MIRA INFORM REPORT

Report Date :

15.11.2007

IDENTIFICATION DETAILS

Name :	SHREE GANESH FORGINGS LIMITED
Registered Office :	412, EMCA House, SBS Road, Fort, Mumbai – 400 001
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	18.09.1972
Com. Reg. No.:	11-16008
CIN No.: [Company Identification No.]	U17200MH1972PLC06008
TAN No.: [Tax Deduction & Collection Account No.]	MUMS43499B
PAN No.: [Permanent Account No.]	AAACS7821E
Legal Form :	A public limited liability company. The company’s shares are listed on the Stock Exchange.
Line of Business :	The company is engaged in manufacturing and sale of Flange Fittings, Automotive Components, Defence & Agriculture Components.

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING			STATUS		PROPOSED CREDIT LINE
41-55		Ba	Overall operation is considered normal. Capable to meet normal commitments.		Satisfactory
	Maximum Credit Limit :			USD 1446840
	Status :			Satisfactory
	Payment Behaviour :			Usually correct
	Litigation :			Clear
	Comments :			Subject is a well established company having satisfactory track. Financial position is satisfactory. Trade relations are fair. Payments are usually correct and as per commitments. The company is doing well. It can be considered good for any normal business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	412, EMCA House, SBS Road, Fort, Mumbai – 400 001
Tel. No.:	91-22-66311054 / 55
E-Mail :	91-22-22625217
E-Mail :	shreeganeshforgings@vsnl.com
Website :	http://www.shreeganeshforgings.com
Corporate Office & Works :	C/ 3C, Trans Thane Creek Industrial Area, Pawane, Thane Belapur Road, Navi Mumbai-400 705
Tel. No.:	91-22-2768 1193 / 763 2024 / 763 2026
Fax No.:	91-22-767 0267 / 262 5217
Administrative Office :	5/5A, Kamnawala Chambers, 4th Floor, Sir P. M Road, Fort, Mumbai-400001, Maharashtra, India
Tel. No.:	91-22-262 4627
Fax No.:	91-22-262 5217
E-Mail :	shreeganeshforgings@vsnl.com
Website :	http://www.shreeganeshforgings.com

DIRECTORS

Name :	Mr. Deepak B. Sekhri
Designation :	Chairman Cum Managing Director
Date of Birth/Age :	44 Years
Qualification :	B. Com.
Experience :	25 Year
Date of Appointment :	1981
Name :	Mrs. Anita D. Sekhri
Designation :	Executive Director
Date of Birth/Age :	47 Years
Qualification :	B. A.
Experience :	14 Year
Date of Appointment :	1993
Name :	Mr. Gian Prakash Singh
Designation :	Director
Name :	Mr. Albert D' Souza
Designation :	Director
Name :	Mr. Pal Uppal
Designation :	Director
Name :	Srabani Sana
Designation :	Company Secretary
Name :	Mr. Anand Vardhan
Designation :	Director
Qualification :	B.Com
Date of Appointment :	19.01.2005
Name :	Mr. Krishan Kumar Khurana
Designation :	Director
Date of Birth/Age :	50 years
Qualification :	MA, LLB
Date of Appointment :	19.01.2005

KEY EXECUTIVES

Name :	Mr. Sreekumar K
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares	Percentage of Holding
Shareholding of promoter and Promoter Group
Indian Promoters	4708368	37.66551%
Persons acting in concert	1885243	15.08137%
Non promoter Holdings
Institutional Investors:
Mutual Funds / UTI	1694285	13.55377%
Others
Private Corporate Bodies	1423117	11.38450%
Indian Public	2647607	21.18006%
NRIs/ OCBs	106456	0.85162%
Any Other (Shares In Transit)	35398	0.28317%

BUSINESS DETAILS

Line of Business :	The company is engaged in manufacturing and sale of Flange Fittings, Automotive Components, Defence & Agriculture Components.
Products :	v Flange Fittings v Automotive Components v Defence & Agriculture Components
Exports :
Countries :	USA, Canada, U.K., Ireland, Europe ( Germany, Netherlands, Belgium, Denmark, Spain, France, Greece, Austria, etc ) and Middle East markets

PRODUCTION STATUS as on 31.03.2007:-

Particulars	Unit	Installed Capacity	Actual Production
Steel	MT	---	4953
Steel Forgings	MT	11000	4952.72

