MIRA
INFORM REPORT
|
Report Date : |
30.07.2008 |
IDENTIFICATION DETAILS
|
Name : |
BHARAT
FORGE LIMITED |
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Registered Office : |
Mundhwa, Pune Cantonment, Pune –
411 036, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
19.06.1961 |
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Com. Reg. No.: |
11-12046 |
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CIN No.: [Company
Identification No.] |
L25209PN1961PLC012046 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
PNEB0272E |
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Legal Form : |
A public limited liability company. The company’s shares are
listed on the Stock Exchanges. |
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Line of Business : |
Manufacturing and Sale of Steel Forgings, Finished Machined Crankshafts,
Couplings, Front Axle Assembly and Components. |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD
74000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular
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Litigation : |
Clear |
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Comments : |
Subject
is a well-established and reputed company having fine track. The company is
progressing well. Directors are reported as experienced and respectable businessmen. Trade relations are reported as fair.
Business is active. Payments are usually correct and as per commitments. Fundamentals
are strong and healthy. The
company can be considered normal for business dealings at usual trade terms
and conditions. The
company can be regarded as a promising business partner in a medium to
long-run. |
LOCATIONS
|
Registered Office / Factory : |
Mundhwa, Pune Cantonment, Pune – 411 036,
Maharashtra, India |
|
Tel. No.: |
91 - 20 – 26702777 / 26702476 / 26702544 |
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Fax No.: |
91 - 20 – 26822163 / 26822387 / 26820699 |
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E-Mail : |
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Website : |
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Factory 1 : |
Gat
No. 635, Kuruli Village, Chakan, District Pune – 410 501, Maharashtra |
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Factory
2 : |
Opposite
Jarandeshwar Railway Station, Vadhuth, District Satara – 415 011, Maharashtra
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Factory
3 : |
Kusumbe,
Jalgaon-Ajantha Road, Jalgaon – 425 003, Maharashtra |
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Factory
4 : |
CDP Bharat Forge GmbH, Julius Saxler -
Str.4, D-54550 Daun / Vulkaneifel |
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Tel. No.: |
++ 49
(0) 6592 - 9501- 0 |
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Fax No.: |
++ 49
(0) 6592 - 9501 -11 |
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Factory
5 : |
CDP Bharat Forge GmbH, Mittelstr. 64,
D-58256 Ennepetal |
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Tel. No.: |
++ 49
(0)2333-796-0 |
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Fax No.: |
++ 49
(0)2333-796-388 |
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E-Mail : |
info@cdp-bharatforge.de |
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Factory
6 : |
Bharat Forge Aluminiumtechnik GmbH &
Co. KG, Berthelsdorfer Str. 8 |
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Tel. No.: |
0049
37322 16389 |
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Fax No.: |
0049
37322 16333 |
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E-Mail : |
info@cdp-at.de |
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Chennai (Madras) Office : |
Fagun Mansion 3rd Floor, 26, Ethiraj
Salai, Chennai- 600 105, Tamilnadu, India |
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Tel. No.: |
91-44-28272116 |
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Fax No.: |
91-44-28270921 |
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E-Mail : |
bflmds@vsnl.com |
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New
Delhi Office : |
Antriksh Bhavan, 14th Floor, 22 Kasturba
Gandhi Marg, New Delhi-110 001, India |
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Tel. No.: |
91-11-3312484
/ 3312946 |
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Fax No.: |
91-11-3357083 |
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E-Mail : |
bfldelhi@bol.net.in bhaforge@bol.net.in |
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Mumbai
Office
: |
Mittal Towers, B Wing, 15th Floor, Opp.
New Council Hall, Nariman Point, Mumbai - 400 021, Maharashtra, India |
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Tel. No.: |
91-22-22830317/22830523 |
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Fax No.: |
91-22-22040053 |
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E-Mail : |
bharatforgemumbai@vsnl.com |
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Kolkata
(Calcutta) Office : |
20 Netaji Subash Road, Kolkata - 700 001,
West Bengal, India |
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Tel. No.: |
91-33-22305976
/ 22306592 |
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Fax No.: |
91-33-28500017 |
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E-Mail : |
bflcal@vsnl.net |
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Jamshedpur
Office
: |
61-A , Rajendra Nagar, Sakchi, Jamshedpur
- 831 001 |
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Tel.
