.7) (114,260)
(196.1) (10,573) (10.8) (51,536) (64.9) (67,612) (2.4) (45,632) (30.7) (164,781)
NOTE: Keeping in view the current uncertain market condition especially for the last five years we have prepared our horizontal analysis by making the preceding year as a bench mark for the year which is to be analyzed.
27
Decade at a Glance
(Rupees in Thousand) Year ended 30th June INCOME Net Sales Gross Profit Operating profit Profit before Tax Profit after Tax FINANCIAL POSITION Current assets Less: current liabilities Net working capital Property, plant and equipment Others-non current assets Less: Long term debts Other liabilities Shareholders' Equity REPRESENTED BY: Share capital Reserves Unrealized gain on long term investment Premium on issuance of right share Unappropriated profit 94,814 274,500 2,838 12,156 82,502 466,809 79,012 256,500 2,550 12,156 34,147 384,364 60,778 240,000 11,463 22,699 334,940 55,253 230,000 13,475 26,627 325,355 55,253 210,000 11,247 48,214 55,253 195,000 3,325 43,015 55,253 164,000 3,000 58,977 281,230 55,253 164,000 1,500 862 221,615 55,253 134,000 852 190,105 55,253 92,000 712 147,965 793,499 509,446 284,053 236,205 13,301 533,558 14,082 52,667 466,809 639,502 444,777 194,725 242,245 12,926 449,896 14,082 51,450 384,364 533,411 390,722 142,689 252,155 21,379 416,223 50,332 30,952 334,940 433,427 279,276 154,151 255,249 23,111 432,510 84,128 23,028 325,355 331,842 98,616 233,226 203,383 22,692 459,301 121,190 13,397 324,714 294,312 92,453 201,858 92,745 13,685 308,288 11,695 296,593 231,424 41,500 189,924 87,178 14,473 291,575 10,345 281,230 204,529 73,136 131,393 91,840 8,816 232,049 10,434 221,615 215,963 115,849 100,114 91,567 1,489 193,170 3,065 190,105 243,496 179,493 64,003 85,292 1,479 150,774 2,809 147,965 1,707,846 239,562 179,341 125,749 82,157 1,604,626 1,130,538 869,672 164,253 115,454 53,150 34,026 113,943 67,403 34,500 22,648 109,174 64,299 39,870 26,038 802,761 122,819 84,598 72,910 47,826 695,077 98,780 68,855 65,348 42,665 538,765 114,907 88,770 83,378 58,115 394,786 89,201 63,972 90,829 63,160 378,139 111,719 92,871 97,897 75,293 469,752 125,203 102,970 97,095 61,638 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001
Net Capital Employed Summary of Cash Flows Cash flows from operating activities Cash used in investing activities cash used in financing activities
324714 296,593
84,150 (20,710) -
23,627 (17,776) (11,955)
(45,964) (23,737) (44,559)
(51,536) (45,632)
21,070 91,148 11,019
21,036 (16,303) (7,713) 19,957
15,504 (5,357) (33,021) 22,937
43,382 (14,349) (32,686) 45,812
31,645 (11,243) (27,555) 49,465
54,562 (10,072) (21,706) 56,618
(67,612) (121,156)
Net change in cash and cash equivalents (210,685)
(274,125) (268,022) (153,761)
Decade at a Glance
Year ended 30th June PRODUCTION / SALES Production capacity installed (MT) Production capacity attained (MT) Capacity ratio (%) Net sales (MT) MARKET VALUE RATIOS Break up value of a share of Rs.10/-each Dividend (rupees per share) Dividend (%) Bonus shares (%) PROFITABILITY RATIOS Gross profit ratios % Profit before tax to sales ( % ) Profit after tax to sales ( % ) Basic earnings per share - EPS (Rs.) Earning yield - year end price (%) Price earning ratio - year end price EBITDA (earning before interest, tax, depreciation & amortization). (%) Dividend payout (%) Dividend yield ratio (%) Return on equity ( % ) Return on assets (%) Operating cycle (days) Divedend cover (times) LIQUIDITY RATIOS Current ratio Quick ratio ACTIVITY RATIOS Raw material inventory turnover - (days) WIP inventory turnover - (days) Finished goods inventory turnover - (days) Debtors turnover ratio (days) Assets turnover - (times) Fixed assets turnover - (times) LEVERAGE RATIOS Equity turnover - (times) Debt-equity ratio SHARE PRICE- (Rs.) Highest Lowest Average At the year end
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
13,200 16,069 122 15,343
13,200 14,335 109 13,272
10,367 13,801 133 12,907
10,367 13,543 131 12,384
7,450 12,627 169 11,969
5,700 12,320 216 11,806
5,700 10,532 185 9,550
5,700 7,868 138 7,568
5,700 7,615 134 7,260
5,700 9,441 166 9,051
49.23 2.50 25 10
48.65 20
55.11 10
58.88 2.00 20 10
58.77 5.00 50 -
53.68 5.00 50 -
50.90 5.00 50 -
40.11 6.00 60 -
34.41 6.00 60 -
26.78 5.00 50 -
14.03 7.36 4.81 8.66 24.34 4.11 12.08 28.87 7.03 17.60 7.88 92 3.46
10.24 3.31 2.12 3.46 15.73 6.36 8.59 8.85 3.80 78 -
10.08 3.05 2.00 2.95 5.49 18.22 8.39 6.76 2.81 114 -
12.55 4.58 2.99 4.28 6.12 16.34 9.42 42.44 2.60 8.00 3.64 109 2.36
15.30 9.08 5.96 8.66 9.41 10.62 11.65 57.76 5.43 14.73 8.57 102 1.73
14.21 9.40 6.14 7.72 11.35 8.81 11.26 64.75 7.35 14.39 10.65 104 1.54
21.33 15.48 10.79 10.52 14.71 6.80 18.55 47.54 6.99 20.66 17.45 110 2.10
22.59 23.01 16.00 11.43 19.21 5.20 19.23 52.49 10.08 28.50 20.70 113 1.91
29.54 25.89 19.91 13.63 35.96 2.78 27.57 44.03 15.83 39.61 24.37 122 2.27
26.65 20.67 13.12 11.16 29.21 3.42 24.84 44.82 13.09 41.66 18.66 78 2.23
1.56:1 1.18:1
1.44:1 1.10:1
1.37:1 0.96:1
1.54:1 0.62:1
3.36:1 1.54:1
3.18:1 1.68:1
5.58:1 2.42:1
2.80:1 1.83:1
1.86:1 1.33:1
1.36:1 1.01:1
51 7 5 74 1.64 6.84
38 7 4 54 1.80 6.29
68 10 4 48 1.4 4.13
76 13 6 36 1.22 3.12
66 11 6 35 1.44 3.95
65 15 4 35 1.73 7.50
62 18 4 37 1.62 6.18
50 13 9 58 1.29 4.30
40 11 14 74 1.22 4.1
32 6 10 45 1.42 5.51
Annual Report 2010
3.66 3:97
4.17 4:96
3.38 13:87
2.67 21:79
2.47 27:73
2.34 0:100
1.92 0:100
1.78 0:100
1.99 0:100
3.17 0:100
63.06 22.00 42.53 35.58
64.60 22.00 43.30 22.00
84.00 61.00 73.06 67.95
114.65 68.00 91.33 77.00
98.70 59.85 79.28 92.00
87.85 59.80 73.83 68.00
73.95 50.00 61.98 71.50
62.00 35.45 48.73 59.50
45.00 31.50 38.25 37.90
39.75 32.00 35.38 38.20
29
Graphical Illustration
(Rs. 000) 900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000
1,489
Total Assets
793,499
Return on Assets
(% ) 25 20 15
252,155 242,245 236,205 639,501 533,411 433,427
24.37 20.7 17.45 10.65
294,312 215,963 91,567 204,529 231,424
331,842 255,249
203,383
10 5 0 2002 2003 2004 2005
8.57 3.64 2006 2007 2.81 2008 3.8 2009
7.88
22,692
23,111
14,473
13,685
21,379
12,296
2002
2003
2004
2005
2006
2007
2008
2009
2010
13,301
8,816
100,000
91,840
87,178
92,745
Property Plant Equipment
Other Non-Current Assets Current Assets
2010
(Rs. 000)
1,200,000 1,000,000 800,000

1.22 1.29
Assets - Assets Turnover

1.73 1.62 1.44 711,786 557,917 400,741 1.22 806,945 1.4 1.79 1,043,004 1.64 894,673
(Times)
(Rs. 000)
300,000 250,000 200,000 150,000 100,000 50,000 0 2002 2003 4.1 4.3
600,000 400,000 200,000 0 2002 2003 2004 2005 Assets

309,019 305,185 333,075
2006
2007
2008
2009
2010
2 1.8 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0
F. Assets - F. Assets Turnover

7.5 255,249 6.18 203,383
(Times)
8
252,155 255,171 249,506 7 6.84 6 6.29 5 4 3 2 1
91,567 91,840 87,178 92,745
3.95 3.12
4.13
2004
2005 Fixed Assets
2006
2007
2008
2009
2010
Assets Turnover
Fixed Assets Turnover
(Rs. 000) 600,000
Liabilities
509,446 444,777 390,722
3,065
10,434
10,345
11,695
13,397
23,028
30,952
14,082
14,082
(Times) 5 4 3 2 1.99 1.78 1.92
Equity Turnover
4.17 3.38 2.34 2.47 2.67 3.66
500,000
400,000
300,000
279,276
200,000
115,849 92,453 73,136 41,500 98,616 121,190 84,128 50,332 51,450 52,667
100,000
1 0
2002
2003
2004
2005
2006
2007
2008
2009
2010
2002
2003
2004
2005
2006
2007
2008
2009
2010
Current Liabilities
Long Term Debt
Other - Deffered
Graphical Illustration
(Rs. 000)
180,000 160,000 140,000 120,000 100,000 80,000
63,972 92,871 88,770 68,855 115,454
Operating Profit
179,341
(Days) 80 70 60 58 74
Debtor Turnover
74
84,598 64,299 67,403
50 40 30 20 10 0 2002 2003 2004 2005 2006 2007 37 35 35 36
48
54
60,000 40,000 20,000
2008
2009
2010
2002
2003
2004
2005
2006
2007
2008
2009
2010
(%)
Earning Yield
35.96
40 35 30 25 20 15 10 5 0
(Days) 80 70 60 50 40 62
Inventory Turnover
76 65 66 68
24.36 19.21 14.71 11.35 9.41 6.12 5.49 15.73
50 40 30 20 10 0
51 38
1114
13
18 9 4 2004 Raw Material
15 4 2005 WIP
11
13 6 2007
10 2008
75 2010
2002
2003
2006
2009
2002
2003
2004
2005
2006
2007
2008
2009
2010
Finished Goods
(Rs.000) 300,000 250,000 200,000 150,000

111,719 29.54
Gross Profit - GP Margin

239,562 22.59
(%) 35 30 25
(Rs.000) 1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0
378139 7260 7568
Sales Value Sales Tonnage

1,707,846 1,604,626 13272 15343
Annual Report 2010
(MT) 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0
21.33 14.21 98,780 15.3 122,819
11806 9550
11969
12384
12907 1130538
164,253 12.55 113,943 109,174 14.03 10.08 10.24
20 15 10 5 0
114,907 89,201
802761 695077 538765
869672
100,000 50,000 0 2002
394786
2003
2004
2005
2006
2007
2008
2009
2010
2002 2003 2004 2005 2006 2007 2008 2009 2010 Sales Value Sales Tonnage
Gross Profit
G.P margin %
31
Statement of Value Added and its Distribution
Rs. 000 PARTICULARS VALUE ADDITION Revenue Generated Bought-In Material and Services Other Income 1,996,370 (1,382,223) 17,734 631,881 DISTRIBUTION TO: Employees Salaries, Wages and benefits Workers Profit Participation Fund 136,897 6,754 143,651
2010
Rs. 000
2009
1,876,461 (1,380,084) 19,035 515,412
22 1 23
101,748 2,860 104,608
20 1 21
Government Income Tax Sales Tax Special Excise Duty Workers Welfare Fund 43,591 281,719 6,805 2,569 334,684 7 45 1 0 53 19,124 255,845 15,990 1,186 292,145 4 50 3 0 57
Shareholders & Fund Providers Bonus Shares Cash Dividend Financial Charges 9,448 23,705 44,170 77,323 1 4 7 12 15,802 56,759 72,561 3 11 14
Retained in Buisness Depreciation Amortization Retained Profit 26,890 329 49,004 76,223 631,881 4 0 8 12 100 27,682 192 18,224 46,098 515,412 5 0 3 8 100
Distribution of Value Addition
2010
Retained in Buisness 12% Employees 23%
Shareholders & Fund Providers 12%
Government 53%
2009
Retained in Buisness 8% Shareholders & Fund Providers 14%
Employees 21%
Annual Report 2010
Government 57%
33
Corporate & Financial Reporting