GENERAL INFORMATION

No. of Employees :

1500

Bankers :

· Central Bank of India

Nariman Point, Mumbai – 400 021, Maharashtra, India

· State Bank of Indore

214, Empire House, D. N Road, Fort, Mumbai Branch

· State Bank Of Hyderabad

Overseas Branch, Ashok Mahal, 1204, Tulloch Road, Colaba, Mumbai-400039

· State Bank of Patiala

Facilities :

Particulars	(Rs. In million)
SECURED LOANS	31.03.2007	31.03.2006
From Banks
Cash Credit	127.674	25.977
Packing Credit	237.297	173.958
Export bills Discounted	0.000	11.831
Term Loan	317.151	59.916
Total	682.122	271.682
From Others
Car Loan from Kotak Mahindra Primus Limited	1091.123	1.395

	(Rs in millions)
UNSECURED LOAN	31.03.2007
SLOC A/C – SB of Hyderabad	14.400
SLOC A/C – S B of indore	9.042

Banking Relations :	Satisfactory
Auditors :
Name :	1. D.R Khanna & Company Chartered Accountants
Address :	53-55, Bagdi Niwas, Nath Madhav Path, Khattar Galli, Mumbai - 400 002
Tel. No.:	91-22-23888805
Fax No.:	91-22-23885764
Name :	2. R K Choudhary and Associates Chartered Accountants
Address :	Mumbai
Associates/Subsidiaries :	· Chandramouli Silk Mills · Dean Akshatt Exim (P) Limited · Namha Profiles Inc. · Namha Euro

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
17500000	Equity shares	Rs. 10/- each	Rs.175.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
12500474	Equity shares	Rs. 10/- each	Rs. 125.004 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		125.004	125.004	75.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		236.706	215.612	86.474
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		361.710	340.616	161.474
LOAN FUNDS
1] Secured Loans		683.214	273.076	134.241
2] Unsecured Loans		23.442	0.000	0.000
TOTAL BORROWING		706.656	273.076	134.241
DEFERRED TAX LIABILITIES		15.893	4.826	2.295
TOTAL		1084.259	618.518	298.010
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		324.036	176.237	132.561
Capital work-in-progress		40.612	16.211	4.145
INVESTMENT		104.973	3.406	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	585.174	358.176	193.320
	Sundry Debtors	381.645	247.148	72.106
	Cash & Bank Balances	7.095	107.857	18.138
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	236.991	132.029	87.824
Total Current Assets		1210.905	845.210	371.388
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	540.392	384.419	192.890
	Provisions	61.990	44.921	18.186
Total Current Liabilities		602.382	429.340	211.076
Net Current Assets		608.523	415.870	160.312
MISCELLANEOUS EXPENSES		6.115	6.794	0.992
TOTAL		1084.259	618.518	298.010

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		972.591	923.186	573.502
Other Income		20.574	25.462	0.000
Total Income		993.165	948.648	573.502
Profit/(Loss) Before Tax		66.280	66.930	36.227
Provision for Taxation		26.505	19.365	8.127
Profit/(Loss) After Tax		39.775	47.565	28.100
Earnings in Foreign Currency :
	FOB value of Export	312.552	480.439	358.731
	Freight, Insurance and Commission of Exports	12.624	7.504
Total Earnings		325.176	487.943	358.731
CIF value of Import		25.318	3.351	NA
Expenditures :
	Cost of Goods Sold	488.086	355.992
	Raw Material Consumed	315.028	441.253
	Increase/(Decrease) in Finished Goods	[156.160]	[147.505]
	Employees costs	18.397	15.980
	Excise Duty	20.509	22.229
	Interest	42.854	34.296
	Other Expenses	174.303	144.839
	Depreciation & Amortization	26.329	17.094
Total Expenditure		929.346	884.178	537.275

QUARTERLY RESULTS

Year	30.09.2007	30.06.2007
Type	2^nd Quarter	1 st Quarter
Sales Turnover	245.700	238.800
Other Income	0.000	0.100
Total Income	245.700	238.900
Total Expenditure	201.600	203.000
Operating Profit	44.100	35.900
Interest	10.700	11.700
Gross Profit	33.400	24.200
Depreciation	6.000	6.000
Tax	4.100	4.100
Reported PAT	23.300	14.100