No.: |
91-657-2426732 |
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E-Mail
: |
jsr_bfljsr@sancharnet.in |
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Bangalore
Office
: |
23/2, 2nd Floor, Kammanahalli Main Road,
Next To Vinayak Temple |
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Tel. No.: |
91-80-25806570 |
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Fax No.: |
91-80-25806570 |
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E-Mail : |
bharath_forge@dataone.in |
DIRECTORS
|
Name : |
Mr. B. N. Kalyani |
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Designation : |
Chairman and Managing Director |
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Qualification : |
B.E. (Mech.) (Hons.), M.S.
(M.I.T.) |
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Date of Appointment : |
01.04.1972 |
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Name
: |
Mr. P. H. Ravikumar |
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Designation
: |
ICICI Nominee Director |
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Name
: |
Mr. S. S. Marathe |
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Designation
: |
Director |
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Name
: |
Mr. S. M. Thakore |
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Designation
: |
Director |
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Name
: |
Mr. S. D. Kulkarni |
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Designation
: |
Director |
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Name
: |
Mr. Pratap Bhogilal |
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Designation
: |
Director |
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Name
: |
Mr.
Anil Rege |
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Designation
: |
Director
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Name
: |
Prof.
Dr. Uwe Loos |
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Designation
: |
Director
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Name
: |
Mr.
Pratap G Pawar |
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Designation
: |
Director
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Name
: |
Mrs. Lalita D Gupte |
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Designation
: |
Director |
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Name
: |
Mr. Alan Spencer |
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Designation
: |
Director |
KEY EXECUTIVES
|
Name
: |
Mr. P. C. Bhalerao |
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Designation
: |
Executive Director |
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Qualification
: |
B.E. (Elect.), M.B.A., D.T.M. |
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Date
of Appointment : |
3rd March, 1987 |
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Previous
Employment : |
Bharat Steel Tubes Limited, Delhi – Dy. General Manager |
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Name
: |
Mr. G. K. Agarwal |
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Designation
: |
Deputy
Managing Director |
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Qualification
: |
B.E. (Mech.), M.B.A. |
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Date
of Appointment : |
1st November, 1976 |
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Previous
Employment : |
Guest Keen Williams Limited,
Howrah, West Bengal |
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Name
: |
Mr. Amit B. Kalyani |
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Designation
: |
Executive Director |
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Name
: |
Mr. B. P. Kalyani |
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Designation
: |
Executive Director |
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Name
: |
Mr. S. E. Tandale |
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Designation
: |
Executive Director |
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Name
: |
Mr. P. K. Maheshwari |
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Designation
: |
Executive Director |
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Name
: |
Mr. Sunil Chaturvedi |
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Designation
: |
Executive Director |
MAJOR SHAREHOLDERS
(As
on 31.03.2008)
|
Category of Shareholder |
No. of Shares |
Percentage of Holding |
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Shareholding of Promoter and
Promoter Group2 |
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Indian |
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Individuals/ Hindu Undivided
Family |
973960 |
0.44 |
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Bodies Corporate |
89463702 |
40.18 |
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Public shareholding |
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Institutions |
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Mutual Funds/ Axis |
9411398 |
4.23 |
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Financial Institutions / Banks |
12204127 |
5.48 |
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Insurance Companies |
10841336 |
4.87 |
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Foreign Institutional
Investors |
32089500 |
14.41 |
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Non-institutions |
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Bodies Corporate |
30444274 |
13.67 |
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Individuals |
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Individuals -i. Individual
shareholders holding nominal share capital up to Rs 0.100 Million |
28269622 |
12.70 |
|
ii. Individual shareholders holding nominal share capital in excess of Rs. 0.100
Million |
6192959 |
2.78 |
|
Any Other (specify) |
|
|
|
Clearing Member |
34183 |
0.02 |
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Trusts |
2718010 |
1.22 |
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Others |
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Shares held by Custodians and
against which Depository Receipts have been issued |
9200 |
0.00 |
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|
|
|
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TOTAL |
222652271 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and Sale of Steel Forgings, Finished Machined
Crankshafts, Couplings, Front Axle Assembly and Components. |
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Products : |
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Export: |
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Countries: |
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Imports: |
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Countries: |
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Terms : |
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Purchasing : |
L/C, D/A and D/P terms |
PRODUCTION
STATUS (As on 31.03.2007)
|
Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
Steel Forging
|
MT |
240000 |
240000 |
165239 |
|
Finished Machined Crankshaft |
Nos. |
600000 |
408500 |
347795 |
|
Couplings |
MT |
600 |
600 |
--- |
|
Front Axle Assembly &
Components |
Nos. |
600000 |
533500 |
423571 |
|
Well Head Assembly and Parts |
Nos. |
5000 |
--- |
--- |
|
Aluminium Road Wheel |
Nos. |
4000 |
4000 |
3641 |
|
General Engineering Equipments |
Nos. |
1100 |
1100 |
5 |
|
Material Handling Equipments |
Nos. |
1350 |
1350 |
--- |
|
Hydraulic & Mechanical
Presses |
Nos. |
250 |
250 |
--- |
|
Bandshaw Machines for cutting
Metallic Round & Square Bars |
Nos. |
50 |
50 |
10 |
|
Front Axle Assembly at Dharwad |
Nos. |
50000 |
---- |
--- |
|
Finished Machined Crankshaft
(Chakan) |
Nos. |
180000 |
241500 |
174270 |
|
Front Axle Assembly and
Components at Chakan |
Nos. |
300000 |
219600 |
148482 |
|
Transmission Parts |
Nos. |
3000000 |
2041000 |
2072881 |
|
Seal Rings, Clamps and
Hubs |
Nos. |
50000 |
7000 |
350 |
|
Rocker Arm Assembly |
Nos. |
100000 |
--- |
--- |
|
Bonnets and Key Shaft |
Nos. |
50000 |
--- |
--- |
- Annual Capacity on maximum utilisation basis.
