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BOLAN CASTING LIMITED.
Annual Reports 2002
CONTENTS
Company Profile
Company Information
Notice of Annual General Meeting
Vision Statement & Mission Statemen
Statement of Ethics & Business Practi
Chairman's Review
Directors' Report to the Shareholder;
Pattern of Shareholding
Application of Revenue
| Decade at a Glance
Customer & Product Range
Statement of value added & its distribution
Statement of Compliance with Best Practices
of Code of Corporate Governance and
Auditors' Review Report thereon
Auditors' Report to the members
Balance Sheet
Profit and Loss Account
Cash Flow Statement
Statement of Changes in Equity
Notes to the Accounts
Company Profile
INTRODUCTION:
Being a modern and well equipped foundry and holding a major market share ot the tractor and automotive castings,
BCL can rightly claim to be the No. 1 foundry of its kind in Pakistan,
The company was incorporated on 15th July, 1982 as a public limited company by Pakistan Automobile Corporation
Ltd (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), U.K. and the
commercial production was started in July 1986. The plant is located at about 40 Kms from Karachi on the Main R.C.D.
Highway Sub Tehsil Hub District Lasbella Balochistan. The company was privatized and handed over to a group of
management under a joint collaboration of Millat Tractors Ltd. and the Employees of Bolan Castings Ltd. on 13th June,
1993. The plant has an approximate covered area of 18645 square meters, on surface area of 99274 square meters.
PRODUCTION CAPACITY:
The plant is designed to produce 6000 tons of tractor and automotive castings in grey and ductile iron like Engine block,
Cylinder head, Gearboxes, Axle housings, Hubs and Brake drums etc. So far, more than 180 different types of castings
have been successfully developed and supplied to various customers.
PRODUCTION FACILITIES:
The foundry has, a) Duplex melting facilities consisting of Twin Cold Blast Cupolas and Coreless Induction Furnaces, b)
High Pressure Moulding line, c) New Sand Preconditioning Plants, d) Resin Coating Plant Continuous Mixer, Shell Core
Machines, Silicate / Co2 Core Machines, e) Shot blasting, fettling, grinding, heat treatment and painting and f) Complete
Inspection, testing and quality control laboratory equipments. FORWARD INTEGRATION:
In the year 1998-99, setting up of in-house machining lines for various castings of tractor and trucks was under taken.
This has resulted in a considerable boost to BCL sales and profitability
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.
ISO 9002 CERTIFICATION:
BCL foundry was first of its kind to obtain ISO 9002 certification in April, 1999. The company is now planning to go for the
revised ISO 9001-2000 version of Quality Management System on expiry of our present 3 years certification period.
EXPORT MARKET:
After having some success in the Turkish market, orders from other European countries have also been received and
initial consignments dispatched to them. The company has planned to boost its export to 25% of its sales by the year
2005
Board Of Directors:
Mr. Sikandar M. Khan		Chairman
Mr. Latif Khalid Hashmi		Chief Executive
Mr. Sohail Bashir Rana		Director
Mr. Laeeq Uddin Ansari		Director
Mr. Javaid Ashraf		Director
Mr. Mian Muhammad Saleem		Director
Mr. Bashir Ahmed Chaudhry		Director
Mr. A. Rauf Chandio		Director
Mr. Manzoor Ahmed Sheikh		Director (NIT Nominee)
Audit Committee:
Mr. Laeeq Uddin Ansari		Director	Chairman Audit Committee
Mr. Mian Muhammad Saleem		Director	Member Audit Committee
Mr. Bashir Ahmed Choudhry		Director	Member & Secretary Audit Committee
Company Secretary:
Mr. M. Mushtaq Akhtar
Chief Financial Officer
Auditors: M/s Avais Hyder Zaman Rizwani		Chartered Accountants
Legal Advisors:
M/s Mohsin Tayeb All & Co		Advocates & Legal Consultants
Bankers:
M/s Habib Bank Limited
M/s Muslim Commercial Bank Limit
M/s United Bank Limited
M/s Standard Chartered Bank
M/s ABN Amro Bank
M/s Bank AI-Falah Limited
Factory &
Registered Office:
Main RCD Highway, Sub-Tehsil Hub,
District Lasbella, Balochistan, Pakistan
Ph# 0202-32381-2 Fax:0202-32524
E-mail: bclhub@cyber.net.pk
Web: www.bolancastings.com
Liaison Office:
F-1, S.l.T.E, Hub River Road, Shershah,
Karachi - 75730
Ph# 2566712-4, 2579681 Fax: 2573558
E-mail: bclho@cyber.net.pk
Web: www.bolancastings.com
Notice of Annual General Meeting
Notice is hereby given that 20th Annual General Meeting ofBolan Castings Limited will be held at the registered office
of the company Main RCD Highway, Sub-Tehsil Hub, DistrictLasbella, Balochistan Pakistan on Monday 28th October, 2002
at 10:00 hours to transact the following business:
A.  ORDINARY BUSINESS
1.   To confirm the minutes of the 19th Annual GeneralMeeting.
2.   To receive, consider and adopt the audited accounts of the company for the year ended 30 th June 2002 together with the Directors' and Auditors' reports
thereon.
3.  To approve payment of dividend as recommended bythe Directors.
4.   To appoint auditors for the year ending 30th June 2003and to fix their remuneration. Present auditors M/'s.
Avais Hyder Zaman Rizwani, Chartered Accountantsretire and being eligible offer themselves for re-appointment.
5.   To elect eight Directors as fixed by the Board of Directors for term of three years. The retiring Directors are: Mr.
Sikandar M. Khan, Mr. Sohail Bashir Rana, Mr. Laeeq Uddin Ansari, Mr. Javaid Ashraf, Mr. Mian Muhammad
Saleem, Mr. Bashir Ahmed Chaudhry Mr. A. Rauf Chandio, Mr. Manzoor Ahmed Sheikh and Chief Executive Mr. Latif
Khalid Hashmi.
B.  SPECIAL BUSINESS
To approve investment of Rs. 6,000,000/- in Baluchistan Wheels Limited by passing following special resolution:
"RESLOVED that an investment of Rs. 6,000,000/- in Baluchistan Wheels Limited (BWL) by way of acquisition
of 250,000 ordinary shares of Rs. 10/- each of BWL at an average price of Rs. 24/- per share be and is
hereby approved."
C.  ANY OTHER BUSINESS To transact any other business with the permission of
the Chair.
By Order of the Board
Karachi:
September 16, 2002
M. Mushtaq Akhtar
Company Secretary
Notes:
1.1.1 The Share Transfer Books of the company shall remain closed from October 15 to 28, 2002 both
days inclusive. Transfers received in order at the shares Department of the company at the address
given here under by close of working hours (17:30 Hrs.) on 14-10-2002 shall be treated in time for the
purpose of entitlement of cash dividend regarding the year ended June 30, 2002.
1.2.   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.
1.3    Duly executed proxies in order to be effective must be received by the company at its Liaison office atleast
48 hours before the meeting. 1.4    Any person who seeks to contest election to the office
of Director shall, whether he is retiring Director or otherwise, file with the Company, not later than fourteen
days before the date of meeting a notice of his intention to offer himself for election as a director.
1.5   Additionally pursuant to provisions of Code of Corporate Governance the declarations required as
follows shall also have to be submitted:
1.5.1 U/R 37 (ii) The director of listed Company shall at the time of filing (his) their consent to act as such
give a declaration in such consent that (he) they (is) are aware of (his) their duties and powrs under the
relevant laws and listed Company's Memorandum and Articles of Association and the listing regulations
of Stock Exchange in Pakistan. 1.5.2 U/R 37 (iii) No listed Company shall have a person
as a director who is serving as director of ten other listed listed Companies.