KEY RATIOS

Year	31.03.2007	31.03.2006	31.03.2005
Debt-Equity Ratio	1.64	1.04	1.58
Long Term Debt-Equity Ratio	0.67	0.16	0.14
Current Ratio	1.26	1.22	1.12
TURNOVER RATIOS
Fixed Assets	3.13	4.75	3.96
Inventory	2.06	3.29	3.24
Debtors	3.09	5.69	8.40
Interest Cover Ratio	2.55	2.95	2.79
Operating Profit Margin(%)	13.67	12.77	12.47
Profit Before Interest And Tax Margin(%)	11.23	11.16	10.56
Cash Profit Margin(%)	6.53	6.85	7.17
Adjusted Net Profit Margin(%)	4.08	5.24	5.26
Return On Capital Employed(%)	13.96	25.56	26.71
Return On Net Worth(%)	13.28	24.22	34.29

LOCAL AGENCY FURTHER INFORMATION

DIRECTOR REPORTS:

OPERATIONS: 
For the company, the year 2006-07 was a year of acquisitions. The company has established a successful joint venture with Geldbach UK Limited, a company based in the West Midlands of UK. Geldbach is also a marketing arm which supports all of Shree Ganesh's main customers. 

The Company has acquired a reputed forging company in Europe, Hertecant N.V. during the previous year through their subsidiary company SGFL NV incorporated in Netherlands. The turnover of this company for the last quarter ended 31st March 2007 was Rs.248.41 millions with after tax profit of Rs.28.976 millions 

In addition, they acquired ELFE, a trading company in France. The turnover of this company for the last quarter ended 31st March 2007 was Rs.5.611 millions with after tax profit of Rs.0.762 millions. Subject has 100% holding in both these companies, through their subsidiary SGFL N.V.

Netherlands. 
The company continued with profitable growth during the year. The appreciation of the rupee coupled with the sharp rise in stainless steel prices to a certain extent slowed down the forward gallop of the company during the period. The price of Nickel has been extremely volatile during the last year. This is reflected in the drop in export of stainless steel products. To offset the reduction in export, the company has concentrated in carbon steel products and in developing the domestic market. The management has identified carbon steel flanges and fittings which provides a better margin as the core product replacing stainless steel products.

Since the price of carbon steel is far less compared to stainless steel, though the production has gone up, the turnover did not show corresponding increase, 

During the year under review, the turnover of the company was Rs. 972.592 millions as against the previous financial year turnover of Rs. 923.186 millions recording a modest increase of 5.4%. The Profit after tax for the financial year under review is Rs.39.776 millions against Rs. 47.566 millions for the corresponding previous financial year. 

PROSPECTS: 
Indian Forging Industry Prospects: 

The accelerated growth in GDP has given a boost to the engineering sector. Like other counterparts in the manufacturing sector, the forging industry is also reaping the benefits of accelerated growth. Acquisition of forging units abroad has helped the Indian Forging Industry to consolidate its share in the foreign market. Automobile sector accounts for 65% of the forging consumption. The rest comprises of engineering industries, chemical process industries, petrochemicals, oils etc. While the medium and large scale manufacturers cater to the Original Equipment market, the small scale manufacturers prevail in the replacement market. 

The growth envisaged for forging products is from two areas, the domestic market and the export market. With the recent discovery of large oil and gas deposits in the Krishna Godavari basin of Andhra Pradesh, off Mumbai coast, states of Rajasthan, West Bengal and Assam, the oil and petrochemical industry has got a fresh momentum. Apart from this, the sharp growth in the per capita income of the middle class has boosted the automobile sector which paved many multinationals to enter the market.

These recent developments are bound to augment the forging sector, In addition foreign companies are increasingly turning to India for outsourcing the components.

COMPANY PROSPECTS: 

Subject is continuing to pursue its ambitious plans for expansion and recognition in the international market. Today, the company is a preferred supplier of high class forgings, flanges and pipe fittings all over the globe. With an unwavering commitment to quality, honesty, they believe that maintaining long term relationship with clients is the path to the future. 

The is one of the very few Indian companies making substantial investment in high tech, state of the art equipment. The project of doubling the forging capacity to 22800 tonnes by setting up two new fully automated forging lines of 4000 tonnes and 2500 tonnes respectively is in progress.

Apart from this, installation of 48 fully robotic CNC Machining lines will increase the machining capacity by 300%. Of these, 16 Robotic CNC machines have been installed. These are expected to be completed after December 2007. This expansion will allow the company to not only increase capacity, but also develop new product lines, including components manufactured from alloys such as Monnel, Inconel and Super Duplex. 

