MIRA INFORM REPORT

Report Date :

27.08.2013

IDENTIFICATION DETAILS

Name :	BHARAT FORGE LIMITED
Registered Office :	Mundhwa, Pune Cantonment, Pune – 411036, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	19.06.1961
Com. Reg. No.:	11-012046
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 Share are Listed on the Stock Exchange.
Line of Business :	The Company is engaged in the manufacturing and selling of forged components.
No. of Employees :	Information denied by the management

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 92440000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and a reputed company having fine track record. 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.

INDIAN ECONOMIC OVERVIEW

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Long term loan AA-
Rating Explanation	High degree of safety and very low credit risk.
Date	May 2013

Rating Agency Name	ICRA
Rating	Commercial paper A1+
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	May 2013

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION DENIED BY

MANAGEMENT NON - CORPORATIVE (91-20-26702777)

LOCATIONS

Registered Office/ Factory 1 :	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 2 :	Gat No. 635, Kuruli Village, Chakan, District Pune – 410 501, Maharashtra, India
Factory 3 :	Opposite Jarandeshwar Railway Station, Vadhuth, District Satara – 415 011, Maharashtra, India
Factory 4 :	Kusumbe, Jalgaon-Ajantha Road, Jalgaon – 425 003, Maharashtra, India
Factory 5 :	Tandulwadi and Wanjarwadi, Taluka Baramati, District Pune – 413 206, Maharashtra, India

DIRECTORS

As on: 31.03.2013

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. G. K. Agarwal
Designation :	Deputy Managing Director
Qualification :	B.E. (Mech.), M.B.A.
Date of Appointment :	1^st November, 1976
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
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. Amit B. Kalyani
Designation :	Executive director
Name :	Mr. B. P. Kalyani
Designation :	Executive Director
Name :	Mr. S. E. Tandale
Designation :	Executive Director
Name :	Mr. Sunil Chaturvedi
Designation :	Executive Director

KEY EXECUTIVES

Name :	Mr. Ajay Sharma
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.06.2013

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of Total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	808115	0.35
Bodies Corporate	97089055	41.71
Sub Total	97897170	42.05
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	97897170	42.05
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	17181639	7.38
Financial Institutions / Banks	20725664	8.90
Insurance Companies	8185850	3.52
Foreign Institutional Investors	22084735	9.49
Sub Total	68177888	29.29
(2) Non-Institutions
Bodies Corporate	27957902	12.01
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	21805574	9.37
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	12841031	5.52
Any Others (Specify)	4105551	1.76
Non Resident Indians	659540	0.28
Clearing Members	773486	0.33
Trusts	2672525	1.15
Sub Total	66710058	28.66
Total Public shareholding (B)	134887946	57.95
Total (A)+(B)	232785116	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	9200	0.00
Sub Total	9200	0.00
Total (A)+(B)+(C)	232794316	0.00

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Promoter and Promoter Group

Name of the Shareholder	Details of Shares held
	No. of Shares held	As a % of grand total (A)+(B)+(C)
B.N. Kalyani	39,025	0.02
Amit B. Kalyani	3,50,200	0.15
Gaurishankar N. Kalyani	3,45,220	0.15
Sulochana N. Kalyani	50	0.00
Sheetal G. Kalyani	11,490	0.00
Rohini G. Kalyani	50,730	0.02
Kum. Viraj G. Kalyani	11,400	0.00
KSL Holding Private Limited	2,31,42,870	9.94
Ajinkya Investment and Trading Company	98,18,925	4.22
Sundaram Trading And Investment Private Limited	2,09,86,337	9.01
Kalyani Investment Company Limited	3,16,56,095	13.60
Bf Investment Limited	58,07,338	2.49
Rajgad Trading Company Private Limited	6,62,760	0.28
Tanmarg Investment and Trading Private Limited	3,88,000	0.17
Yusmarg Investment and Trading Private Limited	8,22,000	0.35
Kalyani Consultants Private Limited	3,28,500	0.14
Jannhavi Investment Private Limited	22,17,570	0.95
Dronacharya Investment and Trading Private Limited	70,715	0.03
Cornflower Investment and Finance Private Limited	2,47,000	0.11
Dandakaranya Investment and Trading Private Limited	5,12,500	0.22
Campanula Investment and Finance Private Limited	3,44,445	0.15
Hastinapur Investment and Trading Private Limited	84,000	0.04
Total	9,78,97,170	42.05

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Public and holding more than 1% of the total number of shares

Name of the Shareholder	No. of Shares held	Shares as % of Total No. of Shares
Life Insurance Corporation Of India	20576534	8.84
Reliance Capital Trustee Company Limited	12858357	5.52
Kritadnya Management and Trading Services Private Limited	8431225	3.62
The New India Assurance Company Limited	4404879	1.89
Gagandeep credit Capital Private Limited	3418062	1.47
Sudarshan Securities Private Limited	3140216	1.35
Total	52829273	22.69

Shareholding of securities (including shares, warrants, convertible securities) of persons (together with PAC) belonging to the category “Public” and holding more than 5% of the total number of shares of the company

Name of the Shareholder	No. of Shares held	Shares as % of Total No. of Shares
Life Insurance Corporation Of India	20576534	8.84
Reliance Capital Trustee Company Limited	12858357	5.52
Total	33434891	14.36

Details of Depository Receipts (DRs)

Type of Outstanding DR (ADRs, GDRs, SDRs, etc.)	No. of Outstanding DRs	No. of Shares Underlying Outstanding DRs	Shares Underlying Outstanding DRs as % of Total No. of Shares
Global Depository Receipts	9,200	9,200	0.00
Total	9,200	9,200	0.00

BUSINESS DETAILS

Line of Business :

The Company is engaged in the manufacturing and selling of forged components.

GENERAL INFORMATION

No. of Employees :

Information denied by the management

Bankers :

Ø Bank of India

Ø Bank of Baroda

Ø Bank of Maharashtra

Ø Canara Bank

Ø State Bank of India

Ø HDFC Bank Limited

Ø ICICI Bank Limited

Ø Axis Bank Limited

Ø Citibank N.A.

Ø Standard Chartered Bank

Ø The Royal Bank of Scotland N V

Ø Credit Agricole CIB

Facilities :

Secured Loan	31.03.2013 [Rs. in Millions]	31.03.2012 [Rs. in Millions]
Long Term Borrowing
Debentures
2,500 (March 31, 2012: 2,500) - 11.95 % Redeemable non convertible debentures	2500.000	2500.000
1,760 (March 31, 2012: 1,760) - 10.75 % Redeemable non-convertible debentures	1760.000	1760.000
3,500 (March 31, 2012: 3,500) - 10.75 % Redeemable non-convertible debentures	2625.000	3500.000
Term loans From banks
Foreign currency term loans
From Bank of India, London	0.000	0.000
From Credit Agricole Corporate and Investment Bank, Singapore	1086.400	1781.150
Rupee term loans
From Axis Bank	0.000	291.680
Short Term Borrowing
Cash credit from banks	62.660	170.360
Preshipment packing credit - foreign currency	35.560	593.360
Total	8069.620	10596.550

NOTE:

Long-term borrowings

(a) Debentures

The Company has issued the following secured redeemable non-convertible debentures

(i) 2,500 - 11.95 % Redeemable secured non-convertible debentures (Sixteenth series) of Rs. 1,000,000/- each redeemable at par in three equal annual installments on January 5, 2015; on January 5, 2016; on January 5, 2017 respectively.

Above debentures are secured by: (i) First pari-passu mortgage in favour of the Trustees, of all rights and interest on the Company’s immovable properties situated at Mundhwa, Satara, Jalgaon and Chakan with negative lien on properties situated at Jejuri and Baramati; and (ii) First pari-passu charge in favour of the Trustees by way of hypothecation of movable properties, present and future both such as all plant and machinery, equipments, tools, furniture and fixtures etc., as described in Debenture Trust-cum-Mortgage Deed dated April 30, 2009.

(ii) 1,760 - 10.75% Redeemable secured non-convertible debentures (Eighteenth series) of ` 1,000,000/- each redeemable at par in three annual installments @ 35.00% on April 28, 2014; @ 35.00% on April 28, 2015; @ 30.00% on April 28, 2016.

Above debentures are secured by: (i) First pari-passu mortgage in favour of Trustees, of all rights and interest on

the Company’s immovable properties, present and future situated at Mundhwa, Chakan, Satara and Jalgaon with negative lien on properties situated at Jejuri and Baramati as described in schedule-I as per Debenture Trustcum- Mortgage Deed dated June 28, 2010; and (ii) First pari-passu charge in favour of the Trustees on moveable properties, present and future as described in Schedule-II as per Debenture Trust-cum-Mortgage Deed dated June 28, 2010.

(iii) 3,500 - 10.75% Redeemable secured non-convertible debentures (Seventeenth series) of `1,000,000/- each redeemable at par in three installments @ 25.00% on March 22, 2014; @ 50.00% on September 22, 2014; @ 25.00% on March 22, 2015.

Above debentures are secured by: (i) First pari-passu mortgage in favour of the Trustees, of all rights and interest

on the Company’s immovable properties situated at Mundhwa, Satara, Jalgaon and Chakan with negative lien on

properties situated at Jejuri and Baramati; and (ii) First pari-passu charge in favour of the Trustees by way of

hypothecation of movable properties, present and future both such as, all plant and machinery, equipments, tools,

furniture and fixtures etc., as described in Debenture Trust - cum-Mortgage Deed dated December 14, 2009.

(b) Foreign currency term loans

(i) From Bank of India, London

Balance outstanding USD Nil (March 31, 2012: USD 2.50 Million)

Secured by: (i) First charge by way of hypothecation of the whole of the movable properties including its movable

plant and machinery, machinery spares, tools and accessories and other movables, both present and future, whether installed or not and whether now lying loose or in cases or now lying or stored in or about or shall from time to time during the continuance of the security be brought into or upon or be stored or be in or about all the factories, premises and godowns situated at Mundhwa, District Pune; Chakan, District Pune ; Vaduth, District Satara; Village Kusumbe, District Jalgaon, all in the State of Maharashtra or wherever else the same may be or be held by any party to the order of disposition or in the course of transit or on high seas or on order, or delivery, howsoever and wheresoever in the possession and either by way of substitution or addition except specific movable plant and machinery consisting of Wind Energy Converter of 600 K.V. 7 Nos. at Village Boposhi, District Satara, exclusively hypothecated to Standard Chartered Bank, as described under the Deed of Hypothecation dated March 17, 2005 and; (ii) Equitable mortgage by deposit of title deeds of immovable properties situated at Village Mundhwa, Pune; Village Vaduth, Taluka and District Satara ; Village Kusumbe Khurd, Taluka and District Jalgaon and Village Chakan, Pune all in the State of Maharashtra, together with all buildings and structures thereon and all plant and machinery attached to the earth or permanently fastened to anything attached to the earth, as described under Memorandum of Entry dated March 17, 2005.

The loan was repayable in 6 equal yearly installments starting from September 30, 2007, along with interest of 3M LIBOR + 350 bps per annum. The Final installment was paid during the year ended on March 31, 2013

(ii) From Credit Agricole Corporate and Investment Bank, Singapore

Balance outstanding USD 35 Million (March 31, 2012: USD 50 Million)

Secured by first pari-passu charge over present and future movable fixed assets viz. plant and machinery, computers, furnitures and fixtures, whether installed or not and whether now lying loose or in cases or otherwise or being on or upon or at any time, hereafter being on or upon about the premises and godowns at Mundhwa, Pune; Village Kuruli, Chakan; Taluka Khed, District Pune; Village Vaduth, Taluka and District Satara and at Baramati, Pune or anywhere else.

Repayable in 3 yearly installments from the date of its origination, i.e. October 14, 2012, along with interest of 6M Libor + 200 bps per annum.

(iii) Foreign currency term loans on syndicated basis

Balance outstanding USD 80 Million (March 31, 2012: USD 80 Million )

Repayable in 3 half yearly installments from date of its origination i.e. October 31, 2016, along with interest of 6M

Libor + 280 bps per annum.

(iv) Foreign currency term loans on syndicated basis

Balance outstanding USD 40 Million (March 31, 2012: Nil)

Repayable in 3 half yearly installments from the date of its origination i.e. October 31, 2016, along with interest of 6M Libor + 380 bps per annum.

Rupee term loans

From Axis Bank

Balance outstanding Nil (March 31, 2012: Rs.330.560 Million)

Secured by: (i) First pari-passu charge on the Company’s immovable properties, present and future situated at Mundhwa, Chakan, Satara and Jalgaon with negative lien on properties situated at Jejuri and Baramati; and (ii) First pari-passu charge on moveable properties, present and future including land and building. Repayable in 18 semi annual installments from date of its origination i.e. March 20, 2012, along with interest of base rate + 200 bps per annum.

(d) Foreign currency convertible bonds (FCCB)

The Company had issued FCCB (Tranche B) of USD 39.90 Million, detailed in the table below, to finance capital expenditure and global acquisitions. The said bonds are optionally convertible into GDR/Equity shares to be exercised at any time during the exercise period at a pre determined initial price subject to adjustments upon occurrence of certain events. In case there is non conversion of FCCBs, the amount will be repaid in full.

However, the Company has option to redeem the balance of the above Bonds if such balance is less than 10% in aggregate of principal amount of such tranche of bonds originally issued in respect of each tranche, during the redemption exercise period in the manner specified in the offering circular at a premium so as to provide a predetermined yield to the Bondholders.

The Company also has the option to call the Bondholders of Tranche B to mandatorily convert the Bonds into equity shares if the market price on the specified date provided the holder a gain of at least a 30% over the Early Redemption amount. The following table sets out the parameters associated with Tranche B of FCCB issued as discussed above.

Tranche	Amount USD Million	Face Value USD	Coupon Interest Rate % P.a	Holders option to Convert			Company’s option for early redemption			Maurity
				Exercise period		Initial Price per Share `	Exercise period		Gross yield to Bondholders	Date	Price % of Face Value
				From	To		From	To
B	39.90	100000	--	08.06.2006	18.04.2013	690.32	28.04.2009	18.04.2013	6.50%	28.04.2013	156.481%

(d) Foreign currency convertible bonds (FCCB) :

Tranche A of the FCCBs amounting to USD 40.00 Million outstanding as at April 26, 2012 were redeemed on April 27, 2012 along with the redemption premium amounting to USD 17.03 Million. The premium on redemption aggregating to Rs. 994.060 Million, (including withholding tax amounting to Rs. 98.960 Million) since crystallized has been adjusted to securities premium account, net of deferred tax asset amounting to Rs. 322.520 Million, in terms of Section 78(2)(d) of the Companies Act, 1956.

Tranche B of the above FCCBs amounting to USD 39.90 Million outstanding as at April 26, 2013 were redeemed on April 26, 2013 along with the redemption premium amounting to USD 22.54 Million. The premium on redemption aggregating to Rs. 1322.820 Million, (including withholding Tax amounting to Rs. 98.670 Million) since crystalised has been adjusted to securities premium account, net of deferred tax asset amounting to Rs. 429.190 Million, in terms of Section 78(2)(d) of the Companies Act, 1956.

The Company has been legally advised by an eminent law firm that the above mentioned FCCB’s issued upon terms and conditions set out in the offering circular dated April 19, 2005, would be outside the purview of Section 117(C) of the Companies Act, 1956 as regards creation of Debenture Redemption Reserve.

Short-term borrowings

(a) Cash credit from banks and preshipment of packing credit is secured 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 is repayable on demand and carries interest @ 10.50% to 13.25% per annum Preshipment packing credit is repayable within 180 days and carries interest @ LIBOR + 100 bps to 200 bps per annum.

(b) Buyers line of credit is repayable within 180 days to 360 days and carries interest @ EURIBOR + 90 bps to 110 bps per annum.

Banking Relations :	--
Auditors :
Name :	S.R. Batliboi and Company LLP Chartered Accountants
Subsidiaries :	CDP Bharat Forge GmbH Bharat Forge America Inc. BF-NTPC Energy Systems Limited Kalyani ALSTOM Power Limited BF Infrastructure Limited BF Infrastructure Ventures Limited BF Power Equipment Limited BF Elbit Advanced Systems Private Limited Kalyani Polytechnic Private Limited
Step down subsidiaries :	Bharat Forge Holding GmbH Bharat Forge Aluminiumtechnik GmbH and Company KG Bharat Forge Aluminiumtechnik Verwaltungs GmbH Bharat Forge Beteiligungs GmbH Bharat Forge Kilsta AB Bharat Forge Scottish Stampings Limited Bharat Forge Hong Kong Limited FAW Bharat Forge (Changchun) Company Limited Bharat Forge International Limited Bharat Forge Daun GmbH BF New Technologies GmbH
Associates :	Technica U.K. Limited (Investment through wholly owned subsidiary)
Joint Ventures :	ALSTOM Bharat Forge Power Limited Impact Automotive Solutions Limited
Step down joint venture :	David Brown Bharat Forge Gear Systems India Limited
Enterprises owned or significantly influenced by key management personnel or their relation	Kalyani Carpenter Special Steels Limited Kalyani Steels Limited BF Utilities Limited Automotive Axle Limited

CAPITAL STRUCTURE

As on: 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
300000000	Equity Shares	Rs.2/- each	Rs.600.000 Millions
43000000	Cumulative Preferences 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	Rs.2/- each	Rs.465.940 Millions

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
232794316	Equity Shares	Rs.2/- each	Rs.465.590 Millions
172840	Add: Forfeited Equity Shares		Rs.0.090 Million
	Total		Rs.465.680 Millions

1. Reconciliation of the shares outstanding at the beginning and at the end of the year:

Particular	As on 31.03.2013
	No. of Shares	Rs. in Millions
At the beginning of the year	232794316	465.590
Issued during the year	--	--
Outstanding at the end of the year	232794316	465.590

2. Terms/rights attached to equity shares

The Company has only one class of issued equity shares having a par value of Rs. 2/- per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended March 31, 2013, the amount of per share interim dividend recognised as distributions to equity shareholders was Rs. 1.00/- (March 31, 2012: Rs.1.50/-).

During the year ended March 31, 2013, the amount of per share proposed final dividend recognised as distributions to equity shareholders was Rs. 2.40/- (March 31, 2012: Rs. 2.50/-).

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

3. Shares held by holding/ultimate holding company and/or their subsidiaries/associates

The Company being ultimate holding company there are no shares held by any other holding, ultimate holding company and their subsidiaries/associates.

4. Aggregate number of bonus shares issued, shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date

There are no bonus shares issued, shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding reporting date.

5. Details of shareholders holding more than 5% of the aggregate shares in the Company:

Particular	As on 31.03.2013
	No. of Shares Held	% of Holding
Kalyani Investment Company Limited	31656095	13.60
KSL Holdings Private Limited	23142870	9.94
Sundaram Trading and Investment Private Limited	20986337	9.01
Life Insurance Corporation of India	20358099	8.74
Reliance Capital Trustee Company Limited	12151369	5.22

* The shareholding information is based on legal ownership of shares and has been extracted from the of the Company including register of shareholders/members.

6. Shares reserved for issue under options

Particulars	31.03.2013
Warrants issued with option to subscribe	6500000
The issue of Foreign Currency Convertible Bonds optionally convertible at an initial price specified in offering circular. As the initial price is subject to adjustments specified in the offering circular and hence inability to assess the proportion of conversion, no amounts have been shown under issued equity share capital, in respect of equity shares reserved for issued on exercise of conversion by bondholders	--
2,340 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 1,170 equity shares of Rs. 2/- each, have been kept in abeyance and reserve for issue pending adjudication of title to the pre right holding	3510

7. Terms of securities convertible into equity shares

1. The Company had issued and allotted to Qualified Institutional Buyers, 10,000,000 equity shares of Rs. 2/- each at a price of Rs. 272/- per share aggregating to Rs. 2720.000 Million on April 28, 2010, simultaneous with the issue of 1,760 10.75% Non Convertible Debentures (NCD) of a face value of Rs. 1,000,000/- at par, together with 6,500,000 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 Million had been temporarily deployed in fixed deposits with banks and in mutual funds and the balance has been utilized towards the object of the issue. The Warrant holders were entitled to exercise their right to exchange the warrants into corresponding number of equity shares, upto April 28, 2013. As no warrant have been exercised on or before the said warrant exercised period, the warrants have lapsed and ceased to be valid.

2. Regarding Foreign Currency Convertible Bonds.

8. Global depository receipts

The Company had issued 3,636,500 equity shares of Rs.10/- each (later sub-divided into 18,182,500 equity shares of Rs. 2/- each) in April and May 2005 represented by 3,636,500 Global Depository Receipts (GDR) (on sub division 18,182,500 GDRs) evidencing “Master GDR Certificates” at a price of USD 27.50 per GDR (including premium). GDRs outstanding at the close of the year are 9,200 (March 31, 2012: 9,200). The funds raised has been utilised towards the object of the issue.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	465.680	465.680	465.68
(b) Reserves & Surplus	22645.640	20965.270	19488.180
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	23111.320	21430.950	19953.860
(3) Non-Current Liabilities
(a) long-term borrowings	14489.800	16003.980	13941.370
(b) Deferred tax liabilities (Net)	1364.300	1271.520	1556.190
(c) Other long term liabilities	7.400	7.150	5.880
(d) long-term provisions	332.920	327.900	274.900
Total Non-current Liabilities (3)	16194.420	17610.550	15778.340
(4) Current Liabilities
(a) Short term borrowings	390.110	840.980	661.300
(b) Trade payables	4541.150	6656.180	6164.330
(c) Other current liabilities	6282.110	5375.780	875.950
(d) Short-term provisions	908.040	1367.260	1206.930
Total Current Liabilities (4)	12121.410	14240.200	8908.510
TOTAL	51427.150	53281.700	44640.710
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	19988.080	17961.990	17632.570
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	2228.060	2887.570	784.380
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	5453.460	5115.520	5716.260
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	3863.350	4036.890	3442.210
(e) Other Non-current assets	423.890	588.050	417.350
Total Non-Current Assets	31956.840	30590.020	27992.770
(2) Current assets
(a) Current investments	3852.990	4246.970	2427.250
(b) Inventories	4757.010	5031.340	4684.340
(c) Trade receivables	4742.320	4911.750	4313.210
(d) Cash and cash equivalents	2790.780	5005.940	2320.400
(e) Short-term loans and advances	2570.550	2702.420	2124.750
(f) Other current assets	756.660	793.260	777.990
Total Current Assets	19470.310	22691.680	16647.940
TOTAL	51427.150	53281.700	44640.710

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	31512.270	36859.740	29470.040
		Other Income	916.250	675.700	465.430
		TOTAL	32428.520	37535.440	29935.470
Less	EXPENSES
		Cost of raw material and components consumed	13430.860	16496.200	13661.520
		Decrease/(increase) in inventories of finished goods and work-in-progress	141.460	(162.120)	(358.320)
		Employee benefits expense	2573.880	2549.640	2104.770
		Other expenses	8210.320	8823.000	6906.820
		TOTAL	24356.520	27706.720	22314.790
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		8072.000	9828.720	7620.680
Less	FINANCIAL EXPENSES		1533.590	1504.650	1214.420
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		6538.410	8324.070	6406.260
Less/ Add	DEPRECIATION/ AMORTISATION		2239.330	2149.330	1932.680
	PROFIT BEFORE EXCEPTIONAL ITEMS AND TAX		4299.080	6174.740	4473.580
Add	EXCEPTIONAL ITEMS AND TAX		105.690	(704.160)	0.000
	PROFIT BEFORE TAX		4404.770	5470.580	4473.580
Less	TAX		1348.840	1849.850	1365.330
	PROFIT AFTER TAX		3055.930	3620.730	3108.250
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD			8284.100	6833.230
Less	APPROPRIATIONS
		Interim Dividend on Equity Shares	232.790	349.190	0.000
		Tax on above dividend	37.760	56.650	0.000
		Proposed Final Dividend on Equity Shares	558.710	581.990	814.780
		Tax on above dividend	94.950	94.410	132.180
		Debenture Redemption Reserve	408.600	408.600	399.420
		Transfer to General Reserve	305.600	362.100	311.000
	BALANCE CARRIED TO THE B/S		11469.410	10051.890	8284.100
	EARNINGS IN FOREIGN CURRENCY
		F.O.B. value of exports	15613.350	17309.920	12110.340
		Insurance and freight on Exports	189.200	457.280	347.620
		Tooling Charges	252.950	37.170	84.750
		Sale of Certified Emission Reduction Units	--	--	3.450
		Interest received on Fixed Deposits / Others	0.090	0.020	0.700
		Interest on Loan to Subsidiary	29.560	33.360	22.050
		Guarantee commission	4.590	4.480	0.000
	TOTAL EARNINGS		16089.740	17842.230	12568.910
	IMPORTS
		Raw Materials	661.380	472.120	448.180
		Die Blocks, Die Steel, Tool Steel & Spares	718.260	715.260	498.540
		Capital Goods	865.890	1311.160	448.980
	TOTAL IMPORTS		2245.530	2498.540	1395.700
	Earnings Per Share (Rs.)
	Basic		13.13	15.55	13.39
	Diluted		13.13	15.53	13.11

QUARTERLY / SUMMARISED RESULTS

PARTICULARS	30.06.2013
Audited / UnAudited	UnAudited
Net Sales	7915.600
Total Expenditure	5954.600
PBIDT (Excl OI)	1961.000
Other Income	354.200
Operating Profit	2315.200
Interest	354.300
Exceptional Items	0.000
PBDT	1960.900
Depreciation	610.700
Profit Before Tax	1350.200
Tax	444.200
Provisions and contingencies	0.000
Profit After Tax	906.000
Extraordinary Items	0.000
Prior Period Expenses	0.000
Other Adjustments	0.000
Net Profit	906.000

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	9.42	9.65	10.38
Net Profit Margin (PBT/Sales)	(%)	13.98	14.84	15.18
Return on Total Assets (PBT/Total Assets}	(%)	10.07	12.08	11.73
Return on Investment (ROI) (PBT/Networth)		0.19	0.25	0.22
Debt Equity Ratio (Total Debt /Networth)		0.64	0.79	0.73
Current Ratio (Current Asset/Current Liability)		1.61	1.59	1.87

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITIES:

Particulars	31.03.2013	31.03.2012	31.03.2011
Current maturities of long-term borrowings
--Secured	1689.800	929.460	130.960
--Unsecured	2167.370	2035.600	0.000
TOTAL	3857.170	2965.060	130.960

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	Yes
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	----------------------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	----------------------
22]	Litigations that the firm / promoter involved in	----------------------
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	----------------------
26]	Buyer visit details	----------------------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

UNSECURED LOAN:

Particulars	31.03.2013 [Rs. in Millions]	31.03.2012 [Rs. in Millions]
Long Term Borrowing
On syndication basis	4345.600	4071.200
On syndication basis	2172.800	0.000
Foreign currency convertible bonds (FCCB )
USD 40.0 Million (March 31, 2012: USD 40.0 Million) 0% Tranche A FCCBs (Redeemed on April 28, 2012)	0.000	0.000
USD 39.9 Million (March 31, 2012: USD 39.9 Million) 0% Tranche B FCCBs (Redeemable on April 28, 2013)	0.000	2030.510
Sales tax deferral liability
Under Government of Maharashtra Package Scheme of Incentives	0.000	69.440
Short Term Borrowing
Buyers line of credit for import of goods from banks	291.890	77.260
Total	6810.290	6248.410

CORPORATE INFORMATION

The Company is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on two stock exchanges in India. The Company is engaged in the manufacturing and selling of forged components. The Company caters to both domestic and international markets.

GLOBAL AND INDIAN ECONOMIC OVERVIEW

The world economy continued to struggle in CY 2012 with a visible slowdown in the emerging market and developing economies, a reflection of the sharp decline in demand from economies like USA and Eurozone Area, domestic policy tightening, and the end of investment booms in some of the major emerging markets. Developing economies are still the main driver of global growth, but their output has slowed compared with the pre-crisis period.

Over the past few months, two of the biggest threats to global recovery have been temporarily averted, a Euro area breakup and a sharp fiscal contraction in the United States from the “fiscal cliff.”

Overall global growth for the year came in at 3.2 percent in 2012 as against 4.0 percent in CY 2011 and is expected to grow by 4.0 percent in CY13. (Source: IMF)

India faced its own share of problems driven by protracted weakness in industrial activity and slowdown in the services sector. India’s quarterly GDP growth declined for the seven consecutive quarters in October – December 2012, hitting a nine-year low of 4.7 percent. (Source: RBI). GDP% for the January – March 2013 quarter registered 4.8 percent and for the year GDP% came in at 5.0 percent as against 6.2 percent in the previous fiscal.

GLOBAL AUTOMOBILE INDUSTRY

The global automobile industry is highly concentrated, in USA, Europe, Japan, China, Brazil, India and Korea, covering a major share of the pie. Global vehicle production reached a record 84.1 Million in numbers in 2012 (Source: OICA), up 5 percent over the previous year.

Most of the global automotive markets witnessed a concurrent demand decline for both mass market passenger cars and commercial vehicles (CVs), impacted by a weak demand environment. The demand was dampened due to low levels of economic activities across regions. There was a subsequent demand decline across all the major regions except North America, where the passenger car sales continue to surge. Automotive Sales in the Eurozone auto industry remained depressed due to the challenging economic conditions, and this downtrend is expected to continue for some time. However, CV sales in Western Europe are likely to remain stable to slightly positive as compared to previous year.

China and India witnessed weak automotive demand on back of slackening economic demand. In 2012, Indian automotive market witnessed one of its most challenging periods while china witnessed a slump demand which is estimated to report auto sales of 19 Million, growing at single digit rate, one of the lowest in many years (Source: Global Auto Report -Scotia Bank, 2012).

EXPORTS

BFL is a major supplier of safety and critical components for the automotive (passenger and CV) and industrial sector. These components provided to passenger and CVs are critical, safety and high value-added. BFL enjoys the privilege of strong relationship with global OEMs spread across automotive and industrial sectors.

The Company has successfully expanded its relationships across various geographies, notably in Brazil and Japan. This has been achieved on the back of BFL’s deep engagement with global OEMs and its ability to by supply critical and technologically differentiated products.

The Company has transformed its industrial business from serving just one or two product categories to limited customers, to a separate business vertical with a dynamic product offering across customers, geographies and segments.

Similar to the domestic business, BFL has a limited exposure to the passenger vehicles through exports. However, with the industry moving towards better fuel efficiency and stringent emission norms through the use of lighter engines, they will require high-performance parts. BFL is making significant progress with substantial efforts aimed towards this space. It is confident of achieving success in increasing its exposure to this segment in the coming years.

SUBSIDIARIES

Global subsidiaries

BFL’s global subsidiaries help contribute to the development of the entire Group. These subsidiaries allow the Company to:

• Increase customer penetration and proximity to the customer,

• Cross fertilisation of best practices and exchange of technology,

• Enhance the ability to cater to the customers through a dual-shore based model which will reduce the customer’s dependency on the no. of suppliers for different components.

Following a good year in CY 2011, all the global subsidiaries of the Company focused on cost reductions, right sizing of organisation and new market development. However, global markets have been extremely volatile in second half of CY 2012 resulting in lackluster performance of the subsidiaries.

Europe: Performance of European subsidiaries was adversely affected in CY 2012 on backdrop of lower demand in the underlying markets. The subsidiaries have focused on improvement in productivity, lean organisation and cost reduction. As a result of these initiatives, European subsidiaries have been able to achieve profitability during these uncertain market conditions. These companies continue to develop new products, increasing share of business with Customers and focus of improvement in operational performance

USA: In November 2012, US subsidiary of the Company – Bharat Forge America Inc. (BFA) closed its manufacturing operations due to sustained losses. Most of the existing business of BFA was transferred to India thereby protecting the business within the Group. Subsequently all assets of BFA were sold in US in May 2013 for $ 11.25 Million. Loss for CY 2012 due to such discontinued business was Rs.168.000 Million.

China: Performance of Joint Venture in China was adversely affected by drop in underlying market in China. The drop in market was severe especially in commercial vehicle market (drop of 30 percent over last year) and construction market (drop of 70 percent over last year). As a result, the capacity utilisation of Joint Venture Company was far below break-even level resulting in higher losses in CY 2012.

Indian subsidiaries

BFL has been foraying into the capital goods and infrastructure business segments (both offer major growth opportunities) through investments in JVs and subsidiaries.

Alstom Bharat Forge Power Limited (ABFPL) and Kalyani Alstom Power Limited (KAPL)

India’s Planning Commission projects that the country needs at least 35-40 GW of additional generation capacity annually to reach the necessary installed capacity of 800 GW by 2030. Alstom Bharat Forge Power Limited (ABFPL) and Kalyani Alstom Power Limited (KAPL) are two JV companies of BFL with Alstom. These JVs design, engineer and manufacture state-of the- art power equipment, including turbines, generators, heat exchangers range for power plant units of 300 MW to 800 MW. ABFPL has been awarded two prestigious orders by NTPC Limited. The first one, a 2X660 MW supercritical Turbine Generator Islands is set to be installed at Solapur in Maharashtra, while a 3X660 MW supercritical turbine generator islands is going to be installed at Nabinagar in Bihar. Both of these projects, together constituting robust orders of Rs.38000.000 Million, are being implemented and all key design and engineering milestones for these have been met.

BF Infrastructure Limited (BFIL)

BFL’s wholly-owned subsidiary, BFIL, endeavors to be a key contributor in India’s infrastructure growth through a niche and dominant role in a few important segments including power. The Company possesses a host of key enablers, including a talent pool with nearly 1,500 man-years of proven project experience. It is currently setting up a 450 MW (3X150 MW) coal based thermal power plant at Haldia, West Bengal, for India Power Corporation (Haldia) Limited on EPC basis at a cost of Rs.18850.000 Million. After suffering from initial delays due to land related problems, the project is under implementation now. It is expected to be completed with all the three turbines proposed to be commissioned in the next financial year.

BF-NTPC Energy Systems

BFL’s JV with NTPC, namely BF-NTPC Energy Systems Limited, has identified critical shortages in the domestic availability of products, such as high-pressure piping, special castings, valves and pumps, which retard timely completion of the country’s power plants. Due to current depressed market conditions in the power sector, BF-NTPC Energy Systems Limited has decided to put the project on hold and revisit it once demand in the sector revives.

David Brown Bharat Forge Gear Systems India Limited

David Brown Bharat Forge Gear Systems India Limited is a JV company located in Pune and serves India’s industrial market. It supplies both newly build gearboxes and comprehensive aftermarket services to sectors, such as power, mining, defense, wind, rail and steel. In the first phase, the JV has established service centre in Hosur, Karnataka and will set up a manufacturing facility in the second phase once the demand in the capital goods/power sector revives.

FINANCIAL REVIEW

Total income FY13 witnessed a decline in total income by about 13.5 percent from Rs. 37474.000 Million in FY12 to Rs. 32429.000 Million in FY13. The decline was largely due to a continued slump in automotive demand and drop in component sales to the industrial sectors both in India and overseas markets.

The demand for India’s industrial segment was impacted by global slowdown across markets. In India, the industrial sales were primarily impacted due to weak investment sentiments and a slowdown in industrial activities. Rest of the markets faced declining demand from various infrastructural activities.

Income

Domestic sales decreased by 18.9 percent on the back of 27 percent decline in volumes in the MandHCV segment and order declines in the industrial sector in India.

Export sales declined by 8.5 percent on back of slump in demand across auto and industrial segments across all major geographies. Export realisation improved during the year on back of rupee depreciation against major currencies and also increase in supply of machined components.

Other Operating income (Export Incentive) declined during the year due to reduction in incentive rates. Other income increased 49.2 percent from Rs.614.000 Million to Rs. 916.000 Million. Overall, total income reduced 13.54 percent from Rs.37474.000 Million to Rs. 32429.000 Million.

Expenditure

Raw Material as percent of total income decreased from 43.6 percent in FY12 to 41.9 percent in FY13 on improved

Machining and higher realisation per tonne. Manufacturing cost as percent of total income increased from 17.2 percent to 18.4 percent due to increase in Power cost which increased from Rs.6.76 per Kwh in FY12 to Rs. 7.74 Kwh in FY13.

Salary cost increased from 6.8 percent to 7.9 percent on primarily on account of sudden drop in demand which had an impact on total income. Other expenditure remained more or less flat at 6.4 percent on a YoY basis.

EBITDA % marginally declined by 60 bps from 26.1 percent to 25.5 percent despite a more than a 10 percent decline in top line on back of measures taken towards the end of the fiscal to reduce cost in line with the lower demand environment.

Depreciation and Interest Cost increased from 9.2 percent to 11.6 percent on back of new machining lines getting commissioned in the fiscal and replacement of US$ 39.9 Million Zero Coupons FCCB with an ECB of similar amount.

OUTLOOK

Economic uncertainties, along with a decline in automotive and industrial sectors in its primary markets, namely India, the US and the Eurozone nations, adversely impacted BFL’s performance in FY13. Despite the Company’s recovery initiatives through cost control and increased productivity, the domestic as well as export outlook for the first two quarters of FY14 remain sluggish.

STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH JUNE, 2013

Particulars	Quarter ended 30th June, 2013 (Unaudited)
PART-I
a) Sales & Income from Operations :
Domestic	4146.400
F.O.B. value of Exports & Corresponding Income	3972.200
Total Sales	8118.600
Less : Excise Duty	402.100
Total Net Sales (Net of Excise duty)	7716.500
b) Other Operating income	199.100
Total Income from Operations	7915.600
Expenses :
a) Cost of materials consumed	3347.100
b) Changes in Inventories of Finished goods, W.I.P. & stock in trade	(95.100)
c) Employee benefits expense	707.000
d) Depreciation and amortisation expense	610.700
e) Manufacturing expenses	1384.800
f) Other expenses	610.800
Total expenses	6565.300
Profit from operations before other income, finance costs and exceptional Items (1-2)	1350.300
Other income	354.200
Profit from ordinary activities before finance costs and exceptional items (3+4)	1704.500
Finance costs	354.300
Profit from ordinary activities after finance costs but before exceptional items (5-6)	1350.200
Exceptional items	-
Profit from ordinary activities before tax (7+8)	1350.200
Tax expenses	444.200
Net Profit from ordinary activities after tax (9-10)	906.000
Extraordinary item (net of tax expenses)	-
Net Profit for the period / year (11-12)	906.000
Paid-up Equity Share Capital (Face Value Rs. 2/- each)	465.700
Reserves excluding Revaluation Reserves as per balance sheet of previous accounting year
a) Basic Earning per share of ? 2/- each before and after Extraordinary item	3.89
b) Diluted Earning per share of ? 2/- each before and after Extraordinary item	3.89

Additional Information :
Profit before tax, before exchange gain / (loss) & exceptional items	1175.500

Particulars	Quarter ended 30th June, 2013
	(Unaudited)
PART II
Particulars of shareholding
Public Shareholding
- Number of Shares	134887946
- Percentage of Shareholding	57.95%
Promoters and Promoter Group Shareholding
a) Pledged / Encumbered
- Number of Shares	0.000
- Percentage of shares (as a % of the total
shareholding of promoter and promoter group)	0.000
- Percentage of shares (as a % of the total
share capital of the company)	0.000
b) Non-encumbered
- Number of Shares	97897170
- Percentage of shares (as a % of the total
shareholding of promoter and promoter group)	100%
- Percentage of shares (as a % of the total
share capital of the company)	42.05%

Notes to Financial Results:

1. The above results have been reviewed by the Audit Committee and approved by the Board of Directors of the Company at their respective meetings held on August 8, 2013. The statutory Auditors of the Company have carried out a "Limited Review" of the results for the Quarter ended June 30, 2013.

2. Earnings per share have been computed in accordance with the principles laid down by The Accounting Standard (AS) 20.

3. Previous year's/periods' figures are regrouped/restated, wherever necessary to make them comparable with those of the current period.

STANDALONE SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE QUARTER ENDED 30^TH JUNE, 2013.

Particulars	Quarter ended 30th June, 2013 (Unaudited)
Segment Revenue:
Steel Forging	7884.700
Gen. Engg. Trading etc.	42.800
Total	7927.500
Less: Inter Segment Revenue	30.300
Net Sales / Income from Operations	7897.200
Segment Results: Profit/(Loss) (before tax and finance costs from each segment)
Steel Forging	1819.900
Gen. Engg.,Trading etc.	4.700
Total	1824.600
Less: Finance costs	354.300
Other Un-allocable expenditure net off Un-allocable income	120.100
Total Profit before tax and exceptional items	1350.200
Exceptional items Total Profit Before tax	1350.200
Capital Employed (Segment assets -Segment Liabilities)
Steel Forging -	26873.800
Gen. Engg.,Trading etc.	393.900
Unallocable Assets less Liabilities
-Investments in Subsidiaries/Joint Ventures	5187.200
others	12973.400
Total	45428.300
Secondary information in respect of Geographical segment on the basis of location of customers
Domestic	3925.000
Exports	3972.200

The Company has identified its business segments as its primary reporting format which comprises of Forgings and General Engineering. The main segment is Forgings. All products made by the Company essentially emanate from forgings and therefore it is reported as an independent business segment. General Engineering is a fabrication unit which constitute a miniscule portion of the Company's activities.

The Company on a standalone basis operates through a single geographical segment where all assets are located in India. Secondary segment disclosures have been made accordingly.

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)

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 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.64.23
UK Pound	1	Rs.100.00
Euro	1	Rs.85.93

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	ANK

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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
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

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.