mcnally bharat

India's premier turnkey engineering and execution company was set up in 1961, as a joint venture between Bird & Co. Ltd., India and McNally Pittsburgh Inc., USA, the world's largest manufacturers of coal washeries. Another technical collaboration agreement followed in 1966 with Kennedy Van Saun Corporation, USA, which gave access to their wealth of experience in the field of minerals processing.
Today, the company has the unique distinction of being stewarded by two of India's biggest business houses: the blue-chip Williamson Magor Group and the industry major, G. P. Birla Group.
Over the years, MBE has played a pioneering role in the emerging areas of bulk material handling, coal and mineral beneficiation, pyro- processing and related auxiliaries. It has executed more plant projects than any other company in India - nearly 150 - in various core industries on a turnkey basis from concept to commissioning, including the design, manufacture and supply of major equipment, in-house. MBE presently comprises of two independent operating divisions - Projects Division, Calcutta and Products Division, Kumardhubi - and a wholly owned Subsidiary - McNally Bangalore Industries Ltd. (MBIL in Bangalore. MBE's commitment to quality is best reflected in the ISO 9001 accreditation that both the Divisions and the Subsidiary have received. In 1999-2000, the company has acquired 90% of the equity in Eroterv Waagner Biro, the company's present collabororators which enables the company to bid internationally. Also during the year, the company was successful in getting first Coal Handling Plant order and Ash Handling using the technology of Eroterv Waagner Biro of Hungary at its plant at Neyveli. The company finalised the collaboration agreement with Konecranes of Finland for manufactures of Port Cranes. It also adopted technology for design and manufacture of Vibrating Screen in line with Siebtechnik,Germany. some details from directors report of 0405

FINANCIAL RESULTS: The Accounts of the current year have reflected a profit of Rs.34.5 million before taxes on an enhanced turnover of Rs.2865.3 million. The various steps taken to exploit the growth of the infrastructure sectors such as Highways, Ports, Mining, Mineral Processing and Water have enabled the Company to end the year under review with an outstanding order book of Rs.7000 million. The forward profit projections of the Company reflect this improved status and your Board expects an increase in the turnover and operating profits of the Company for the year 2005-2006. In view of the improved performance, the Board has declared a token Dividend of 2.5% on the equity shares of the Company, subject to the approval of the Members.

OPERATIONAL REVIEW & PROSPECTS

TURNKEY INFRASTRUCTURE PROJECTS...............All our new Business Units have made quick inroads in the market, completing the projects ahead of schedule and have a bright future, a summary of which is as under: Material Handling ; The Company has bagged orders for 3 major Coal Handling Plants totaling Rs. 3930 million from WBPDCL & DPL for Sagardighi, Santaldih & Durgapur Power Plants. All the 3 projects are currently progressing as per schedule. The Company has also commissioned the Green Anode Plant (Rs. 637 million) for Balco Smelter Project at Korba in a record time of 19 months. Mineral Benefciation; The Company has successfully commissioned the Hindustan Zinc Expansion Project at Rampura Agucha. This project (Rs. 770 million) has been executed under an Agreement with Outokumpu Technology Oy of Finland and has been commissioned in a record time.

Port Handling : During the year 2004-05, 5 Nos. ELL Cranes for Kandla Port Trust have been commissioned. The progress of execution of 300 Ton Goliath Gantry Crane for Cochin Shipyard and 2 Nos. RMQC for Haldia Port are satisfactory. The Company has also bagged orders for 4 Nos. Grab Unloaders from MPT Goa for Rs. 324 million this year.

Ash Handling : Ash Handling Plant Projects for NTPC, Rihand and GMDC, Akrimota Thermal Power Stations are now in final stage of erection. The Company is likely to get orders for more such projects in the near future.