Under Registration with Government Authority.
- Since the Company's installed capacity is
dependent on Product mix, which in turn is decided on the basis of actual
demand for various products from time to time, it is not feasible for the
Company to give exact installed capacity. The Company has, however,
indicated installed capacity on the basis of year's Product mix, as
certified by the Chairman and Managing Director and being a technical
matter accepted by the Auditors as correct.
- The installed capacities have been enhanced
on capitalization of expansion projects in a phased manner during the
course of the year.
- Includes captive consumption 69124 M.T.
(2005-06 - 58270 M.T.).
- Includes captive consumption Band Saws 10
Nos ( 2005-06 - 2 Nos.)
- The Company has applied for enhancement in
the Licensed capacity from 180000 Nos. M.T. to 300000 Nos
GENERAL INFORMATION
|
Customers : |
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No. of Employees : |
2,521 |
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Bankers : |
“Lokmangal”, 1501 Shivajinagar
(Head Office), Pune – 411 005, Maharashtra, India
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Facilities : |
[figures are in Rupees
Millions]
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Banking Relations : |
Satisfactory
|
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Auditors : |
Dalal and Shah Chartered Accountants |
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Associates : |
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Subsidiaries : |
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Membership : |
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CAPITAL STRUCTURE
Authorised
Capital :
((As on 31.03.2008)
|
No.
of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
300000000 |
Equity Shares |
Rs.2/- each |
Rs. 600.000 Millions |
|
43000000 |
Cumulative Preference Shares |
Rs.10/- each |
Rs. 430.000 Millions |
|
2000000 |
Unclassified Shares |
Rs.10/-each |
Rs. 20.000 Millions |
|
|
|
|
|
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|
Total |
|
Rs. 1050.000
Millions |
Issued :
|
No.
of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
222828621 |
Equity Shares |
Rs.2/- each |
Rs. 445.660 Millions |
Subscribed
& Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
222652271 |
Equity Shares |
Rs.2/- each |
Rs.445.310 millions |
|
172840 |
Forfeited Shares |
|
Rs. 0.090 Millions |
|
|
|
|
|
|
|
Total |
|
Rs. 445.400
Millions |
Prior
to subdivision of Share Capital :
1. 47600
Equity Shares of Rs.10/- each were issued as fully paid up for consideration
other than cash, pursuant to a contract.
2. 8682500
Equity Shares of Rs.10/- each were issued as fully Bonus Shares by way of
capitalisation of Share Premium Account and Reserves.
3. 1568600
Equity Shares of Rs.10/- each were issued at a premium of Rs.186.93 per Share,
under Senior Executives Stock Cum Share Option Scheme.
4. The
Company had issued 3636500 Equity Shares of Rs.10/- each (later sub-divided
into 18182500 Equity Share of Rs.2/- each) in April and May 2005 represented by
3636500 Global Depository Receipts (GDRs) (on sub-division 18182500 GDRs)
evidencing “Master GDR Certificates” at a price of US$ 27.50 per GDR (including
premium). GDrs outstanding at the close of the year are 9200. Out of the total
amount of Rs.4235 Million net of expenses, Rs.683 Million has been utilised
towards the object of the issue and balance of Rs.3552 Million have been
temporarily deployed by Investments in Debt Oriented Mutual Funds to the extent
of Rs.2982 Million, Rs.505 Million is held in Fixed Deposits with Banks and the
balance amounting to Rs.65 Million is parked in working capital.