Their acquisitions, Hertecant N.V. and ELFE, France will act as two independent power houses. This will ensure that they are well positioned to take advantage of future opportunities as they rise. 

The combined effect of these business operations is that Subject will consolidate its global presence and reputation. 

MANAGEMENT'S DISCUSSION AND ANALYSIS:

Industry Structure and Development: 

The Indian Forging Industry is a major contributor to the manufacturing sector of the Indian Economy. The Indian forging industry can be categorized into four sectors - large, medium, small and tiny. A major portion of this industry is made up of small and medium units / enterprises (SMEs). Large enterprises come to only 5% of the total number of units, whereas medium and small units comprise around 100 units. 

Forging was considered to be a highly labour intensive industry. But with increasing globalization it has become more capital intensive. Subject is one of the very few Indian companies making substantial investments in high tech, state of the art equipment, rather than relying on an abundance of cheap labour. 

Domestic and Export Performance of the Indian Forging Industry.

The year 2005-06 (April-March) was a good year for the Forging industry. Overall production of forgings increased by about 27% to reach about 9,29,000 tonnes in the year. Capacity utilization also improved considerably from 40-50 percent in earlier years to 85 per cent of the additional capacity added during the last two years (1.5 Million approx) inclusive of overseas aquisitions. 

While the automotive industry is the main customer for forgings, the industry's continuous efforts in upgrading technologies and diversifying product range have enabled it to expand its base of customers to foreign markets. The Indian forging industry is increasingly addressing opportunities arising out of the growing trend among global automotive OEMs to outsource components from manufacturers in low-cost countries. 

The industry's exports recorded a growth of almost 27% in 2005-06 and have reached a level of US$ 310 million. Technological developments have also contributed to export growth. The industry's major markets are USA, Europe and China. However, only about 30-35 manufacturing units are currently directly engaged in exports. Efforts of AIR are to attract more manufacturing units to export. This is being done through increased facilitation by way of organizing Training Sessions, Workshops, Trade Fairs Exhibitions, Buyer-Seller Meets etc. The technology gap is therefore, being sought to be bridged so that companies are prepared to face challenges of global markets. 

Inorganic growth is another strategy being used by Indian companies to expand their global footprint and establish a global presence in some of the world's largest markets. 

In the past two years many Indian companies acquired Forging Companies in Europe, USA, China etc. SGFL also has the pride of a place in this group.

It is expected that Indian companies will continue to aggressively pursue inorganic growth opportunities in future. 

On the domestic front too many Indian forging companies (most of whom are AIR members) have posted excellent results in 2005-06. 

Many large and medium forging companies also took important initiatives in capacity expansion modernization, cost rationalization etc. Notwithstanding this, the industry had also to contend with its share of problems. It had to bear the brunt of acute power shortages and steep and frequent increases in the cost of major inputs like power and fuel, forging quality steel etc.

For a major part of the year, the industry has grappled with this issue and managed to keep floating under this adverse circumstances. 

User industries are also reluctant to increase prices across the board. The industry is not fully compensated for increase in conversion cost on account of steep increases in power, fuel etc. 

In addition, increasing cost of other inputs like petroleum products, power, implementation of stringent environment pollution norms etc., are challenges that the industry had to face. 

Opportunities and threats: 

Major challenges on domestic and export fronts that the forging industry is facing are as follows. 

Domestic: 

· Steep rise in the price of stainless steel 

· Inefficient economies of scale. 

· Compliance with stringent environment norms. 

· Inadequate backward/forward linkages. 

· Difficulties associated with consolidation of capacities.

·   Availability of trained man power at shop floor and managerial level. 

· High attrition rate, especially at the senior management level.

Exports:

· Impact of the volatile Foreign exchange rates especially the failing dollar. 

· Reluctance of the overseas buyers to compensate for the steel price increases in India which were around 1 to 1.5 times more than international prices.

·  Inadequate investment in technology up gradation. 

· Inadequate R and D and training for coping with the demands of the export market.

· Inadequate testing and validation facilities for smaller forging companies. 

· Inadequate overseas marketing support facilities. 

· Cost competitiveness adversely affected due to constant cost escalation. 

· Customers turning away from the Indian and Chinese markets due to low quality, low cost products offered by some companies. 

