MIRA INFORM REPORT

Report Date :

24.11.2011

IDENTIFICATION DETAILS

Name :	BHARAT FORGE LIMITED
Registered Office :	Mundhwa, Pune Cantonment, Pune – 411036, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	19.06.1961
Com. Reg. No.:	11-12046
Capital Investment / Paid-up Capital :	Rs.465.680 millions
CIN No.: [Company Identification No.]	L25209PN1961PLC012046
TAN No.: [Tax Deduction & Collection Account No.]	PNEB0272E
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturing and Sale of Steel Forgings, Finished Machined Crankshafts, Couplings, Front Axle Assembly and Components.
No. of Employees :	4000 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (66)

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 79000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and a reputed company having fine track records. Financial position of the company appears to be sound. Directors are reported to be experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Registered Office/ Factory :	Mundhwa, Pune Cantonment, Pune – 411 036, Maharashtra, India
Tel. No.:	91 - 20 – 26702777 / 26702476 / 26702544
Fax No.:	91 - 20 – 26822163 / 26822387 / 26820699 / 26824778
E-Mail :	bflpune@bfl.sprintsmg.ems.vsnl.net.in jtarapore@vsnl.com bharatforge@bharatforge.com info@bharatforge.com secretarial@bharatforge.com
Website :	http://www.bharatforge.com
Area :	5000 sq. ft.
Location :	Owned
Factory 1 :	Gat No. 635, Kuruli Village, Chakan, District Pune – 410 501, Maharashtra, India
Factory 2 :	Opposite Jarandeshwar Railway Station, Vadhuth, District Satara – 415 011, Maharashtra
Factory 3 :	Kusumbe, Jalgaon-Ajantha Road, Jalgaon – 425 003, Maharashtra
Factory 4 :	CDP Bharat Forge GmbH, Julius Saxler – Str.4, D-54550 Daun / Vulkaneifel
Tel. No.:	++ 49 (0) 6592 – 9501- 0
Fax No.:	++ 49 (0) 6592 – 9501 -11
Factory 5 :	CDP Bharat Forge GmbH, Mittelstr. 64, D-58256 Ennepetal
Tel. No.:	++ 49 (0)2333-796-0
Fax No.:	++ 49 (0)2333-796-388
E-Mail :	info@cdp-bharatforge.de
Factory 6 :	Bharat Forge Aluminiumtechnik GmbH and Company KG, Berthelsdorfer Str. 8 09618 Brand-Erbisdorf (Germany)
Tel. No.:	0049 37322 16389
Fax No.:	0049 37322 16333
E-Mail :	info@cdp-at.de
Chennai (Madras) Office :	Fagun Mansion 3^rd Floor, 26, Ethiraj Salai, Chennai- 600 105, Tamilnadu, India
Tel. No.:	91-44-28272116
Fax No.:	91-44-28270921
E-Mail :	bflmds@vsnl.com
New Delhi Office :	Antriksh Bhavan, 14^th Floor, 22 Kasturba Gandhi Marg, New Delhi-110 001, India
Tel. No.:	91-11-3312484 / 3312946
Fax No.:	91-11-3357083
E-Mail :	bfldelhi@bol.net.in bhaforge@bol.net.in
Mumbai Office :	Mittal Towers, B Wing, 15^th Floor, Opp. New Council Hall, Nariman Point, Mumbai – 400 021, Maharashtra, India
Tel. No.:	91-22-22830317/22830523
Fax No.:	91-22-22040053
E-Mail :	bharatforgemumbai@vsnl.com
Kolkata (Calcutta) Office :	20 Netaji Subash Road, Kolkata – 700 001, West Bengal, India
Tel. No.:	91-33-22305976 / 22306592
Fax No.:	91-33-28500017
E-Mail :	bflcal@vsnl.net
Jamshedpur Office :	61-A , Rajendra Nagar, Sakchi, Jamshedpur – 831 001
Tel. No.:	91-657-2426732
E-Mail :	jsr_bfljsr@sancharnet.in
Bangalore Office :	23/2, 2^nd Floor, Kammanahalli Main Road, Next To Vinayak Temple Opp Libetrty Shoe Mart, St Thomas Town Post, Bangalore 560084, Karnataka, India
Tel. No.:	91-80-25806570
Fax No.:	91-80-25806570
E-Mail :	bharath_forge@dataone.in

DIRECTORS

(AS ON 31.03.2011)

Name :	Mr. Babasaheb Neelkanth Kalyani
Designation :	Chairman and Managing Director
Qualification :	B.E. (Mech.) (Hons.), M.S. (M.I.T.)
Date of Appointment :	01.04.1972
Name :	Mr. S. M. Thakore
Designation :	Director
Name :	Mr. Sudhakar D. Kulkarni
Designation :	Director
Name :	Mr. Pratap G Pawar
Designation :	Director
Name :	Prof. Dr. Uwe Loos
Designation :	Director
Name :	Mr. Prakash Chandrashekhar Bhalerao
Designation :	Executive Director
Qualification :	B.E. (Elect.), M.B.A., D.T.M.
Date of Appointment :	3^rd March, 1987
Previous Employment :	Bharat Steel Tubes Limited, Delhi – Dy. General Manager
Name :	Mrs. Lalita D Gupte
Designation :	Director
Name :	Mr. P. H. Ravikumar
Designation :	ICICI Nominee Director
Name :	Mr. Alan Spencer
Designation :	Director
Name :	Mr. Naresh Narad
Designation :	Director
Name :	Dr. T. Mukherjee
Designation :	Director
Name :	Mr. G. K. Agarwal
Designation :	Deputy Managing Director
Qualification :	B.E. (Mech.), M.B.A.
Date of Appointment :	1^st November, 1976
Previous Employment :	Guest Keen Williams Limited, Howrah, West Bengal
Name :	Mr. Amit B. Kalyani
Designation :	Executive director
Name :	Mr. B. P. Kalyani
Designation :	Executive Director
Name :	Mr. S. E. Tandale
Designation :	Executive Director
Name :	Mr. P. K. Maheshwari
Designation :	Executive Director
Name :	Mr. Sunil Chaturvedi
Designation :	Executive Director

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2011)

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	813,115	0.35
Bodies Corporate	97,089,055	41.71
Sub Total	97,902,170	42.06
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	97,902,170	42.06
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	15469785	6.65
Financial Institutions / Banks	21885340	9.40
Insurance Companies	8337309	3.58
Foreign Institutional Investors	25647085	11.02
Sub Total	71339519	30.65
(2) Non-Institutions
Bodies Corporate	27082073	11.63
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	22420747	9.63
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	9682322	4.16
Any Others (Specify)	4358285	1.87
Clearing Members	1061617	0.46
Trusts	2696025	1.16
Non Resident Indians	600643	0.26
Sub Total	63543427	27.30
Total Public shareholding (B)	134882946	57.94
Total (A)+(B)	232785116	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	9200	-
Sub Total	9200	-
Total (A)+(B)+(C)	232794316	-

BUSINESS DETAILS

Line of Business :

Manufacturing and Sale of Steel Forgings, Finished Machined Crankshafts, Couplings, Front Axle Assembly and Components.

Products :

Product Description	Item Code No. (ITC Code)
Forging Steel Forging Forge Articles	73269099
Crankshafts Finished Machined Crankshafts	84831099
Axles Front Axle Assembly and Component of Motor Vehicle	87081090

PRODUCTION STATUS AS ON 31.03.2011

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Steel Forging	MT	320000	240000	182387(d)
Finished Machined Crankshaft	Nos.	600000	518100	436774
Couplings	MT	600	600	--
Front Axle Assembly and Components	Nos.	600000	533600	325598
Well Head Assembly and Parts	Nos.	5000	--	--
Aluminium Road Wheel	Nos.	4000	4000	1321
General Engineering Equipments	Nos.	1100 (b)	1100	29
Material Handling Equipments	Nos.	1350 (b)	1350	--
Hydraulic and Mechanical Presses	Nos.	250	250	--
Bandshaw Machines for cutting Metallic Round and Square Bars	Nos.	50	50	--
Front Axle Assembly at Dharwar	Nos.	50000 (b)	--	--
Finished Machined Crankshaft (Chakan)	Nos.	300000	241500	160967
Front Axle Assembly and Components at Chakan	Nos.	300000	219600	96877
Transmission Parts	Nos.	3000000	2041000	1861051
Seal Rings, Clamps and Hubs	Nos.	50000	7000	--
Rocker Arm Assembly	Nos.	100000	--	--
Bonnets and Key Shaft	Nos.	50000	--	--
Steel Forgings at Baramati	MT	48000	47250	6565 (d)
Machined Components at Baramati	Nos.	120000	12000	48849
Ring Rolling	MT	45000	40500	2828

NOTE:

(a) Annual Capacity on maximum utilisation basis.

(b) Under Registration with Government Authority.

(c) 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.

(d) Includes captive consumption 72748 M.T.(2009-2010: 47285M.T.) and Baramati 2883 M.T.(2009-2010: 1184M.T.)

GENERAL INFORMATION

Customers :

Wholesalers

· Meritor Automotive, USA

· Dana Corporation, USA

· Mercedes Benz, Germany

· New Holland Ford, Europe

· Mitsubishi Motor Corporation, Japan

· Volvo Trucks, Sweden

· Lister-Petter, Europe

· Dirona, Mexico

· Isuzu, Japan

· Macimex, Mexico

· Kirloskar Group

· Bajaj Auto Limited

· Maruti Udyog Limited

· Premier Automobiles Limited

· Eicher India Limited

· Larsen and Toubro Limited

· Daewoo Motors

· Simpsons Engines

· Hindustan Earthmoving Equipment

· Tata Engineering and Locomotive Company Limited

· Mahindra and Mahindra Limited

· Ashok Leyland Limited

· Bharat Earth Movers Limited

· Greaves Limited

· Swaraj Mazda

· Escorts Limited

No. of Employees :

4000 (approximately)

Bankers :

· Bank of India, Pune, Branch, Maharashtra, India

· Bank of Maharashtra, “Lokmangal”, 1501 Shivajinagar (Head Office), Pune – 411 005, Maharashtra, India

· ANZ Grindlays Bank PLC, Vereinigtes Konigreich

· Bank of Baroda

· Canara Bank

· State Bank of India

· HDFC Bank Limited

· ICICI Bank Limited

· Citibank N A

· Standard Chartered Bank

· ABN Amro Bank NV

· Axis Bank Limited

· Caylon Bank

· Credit Agricole, Corporate and Investment Bank

· The Royal Bank of Scotland N V

Facilities :

(Rs. In Millions)

Secured Loans :	As on 31.03.2011	As on 31.03.2010
Debentures :
2500 11.95 % Redeemable secured Non-Convertible Debentures (2009-2017) Sixteenth series of Rs.1000000/- each For Security.	2500.000	2500.000
3500 10.75% Redeemable secured Non-Convertible Debentures (2009-2015) Seventeenth series of Rs.1000000/- each For Security	3500.000	3500.00
1760 (--) 10.75% Redeemable secured Non-Convertible Debentures (2010-2016) Eighteenth series of Rs.1000000/- each For Security	1760.000	--
Foreign Currency Term Loans : From Bank of India, London	223.050	336.820
From Credit Agricole Corporate and Investment Bank, Singapore	2230.050	2245.500
Rupee Term Loan
From Axis Bank	225.000	0.000
Others : From Banks, against hypothecation of stocks of Semi finished and Finished goods, raw materials, Finished dies and die blocks, Work-in-Progress, Consumable stores and spares, Book Debts etc.
Cash Credit	146.350	108.800
Preshipment Packing Credit-Foreign Currency	472.850	530.260
Interest accrued and due on above	--	0.010
Total	11057.750	9221.390

(Rs. In Millions)

Unsecured Loans	As on 31.03.2011	As on 31.03.2010
Foreign Currency Convertible Bonds (FCCBs)
0.5% Tranche 1 FCCBs, outstanding U.S.$ Nil	--	1953.580
0.5% Tranche 2 FCCBs, outstanding U.S.$ Nil	--	2694.600
0% Tranche A FCCBs, outstanding U.S. $ 40.000 Millions	1784.400	1796.400
0% Tranche B FCCBs, outstanding U.S. $ 39.900 Millions	1779.940	1791.910
Sales tax deferral liability under Government of Maharashtra Package Scheme of Incentives	69.440	69.440
Short Term Loans from Banks under a buyers line of credit for import of goods, etc.	42.100	--
Fixed Deposits matured but unclaimed	0.350	0.400
Short term borrowings by issue of "Commercial Papers" by the Company (Maximum balance during the period Rs.1 000.000 millions)	--	1000.000
Total	3676.230	9306.330

Banking Relations :	--
Auditors :
Name :	Dalal and Shah Chartered Accountants
Internal Auditors :
Name :	Mahajan and Aibara Chartered Accountants
Memberships :	· Confederation of Indian Industry
Associates :	· Kalyani Carpenter Special Steels Limited, Pune, Maharashtra, India · Technica U. K. Limited · ALSTOM Bharat Forge Power Limited · Impact Automotive Solutions Private Limited
Subsidiary companies :	· Bharat Forge – Alstom Joint Venture at Mudra · Bharat Forge – NTPC Joint Venture at Solapur · CDP Bharat Forge GmbH · Bharat Forge Beteiligungs GmbH · Bharat Forge America Inc · Bharat Forge Holding GmbH · Bharat Forge Aluminiumtechnik GmbH and Company KG · Bharat Forge Aluminiumtechnik Verwaltungs GmbH · Bharat Forge Hong Kong Limited · Bharat Forge Kilsta AB · Bharat Forge Scottish Stampings Limited · FAW Bharat Forge (Changchun) Company Limited · Bharat Forge Daun GmbH · BF New Technologies GmbH · BF-NTPC Energy Systems Limited · Kalyani Alstom Power Limited · BF Infrastructure Limited · BF Infrastructure Ventures Limited · BF Power Equipment Limited

CAPITAL STRUCTURE

(AS ON 31.03.2011)

Authorised Capital :

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
	Total		Rs.1050.000 millions

Issued Capital :

No. of Shares	Type	Value	Amount
232970666	Equity Shares (See Note A and B below)	Rs.2/- each	Rs.465.940 millions

Subscribed Capital :

No. of Shares	Type	Value	Amount
232794316	Equity Shares of Rs.2/- each fully paid	Rs.2/- each	Rs.465.590 millions
172840	Add: Forfeited Equity Shares (amount paid up)		Rs.0.090 million
	Total		Rs.465.680 millions

NOTES: OF THE ABOVE SHARES

A Prior to Sub-division of Share Capital:

(i) 47600 Equity Shares of Rs.10/- each were issued as fully paid up for consideration other than cash, pursuant to a contract.

(ii) 8682500 Equity Shares of Rs.10/- each were issued as fully paid Bonus Shares by way of capitalisation of Share Premium Account and Reserves.

(iii) 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.

(iv) The Company had issued 3636500 Equity Shares of Rs.10/- each (later sub-divided into 18182500 Equity Shares 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 U.S.$ 27.50 per GDR (including premium). GDRs outstanding at the close of the year are 9200. The Funds raised have been utilised towards the object of the issue.

(v) The Company had also issued Foreign Currency Convertible Bonds (FCCBs) 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 assess 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.

B Subsequent to Sub-division of the Equity Share Capital:

(i) 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.

(ii) 142045 Equity Shares were issued and allotted on April 09,2010 at a premium of Rs.382.12 per share on conversion of U.S.$ 1250 000 0.50% Foreign Currency Convertible Bonds (FCCBs) Tranche-2 in terms of Offering Circular dated 15th April, 2005.

(iii) The Company issued and allotted to Qualified Institutional Buyers (QIB), 10000000 Equity Shares of Rs.2/- each at a price of Rs.272/- per share aggregating to Rs.2720.000 millions on 28th April, 2010 simultaneous with the issue of 1760 10.75% Non Convertible Debentures (NCDs) of a face value of Rs.1000000/- at par, together with 6500000 warrants at a price of Rs.2/- each entitling the holder of each warrant to subscribe for 1 equity share of Rs.2/- each at a price of Rs.272/- at any time within 3 years from the date of allotment. The subscription money received on issue of warrants has been credited to Capital Reserve as the same is not refundable / adjustable. Out of the funds raised Rs.2365.000 millions has been temporarily deployed in Fixed Deposits with Banks and Mutual Funds and the Balance has been utilized towards the object of the issue. The above securities were subscribed and allotted to Qualified Institutional Buyers on 28th April, 2010.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		465.680	445.400	445.400
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		19488.180	14838.990	14423.880
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		19953.860	15284.390	14869.280
LOAN FUNDS
1] Secured Loans		11057.750	9221.390	8706.590
2] Unsecured Loans		3676.230	9306.330	9372.060
TOTAL BORROWING		14733.980	18527.720	18078.650
DEFERRED TAX LIABILITIES		1556.190	1064.990	1616.710
TOTAL		36244.030	34877.100	34564.640
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		17632.570	17761.090	18309.480
Capital work-in-progress		1610.950	1385.400	2322.810
INVESTMENT		9198.190	7209.470	3671.990
DEFERREX TAX ASSETS		0.000	0.000	2.100
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	4684.340	3947.980	3642.420
	Sundry Debtors	4197.020	3071.680	2601.070
	Cash & Bank Balances	1465.760	4934.990	3667.020
	Other Current Assets	995.300	577.540	839.340
	Loans & Advances	7525.030	5583.840	6432.910
Total Current Assets		18867.450	18116.030	17182.760
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	4634.650	3644.000	2253.430
	Other Current Liabilities	2273.400	3387.830	1659.950
	Provisions	4157.080	2563.060	3011.120
Total Current Liabilities		11065.130	9594.890	6924.500
Net Current Assets		7802.320	8521.140	10258.260
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		36244.030	34877.100	34564.640

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Sales, Gross	29962.730	18916.890	20959.960
		Less: Excise Duty	1528.880	871.960	1202.330
		Net Sales	28433.850	18044.930	19757.630
		Operating Income	1039.640	519.050	828.280
		Other Income	461.980	323.380	476.740
		TOTAL (A)	29935.470	18887.360	21062.650
Less	EXPENSES
		Manufacturing and other Expenses	23526.710	15435.800	17991.560
		TOTAL (B)	23526.710	15435.800	17991.560
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		6408.760	3451.560	3071.090
Less	FINANCIAL EXPENSES (D)		0.000	0.000	0.000
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		6408.760	3451.552	3071.090
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1932.680	1644.390	1494.440
	PROFIT BEFORE TAX (E-F) (G)		4476.080	1807.170	1576.650
Less	TAX (H)		1370.410	536.710	543.800
	PROFIT AFTER TAX (G-H) (I)		3105.670	1270.460	1032.850
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		6833.230	6167.510	5570.290
Add	EXCESS /(SHORT) PROVISION FOR TAXATION AND TAX PAYMENTS		2.580	0.430	(29.040)
Less	APPROPRIATIONS
		Debenture Redemption Reserve	399.420	206.220	26.100
		General Reserve	311.000	127.500	120.000
		Proposed Dividend	814.780	232.790	222.650
		Tax on Proposed Dividend	132.180	38.660	37.840
	BALANCE CARRIED TO THE B/S		8284.100	6833.230	6167.510
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	12110.340	6996.690	9883.000
	TOTAL EARNINGS		12110.340	6996.690	9883.000
	IMPORTS
		Raw Materials	448.180	319.980	226.140
		Stores & Spares	498.540	338.810	699.070
		Capital Goods	448.980	218.670	1442.850
	TOTAL IMPORTS		1395.700	877.460	2368.060
	Earnings Per Share (Rs.)		13.39	5.71	4.51

QUARTERLY RESULTS

PARTICULARS	30.06.2011	30.09.2011
Type	1^st Quarter	2^nd Quarter
Net Sales	8576.700	9099.900
Total Expenditure	6492.500	6946.100
PBIDT (Excl OI)	2084.200	2153.800
Other Income	147.200	206.900
Operating Profit	2231.400	2360.700
Interest	300.200	309.600
Exceptional Items	0.000	0.000
PBDT	1931.200	2051.100
Depreciation	516.900	538.900
Profit Before Tax	1414.300	1512.200
Tax	440.100	448.200
Provisions and contingencies	0.000	0.000
Profit After Tax	974.200	1064.000
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	974.200	1064.000

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	10.37	6.73	4.90
Net Profit Margin (PBT/Sales)	(%)	15.18	5.85	7.66
Return on Total Assets (PBT/Total Assets}	(%)	12.26	3.03	4.44
Return on Investment (ROI) (PBT/Networth)		0.22	0.07	0.11
Debt Equity Ratio (Total Liability/Networth)		1.29	1.84	1.68
Current Ratio (Current Asset/Current Liability)		1.70	1.88	2.48

LOCAL AGENCY FURTHER INFORMATION

PERFORMANCE OF THE COMPANY:

a) Total Income (on stand-alone basis)

During the year, the total income of the Company was Rs.29935.000 (Rs.18887.000 millions) representing increase of 58.49% .The Company saw strong revival of demand both in domestic and export markets and was able to respond promptly by ramping up supplies. New capacities created at Baramati with 80 M-T Hammer and heavy duty machining line for crankshafts became fully operational and contributed significantly to Company’s growth.

b) Export Revenue (on stand-alone basis)

During the year, Exports turnover of the Company was Rs.12195.000 millions (Rs.7109.000 millions) represents increase of 71.54%. On the global front, there was consistent and progressive QoQ recovery over FY 2009 levels in Europe and North America. This applied to the Automotive Sector, though, lower than previous peaks scaled earlier in FY 2006-07. These sectors are of vital importance for the Company as such, the revival augured well. The Company was also able to enhance its market share in the period through a stable and reliable performance for its customers. Additionally, the Company’s strong focus for foray in Non-Automotive segments helped to augment growth opportunities. Overall, Company has been able to post strong results as a result of above factors. Performance of overseas operations has also improved in the review period due to the strong sustainability measures initiated in FY 2009.The Company continues to successfully secure new business and growth opportunities in varied industrial sectors – automotive as well as non-automotive.

SUBSIDIARIES:

The Company has 18 subsidiaries of which 13 are overseas and 5 are in India. A summary of their performance is given elsewhere in the Annual Report. In view of the unprecedented downturn in the automotive sectors across the globe, during year 2010-11, the Company had carried the process of restructuring and rightsizing the operations of its wholly owned subsidiaries to adopt for lower market volumes. This along with improvement in market conditions has resulted in turnaround of operations of overseas subsidiaries and they have achieved overall breakeven performance for the calendar year 2010 .Company’s initiatives in capital goods sector and EPC activities are in start up phase and will be fully operational by 2013.

As a part of such restructuring program, operations and assets of Bharat Forge Scottish Stampings Limited. (BFSSL), subsidiary of the Company active in the European markets, were transferred to other group companies in Bharat Forge Group. Hence, the accounts of BFSSL have not been prepared under ‘going concern’ basis.

The Auditors of Bharat Forge America Inc. (BFA), subsidiary of the Company, active in the North American markets, have, without qualifying their reports, expressed a possibility about BFA’s inability to continue as going concern due to market conditions in North America. BFA has implemented various measures to improve the performance, which include achievement of considerable saving in wage cost following negotiations with Union, new business initiatives with widening customer base and product portfolio, a very tight control on costs etc. It is expected that these steps, along with the support provided by the Company would enable BFA to revive the operations. Hence, the accounts of BFA have been prepared on the ‘going concern’ basis.

A significant portion of the consolidated revenues is generated by the subsidiary companies. Detailed analysis of the working of the subsidiary companies appears in the Management Discussion and Analysis.

SUBSIDIARY COMPANIES ACCOUNTS:

In accordance with the general circular issued by the Ministry of Corporate Affairs, Government of India, the balance Sheet, Profit and Loss Account and other documents of the subsidiary companies are not being attached with the Balance Sheet of the Company. The Company will make available the Annual Accounts of the subsidiary companies and the related detailed information to any member of the Company who may be interested in obtaining the same. The annual accounts of the subsidiary companies will also be kept open for inspection at the Registered Office of the Company and that of the respective subsidiary companies. The Consolidated Financial Statements presented by the Company include the financial results of its subsidiary companies.

Accordingly, Company has not attached to the Balance Sheet, the copies of the Balance Sheets, Profit and Loss

Accounts, Directors’ Reports and Auditors’ Reports and other documents required to be attached under Section 212(1) of the Act of its subsidiary companies, namely:

Foreign Subsidiaries:

i) CDP Bharat Forge GmbH, Germany,

ii) Bharat Forge Holding GmbH, Germany

iii) Bharat Forge Aluminiumtechnik GmbH and Co. KG, Germany

iv) Bharat Forge Aluminiumtechnik Verwaltungs GmbH and Co. KG, Germany

v) Bharat Forge Daun GmbH, Germany

vi) Bharat Forge America Inc., U.S.A.

vii) Bharat Forge Beteiligungs, GmbH, Germany

viii) Bharat Forge Kilsta AB, Sweden

ix) Bharat Forge Scottish Stampings Limited., Scotland

x) Bharat Forge Hong Kong Limited. (Formerly, Lucrest Limited), Hong Kong

xi) FAW Bharat Forge (Changchun) Company Limited., China

xii) BF New Technologies GmbH, Germany and

xiii) Bharat Forge International Limited., UK

Indian Subsidiaries:

xiv) BF-NTPC Energy Systems Limited.

xv) Kalyani ALSTOM Power Limited.

xvi) BF Infrastructure Limited.

xvii) BF Infrastructure Ventures Limited. And

xviii) BF Power Equipment Limited.

MANAGEMENT DISCUSSION AND ANALYSIS:

THE EXTERNAL ENVIRONMENT

2010-11 has reaffirmed the strength in the global economic recovery. In 2009, global output had reduced by 0.5%. Several major developed economies had witnessed a fall in economic output. Most of these developed economies bounced back in 2010 : USA grew by 2.8% in 2010 against (-) 2.6% in 2009; the Euro Zone grew by 1.7% in 2010 against (-) 4.1% in 2009; Japan grew by 3.9% in 2010 against (-) 6.3% in 2009. And, within the Euro Zone, Germany has staged a very strong recovery from (-) 4.7% in 2009 to 3.5% in 2010. This has contributed significantly to a recovery in world output growth to 5% in 2010

The developing and emerging economies also witnessed higher growth in economic output of 7.1% in 2010 against 2.6% in 2009. China and India recovered strongly and are well on their high growth trajectory. Chart B shows that from the third quarter of 2009, both China and India have registered strong growth rates with the trend continuing throughout 2010. Advanced estimates suggest that while China grew by around 10% in 2010, India will register a GDP growth of 8.5% in 2010-11.

While growth is back, there are some concern areas. An environment of rising global demand, supply side constraints and increased speculative activities have led to sharp increases in commodity prices — such as crude oil, minerals and metals and food. With higher consumer and producer price inflation in all key emerging markets, especially India and China, it is not surprising that the central banks have raised interest rates and tightened money supply to curtail excess demand. This development carries two risks. First, is that the higher cost of finance may affect consumer demand. Second, is that it might impede future investments leading to slowing down of economic growth. In addition to these issues, higher input

costs are exerting pressure on profit margins.

BUSINESS PERFORMANCE- AN OVERVIEW:

In FY2006, Subject set out on a new growth path where it focused on aggressively developing its industrial sector components business and chalked out a large investment plan to develop dedicated facilities in Baramati, Satara and Pune. In the automotive forgings business, it planned to further grow and consolidate its position by increasing customer base and penetrating deeper into global markets through its Indian and overseas operations.

However, the Company was severely impacted by the global economic turmoil in 2008. Subject responded to the market adversities by looking inwards and reorienting its business focus. The Company recalibrated its business strategy and focused on streamlining operations to create a leaner and more cost efficient enterprise that could generate profits by operating at lower levels of capacity utilisation. And, in FY2011, with much of the strategic initiatives of FY2006 and the restructuring post 2008 firmly in place, Bharat Forge leveraged the revival across its target markets to deliver strong results across its

business platforms.

Key highlights of this performance are:

» The standalone operations out of India recorded 58.5% growth in revenues and a 144.5% growth in PAT.

» Export growth of 72.6% was higher than the underlying market growth. The export growth was driven by new customer additions, strong performance of non auto, new product developments and entry into newer geographies.

» The Non-Auto business increased by 89.2% with major ramp up in the new facilities. The new facilities contributed Rs.4273.000 millions to revenues against Rs.1907.000 million in FY2010 – growth of 124.1%.

» With the Non-Auto business gaining traction, it has emerged as key component for SUBJECT’s global business and accounts for 25% of the Company’s consolidated sales in FY2011.

» The overseas subsidiaries witnessed a strong revival. With 45.2% growth in total income, PBT has turned around from a loss of Rs.2454.000 millions in CY2009 to a profit of Rs.34.000 million in CY2010.

» The major development in the overseas subsidiaries business is the turnaround of FAW-BF – the Joint Venture in China. Total Income increased by 82.0% and the Joint Venture registered a PBT of Rs.168.000 million in CY2010 against losses in previous years.

» The Capital goods business has also gained traction with both the Joint Venture with Alstom and the EPC business making their first successful bids.

STAND-ALONE FINANCIAL HIGHLIGHTS:

» Total Income increased by 58.5% from 18,887.36 million in FY2010 to Rs.29935.470 millions in FY2011.

» Operating profit before interest, taxes, depreciation and amortisation (PBDIT) increased by 62.4% from Rs.4693.380 millions in FY2010 to Rs.7623.180 millions in FY2011.

» The EBITDA margin has increased from 24.8% in FY2010 to 25.5% in FY2011.

» PBT before Exceptional item increased by 121.4% from Rs.2021.270 millions in FY2010 to Rs.4476.080 millions in FY2011.

» PAT increased by 144.5% to Rs.3105.670 millions in FY2011.

» ROCE increased from 8.7% in FY2010 to 15.7% in FY2011; RONW was 15.6% in FY2011.

In the standalone business, in a concerted way, there were further efforts to compress working capital. This, coupled with better utilisation of assets has reduced interest as a ratio to total income from 5.4% in FY2010 to 4.1% in FY2011.

JOINT VENTURE WITH ALSTOM:

This includes two separate Joint Ventures: the first where Subject has 49% stake and will manufacture turbine generators for supercritical thermal power plants; and the second Joint Venture where Subject has 51% stake which will focus on manufacture of associated auxiliaries. The Joint Ventures will design, engineer and manufacture turbine and generator-islands of the 600 MW to 800 MW supercritical range, with a total capacity of 5 GW per annum.

Construction work is on in full swing for state -of-the-art integrated plant set up over 120 acres at the SEZ in Mundra (Gujarat). It will be the largest integrated facility for turbine, generators and auxiliaries manufacturing in the country. The facility will have a total capacity of manufacturing 5,000 MW of Turbine Generators annually. The estimated total investment is around Rs.17000.000 million, with Subject equity share being Rs.Rs.3000.000 millions.

JOINT VENTURE EITH NTPC

BF-NTPC Energy Systems Limited (BFNESL) is a Joint Venture with NTPC Limited, India’s largest power generation company, where BFL has 51% stake. In March 2010, the Joint Venture made a beginning with the laying of the foundation stone of its manufacturing facility at Solapur in south-eastern Maharashtra. The Joint Venture has been set up to primarily manufacture Balance of Plant (BOP) equipment for the power sector (thermal, hydro and nuclear) with a technology intensive product range that should have wider application across other sectors like oil and gas, petrochemicals, steel and mining. Four specific products have been identified for development through this Joint Venture. This includes high pressure pumps, high pressure valves, critical piping and castings for turbine casings. The estimated total investment for this Joint Venture is around Rs.2000.000 millions with Subject equity share being Rs.500.000 millions.

The Joint Venture has started dialogue for valves, casting and pipe manufacturing. At the moment the BFNESL organisational ramp-up is in progress.

OUTLOOK:

FY2011 has seen the Company consolidate its recovery. With the focus on operations restructuring and optimal utilisation of facilities in India and at the subsidiaries, subject has emerged from the downturn a structurally better equipped entity. With market demand showing secular growth, the Company is well positioned to leverage its internal cost advantages to generate greater growth and profits.

In FY2011, global subsidiaries have registered a remarkable turnaround in performance and were close to breaking even. The Company is confident of the future of these entities and believes with some effort these companies, as a block will generate returns in the near future. In the automotive business, subject’s main addressable segment in USA and Europe, the Heavy truck segment will continue to grow, with volumes still way below the pre-crisis peaks. In India CV growth will be lower than the last two years, but the base market has grown and subject will have a competitive edge with newer more technically advance models being launched.

The Company believes in the infrastructure ledgrowth of India; and it is well positioned to leverage opportunities in the Indian market on both the automotive as well as on the non automotive front. The ramp up of non-automotive facilities has started giving results and is expected to continue in the coming year. The capital goods business with strong focus on the Indian power sector has scope for rapid incremental growth in the coming years.

Bharat Forge, with its technology, scale, global reach, capability and cost structure, will have opportunities to consolidate its global leadership position. With a strong India presence and lean overseas subsidiaries, subject believes it is back on growth path and is fairly optimistic about its prospects in FY2012.

CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF:

(Rs. In Millions)

Particulars	As on 31.03.2011	As on 31.03.2010
A. Sales Bills discounted of Which:	4911.080	3799.810
Bills since realised	1739.260	904.160
Matured, Overdue and outstanding since close of the period	--	--
B. Guarantees given by the Company on behalf of other companies:
Balance outstanding	1845.430	570.090
(Maximum amount)	(2025.610)	(830.940)
C. Claims against the Company not acknowledged as Debts- to the extent ascertained	142.000	147.490
D. Disputed Income Tax matters	--	104.320
E. Excise/Service Tax Demands - matters under dispute	184.650	281.850
F. Customs demands - matters under dispute	50.970	322.150

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)

BUSINESS DESCRIPTION:

Subject operates in two business segments: Forgings and General Engineering Trading. The Company is a manufacturer and exporter of automotive components and chassis component manufacturer. The Company also manufactures specialized components for the aerospace, power, energy, oil and gas, rail and marine, mining and construction equipment, and other industries. The Company’s products are of two types: automotive and non-automotive. Subject manufactures a range of engineered critical and safety components for engine and chassis applications for the automotive industry. It focuses on non-automotive sectors, such as windmill shafts, gas engine components for energy; structural and rotating components for aerospace; valve bodies, bonnets, choke bodies and composite blocks for oil and gas; engine components for construction and mining; engine components and turnouts for railways, and engine components for marine. For the three months ended 30 June 2010, Subject's revenues increased 66% to Rs.10.13B. Net income after tax totaled Rs.620.700 millions, vs. a loss of Rs.461.400 millions. Revenues reflect an increase in income from operations. Net profit after tax also reflects absence of restructuring and redundancy cost, presence of exchange gain against a loss in prior period and improved operating margin. Subject operates in two business segments.

MANAGEMENT:

Biography of Directors:

Babasaheb Neelkanth Kalyani

Title: Executive Chairman of the Board, Managing Director

Function: Chairman

Education: MS , Massachusetts Institute of Technology

B Mechanical Engineering, Birla Institute of Technology

Mr. B. N. Kalyani is Executive Chairman of the Board, Managing Director of Bharat Forge Limited. Mr. Kalyani is a Mechanical Engineer from the Birla Institute of Technology and Sciences, Pilani, Rajasthan. He also has an M.S. from the Massachusetts Institute of Technology, USA. Mr. B.N. Kalyani is also the Chairman of USD 1.5 Billion, Kalyani Group. The Kalyani Group is one of the Industrial Houses in India, having core businesses in Steel and Steel based products, Forgings and Automotive Components. The Kalyani Group has joint ventures with world leaders, which include Meritor Automotive, USA; Carpenter Technology Corporation, USA; Hayes Lemmerz, USA/Germany; Robert Bosch, Germany; and Sharp Corporation, Japan. In addition, Group companies have technical collaborations with several of the companies in the world. Mr. Kalyani has represented the Confederation of Indian Industry (CII) on its various regional committees and is currently a member of the CII National Council. Mr. Kalyani is associated with several other institutions. He is the founding Chairman of the Governing Board of the Indian Institute of Management, Indore, Vice President of Maratha Chamber of Commerce, Industry and Agriculture, Pune, Member of the Executive Committee of the India Education Initiative, Chairman of the Pratham Pune Education Foundation and a former Chairman of American Society of Metals. Mr. Kalyani is also member of the World Economic Forum, Switzerland and the Common Wealth Business Council U.K. Mr. Kalyani’s contributions to industry have been recognised through various awards, which include the award received from FIE Foundation in 1991. Mr. Kalyani is also a recipient of the Prestigious National Press Award, 1995.

G. K. Agarwal

Title: Deputy Managing Director, executive Director

Function: Director/Board Member

Mr. G. K. Agarwal is Deputy Managing Director, Executive Director of Bharat Forge Limited. He has a B.E. (Mechanical) and M.B.A. He has over 36 years of work experience. Mr. Agarwal has been on the company's Board since April 1, 1998. He was designated as Deputy Managing Director with effect from May 23, 2006. He is responsible for the company’s operations viz. Marketing, Manufacturing, Purchase, Personnel, Exports and new projects. Mr. G.K. Agarwal is also Director on the Board of Directors of BF Utilities Limited. and Kalyani Alstom Power Limited. Mr. Agarwal is also Director on the Board of Directors of the subsidiaries of the Company viz. CDP Bharat Forge GmbH, Bharat Forge Aluminiumtechnik GmbH and Co. KG, Bharat Forge Hong Kong Limited. and Bharat Forge Daun GmbH.

Prakash Chandrashekhar Bhalerao

Title: Non-Executive Director

Function: Director/Board Member

Education: MBA Finance, Birla Institute of Technology

B Engineering, Government College of Engineering, Pune

Mr. Prakash Chandrashekhar Bhalerao, B.E., M.B.A., D.T.M., is a Non-Executive Director of Bharat Forge Limited., since August 1, 2005. Mr. P.C. Bhalerao has a B.E., M.B.A. and a D.T.M. He is a non-executive Director on the Board. Mr. Bhalerao has over 31 years of work experience. Mr. P.C. Bhalerao is also Director on the Board of Directors of Meritor HVS (India) Limited. Nandi Infrastructure Corridor Enterprises Limited. Nandi Economic Corridor Enterprises Limited. Kumar Housing and Land Development Limited. and Sanghvi Movers Limited. Mr. Bhalerao is also Director on the Board of Directors of the subsidiaries of the Company viz. CDP Bharat Forge GmbH, Bharat Forge Aluminiumtechnik GmbH and Co. KG, and Bharat Forge Daun GmbH.

Sunil K. Chaturvedi

Title: Non Executive Independent Director

Function: Director/Board Member

Mr. Sunil K. Chaturvedi is Executive Director of Bharat Forge Limited. He joined Indian Administrative Services, Government of India in August 1988 and worked in various capacities till January 31, 2008. He is a chartered accountant. He is responsible for Capital Goods Division of the Company.

Lalita D. Gupte

Title: Non-Executive Independent Director

Function: Director/Board Member

Mrs. Lalita D. Gupte is Non-Executive Independent Director of Bharat Forge Limited. She brings with her unique experience in the areas of Retail, Corporate and International Banking, Leasing, Planning and Resources and other areas. Mrs. Gupte holds a Bachelor’s Degree in Economics and a Master’s Degree in Management Studies. She was previously with ICICI Bank Limited. as Joint Managing Director. Currently, she is the Chairperson of ICICI Venture Funds Management Company Limited. and Director of Nokia Corporation, First Source Solutions Limited., Kirloskar Brothers Limited.and Swadhaar FinAcess.

Amit B. Kalyani

Title: Executive Director

Function: Director/Board Member

Education: B Mechanical Engineering, Bucknell University

Mr. Amit B. Kalyani is an Executive Director of Bharat Forge Limited. He joined the Company as Chief Technology officer and was appointed as Executive Director with effect from 11 May 2005. Mr. Amit Kalyani also serves on the Boards of Kalyani Net Ventures Limited, Nandi Economic Corridor Enterprises Limited, Epicenter Technologies Private Limited, True Value Holdings Private Limited, Kalyani Steels Limited, Nandi Infrastructure Corridor Enterprises Limited, BF Utilities Limited, Bhalchandra Investment Limited., Forge Investment Limited., Mundhwa Investment Limited., Jalkamal Investment and Finance Limited., Jalkumbhi Investment and Finance Limited., CDP Bharat Forge GmbH., Bharat Forge Aluminiumtechnik, Bharat Forge America Inc., Bharat Forge Hong Kong Limited, Bharat Forge Kilsta AB, Bharat Forge Scottish Stampings Limited and FAW Bharat Forge (Changchun) Company Limited.

Sudhakar D. Kulkarni

Title: Non-Executive Independent Director

Function: Director/Board Member

Education: B , Bombay University

Mr. Sudhakar D. Kulkarni is Non-Executive Independent Director of Bharat Forge Limited. He is a Fellow Member of The Institute of Chartered Accountants of India. He is a former Managing Director and Chief Executive Officer of Larsen and Toubro Limited. He has over 46 years of work experience. Mr. Kulkarni has been on the company's Board since July 24, 1999. Mr. S.D. Kulkarni is also Director on the Board of Directors of Sesa Goa Limited., Syngenta India Limited. and SICOM Capital Management Private. Limited.

Uwe Loos

Title: Non-Executive Independent Director

Function: Director/Board Member

Prof. Dr. Uwe U. Loos, Ph.D., is Non-Executive Independent Director of Bharat Forge Limited. Dr Loos was a Member of the Management Board of Porsche AG (1993), for production and logistics and was responsible for the introduction and implementation of a programme to establish worldwide competitiveness in manufacturing. He joined FAG in 1998, a ball bearing manufacturer and was appointed Chairman of the Board. During his tenure at FAG, he gained experience with its global operations including India. Dr. Loos has worked with companies in the automotive industry such as Siemens, Krupp, INA and GKN. He also served as Chairman on the board of DEKRA and is currently a member of the various Supervisory Boards in the automotive industry. Dr. Loos also serves on the Boards of Gildemeister AG, Bieledeld, Cloos GmbH, Dorma GmbH, Trumpd GmbH and SSB GmbH.

P. K. Maheshwari

Title: Executive Director

Function: Director/Board Member

Mr. P. K. Maheshwari is an Executive Director of Bharat Forge Limited., since 23 May 2006. He was Group Chief Finance Officer of the Company. He also serves on Boards of Indian seamless Metal Tubes Limited. , Nandi Highway Developers Limited. , Nandi Infrastructure Corridor Enterprises Limited, Nandi Economic Corridor Enterprises Limited, CDP Bharat Forge GmbH., Bharat Forge Aluminiumtechnik Verwaltungs GmbH, Bharat Forge America Inc., Bharat Forge Hong Kong Limited, Bharat Forge Kilsta AB, Bharat Forge Scottish Stampings Limited and FAW Bharat Forge (Changchun) Company Limited.

S. S. Marathe

Title: Director

Function: Director/Board Member

T. Mukherjee

Title: Non-Executive Independent Director

Function: Director/Board Member

Dr. T. Mukherjee is Non-Executive Independent Director of Bharat Forge Limited. Dr. Mukherjee is M. Met and Ph.D. was appointed as additional Independent Director on the Board from 23 January 2010. Dr. Mukherjee, a veteran Metallurgist, has authored 134 papers in his career spanning four decades. He has been a visiting lecturer at University of Sheffield, U.K. and Adjunct Professor at I.I.T. Kharagpur. He is also a recipient of various prestigious awards. Dr. Mukherjee has total work experience of 42 years. Dr. T. Mukherjee is also Director on the Board of Directors of TIL India Limited., NICCO Corporation Limited., WBIDC, Rane (Madras) Limited. and Tractors India Private Limited.

Naresh Narad

Title: Non-Executive Independent Director

Function: Director/Board Member

Mr. Naresh Narad is Non-Executive Independent Director of Bharat Forge Limited. He holds a bachelor’s degree in arts, LL.B. and a veteran I.A.S. Civil Servant. Mr. Naresh Narad was appointed as additional Independent Director on the Board from 24 July 2009. Mr. Naresh Narad has held various important positions in the Government of India and Government of Madhya Pradesh. Mr. Naresh Narad is also a Director on the Board of Directors of FAT Pipe Networks Limited. and NAFTO Gaz India Private. Limited.

Pratap G. Pawar

Title: Non-Executive Independent Director

Function: Director/Board Member

Education: BE, Birla Institute of Technology and Science, Pilani

Mr. Pratap G. Pawar is Non-Executive Independent Director of Bharat Forge Limited. He has a B.E. degree from Birla Institute of Technology and Science, Pilani, Rajasthan. He has 41 years of work experience. Mr. Pawar has been on the company's Board since May 24, 2005. Mr. P.G. Pawar is also Director on the Board of Directors of P.P. Holdings Limited., Finolex Cables Limited., Kirloskar Engines India Limited., Force Motors Limited., Sakal Papers Limited., Ajay Metachem Sud Chemie Private. Limited., Sakal Printers Private. Limited., United Risk Insurance Broking Company Private. Limited., Karha Infrastructure Private. Limited., United Metachem Private. Limited., Panhala Investments Private. Limited., International Conventions India Private. Limited., Karha Developers and Miners Private. Limited., Rajgadh Agro Farms Private. Limited., Pasle Agro Farms Private. Limited. and Bhimthadi Developers and Miners Private. Limited.

Puranam Hayagreeva Ravikumar

Title: Non-Executive Independent Director

Function: Director/Board Member

Education: B Commerce, Osmania University

Shri. Puranam Hayagreeva Ravikumar is Non-Executive Independent Director of Bharat Forge Limited. Mr. P. H. Ravikumar, Nominee Director of ICICI Bank Limited, resigned and ceased to be Director w.e.f. 26 March 2009, his nomination having been withdrawn by ICICI Bank Limited. He was subsequently appointed as Independent Director w.e.f. 20 May 2009. Mr. P.H. Ravikumar has a done his Bachelors degree in Commerce and CAIIB, an AIB from London and a Diploma in French. Mr P.H. Ravikumar who is the Chief Executive Officer of the National Commodity and Derivatives Exchange Limited also serves on the Boards of Eveready Industries Limited, The Federal BanK Limited.,National Collateral Management Services Limited. , NABARD Consultancy Services and SKS Micro-Finance.

Alan Spencer

Title: Non-Executive Independent Director

Function: Director/Board Member

Education: MA, University of Oxford

Mr. Alan Spencer is Non-Executive Independent Director of Bharat Forge Limited. He has M.A. from Balliol College, Oxford. He has knowledge and experience of the Automotive industry, being associated with Ford Motors Company for 38 years.

S. E. Tandale

Title: Executive Director

Function: Director/Board Member

Mr. S. E. Tandale is an Executive Director of Bharat Forge Limited., since 23 May 2006. He has served with the Company for 15 years and was Senior Vice President (International Trade Division). He is also a director on the Boards of Bharat Forge America Inc., Bharat Forge Kilsta AB, and Bharat Forge Scottish Stampings Limited.

Shobhan M. Thakore

Title: Non-Executive Independent Director

Function: Director/Board Member

Education: LLB, Bombay University

BA Politics, Bombay University

Mr. Shobhan M. Thakore is Non-Executive Independent Director of Bharat Forge Company Limited. He is a solicitor is a Partner in at solicitors’ firm AZB and Partners. Mr. Thakore has been on the Board of the Company since 27 June 1986. Mr. Thakore also serves on the Boards of Alkyl Amines Chemicals Limited, Camphor and Allied Products Limited, Scandent Solutions Corporation Limited, Carraro India Limited, Carraro PNH Components (India) Private Limited Morarjee Textiles Limited and Turbo Gears India Private Limited. DSP Merrill Lynch Investment Managers and Seaudent Solutions.

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30^th SEPTEMBER, 2011

(Rs. in millions)

Particulars	Quarter ended 31.09.2011 (Unaudited)	Half Year ended 31.09.2011 (Unaudited)
a) Sales and Income from Operations
- Domestic	4909.300	9796.100
- F.O.B Value and Corresponding Income	4316.300	8127.500
Total Sales	9225.600	17923.600
Less: Excise Duty	410.500	815.100
Total Net Sales	8815.100	17108.500
b) Other Operating Income	284.800	568.100
Total Net Sales / Income from Operations	9099.900	17676.600
Total Expenditure
(a) (Increase)/decrease in Stock in Trade	(85.500)	(56.100)
(b) Consumption of Raw Materials	4201.200	8022.500
(d) Employees Cost	633.200	1223.800
(e) Depreciation	538.900	1055.800
(f) Manufacturing Expenses	1583.900	3057.200
(g) Other	613.300	1191.200
Total Expenditure	7485.000	14494.400
Profit / (Loss) From Operations before other Income Interest & Exceptional Items	1614.900	3182.200
Other Income	206.900	354.100
Profit/(Loss) before Interest and Exceptional items	1821.800	3536.300
Interest	309.600	609.800
Profit / (Loss) after interest before Exceptional items	1512.200	2926.500
Exceptional Items	--	--
Profit / (Loss) From Ordinary activities before Tax	1512.200	2926.500
Tax Expenses	448.200	888.300
Net Profit/(Loss) From Ordinary activities after Tax	1064.000	2038.200
Extraordinary Items	--	--
Net Profit/(Loss) for the period	1064.000	2038.200
Paid Up Equity Share Capital ( Face Value of Rs.2/- each )	465.700	465.700
Paid up debt capital of the company*		7760.000
Reserves excluding Revaluation Reserves as per balance sheet of previous year accounting year
Debenture redemption reserve		836.000
-Basic earning per share of Rs.2/- each before and after extraordinary items	4.57	8.75
-Diluted earning per share of Rs.2/- each before and after extraordinary items	4.46	8.55
Debt equity ratio**
Debt service coverage ratio***
Interest service coverage ratio****
Total Public Share Holding
- Number of Shares	134882946	134882946
- Percentage of shareholding	57.94%	57.94%
Promoters and Promoter group share holding
a) Pledged / Encumbered
- Number of Shares	0.00	0.00
- Percentage of share (as a % of the total shareholding of promoter and promoter group)	0.00	0.00
- Percentage of shares(as a % of the total share capital of the company)	0.00	0.00
b) Non-encumbered
- Number of Shares	97902170	97902170
- Percentage of Share (as a % of the total shareholding of promoter and promoter group)	100.00	100.00%
- Percentage of Share (as a % of the total share capital of the company)	42.06%	42.06%

Notes of financial results:

1 Disclosure of assets and liabilities as per clause 41(I)(ea) of the listing agreement for the year ended 31.03.2011.

Particulars	31.09.2011 (Unaudited)
SOURCES OF FUNDS :
Shareholders’ Funds:
a) Capital	465.700
b) Reserves and Surplus	20936.200
Sub Total	21401.900
Loan Funds
Minority interest	15987.300
Foreign currency monetary item translation difference account (FCMITDA)	--
Deferred tax adjustments (net)	1509.100
Total	38898.300
APPLICATION OD FUNDS :
Fixed Assets	20417.100
Investments	9163.700
Current assets, loans and advances
a) Inventories	4818.300
b) Sundry Creditors	4751.700
c) Cash and Bank Balances	2155.300
d) Other Current assets	1301.200
e) Loans and Advances	8362.100
Sub Total	21388.600
Less: Current Liabilities and Provisions
a) Liabilities	7935.300
b) Provisions	4135.800
Sub Total	12071.100
Net Current Assets	9317.500
Miscellaneous Expenditure (to the extent not written off or adjusted)	--
Profit and loss account	--
Total	38898.300

2. Previous year/ period's figures are regrouped wherever necessary.

3. During the quarter, four investor complaint was received and redressed resulting in Nil complaint pending at the end of the quarter

4. The above results have been reviewed by the Audit Committee and approved by the Board of Directors of the Company at its meeting held on 09.11.2011. The statutory Auditors of the Company have carried out a “Limited Review” of the results of the Quarter and half year ended 30.09.2011.

*Paid up Debt Capital represents Non-convertible Debentures

**Debt to Equity : Net Debt/Net Worth

(Net Debt : Secured Loan + Unsecured Loan – Cash and Bank – Current Investments)

(Net Worth : Equity Share Capital + Reserves abs surplus – Miscellaneous Expenditure to the extent not written off or adjusted - Foreign Currency Translation Reserve)

***Debt Service Coverage Ratio : EBIDT / (Financial Charges + Principal Repayment during the year)

(EBIDT : Profit before taxes + Finance Charges + Depreciation)

****Interest Service Coverage Ratio : EBIDT / Finance Charges

SEGMENT WISE REVENUE RESULTS AND CAPITAL EMPLOYED

Particulars	Quarter ended	Half Year ended
	30.09.2011	30.09.2011
Segment Reserve
Steel Forging	9047.100	17584.800
Gen. Engg.. Trading etc.	71.400	126.300
Sub total	9118.500	17711.100
Less : Inter Segment Revenue	18.600	34.500
Net Sales / Income from Operations	9099.900	17676.600
Segment Results
Profit/ (Loss) (before tax and interest from each segment)
Steel Forging	2229.300	4167.400
Gen. Engg.. Trading etc.	27.300	47.300
Sub Total	2256.600	4214.700
Less:
i. Financial Cost	309.600	609.800
ii. Other Un-allocated expenditure Net of Unallocated expenditure	434.800	678.400
Total Profit/ (Loss) before Tax	1512.200	2926.500
Capital Employed
(Segment Assets – Segment Liabilities)
Steel Forging	23482.100	23482.100
Gen. Engg.. Trading etc.	390.100	390.100
Unallocated Assets less Liabilities
-Investments in Subsidiaries/Joint Ventures	5531.700	5531.700
-Surplus Funds temporarily deployed	5315.500	5315.500
-Others	4178.900	4178.900
	38898.300	38898.300
Sub Total
Secondary Information in respect of Geographical segment on the basis of location of customers
Domestic	4783.600	9549.100
Exports	4316.300	8127.500

WEBSITE DETAILS:

PROFILE:

Subject, the flagship company of the USD 2.4 billion Kalyani Group, manufactures various forged and machined components for the automotive and non-automotive sector.

Since commencement of operations in 1966, subject has achieved several milestones and is today among the largest and technologically most advanced manufacturer of Forged and Machined components. As one of India’s emerging multinationals, the company has manufacturing operations across 12 locations and 6 countries - 4 in India, 3 in Germany, one each in Sweden, Scotland, USA and 2 in China.

Their customers include the top five Passenger Car and top five Commercial Vehicle Manufacturers in the world. The list includes virtually every automotive OEM and Tier I companies.

Backed by a full service supply capability and dual-shore manufacturing model, Bharat Forge provides end-to-end solutions from product conceptualization to designing and finally manufacturing, testing and validation.

SIGNIFICANT DEVELOPMENTS:

PRESS RELEASE:

Execution key, say panellists

Mint
14 November 2011

Mumbai, Nov. 14 -- Industry representatives have high hopes from the government's new manufacturing policy (NMP), but say effective execution is crucial if it is to enhance the role of manufacturing in India's economic growth.

"It's a very good beginning, but we must remember it's only a beginning," B. Muthuraman, vice-chairman of Tata Steel Limited, said on Sunday at the India Economic Summit of the World Economic Forum in Mumbai.

Unveiled on 26 October after months of wrangling between ministries, industries and labour organizations, NMP seeks to raise the share of manufacturing to 25% from 16% of the gross domestic product (GDP) within a decade and create 100 million jobs.

India's industrial output grew 1.9% in September over a year earlier, its slowest pace in two years, on the back of poor performance by the manufacturing sector.

Baba N. Kalyani, chairman and managing director of Bharat Forge Limited, said states need to understand the importance of manufacturing in bolstering economic growth.

"The danger of this policy (NMP) is that it falls in the hands of the state administration and they go by the book, which means the large industrial policy outside the purview of the NMP will get orphaned," he said.

Muthuraman too said state governments need to be convinced that manufacturing is fundamental to growth. No country has gone through a solid phase of economic growth without manufacturing, he said.

The Tata Steel executive suggested that land owners be involved in policy consultations as problems in land acquisition often hobble manufacturing plans, even though a mere 3% of the country's total land area was being used by manufacturing units.

India's manufacturing growth has been capital-intensive rather than labour-intensive, said Rajat M. Nag, managing director general of the Asian Development Bank, Manila. "We need not only manufacturing led growth but a labour-intensive manufacturing growth." Nag said enterprises have to grow bigger to enjoy scale, investment and technology. Good governance, he said, will play a crucial role in implementing NMP effectively.

Arun Maira, member of the Planning Commission, said NMP aims to create an enabling environment for manufacturing by addressing deficiencies in infrastructure. "Policy is not made, it accumulates as a result of many decisions a country takes as it moves forward progressively," he added.

Panellists also discussed labour law reforms as crucial to boost manufacturing.

Muthuraman said Tata Steel has never faced labour unrest at its plants in its 100-year history despite substantially trimming the workforce.

"You have to treat people like an asset that appreciates with time and take responsibility," he said.

Kalyani said addressing the skill gap and containing attrition in the sector is a far bigger challenge. Published by HT Syndication with permission from MINT.

Anticipatory bail of accused in 30-yr-old murder case confirmed

Times of India

13 November 2011

PUNE: Industrialist Baba Kalyani has said that research-driven technology programmes in the universities with close mentoring and monitoring by the industry, are critical to saving the country from becoming a slave nation in the field of manufacturing.

"The universities need to ensure that they build a very strong faculty capability for the success of such programmes," said Kalyani, chairman and managing director, Bharat Forge Limited, while speaking at the launch of the University of PUNE's (UoP) four-year integrated M.Tech-Ph.D programme on Friday.

The programme marks the advent of engineering studies on the UoP campus for the first time since the varsity's inception in 1948.

Kalyani, who also heads the governing board of one of the state's premier autonomous technical institutions at Nanded, said, "My experience tells me if you don't have a committed core group of faculty then such programmes tend to fail."

"The university needs to build a strong core faculty while the industry too is needed to have a focussed approach in terms of closely monitoring the programme and mentoring students," he said.

Kalyani said, "More than 60 years after independence and the presence of large companies in the country today, the fact remains that we still have a long way to go in the field of manufacturing. We are slowly becoming a slave nation in manufacturing and to change this, the industry-academia's joint technology programme at the UoP and many such initiatives will be necessary to see that India emerges a global power in the true sense."

"We can't build a nation without creating a model of education that the country needs," he said. Applied research programmes are essential not only to solve the problems faced by the industry but also the problems faced by society. "For instance, traffic management in Pune is a technology issue today," he pointed out.He said, "The Indian economy is now worth $2 trillion as against the US's $15.5 trillion or China's$ 6 trillion economies. By our present growth rate, India's economy is poised to be worth $ 7 trillion in the next 10 years, which means half the size of the US economy. The question is, do we have the technological prowess to match that of the US?"

Director of IIT-Delhi Raghunath Shevgaonkar, who initiated by technology programme nearly a year ago during his tenure as UoP VC, said that the course has a three-fold focus of creating high level technological manpower; application oriented research on campus; and bringing industry-academia together."It is important that the academia keeps pace with the changes in the technology world and maintains a sense of time, which is so dear to the industry," he added.

Officiating VC of UoP Sanjay Chahande presided over the function while Praj Industries chief Pramod Chaudhari; dean of UoP technology faculty A S Padalkar, head of technology department Aditya Abhyankar, director of UoP's board of college and university W N Gade, registrar M L Jadhav and representatives of the partner industries were present.

Integrated M.Tech-PhD course begins today

Times of India

12 November 2011

PUNE: The University of Pune's (UoP) much talked-about integrated M.Tech-Ph.D course, a brainchild of former vice-chancellor Raghunath Shevgaonkar, will be formally launched by industrialist Baba Kalyani on Friday.

The four-year integrated programme for post-graduate science and engineering graduates as well as working professionals from the industry, has been positioned as the country's first-of-its-kind industry-academia initiative that aims at enhancing quality of the university-level research and developing technologies, which can be put to application for local as well as global requirements.

The university has carved out an independent faculty of technology from the earlier faculty of engineering, to run the M.Tech-Ph.D course. Four boards of studies in the areas of mechanical and materials technology; computers and infotech; chemical and biotechnology; and electronics and electrical technology have been set up for running the research projects.

A S Padalkar, dean of the new technology faculty, told TOI, "In all 36 students including 18 working professionals, have been selected in the maiden M.Tech-Ph.D batch. Excluding working professionals, each of the remaining student will receive a monthly stipend of Rs 24,000, which is even more than the fellowships given by the CSIR/UGC and IITs, and these will be sponsored by the seven industry partners."

He said, "Prominent industries including Bharat Forge, Zensar Technologies, Persistent System, Forbes Marshall, Thermax, Praj Industries and KPIT Cummins have supported the programme."

Referring to the issue of ownership of patent arising out of the joint industry-academia research programme, Padalkar maintained that a needless row was sought to be raised on this front by a section of the media whereas there was no dispute between the UoP and the industry partners. "We are going by the standard practices and will follow the IIT model on the patent aspect," he said.

He said, "The first year of the programme will essentially be the course work by the university and the remaining three years will see the students working on live applied research in the industry. Most students, who are now part of the maiden M.Tech-Ph.D batch, constitute a healty mix of science and engineering background."

Padalkar said, "The UoP has plans to constitute a fifth board of study in the area of civil and environment technology, mostly likely from the next academic year."

The UoP has created a 13,000 sq ft space on the campus for the new technology department, which has four classrooms, a library and a computer room with internet and allied facilities for research students to access online journals etc., he said.

Shevgaonkar, who is now director of IIT, Delhi, will be special guest at the launch ceremony scheduled for 4.15 pm at the varsity's PUMBA auditorium. Officiating vice-chancellor Sanjay Chahande will president over the function.

"Icons Of Pune" launched by the Finance Minister Mr Pranab Mukherjee with top industrialists in attendance

India PRwire

12 November 2011

India, Nov. 12 -- Union Finance Minister Mr Pranab Mukherjee launched coffee table book "Icons Of Pune," on November 7, in front of the leading industrialists of Pune. Speaking on the occasion, Mukherjee described the city as a vibrant "economic hub" and hailed contribution of the city-based industrialists to the growth of the country. The Finance Minister got a rousing response from the leading industrialists of Pune, and a huge media gathering. The city was all decked up for perhaps the biggest show ever seen in Pune; which had Maharashtra Chief Minister Mr Prithviraj Chavan, Member Of Parliament (Rajya Sabha) and Chairman, Lokmat Group Of Newspapers, Mr Vijay Darda, Maharashtra State School Education Minister Mr Rajendra Darda, Bank Of Maharashtra Chief Managing Director, A S Bhattacharya, gracing the function as well. Finance Minister Pranab Mukherjee presented the first copy of "Icons Of Pune" to Author and Project-Incharge, Icons Of Pune, Gaurav Thakur, after launching the book. Finance Minister Pranab Mukherjee's speech was "well received" by the huge industrial contingent of Pune, which was in attendance, for the launch function. Most of these industries from Pune are on national industrial landscape.

The book 'Icons Of Pune,'published in English and Marathi by Lokmat Group Of Newspapers, is based on the industrial scene in Pune; and profiles the leading industrialists in Pune and their company backgrounds profile. The book, for the first time, gives a futuristic outlook of the industrial landscape in Pune and the critical areas of concern in various sectors. "Icons Of Pune" enunciates the role of the union and state government in industrial policies pertaining to corporates in Pune; and highlights issues which the government should address. The 235-Page all colour book, has been authored by Gaurav Thakur, currently working as Head - Corporate Relations and Head - Media Programs, International School Of Business and Media (ISBandM) - School Of Communication (Gurgaon, Pune, Kolkata, Bangalore). Gaurav is one of the youngest Editors in India, having been an Editor with The Times Of India (Pune Times) at 25 years. Gaurav completed this project in his earlier role as the Editor-Product Development at the Lokmat Group Of Newspapers. was earlier the Director-Communication and Promotions for the Commonwealth Games Delhi 2010, where he spearheaded the very popular 'Shera" (Mascot of the Commonwealth Games Delhi 2010) campaign.

Speaking at the launch function, Union Finance Minister Pranab Mukherjee stated, "Pune is the country's economic hub with an expanding automobile and IT sectors." On "Icons Of Pune," Mukhejee stated that he was "happy to launch 'Icons Of Pune,'and has come to Pune for this function. I release 'Icons Of Pune' in front of 23 featured Icons in the book; who have have come here to attend the function." Besides these 23 leading industrialists, a number of other top industrialists, bureaucrats, and honchos attended the launch function. Finance Minister had a special photo session with the Icons featured in the book. Later he interacted with the industrialists. The industrialists and "Icons" who attended the function included Amit Kalyani, Executive Director, Bharat Forge, Prakash Chhabria, Managing Director, Finolex, Anuradha Desai, Chairperson, Venkateshwara Hatcheries, and Balaji Rao, Director, Venkateshwara Hatcheries. The Venky's group are the owners of the much publicized English Premier League (EPL) team Blackburn Rovers as well, Dr Vidya Yeravdekar, Joint Director, Symbiosis, Yohan Poonawalla, Director, Poonawalla group, Vishwajeet Kadam, Secretary, Bharati Vidyapeeth and Director, Liverpool Football Academy, Amit Bhosale, Executive Director, Avinash Bhosale group, Aniruddha Deshpande, Managing Director, City Corporation Limited. A number of leading lights from various sectors like Dr Cyrus Poonawalla, Chairman, Poonawalla group, Zavaray Poonawalla, honcho of the Poonawalla Stud Farm, Dr S B Mujumdar, President, Symbiosis, attended the function. Dr Pramod Kumar, President, ISBandM, attended the function as well. The industrialists were "delighted" to attend the launch function of "Icons Of Pune," at the hands of the Finance Minister Pranab Mukherjee.

Speaking at the launch function, Maharashtra Chief Minister Prithviraj Chavan stated, "The book 'Icons Of Pune' is 'inspirational' and a similar profile of icons from other walks of life should be done.' In his speech, Mahrashtra CM threw light on the numero uno status of Maharashtra in the industrial sector. "Maharashtra government will continue with policies which support the corporate sector," he added. Vijay Darda, Chairman, Lokmat Group Of Newspapers, in his speech praised the "noteworthy contribution of the leading industrialists of Pune in the making of the beautiful city of Pune." He added, "The success story of these leading industrialists depicted in 'Icons Of Pune' should serve as inspiration to young entrepreneurs." Maharashtra School Education Minister Rajdendra Darda, stated, "The contribution of industrialists in nation's progress is imminent. 'Icons of Pune' will serve as an inspiration to young entrepreneurs." Rishi Darda, Joint Managing Director, Lokmat, gave the Vote Of Thanks at the launch function. The book "Icons Of Pune" was Vijay Darda's brainchild, who asked Gaurav Thakur to complete this project of "Icons Of Pune" as Author and Project In-Charge.

The project "Icons Of Pune" has been hugely successful. Commenting on the project, Gaurav Thakur said, "I have been fortunate to have completed this project successfully.

My special thanks to the Lokmat Group and the leading industrialists of Pune, who co-operated with me extensively in making this project successful. Finance Minister Pranab Mukherjee coming to honour the leading industrialists and launch 'Icons Of Pune' has delighted the industrialists of Pune; who take this as recognition to their work.

Finance Minister Pranab Mukherjee met me personally before the launch and complimented me for the successful completion of this grand project 'Icons Of Pune.'

Special thank to Hon'ble Finance Minister Pranab Mukherjee's office and Chairman, Lokmat Newspapers, Vijay Darda's office, which took special efforts, in making "Icons Of Pune" hugely successful." Gaurav added, "At ISBandM, we will look at staring a special module on 'Icons Of Pune' project. A number of educational institutes have been asking me for it." Published by HT Syndication with permission from India PRwire.

Bharat Forge Company Limited, Larsen, Mahindra Bid For $10 Billion Defense Contract-DJ

Jul 06, 2011

Dow Jones reported that Tata Motors Limited, Larsen and Toubro Limited and Mahindra and Mahindra Limited are among the companies that have put in bids for a $10 billion defense ministry contract to supply combat vehicles to India's military, the Financial ed on Thursday. The ministry will short-list two companies by the end of the month, based on its technical and commercial criteria. Larsen has partnered with Ashok Leyland Limited for the bid, while firms such as Bharat Forge Company Limited and the state-owned Ordnance Factory Board also bidding for the order.

Performance for Second Quarter of the Financial Year 2011-12

Standalone revenues increased 28% to Rs 9307.000 millions

Impressive growth at PAT level of 56.2% to Rs 1064.000 millions

Key Highlights

• Impressive performance from standalone operations with Total Income and PAT increasing by 28.0% and 56.2% respectively on a YoY basis.

• Exports continue to impress with growth of 57.6% to Rs 4316.000 millions in Q2 FY12.

• Strong Performance of Non auto business continues in Q2 FY12.

Pune, 09th November 2011: Bharat Forge Limited., today announced its Q2 results with standalone revenue reaching Rs. 9307.000 millions, a growth of 28% over the same quarter last year.

Standalone EBITDA registered a growth of 29.2% to Rs 2361.000 millions while PBT increased by 48.7% to Rs 1512.000 millions. PAT for the quarter increased to Rs 1064.000 millions as against Rs 681.000 millions in the same quarter previous year, a growth of 56.2%.

Domestic revenues in Q2 FY12 grew by 7.6% over the same period previous year to Rs 4784.000 millions.

Export revenues maintained the impressive growth trajectory with all round growth of 57.6% to Rs 4316.000 millions over the same period previous year. Exports in to North America and Europe grew by 25.3% and 75.5% respectively.

The overseas operations registered stable performance in the quarter with top line growing by 23.4% to Rs 6493.000 million. The EBITDA margins expanded by 170 bps from 4.2% in Q2 FY11 to 5.9% in Q2 FY12 and PBT for the quarter was Rs 40.000 millions in Q2 FY12 as against loss of Rs 17.000 millions in the corresponding quarter previous year.

Non Automotive business continued to impress with revenues increasing 24.1% on a YoY basis fuelled by ramp up of new facilities and new order wins.

Commenting on the results of the company Mr. B N Kalyani, Chairman and Managing Director said “The derisked business model is facilitating the continuation of the company’s growth trajectory during the year with impressive growth of Exports and non auto notwithstanding the slowdown in the Indian automotive sector.

The Non automotive business continues to do well and witness tremendous traction with good order flow and has reached 40% of the standalone business.” he added.

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.52.10
UK Pound	1	Rs.81.30
Euro	1	Rs.70.07

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--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		66

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	Capability to overcome financial difficulties seems comparatively below average.	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
-	NB	New Business	-

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.