5. The
Company had also issued Foreign Currency Convertible Bonds aggregating US$
199.90 Million Optionally convertible at an initial price specified in offering
circular. As the initial price is subject to adjustments specified in the
offering circular and inability to assets the proportion of conversion, no
amounts have been shown under issued Equity Share Capital, in respect of Equity
Shares deemed to be issued on exercise of conversion by bondholders. Outstanding
bonds at the close of the year aggregated Rs.7301.15 Million.
Subsequent
to Sub-division of the equity Share Capital :
1. 2340
Equity Shares of Rs.2/- each out of the previous issue of Equity Shares on a
Right basis together with 234 detachable warrants entitled to subscription of
1170 Equity Shares of Rs.2/- each have been kept in abeyance pending
adjudication of title to the pre right holding.
2. Nil
Equity Shares of Rs.2/- each (Previous year 389610 Equity Shares) were issued
and allotted during the previous year on April 12, 2006 at a premium of
Rs.334.105 per Share on Conversion of US$ 3000000 0.50% Foreign Currency
Convertible Bonds (FCCBs) Tranche – 1 in terms of Offering Circular dated 15th
April, 2005.
8.25%
Redeemable Cumulative Non-Convertible Preference Shares of Rs.10/- each are
redeemed in cash on February 10, 2008.
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
445.400 |
545.400 |
544.600 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
14287.400 |
12722.600 |
11096.700 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
14732.800 |
13268.000 |
11641.300 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
4615.800 |
3735.700 |
3816.000 |
|
|
2] Unsecured Loans |
8259.100 |
10280.400 |
6108.600 |
|
|
TOTAL BORROWING |
12874.900 |
14016.100 |
9924.600 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
27607.700 |
27284.100 |
21565.900 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
13178.700 |
11519.300 |
7752.500 |
|
|
Capital work-in-progress |
4271.300 |
2748.000 |
3707.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
5936.700 |
4507.100 |
4440.200 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
TECHNICAL KNOW-NOW |
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
3381.200
|
3027.900
|
2542.700 |
|
|
Sundry Debtors |
3562.900
|
2539.500
|
1885.500 |
|
|
Cash & Bank Balances |
1649.900
|
7362.800
|
5054.100 |
|
|
Other Current Assets |
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances |
7871.700
|
5633.200
|
5939.100 |
|
Total Current Assets |
16465.700
|
18563.400 |
15421.400 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
7731.400
|
6958.000
|
6150.500 |
|
|
Provisions |
4513.300
|
3098.000
|
3617.200 |
|
Total Current Liabilities |
12244.700
|
10056.000 |
9767.700 |
|
|
Net Current Assets |
4221.000
|
8507.400 |
5653.700 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
2.300 |
12.500 |
|
|
|
|
|
|
|
|
TOTAL |
27607.700 |
27284.100 |
21565.900 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
Sales
Turnover |
23143.700 |
19908.400 |
16514.400 |
|
|
Other
Income |
1734.900 |
1104.900 |
1001.700 |
|
|
Total
Income |
24878.600 |
21013.300 |
17516.100 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
3969.800 |
3593.100 |
3144.000 |
|
|
Provision for Taxation |
1233.900 |
1183.600 |
1074.300 |
|
|
Profit/(Loss) After Tax |
2735.900 |
2409.500 |
2069.700 |
|
|
|
|
|
|
|
|
FOB
Value of Exports: |
0.000 |
8361.020 |
7187.510 |
|
|
|
|
|
|
|
|
Imports
: |
|
|
|
|
|
|
Raw Materials
and component for manufacturing |
0.000 |
369.120 |
266.590 |
|
|
Die, block, Die Steel, Tool steel, and spares |
0.000 |
615.190 |
321.740 |
|
|
Capital Goods |
0.000 |
824.840 |
2234.570 |
|
Total
Imports |
0.000 |
1809.150 |
2822.900 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Manufacturing Expenses |
2325.800 |
1967.000 |
1600.100 |
|
|
Selling and Administration Expenses |
817.100 |
646.700 |
555.000 |
|
|
Raw Material Consumed |
9792.000 |
8324.700 |
7390.300 |
|
|
Excise Duty |
1725.400 |
1558.000 |
1209.200 |
|
|
Increase/(Decrease) in Finished Goods |
(206.400) |
(224.700) |
(294.800) |
|
|
Employee Cost |
1448.800 |
1076.700 |
917.200 |
|
|
Interest and Financial charges |
1049.900 |
821.100 |
547.900 |
|
|
Miscellaneous Expenses |
784.100 |
686.200 |
576.900 |
|
|
Power & Fuel |
1784.000 |
1567.600 |
1140.000 |
|
|
Depreciation & Amortization |
1389.400 |
998.000 |
730.400 |
|
|
Less : Preoperative Expenditure Capitalised |
(1.300) |
(1.100) |