Water Management Systems : During the year, the Company has successfully commissioned TWAD Board Water Supply Project, Ahmedabad City Water Supply Project and Raw Water Pipeline Project for INDAL, Hirakud. 4 More Water Supply Projects for Rajasthan Urban Infrastructure Development Project are under various stages of execution. Highways The Road Project at Gajol-Hilli sector is progressing as per the plan. During the year, the Company successfully completed NH2 sector being constructed on behalf of Gamuda, Malaysia. MANUFACTURING During the year under review, the operation at Kumardhubi has improved substantially.The unit started breaking even from November 2004 onwards and continues to earn profit from February,2005. There has been marked improvement in quality and delivery commitment and customer satisfaction has improved. During the year, the Fixed costs at the unit, particularly employment cost has been reduced under early separation scheme. The operation of the unit is expected to further improve in the coming years. The unit is maintaining healthy order book. EWB-MBE INTERNATIONAL KORNYEZETVEDELMI KFT EWB LIMITED The performance of the subsidiary during the year is satisfactory. The unit has bagged strong order book in east Europe and South-East Asia. Your Company continues to receive valuable technical support from its subsidiary in Dry Ash Handling Technology, which is used in Power Projects. PROJECT FUNDING The Company has been examining various growth opportunities from time to time in line with its objective of becoming globally competitive. While it is envisaged that the internal generation of funds would partially finance the proposed investments it is thought prudent at this stage for the Company to raise a part of this fund requirement through the issue of securities in the domestic/international markets as set out in the accompanying Notice. It is therefore proposed to issue appropriate securities for an amount not exceeding the equivalent of US$ 7 million in one or more tranches in such form on such terms and timing and in such manner at such price or prices and at such time as may be considered appropriate to the various categories of investors in the domestic /international markets as set out in the Resolution for the approval of the Members. The Board after elaborate consultations and considerations has thought it prudent to cancel the proposed Rights Issue. JAYAMKONDAM LIGNITE POWER CORPORATION (JLPC) JLPC during the year has converted a part of the loan into its share capital. As per the latest information, Neyveli Lignite Corporation has stepped into the project as new partner. INDUSTRIAL RELATIONS Industrial relations during the period under review have been cordial and your Directors record their appreciation to the workers, staff and officers at all levels for their sincerity and hard work throughout the year.

MANAGEMENT DISCUSSION & ANALYSIS REPORT INDUSTRY STRUCTURE AND DEVELOPMENT The infrastructure sector covers the services of transportation (railways, roads and road transportation, ports and civil aviation) communications (telecommunications and postal services), electricity and other services such as water supply and sanitation, solid waste management and urban transport. Construction activity is an integral part of a country's infrastructure and industrial development and hence can rightly be termed as the basic input for socio - economic development. Its presence and contribution is immense in terms of providing huge opportunities for direct and indirect employment. Construction sector has grown at 6.3% between Financial Years 1995 to 2003. It contributes about 5.2% of the GDR (Source: CMIE) 1. Infrastructure sector and Engineering Industry is poised for major growth in next 5 years. 2. Highways construction sector is expecting further 20000 KM order finalization under N-S-E-W sector of NHDP of NHAI. 3. With Indian economy targeting an annual growth rate of 8-10% in the future. Major modernization of existing parts is expected shortly and the process has already started. 4. Under special focus of Prime Minister's Special Fund, major thrust have been given for augmenting water supply to the dry-zone of the country. 5. Major investments are expected under the private mining sector specially in the steel, aluminium, zinc and copper sector. 6. Major expansion is expected in power sector under the public sector banner of NTPC, State Power Corporations and also under the Private Sector Power Generation.

OPPORTUNITIES & THREATS

Obviously this growth in infrastructure provides the Company with several opportunities not only for business but for business at more profitable levels even though competition remains substantial. The principal threat remains from the public sector companies, which continue to enjoy purchase preference despite all protestations to the contrary. The other major threat is the inordinate rise in import costs, particularly steel, which adversely affect contract with fixed price.

SEGMENTWISE OR PRODUCT WISE PERFORMANCE The Company is engaged in turnkey projects in infrastructure and related manufacturing activities and therefore the question of segment-wise performance does not arise.

OUTLOOK : The outlook for the year 2005-06 is certainly stronger than that of the last three years. The Company has taken some steps in mobilising fund and non-fund facilities to finance the growth in business that it is confident of achieving.

RISKS & CONCERNS : While the Government of India has taken major steps in relaxing norms and providing growth inputs for all sections of industries there are some sectors like power and labour reforms that still require attention, only after which Indian Companies can be fairly competitive internationally

wait for a correction......good support arnd 110 levels