Future Outlook: For the General Economy (Global and Indian) 

The world economy expanded strongly in 2006. The expansion was broad-based; while the US economy slowed somewhat in the second half of the year, the momentum of growth in Europe and Japan continued to be firm. Robust growth in China and India led the strong macroeconomic performance of emerging and developing countries. Strong growth has also been recorded in low-income countries. 

In the emerging market economies (EMEs), growth has continued to be firm on account of availability of financial resources, strong commodity prices and abundant global liquidity. Concerns have, however, arisen regarding the sustainability of some of these factors. Growth forecasts for 2007 continue to be optimistic, but some uncertainties persist, especially with the Chinese economy which accelerated by 10.7 per cent in 2006 and contributed about a tenth of global growth. 

Any slowdown in the Chinese economy would ultimately affect the countries which supply inputs for manufacturing activity in China. 

 The Reserve Bank of India forecasts 8.5% GDP growth in 2007-08. This is achievable, with an expectation of 95% normal monsoon. 

The automobile sector is booming. New projects are coming up for manufacture of cars costing Rs. 0.100 millions the future is very bright for the auto industry. Though Subject has decisively restricted their dependence on auto sector, the boom in auto sector will invariably boost the Indian forging industry. V. Financial and operating Performance: 

The financial and operating performance has already been discussed in the Directors' Report. Earning per share (EPS) were Rs.3.18 as against Rs.3.81 for the previous year. A dividend @ 10% has been proposed, subject to the approval of the shareholders. The corresponding dividend payout will be Rs.12.500 millions in addition to tax of Rs.2.104 millions payable by the Company as tax on distributable dividend. 

Future Prospects and Business plans of the Company: 

Present Scenario and Future prospects: 

The major part of the company's turnover earlier came from export of stainless steel products. The price of stainless steel shot up sharply during the year, thereby reducing the margin. The company concentrated on carbon steel products, the cost of which is less but gives better margin.

This increased their volume of production, but the turnover did not have a corresponding increase. 

The process of more than the doubling the forging capacity from 11000 MT to 22800 MT at the existing location is expected to be completed after September 2007. The forging presses will be supported with induction heating for material heating. Press forging have the following advantages; 

· Tooling costs will get reduced as the forging dies will last longer. 

· Part sticking in the cavity is eliminated as ejector system is provided in tooling.

· Compared to hammers, production time required is less. 

· Assured quality for dimension and better grain structure. 

· Less noise pollution.

· Input wt is less for producing components by 3 to 5%. 

· Set up time will reduce by 50% compared to hammer forgings. 

Along with the press forgings the installation of 48 C.N.C Machines will increase the machining capacity by 300%. These CNC machines will have the following advantages:

· Improvement of machine utilization.

· Reduction of manpower.

· Reduction in material handling costs. 

· Less lead time. 

· Less rejection and improved qualities. 

· Assured production. 

· Reduced handling damages. 

 The investment in automation which Subject has made is quite exceptional for an Indian Company and will enable it to compete alongside the most advanced European and American companies at a time when most Indian companies, because of the cheapness of labour, are still very much involved with labour intensive production processes. 

Due to this expansion Company is becoming competent to supply not only in automobile sectors but also in nuclear activities, power sector, refineries etc. Many new opportunities are expected from the car and vehicle segments also. The Company has established his name as quality manufacturer in foreign market. So the company will not face any difficulty to procure orders to match with increase in capacity. 

Future Prospects: 

 Acquisitions: 
The Company has already acquired one of the largest manufacturers and stockists of stainless steel flanges in Europe, M/s. Hertecant N.V. They have also acquired ELFE France, a distribution company known for its quality and shorter delivery times. 

Subject has also entered into a joint venture with Geldbach UK. Geldbach UK supports all of Shree Ganesh's main customers such as Woolsey Group, BSS Group, Amari Metal centre, Metalfin and many others. 

Risk Management: 

The risk assessment and minimization procedures are reviewed by the Board of Directors of Subject periodically. The Chief Executive Officer (CEO) is responsible for the overall risk governance in the Company. The Audit Committee of the Board provides oversight and reviews the risk management policy annually. 

Industry Risk mitigation: 

Forging industry has a prominent place in Engineering industry. Most of the Indian forging firms are heavily dependent on the automobile sector. Subject have intentionally kept away from total dependence on i the auto sector. 

