MIRA INFORM REPORT

Report Date :

03.02.2012

IDENTIFICATION DETAILS

Name :	RAMKRISHNA FORGINGS LIMITED
Registered Office :	L and T Chambers, 16, Camac Street, 6^th Floor, Kolkata – 700017, West Bengal
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	12.11.1981
Com. Reg. No.:	21-034281
Capital Investment / Paid-up Capital :	Rs.164.285 Millions
CIN No.: [Company Identification No.]	L74210WB1981PLC034281
TAN No.: [Tax Deduction & Collection Account No.]	CALR02277C
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchange.
Line of Business :	Manufacturer of Forged and Rolled Components for the Railways, Automobile, Defence, Mining and Bearing Industry.
No. of Employees :	925 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (52)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 6100000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having fine track. Financial of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good for normal 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/ Head/ Corporate Office :	L and T Chambers, 16, Camac Street, 6^th Floor, Kolkata – 700017, West Bengal, India
Tel. No.:	91-33-39840999
Fax No.:	91-33-39840998
E-Mail :	info@ramkrishnaforgings.com neha.gupta@ramkrishnaforgings.com
Website :	www.ramkrishnaforgings.com
Factory 1 :	Plot No. M-6, Phase VI, Gamaria Jamshedpur, Jharkhand, India
Tel. No.:	91-657-3204242/3204249
Fax No.:	91-657-2202814
E-Mail :	forgings-division@ramkrishnaforgings.com
Factory 2 :	7/40, Duffer Street, Liluah, Howrah - 711 204, West Bengal, India
Tel. No.:	91-33-32550894
Fax No.:	91-33-26545729
Factory 3 and 4 :	Plot No. M-15,16 and NS-26, Phase VII, Adityapur Industrial Area, Jamshedpur-832109, Jharkhand, India
Tel. No.:	91-657-3984999/ 3984900
Fax No.:	91-0657-3984998
E-Mail :	cnc-division@ramkrishnaforgings.com

DIRECTORS

As on 31.03.2011

Name :	Mr. Mahabir Prasad Jalan
Designation :	Chairman
Name :	Mr. Naresh Jalan
Designation :	Managing Director
Name :	Mr. Pawan Kumar Kedia
Designation :	Director (Finance)
Name :	Mr. Ram Prasad Saraf
Designation :	Non-Executive Director
Name :	Mr. Padam Kumar Khaitan
Designation :	Non-Executive Director
Name :	Mr. Satish Kumar Mehta
Designation :	Non-Executive Director
Name :	Mr. Subhasis Majumdar
Designation :	Nominee Director
Name :	Mr. Surendra Mohan Lakhotia
Designation :	Non-Executive Director
Name :	Mr. Laxminarayan Jhavar
Designation :	Non-Executive Director

KEY EXECUTIVES

Name :	Mr. Rajesh Mundhra
Designation :	Company Secretary
Name :	Mr. Alok Kumar Sharda
Designation :	Chief Financial Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Category of Shareholder	Total No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	1584640	8.73
Bodies Corporate	7971037	43.92
Sub Total	9555677	52.65
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	9555677	52.65
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	3619094	19.94
Foreign Institutional Investors	252828	1.39
Sub Total	3871922	21.33
(2) Non-Institutions
Bodies Corporate	1395226	7.69
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	1026199	5.65
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	2280157	12.56
Any Others (Specify)	19359	0.11
Non Resident Indians	1135	011
Clearing Members	224	-
Sub Total	4720941	26.01
Total Public shareholding (B)	859283	47.35
Total (A)+(B)	18148540	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	-	-
Sub Total	-	-
Total (A)+(B)+(C)	18148540	-

BUSINESS DETAILS

Line of Business :

Manufacturer of Forged and Rolled Components for the Railways, Automobile, Defence, Mining and Bearing Industry.

Products :

PRODUCT DESCRIPTION	ITEM CODE NO.
Carbon Steel/Non-Alloy Steel Forgings/Alloy Steel Forgings (Rough)	7326.19.10
Alloy Steel Forgings/Non-Alloy Steel Forgings (Machined)	8708-99-00

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Steel Forgings	MT	37700*	31234.46
Ring Rolling Facilities	MT	24000	16438.00

Notes:

* The Company’s Installed capacity has been increased by 3600 ton in the month of January, 2011 with the installation of Maxi-Press at its Plant I at Jamshedpur

GENERAL INFORMATION

Customers :

· Tata

· Eicher

· Timken

· Federal Mogul

· Arvin Meritor

· Farm Equipment

· Defence

· General Engineering

No. of Employees :

925 (Approximately)

Bankers :