1.5.3 U/R 37 (iv) No person shall be elected or nominated as a director of a listed Company, if:
a)     His name is not borne on the register of national tax
Notice of Annual General Meeting
payers except where such person is a non-resident,and
b)    He has been convicted by a court of competent jurisdiction as a defaulter in payment of any loan to
a banking Company, a Development Financial Institution or non Banking Financial Institution or he, being a
member of a Stock Exchange has been declared as a defaulter as such by the Stock Exchange.
1.6   U/R 37 (v) A listed Company shall endeavour that noperson is elected or nominated as a director if he or
his spouse is engaged in the business of Stock brokerage (unless specifically exempted by the
Securities and Exchange Commission of Pakistan).
1.7    Representation of independent non-executive directorsincluding those representing minority interests on
the Board of Directors of the Company is encouraged.
1.8   Shareholders are requested to promptly notify the company of any change in their addresses at its
Liaison office, F-1, National Containers Building HubRiver Road, S.l.T.E. Karachi.
2.    STATEMENT UNDER SECTION 160(1)(B) OF THE
COMPANIES ORDINANCE, 1984The Board of Directors of Bolan Castings Limited in
its meeting held on September 16,2002 had approved Rs. 6.00 Million generated from its own sources, to
be invested in Baluchistan Wheels Limited for acquiring its 250,000 ordinary shares at average market price
of upto Rs. 24.00 each. In the opinion of Directors the investment is secured and shall derive benefits
for Bolan Castings Limited and its shareholders in shape of Dividend from BWL, who declares dividend
regularly. Market value of BWL shares is Rs. 22.22 (June 30, 2001) and earning per share of last three
years are Rs. 4.28, Rs. 4.31 and Rs. 3.62 as per its published accounts. The investment being made shall
periodically kept being reviewed by the Directors. The directors of the Company and their relatives have
no interest in the business/transaction except to the extent of shares held by them in the Company.
3,    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.
A.    FOR ATTENDING THE MEETING:
i)     In case of individual, the account holder or sub- account holder and/or the person whose securities
are in group account and their registration details are uploaded as per the Regulations, shall authenticate
his identity by showing his original National Identity Card (NIC) or original passport at the time of attending
the meeting.
ii)     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.
B.    FOR APPOINTING PROXIES:
i)     In case of individuals, the account holder or sub account holder and/or the person whose securities
are in group account and their registration details are uploaded as per the Regulations, shall submit
the proxy form as per the above requirement.
ii)    The proxy form shall be witnessed by two persons whose names, addresses and NIC numbers shall be
mentioned on the form.
iii)    Attested copies of NIC or the passport of the beneficial owners and the proxy shall be furnished with the
proxy form.
iv)    The proxy shall produce his (her) original NIC or original passport at the time of the meeting.
v)     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.
VISION
TO BE A PLAYER IN THE GLOBAL MARKET BY PROVIDING HIGH QUALITY FOUNDRY BASED ENGINEERING PRODUCTS.
MISSION
TO BE MARKET LEADER IN FOUNDRY TECHNOLOGY BY OFFERING COMPETITIVE HIGH QUALITY VALUE ADDED
PRODUCTS TO CUSTOMER'S SATISFACTION AND TO GROW THROUGH DIVERSIFICATION IN LOCAL AND EXPORTS MARKET,
WHILE SERVING BEST INTEREST OF SHAREHOLDERS.
Statement of Ethics and 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 Tractors 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.
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.
Society/Community
Compliance with the spirit of laws, timely payment of Government taxes and dues.
General
The Company neither support any political party nor contribute funds to groups or
associations whose activities promote political interests.
ENVIRONMENT POLICY
The Company follows environment friendly policies and adheres to its safety rules and
regulations.
Chairman's Review
DEAR SHAREHOLDERS
It is indeed a pleasure for me to welcome you at the 20th Annual General Meeting of Bolan Castings Limited and present
the Annual Audited Accounts and Reports of the Company for the financial year ended 30th June, 2002.