35 37 43 45 46 47 Chairmans Review Directors Report Statement of Compliance of Code of Corporate Governance Review Report on Compliance of Code of Corporate Governance Auditors Report to the Members Financial Statements 47 48 49 50 51 52 76 Balance Sheet Profit and Loss Account Statement of Comprehensive Income Cash Flow Statement Statement of Changes in Equity Notes to the Financial Statements
Pattern of Shareholding
Chairmans Review
Dear Shareholders It is a pleasure for me to welcome you to the 28th Annual General Meeting of Bolan Castings Limited and to present the Annual Audited Accounts and Financial Report of the Company for financial year ended June 30, 2010.
(M.T) 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 7,615 7,868 10,532 12,320 12,627 14,335 13,543 13,801
Production
16,069
2010 was a year of significant achievement where BCL delivered its best ever financial performance. We have a strong platform to support future progress and remain well positioned to deliver further growth in 2011.
Business Review Despite ongoing economic slowdown, the agricultural sector has shown improvement in Pakistan and, therefore, this year there has been an increase in the demand for tractors. Accordingly the higher demand for components enabled the Company to achieve a record production and sale of more than 16,000 metric tons.
35
Annual Report 2010
Chairmans Review
Global need for food has increased tremendously all over the world and food prices have increased. This can be seen as an opportunity for the agricultural sector of Pakistan which will benefit the tractor industry and in turn improved demand for Company products. We are hopeful, in coming years the Company will achieve even higher targets as compared to this year. Financial Performance By the blessings of Almighty Allah, your Company achieved commendable performance in production and sales. The higher demand for castings helped the Company in achieving record production of 16,069 MT of Castings against 14,335 of last year. Your Company has successfully managed a gross sales figure of 16,009 MT during the period as against 14,312 MT of last year. The Company succeeded in securing all time record sales revenue of Rs.1,707.846 million against Rs. 1,604.626 million of last year with an increase of Rs. 103.220 million (6.43%). By negotiating better prices and reduction in material cost, the gross profit for the year improved to Rs. 239.562 million as against Rs. 164.253 million last year, marking an increase of Rs. 75.309 million (45.85%). Prudent management of stock in trade enabled the Company to reduce financial cost which declined to Rs.44.170 million against Rs.58.259 million of last year, making a healthy contribution of Rs.14.089 million (24.18%). Net profit before tax jumped to Rs.125.749 million against Rs.53.150 million of last year reflecting increase of Rs.72.599 million (136.59%).
(Rs.000) 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 2002 2003 2004 2005 PBT 2006 2007 2008 2009 2010 PBT : Sales 25.89 97897 23.01 90829 83378
Your Directors were pleased to recommend a cash dividend of Rs. 2.50 per share (25%) and a bonus issue of 10%, subject to approval at the Annual General Meeting. Future Prospects The recent devastating floods though heavily damaged the agriculture and infrastructure yet positive side of these floods would be fertile land which farmers would try to cultivate to its optimum level which would increase tractor demand and in turn increased sale of your Company's products. The Company now plans to concentrate on internal reforms to further control costs and enhance productivity and profitability. The company will focus on improving quality and find alternate markets, both domestically and abroad, to reduce its dependence on single buyer. Human Resource Development Your Company gives a lot of emphasis to its training programmes for update and enhancement of the employee skills. Apart from it, Company also imparts on the job training to the unskilled workers, fresh diploma holders, engineers and MBAs which becomes a rich source for their career building. Additionally, the Company also cares for employment of special persons. Corporate Social Responsibility In line with our fundamental social welfare policies, the company made a contribution during the year by providing financial help to one of the Eye Hospitals M/s. LRBT which is providing treatment to its patients absolutely free of cost. Your Company regularly contributes funds in the national exchequer in shape of duties and taxes, workers profit participation fund, workers welfare fund and employees pension schemes. Environment BCL is committed to maintaining good environmental practices to minimize the
adverse impact of its activities on the environment. Your Company has installed environment friendly equipment that helps in reducing air pollution. Our operations emphasize on compliance of regulatory requirements relating to environment. Acknowledgement I would like to thank the management and employees of the Company for their hard work and dedication towards making higher production and sales possible by keeping the plant operational despite numerous hurdles including law and order, heavy rains and frequent electricity breakdowns. I wish them well in the next financial year. I am grateful to the Board of Directors for their participation and assistance in guiding the Company and look forward to their support in future.
Pre Tax Profitability

125,749
(%) 30 25 20 53150 34500 3.05 3.31 7.36 15 10 5 0
Karachi: September 23, 2010
Sikandar M. Khan Chairman
72910 15.48 65348 9.4 9.08 39870 4.58
Directors Report
Dear Shareholders Directors of your Company have pleasure in presenting Annual Report and the Audited Financial Statements of the Company for financial year ended June 30, 2010.
(Rs .) 14 13.63 12 10 8 6 4 2 0 11.43
Earnings Per Share

10.52 7.72 8.66 8.66
4.28
2.95
3.46
In the year 2010 we delivered further significant growth in revenue, operating profit and earnings per share and achieved our best operating results ever
2002 2003 2004 2005 2006 2007 2008 2009 2010
General Your Company is incorporated in Pakistan as a public limited company and is listed on Karachi Stock Exchange. Its main business activity is to undertake castings of tractors and automotive parts.
37
Annual Report 2010
Directors Report
(Rs.000) 90000
Post Tax Profitability

82,157
(%) 25 20
Bonus Shares In addition to cash dividend the directors have also recommended bonus shares in the proportion of one share for every ten shares (i.e. 10%) held by the Shareholders whose names are registered in the books of the Company at the close of business on October 11, 2010. Earnings Per Share The earnings per share for the year ended June 30, 2010 were Rs.8.66 as against restated Rs.3.46 of preceding year. Risk Management Overall risks arising from the Company's financial instruments are limited as there is no significant exposure to market risk in respect of such instruments. Interest / Mark-up Rate Risk The Company manages to mitigate the interest / mark-up rate risk, arising from mismatches of financial assets and liabilities that mature or reprice in a given period, through risk management strategies where significant changes in gap position can be adjusted. Credit Risk The credit risk on company's liquid fund is limited because the counter parties are banks with high credit ratings. However, the company managed the credit risk on trade debts by monitoring credit exposures, limiting transactions with specific customers and containing assessment of credit worthiness of customers.
Liquidity Risk Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through an adequate amount of committed credit facilities. The Company manages this risk through effective cash management and by keeping committed credit lines available. Corporate Governance Compliance with the Code of Corporate Governance BCL is deeply aware of the significance of corporate governance in achieving effective checks and balance and protecting the interest of all shareholders and is dedicated to pursuing sustained optimization of corporate governance. The Company regards the building of sound corporate governance as an important means to maintain shareholder relationship and enhance corporate value. The Company is convinced that sound corporate governance is of great importance to the sustainable long term growth of the Company and that the efforts to improve and optimize our corporate governance and the progress that have been made to this end will help in enhancing our core competitiveness and increasing corporate value. In accordance with the Code of Corporate Governance, the Board has established sound corporate governance polices and procedures, which are monitored and reviewed on a continuous basis. Our Corporate governance framework is directed towards achieving our business objectives in a manner which is responsible and in accordance with high standards of honesty, transparency and accountability. For achievement of these principles, our vision / mission statements, overall corporate strategy, statement of business ethics and practices and significant policy guidelines, have been in place for many years.
80000 75293 19.91 70000 63160 58115 60000 16 50000 40000 30000 20000 10000 0 2002 2003 2004 2005 PAT 6.14 42665 10.79
47826 34026 26038 5.96 2.99 2006 22648 2 2.12 4.81 2010
15 10 5 0
2007 2008 2009
PAT : Sales
Appropriations Following are the appropriations made during the year: Un-appropriated profit brought forward Bonus shares issued for the year ended June 30, 2009 Transfer to general reserve Profit after tax for the year ended June 30, 2010 Un-appropriated profit carried forward Dividends The directors have recommended cash dividend at the rate of Rs. 2.50 per share i.e. 25%. If approved by the shareholders in the Annual General Meeting, the cash dividend will be paid within thirty days of AGM to the shareholders whose name appear on the register of shareholders of the Company at close of business on October 11, 2010. Subsequent Effects The cash dividend amounting to Rs. 23.704 million for the financial year 2010 shall be reflected in the financial statements for the year ended June 30, 2011. However, this will have no bearing on payment of dividends to shareholders. (Rs.000) 34,147 (15,802) (18,000) 82,157 82,502
Directors Report
Statements of compliance with the code of corporate governance duly reviewed and certified by the external auditors are annexed to this report. Board of Directors Board Structure Effective management and good stewardship are led by the Board of Directors, which currently consists of eight elected directors, of whom one is executive director and seven are non-executive directors. In addition to eight elected directors, ninth is the Chief Executive Officer who by virtue of being CEO is deemed to be a director of the Company. The positions of Chairman and the Chief Executive Officer are held by Mr. Sikandar M. Khan and Mr. Shahid A. Hakim respectively. The separation of functions ensures greater independence between the Board and the management. There is a clear division of responsibilities between the roles of the Chairman and the CEO. Reappointment of the Chief Executive Officer In December 2009, Mr. Shahid Ahmed Hakim was reappointed as Chief Executive Officer of the Company by the Board of Directors for the next term of three years, on the following terms: To perform duties as Chief Executive Officer as per law and laid down procedures. Salary and allowances not exceeding Rs. 5.0 million per annum inclusive of perquisite benefits but exclusive of retirement benefits and medical which he is entitled under the terms of his appointment with the Company. The above remuneration shall be subject to such increments and adjustments, including bonus / profit sharing as may be granted at any time and from time to time by the Company in accordance with the Companys policy and service rules for the time being in force. Further he is also authorized for free use of Company maintained transport for official and private purposes.
The nature of the concern or interest of any other director in the reappointment of Chief Executive is none other than as required for reappointment. Role of the Chairman and Chief Executive Officer The Chairman is responsible to provide overall leadership and vision in developing the strategic direction of the Company. The Chairman's primary role includes ensuring that the board functions properly, it meets its obligations and responsibilities and that its organization and mechanisms are in place and are working effectively. The CEO is responsible for managing the Company and to ensure delivery of the strategic and financial objectives which have been agreed by the Board. He is also responsible for stewardship of the Company's assets and jointly with the Chairman, represents the Company externally. Board Effectiveness / Board Process The Board is collectively responsible for the success of the Company. Its role is to provide entrepreneurial leadership to the Company within a framework of prudent and effective controls which enables risk to be assessed and managed. The Board sets the Company's strategic aims, ensures that the necessary financial and human resources are in place for the Company to meet its objectives and reviews management performance. It also sets the company's values and standards and ensures that its obligations to its shareholders and others are understood and met. Specific responsibilities reserved to the Board include: Approving annual budget and projections; Approving annual and quarterly accounts; Reviewing the Company's systems of financial control and risk management; Approving major acquisitions, divestments and capital expenditure; Issuing shares of the Company;
Price Earning Ratio

20 18 16 14 12 10 8 6 4 2 0 2.78 5.2 6.8 8.81 10.62 6.36 4.11 16.34 18.22
2002 2003 2004 2005 2006 2007 2008 2009 2010
Ensuring that appropriate management development and succession plans are in place; Reviewing matters relating to corporate social responsibility including the environmental, health and safety performance of the Company; Reviewing the activities of the Board's Committees; and Approving appointments to the Board, to the Board Committees and to the positions of CEO, CFO, Company Secretary and the Head of Internal Audit.
Board Meetings The Board is accountable to shareholders for ensuring that the Company is appropriately managed and achieves the strategic objectives it sets. The Board discharges those responsibilities through annual programme of meetings. The Board met five times during the financial year 2009-10. All the meetings were presided over by the Chairman of the Board. These meetings were also attended by the Chief Financial Officer and the Company Secretary. Attendance of Directors at Board meetings is set out below: Name of Director Meetings Attended Mr. Sikandar M. Khan 5 of 5 Mr. Shahid A. Hakim 5 of 5 Mr. Latif Khalid Hashmi 5 of 5 Mr. Sohail Bashir Rana 4 of 5 Mr. Laeeq Uddin Ansari 5 of 5 Mr. Mian Muhammad Saleem 5 of 5 Mr. Sajid Hassan (NIT Nominee) 3 of 5 Mr. Javed Munir 5 of 5 Mr. Mujtaba Ahmed 5 of 5
39
Annual Report 2010
Directors Report
Notice of meetings along with the agenda items and comprehensive working papers dealing with aspects of the business are distributed to Directors by the Company Secretary in advance of each Board Meeting so that the meeting can benefit from an informed board. All the directors are fully aware of their responsibilities. Further, at least once in a year, the Company conducts a course for its directors to acquaint them with their duties and responsibilities regarding managing the affairs of the Company on behalf of shareholders. The Board of Directors takes into account the interests of the Company as well as the interests of BCL's shareholders and other stakeholders when making decision. The Company Secretary is responsible for advising the Board on all governance matters and for ensuring that Board procedures are followed and applicable rules and regulations complied with. Additionally the Company Secretary is also responsible for compiling the minutes of Board Meeting and circulating amongst the directors within fourteen days of the date of meeting. The Chief Financial Officer is responsible for advising the Board on all financial and accounting matters and also responsible, alongwith the Chief Executive Officer, for presenting the annual and quarterly accounts. He takes care of assets and financing thereof. Additionally, the CFO is also responsible for finalizing Annual Corporate Budgets and periodic review of Budget vs Actual analysis for smooth running of the Company affairs. Subsequent Change in Board of Directors In July 2010, Mr. Sajid Hassan, NIT Nominee Director, had resigned from the Board and in his place Mr. Muhammad Imran Rafiq was coopted as NIT Nominee Director. The Board of Directors wishes to place on record its appreciation on the most commendable services rendered by the
outgoing Director Mr. Sajid Hassan during his tenure. The Board of Directors also welcomed and congratulated the incoming Director Mr. Muhammad Imran Rafiq. Board Committees In order to provide effective oversight and leadership the Board has established two committees with particular responsibilities. The terms of reference of both committees are clearly defined by the Board. The proceedings of Board Committees are reported to the Board of Directors in their meetings. The Board Committees contain directors with a variety of relevant skills and experience so that no undue reliance is placed on any individual. Audit Committee To guarantee the objectiveness, fairness and independence of the Audit Committee the Audit committee comprises four non-executive directors and is chaired by Mr. Laeeq Uddin Ansari. The other members of the Committee are Mr. Latif Khalid Hashmi, Mr. Mian Muhammad Saleem and Mr. Sajid Hassan. Subsequently, in September 2010 the Board of Directors appointed Mr.Muhammad Imran Rafiq, Non-Executive Director, as Member Audit Committee in place of Mr. Sajid Hassan, who had resigned from the Board of Directors. The primary role of the Audit Committee, which reports its findings to the Board, is to ensure the integrity of the financial reporting and audit process and the maintenance of a sound internal control and risk management system. In pursuing these objectives, the committee ensures that an appropriate relationship is maintained between the internal and the external auditors of the Company. The committee also considers the effectiveness of the external audit process and makes recommendations to the Board on appointment, resignation or dismissal of the auditors and their level of audit fee.
(Rs.000) 500,000 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 2002 190,105
Shareholders Equity & Return on Equity