Technology risk mitigation: 

The company has already installed the latest state of the art machines. This will mitigate to a certain extent technology risk. The company always keeps its eyes and ears open to new developments in the forging industry. 

Raw material risk mitigation: 

The company ensures that they buy only the right raw materials for their products. Their entire value chain is ISO 9000 and PED approved which means that they must buy their raw materials from similarly! approved mills. 

People risk mitigation: 

The Company is fully equipped with sufficient number of efficient employees who are trained toil do the job. Hence they fully understand how to deliver top quality products. They take great pride in their work force and invest heavily in them. All employees are given equal opportunity to learn and further improve their skills. As a result they enjoy tremendous loyalty from their people. 

Fixed Assets:

· Land (Leasehold),

· Factory Building,

· Office Flat,

· Plant & Machinery,

· Furniture & Fixture,

· Office Equipment,

· Computer and software

· Vehicles.

· Other Assets

Other information:

The company has acquired two companies in Europe, during the previous year through subsidiary company SGFL BV.

WEBSITE DETAILS:

The company with the inheritance of excellence and customer satisfaction as its primary directive principle is in the role segment of forgings started its journey in 1982 in the forgings sector. Company’s commitment to quality and adherence to international standards has made it a well – known name in forgings. Its strength lies in its wide range of forgings products like flanges, fittings, forge valve to automobile spares etc. which are manufactured and exported worldwide. Company is groomed by Mr. Deepak Sekhri(CMD) and his wife Mrs. Anita Sekhri and both of them have more than 23 years of experience in the forgings industry. Their primary directives are customer satisfaction and product excellence, their vast experience in the forgings business and have helped the Company in achieving various new milestones.

Manufacturing unit of subject is located at Pawane in Navi Mumbai and being an Industrial area, skilled and unskilled labour force is available at reasonable rates. Availability of Power without much interruption and from the transportation aspect area is well connected with roads and rails. Company is fully equipped with a team of highly qualified and experienced technocrats, manning various specialized departments such as Design and Estimation Department, Die and Tool making Facility, Cutting Unit, Heat Treatment Department, Grinding Department, Fettling Department, Testing and checking Department and Machining Department

Subject shares brand repute in the countries like Germany, Netherlands, Belgium, France, Denmark, Italy, Spain, Greece, U.K, U.S.A., Australia, Canada and Middle East. Over the years Company has developed Special grades of stainless steel, duplex steel, special chrome molly, special alloy steel, Carbon steel etc. Due to its dedicated efforts at providing quality products, Company enjoys a good reputation and this has translated into increased turnover from exports as well as from domestics. Subject is always committed to good quality and has earned itself all around reputation and trust. The company was awarded by Engineering Export promotion Council “Certificate of Excellence for the years 1990-91, 1992-93, 1994-95, and 1998-1999”.Products of the company confirm the international standard such as A. N. S. I, EN-1092-1, D. I. N, A. S. T. M, B. S, M. S. S, TUVCERT / RWTUV, ISO 9001:2000,.Besides these , the entire process facilities have also been surveyed by various Inspection Agencies such as Bureau Veritas, N.C.P.L., E.I.L., Indian defence sector, I.B. R, UHDE, American Bureau of Shipping. The company is the only one Company in India who is approved by Syncrude Canada and obtain CRN No from all 13 provinces of Canada

Before June 2005 subject was a closely held Company and 100% ownership was with the promoters group. For the first time in 2005 Company come out with an IPO and successfully completed its IPO with 24.54 times over subscription. Now Company is listed with BSE, (Stock Exchange Mumbai) and at Present Promoters holdings are 60% equity Capital of the Company and rest 40% holds jointly by MUTUAL FUNDS ,FIIs, NRIs and Indian Public

At present company is in the process of more than doubling its forging capacities from 11000 MT to 22800 MT at the existing location by installing 2500- MT press and 4000- MT press with robotic application, with additions of 48 nos of C.N.C Machines.

90% of their production is of manufacturing flanges and fittings for industries like Oil, Gas, Petrochemical, Food, Dairy industries Breweries, Nuclear application, Automobile industry, Two wheeler industry, Earth moving industry, Tractor industry, Defense, Railway etc.