(0.100) |
|
Total
Expenditure |
20908.800 |
17420.200 |
14372.100 |
|
KEY
RATIOS
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
Debt-Equity Ratio |
0.96 |
0.96 |
0.88 |
|
Long Term Debt-Equity Ratio |
0.69 |
0.7 |
0.63 |
|
Current Ratio |
1.18 |
1.29 |
1.08 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
1.23 |
1.33 |
1.49 |
|
Inventory |
7.22 |
7.15 |
7.5 |
|
Debtors |
7.59 |
9 |
9.96 |
|
Interest Cover Ratio |
4.78 |
5.38 |
6.74 |
|
Operating Profit Margin(%) |
27.69 |
27.19 |
26.78 |
|
Profit Before Interest And Tax Margin(%) |
21.69 |
22.17 |
22.36 |
|
Cash Profit Margin(%) |
17.82 |
17.12 |
16.96 |
|
Adjusted Net Profit Margin(%) |
11.82 |
12.1 |
12.53 |
|
Return On Capital Employed(%) |
18.29 |
18.08 |
24.52 |
|
Return On Net Worth(%) |
19.56 |
19.44 |
26.11 |
LOCAL AGENCY FURTHER INFORMATION
History
Subject, a wing of the Kalyani group of companies. The Company was
incorporated in June 1961 and promoted by Neelkanth A Kalyani. Subject’s principal
activities are to manufacture and sell closed and open die forgings, machined
components and aggregates. The Company operates in two segments namely Steel
Forging and General Engineering. The products of the Company include front axle
assembly and components, general engineering equipment, hydraulic and
mechanical presses, bandsaw machines for cutting metallic rounds, couplings and
material handling equipment. The Company caters to the medium and heavy
commercial vehicle segments. The manufacturing plants are located at Pune,
Satara and Jalgaon districts of Maharashtra. The Company's operations are
carried out through its German subsidiary, Carl Dan Peddinghus GmbH.
During the year 1982, the Balchandra Investment Private Limited became a wholly
owned subsidiary of the Company. In 1983, an agreement was concluded with
Tokyo, Drop Forging Company Limited of Japan for technology upgradation, cost
optimisation and quality improvements in the Company's forging unit and an
agreement was made with Maharashtra Electronics Corporation Limited (MELTRON)
to establish a joint venture to manufacture colour T.V. sets. Forge Investment
Limited and Mundhwa Investment Limited became the subsidiaries of Balchandra
investment during January of the year 1984. To obtain technology and know-how
for the manufacture of couplings, the Company entered into a collaboration
agreement with Torsiflex Limited, U.K in the year 1985. During the year 1986,
the registration was obtained for the manufacture of assemblies, components, spares,
and accessories for metallurgical machinery, size reduction and crushing
equipment, conveying equipment and size separation units with a total capacity
of 1,200 tonnes per annum at Vaduth, Satara. In 1989, a joint venture under the
name of Kalyani Sharp India Limited (KSIL) was set up for the manufacture of
Televisions & VCRs. The Financial Services Division originated for
investment in various fund-based areas in 1992, during the year, it diversified
its portfolio into real estate development. In the year 1994, Starflower
Investment and Finance Limited and Chakrapushpa Investment and Finance Limited
were ceased to be subsidiaries of the Company.
Subject had entered into a technical know-how and assistance agreement in the
year 1995 with the Metalart Corporation, Japan for the manufacture of small
precision forgings. The company has diversified its financial services division
into production of wheel rims in the year 1998. Subject has demerged its
Investment Division and Wind Mills Division in the year of 2000. Subject signed
a contract in the year 2002 with Dana Corporation's Spincer Europe Limited for
the supply of forgings. The company secured the second Largest Customer in
China during 2003. Guangxi Yuchai Machinery Company. The second Auto Works
among the largest Auto companies in China, which was a stepping-stone for
acquiring a large size of the Chinese Markets. The company emerged as world's
second largest forging company with the acquisition of Carl Dan Peddinghus GmbH
and Company KG (CDP) of Germany in November 21, 2003. Subject received
`outstanding organisation' award for quality from the National Institution for
Quality and Reliability in 2005. The company acquired Imatra Kilsta AB, Sweden
and Scottish Stampings, Scotland. Subject has signed a Joint Venture contract
in the year 2005 with FAW Corporation for its forging business and in the same
year the company entered in JV contract with FAW Corporation, China.
Through its wholly owned subsidiary, Bharat Forge Beteiligungs
GmbH, Germany, the company acquired Imatra Kilsta AB, Sweden along with its
wholly owned subsidiary, Scottish Stampings Limited, Scotland (together called
Imatra Forging Group) on September 21, 2005, which are now renamed as Bharat
Forge Kilsta AB (BF Kilsta) and Bharat Forge Scottish Stampings Limited,
respectively. The company also acquired Federal Forge now known as Bharat Forge
America Inc. Provided Subject with a manufacturing presence in USA - one of its
largest markets. Subject has embarked on setting up of a Centre for Advanced
Manufacturing at Baramati in Maharashtra along with machining for such high-end
forged components. In addition, as on March 2008, the company is also setting
up an open die-forging unit at its existing facilities in Mundhwa. The total
estimated cost of these projects is Rs. 3.5 billion.
As on February 2008, Subject signed a memorandum of understanding (MoU) with
the largest power generation company, NTPC to set up a joint venture (JV)
company for its foray into the capital goods sector. Same month of the same
year, the company inked a MoU with the West Bengal Government to set up a one
million-ton per annum steel plant in the State. The company is planning to
invest Rs 65 billion through Kalyani Steel, the Group Company. In the same year
and in same month the company inked a MoU with the West Bengal Government to
set up a one million-ton per annum steel plant in the State and planning to
invest Rs 65 billion through Kalyani Steel, the Group Company. The project
involves a captive Rs 20 billion (out of the total investment) 500-MW power
plant besides a downstream unit. In March 2008, Subject has signed MoU with
Maharashtra government for setting up a centre for advanced manufacturing at
Baramati near Pune. In April 2008, the company entering into the French
automotive sector with help of acquisition of 89% stake in French forgings
company Groupe Sifcor (Society of Industrial and Financial Courcelles). In May
of the year 2008, Subject plans to unlock the value of its overseas assets by
transferring them to a holding company and then listing it.
Fixed Assets
- Land, Free
hold
- Land, lease
hold
- Buildings
- Plant and
Machinery
- Railway
sidings
- Electrical
installations
- Factory
equipments
- Engineering
instruments
- Furniture
and fittings
- Office
equipments
- Vehicles
and Aircrafts
- Leased
assets ( Plant and Machinery)
- Leased
assets (Power line)
|
Contingent
liabilities: |
31.03.2007 |
|
Sales Bills discounted Of which: |
3938.790 |
|
Bills since realized |
912.350 |
|
Matured , overdue and outstanding since close of the year |
587.560 |
|
b) guarantees given by the Company on behalf of other companies |
|
|
Balance Outstanding |
310.000 |
|
Maximum amount |
(740.000) |
|
c) Claims against the company not acknowledge as Debts to the extent
ascertained |
182.980 |
|
d) Disputed Income Tax matters |
206.670 |
|
e) Excise / Service Tax Demands – matters under dispute |
36.440 |
WEBSITE
DETAIL:
Bharat Forge Signs An Mou With Government Of
Maharashtra
Highlights
·
Bharat Forge Centre for Advanced Manufacturing set up at Baramati.
·
Centre will manufacture high technology, highly engineered critical
& safety components for Aerospace, Marine & Rail, Power, Energy, Mining
and Construction Equipment and other industries.
·
An investment of about Rs.350 crores, the centre will have a forging
capacity of 30,000MT p.a.
·
Spread over 100 acres of land, the facility will employ a talent pool of
over 1200 highly skilled engineers and professionals.
Mumbai, March 27, 2008: Subject, the
flagship company of the USD 2.1 billion Kalyani Group and a leading global
supplier of forged and machined components, today signed a Memorandum of
Understanding (MOU) with the Government of Maharashtra for its Centre for
Advanced Manufacturing at Baramati.
Having created a
leadership position as an innovative engineering company in the automotive
space, Bharat Forge is now actively pursuing new growth & high technology
areas such as Aerospace, Marine & Rail, Power, Energy, Mining and
Construction Equipment., etc. The Centre for Advanced Manufacturing, a
state-of-the-art, world class facility will manufacture high technology, highly
engineered critical & safety components for these industries.
The Memorandum of
Understanding (MOU) was signed today by Mr. V. K. Jairath, Principal Secretary
(Industries), Government of Maharashtra and Mr. B N Kalyani, Chairman &
Managing Director, Bharat Forge Ltd, in the presence of Mr Vilasrao Deshmukh,
Hon’ble Chief Minister of Maharashtra, Mr Ashok Chavan, Hon’ble Minister for
Industries, Government of Maharashtra, Mr Johny Joseph, Chief Secretary,
Government of Maharashtra and other senior officials of the State Government.
Speaking at the
occasion, Mr. Vilasrao Deshmukh, Chief Minister of Maharashtra said, “I am
extremely happy that Bharat Forge has once again chosen Maharashtra for its new
project. This is a major project for Bharat Forge in the new growth & high
technology areas, such as aerospace, rail & marine, power, energy, etc.,
and I am confident that Bharat Forge with its track record as an Innovative
Indian Engineering Company , this state-of-the-art world class facility will
put Baramati on the global map.
“The Government is
determined to consolidate Maharashtra’s position as the No.1 industrialized
state in the country and I am confident that this new facility will accelerate
the industrial growth of the region. We assure Bharat Forge of all the
assistance needed to take the project forward”, he added.
Speaking on the
occasion, Mr. Ashok Chavan, Minister for Industries, GOM, said that “with a
series of dynamic and proactive steps, the State of Maharashtra was
re-establishing its premier position in the industrial development in the country.
The investment climate has become highly positive in the State and big players
such as Bharat Forge have their presence in the State with sizable investments.
The State is clearly emerging once again as the most sought after State as far
as fresh private investments are concerned”.
Mr B N Kalyani,
Chairman and Managing Director, Bharat Forge Ltd., said that the ‘Centre for
Advanced Manufacturing’ that is being set up at Baramati is the first major
project of our company that is located outside Pune. We are happy that we have
had the opportunity to locate our project in Baramati and we will ensure that
we take the people of Baramati with us and make them our partners in progress
and prosperity”.
We are committed to
contribute in making your vision of an economically strong and vibrant
Maharashtra a reality. In the process we are confident that we would be able to
also contribute in strengthening Baramati’s position as a fast growing
industrial centre, which is poised to become a global centre of excellence, he
added.
Speaking on the
occasion, Mr.Johny Joseph, Chief Secretary, Government of Maharashtra, welcomed
Bharat Forge’s initiative in setting up its Centre for Advanced Manufacturing in
Baramati. He said “All necessary support and assistance will be provided by the
State Government to Bharat Forge for setting up this hi-tech centre”.
Speaking on the
occasion, Mr. V. K. Jairath, Principal Secretary (Industries) said, “through
our association with a global leader like Bharat Forge for establishing this
world class centre, we take a step forward towards our goal of boosting the
economic development in the state through rapid industrialization. We have
constantly endeavoured to accelerate sustainable development through industrial
growth across the state of Maharashtra”.
With an investment
of Rs.350 crores and a forging capacity of 30,000MT p.a., the Baramati plant
will will manufacture large crankshafts for marine & power, landing gear, engine
and structural parts for aircrafts & helicopters, connecting rods for
locomotives and equalizer bars & spindles and other heavy products for
construction machines. Spread over 100 acres of land, this globally focused
manufacturing facility will employ a talent pool of over 1200 highly skilled
engineers & professionals.
About Company
Subject, a public
limited company is a leading global ‘Full Service Supplier’ of forged and
machined - engine & chassis components. It provides end-to-end solutions
from product conceptualization to designing and finally manufacturing, testing
and validation. It is the largest exporter of auto components from India and
leading chassis component manufacturer in the world. With manufacturing
facilities spread over 12 locations and 6 countries – four in India, three in
Germany, one in Sweden, one in Scotland, one in North America and two in China,
the company manufactures a wide range of safety and critical components for
passenger cars, commercial vehicles and diesel engines. The company also
manufactures specialized components for the aerospace, power, energy, railway,
construction equipment, oil and gas and other industries. It is capable of
producing large volume parts in both steel and aluminum.
PRESS RELEASES:
35 Students pass out of the 1st
batch of B S (Manufacturing Engineering)
Pune 20th August 2007…The Convocation
Ceremony of the First Batch of the B.S.(Manufacturing Engineering) Programme
conducted by subject in collaboration with Birla Institute of Technology and Science
(BITS), Pilani was held at Hotel Le Meridien, on Saturday, 18th August 2007.