(%) 466,809 39.61 384,364 324,714 325,355 334,940 45 40 35 30 25 17.6 20 15 8.00 6.76 10 8.85 5 0 2003 2004 2005 Equity 2006 2007 Return on Equity 2008 2009 2010
28.5 221,615
281,230 20.66
296,593
14.39
14.73
The Committee performs its responsibilities in supervising internal audit function and also plays an important role in optimizing the Company's internal control systems. The Audit Committee reviews the implementation on the internal control systems regularly and supervises the rectification of identified internal control problems. The Committee also ensures the compliance with the best practices of corporate governance and other relevant regulatory requirements. The Committee formally meets at least once in a quarter prior to approval of interim results of the Company and before and after completion of external audit. The Chief Executive Officer, the Chief Financial Officer and the Head of Internal Audit attend the meetings. The External Auditors attend the meetings at which annual and half yearly accounts are reviewed for subsequent approval by the Board of Directors. In addition, the Committee holds separate meetings with External Auditors to facilitate the discussion on any issue arising from the audit and with the Internal Auditors to discuss the matters related to Internal Controls. During the financial year 2010, the Committee met four times to coincide with the financial and reporting cycles of the Company. The proceedings of meetings are properly recorded by Secretary Audit Committee and minutes of meetings are circulated to all members, directors and Chief Financial Officer within fortnight of date of meetings.
Directors Report
Board's Committee for Supervision (BCS) The Board's Committee for Supervision (BCS) acts as an Executive Committee and is chaired by Mr. Sikandar M Khan. The other members of the committee are Mr. Latif Khalid Hashmi, Mr. Laeeq Uddin Ansari and Mr. Mian Muhammad Saleem. The BCS is responsible for monitoring the activities and strategy regarding technical, financial and administrative aspects of the Company. The Committee also reviews the operating and financial performance on a monthly basis. The meetings of BCS were held once a month. The CEO and all departmental heads also attend the meetings. The minutes of meetings are properly recorded and circulated to all concerned. Management Committees The Board of Directors has also formulated committees as follows to assist the Board in performance of relevant activities: Business Strategy Committee The Business Strategy Committee assists Board of Directors in devising short term and long term business plans and suggests strategies for achievement of organizational objectives. System & Technology Committee Systems provide solid base for any type of success. This Committee assists Board of Directors in formulating, implementing and upgrading systems of all types in the Company. Human Resources Committee The Human Resources Committee assists Board of Directors in: a) Formulating plans, procedures on manpower induction, fixation and payments of salaries, wages, allowances, retirement benefits, disciplinary activities, rewards and punishments, service rules and Labour-Management relationships. b) Periodic training arrangements. c) Devising hierarchy of management.
Accountability and Audit Financial Reporting The Board satisfies that it has met its obligation to present a balanced and understandable assessment of the Company's position and prospects through Chairman's review, Directors' report and Accounts which includes the operational and business review. Directors' statement on corporate and financial reporting is included in this Directors' report. Internal Controls The directors are responsible for the Company's system of internal controls which aims to: safeguard the Company's assets; ensure that proper accounting records are maintained; ensure compliance with statutory and regulatory requirements; and ensure the effectiveness and efficiency of operations. The Company maintains a sound system of internal controls, which is designed to identify, evaluate and manage risks that may impede the achievement of the Company's business objectives rather than to eliminate these risks and can, therefore, provide only reasonable, assurance against material misstatement or loss. The Audit Committee has been formally delegated the responsibility for reviewing the effectiveness of the system of internal controls. The Company and its operations are subject to a detailed annual budget process. Actual performance during the year is monitored periodically against budget, forecasts and previous year. These forecasts and results are presented to the Board's Committee regularly. Internal Audit Internal Audit's mission is to provide objective assurance and to increase the effectiveness of the BCL's operations. It helps to achieve BCL's objectives by using a systematic and methodical approach to assess the processes and systems used for risk management, control and corporate governance. It also helps improve them by making proposals to increase their effectiveness.
The scope of the work done by the Internal Audit make it possible to determine whether the processes, systems and controls, as they have been developed and implemented, are sufficient and are applied in such a way as to ensure that: " Risks are defined, evaluated and managed adequately; " Financial and operational information is authorized, reliable and available in a timely fashion; " Directives, policies, laws, regulations and statutory requirements are respected; and " Human, informational, material and financial resources are acquired economically, used efficiently and protected adequately. Internal Audit reports directly to the Audit Committee of the Board of Directors. The organizational structure is designed to ensure Internal Audit has the independence required to play its role effectively. External Audit The present auditors, M/s. Ernst & Young Ford Rhodes Sidat Hyder, Chartered Accountants, retire and being eligible, offer themselves for re-appointment. The directors endorse recommendations of the audit committee for the re-appointment of M/s. Ernst & Young Ford Rhodes Sidat Hyder, Chartered Accountants as the auditors for the financial year 2010-2011. M/s. Ernst & Young Ford Rhodes Sidat Hyder, Chartered Accountants have confirmed that they have been given a satisfactory rating under the quality control review programme of the Institute of Chartered Accountants of Pakistan. Further, they have confirmed that they or any of the partners of the firm, their spouses and minor children do not hold shares of the Company and that the firm and all its partners are in compliance with International Federation of Accountants (IFAC) guidelines on code of ethics as adopted by Institute of Chartered Accountants of Pakistan. The external auditors or the persons associated with them have not been appointed to provide other services except in accordance with the
41
Annual Report 2010
Directors Report
listing regulations and the auditors have confirmed that they have observed IFAC guidelines in this regard. Relations with Shareholders Constructive use of the Annual General Meeting The Board considers the Annual General Meeting an opportunity to communicate with shareholders, and encourages their participation. Atleast 21 days before the date of AGM, the Notice of meeting including the agenda and necessary information are dispatched to shareholders and published in leading Urdu and English newspapers also. Other The Company maintains a website (www.bolancastings.com), which offers any interested person information on the Company. Apart from this, its principal communication with shareholders and others is Annual Report and Quarterly Financial Statements, which are placed on the website soon after publication. The Company dispatches the printed copies of Annual Reports to its shareholders. However, the quarterly financial statements can also be dispatched to shareholders, on demand. Chairman's Review The Directors of the Company endorse contents of the Chairman's Review, which is included in the Annual Report dealing with the Company activities and forms an integral part of the Directors' Report. Statement on Corporate and Financial Reporting Framework The Board is fully aware of its responsibility in respect of corporate and financial reporting framework as recognized by the Code of Corporate Governance. The Directors of your Company are of the view that: a) The financial statements, prepared by the management of the Company present fairly its state of affairs, the results of its
b) c)
d) e) f) g)
operations, cash flows and changes in equity. Proper books of accounts of the Company have been maintained. Appropriate accounting policies have been consistently applied in preparation of financial statements except for those as stated in the notes to the financial statements and accounting estimates are based on reasonable and prudent judgment. International Accounting Standards, as applicable in Pakistan, have been followed in preparation of financial statements. The system of internal controls is sound in design and has been effectively implemented and monitored. There are no significant doubts upon the Company's ability to continue as a going concern. There has been no material departure from the best practices of Corporate Governance as detailed in the listing regulations of Stock Exchange.
(Rs.000) 300,000 250,000 200,000 150,000 100,000 50,000 0 2002 2003 2004
Reserves
256,500 230,000 240,000 195,000 210,000 164,000 164,000 134,000 274,500
2005
2006
2007
2008
2009
2010
Pattern of Shareholdings The pattern of shareholdings alongwith their categorized detail is annexed to the report. Approval and Authorization The Board of Directors of the Company in their meeting held on September 23, 2010 approved the Directors' Report and authorized Mr. Shahid A. Hakim, Chief Executive Officer of the Company to sign the report on its behalf. On Behalf of the Board
Operating and Financial Summary A summary of key operating and financial data alongwith key ratios of the Company for the last decade is annexed. Taxation Please refer to Note 32 to the Financial Statements for details regarding taxation of the Company. Investment of Retirement Benefits Funds The values of investments of Provident Funds, Gratuity Fund and Pension Fund based on their un-audited accounts as on June 30, 2010 (audit in progress) were as follows: Provident Funds Gratuity Fund Pension Fund Rs. 64.266 million Rs. 49.090 million Rs. 54.862 million
Shahid A. Hakim Chief Executive
Trading in the Company Shares The Directors, CEO, CFO, Company Secretary and their spouses and minor children did not carry out any trade in the shares of the Company during the period under review.
Statement of Compliance with the Best Practices of the Code of Corporate Governance
For the year ended June 30, 2010
This statement is being presented to comply with the Code of Corporate Governance set out in the listing regulations of Karachi Stock Exchange for the purpose of establishing a framework of good governance, whereby a listed company is managed in compliance with the best practices of corporate governance. The Company has applied the principles contained in the Code in the following manner: 1. The Company encourages representation of independent non-executive directors on its Board of Directors (Board). At present, the Board comprises nine directors, including seven non-executive directors. The directors have confirmed that none of them is serving as a director in ten or more listed companies, including this Company. All the directors of the Company are registered as taxpayers and none of them has defaulted in payment of any loan to a banking company, a DFI or an NBFI or, being a member of a stock exchange, has been declared as a defaulter by that stock exchange. No casual vacancy occurred in the Board during the year. The Company has prepared and issued a "Statement of Ethics and Business Practices", which has been signed by all the directors and employees of the Company. The Board has developed a vision / mission statement, overall corporate strategy and significant policies of the Company. A complete record of particulars of significant policies along with the dates on which they were approved or amended has been maintained. All the powers of the Board have been duly exercised and decisions on material transactions, including appointment and determination of remuneration and terms and conditions of employment of the CEO have been taken by the Board. The meetings of the Board were presided over by the Chairman and, in his absence, by a director elected by the Board for this purpose and the Board met at least once in every quarter. Written notices of the Board meetings, along with agenda and working papers, were circulated at least seven days before the meetings. The minutes of the meetings were appropriately recorded and circulated. The Company has maintained proper records in respect of related party transactions. All the related party transactions and the related pricing methods have been reviewed and approved by the Board. The Company has arranged an orientation course for its directors during the year to apprise them of their duties and responsibilities. No new appointment of CFO / Company Secretary has been made during the year. The Directors' report for this year has been prepared in compliance with the requirements of the Code and fully describes the salient matters required to be disclosed. The financial statements of the Company were duly endorsed by CEO and CFO before approval of the Board.
2. 3.
4. 5.
6.
7.
8.
9.
Annual Report 2010
10. 11. 12.
13.
43
Statement of Compliance with the Best Practices of the Code of Corporate Governance
14.
The directors, CEO and executives do not hold any interest in the shares of the Company other than that disclosed in the pattern of shareholding. The Company has complied with all the corporate and financial reporting requirements of the Code. The Board has formed an Audit Committee. It comprises four members, all of them are non-executive directors including the Chairman of Committee. The meetings of the Audit Committee were held at least once every quarter prior to approval of interim results of the Company and before and after completion of external audit. The terms of reference of the Committee have been determined by the Board and advised to the Committee for compliance. The Board has set-up an effective internal audit function. The statutory auditors of the Company have confirmed that they have been given a satisfactory rating under the quality control review programme of the Institute of Chartered Accountants of Pakistan. Further, they have confirmed that they or any of the partners of the firm, their spouses and minor children do not hold shares of the Company and that the firm and all its partners are in compliance with International Federation of Accountants (IFAC) guidelines on code of ethics as adopted by Institute of Chartered Accountants of Pakistan. The statutory auditors or the persons associated with them have not been appointed to provide other services except in accordance with the listing regulations and the auditors have confirmed that they have observed IFAC guidelines in this regard. We confirm that all other material principles contained in the Code have been complied with.
15. 16.
17.
18. 19.
20.
21.
Ernst & Young Ford Rhodes Sidat Hyder Chartered Accountants Progressive Plaza, Beaumont Road P.O. Box 15541, Karachi 75530, Pakistan Tel+ 92 21 3565 0007 Fax+ 92 21 3568 1965 www.ey.com/pk
Review Report to the Members on Statement of Compliance with the Best Practices of the Code of Corporate Governance
We have reviewed the Statement of Compliance with the best practices contained in the Code of Corporate Governance (the Code) prepared by the Board of Directors of Bolan Castings Limited (the Company) to comply with the Listing Regulations of Karachi Stock Exchange, where the Company is listed. The responsibility for compliance with the Code is that of the Board of Directors of the Company. Our responsibility is to review, to the extent where such compliance can be objectively verified, whether the Statement reflects the status of the Company's compliance with the provisions of the Code and report if it does not. A review is limited primarily to inquire of the Companys personnel and review of various documents prepared by the Company to comply with the Code. As part of our audit of financial statements we are required to obtain an understanding of the accounting and internal control systems sufficient to plan the audit and develop an effective audit approach. We are not required to consider whether the Board's statement on internal control covers all risks and controls, or to form on opinion on the effectiveness of such internal controls, the Companys corporate governance procedures and risks. Further, Sub-Regulation (xiii a) of the Listing Regulation 35 of the Karachi Stock Exchange requires the Company to place before the Board of Directors for their consideration and approval of related party transactions, distinguishing between transactions carried out on terms equivalent to those that prevail in arm's length transactions and transactions which are not executed at arm's length price, recording proper justification for using such alternate pricing mechanism. Further, all such transactions are also required to be separately placed before the Audit Committee. We are only required and have ensured compliance of requirement to the extent of approval of related party transactions by the Board of Directors and placement of such transactions before the Audit Committee. We have not carried out any procedures to determine whether the related party transactions were undertaken at arm's length price or not. Based on our review, nothing has come to our attention which causes us to believe that the Statement of Compliance does not appropriately reflect the Company's compliance, in all material respects, with the best practices contained in the Code, as applicable to the Company for the year ended 30 June 2010.
Karachi: 23 September 2010
Chartered Accountants
A member of Ernst & Young Global Limited
Ernst & Young Ford Rhodes Sidat Hyder Chartered Accountants Progressive Plaza, Beaumont Road P.O. Box 15541, Karachi 75530, Pakistan Tel+ 92 21 3565 0007 Fax+ 92 21 3568 1965 www.ey.com/pk
Auditors' Report to the Members

We have audited the annexed balance sheet of Bolan Castings Limited (the Company) as at 30 June 2010 and the related profit and loss account, statement of comprehensive income, cash flow statement and statement of changes in equity together with the notes forming part thereof, for the year then ended and we state that we have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purposes of our audit. It is the responsibility of the Company's management to establish and maintain a system of internal control, and prepare and present the above said statements in conformity with the approved accounting standards and the requirements of the Companies Ordinance, 1984. Our responsibility is to express an opinion on these statements based on our audit. We conducted our audit in accordance with the auditing standards as applicable in Pakistan. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the above said statements are free of any material misstatement. An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the above said statements. An audit also includes assessing the accounting policies and significant estimates made by management, as well as, evaluating the overall presentation of the above said statements. We believe that our audit provides a reasonable basis for our opinion and, after due verification, we report that: a) b) in our opinion, proper books of account have been kept by the Company as required by the Companies Ordinance, 1984; in our opinion: i) the balance sheet and profit and loss account, together with the notes thereon, have been drawn up in conformity with the Companies Ordinance, 1984, and are in agreement with the books of account and are further in accordance with accounting policies consistently applied except for changes as stated in note 4.2 to the financial statements with which we concur; the expenditure incurred during the year was for the purpose of the Company's business; and the business conducted, investments made and the expenditure incurred during the year were in accordance with the objects of the Company;
ii) iii) c)
in our opinion and to the best of our information and according to the explanations given to us, the balance sheet, profit and loss account, statement of comprehensive income, cash flow statement and statement of changes in equity together with the notes forming part thereof conform with approved accounting standards as applicable in Pakistan, and, give the information required by the Companies Ordinance, 1984, in the manner so required and respectively give a true and fair view of the state of the Company's affairs as at 30 June 2010 and of the profit, its comprehensive income, cash flows and changes in equity for the year then ended; and in our opinion, no Zakat was deductible at source under the Zakat and Ushr Ordinance, 1980 (XVIII of 1980).
d)
Chartered Accountants Audit Engagement Partner: Shariq Ali Zaidi Date: 23 September 2010 Karachi [In case of any discrepancy on the Companys website, the auditors shall only be responsible in respect of the information contained in the hard copies of the audited financial statements available at the Companys registered office.]
A member of Ernst & Young Global Limited
Balance Sheet
As at June 30, 2010
ASSETS NON-CURRENT ASSETS Fixed assets Property, plant and equipment Intangible assets Long-term investments Long-term loans Long-term deposits CURRENT ASSETS Stores, spare parts and loose tools Stock-in-trade Trade debts Loans and advances Deposits and short term prepayments Other receivables Income tax - net Cash and bank balances TOTAL ASSETS EQUITY AND LIABILITIES Share capital Reserves NON-CURRENT LIABILITIES Long-term financing Deferred tax liability Deferred liabilities CURRENT LIABILITIES Trade and other payables Current portion of long-term financing Accrued mark-up Short-term borrowings Sales tax - net CONTINGENCIES AND COMMITMENTS TOTAL EQUITY AND LIABILITIES The annexed notes from 1 to 44 form an integral part of these financial statements. 22 19 23 19 20 21 18 11 12 13 14 15 16 17 7 8 9 10 Note
2010 Rupees
2009 Rupees
235,738,248 466,577 236,204,825 8,337,500 694,200 4,269,160 249,505,685 90,962,184 193,731,108 409,893,146 7,718,403 2,699,992 31,204,611 46,107,989 11,181,100 793,498,533 1,043,004,218
241,449,255 795,935 242,245,190 8,050,000 607,200 4,269,160 255,171,550 94,456,994 149,532,143 278,732,056 10,978,571 4,042,826 27,106,921 58,947,481 15,704,735 639,501,727 894,673,277
94,814,280 371,994,989 466,809,269 14,081,686 30,283,840 22,383,437 66,748,963 243,066,096 36,250,000 6,319,567 221,866,552 1,943,771 509,445,986
79,011,900 305,352,432 384,364,332 14,081,686 30,801,563 20,648,754 65,532,003 89,971,177 36,250,000 9,262,410 289,830,220 19,463,135 444,776,942
Annual Report 2010
24 1,043,004,218 894,673,277
Sikandar M.Khan Chairman
47
Profit and Loss Account

Note
2010 Rupees
2009 Rupees
Turnover - net Cost of sales Gross profit Distribution costs Administrative expenses
25 26
1,707,845,850 (1,468,284,292) 239,561,558
1,604,626,060 (1,440,372,650) 164,253,410 (33,777,863) (34,055,856) (67,833,719) 19,034,665 115,454,356 (58,259,246) (4,045,277) (62,304,523) 53,149,833 (19,124,115) 34,025,718 (Restated)
27 28
(42,036,054) (35,919,348) (77,955,402) 17,734,405 179,340,561 (44,169,885) (9,422,096) (53,591,981) 125,748,580 (43,591,143) 82,157,437
Other operating income
29
Finance costs Other charges Profit before taxation Taxation Profit after taxation
30 31
32
Earnings per share - basic and diluted
33
8.66
3.46
The annexed notes from 1 to 44 form an integral part of these financial statements.
Bolan Castings Limited

Shahid A. Hakim Chief Executive Sikandar M.Khan Chairman
48
Statement of Comprehensive Income

2010 Rupees
2009 Rupees
Net profit for the year Other comprehensive income Unrealized gain / (loss) on revaluation of available-for-sale investments
82,157,437
34,025,718
287,500
(8,912,500)
Total comprehensive income for the year
82,444,937
25,113,218
Annual Report 2010
49
Cash Flow Statement

Note
2010 Rupees
2009 Rupees
CASH FLOW FROM OPERATING ACTIVITIES Cash generated from operations Long-term loans Long-term deposits Taxes paid Retirement benefits paid Finance costs paid Net cash generated from operating activities CASH FLOW FROM INVESTING ACTIVITIES Capital expenditure Return on bank deposits received Proceeds from disposal of operating fixed assets Net cash used in investing activities CASH FLOW FROM FINANCING ACTIVITIES Repayment of long-term loan Proceeds from issue of shares Dividend paid Net cash used in financing activities Net increase / (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of the year Cash and cash equivalents at end of the year 35 63,440,033 (274,125,485) (210,685,452) (36,250,000) 24,311,360 (15,960) (11,954,600) (6,103,778) (268,021,707) (274,125,485) (22,340,283) 276,190 1,354,584 (20,709,509) (19,437,721) 164,756 1,496,688 (17,776,277) 34 164,060,669 (87,000) (31,269,374) (1,442,025) (47,112,728) 84,149,542 96,646,715 800 (460,500) (16,336,232) (1,430,117) (54,793,567) 23,627,099
Statement of Changes in Equity

Reserves Revenue Reserves Gain / (loss) on revaluation General Capital Total Total of availablereserve reserve equity for-sale investments ---------------------------------------------------------(Rupees)--------------------------------------------------------Issued subscribed and paidup capital Unappropriated profit
Balance as at July 01, 2008 Net profit for the year Other comprehensive income Total comprehensive income Issue of right shares @ 2 : 10 Issue of bonus share @ 1 : 10 Transfer to general reserve Balance as at June 30, 2009 Net profit for the year Other comprehensive income Total comprehensive income Issue of bonus share @ 2 : 10 Transfer to general reserve Balance as at June 30, 2010 60,778,380 12,155,680 6,077,840 79,011,900 15,802,380 94,814,280 12,155,680 12,155,680 12,155,680 240,000,000 16,500,000 256,500,000 18,000,000 274,500,000 22,698,874 34,025,718 34,025,718 (6,077,840) (16,500,000) 34,146,752 82,157,437 82,157,437 (15,802,380) (18,000,000) 82,501,809 11,462,500 (8,912,500) (8,912,500) 2,550,000 287,500 287,500 2,837,500 274,161,374 34,025,718 (8,912,500) 25,113,218 12,155,680 (6,077,840) 305,352,432 82,157,437 287,500 82,444,937 (15,802,380) 371,994,989 334,939,754 34,025,718 (8,912,500) 25,113,218 24,311,360 384,364,332 82,157,437 287,500 82,444,937 466,809,269
Annual Report 2010
51
Notes to the Financial Statements

1. THE COMPANY AND ITS OPERATIONS Bolan Castings Limited (the Company) is a public limited liability company incorporated and domiciled in Pakistan. The Company is listed on the Karachi Stock Exchange. The registered office and manufacturing plant of the Company is situated at main RCD Highway, Hub Chowki, District Lasbela, Balochistan, Pakistan. The Company manufactures and sells castings for tractors and automotive parts. 2. STATEMENT OF COMPLIANCE These financial statements have been prepared in accordance with approved accounting standards as applicable in Pakistan. Approved accounting standards comprise of such International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board (IASB) as are notified under the Companies Ordinance, 1984, provisions of and directives issued under the Companies Ordinance, 1984. In case requirements differ, the provisions or directives of the Companies Ordinance, 1984 shall prevail. 3. 3.1 3.2 4. 4.1 BASIS OF MEASUREMENT These financial statements have been prepared under the historical cost convention as modified by revaluation of available-for-sale investments at fair value and certain staff retirement benefits at present value. These financial statements are presented in Pak Rupees which is the Company's functional and presentation currency. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies adopted in preparation of these financial statements are consistent with those of the previous financial year. The Company has adopted the following new amended IFRS and IFRIC interpretations as of July 01, 2009: IFRS 2 IFRS 3 IFRS 7 IFRS 8 IAS 1 IAS 23 IAS 27 IAS 27 Share Based Payment - Amendments regarding Vesting Conditions and Cancellations (Amendment) Business Combinations (Revised) Financial Instruments: Disclosures (Amendments) Operating Segments Presentation of Financial Statements (Revised) Borrowing Costs (Revised) Consolidated and Separate Financial Statement - Cost of an Investment in a Subsidiary, Jointly Controlled Entity or Associate (Amendments) Consolidated and Separate Financial Statements (Amendment) Financial Instruments: Presentation and IAS 1 Presentation of Financial Statements - Puttable Financial Instruments and Obligations Arising on Liquidation (Amendments) Financial Instruments: Recognition and Measurement - Eligible hedged items (Amendments)
IAS 32 IAS 39
IFRIC 15 Agreements for the Construction of Real Estate IFRIC 16 Hedges of a Net Investment in a Foreign Operation IFRIC 17 Distributions of Non-cash Assets to owners IFRIC 18 Transfers of Assets from Customers Adoption of the above standards, amendments and interpretations did not have any effect on the financial statements except as disclosed in note 4.2.

4.2 Changes in accounting policies and disclosures IAS 1 - "Presentation of financial statements (Revised)" The company has adopted IAS-1 "Presentation of financial statements (Revised)" which became effective during the year. The revised standard separates owner and non-owner changes in equity. The statement of changes in equity includes only details of transactions with owners, with non-owner changes in equity presented as a single line item in the statement of changes in equity. In addition, the standard introduces the statement of comprehensive income which presents all items of recognized income and expense, either in one single statement, or in two linked statements. The Company has elected to present two statements. IAS 23 "Borrowing Costs (Revised)" The Company has adopted IAS-23 "Borrowing Costs (Revised)" which became effective during the year. The revised standard requires the Company to capitalize borrowing costs attributable to the acquisition, construction or production of a qualifying asset (one that takes substantial period of time to get ready for use or sale). In order to comply with the requirements of the revised standard, the Company has changed its accounting policy related to borrowing costs. Previously, all borrowing costs were charged to the profit and loss account as incurred. This change in policy does not have any affect on these financial statements for the reason that during the year the Company has not incurred any borrowing costs directly attributable to the acquisition of or construction of qualifying assets. IFRS 7 - "Financial Instruments: Disclosures (Amendments)" The amended standard requires additional disclosure about fair value measurement and liquidity risk. Fair value measurement related to items recorded at fair value are to be disclosed by source of input using a three level fair value hierarchy, by class, for all financial instruments recognized at fair value. The fair value measurement disclosures are presented in note 37 to the financial statements. The liquidity risk disclosures are not significantly impacted by the amendments and are presented in note 36.3 to the financial statements. 4.3 Fixed assets Property, plant and equipment These are stated at cost less accumulated depreciation and impairment loss, except freehold land and capital work-in-progress, which are stated at cost. Depreciation is charged to income applying the reducing balance method at the rates given in note 7.1. Depreciation on additions is charged from the month in which the asset is available for use and on disposals upto the preceding month of disposal. Residual values and useful lives of assets and method of depreciation are reviewed, and adjusted, if appropriate at each balance sheet date. An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount. Maintenance and normal repairs are charged to profit and loss account as incurred. Major renewals and improvements to property plant and equipment are capitalized and the assets so replaced, if any, are retired. Intangible assets Intangible assets are carried at cost less accumulated amortization and impairment loss. The useful lives of intangibles are assessed as either finite or indefinite Intangible assets with finite life are amortized over the useful economic life and assume for impairment whenever there is identification that asset may be impaired. Amortization is charged to income applying the rate stated in note 8. The estimated useful life and amortization methods are revised at each balance sheet date, with effects of any changes in estimates being accounted for on a prospective basis. Cost associated with maintaining intangible assets is charged to profit and loss account as incurred.
Annual Report 2010 53

4.4 Borrowing costs Borrowing and other related costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use. All other borrowing costs are recognized as an expense in the period in which they are incurred. 4.5 Investments The investments of the Company, upon initial recognition, are classified as available-for-sale investment. All investments are initially measured at fair value plus transaction costs that are directly attributable to acquisition. After initial measurement such investments are measured at fair value with unrealized gain or loss recognised directly in the statement of comprehensive income until the investment is derecognized or determined to be impaired at which time the cumulative gain or los previously recognised in equity is taken to profit and loss account. 4.6 Stores, spare parts and loose tools These are valued at weighted average cost, except items in transit, which are stated at invoice value plus other charges paid thereon to the balance sheet date. Provision is made for slow moving items where considered necessary. 4.7 Stock-in-trade These are valued at the lower of cost and Net Realisable Value (NRV). Cost in relation to raw material represents weighted average cost and in relation to work-in-process and finished goods represents weighted average cost comprising direct material, labour and related manufacturing overheads based on normal operating capacity. Stock-in-transit is stated at invoice value plus other charges paid thereon to the balance sheet date. NRV is the estimated selling price in the ordinary course of business less cost of completion and cost necessarily to be incurred in order to make the sale. Provision is made for slow moving stocks where considered necessary. 4.8 Trade debts and other receivables Trade debts originated by the Company are recognised and carried at original invoice amount less provision for impairment. Other receivables are carried at cost less provision for impairment. Provision for impairment is based on the management's assessment of customers' outstandings and creditworthiness. The amount of the provision is charged to income. Trade debts and receivables are written off when considered irrecoverable.
4.9
Cash and cash equivalents These are carried at cost. For the purpose of cash flow statements, cash and cash equivalents comprise cash in hand and balance with banks net off short term borrowings.
4.10 Borrowings Borrowings are recognized initially at fair value and subsequently at amortized cost using the effective interest method. Borrowings payable within the next twelve months are classified as current liabilities. 4.11 Trade and other payables Liabilities for trade and other payables are carried at cost which is the fair value of the consideration to be paid in the future for goods and services received, whether or not billed to the Company.

4.12 Provisions Provisions are recognised when the Company has a legal or constructive obligation as a result of a past event, and it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made of the amount of obligation. The amount recognized represents the best estimate of the expenditure required to settle the obligation at the balance sheet date. Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. 4.13 Financial instruments All financial assets and financial liabilities are recognised at the time when the Company becomes a party to the contractual provisions of the instrument. Financial assets are derecognised when the contractual rights under the instruments are realized, expired or surrendered. Financial liabilities are derecognised when they are extinguished, that is, when the obligation specified in the contract is discharged, cancelled or expired. Any gain or loss on derecognistion of the financial assets and financial liabilities is taken to income currently. 4.14 Offsetting of financial assets and liabilities A financial asset and a financial liability is offset and the net amount is reported in the balance sheet if the Company has a legally enforceable right to set off the recognised amounts and intends either to settle on a net basis or to realise the assets and settle the liability simultaneously. Corresponding income and expenditure is also netted off and reported on a net basis in the profit and loss account. 4.15 Taxation Current Provision for current taxation is charged to income and is based on the taxable income for the year determined in accordance with the prevailing law for taxation on income. The charge for current tax is calculated using prevailing tax rates. The charge for current tax also includes tax credits and adjustments for prior years. Deferred Deferred income tax is provided using the liability method on all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which the deductible temporary differences, unused tax losses and tax credits can be utilised. Deferred tax is calculated at the rates that are expected to apply to the period when the related deferred tax asset is realized or the deferred tax liability is settled, based on tax rates that have been enacted or substantively enacted at the balance sheet date. Deferred tax is charged or credited to income. Deferred tax relating to items recognized directly in equity is recognized in equity and not in the income statement. Sales tax Revenues, expenses and assets are recognized net off amount of sales tax except: Where sales tax incurred on a purchase of asset or service is not recoverable from the taxation authority, in which case the sales tax is recognized as part of the cost of acquisition of the asset or as part of the expense item as applicable; and Receivables or payables that are stated with the amount of sales tax included. The net amount of sales tax recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the balance sheet.

4.16 Retirement and other service benefits Pension scheme The Company operates an approved defined benefit contributory pension scheme for all its eligible employees. The scheme is funded and provides for pension based on the employees' last drawn salary. Pensions are payable for life and thereafter to surviving spouses and children upto the age limits as given in the fund's rules. Contributions to the scheme based on actuarial valuation which is covered out atleast once in every two years by independent actuaries using the Projected Unit Credit Method. The most recent actuarial valuation was carried out as of June 30, 2010. Cumulative net un recognized actuarial gains and losses at the end of the previous year which exceed 10% of the greater of the present value of the Company's defined benefit obligations and the fair value of plan assets are amortised over the expected average remaining working lives of the employees, participating in the scheme. Executives' gratuity scheme The Company operates an approved gratuity scheme for all its eligible executive employees. The scheme is funded and provides for a graduated scale of benefits dependent on the length of service of the employee on terminal date, subject to the completion of minimum qualifying period of service as per the rules of the fund. Gratuity is based on employees' last drawn basic salary. Contributions are made to the scheme on the basis of actuarial valuation and charged to income. Actuarial valuation of the scheme is carried out at least once in every two years. The most recent actuarial valuation was carried out as of June 30, 2010 using the 'Projected Unit Credit Method'. Cumulative net unrecognised actuarial gains and losses at the end of the previous year which exceed 10% of the greater of the present value of the Company's defined benefit obligations and the fair value of plan assets are amortised over the expected average remaining working lives of the employees. Non-executives gratuity scheme The Company operates an unfunded gratuity scheme for all eligible non-executive employees which provides for benefits dependent on the length of service of the employee on terminal date, subject to the completion of minimum qualifying period of service. Provisions are made annually to cover the obligation on the basis of number of completed years of service of an employee and last drawn basic salary and charged to income. The liability recognized in the balance sheet is calculated by the Company using this basis as the difference in liability is not expected to be material if calculated on the Projected Unit Credit Method. Provident fund The Company operates an approved funded contributory provident fund for all eligible employees who have completed the minimum qualifying period of service. Equal monthly contributions are made both by the Company and the employee at the rate of 10% per annum of the basic salary. Annual contribution by the Company is charged to income.
Compensated absences The Company provides a facility to its executive and non-executive employees for accumulating their annual earned leave under an unfunded scheme. Provisions are made to cover the obligation under the scheme on accrual basis and are charged to income. The liability recognized in the balance sheet is calculated by the Company using this basis as the difference in liability is not expected to be material using the Projected Unit Credit Method. 4.17 Foreign currency translation Transactions in foreign currencies are translated into Pak Rupees at the rates of exchange ruling on the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into Pak Rupees using the exchange rate at balance sheet date. Foreign exchange gain / loss resulting from the settlement of such transactions and from translation at year end exchange rates of monetary assets and liabilities in foreign currencies is recognised in profit and loss account.

4.18 Revenue recognition Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be measured reliably. Revenue is measured at the fair value of the consideration received or receivable and is recognised on the following basis: Sales are recorded upon transfer of title to the customers, which generally coincides with physical delivery and acceptance. Dividend income is recognised when the Company's right to receive the dividend is established. Return on bank deposits is recognised using the effective interest method.
4.19 Dividend and appropriation to reserves Dividend and appropriation to reserves are recognised in the financial statements in the period in which these are approved. 4.20 Related party transactions Transactions with related parties are carried out on commercial terms and conditions. 5. STANDARDS, INTERPRETATIONS AND AMENDMENTS TO APPROVED ACCOUNTING STANDARDS THAT ARE NOT YET EFFECTIVE The following revised standards, interpretations and amendments with respect to the approved accounting standards as applicable in Pakistan would be effective from the dates mentioned below against the respective standards, interpretations or amendments: Standards, interpretations and amendments IFRS 2 IAS 24 IAS 32 Share-based Payments: Amendments relating to Group Cash - settled Share-based Payment Transactions Related Parties Disclosure (Revised) Financial Instruments: Presentation - Classification of Rights Issues (Amendment) Effective date (accounting periods beginning on or after) January 01, 2010 January 01, 2011 February 01, 2010 January 01, 2011 July 01, 2010
IFRIC 14 Prepayments of Minimum Funding Requirements (Amendment) IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments
The Company expects that the adoption of the above revisions, interpretations and amendments of the standards will not affect the Company's financial statements in the period of initial application. In addition to the above, amendments to various accounting standards have also been issued by the IASB as a result of its annual improvement project in April 2009. Such improvements are generally effective for accounting periods beginning on or after January 01, 2010. The Company expects that such improvements to the standards will not have any material impact on the Company's financial statements in the period of initial application. 6. SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS The preparation of financial statements in conformity with approved accounting standards requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Company's accounting policies. Estimates and judgments are continually evaluated and are based on historic experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Revisions to accounting estimates are recognized in the period in which the estimate is revised and in any future periods affected. In the process of applying the accounting policies, management has made the following estimates and judgements which are significant to the financial statements:

Notes determining the residual values and useful lives of property, plant and equipment classification of investment valuation of inventories provision for impairment of trade debts and other receivables provision for retirement and other service benefits provision for deferred tax contingencies Note 7. PROPERTY, PLANT AND EQUIPMENT Operating assets Capital work-in-progress - civil works 7.1 Operating assets
COST 2010 As at July 01, 2009 2,678,754 77,401,920 425,190,343 29,375,042 3,028,316 5,914,056 2,390,743 6,533,849 33,457,895 Additions / (Disposals) As at June 30, 2010 242,828 11,040,689 896,808 91,000 538,348 78,630 9,451,980 (3,537,793) 22,340,283 (3,537,793) 2,678,754 77,644,748 436,231,032 30,271,850 3,119,316 6,452,404 2,390,743 6,612,479 39,372,082 ACCUMULATED DEPRECIATION As at July 01, 2009 41,618,010 268,073,054 11,071,500 1,499,580 2,606,850 1,457,414 5,476,064 14,636,757 Charge for the year / (disposals) 3,588,277 16,149,766 1,883,898 159,656 354,211 93,334 330,102 4,330,613 (2,376,360) 26,889,857 (2,376,360) As at June 30, 2010 45,206,287 284,222,820 12,955,398 1,659,236 2,961,061 1,550,748 5,806,166 16,591,010 BOOK VALUE As at June 30, 2010 2,678,754 32,438,461 152,008,212 17,316,452 1,460,080 3,491,343 839,995 806,313 22,781,072 Depreciation rate % 10% 10% 10% 10% 10% 10% 30% 20%
4.3 & 7 4.5 & 9 4.6, 4.7, 11 & 12 4.8, 13 & 16 4.16 & 21 4.15, 20 & 32 24 2010 Rupees 2009 Rupees
7.1
233,820,682 1,917,566 235,738,248
239,531,689 1,917,566 241,449,255
---------------------------------------------------------- Rupees ---------------------------------------------------------Freehold land Building on freehold land Plant and machinery Electrical and gas installations Furniture and fittings
Electrical appliances Office equipments Computers Vehicles
Total
585,970,918
604,773,408
346,439,229
370,952,726
233,820,682

COST 2009 As at July 01, 2008 2,678,754 77,401,920 418,080,035 28,750,862 2,916,455 4,915,328 2,312,823 6,280,589 30,099,148 Additions / (Disposals) As at June 30, 2009 2,678,754 77,401,920 425,190,343 29,375,042 3,028,316 5,914,056 2,390,743 6,533,849 33,457,895 ACCUMULATED DEPRECIATION As at July 01, 2008 37,642,020 251,174,286 9,049,330 1,333,656 2,270,832 1,354,682 5,060,419 15,022,246 Charge for the year / (disposals) 3,975,990 16,898,768 2,022,170 165,924 336,018 102,732 415,645 3,764,975 (4,150,464) 27,682,222 (4,150,464) As at June 30, 2009 41,618,010 268,073,054 11,071,500 1,499,580 2,606,850 1,457,414 5,476,064 14,636,757 BOOK VALUE As at June 30, 2009 2,678,754 35,783,910 157,117,289 18,303,542 1,528,736 3,307,206 933,329 1,057,785 18,821,138 Depreciation rate % 10% 10% 10% 10% 10% 10% 30% 20%
---------------------------------------------------------- Rupees ---------------------------------------------------------Freehold land Building on freehold land Plant and machinery Electrical and gas installations Furniture and fittings Electrical appliances Office equipments Computers Vehicles 7,110,308 624,180 111,861 998,728 77,920 253,260 8,982,636 (5,623,889) 18,158,893 (5,623,889)
Total
573,435,914
585,970,918
322,907,471
346,439,229
239,531,689
7.2
Depreciation charge for the year has been allocated as follows: Cost of sales Distribution costs Administrative expenses
Note 26 27 28
2010 Rupees 25,836,274 263,396 790,187 26,889,857
2009 Rupees 22,593,085 239,135 4,850,002 27,682,222
7.3
The following operating assets (vehicles) were disposed off during the year:
Particulars Toyota Corolla AHW-125 Suzuki van CN-4375 Suzuki van CN- 4390 Suzuki alto AFV-231 Suzuki Pick up CK-9851 Honda CD-70 KEC-8293 Honda CD-70 KED- 1878 Honda CD-70 KEC- 8295 Honda CD-70 KED- 1882 Aggregate amount of assets disposed off having book value less than Rs.50,000/- each 2010 2009 Cost Accumulated depreciation 755,284 352,061 352,061 352,061 272,844 7,233 6,290 8,264 10,483 259,779 Book value 283,716 100,939 100,939 100,939 71,799 55,667 56,610 54,636 52,417 283,771 1,161,433 1,473,425 Sale proceeds 283,716 100,939 100,939 100,939 196,270 55,667 60,950 60,950 52,417 341,797 1,354,584 1,496,688 Gain on disposal 124,471 4,340 6,314 58,026 193,151 23,262 Mode of disposal Company policy Company policy Company policy Company policy Tender Company policy Insurance claim Insurance claim Company policy Particulars of buyers
-------------------------------- Rupees -------------------------------1,039,000 453,000 453,000 453,000 344,643 62,900 62,900 62,900 62,900 543,550 Mr. Mujtaba Ahmed (Employee) Mr. Zafar Alam (Employee) Mr. Ghayoor-ul-Hasan (Employee) Mr. Qasim Mohiuddin (Employee) Mr. Asif Mobeen, Karachi Mr. Irshad Ali (Employee) Adamjee Insurance Company, Karachi Adamjee Insurance Company, Karachi Mr. S.Hassan (Employee)
Annual Report 2010
3,537,793 2,376,360 5,623,889 4,150,464
59

8. INTANGIBLE ASSETS COST As at July 01 Software 2010 2009 988,033 988,033 ACCUMULATED AMORTIZATION As at July 01 192,098 Charge for the year 329,358 192,098 As at June 30 521,456 192,098 2010 Rupees BOOK VALUE As at June 30 466,577 795,935 2009 Rupees Amortization Period 3 3
------------------------------------ Rupees ------------------------------------
Note 8.1 Amortization charge for the year has been allocated as follows: Cost of sales Distribution costs Administrative expenses 9. LONG-TERM INVESTMENTS Available-for-sale 9.1 26 27 28
197,615 32,936 98,807 329,358
115,259 19,210 57,629 192,098
8,337,500
8,050,000
Represents investment in 287,500 (2009: 287,500) quoted ordinary shares of Rs. 10/- each of Balochistan Wheels Limited representing 2.15% (2009: 2.15%) of equity held. Note 2010 Rupees 1,247,000 (552,800) 694,200 2009 Rupees 1,116,000 (508,800) 607,200
10.
LONG-TERM LOANS - secured, considered good Loans to employees Less: Current portion shown under current assets 10.1 14
10.1 Represent interest free loans given to employees for the purchase of motorcycles. These are secured against respective assets and are recoverable in monthly installments over a period of fifty months. 2010 Rupees 2009 Rupees
11.
STORES, SPARE PARTS AND LOOSE TOOLS Stores including in transit Rs. 742,102/(2009: Rs. 82,915/-) Spares parts including in transit Rs. 1,559,725/(2009: Rs. 2,538,217/-) Loose tools including in transit Nil (2009: Rs. 834,064/-) Hard coke including in transit Rs. 14,364,153/(2009: Rs. 27,382/-) Diesel Kerosene oil
15,572,422 49,491,456 1,794,814 66,858,692 22,345,785 1,725,545 32,162 90,962,184
14,941,802 44,574,184 2,581,562 62,097,548 31,446,656 860,815 51,975 94,456,994

Note 12. STOCK-IN-TRADE Raw materials including in transit Rs. 14,404,264/(2009: Rs. 9,417,839/-) Work in process Finished goods 146,521,108 26,533,000 20,677,000 193,731,108 102,062,002 31,922,000 15,548,141 149,532,143 2010 Rupees 2009 Rupees
12.1 & 12.2
12.1 Includes stock held by Millat Tractors Limited (a related party) amounting to Rs. 4,356,220/- (2009: Rs. 2,182,042/-). 12.2 Stocks include items valued at NRV resulting in writing down of inventories by Rs. 5,106/- (2009: Rs. 637,859/-). Note 13. TRADE DEBTS - unsecured Considered good Related parties Others Considered doubtful Less: Provision for impairment 13.1 Represents amount due from the following related parties: - Millat Tractors Limited - Millat Equipments Limited 13.2 The ageing of trade debts at June 30, 2010 is as follows: Neither past due not impaired Past due not impaired - 45 - 90 days - 90 - 180 days - over 180 days 14. LOANS AND ADVANCES - considered good Loans Current portion of long-term loans to employees Advances - to employees - to suppliers 10 552,800 515,675 6,649,928 7,165,603 7,718,403 508,800 492,667 9,977,104 10,469,771 10,978,571 13.1 2010 Rupees 2009 Rupees
357,936,675 51,956,471 409,893,146 259,850 410,152,996 (259,850) 409,893,146 357,119,502 817,173 357,936,675 346,208,494 6,133,070 7,258,955 50,292,627 409,893,146
226,053,081 52,678,975 278,732,056 259,850 278,991,906 (259,850) 278,732,056 220,376,826 5,676,255 226,053,081 251,790,075 2,405,116 7,546,615 16,990,250 278,732,056
Annual Report 2010
15.
DEPOSITS AND SHORT TERM PREPAYMENTS Deposits Prepaid insurance 2,699,992 2,699,992 2,841,420 1,201,406 4,042,826
61

Note 16. OTHER RECEIVABLES Accrued return on bank deposits Pension fund Provident fund Executives gratuity fund Claims receivable from supplier Special excise duty receivable Others 16.1 16.1 6,542 14,795,152 842,535 10,387,164 3,495,831 1,198,517 478,870 31,204,611 945 12,421,284 14,262 10,357,839 4,080,137 232,454 27,106,921 2010 Rupees 2009 Rupees
Pension fund 2010 Rupees 16.1 Movement in asset Opening balance Reversals for the year Contributions made Closing balance 16.2 Balance sheet reconciliation Fair value of plan assets Present value of defined benefit obligations Unrecognised actuarial gains /(losses) 16.3 Movement in fair value of plan assets Opening balance Expected return on plan assets Contributions for the year Benefits paid during the year Actuarial (loss) / gain on plan assets Closing balance 16.4 Movement in defined benefit obligations Opening balance Current service cost Interest cost Benefits paid during the year Actuarial (gain) / loss on obligations Closing balance 16.5 Actual return on plan assets 43,093,166 1,530,420 5,725,130 (1,168,245) (685,493) 48,494,978 4,475,693 34,990,398 1,470,714 4,198,848 (924,923) 3,358,129 43,093,166 1,753,735 55,296,494 7,266,217 2,363,202 (1,168,245) (2,793,045) 60,964,623 52,175,028 6,261,003 2,292,654 (924,923) (4,507,268) 55,296,494 60,964,623 (48,494,978) 2,325,507 14,795,152 55,296,494 (43,093,166) (217,956) 12,421,284 12,421,284 744,050 1,629,818 14,795,152 9,233,446 1,606,673 1,581,165 12,421,284 2009 Rupees
Executives gratuity fund 2010 2009 Rupees Rupees
10,357,839 29,325 10,387,164
8,363,566 1,994,273 10,357,839
49,317,545 (37,316,036) (1,614,345) 10,387,164
41,958,445 (31,258,334) 342,272 10,357,839
41,958,445 5,431,040 (362,428) 2,290,488 49,317,545
47,703,456 5,724,415 (2,652,278) (8,817,148) 41,958,445
31,258,334 1,263,465 4,138,250 (362,428) 1,018,415 37,316,036 7,721,528
28,292,803 1,180,545 3,334,189 (2,652,278) 1,103,075 31,258,334 (3,092,733)

Pension fund 2010 2009 ---------------------- (%) ---------------------16.6 The principal assumptions used in the actuarial valuations are as follows: Discount rate Expected rate of return on plan assets Expected rate of increase in future salaries 16.7 Plan assets comprise: National / Special Saving Certificates Listed shares / mutual funds units Bank balance Others 16.8 Historical information for the five years is as follows: 2010 Rupees Pension fund Fair value of plan assets Present value of defined benefit obligation Surplus Experience adjustments on plan liabilities - (gain) / loss Experience adjustments on plan assets - (loss) / gain Executives gratuity fund Fair value of plan assets Present value of defined benefit obligation Surplus Experience adjustments on plan liabilities - (loss) / gain Experience adjustments on plan assets - (loss) / gain 49,317,545 (37,316,036) 12,001,509 1,018,415 2,290,488 41,958,445 (31,258,334) 11,208,003 (1,103,075) (8,817,148) 47,703,456 (28,292,803) 19,410,653 (2,635,563) (3,001,239) 47,870,000 (22,032,000) 25,838,000 (1,597,000) 48,965,000 (23,014,000) 25,951,000 2,435,000 3,202,000 60,964,623 (48,494,978) 12,469,645 (685,493) (2,793,045) 55,296,494 (43,093,166) 12,203,328 3,358129 (4,507,628) 52,175,028 (34,990,398) 17,184,630 1,936,551 (1,541,636) 47,547,000 (28,756,000) 18,791,000 498,000 41,087,000 (25,430,000) 15,657,000 (2,779,000) (160,000) 2009 Rupees 2008 Rupees 2007 Rupees 2006 Rupees 40 25 27 8 14 20 56 10 15 38 46 1 56 33 11 13 13 13 13 13 13 13 13 13 13 13 13 Executives gratuity fund 2010 2009 ---------------------- (%) ----------------------
63
Annual Report 2010

16.9 The amounts charged to profit and loss account in respect of employment benefits are disclosed in note 28.1.
16.10 In view of the surplus of plan assets over present value of defined benefit obligation, no contributions are expected to be made next year. 2010 2009 Note Rupees Rupees 17. CASH AND BANK BALANCES Cash in hand Cash at banks Current accounts Deposit accounts Term deposit receipts 77,487 17.1 17.1 8,446,755 1,091,858 1,565,000 11,103,613 11,181,100 86,592 12,587,016 1,466,127 1,565,000 15,618,143 15,704,735
17.1 18. 18.1
These carry mark-up rates ranging from 5% to 5.5% (2009: 5.5% to 9.5%) per annum. SHARE CAPITAL Authorised capital 12,000,000 (2009:12,000,000) Ordinary shares of Rs. 10/- each 120,000,000 120,000,000
18.2
Issued, subscribed and paid-up capital 2010 2009 -----Number of shares----Ordinary shares of Rs. 10/- each 6,740,875 2,740,553 9,481,428 6,740,875 1,160,315 7,901,190 Fully paid in cash Issued as fully paid bonus shares 67,408,750 27,405,530 94,814,280 67,408,750 11,603,150 79,011,900 2010 Rupees 2009 Rupees
18.3
As at June 30, 2010, 4,385,934 (2009: 3,654,945) ordinary shares of the Company were held by Millat Tractors Limited (a related party). Note 2010 Rupees 2009 Rupees
19.
LONG-TERM FINANCING - secured From banking company Less: Current portion 19.1 50,331,686 (36,250,000) 14,081,686 50,331,686 (36,250,000) 14,081,686
19.1
Represents the amount utilised against the demand finance facility from a commercial bank, amounting to Rs.145 million (2009: Rs. 145 million) to finance the 'Balancing, Modernization and Replacement' of the Company's existing foundry. The facility is repayable in 8 equal half yearly installments commencing February 2007 and carries markup at the rate of 3 months' KIBOR plus 1.25% (2009: 3 months' KIBOR plus 0.75%) per annum. The facility is secured by way of first registered equitable mortgage charge of Rs. 182 million over all present and future fixed assets of the Company.

Note 20. DEFERRED TAX LIABILITY Credit balances arising due to accelerated tax depreciation Debit balances arising due to - provision for unfunded gratuity scheme and compensated absences - provision for doubtful debts 38,196,310 38,119,575 2010 Rupees 2009 Rupees
(7,821,668) (90,802) (7,912,470) 30,283,840
(7,227,064) (90,948) (7,318,012) 30,801,563
21.
DEFERRED LIABILITIES Non-executive gratuity scheme Compensated absences 21.1 21.2 11,081,745 11,301,692 22,383,437 10,953,842 836,411 (708,508) 11,081,745 10,953,842 9,694,912 20,648,754 8,295,892 3,137,241 (479,291) 10,953,842
21.1
Non-executive gratuity scheme Opening balance Charge for the year Payments made during the year Closing balance
21.2
Compensated absences Opening balance Charge for the year Payments made during the year Closing balance 9,694,912 2,340,297 (733,517) 11,301,692 8,618,097 2,027,641 (950,826) 9,694,912
22.
TRADE AND OTHER PAYABLES Creditors Accrued liabilities Provision for bonus Security deposits Retention money Workers' Profit Participation Fund Workers' Welfare Fund Special excise duty payable Advance from employees Dividends Others 22.1 22.2 22.3 176,987,705 1,474,282 29,830,244 19,585,263 6,753,534 2,568,562 4,305,413 1,214,335 346,758 243,066,096 62,218,372 1,627,145 11,683,943 3,322,518 2,859,756 1,185,521 2,151,400 3,341,598 1,214,335 366,589 89,971,177
Annual Report 2010
22.1
Include Rs. 7.45 million (2009: Rs. 5.31 million) due to Millat Tractors Limited (a related party).
65

Note 22.2 Provision for bonus Balance at the beginning of the year Provision for the year Less: payments made during the year Balance at end of the year 22.3 Workers' Profit Participation Fund Balance at the beginning of the year Allocation for the year Less: Payments made during the year Balance at the end of the year 23. SHORT TERM BORROWINGS - secured Running finance Finance against Trust Receipt 23.1 23.2 221,866,552 221,866,552 246,308,427 43,521,793 289,830,220 31 2,859,756 6,753,534 9,613,290 2,859,756 6,753,534 1,852,888 2,859,756 4,712,644 1,852,888 2,859,756 41,549,628 41,549,628 (11,719,384) 29,830,244 6,496,157 6,496,157 (6,496,157) 2010 Rupees 2009 Rupees
23.1
The facilities for running finance available from banks aggregate to Rs.405 million (2009: Rs. 355 million). These facilities expire on various dates latest by February 28, 2011. The facilities carry mark-up at rates ranging from 1 month to 6 months' KIBOR plus 1% to 1.5% (2009: 1 month to 6 months' KIBOR plus 1.5% to 3%) per annum and are secured by way of a hypothecation charge on plant and machinery, stocks and book debts ranking pari passu with each other. Facility available from a commercial bank for retirement of import documents against trust receipt amounts to Rs. 50 million (2009: Rs. 50 million). CONTINGENCIES AND COMMITMENTS The Company had filed returns declaring tax losses during the tax holiday period amounting to Rs. 82.724 million and Rs.17.227 million for the assessment years 1987-88 and 1988-89 respectively. These losses were disallowed by the Assessing Officer and upheld by the Commissioner of Income Tax (Appeals). The Company filed an appeal with Income Tax Appellate Tribunal (ITAT), which decided the matter in the Company's favour. The Income Tax Department filed a reference application before the Honourable High Court of Sindh, which upheld the ITAT's order in favour of the Company. The Income Tax Department has filed a reference with the Honourable Supreme Court of Pakistan which is still pending. In the event that the decision is not in the favour of the Company, a tax liability of Rs. 23.9 million would arise representing the tax effect of losses relating to the tax holiday period utilised by the Company. The management of the Company, based on the views of its tax consultant, is confident that the decision will be given in favour of the Company and therefore, no provision has been made in these financial statements for this amount.
23.2 24. 24.1
24.2
The Assessing Officer while finalizing assessment for the assessment year 2001-2002 imposed penalty amounting to Rs. 1.735 million on the alleged concealment of income. The matter is pending before the Honourable High Court of Sindh. Based on the advice of its legal advisor, the management is confident that the ultimate outcome of the matter will be decided in its favour and accordingly no provision has been made for the above liability in these financial statements. Outstanding letters of credit at the end of the year amount to Rs. 277.9 million (2009: Rs. 86.2 million).
24.3

Note 25. TURNOVER - net Local sales Less: Sales returns Sales tax Less: Special excise duty 2,067,726,931 (74,166,259) (281,718,656) (6,805,261) (362,690,176) 1,705,036,755 Export sales 2,809,095 1,707,845,850 26. COST OF SALES Raw material consumed Opening stock Purchases Closing stock Manufacturing expenses Salaries, wages and benefits Staff welfare Stores, spares parts and loose tools consumed Fuel and power Machining expenses Outsourced job contractors Travelling and conveyance Depreciation Amortization Rent, rates and taxes Printing and stationery Repairs and maintenance Communication Export expenses Insurance Vehicle expenses Training Entertainment Others Work in process - opening Work in process - closing Cost of goods manufactured Finished goods - opening stock Finished goods - closing stock 12 92,644,163 892,465,251 985,109,414 (132,116,844) 852,992,570 103,464,174 8,370,451 132,128,269 222,912,447 9,147,124 76,435,927 20,773,081 25,836,274 197,615 485,093 378,130 4,644,822 564,491 156,956 2,476,795 3,353,824 2,303,155 660,354 742,599 615,031,581 31,922,000 (26,533,000) 1,473,413,151 15,548,141 (20,677,000) 1,468,284,292 99,215,456 919,850,202 1,019,065,658 (92,644,163) 926,421,495 76,550,309 6,799,529 110,205,607 214,763,648 6,953,334 58,784,054 17,856,578 22,593,085 115,259 480,981 450,488 4,518,875 564,251 27,225 2,223,161 2,994,234 2,456,802 226,873 569,003 529,134,296 20,139,000 (31,922,000) 1,443,772,791 12,148,000 (15,548,141) 1,440,372,650 2,002,545,989 (126,084,619) (255,844,998) (15,990,312) (397,919,929) 1,604,626,060 1,604,626,060 2010 Rupees 2009 Rupees
28.1 26.1
7.2 8.1
Annual Report 2010
12 12
26.1
Includes of hard coke, diesel and Kerosine oil aggregating Rs. 125,683,205/- (2009: Rs. 143,880,958/-).
67

Note 27. DISTRIBUTION COSTS Salaries, wages and benefits Staff welfare Freight charges Travelling Insurance Sales promotion Depreciation Amortization Rent, rates and taxes Repairs and maintenance Communication Vehicle expenses Printing and stationery Others 28. ADMINISTRATIVE EXPENSES Salaries, wages and benefits Staff welfare Legal and professional charges Outsourced job contractors Travelling Utilities Rent, rates and taxes Repairs and maintenance Printing and stationery Communication Depreciation Amortisation Advertisement Vehicle expenses Insurance Subscription Auditors' remuneration Entertainment Training Others 28.1 28.1 2,571,359 454,752 38,055,885 74,367 173,808 305,770 263,396 32,936 2,250 1,500 9,400 56,137 24,252 10,242 42,036,054 20,856,787 1,180,281 1,098,312 2,359,089 1,159,247 892,276 2,052,155 422,440 784,837 408,447 790,187 98,807 182,410 1,809,716 399,507 280,917 560,000 228,343 179,241 176,349 35,919,348 1,720,427 231,795 30,050,844 158,179 335,937 904,146 239,135 19,210 16,650 29,451 38,309 27,478 6,302 33,777,863 14,955,504 1,491,121 1,051,347 2,234,221 1,392,767 857,668 1,670,917 276,862 704,100 405,512 4,850,002 57,629 293,400 1,874,938 365,884 296,499 755,654 233,983 127,338 160,510 34,055,856 2010 Rupees 2009 Rupees
7.2 8.1
7.2 8.1
28.2
28.1
Salaries, wages and benefits include Rs. 1.63 million (2009: Rs. 1.58 million), Rs. 1.26 million (2009: Rs. 1.18 million), Rs.0.836 million (2009: Rs. 3.1 million), Rs.2.340 million (2009: Rs. 2.027 million) and Rs. 2.489 million (2009: Rs. 2.249 million) in respect of Company's contribution towards pension fund, non-executive gratuity scheme, compensated absences and provident funds respectively. 2010 Rupees 2009 Rupees 500,000 60,000 47,500 148,154 755,654
28.2
Auditors' remuneration Statutory audit fees Fee for half yearly review Other services Out of pocket expenses 500,000 60,000 560,000

Note 29. OTHER OPERATING INCOME Income from financial assets Return on bank deposits Dividend income Income from non-financial assets Scrap sales Liabilities no longer payable written back Gain on disposal of operating assets Others 281,786 790,625 1,072,411 6,682,751 3,322,518 193,151 6,463,574 16,661,994 17,734,405 155,204 359,375 514,579 16,928,400 23,262 1,568,424 18,520,086 19,034,665 2010 Rupees 2009 Rupees
30.
FINANCE COSTS Mark-up on: - long-term finance - short-term borrowings Exchange loss Interest on Workers' Profit Participation Fund Markup on advance from customer Bank charges
6,945,925 33,958,754 40,904,679 42,700 2,855,211 367,295 44,169,885
9,807,928 42,633,972 52,441,900 1,500,230 111,740 3,617,082 588,294 58,259,246
31.
OTHER CHARGES Workers' Profit Participation Fund Workers' Welfare Fund Donation 22.3 31.1 6,753,534 2,568,562 100,000 9,422,096 2,859,756 1,185,521 4,045,277
31.1 32.
Recipients of donations do not include any donee in whom any Director or his spouse had any interest. TAXATION Current - for the year - for prior years Deferred 44,223,849 (114,983) 44,108,866 (517,723) 43,591,143 2,258,278 102,489 2,360,767 16,763,348 19,124,115
69
Annual Report 2010

2010 Rupees 32.1 Reconciliation of accounting profit with tax charge for the year Profit before taxation Tax at the applicable rate of 35% (2009: 35%) Tax effect of: - Permanent differences not deductible in determining taxable income - Income taxed at reduced rates - Prior year 33. EARNINGS PER SHARE - basic and diluted There is no dilutive effect on the basic earnings per share of the Company, which is based on: 2010 Profit after taxation (Rupees) Weighted average number of ordinary shares Earnings per share (Rupees) 33.1 82,157,437 9,481,428 8.66 2009 34,025,718 9,481,428 3.46 125,748,580 44,012,003 (85,479) (220,398) (114,983) 43,591,143 53,149,833 18,602,441 329,371 89,814 102,489 19,124,115 2009 Rupees
The weighted average number of shares for 2009 has been adjusted for the effect of bonus shares issued during the year. 2010 Rupees 2009 Rupees
34.
CASH GENERATED FROM OPERATIONS Profit before taxation Adjustment for: - Depreciation - Amortisation - Provision for retirement benefits - Gain on disposal of operating assets - Return on bank deposits - Finance costs Operating profit before working capital changes Working capital changes (Increase) / decrease in current assets: - Stores, spares parts and loose tools - Stock in trade - Trade debts - Loans and advances - Deposits and short term prepayments - Other receivables Increase / (decrease) in current liabilities: - Trade and other payable 125,748,580 26,889,857 329,358 3,176,708 (193,151) (281,786) 44,169,885 74,090,871 199,839,451 53,149,833 27,682,222 192,098 5,164,882 (23,262) (155,204) 56,759,016 89,619,752 142,769,585
3,494,810 (44,198,965) (131,161,090) 3,260,168 1,342,834 (4,092,094) 135,575,555 (35,778,782) 164,060,669
(19,701,578) 8,157,268 (85,261,179) 4,578,030 19,755,936 (8,853,436) 35,202,089 (46,122,870) 96,646,715

Note 35. CASH AND CASH EQUIVALENTS Cash and bank balances Short-term borrowings 17 23 11,181,100 (221,866,552) (210,685,452) 15,704,735 (289,830,220) (274,125,485) 2010 Rupees 2009 Rupees
36.
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES The main risks arising from the Company's financial instruments are market risks, credit risk and liquidity risk. The Board of Directors reviews and agrees policies for managing each of these risks which are summarized below:
36.1
Market risk Market risk is the risk that the fair value of future cash flows of financial instrument will fluctuate due to changes in market variables such as interest rate, foreign exchange rates and equity prices. (i) Interest rate risk Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company's exposure to the risk of changes in market interest rates relates primarily to the Company's long-term financing and short term borrowings with floating interest rates. Management of the Company estimates that 1% increase in the market interest rate, with all other factor remaining constant, would increase the Company's profit by Rs. 438,026/- and a 1% decrease would result in the decrease in the Company's profit by the same amount. However, in practice, the actual result may differ from the sensitivity analysis. (ii) Foreign currency risk Foreign currency risk is the risk that the value of financial assets or a financial liability will fluctuate due to a change in foreign exchange rates. It arises mainly where receivables and payables exist due to transactions in foreign currency. As at June 30, 2010, the Company is not exposed to currency risks in respect of financial assets or financial liabilities. (iii) Equity price risk Equity price risk is the risk of volatility in share prices resulting from their dependence on market sentiments, speculative activity, supply and demand for shares and liquidity in the market. Management of the Company estimates that 10% increase in the overall equity prices in the market with all other factor remaining constant would increase the Company's income by Rs.0.083 million and a 10% decrease would result in the decrease in Company's income by the same amount. However, in practice, the actual result may differ from the sensitivity analysis.
Annual Report 2010
36.2
Credit risk Credit risk is the risk which arises with the possibility that one party to a financial instrument will fail to discharge its obligation and cause the other party to incur a financial loss. The Company attempts to control credit risk by monitoring credit exposures, limiting transactions with specific counterparties and continually assessing the creditworthiness of counterparties. Concentrations of credit risk arise when a number of counterparties are engaged in similar business activities or have similar economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic, political or other conditions. Concentrations of credit risk indicate the relative sensitivity of the Company's performance to developments affecting a particular industry.
71

2010 Rupees The table below analysis the Company's maximum exposure to credit risk: Deposits Trade debts Advances to suppliers Other receivables Investments Bank balances 6,969,152 409,893,146 6,649,928 31,204,611 8,337,500 11,103,613 474,157,950 7,110,580 278,732,056 9,977,104 27,106,921 8,050,000 15,618,143 346,594,804 2009 Rupees
The table below provides the analysis of the credit quality of financial assets on the basis of external credit rating or the historical information about counter party default rates. 2010 Rupees Trade debts Customers with no defaults in the past one year Bank Balances Ratings A1+ A-1 A-2 36.3 Liquidity risk 11,103,613 11,103,613 7,415,412 1,995,995 6,206,736 15,618,143 409,893,146 278,732,056 2009 Rupees
Liquidity risk is the risk that the company will not be able to meet its financial obligations as they fall due. The Company applies the prudent risk management policies by maintaining sufficient cash and bank balances and by keeping committed credit lines. The table below summarises the maturity profile of the Company's financial liabilities at the following reporting dates: 2010 Less than 3 to 12 1 to 5 Total 3 months months years ------------------------------------------- (Rupees) -------------------------------------------179,715,324 6,319,567 221,866,552 407,901,443 36,250,000 50,433,504 86,683,504 14,081,686 12,917,268 26,998,954 50,331,686 243,066,096 6,319,567 221,866,552 521,583,901
Long-term financing Trade and other payables Accrued markup Short term borrowings
2009
Less than 3 to 12 1 to 5 Total 3 months months years ------------------------------------------- (Rupees) -------------------------------------------66,363,496 9,262,410 289,830,220 365,456,126 11,580,622 11,580,622 50,331,686 12,027,059 62,358,745 50,331,686 89,971,177 9,262,410 289,830,220 439,395,493
Long-term financing Trade and other payables Accrued markup Short term borrowings

37. FAIR VALUE OF FINANCIAL INSTRUMENTS Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable willing parties in an arm's length transaction. The fair value of listed shares is based on market prices quoted on the stock exchange. The carrying values of all other financial assets and liabilities reflected in the financial statements approximate their fair values. Fair value hierarchy The Company uses the following hierarchy for disclosure of the fair value of financial instruments by valuation technique: Level 1: quoted prices in active market for identical assets. Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly. Level 3: techniques which use inputs which have a significant effect on the recorded fair value that are not based on observable market data. As at June 30, 2010, the Company has only available-for-sale investments measured at fair value using level 1 valuation technique. 38. CAPITAL RISK MANAGEMENT The Company's objectives when managing capital is to safeguard the Company's ability to continue to provide returns for shareholders and benefit for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. Net debt is calculated as total loans and borrowings including any finance cost thereon, trade and other payables, less cash and bank balances. Capital signifies equity as shown in the balance sheet plus net debt. The gearing ratios as at June 30, 2010 and 2009 were as follows: 2010 Rupees Long-term financing Trade and other payables Accrued mark-up Total debt Add: Cash and cash equivalent Net debt Share capital Reserves Equity Capital Gearing ratio 50,331,686 243,066,096 6,319,567 299,717,349 210,685,452 510,402,801 94,814,280 371,994,989 466,809,269 977,212,070 52.23% 2009 Rupees 50,331,686 89,971,177 9,262,410 149,565,273 274,125,485 423,690,758 79,011,900 305,352,432 384,364,332 808,055,090 52.43%
73
Annual Report 2010

39. REMUNERATION OF CHIEF EXECUTIVE, DIRECTORS AND EXECUTIVE 2010 Chief Directors Executive Executive -------------------- (Rupees) -------------------Managerial remuneration Bonus Production incentive House rent Retirement benefits Utilities Medical expenses Fees Others Number of persons 39.1 40. 1,993,480 477,312 449,235 833,899 185,310 757,155 206,595 833,847 5,736,833 1 853,289 1,117,643 305,880 349,417 155,285 558,573 95,628 18,000 334,673 3,788,388 2 895,848 212,356 202,703 373,554 83,118 423,472 72,000 71,250 2,334,301 1 2009 Chief Director Executive Executive -------------------- (Rupees) -------------------1,696,841 122,075 708,648 157,482 798,997 216,422 728,742 4,429,207 1 714,071 147,057 291,180 129,410 560,477 33,814 307,846 2,205,855 2 771,100 55,000 322,248 71,610 425,424 72,000 22,000 169,277 1,886,659 1
The Company provides the Chief Executive and Executive with free use of company car and residential telephone. TRANSACTIONS WITH RELATED PARTIES Related parties comprise of associates, retirement benefits fund, directors and key management personnel. Details of transactions/balances with related parties, other than those disclosed elsewhere in the financial statements, are as follows: 2010 Rupees Nature of relationship Associates - Millat Tractors Limited Sales Purchases Purchase of fixed assets Mark-up on advance Receipt / repayment of advances Sales 1,506,381,492 9,230,599 4,464,000 2,855,211 6,926,556 11,260,450 1,434,395,010 16,244,410 3,617,082 7,248,367 7,636,550 Nature of transactions 2009 Rupees
- Millat Equipments Limited Retirement funds - Pension fund - Provident fund - Executives' Gratuity fund
Contributions Contributions Contributions
1,629,818 2,489,168 377,428
1,579,633 2,250,930 2,682,278

2010 2009 --------- (metric ton) -------41. PRODUCTION CAPACITY - Castings Installed capacity Actual production Capacity utilization 42. DIVIDENDS AND APPROPRIATIONS The Board of Directors in its meeting held on 23 September 2010 (i) approved the transfer of Rs. 49 million from unappropriated profit to general reserve; (ii) proposed a final dividend of Rs. 2.5/- per share for the year ended June 30, 2010 amounting to Rs. 23.7 million; and (iii) proposed to a bonus issue of one share for every ten shares held (10%) for the year ended June 30, 2010, for approval of the members at the Annual General Meeting to be held on 25 October 2010. 43. CORRESPONDING FIGURES Certain prior year figures have been reclassified consequent upon certain changes in current year's presentation. The summary of material reclassification is as follows: Note 22 31 31 44. Reclassification From Income tax - net Other charges Other charges To Trade and other payables Finance costs Administrative expenses Nature Worker's Welfare Fund Exchange loss Legal and professional charges and auditors' remuneration Rupees 1,185,521 1,500,230 1,807,001 13,200 16,069 122% 13,200 14,335 109%
DATE OF AUTHORISATION FOR ISSUE These financial statements were authorised for issue on 23 September 2010 by the Board of Directors of the Company.
Annual Report 2010
75
Pattern of Shareholding
As at June 30, 2010
No. of Shareholders 76 408 54 217 21 15 3 2 1 1 1 1 1 1 1 1 1 1 2 1 2 1 1 1 1 1 816 * There is no shareholding in the slabs not mentioned. *Size of Holding From 1 101 501 1001 5001 10001 15001 20001 25001 35001 40001 55001 65001 70001 75001 115001 135001 160001 210001 230001 240001 270001 405001 455001 1035001 4385001 To 100 500 1000 5000 10000 15000 20000 25000 30000 40000 45000 60000 70000 75000 80000 120000 140000 165000 215000 235000 245000 275000 410000 460000 1040000 4390000 Total Shares Held 2,220 69,407 37,928 429,677 160,325 173,883 50,320 42,970 26,211 38,247 42,000 56,329 65,863 75,000 80,000 119,306 137,496 163,196 426,804 235,000 487,365 274,604 405,106 459,074 1,037,163 4,385,934 9,481,428 Amount Rupees 22,200 694,070 379,280 4,296,770 1,603,250 1,738,830 503,200 429,700 262,110 382,470 420,000 563,290 658,630 750,000 800,000 1,193,060 1,374,960 1,631,960 4,268,040 2,350,000 4,873,650 2,746,040 4,051,060 4,590,740 10,371,630 43,859,340 94,814,280
Categories of Shareholders
S. No. 1 2 3 4 5 6 Categories Associated Companies Investment Companies Bank/Financial Institutions Joint Stock Companies Individuals Others Total No. of Shareholders 1 3 5 11 792 4 816 No. of Shares Held 4,385,934 416,434 1,641,281 83,249 2,458,917 495,613 9,481,428
% 46.26 4.39 17.31 0.88 25.93 5.23 100.00
Categories of Shareholders
As at June 30, 2010
S.No. 1
Particulars Directors, Chief Executive Officer and their spouse and minor children Sikandar Mustafa Khan Shahid Ahmed Hakim Latif Khalid Hashmi Sohail Bashir Rana Laeeq Uddin Ansari Mian Muhammad Saleem Javed Munir Mujtaba Ahmad
Shares Held
137,496 1,372 274,604 119,306 459,074 56,329 8,580 11,739
1.45 0.01 2.90 1.26 4.84 0.59 0.09 0.12
Associated Companies, undertakings and related parties Millat Tractors Limited 4,385,934 46.26
NIT & ICP National Bank of PakistanTrustee Department NI(U)T Fund 406,006 4.28
Banks, Development Financial Institutions, Non Banking Financial Institutions National Bank of Pakistan Faysal Bank Limited The Bank of Punjab Arif Habib Bank Limited 1,282,058 65,863 80,000 213,360 10,428 1,103,198 83,249 214,896 567,936 9,481,428 13.52 0.70 0.84 2.25 0.11 11.64 0.88 2.27 5.99 100.00
5 6 7 8
Insurance Companies Modarabas & Mutual Funds Public Sector Companies and Corporations General Public a. Local b. Foreign Others a. Joint Stock Companies b. Miscellaneous c. BCL Employees Total Share holders holding Ten Percent or more Voting Interest Millat Tractors Limited National Bank of Pakistan
Annual Report 2010
4,385,934 1,282,058
46.26 13.52
77
Proxy Form
Please quote your Folio No. as is in the Register of Members Folio No. I/We __________________________________________________________________________________ (NAME) of _________________________________________________________________________________ (FULL ADDRESS) in the district of______________________________________________________________________________________ being a member / members of BOLAN CASTINGS LIMITED and a holder of___________________________________ ____________________________ Shares No. _____________________________________________ hereby appoint Mr. / Mrs. / Miss ___________________________________________________________________________ (NAME) of ________________________________________________________________________________ (FULL ADDRESS) in the district of ___________________________________________________________________________________
_________________________ as my / our proxy to attend and vote for me / us and on my / our behalf at the 28th Annual General Meeting of the Company to be held at Registered Office, Main RCD Highway, Hub Chowki, Distt. Lasbela, Balochistan on October 25, 2010 at 1030 Hrs. and / or at any adjournment thereof. Signed this _________________________________________________ day of _________________________________ 2010
Signature on One Rupee Revenue Stamp (Signature should agree with specimen signature registered with the Company) Important: 1. 2. 3. A member entitled to attend and vote at the Annual General Meeting of the Company is entitled to appoint a proxy to attend and vote instead of him / her. The instrument appointing a proxy should be signed by the member (s) or by his / her attorney duly authorised in writing, or if the member is a corporation / company either under the common seal, or under the hand of any officer or attorney so authorised. This Proxy Form, duly completed, must be deposited at the Office of our Share Register M/s. Central Depository Company of Pakistan Limited, CDC House, 99-B, Block-B, S.M.C.H.S., Main Shahrah-e-Faisal, Karachi not less than 48 hours before the time of holding of the meeting.
Annual Report 2010
Head Office F-1, Hub River Road, S.l.T.E., Karachi Tel : +92-21-32579681, 32579819 Fax : +92-21-32573558 E-mail: bclho@bclpk.com
Factory & Registered Office Main RCD Highway, Hub Chowki, District Lasbela, Balochistan, Pakistan Tel : +92-853-363293, 363296 Fax : +92-853-363292 E-mail: bclhub@bclpk.com
www.bolancastings.com

Byco Limited

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Byco Limited

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Contents

results were proud of...

16,069metric ton up 12%

Corporate Objectives & Policies

Corporate Objectives & Policies

Environment Quality Policy

Annual Report 2010

Corporate Objectives & Policies

Statement of Ethics & Business Practices

Bolan Castings Limited 06

Corporate Objectives & Policies

Annual Report 2010

Company Secretary Chief Financial Officer Head of Internal Audit Auditors

Chartered Accountants Advocates & Legal Consultants

Legal Advisors Bankers

Annual Report 2010

Factory & Registered Office

Mr. Javed Munir

Mr. Sohail Bashir Rana

Mr. Latif Khalid Hashmi

Mr. Sikandar M. Khan

Mr. Shahid A. Hakim

Mr. Laeeq Uddin Ansari

Mr. Mian Muhammad Saleem

Mr. Mujtaba Ahmed

Mr. Muhammad Imran Rafiq

Name Title Appointment Committee membership External appointments

Name Title Appointment Committee membership External appointments

Bolan Castings Limited 12

Audit Committee Composition of Committee Chairman Mr. Laeeq Uddin Ansari

Members Mr. Latif Khalid Hashmi

Mr. Mian Muhammad Saleem Mr. Sajid Hassan*

Non-Executive Director Non-Executive Director Non-Executive Director

Annual Report 2010

Bolan Castings Limited 14

Corporate Affairs H.R. Materials Management

Process Inspection Final Casting Control Laboratory

Chief Executive Officer

Annual Report 2010

Foundry Dy. CEO Engineering

Bolan Castings Limited 16

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Annual Report 2010

Customers & Product Range

CUSTOMERS Tractors . Millat Tractors Limited . AI-Ghazi Tractors Limited

Bolan Castings Limited 18

Pouring of Molten Metal from an Induction Furnace

Communication with Shareholders

Communication with Shareholders

Annual Report 2010

Market Value Vs. Break - up Value of Shares

Communication with Shareholders

Notice of Annual General Meeting

Karachi: September 23, 2010 Notes :

M. Mushtaq Akhtar Company Secretary

Bolan Castings Limited 22

Communication with Shareholders

Notice of Annual General Meeting

Annual Report 2010

Cost of Sales 85%

Annual Report 2010

Selling & Admin 4% Retained Earning 2% Financial Charges 4%

Tax, Dividend & Other Charges 1%

Bolan Castings Limited 26

2009 (Rs. 000)

Annual Report 2010

164,061 69.8 84,150 256.2 (20,710) 16.5 (100.0) 63,440 (1,139.4)

96,647 23,627 (17,776) (11,955) (6,104)

Bolan Castings Limited 28

23,627 (17,776) (11,955)

(45,964) (23,737) (44,559)

21,070 91,148 11,019