They have the proud privilege of serving major established undertaking in India. To mention a few, viz,

· Alfa Level

· Ashok Leylands Limited

· BARC

· Bharat Gears Limited

· Bharat Earth Movers Limited

· Bhabha Atomic and Research Centre

· Fair field atlas Limited

· Greaves Limited

· Godrej and Boyce Limited

· Kirloskar Ebara Limited

· KSB Pumps Limited

· Larsen and Tuburo Limited

· Mahhindra and Mahindra Limited ( utomotive Division )

· Mahindra and Mahindra Limited ( Tractor ivision )

· Mahindra Sona Limited

· NPCL

· Termox

· Tractor Engineers Limited

· Virgo Engg. Limited

· Voltas Limited and many others

Their products also qualify in Europe and other parts of the world. They have, therefore, been regularly exporting their products to USA, Canada, U.K., Ireland, Europe (Germany, Netherlands, Belgium, Denmark, Spain, France, Greece, Austria, etc.) and Middle East markets.

Subject manufacture following range of product

· Flanges : Weld Neck, Slip on Blind, Lap Joint, Threaded, etc.

· Fitting : Socket Weld, Forged Valves, Bodies and bonnets

Founded in 1982 the Shree Ganesh Forging Limited Group commenced Manufacturing precision Closed Die Steel Forging in Navi Mumbai. An emphasis on Quality Combined with on going research and development has given the company an international reputation for excellence. As a result SHREE GANESH FORGING LIMITED is a fast growing company in the Forging Industry. Despite this growth, customer still receive personal attention with best quality product and forging deliveries

Subject aims to deliver high quality and best service to its customers’ entire satisfaction by implementing Modern Technology to motivate work developed through training and team work.

Every lot of Raw material received from the supplier with Material Test Certificate stating the chemical composition in compliance with Euro norms 10204/3.1 ASTM and NACE Std.(MR 0175-2000).

Subject has carried out rationalization of the entire forging process and now has complete line of Stainless steel , carbon steel and alloy steel forged Flange and Automotive products Ranges . The Flanges and automotive components produced are as per their customer specification. The Forging process carried out by subject are as under.

· Raw material procurement

· Raw Material testing ie Chemical and Physical

· Cutting

· Forging

· Heat Treatment(ie physical with Harness, Impact and IGC)

· Machining

· Inspection and Non - Destructive testing.

· Packing

In subject the raw materials are systematically stored and tagged as per the specification and grades and kept in the Raw material yard.

Manufacturing Equipments consist of the following

· Shearing Machines

· High Speed Band Saw Machines

· 6.5Ton Pneumatic Hammer

· 20 Ton Hydro-Pneumatic Hammer

· 1,1.5 and 2 Ton Drop Hammers

· Pusher Furnaces

· 0.75, 1.5 Ton open Forging Hammer

· Mechanical Trimming Presses

· Ring Rolling Machine

· Manuplators for Lifting Heavy Forgings

Product Ranges:

Subject has state of art forging shop incorporate 20 MT Harmers Hydraulic Press Ring Rolling Machines. The Machines Shope have equipped with Conventional and CNC Lathes

The Forge shop is approved by IBR, EIL, for the Production of Forged Flanged other automotive components for the Boiler and Pressure vessel application.

Material construction and specification

As per ASTM A105, ASTMA 182/182M, F 304/304L/304H, F 316/316M. 317L, FF347, F 321, F316TI,F 310, F5, F9, F22 and F 51 and equivalent grades as per 17440.

Dimensional Specification:

SHREE GANESH FORGING LIMITED can forge and supply Flanges as per fitting

· API - 6A

· MMS - SP44 and 43

· B16.5

· B16.9

· B16.11

· B16.36

· BS 4504

· EN1092

· EN1759

· AS2129

· NFE

· JIS

TYPE OF FLANGES	AUTOMOTIVE MOVERS	EARTH PIPE FITTINGS
Slip-On	Roller Rims	BW - Tee
Weld Neck	Spider	(B76.9 / Concentric MSSSP43)
Long Weld Neck	Gears	Reducer
Blind Lap Joint	Crank Shaft	Cross
Socket Welded	Crown Wheel and Pinion	Stub End
Threaded	Universal Cross	Cap
Plate Flanges	Connecting Rods Etc	Screwed Tee
Stub Ends		(B76.11 Socket Metal)
		90° Elbow
		45° Elbow
		Cross
		Coupling
		Valve Body and Bonnet