The degree was awarded to 35 students for the first batch of B.S.
(Manufacturing Engineering) for the year 2007 by Dr L K Maheshwari, Vice
Chancellor, BITS, Pilani. The ceremony began by awarding the best students of
the year Mr Santoshsingh Thakur, Mr Vishal Phaltankar and Mr Sunil Pawar who
had not only consistently excelled in their theoretical studies but also
obtained the overall 1st, 2nd and 3r d positions respectively. The winners were
then presented with the Gold, Silver and Bronze Medals and a gift cheque by the
Chief Guest Dr L K Maheshwari.
Speaking at the occasion, Dr L K Maheshwari, Vice- Chancellor, BITS
PIlani in his Keynote Address said that “Organisations of today cannot be
organizations of the 19th century. They have to be organizations of the 21st
century, which means that they have to be Learning Organizations”. Talking
about the rapid advances that are being made in technology, he said that it is
a prediction that technology is going to develop every 11 hours, which means
that each one of them has to be a student throughout their life.
Stressing on education he said that it is education and education alone
which can make a company proud and take it forward. It is education which has
always succeeded in the world and in days to come it will be education and
research that will ultimately lead technology, he added.
On March 30, 2004, subject signed a MoU with BITS, Pilani for a
synergistic relationship in Human Resource Development. As a part of the MoU,
BITS was to conduct a program at BFL which would primarily, enable BITS to
offer a degree course equivalent to BE to the Kalyani Group employees.
Earlier in his Opening Remarks, Mr B N Kalyani, Chairman and Managing
Director, subject, said that “I am extremely pleased and happy to see that this
day has arrived. It has been my dream to bring education into their company,
into their system and to provide opportunities to their colleagues for higher
learning”. Congratulating all the 35 graduates, he said that they have very
wonderfully balanced their work, their family and their studies and that’s not
an easy job.
Going ahead he explained the rationale behind this whole programme,
where he said that it was his endeavour to see as to how they could create more
brain power in their company by providing higher education opportunities to
people within the company. He was very convinced of the fact that there is no
substitute for good education and therefore started thinking on how to create
this infrastructure for learning and set up an educational process within the
company to create that enrichment that is required to produce talent in a group
of people who will lead subject in the years to come. And that’s where they
started their Bachelors Program in Manufacturing Engineering. My own vision and
forecast, he said, was that 10 years from now India with its talented human
capital which is the younger population should firmly be on the manufacturing
map of the world. What they have started in their company is only a beginning.
The future lies in the ability to globalize yourself, the ability to compete
and the ability to capture the global market.
Subject today spends a huge amount of money and resources on training.
The company started its 1st Batch of B.S. (manufacturing Engineering) in July
2004. Currently the company is running three batches simultaneously. A total of
169 employees have been covered under this programme. The company has also
collaborated with Warwick University for Post Graduation in Manufacturing
Management and over 76 high potential employees are currently undergoing this
programme.
Dr B R Natarajan, Dean, Distance Learning Programme Division, BITS Pilani,
in his concluding remarks thanked subject for giving them this opportunity and
said that here is a collaboration of perfect understanding. Both organizations
are driven by the passion to achieve excellence. Both organizations are leaders
in their own way. They know the way, go the way and show the way to achieve
excellence.
The Convocation Ceremony was attended by Dr L K Maheshwari,
Vice-Chancellor, BITS Pilani, Dr B R Natarajan, Dean, Distance Learning
Programme Division, BITS Pilani, Mr B N Kalyani, Chairman and Managing
Director, subject, Senior Exceutives of the Kalyani Group, Faculty Members of
BITS Pilani, family members of the passing out Grdauates and the 2nd batch of
B.S. (Manufacturing Engineering) Students.
Bharat Forge Limited
Clarifies on News Item
This is with reference to the article appearing in Business standard
dated March 10, 2008 titled ‘Hindujas, M&M, BFL in race for Thyssen Unit’.
Bharat Forge Limited denies any such developments as referred in the
said Article and the information published as pertaining to Bharat Forge is
incorrect and has no relevance.
Article/ New item on the referred to subject have appeared ealier also
and our position has been clarified earlier also.
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.42.54 |
|
UK
Pound |
1 |
Rs.84.86 |
|
Euro |
1 |
Rs.66.95 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
|
69 |
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 |
|