· Export Import Bank of India

· DBS Bank

· HSBC Bank

· ICICI Bank

· IDBI Bank

· Indian Overseas Bank

· Standard Chartered Bank

· State Bank of India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Working Capital Loan
Rupee Loan	662.043	529.534
Foreign Currency Loan	152.915	288.562
Term Loans
Rupee Loan	769.504	654.465
Foreign Currency Loan	107.829	96.841
Premises Loan (Secured against the Specific Premises)	88.889	100.000
Vehicle Loan (Secured against Hypothecation of car) (Installment repayable within one year Rs.290.198 Millions) (Previous Year Rs.203.096 Millions)	0.000	0.322
Total	1781.180	1669.724
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
VAT under Defferment*	27.534	34.418
From Bank (Short Term)	151.109	149.242
From Bodies Corporate	30.000	30.000
(Installment repayable within one year Rs.6.884 Millions) (Previous year Rs.6.884 Millions)
Total	208.643	213.660

Banking Relations :	--
Statutory Auditors :
Name :	Singhi and Company Chartered Accountants
Address :	1B, Old Post Office Street, Kolkata – 700001, West Bengal, India
Internal Auditors :
Name :	Ernst and Young Chartered Accountants
Address :	22, Camac Street, Kolkata – 700016, West Bengal, India
Enterprises over which Key Management Personnel and their relatives are able to exercise significant influence :	· Riddhi Portfolio (Private) Limited · Eastern Credit Capital Limited (100% subsidiary of Riddhi Portfolio (Private) Limited)
Trust of the Company :	Ramkrishna Forgings Employee Welfare Trust

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
21000000	Equity Shares	Rs.10/- each	Rs.210.000 Millions

Issued :

No. of Shares	Type	Value	Amount
20328540	Equity Shares	Rs.10/- each	Rs.203.285 Millions

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
16428540	Equity Shares	Rs.10/- each	Rs.164.285 Millions

Notes:

(Out of above 1306750 Equity Shares of Rs.10/- each fully paid have been issued as Bonus Shares by Capitalisation of Revenue Reserve)

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		164.285	164.285	153.285
2] Share Warrant Money		181.406	104.813	55.492
3] Employee Stock Option Outstanding		15.230	5.701	0.000
4] Reserves & Surplus		1173.790	991.384	738.924
5] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1534.711	1266.183	947.701
LOAN FUNDS
1] Secured Loans		1781.180	1669.724	1845.528
2] Unsecured Loans		208.643	213.660	89.433
TOTAL BORROWING		1989.823	1883.384	1934.961
DEFERRED TAX LIABILITIES		244.328	224.928	171.567
TOTAL		3768.862	3374.495	3054.229
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2037.663	1818.725	1724.351
Capital work-in-progress		225.137	259.994	216.473
INVESTMENT		14.191	0.050	25.499
DEFERREX TAX ASSETS		0.000	0.000	0000
Advances Recoverable from ESOP Trust		93.925	79.200	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1149.448	995.479	830.251
	Sundry Debtors	575.871	452.581	421.632
	Cash & Bank Balances	22.633	6.395	98.180
	Other Current Assets	0.000	0.000	0.000
	Loans, Advances & Deposits	206.921	188.988	171.683
Total Current Assets		1954.873	1643.443	1521.746
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	513.754	404.995	421.346
	Other Current Liabilities	0.220	1.068	7.871
	Provisions	42.953	20.854	4.623
Total Current Liabilities		556.927	426.917	433.840
Net Current Assets		1397.946	1216.526	1087.906
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		3768.862	3374.495	3054.229

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	4096.861	2849.576	2290.002
		Other Income	10.858	0.009	10.652
		TOTAL (A)	4107.719	2849.585	2300.654
Less	EXPENSES
		Increase/ Decrease in Stock	(99.827)	(45.743)	(208.269)
		Raw Materials Consumed	2391.126	1649.209	1451.837
		Manufacturing and Other Expenses	892.912	636.456	565.725
		Payment to and provisions for Employees	219.430	163.925	130.464
		TOTAL (B)	3403.641	2403.847	1939.757
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		704.078	445.738	360.897
Less	FINANCIAL EXPENSES (D)		161.146	150.871	177.539
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		542.932	294.867	183.358
Less/ Add	DEPRECIATION/ AMORTISATION (F)		209.789	131.389	109.565
	PROFIT BEFORE TAX (E-F) (G)		333.143	163.478	73.793
Less	TAX (H)		112.550	54.539	28.366
	PROFIT AFTER TAX (G-H) (I)		220.593	108.939	45.427
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		503.245	418.527	373.100
Less	APPROPRIATIONS
		Transfer to General Reserve	17.000	5.000	0.000
		Proposed Dividend	32.857	16.429	0.000
		Tax on Dividend	5.330	2.792	0.000
	BALANCE CARRIED TO THE B/S		668.651	503.245	418.527
	EARNINGS IN FOREIGN CURRENCY
		Export of goods on FOB Basis	487.072	160.566	193.443
		Die design and preparation charged (recovered)	1.238	0.448	13.286
	TOTAL EARNINGS		488.310	161.014	206.729
	IMPORTS
		Capital Equipments	70.970	7.787	113.463
		Components & Spares Parts	24.405	1.977	0.856
	TOTAL IMPORTS		95.375	9.764	114.319
	Earnings Per Share (Rs.)
	Basic		13.43	7.05	2.96
	Diluted		13.06	7.01	2.53

QUARTERLY RESULTS

PARTICULARS	30.06.2011	30.09.2011
	1^st Quarter	2^nd Quarter
	UnAudited	UnAudited
Net Sales	1116.110	1181.070
Total Expenditure	925.260	991.180
PBIDT (Excl OI)	190.850	189.890
Other Income	0.020	0.070
Operating Profit	190.870	189.960
Interest	47.280	41.920
Exceptional Items	0.000	0.000
PBDT	143.590	148.040
Depreciation	65.870	65.340
Profit Before Tax	77.720	82.700
Tax	26.590	27.010
Provisions and contingencies	0.000	0.000
Profit After Tax	51.130	55.690
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	51.130	55.690

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	5.37	3.82	1.97
Net Profit Margin (PBT/Sales)	(%)	8.13	5.74	3.22
Return on Total Assets (PBT/Total Assets}	(%)	8.34	4.72	2.27
Return on Investment (ROI) (PBT/Networth)		0.22	0.13	0.08
Debt Equity Ratio (Total Liability/Networth)		1.66	1.82	2.50
Current Ratio (Current Asset/Current Liability)		3.51	3.85	3.51

LOCAL AGENCY FURTHER INFORMATION

FINANCIAL AND PERFORMANCE REVIEW

· 43.77% increase in Net Turnover from Rs.2849.576 Millions to Rs.4096.861 Millions

· 57.98% increase in EBIDTA from Rs.445.738 Millions to Rs.704.078 Millions

· 62.72% increase in Cash Profit from Rs.293.688 Millions to Rs.477.945 Millions

· 102.57% increase in Profit after Tax from Rs.108.939 Millions to Rs.220.593 Millions

The year 2010-2011 was a good year for the Industry as there was a huge demand for the vehicles and also there was an increase in production trends during the year as compared to the last year.

The cumulative production of commercial vehicles increased from 567556 in 2009-10 to752735 in 2010-11 registering a growth of 27.45 percent over same period last year.

In 2010-2011, production of passenger vehicles segment, commercial vehicles segment, three wheelers segment and two wheelers segment grew by 26.72 percent, 32.63 percent, 29.13 percent and 27.24 percent respectively.

The overall domestic sales of the commercial vehicles segment registered increase from 5,31,395 vehicles to 6,76,408 vehicles registering a growth of 27.29 percent during 2010-2011 as compared to the same period last year. The Medium and Heavy Commercial Vehicles (M and HCVs) registered growth of 31.78 percent and the Light Commercial Vehicles grew at 22.88 percent.

OPERATIONAL HIGHLIGHTS

Forgings and Machining facility

The Company derives the major share of its revenues from the commercial vehicle segment. The Company produced 31234.46 tons (including Job Work) during the year as compared to 26487.23 tons last year, registering an increase of about 17.92%.During the year, the installed capacity of the forgings section increased by 3,600 tons from 34,100 tons to 37,700 tons. The Company has been able to utilise 89.24% of the production capacity for the year as compared to 77.70%last year.

The Company has increased its billet cutting facilities by importing fully automatic horizontal band saw machine from Amada Machine Tools, Japan. The Company further intends to shore up its raw material cutting facilities to facilitate smooth flow of production and reduce its cost of operations.

The Company had augmented its Machining Facilities by procuring CNC Gear Hobbing Machines from Mitsubishi Heavy Industries Limited, Japan and Premier Limited, High performance CNC Turning Centers and CNC Vertical Machining Centers from Doosan, Koreawhich will help the Company to provide more value added products to OEM and to broad base the spectrum of products supplied to OEMS's. It will also balance the capacity utilization of the Heat Treatment facilities.

The Company has the state-of-art CNC Machining and Gear Cutting facilities in which it has achieved accuracies of Class 6 as per DIN 3962 in the soft stage and Class 8 as per DIN 3962 in the hard stage in gear manufacturing. During the year the Company has added 50new products in the Turning section, 22 new products in the Gear section and 12 new products in the HMC/VMC section.

Ring Rolling Line

Ring rolling is a cost-effective and efficient production process for production of ring-shaped components like crown wheels, bearing rings etc. The equipment is fully capable of meeting the requirements of the automobile industry, especially that of commercial vehicles (primarily medium and heavy vehicles).

The Company has produced 16438 tons during the year as compared to 9699.87 tons last year thus registering a growth of about 69.50%. The Company has achieved a capacity utilisation of 68.50% during the year as compared to around 40.40% last year on account of improved export performance of the Company. The improvement in the performance of the ring rolling facilities will help the Company to report better topline and improved margins.

MANAGEMENT DISCUSSIONS AND ANALYSIS

Industry Structure and Developments

Forging has unique value among manufacturing processes. The industry is a key link between critical manufacturing segments-metal suppliers and end user industries. Forgings are intermediate products widely used by original equipment manufacturers (OEMs).

It is a cost-effective way to produce net-shape or near-net-shape components. In some materials, it is the only way. Virtually all metals can be forged, making an extensive range of physical and mechanical properties available in products with the highest structural integrity.

Briefly, the composition of the Indian forging industry can be categorized into four sectors - large, medium, small and tiny. The organized sector accounts for about 65-70percent of the total forging production in the country, while unorganized players (who are mainly small and tiny units) cater mainly to job work and the replacement market or tier 3or tier 4 component manufacturers.

The Indian automobile market has been the subject of significant attention from the auto global players, with many of them targeting India as a manufacturing hub for small cars. India holds significant potential because of its low-cost manufacturing advantage and the opportunity for sales-volume growth offered by its domestic market over the next decade.

The economy (real GDP) has expanded at an average annual rate of 8.4 percent over the past eight years, while per-capita GDP (in US$) has risen at an average annual rate of about 15.1 percent over the same period. The emerging significance of India on the global automotive map is also mirrored in the plans for India announced by the global automotive players such as Toyota, Volkswagen, Renault, Honda, and many others.

The PV penetration rate in India is still less than 20 per 1,000 people is extremely low when compared with the global average of about 300 per 1,000 people (World Bank data).

According to the National Council for Applied Economic Research (NCAER), income levels in India have improved significantly, with the number of middle-class households increasing from 5.7 percent in 2001-02 to 12.8 percent in 2009-10. Over the same period, the proportion of aspirers (with annual incomes of Rs.0.91 -0.200 Million) of total households also increased from 21.9 percent to 33.9 percent. It is expected that these indicators of economic progress to improve further, as the high GDP-growth momentum remains intact, and urbanisation levels look set to rise from 30 percent currently to 35 percent by 2020(Source: United Nations).

In India, demand for CVs is driven generally by GDP growth, particularly industrial-production (IP) growth. Over the FY 01-10 period, India's GDP and IP growth rose at CAGRs of 7.3 percent and 7 percent, respectively, driving a domestic CV sales-volume CAGR of 14.8 percent over the same period. There is a fairly positive correlation of 0.66 between domestic CV sales-volume growth and the IP growth for theFY01- FY10 period. MHCV sales rose at a CAGR of11.1 percent over the FY01-10 period.

In the 2011 Union Budget, the government was very vocal about increasing its focus on the manufacturing sector, which accounts currently for around 16 percent of GDP. The Finance Minister announced that the government would introduce a dedicated manufacturing policy very soon to ensure a roadmap for the accelerated growth of the manufacturing sector. With this, the government targets to increase the manufacturing sector's share of GDP to 25 percent over the next decade.

Between FY01 and FY10, sales for the Light-CV (LCV) segment rose at an average annual rate of around 20 percent, playing a vital role in CV-sales growth. Over the past few years, the number of SCV applications has expanded significantly, not only within cities, but also in smaller towns and rural markets.

The Indian Auto Sector is poised to record a significant pick-up in sales volume over the next 3-5 years, due to rising affordability, increased urbanisation, and improving auto-financing conditions.

Performance Scenario

The year 2010-2011 was a good year for the Industry as there was a huge demand for the vehicles and also there was an increase in production trends during the year as compared to the last year.

The cumulative production for April, 2010-March 2011 shows production growth of 27.45percent over same period last year.

In comparison to 1,40,57,064vehicles produced last year the production was of 1,79,16,035 vehicles for 2010-11 of which share of two wheelers, passenger vehicles, three wheelers and commercial vehicles were 75 percent, 17 percent, 4 percent and 4percent respectively.

In 2010-2011, production of passenger vehicles segment, commercial vehicles segment, three wheelers segment and two wheelers segment grew by 26.72 percent, 32.63 percent, 29.13 percent and 27.24 percent respectively.

Domestic Sales

The overall domestic sales of the commercial vehicles segment registered an increase from 531,395 vehicles to 676,408 vehicles, registering a growth of 27.29 percent during2010-2011 as compared to the same period last year. The Medium and Heavy Commercial Vehicles (M and HCVs) registered growth of31.78 percent, Light Commercial Vehicles grewat22.88 percent.

Three Wheelers sales recorded a growth of 19.44 percent in 2010-2011 and Two Wheelers sales registered a growth of 25.82 percent during 2010-2011. Mopeds, Scooters and Motorcycles grew by 30.93 percent, 27.40 percent and 25.88 percent respectively.

Exports

During April-March 2011, overall automobile exports registered a growth rate of 29.64 percent.

During this period Passenger Vehicle, Commercial Vehicles, Three Wheelers and Two Wheelers segment grew by 1.64 percent, 69.51 percent, 55.86 percent and 35.04 percent respectively.

OUTLOOK

Considering the confidence of foreign automotive majors, auto component manufacturers and original equipment manufacturers, who are outsourcing their operations to India, it is quite likely that the forging industry will be foremost among the segments that will steer manufacturing growth here.

The forging sectors fortunes are closely linked to that of the automotive industry, which at the moment, is doing extremely well in the country. The other significant driver for this sector is outsourcing and it is an indication that the industry's potential is being recognized world over. Global automotive giants are looking at India as a competent supply base and are shopping for their components here and Indian companies have even been acquiring companies abroad.

The low penetration levels and huge investments in the upcoming infrastructure projects can lead to substantial growth in CVs even next year, if finance continues to be available and at affordable interest rates.

While the current performance of the industry is indeed flattering, what is more gratifying is the fact that players in the sector firmly believe it will scale greater heights in the coming years. The indications are all there - it's just a matter of time before the industry achieves its exceptional potential.

SWOT Analysis Strengths

1. The Company has an integrated forging facility wherein the Company can provide end to end solution.

2. It is accredited with ISO/TS-16949 from TUV Nord and has an experienced and technically qualified management team.

3. Continuous product development, customer retention and repeat orders.

4. Efficient manpower management.

5. Investing in new technologies to produce components efficiently and remain more cost competitive.

6. Continous effort for development of new customers.

Threats

1. Volatility in Raw material prices.

2. Volatility in foreign exchange rates.

3. Availability of finance at affordable rates.

4. Increase in fuel prices and inflation.

5. Increase in global competition.

Awards

The Company has during the year 2010-11 received the under mentioned awards from H. V. Axles Limited and H. V. Transmission Limited (Subsidiaries of Tata Motors Limited):

· For New Product Development.

· For Delivery.

· For Cost Reduction.

· For Quality.

· For Business Association.

· For Overall Best Performance.

The Company has achieved a Star export house certificate. It has also received export excellence certificate from EEPC, Kolkata.

PERSONNEL MANAGEMENT

The Company considers human resources as its most important asset. It provides greater emphasis on training and development of employees at all levels. The Company has instituted incentive schemes, awards and suggestion scheme in order to improve the productivity and morale of its employees

The Company apart from providing on the job training also imparts behavioral training, awareness training and safety training to its employees.

The Company has devised an effective appraisal system for proper evaluation of the performance of its employees. It also has implemented performance linked incentives chemes for the proper motivation of the employees.

The Company had implemented an ESOP scheme for its permanent employees above a certain category to allow its employees to partner the success of the Company. It also intends to keep this as a regular exercise by rolling out new ESOP schemes.

The Company has around 925 employees (excluding contract workmen) which includes a rich pool of graduate engineers, diploma holders and technicians. It is their invaluable contribution that has primarily resulted in the Company's position of strength in the industry.

In order to protect health of employees and to ensure healthy working environment, the Company has taken Group Health (Floater) Insurance policy and Group Personal Accident Insurance policy from ICICI Lombard General Insurance Company Limited.

FINANCIAL OVERVIEW

Highlights

· Net Sales increased 43.77 percent from Rs. 2849.500 Millions in 2009-10to Rs.403.968 Millions in 2010-11.

· Export Sales increased 211.50 percent from Rs.160.300 Millions in 2009-10 to Rs.499.400 Millions in 2010-11.

· EBIDTA increased 57.98 percent from Rs.445.700 Millions in 2009-10to Rs.704.100 Millions in 2010-11.

· PBT increased 103.86 percent from Rs.163.400 Millions in 2009-10to Rs.333.100 Millions in 2010-11.

· PAT increased 102.57 percent from Rs.108.900 Millions in 2009-10to Rs.220.600 Millions in 2010-11.

· Cash Profit increased by 62.72 percent from Rs.293.700 Millions in 2009-10 to Rs.477.900 Millions in 2010-11.

· Basic EPS increased from Rs.7.05 in 2009-10 to Rs.13.43 in 2010-11.

Unaudited Financial Results for the Quarter and Half Year ended 30th September, 2011

(Rs. in Millions)

Particulars	Quarter ended	Half Year ended
	30.09.2011	30.09.2011
	Unaudited	Unaudited
Gross Sales/Income from Operations
a)Domestic	1096.633	2241.580
b)Export	181.566	256.394
	1278.199	2497.974
Less: Excise Duty	97.130	200.798
Net Sales/ Income from Operations	1181.069	2297.176
Expenditure
a) (Increase)/ Decrease in stock in Trade	(53.958)	(136.499)
b) Consumption of Raw Material	684.589	1372.263
c) Employees cost	74.984	132.606
d) Depreciation	65.342	131.215
e) Fuel & Electric Charges	108.563	219.579
f) Other expenditure	177.006	328.491
g) Total	1056.526	2047.655
Profit from Operations before other Income and Interest	124.543	249.521
Other Income	0.072	0.091
Profit before Interest	124.615	249.612
Interest	41.917	89.199
Profit(+)/Loss(-) Before Tax	82.698	160.413
Tax expense	27.011	53.601
Net Profit(+)/(Loss)(-) After Tax	55.687	106.812
Paid-Up equity share capital (Face Value of Rs.10/- per share)	181.485	181.485
Reserves excluding Revaluation	--	--
Reserves as per balance sheet of previous accounting year	--	--
Earnings Per Share (EPS)
a) Basic EPS	3.18	6.09
b) Diluted EPS	3.18	6.09
(not annualised)
Public shareholding
- Number of shares	8592863	8592863
- Percentage of shareholding	47.35	47.35
Promoter and Promoter Group Shareholding
a) Pledged / Encumbered
- Number of shares	3200000	3200000
- Percentage of shares (as a % of the total shareholding of promoter and promoter group)	33.49	33.49
- Percentage of shares (as a % of the total share capital of the company)	17.63	17.63
b) Non -encumbered
- Number of shares	6355677	6355677
- Percentage of shares (as a % of the total shareholding of promoter and promoter group)	66.51	66.51
- Percentage of shares (as a % of the total share capital of the company)	35.02	35.02

STATEMENT OF ASSETS AND LIABILITIES

(Rs. in Millions)

Particulars	30.09.2011 (Unaudited)
SHAREHOLDERS’ FUNDS:
(a) Capital	181.485
(b) Share Warrants	0.000
(c) Reserves and Surplus	1504.681
( d ) Employees Stock Option Outstanding	19.365
LOAN FUNDS	1870.089
Deferred Tax liabilities ( Net)	237.147
TOTAL	3812.767
APPLICATION OF FUNDS:
FIXED ASSETS	2307.906
INVESTMENTS	6.452
Advances to ESOP Trust	91.733
CURRENT ASSETS, LOANS AND ADVANCES
(a) Inventories	1265.545
(b) Sundry Debtors	647.085
(c) Cash and Bank balances	5.243
(d) Loans and Advances	205.436
Less: Current Liabilities and Provisions
(a) Liabilities	692.205
(b) Provisions	24.428
NET CURRENT ASSETS	1406.676
TOTAL	3812.767

NOTES:

1. The above results has been subjected to Limited Review by the Statutory Auditors. The same has reviewed by the Audit Committee and then approved by the Board of Directors at its meeting held on 5th November, 2011 Managing Director.

2. The Auditor has commented with regard to the pendency of the representation made by the company before the Central Government for payment of the remuneration in excess of the limits as specified in Schedule XIII for the year 2008-09 and 2009-10. The representation is still pending for consideration of the Central Government. However the same has no impact on the profits for the reportable period.

3. Dispatches of Rs.62.585 Millions under vendor management inventory are still to be recognised as export sales and will be recognised in the subsequent quarters.

4. During the quarter the company has received Rs.62.081 Millions on account of the conversion of 770000 warrants, issued on Preferential basis as per the provisions of Chapter VII of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 into equity shares by Eastern Credit Capital Limited, Promoter group. The company has used Rs.5.281 towards working capital, Rs. 2.500 Millions towards General Corporate Purpose and the Balance Rs. 543 Lakhs is lying in the Bank Account of the Company.

5. During the Quarter the company has forfeited 2180000 warrants which was issued on a Preferential basis as per the provisions of Chapter VII of SEBI (Issue of Capital and Disclosure Requirements) Regulations 2009 and credited Rs.58.588 Millions to Capital Reserve account.

6. The Company operates only in one Segment i.e Forgings.

7. During the quarter the company has received 22 complaints and there are no complaints pending at the end of the quarter.

8. Previous Year /period figures have been regrouped / rearranged whereever necessary to conform this year classification/ adjustment.

Contingent Liability not provided for in respect of:

(Rs. In Millions)

			As on 31.03.2011
(a)	(i)	Claim/Disputed Liabilities not acknowledged as debt:
		Following demand is disputed by the Company and not provided for -
		Electricity charges demand of Jharkhand State Electricity Board (appeal pending before High Court, Jharkhand)	4.065
	(ii)	a) DemandforlncomeTaxfortheA.Y.2006-07 [Appeal pending before the Commissioner of Income Tax (Appeals), Kolkatal Amount paid Rs.1.492 Millions	1.492
		b) DemandforlncomeTaxfortheA.Y.2007-08 [Appeal pending before the Commissioner of Income Tax (Appeals), Kolkata]	0.803
		c) Demand for Income Tax for the A.Y. 2008-09 [Appeal pending before the Commissioner of Income Tax (Appeals), Kolkata]	0.396
		d) Demand for Service Tax for the F.Y. 2004-05, 2005-06, 2006-07 (upto July 2006) [Appeal pending before the Excise and Service Tax Appellate Tribunal, Kolkata]	3.598
(b)		Bill Discounted with Bank	113.632

FIXED ASSETS

· Land and Land Development

· Factory Shed and Building

· Office Building

· Plant and Machinery

· Vehicles

· Furniture and Fixtures

· Computer

· Office Equipments

· Air Condition Machine

BUSINESS DESCRIPTION

Subject is engaged in the manufacturing of screw couplings, draw gear assembly, snubber assembly, hanger, block hanger side frame key and various other forgings items of railway coaches and wagon. The Company is engaged in the manufacturing and supplying of open and closed plain carbon and low alloy steel forgings in the as-forged, heat treated and machined condition for railways, automobile and general engineering purposes. Its products include forgings for railway coaches, wagons and locomotives; forgings for automobiles, mining and general engineering; forgings for valve bodies; transmission items; track links, master links and trade rollers; drop forgings from 1 kilogram to 125 kilograms, and forged and fabricated spares for railway wagons, coaches, diesel and steam locos, such as hanger, screw coupling, side frame key, shackle stone, guide, lower spring seats, draw gear assembly, snuber assy, block hangers, draw hook and drawbar. For the nine months ended 31 December 2010, subject's revenues increased 41% to RS2.86B. Net income totaled Rs.1450.00 Millions up from Rs.70.600 Millions. Revenues reflect an increase in income from domestic sales and an higher income from Export. Net income reflects an increased gross profit margin, higher stock in trade, an increase in other income and an lower interest expenses. The Company is mainly engaged in the business of automobile

BOARD OF DIRECTORS

Mahabir Prasad Jalan (Executive Chairman of the Board)

Mr. Mahabir Prasad Jalan is an Executive Chairman of the Board of subject. He holds a B.E. (Hens.) in Mechanical Engineering from BITS. Pilani and has about 2 decades of experience in forgings. He is an experienced technocrat poessing all the qualities of a businessman and is the driving force behind the success of the Company. After his graduation in Mechanical Engineering in the year 1970 he has served companies including Orient Paper Mills Limited, Spinning Accessories Limited, Jaipur, Shalimar Wires Limited, Calicut Engg Works Limited at different levels. Working at different organizations at different levels helped Mr. Jalan to possess the insight of the forging unit. His career, which started, from the shop floor eventually culminated into his first independent ventures Managing partner of Tribeni Steel Forgings in the year 1974. He holds Directorship in M/s. Basuki Portfolio (P) Limited. He is also not holding any Committee ‘poitions in any, other Company.

Naresh Jalan (Managing Director, Executive Director)

Mr. Naresh Jalan is Managing Director, Executive Director of subject.

Laxminarayan Jhavar (Non-Executive Director and Additional Director)

Mr. Laxminarayan Narayan Jhavar is Non-Executive Director of subject. Mr. Jhavar is a graduate from IMI London. He has done the PG Diploma in Engineering (London) in 1959, from College of Aeronautical and Automobile Engineering, Chelsea (London). He is a member of the Institute of Engineering Technology- London. He is having 40 years of broad, experience with technical and managerial achievements to growth in Productivity and bottom line profitability. He has undergone training abroad for two years. He has been associated with the following Organizations: 1. Hindustan Motors Limited., Calcutta- General Manager 2. HM Limited- In charge of Manufacturing Division (Mechanical) 3. Jayaswal NECO Limited-Automotive and Allied castings division Nagpur, India- Vice President (Corporate Planning) 4. M/s NSSL Limited (Group of Jayaswals Neco Limited, Nagpur) -Technical Advisor He is not holding any shares of the Company. He is not holding Directorship in any other Company. He is not the Chairman/ Member of any committee in any other Company.

Padam Kumar Khaitan (Non-Executive Director)

Mr. Padam Kumar Khaitan is Non-Executive Director of subject. He is an Attorney at Law. He has experience in Legal Matters for 37 years. He is a Partner of Khaitan and Company prestigious and well known legal firm. He started his career with Khaitan and Co. as an Article Clerk and later he worked as Legal Associate and now he is Partner. He is Director of Rungamattee Tea and Industries Limited, Cheviot Agro and Industries Limited, Cheviot Company Limited, Williamson Magor and Company Limited. Woodside Parks Limited R. V. Investment and Dealers Limited. SIL Investments Limited. SCM Investment and Trading Company Limited, Khaitan Consultants Limited. An Ho ci (East) Limited lime Levenge Instruments Private Limited. He. alternate Director of Manjushree Plantations Limited.

Surendra Mohan Lakhotia (Non-Executive Director and Additional Director)

Mr. Surendra Mohan Lakhotia is Non-Executive Independent Director of subject. He was appointed as the Additional Director of the Company in the Board Meeting held on 28th May, 2009. Mr. Lakhotia is a Chartered Accountant (Rankholder) with an experience of 4 decades. He had worked in diversified companies in the corporate sector. In early 80's, he joined as the Vice- President in Indian Rayon Industries Limited. He also worked as Senior Vice - President in Hindalco Industries Limited; Joint President in Hindalco Industries Limited • Executive President in the management services Division of the Aditya Birla Group. He has won several awards for professional excellence in Aditya Birla Group. He represented group in several conferences abroad including at Harvard. He has been invitee faculty and speaker at IIM-Kolkata. He has gained experience in all commercial and financial related matters. He is not holding any shares of the Company. He is not holding Directorship in any other company.

Subhasis Majumder (Non-Executive Director)

Mr. Subhasis Majumder is Non-Independent Non-Executive Director of subject. He has an experience in the areas of financial services and management consulting. He is a Chemical Engineer from lIT, Kharagpur and an MBA from IIM. He has joined UTI Ventures in the year 2006 and prior to join he worked with IBM, Business Consulting Services (formerly, Pricewaterhouse Coopers Consulting). Before that he was in Luxemburg based Investment Fund for a Middle East National Insurance Company. Earlier on in his career he also had a stint as a credit analyst at CRISIL, the Indian associate of the global credit rating agency. He is not holding Directorship in any other company. He is not the Chairman/Member of any Committee in any other company.

Satish Kumar Mehta (Non-Executive Independent Director)

Mr. Satish Kumar Mehta is Non-Executive Independent Director of subject. He is Director of subject since October 28, 2005. He is B.E.(Mech) and has about 38 years of Industrial experience with companies who are manufacturing Closed Die Forgings, Machined Crankshafts and Non-Traditional Machine Tools. Also he has a diploma in Non-Traditional Machining Processors from Easco Sparcatron School Arm Arbor, U.S.A. and diploma in Production Management from Jamnalal Baja] Institute of Management, Mumbai University. He is a partner of M/s.Edmind Trading Corporation and proprietor of Modern Machine Tools. He has developed India’s first Electrical Discharge Machine with Electro Hydraulic Servo Mechanism. He has won a National Award in 1977 for his contribution in the field of Mechanical Engineering Science. He has also won the Jaycee Award for young person in 1978. He was the Chairman of Technical Committee for Association of Indian Forging Industry, Member of Institute of Forging Technology, U.K., Member of Institute of Engineers-India and Chartered Engineer. He is not holding any Directorship in any other company. He is not the Chairman/Member of any Committee in any other company.

PRESS RELEASES

ICRA upgrades rating of Ramkrishna Forgings' bank facilities

India, September 09 -- Credit rating agency, ICRA has upwards the long term rating of the fund based facilities of Ramkrishna Forgings from BBB+ to A- with a stable outlook. The company's Short term debt / Commercial Paper and the Non fund facilities have also been revised upwards from A2+ to A1 by the rating agency. The company has also obtained Ratings from CRISIL which has assigned a rating of A- for the fund based facilities of the company with a stable outlook. Ramkrishna Forgings engaged in the manufacture and sale of open and closed plain carbon and low alloy steel forgings for railways, automobile, and general engineering purposes in India.

Credit Ratings

India, September 08 -- Ramkrishna Forgings Limited has informed BSE that ICRA has revised upwards the long term rating of the fund based facilities of the Company from BBB+ to A- with a Stable Outlook.The Short rating of the Company for the Short term debt / Commercial Paper and the Non fund facilities of the bank has also been revised upwards from A2+ to A1.The Company has also obtained Ratings from CRISIL which has assigned a rating of A- for the fund based facilities of the Company with a stable outlook.

Board Meeting on Aug 19, 2011

India, August 17 -- Ramkrishna Forgings Limited has informed BSE that a meeting of the Board of Directors of the Company will be held on August 19, 2011, inter alia, to consider and make allotment of the equity shares by conversion of warrants allotted on a preferential basis on February 20, 2010.

ESOPs/ESOS

India, August 11 -- Ramkrishna Forgings Limited has informed the Exchange that the company has launched an ESOP scheme for the welfare of the Employees and the ESOP scheme of the company is administered by the Ramkrishna Forgings Employee Welfare Trust which had Mr. Mahabir Prasad Jalan, Chairman, Mr. Naresh Jalan, Managing Director and Mr. Alok Kumar Sharda, CFO as the trustees.

PICKING WINNERS AMID UNCERTAINTY

Investors can look at cos with historically low ratios of M-cap and operating cash flows

Beat The Street

RANJIT SHINDE AND RAJESH MASCARENHAS

ET INTELLIGENCE GROUP

India's largest sugar manufacturer by revenue, Shree Renuka Sugars, telecom services company, OnMobile Global, auto components players, Sona Koyo Steering Systems and Falcon Tyres, feature in a list of companies whose stocks are trading at three-year low ratio of market capitalisation and operating cash flows. In an uncertain economic scenario, earnings of companies may be impacted due to a near-term decline in demand for products and services, TMs makes valuations based on price-earnings ratios skewed and, hence, less relevant, at least in the short run. Investors, therefore, can consider companies with historically lower ratio of market capitalisation and operating cash flows.

ET Intelligence Group analysed companies which currently trade at a three-year low ratio of market cap and operating cash flows with a focus on over 400 non-banking and non-finance companies which declared their annual audited results during the last nine months with annual turnovers in excess of Rs.4000.000 Millions.

Earnings, or the bottom line of companies' income, may .suffer from accounting manipulations owing to higher credit sales, which faces risk of sales-return in the future. Operating cash flows, on the other hand, include the effect of receivables position of a company and, hence, are less prone to manipulation.

From this sample, we selected only those companies which now trade at a three-year low market cap-to-cash flow ratio and which have maintained a compounded annual growth rate (CAGR) of more than 10% during this period. Just nine companies fitted the bill. These belong to sectors including automobile ancillaries, capital goods, sugar, telecom and tyres. The list is dominated by the auto component sector featuring three players. When listed out based on annual revenues for the latest fiscal, Shree Renuka Sugars tops the list. The company's cash flows shot up after its previous year's acquisitions in Brazil. Auto component players including Sona Koyo Steering, Falocn Tyres and Ramkrishna Forging have made it to the list on account of robust demand from automobile companies.

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.49.13
UK Pound	1	Rs.77.85
Euro	1	Rs.64.75

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		52

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.