OPERATING RESULTS:
With the blessings of All Mighty Allah your Company succeeded in the Sale of 7260 MT of castings as against 9051 MT of
same period last year. The Sales Revenue declined by 19.5% to Rs. 378.139 million as compared to Rs. 469.752 million
of corresponding period last year due to decrease in orders from OEM's.
The Gross Profit for the period was Rs. 104.52 million as against Rs. 117.476 million for the preceding year. The
administrative and selling expenses were Rs. 11.650 million as compared to Rs. 14.504 million of last year. The financial
charges were Rs. 2.0 million while prior year adjustment amounted to Rs. 5.0 million. The profit before tax, however
improved to Rs. 97.9 million as against Rs. 97.1 million of last year. After accounting for taxation amounting to Rs. 22.6
million as against Rs. 35.5 million of last year, the profit after tax was recorded at Rs. 75.3 million as compared to Rs.
61.6 million of last year.
In line with the past record, yor Directors were pleased to recommend a cash dividend of 60% (Rs. 6.00 per share of
Rs. 10 each), as against 50% (Rs. 5.00 per share) in the last year.
CODE OF CORPORATE GOVERNANCE
Your Company has adopted the Code of Corporate Governance introduced by the Securities and Exchange Commission of
Pakistan (SECP) through Stock Exchanges and the Board of Directors shall ensure compliance of requisite provisions.
MARKETING
The export activities of your Company are bringing positive results. During year under review the exports increased to
Rs. 8.703 million as against Rs. 5.245 million last year. The increasing trend is expected to continue and export figures
during coming year are likely to be better than the past.
EMPLOYEES' RELATIONS
The cordial relations between the management and employees continue to remain a source of strength for the Company.
FUTURE OUTLOOK
The expected change in national political scene due to October, 2002 elections shall have their impact on economic, industrial
and trade policies of Pakistan. Given the continuity in major economic policies there are reasons to believe that volumes
of tractor industry are likely to be close to or better than existing. Hence supply of our castings to local tractor and
automotive industry would continue as per plans.
ACKNOWLEDGEMENT
I would like to thank all the officers and workers of the Company for their dedication and commitment and the
contributions of all concerned that helped Company in achievement of better operating results.
SIKANDAR M. KHAN
CHAIRMAN
Karachi:
September 16, 2002.
Directors of your Company have pleasure in presenting Annual Report and the Audited Financial Statements of the
Company for financial year ended June 30, 2002.
Financial Results
				2002	2001
				Rupees	Rupees
Profit after taxation				75,293	61,638
Add: Accumulated profit
brought forward				712	701
Profit available for appropriation				76,005	62,339
Appropriation:
Proposed cash dividend 60%
(2001:50%)				33,152	27,627
Transfer to general reserves				42,000	34,000
Accumulated profit carried forward				853	712
Earnings per Share
The earnings per share for the year ended June 30, 2002 was Rs, 13.63 as against Rs.11,16 of preceding year.
Directors
During the year Mr. Hammad Mehmood Director NIT nomiee had resigned and in his place Mr, Manzoor Ahmed Sheikh
Director NIT nominee was appointed. The present term of three years of the Board of Directors
of the Company is ending this year and Directors are to be elected for the next term in the forthcoming AGM.
Auditors
The present Auditors M/s. Avais Hyder Zaman Rizwani, Chartered Accountants, retired and being eligible have offered
themselves for reappointment as auditors of the Company for the year ending June 30, 2003.
The Audit Committee of Board of Directors of the Company
recommended to the Board regarding the reappointment of M/s. Avais Hyder Zaman Rizwani Chartered Accountants as
auditors for financial year 2002-2003.
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
a)   The financial statements, prepared by the management of the Company present fairly its state of affairs, the
results of its operations, cash flows and changes in equity.
b)   Proper books of accounts of the Company have been maintained.
c)   Appropriate accounting polices have been consistently applied in preparation of financial statements and<