ACCREDITATION AND CERTIFICATES OF REGISTRATION

The Company Have The Following Accreditation And Approvals :

· ISO 9001-2000 Certified By TUV NORD India

· Pressure Equipment Directive 97/23/EC

· AD 2000 - Merkblatt WO Certified Bytuv NORD India / API 6A –0734

· American Petroleum Institute Monogram Licence For API- 6A Flanges

· Lloyd Register Asia

· Petroleum Development Oman

· SYN CRUDE Canada

· Toye Engineering India Limited

· Engineers India Limited

· HPCL

· BPCL

· NPCIL

· IBR

· Engineers India Limited

· CRN For 13 Province

RESERCH AND DEVELOPMENT ACTIVITIES

In company R and D become a part of life and emphasis on R and D activities for the development new items. Its staff includes experts in full range of Scientific and Engineering talents Subject Group has become synonymous with innovative technology and cutting edged solution in Forged Flanges Fitting and also catering forged components in the Automotive Industries.

The Company employees are dedicated to providing the best service to their customers Irrespectively no matter if it is from the Domestic or international market . Management set standards and work closely with all department encouraging individual creativity to solve development challenges and improve the manufacturing process. Taking personal responsibility for the quality of work their staff work together to design, engineer and manufacture their products ranges that meet customers requirement. This policy is set with goals in mind responding to customer needs with largest section of high quality product delivered on time.

Their products are also exported to various parts of the world and have a large reputed customer base who are their valuable wealth for their Company. Some of the countries that Subject exports are: USA, Canada, UK, Ireland, Germany, Italy, France, Netherland, Belgium, Denmark,Spain, Austria, Greesce, Portugal, Czechoslovakia and other Middle Eastern Countries.

Product Range

FLANGES

Weld Neck Flange

Size ½” to 24” (150 and 300 Class)
Size ½” to 20” (400 and 600 Class)
Size ½” to 18” (900 Class)
Size ½” to 16” (1500 Class)
Size ½” to 12” (2500 Class)

Slip On

Size ½” to 24” (150 and 300 Class)
Size ½” to 8” ( 600 Class)
Size ½” to 6” (900 and 1500 Class)
Size ½” to 4” (2500 Class)

Blind Flange

Size ½” to 24” (150 and 300 Class)
Size ½” to 8” ( 600 Class)
Size ½” to 6” (900 and 1500 Class)
Size ½” to 4” (2500 Class)

Lap Joint

Size ½” to 24” (150 and 300 Class)
Size ½” to 8” ( 600 Class)
Size ½” to 6” (900 and 1500 Class)
Size ½” to 4” (2500 Class)

Screwed Flange

Size ½” to 6” (150 / 300 / 600 / 900 / 1500 / 2500Class)
Size ½” to 2 ½” ( 1500 and 2500 Class)

Socket Weld

Size ½” to 4” (150 / 300 and 600 Class)

FITTINGS

Forged Valves, Bodies and Bonnets : Sizes ¼” to 4”

Flanges of rating from 900 Lbs, 1500 Lbs and 2500 Lbs and also Fitting items mentioned above can only be manufactured and supplied upon receiving firm orders for larger quantities (minimum 100 Pcs each) as per Standards and Specifications.

AUTOMOBILE FORGINGS

They manufacture a wide range and different types of Hot Forged Components such as Gears, Shafts, Crankshafts, Crown wheels and Pinions, Propeller Shaft components like Sleeve Yokes, Flange Yokes, Universal Joint Crosses, Connecting Rods, Steering Knuckle arms etc., for different type of vehicles like four wheelers, two wheelers etc.

INDUSTRIAL APPLICATION

Subject caters Closed Die Forged Components ranging from 0.5 Kgs to 70 Kgs to industries like –
a) Earth Moving, b) Mining, c) Agriculture, d) Tractor industry etc.

LIFTING DEVICES

Subject has the capability to manufacture and supply a vast range of Steel forged Finished Products (Material – Carbon, Alloy and Stainless Steel) studied to answer different requirements in the Lifting Industry. Finished products include eye, shank, single, double and swivel hooks.

DEFENCE INDUSTRIES

Subject supplies various Closed die Forged components required for heavy vehicles and tanks used by the defense industry.

All the above materials can be shipped in both forged stainless steel and forged carbon steel in all grades.

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.39.35
UK Pound	1	Rs.80.52
Euro	1	Rs.57.56

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		46

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions