MIRA INFORM REPORT

Report Date :

16.01.2013

IDENTIFICATION DETAILS

Name :	KIRLOSKAR BROTHERS LIMITED
Registered Office :	Udyog Bhavan, Tilak Road, Pune-411002, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	15.01.1920
Com. Reg. No.:	11-000670
Capital Investment / Paid-up Capital :	Rs.158.679 Millions
CIN No.: [Company Identification No.]	L29113PN1920PLC000670
TAN No.: [Tax Deduction & Collection Account No.]	PNEK0011E
PAN No.: [Permanent Account No.]	AAACK7300E
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacture and Exporter of Centrifugal Pumps.
No. of Employees :	2800 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (55)

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

Maximum Credit Limit :	USD 30000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a part of Kirloskar Group. It is a well established and diversified industrial house. It is having fine track record. Financial position of the company appears to be good. There appears some dip in the sales and profitability of the company during the year 2012. However, trade relations are reported as decent. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good for business dealings at usual trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long Term Rating = AA
Rating Explanation	High degree of safety and very low credit risk
Date	29.11.2012

Rating Agency Name	CRISIL
Rating	Short Term Rating = A1+
Rating Explanation	Very strong degree of safety and lowest credit risk
Date	29.11.2012

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.

LOCATIONS

Registered Office :	Udyog Bhavan, Tilak Road, Pune-411002, Maharashtra, India
Tel. No.:	91-20-24440770 / 24444455 / 24444444 / 24402189
Fax No.:	91-20-24440824 / 24444198/ 24442780 / 24440156 / 24434198 / 24440822 / 24270879 / 24402083
E-Mail :	kblin@kbl.co.in gpk@kbl.co.in gajanan.kulkarni@kbl.co.in
Website :	http://www.kirloskar.com http://www.kbl.co.in
Location :	Owned
Corporate Office :	“YAMUNA”, Survey No. 98 (3-7), Baner, Pune-411045, Maharashtra, India
Tel. No.:	91-20-27214598 / 27214444
Fax No.:	91-20-27211136
E-Mail :	kblin@kbl.co.in
Website :	http://www.kirloskar.com http://www.kbl.co.in
Factory 1 :	Kirloskarvadi, Dewas, Shirwal, Kondhapuri-416308, District Sangli, Maharashtra, India
Tel. No.:	91-2346-222301 – 05
Factory 2 :	Opposite Railway Station, Ujjain Road, Dewas – 455001, Madhya Pradesh, India
Tel. No.:	91-7272-227402/ 227341
Factory 3 :	Gat No. 252/2 + 254/2, Kondhapuri Taluka : Shirur, District Pune – 412208, Maharashtra, India
Tel. No.:	91-2137-270217/ 270116/ 270140
Factory 4 :	Shirval 4. Gat No. 117, Shindevadi Taluka Khandala, District Satara-412801, Maharashtra, India
Tel. No.:	91-2169-244360 / 244370
Factory 5 :	Printing Press, Kirloskar Kisan Compound, 13A, Karve Road, Kothrud, Pune – 411038, Maharashtra, India
Tel. No.:	91-20-5412471-4
Branch Office 1 :	New India Centre, 17-A Cooperage Road, Colaba, Mumbai – 400 039, Maharashtra, India
Tel. No.:	91-22-22020828
Fax No.:	91-22-22026267
Branch Office 2 :	Jeevan Tara Building, 5 Sansad Marg, New Delhi – 110 001, India
Tel. No.:	91-11-23341484 / 23347233 / 23347234
Sales Office :	Located at: Ahmedabad Bangalore Bhopal Bhubaneshwar Chennai Jaipur Kochi Kolkata Lucknow Nagpur Secunderabad
Overseas Office :	Located At · Germany · United Arab Emirates · Kenya · Lao PDR · Malaysia · Singapore · Vietnam

DIRECTORS

AS ON 31.03.2012

Name :	Mr. Sanjay Kirloskar
Designation :	Chairman and Managing Director
Qualification :	Bachelor of Science (M.E), Illinois Inst. Of Tech. USA
Date of Appointment :	02/05/1983
Name :	Mr. Gautam Kulkarni
Designation :	Vice Chairman
Name :	Mr. Vikram Kirloskar
Designation :	Director
Qualification :	Bachelor of Science (Mech.) MIT, USA
Date of Appointment :	06/06/2001
Name :	Mr. M. S. Kirloskar
Designation :	Director
Name :	Mr. S. N. Inamdar
Designation :	Director
Name :	Mr. Rahul Kirloskar
Designation :	Director
Name :	Mr. U. V Rao
Designation :	Director
Name :	Mr. R. K. Srivastava
Designation :	Whole Time Director
Qualification :	M. Tech (LIT. Bombay)
Date of Appointment :	15/05/1989
Name :	Mr. P S Jawadekar
Designation :	Director
Name :	Mr. J. R. Sapre
Designation :	Whole Time Director
Qualification :	Bachelor of Science
Date of Appointment :	01.04.2002
Name :	Mr. A. N. Alawani
Designation :	Director
Name :	Mrs. Lalita D Gupte
Designation :	Director
Name :	Mr. Pratap B. Shirke
Designation :	Director

KEY EXECUTIVES

Name :	Mr. G. P Kulkarni
Designation :	Company Secretary (Up to 08.05.2012)
Name :	Mr. Vinayak Kulkarni
Designation :	General Finance Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2012

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	30878719	38.91
Bodies Corporate	19250141	24.26
Sub Total	50128860	63.17
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	50128860	63.17
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	6146190	7.74
Financial Institutions / Banks	91143	0.11
Insurance Companies	4012375	5.06
Foreign Institutional Investors	1836513	2.31
Sub Total	12086221	15.23
(2) Non-Institutions
Bodies Corporate	3148422	3.97
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	11277271	14.21
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	2560419	3.23
Any Others (Specify)	157258	0.20
Non Resident Indians	131136	0.17
Clearing Members	26122	0.03
Sub Total	17143370	21.60
Total Public shareholding (B)	29229591	36.83
Total (A)+(B)	79358451	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	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	79358451	0.00

BUSINESS DETAILS

Line of Business :

Manufacture and Exporter of Centrifugal Pumps.

Products :

Product Description	ITC Code
Pumps for Liquids	84.13
Valves	84.81
Construction and Project Related Activity	NA

Exports :

Countries :

· Europe

· Africa

· UK

· USA

Imports :

Products :

· Raw Materials

Countries :

· Germany

· Europe

Terms :

Selling :

Depends

Purchasing :

Depends

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Power Driven Pumps	Nos.	194,000	194,000	@ 314,677
Metal Cutting including Grinding Machines	Nos.	736	736	--
Reduction Gear Units	Nos.	1,200	1,200	--
Valves	Nos.	70,070	70,070	31,123
Ploughs	Nos.	3,216	3,216	--
Alloy Iron Castings including Steel Castings	M.T.	* 120	* 120	--
Cast Iron Castings	M.T.	2,500	2,500	--
Cast Iron Castings including Alloy Steel Castings for Automotive purposes	M.T.	5,000	5,000	937
Turbines	Nos.			5
Electric Motors	Nos.			@@ 17,788

@ Includes 56 (80) for own use.

@@ Includes 11 (12) for own use.

* Per annum on single shift basis.

Notes

a) Licensed Capacity includes registered capacities for activities existing prior to the Industries (Development Regulation) Act, 1951, but does not include licenses held for captive capacities.

b) It is not practicable to indicate precisely installed capacity of each type of product manufactured by the Company, as the capacity of various facilities available is overlapping for each product. Besides, the Company manufactures a very large range amongst the licensed products which, in turn, is decided by actual demand from time to time. Also the Company buys components, parts and other services from outside. The installed capacities as indicated above are estimates as certified by the Managing Director and accepted by the Auditors.

c) In terms of notification no. 477E dated 25.07.1991 issued by Department of Industrial Development, industrial licenses are not required for the products manufactured by the Company except centrifugal pumps manufactured at Dewas below 10 cm x 10 cm which are reserved for small scale sector. Revalidation of industrial license in this range of pumps is under process.

GENERAL INFORMATION

Customers :

· OEM’s

· Distributors

No. of Employees :

2800 (Approximately)

Bankers :

· Bank of India

· Canara Bank

· HDFC Bank Limited

· ICICI Bank Limited

· Citibank N.A.

· Credit Agricole Corporate and Investment Bank

Facilities :

Secured Loan	Rs. In Millions 31.03.2012	Rs. In Millions 31.03.2011
(a) Term loans from banks
External commercial borrowing from Credit Agricole Corporate and Investment Bank	400.668	658.437
Terms of loan: Loan is secured by first pari-passu charge on existing and future fixed assets (excluding land and buildings). Amount of loan borrowed is US$ 20 million in March 2010 and carries interest rate of US$ LIBOR + 2.55% p.a. Loan is repayable as under. 1st installment - 30% US$ 6 Million at the end of two years from the first drawdown 2nd installment - 30% US$ 6 Million at the end of three years from the first drawdown 3rd installment - 40% US$ 8 Million at the end of four years from the first drawdown
(b) Loans repayable on demand from banks
(i) Working capital demand Loans	0.000	100.000
(ii) Cash / export credit facilities	1692.666	634.005
Nature of security : Both the loans are secured by hypothecation of all current assets of the company.
Total	2093.334	1392.442

Banking Relations :	--
Auditors :
Name :	P. G. Bhagwat Chartered Accountants
Joint Ventures :	· Kirloskar Ebara Pumps Limited
Subsidiaries:	· Kirloskar Constructions and Engineers Limited · The Kolhapur Steel Limited · Kirloskar Systech Limited · Hematic Motors Private Limited · Kirloskar Corrocoat Private Limited · Kirloskar Brothers International B V
Subsidiaries of Kirloskar Brothers International B.V.:	· SPP Pumps Limited · Kirloskar Brothers Europe B.V · Micawber 784 (Proprietary) Limited · Kirloskar Brothers(Thailand) Limited · SPP Pumps (MENA) L.L.C.
Subsidiaries of SPP Pumps Limited :	· SPP Pumps France EURL · Certified Engines Limited · SPP (South Africa) Pty. Limited · SPP Pumps Holdings LLC · SPP Pumps Management LLC · SPP Pumps LP · SPP France S A S
Subsidiary of Micawber 784 ( Proprietary) Limited	Braybar Pumps (Proprietary) Limited
Enterprises over which key managerial personnel or their relatives exercise significant influence :	Kirloskar Proprietary Limited

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
250000000	Equity Shares	Rs.2/- each	Rs. 500.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
79339701	Equity Shares	Rs.2/- each	Rs. 158.679 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		158.679	158.677	158.667
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		7377.619	7275.705	6905.154
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		7536.298	7434.382	7063.821
LOAN FUNDS
1] Secured Loans		2093.334	1392.442	774.287
2] Unsecured Loans		1135.421	1823.462	2798.099
TOTAL BORROWING		3228.755	3215.904	3572.386
DEFERRED TAX LIABILITIES		0.000	46.736	79.525
Employee Stock Options Outstanding		0.000	0.000	69.941
TOTAL		10765.053	10697.022	10785.673
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2829.359	2796.750	2726.644
Capital work-in-progress		360.071	200.304	213.978
INVESTMENT		2149.432	1673.263	1902.990
DEFERREX TAX ASSETS		25.995	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2099.615	1927.488	1790.312
	Gross amount due from customers for project related contract work	0.000	0.000	2570.500
	Sundry Debtors	2980.483	4493.389	5997.515
	Cash & Bank Balances	205.335	576.635	965.908
	Other Current Assets	4775.490	5021.518	648.483
	Loans & Advances	3923.339	4595.179	3969.342
Total Current Assets		13984.262	16614.209	15942.060
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	7974.893	9865.217	5511.600
	Other Current Liabilities			3036.785
	Gross amount due to customers for project related contract work	0.000	0.000	708.009
	Provisions	609.173	722.287	743.605
Total Current Liabilities		8584.066	10587.504	9999.999
Net Current Assets		5400.196	6026.705	5942.061
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		10765.053	10697.022	10785.673

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	17818.761	19468.850	20178.370
		Other Income	462.787	128.512	479.471
		TOTAL (A)	18281.548	19597.362	20657.841
Less	EXPENSES
		Cost of Material Consumed	8104.180	8859.198	14986.907
		Purchase of Stock in Trade	4681.229	4737.340	0.000
		Payments and benefits to employees	1489.683	1351.465	895.284
		Operating and Other Expenses	2854.495	3033.046	2447.688
		Expenses Capitalized	0.000	0.000	(2.057)
		Increase / (Decrease) in Inventories	(124.448)	(165.123)
		TOTAL (B)	17005.139	17815.926	18327.822
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1276.409	1781.436	2330.019
Less	FINANCIAL EXPENSES (D)		634.137	453.082	335.636
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		642.272	1328.354	1994.383
Less/ Add	DEPRECIATION/ AMORTISATION (F)		302.617	300.144	264.767
	PROFIT BEFORE TAX (E-F) (G)		339.655	1028.210	1729.616
Less	TAX (H)		27.769	414.611	554.438
	PROFIT AFTER TAX (G-H) (I)		311.886	613.599	1175.178
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	NA	529.688
Less	APPROPRIATIONS
		Proposed Dividend	NA	NA	436.319
		Additional Tax on Dividend	NA	NA	63.486
		Transfer to General Reserve	NA	NA	300.000
	BALANCE CARRIED TO THE B/S		NA	NA	905.060
	EARNINGS IN FOREIGN CURRENCY
		F.O.B. Value of goods exported	987.173	1510.874	1547.154
		Services rendered/Civil work	165.854	315.730	146.597
		Profit on Sale of Investment	0.000	0.000	224.794
		Other Earnings	6.368	6.622	1.858
	TOTAL EARNINGS		1159.395	1833.226	1920.403
	IMPORTS
		Raw Materials and Components	698.600	1979.700	4998.590
		Capital Goods	30.741	46.297	74.094
	TOTAL IMPORTS		729.341	2025.997	5072.684
	Earnings Per Share (Rs.)		3.93	7.73	14.81

QUARTERLY RESULTS

PARTICULARS	30.06.2012	30.09.2012
Type	1^st Quarter	2^nd Quarter
Net Sales	4421.670	4769.270
Total Expenditure	4135.450	4403.630
PBIDT (Excl OI)	286.220	365.640
Other Income	17.540	31.950
Operating Profit	303.780	397.590
Interest	116.640	118.150
Exceptional Items	0.000	0.000
PBDT	187.140	279.440
Depreciation	74.900	80.660
Profit Before Tax	112.240	198.780
Tax	22.000	51.250
Provisions and contingencies	0.000	0.000
Profit After Tax	90.240	147.530
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	90.240	147.530

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.71	3.13	5.69
Net Profit Margin (PBT/Sales)	(%)	1.91	5.28	8.57
Return on Total Assets (PBT/Total Assets}	(%)	2.02	5.30	9.27
Return on Investment (ROI) (PBT/Networth)		0.05	0.14	0.24
Debt Equity Ratio (Total Liability/Networth)		1.55	1.86	1.92
Current Ratio (Current Asset/Current Liability)		1.63	1.57	1.59

LOCAL AGENCY FURTHER INFORMATION

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	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
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	No
31]	Date of Birth of Proprietor/Partner/Director, if available	No
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

OPERATIONS

The revenue from operations of the company for the current year is at Rs. 17820.000 Millions, which is less by 8.47% compared to the previous year. There have been various internal and external reasons for the reduction in the revenue from operations.

As are aware, Power sector has been their thrust area for past several years. The projects by the Government and private sectors have either been stopped or deferred for various reasons, the prime cause being availability of coal.

On Irrigation side, they continued their wait and watch policy for specified states and planned their revenues in a way that they could recover the amount immediately.

The Distribution business which mainly caters to Domestic and Agricultural segment has improved. During the current year, they expect that the economic situation would more or less remain the same and they would continue their focus but not go faster on the top line growth.

SUBSIDIARY COMPANIES

The company has disposed off its entire stake (100%) in Gondwana Engineers Limited (GEL), specialized in Water and Sewage Treatment Plants, for a total consideration of Rs. 474.400 Millions through execution of a Share Purchase Agreement, during May, 2011. The Company has sold its entire equity stake in GEL to Doshion Veolia Water Solutions Private Limited, a group company of Doshion Limited, Ahmedabad.

During the period, the Company has subscribed to the Equity Shares in its wholly owned subsidiary viz. Hematic Motors Private Limited, at the aggregate cost of Rs. 300.000 Millions and to Redeemable Preference Shares in its other wholly owned subsidiary company viz. Kirloskar Constructions and Engineers Limited to the tune of Rs. 250.000 Millions.

During September, 2011, the Company through its wholly owned subsidiary in The Netherlands – Kirloskar Brothers International BV, established SPP Pumps (MENA) LLC in Cairo, Egypt. This limited liability company is established for Middle East and North Africa for assembly, packaging the pumps and the pumping systems of all kinds including their testing and maintenance.

The performance of the domestic and overseas subsidiary companies has been good, except in respect of one subsidiary company. The company is in the process of aligning the operations of its subsidiary companies.

NEW MANFACTURING UNITS

A new plant at Kaniyur Village, Karumathampatti - PO near Coimbatore for small domestic pumps has commenced its production since end June, 2011. This new plant is spread over six acres with installed capacity of a 5 lac pumps a year. The initial investment in the unit is of about Rs. 140.000 Millions and has state-of-the-art plant and machinery to manufacture different models of domestic pumps. It is worth to mention that 90% of the work force in this plant are women. This plant will strengthen company's distribution network in Southern India.

The Company has also set up new manufacturing units at Charodi Village, Sanand, Ahmedabad for the production of Submersible Pumps. The plant has commenced its test run.

The new plant is equipped with modern plant and machinery. The unit has some additional features such as formation of suppliers cluster, lean manufacturing process and so on. With this, the products would be competitive in cost and quality.

The production at the unit is expected to commence during current year. This will help the Company to cater to the increasing market demand for the products.

MANAGEMENT DISCUSSION AND ANALYSIS

WORLD ECONOMY:

The International Monetary Fund (IMF) estimates the world economy to grow by 3.3% in 2012. It also estimates a decline in commodity prices in 2012 on account of bigger harvests of lood crops and slower economic growth. Global oil prices are expected to ease slightly in 2012 despite slowing world growth. Global inflation is also expected to ease in 2012. The global recovery is threatened by intensifying strains in Europe and economic challenges elsewhere. The current environment is characterized by fragile financial systems, high public deficits and debt, and interest rates close to the zero bound. In 2012, growth in emerging and developing economies is expected to be average of 5.75%. Developing Asia is projected to grow most rapidly at 6.5% on average in 2012, The impact of the global slow down on Sub - Saharan Africa has to date been limited to a few countries and the regions output is expected to expand by around 5.5% in 2012. The reason for this could be strong domestic demand and relatively weak trade and financial linkages with the European economies. Economic activity in the Middle East and North Africa is expected to accelerate in 2012. Driven mainly by the recovery in Libya and the continued strong performance of other oil exporters. Economic activity in advanced economies is expected to expand by 1.5% on average in 2012.

INDIAN ECONOMY:

In 2011, the Indian economy has grown by around 7.5%, but IMF has lowered the economic growth rate forecasts for 2012 to 7%. USA and Western European countries are the major trading partners of India. These countries are adversely affected by the debt crisis and euro area crisis, thus affecting the demand for Indian goods. In 2011, India`s nominal Gross Domestic Product was around S1.9 trillion while GDP by Purchasing Power Parity was around S4.5 trillion. Inflation had touched 10% much higher than the Reserve Bank of India`s comfort zone of 5 to 6%. In its bid to tame inflation, the Reserve Bank of India (RBI) hiked key interest rates more than 12 times since March 2010. As per the RBI forecast, inflation is expected to ease to 7% in 2012, but this may be at the cost of economic growth. Consistent hike in the interest rates has made the cost of borrowing high, which has resulted into reduction in the industrial output due to the reduction in demand for goods.

The overall economic situation remains quite challenging on the account of high inflation and revenue deficits. The forecasted higher borrowings of the government may limit the reduction in interest rates. Higher interest rates may affect private investments on account of tighter liquidity situation.
 
The advantage with the Indian economy is that more than half of the labour force by occupation is in agriculture. This means that a large population resides in rural India and has unmet needs which may drive the domestic demand.
 
GLOBAL PUMP MARKET OUTLOOK:
 
The global market for fluid handling pumps is forecast to be around S47 billion in 2012. Asia and Pacific region constitutes the largest demand for the fluid handling pumps. Latin America, Africa and the Middle East will also register growth above the world average, but this will be less than the gain expected in parts of Asia. Population growth and improved standards of living in the Middle East have greatly increased the demand for water and sanitation services, along with the need for more water for agricultural purposes. Prospects are favorable in Eastern Europe where manufacturing output is expected to post handsome gains. Pump markets In the USA and Western Europe will register gains. Centrifugal pumps will continue to be the commonly used type due to their varied pressure and load handling capabilities including the ability to handle liquids with high solid content and relatively low maintenance costs.
 
The factors affecting the pump industry are:
 
· Process industries will be the fastest growing pump market. Pump manufacturing companies have started coming up with standardized product ranges to target process and chemical industry requirements.
 
· The utilities market is also expected to record impressive growth, as spending on water transportation network and construction expands rapidly in many industrializing nations.
 
· More stringent environmental regulations will help generate demand for more efficient and better performing fluid handling pumps, such as seal-less centrifugal models.
 
· Energy crisis all over world has compelled Pump manufacturers to develop energy efficient pumps and systems.
 
· The growing popularity of application specific pumps and a favorable waterworks construction outlook will increase demand for specialty pumps.
 
· Increasing urbanization in growing economies is expected to attract investments to improve the availability of drinking water and sanitation. These investments are expected to enhance the growth prospects of pump types such as submersible, and single and multi-stage radial flow pumps.
 
· Among the various applications for pumps in the water and wastewater industry, investment in the treatment of brackish water through reverse osmosis is gaining prominence.
 
 
· The global pump-set market is forecasted to grow at an annual rate of around 6%.
 
INDIAN PUMP INDUSTRY:

The Indian pump industry has contributed significantly to the nation`s economy. It meets 95% of the domestic demand, since imports are not very significant in quantity terms. Customers seek to defer import of substitutes due to the cost-effectiveness of Indian pumps and better guarantee of support with respect to after-sales service. Almost all types of pumps, manufactured internationally, are also made in India. Most of the world-renowned technologies are available in the country. Amongst the notable achievements of Research and Development in India are the primary coolant pumps for nuclear power plant, large 2250 mm delivery-size vertical turbine pumps and concrete volute pumps for cooling water circulation in thermal and nuclear power generation. Indian manufacturers have also competently evolved motor designs to work against vagaries of power-supply. The pump industry has benefited from the Bureau of Indian Standard`s 42 specifications for indigenous pumps. No other country has set specific norms for minimum efficiency for pumps. Agriculture sector uses 80% of the water in the country. With the scarcity of the resources like water and electricity in the country, there is need to bring in the norm which encourages the purchases of efficient pump and pumping systems. India currently has 17.3% of the world population. However, its pump business is just 1.75% of the global pump business. The gap is huge with good scope for business expansion. The Indian pump-set market is forecasted to grow at an annual rate of around 7%. Pump industry needs to invest in research and development to cater to the upcoming opportunities.
 
 
 
SUSTAINABILITY AND GROWTH INITIATIVE:
 
The company has released its second sustainability report for the year 2010-11. This report is as per the Global Reporting Initiatives (GRI) G3 guidelines. The report is externally assured and is declared at level An*as per GRI-G3 guidelines. The report is also reviewed for compliance to Accountability standard of AA1000AS. The report provides details on economic, environmental and social parameters.
 
They have improved the monitoring and reporting of direct and indirect Green House Gas (GHG) emissions due to their business operations and have initiated steps to reduce them. They have developed an extensive network of suppliers and contractors who produce products and services for their company. They have decided to educate their suppliers to ensure compliances to human rights issues like prevention of child labor and provide a safe working environment to all people associated with our business activities. The company organizes safety audits and safety training at its sites, factories and offices to further strengthen safety systems. Corporate Safety Committee reviews safety performances periodically to ensure an injury free work place. They plan to expand the scope of our sustainability report for the reporting period 2012-13.

MARKETING SECTORS:
 
WATER RESOURCE MANAGEMENT:
 
The Government of India is giving a major thrust to improve water supply and sanitation facilities through JNNURM (Jawaharlal Nehru National Urban Renewal Mission) Phase II and UIDSSMT (Urban Infrastructure Development Scheme for Small and Medium Towns Schemes). Due to environmental concerns. Government is also giving priority to sewage and effluent facilities across India with a major thrust for recycling and water reuse to overcome water shortage. Government is also placing emphasis on revamping old pumping systems so as to conserve energy by using latest energy efficient technology and products like Lowest Life-Cycle Cost pumps.
 
Some of the projects commissioned during year 2011-12 include:-
 
* 125 Million Litres Daily (MLD) Water treatment plant for the Coimbatore Municipal Corporation.
 
* Delhi Jal Board`s Jeevan Park and Burari pumping stations.
 
* Sewage pumping stations of Sabarmati River Front Development Corporation.
 
* A new suburban pumping station of the Ahmedabad Municipal Corporation with 100 Million Litres Daily (MLD) capacity for sewerage treatment.
 
* Water supply schemes for Kerala Water Authority (KWA) at Cherthala. Kolkata Metropolitan Water and Sanitation Authority (KMWSA) Uluberia, Orissa Water Supply and Sewerage Board (OWSSB) Puri and Karnataka Urban Water Supply and Drainage Board (KUWS and DB> Madhugiri and Dharwad.
 
20 PROJECTS WERE COMPLETED IN THE YEAR:
 
They have received a pumping machinery contract from the Public Works Department, Goa through SMC Infrastructures Private Limited-SPML Joint Venture. They have secured plant water supply orders from Tata Steel, Kalingnagar and Steel Authority of India Limited, Bolani respectively. The sector made its foray in the Desalination space by bagging first desalination pump order from Al Arar Gulf.
 
IRRIGATION:
 
This business sector provides fluid handling solutions for lift irrigation schemes globally. Concept to commissioning is forte of the sector in the project sphere. With the strong knowledge of the techno-economical solution for pumping systems and prequalification for major requirements, the sector has good prospects and holds a strong market position. Government plans to give a major thrust in the 12th plan to the irrigation schemes to enhance food security and curtail inflation. They have commissioned numerous lift irrigation schemes in India as well as in countries like Egypt and Laos.
 
Some of the prestigious projects commissioned during year 2011-12 include:-
 
* Upper Manar. Wakurde, Sonpur Tomta, Ainapur and Savalgi lift irrigation schemes.
 
* Prestigious international projects such as Benban project in Egypt and a lift irrigation project in Lao PDR
 
POWER:
 
Subject has been successful in providing total solution and system engineering to the Indian power industry. They are successful in adding new approvals from prestigious global consultants and engineering procurement companies like Toshiba and Flour Daniel, USA. Their leadership position in Indian market is further strengthened by developing a new series of condensate extraction packages. Their hydro business offers solutions for turnkey projects on a "Concept to Commissioning" framework. This year they  have commenced hydro power plants generating power equivalent to 240.000 certified emission reductions (CER).
 
Some of the prestigious orders commissioned during year 2011-12 include:-
 
* World`s largest cooling water system for 5 x 800 MW Coastal Gujarat Power Limited, Mundra with a capacity of 176388 liters of sea water per second.
 
* Cooling water (CW) system on turnkey basis.
 
* 2 X 500 MW Unit III Simhadri Super Thermal Power Project of NTPC.
 
* 1 X 500 MW Unit III NTPC Farakka.
 
* Their first indigenous concrete volute pump with capacity of 40.000 m`/hr commissioned for 2 x 600 MW Salaya Thermal power project of Essar Power.
 
* Vertical Kaplan 1 x 3.6 Megawatt at Zho Suwei Hydropower, Taiwan.
 
They have received new orders from BGR Energy and Larsen and Toubro taking their total tally of concrete volute pumps to 175 sets. They have also received a new order for 2 x 520 MW Vizag thermal power project of Hinduja Power Limited.
 
The secondary heat transfer pump was developed indigenously for 1 X 500 MW prototypes Fast Breeder Reactor located at Bhavini, Kalpakkam.
 
Some of the prestigious international orders commissioned during year 2011-12 include:-
 
* Circulating water pumps for 2 X 800 MW Prairie State Energy Campus, Illinois USA for Bechtel Power Corporation.
 
* Miscellaneous pump package for 477 MW Novai combined cycle power plant at Uzbekistan for Calik Enerji, Turkey.
 
* Cooling water pumps for Delimara Power Station at Malta for Burmeister and Wain Scandinavian Contractor (BWSC), Denmark.
 
INDUSTRY:
 
The Industry sector`s focus on process pumps and Lowest Life-Cycle Cost pumps yielded good business. The booking of process pumps grew by 20% and LLC by 15% in quantity terms. They took initiatives to establish their selves as a reliable non-API process pump manufacturer in the market. They have received approvals from prestigious original equipment manufacturers and consultants like Siemens, Uhde. Aker Solutions, Mecon, AvantGarde, Linde, Encon Boilers, Thermax Heating and Cooling Division, Praj and others. Technical seminars and presentations were made to create awareness about their offerings and best practices. Two new process pump  models were launched. They have executed export orders from Japan Gas Corporation (Japan). SNC Lavalin (Canada) and Danieli (Italy).
 
GAS, OIL AND DEFENSE:
 
In the current year Oil and Gas and Marine and Defense business sectors were merged into one entity and renamed as Gas Oil and Defense sector.
 
Notable orders received are:-
 
* Turnkey order from ITD Cementation for the wet basin built at Garden Reach and impounding pump house for Mazagaon Docks Limited.
 
* A major break-through order for cooling water pumps received from Linde. Germany for their Map Ta Phut 3 project in Thailand.
 
* Indian Oil Corporation Limited. Paradip for Fire-fighting Vertical Turbine pumps with all Super Duplex Stainless steel.
 
* Repeat order from Royal Dutch Shell PLC for LLC vertical turbine pump-set.
 
The efforts and the initiatives taken by the sector on the marketing, sales and execution front have started yielding benefits.
 
BUILDING AND CONSTRUCTION:
 
Subject provides differentiating solutions to traditional offerings and addresses the customer needs. The replacement of standard split-case pumps by multi stage multi outlet pumps (for high rise buildings) for fire 
application bore rich dividends. Sustainable energy efficient solutions for HVAC systems are offered with total package solution under one roof with reliable service back-up across India.
 
They received approvals for the Hydro-Pneumatic Systems from major Plumbing consultants in India.
 
Fire-fighting packages contributed a good portion of their total fire business in value terms. They were successful in receiving orders from the prestigious customers like Bangalore Metro. Kolkata Airport. Godrej Group, Tata Group and others.
 
 
DOMESTIC AND AGRICULTURE:
 
The business segment focused on 3 aspects for increasing its markets share:
 
* Operational efficiency
* Customer and Dealer intimacy
* New product development
 
An action plan was launched for deepening and widening their footprint so that they can take advantage of the emerging business opportunities. New channel partners contributed 20% in the overall business and proved to be more profitable.
 
The Dealer intimacy program launched to recognize performing channel partners. More than 400 top performing dealers are registered under this initiative. More than 1000 industrial customers were contacted through seminars and planned visits.
 
The spotlight on new product development led to a new range of bore well submersibtes. Several marketing initiatives for the new products were undertaken with success. Dual voltage pump sets were successfully launched. New products contributed around 24% of the total sales.
 
They conducted a large number of Energy Audits and emerged as one of the premium brands. Their solar business received approval from the Ministry of New and Renewable Energy (MNRE) as a channel partner for disbursement of subsidy. The International Electro-technical Commission standard of IEC 61683 approvals was granted to their controller used in the solar pumping system. The technological progress in solar pumping system was evident in the commissioning of India`s largest solar pump at Patna in the state of Bihar with no battery system. The measure has helped to reduce the cost of solar pumping system.
 
 
CUSTOMER SERVICE AND SPARES:
 
They undertook various initiatives for enhancing customer satisfaction and to improve organizational effectiveness for quick and effective resolution of customer issues. They plan to have a dedicated warehouse for spares at 
Kirloskarvadi for the Small and Medium Pumps Division to improve market response. A Memorandum of Understanding for Kirloskar Refurbishment Centre (KRC) was signed with dealers at Kolkata and Baroda.
 
KIRLOSKARVADI:
 
Kirloskarvadi factory integrated its environment, health and safety management system with sustainability reporting guidelines and the "CII-Code for ecologically sustainable business growth". This was certified to ISO: 14001 and OHSAS: 18001 in January 2012.
 
Kirloskarvadi factory received the "Energy Efficient Unit Award" from CII for Excellence in Energy Management-2011 and factory also received First prize at the 6th State level Energy Conservation in General Category from Maharashtra Energy Development Agency (MEDA). During the  year, Kirloskarvadi plant filed 2 patents (under scrutiny) for innovation.
 
They have initiated the process of revamping manufacturing layouts to synchronize material flow and improve productivity. Tools and techniques like Multi machine. Low cost automation, 5S- Housekeeping, Single Piece flow and KANBAN to name a few were utilized to improve operator engagement. Improvements in shop-floor layouts of small and medium pumps were completed. This has resulted in improved productivity. They have revamped the painting and packaging process to meet the international customer expectations.
 
DEWAS AND SHIRWAL:
 
Dewas and Shirwal factories have taken path of continuous improvement through lean practices, sustainability and innovation. Motor manufacturing has been shifted to their subsidiary Hematic Motors. Achievement in 
availability of the equipment and machines in manufacturing shop was at an impressive 99.2%. Projects based on lean manufacturing concepts were initiated. Several initiatives on sustainability front were taken and 100% of the waste water is now recycled and reused for gardening purpose.
 
Their dedicated captive foundry is fully mechanized and upgraded to achieve high manpower productivity, conducive and safe work culture and friendly environment. Availability of equipment and machines in Foundry shop is 97.3%. their foundry received the prestigious "Regional Productivity Championship Award" in October 2011 on account of the continuous improvement on Key Performance Indicators.
 
A radical path was undertaken by Oewas factory to reduce material cost. A dedicated cross functional team is working to achieve savings targeted in the material cost. A host of new products were developed by the Dewas and Shirwal factory to address the demands of Domestic. Agriculture and 
Industrial segments:-
 
 
* 5 Star rated series in 6 inch submersible.
 
* 6 inch and 8 inch submersible motor design suitable for low voltage requirement.
 
* Dual voltage mono-bloc pump sets which will be operated through dual voltage controller to address the voltage fluctuations at various geographical locations.
 
COIMBATORE:
 
A new plant at Coimbatore has been successfully commissioned for manufacturing mini pumps and production capacity has been ramped up to 20.000 pumps per month. Trial production has started at Ahmedabad plant for manufacturing bore-well submersible pumps in March 2012.
 
KONDHAPURI:
 
Investments were made to upgrade their Kondhapuri factory to gain from opportunities present in the market for valves and accessories. Sales improved over the previous year with execution of significant orders from prestigious customers like National Thermal Power Corporation and Jindal Steel. The plant has received vendor approval from FLUOR. USA and FM approval certification for gate valves.
 
Capacity enhancements to address demand were completed. Under the new product development program, manufacturing and testing were completed for 2.7 and 2.5 meters butterfly valve and 1.3 meter sluice valve. The plant made a significant contribution towards energy conservation and has received energy conservation award in Kirloskar group as well as at the state level.
 
RESEARCH, DEVELOPMENT AND ENGINEERING:
 
Efforts were taken to replace old products by new innovative products. A new series (or Condensate Extraction pumps was designed and developed. Emphasis was placed on the development of special products meant for nuclear applications. In line with their mission, they have developed energy efficient products with sustainable energy savings. This year, new pumps were developed in Lowest Life-Cycle Cost (LLC) range. For the domestic and agricultural sectors, 41 pump models in 5 Star rating from Bureau of Energy Efficiency were released.
 
Large size high pressure butterfly valves were developed to meet the requirement of water supply schemes. High pressure sluice valves and multi door non-return valves were developed for their customers in the water 
Large size high pressure butterfly valves were developed to meet the requirement of water supply schemes. High pressure sluice valves and multi door non-return valves were developed for their customers in the water 
sector.
 
GLOBAL MARKETING:
 
The marketing department undertook several activities as a part of its drive for better customer relations and reach. These activities included the organization of an international conclave, domestic exhibitions and technical seminars. The communication department successfully launched a new company website. The usage of information technology tools like webinar capsules, audio-visual presentations and eBook were optimized for cost effectiveness and reach.
 
Customer perception surveys were conducted in India to assess the level of customer satisfaction with KBL`s offerings. They have also completed market research surveys for pumps with applications in steel and other process industries.

FINANCIAL PERFORMANCE:
 
Total sales are at Rs. 17820.000 Millions as against Rs. 19470.000 Millions during previous year.
 
* Except Irrigation, Water and Power sectors, all other sectors have achieved their sales targets.
 
* Distribution sector crossed a significant milestone of Rs. 5000.000 Millions sale.
 
* Emphasis continues on reducing debtors.
 
* They continued to be selective with orders and execution to improve the sales mix, which resulted in share of own product sales to total sales going up to 58% as against 51% in the previous year.
 
* Composite material cost as % to sales has increased to 71.6% in current year from 69.3% in previous year, mainly due to increase in input costs for foundry and shift in sales mix towards small and medium pumps from large engineered pumps (where material content is lower).
 
Total expenditure including Employee Related Expenses and Depreciation is Rs. 5280.000 Millions as against Rs. 5140.000 Millions in previous year.
 
* In the current year, increase in expenditure is mainly due to ERE of Rs.140.000 Millions and Kirloskar Constructions Engineers Limited claims receivable written off/provided - Rs. 630.000 Millions.
 
* Due to pressure on working capital throughout the year as well as rise in interest rates, finance costs have increased to Rs. 630.000 Millions from Rs. 450.000 Millions in previous year
 
* PBT is at Rs. 340.000 Millions as against Rs. 1030.000 Millions in previous year - reduction is primarily due to the KCEL claims receivable written-off/provided, compensated to a certain extent by profit on sale of Gondwana Engineers Limited.
 
The Gross Current Assets and Net Current Assets have decreased by 16% and 10% over the previous year due to their thrust on improving the quality of the Balance Sheet through improved recovery and working capital reduction.
 

STATEMENT OF STANDALONE UNAUDITED RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30.09.2012

Rs. In Millions

Sr.No.		Particulars	Quarter Ended		Half Year Ended
			30.09.2012 Unaudited	30.06.2012 Unaudited	30.09.2012 Unaudited
1.		Income from operations
		(a) Net Sales / Income from Operations (Net of excise duty)	4730.879	4387.561	9118.440
		(b) Other Operating Income	38.388	34.112	72.500
		Total income from operations (net)	4769.267	4421.673	9190.940
2.		Expenses
		a. Cost of materials consumed	2386.676	2065.810	4452.486
		b. Purchases of stock-in-trade	938.942	1080.173	2019.115
		c. Changes in inventories of finished goods, work-in-progress & stock-in-trade	119.984	(95.502)	24.482
		d. Employee benefits expense	398.845	3542.46	753.091
		e. Depreciation and amortization expense	80.661	74.900	155.561
		f. Other Expenses	559.183	730.715	1289.898
		Total expenses	4484.291	4210.342	8694.633
3.		Profit / (Loss) from Operation before Other Income, finance costs and exceptional items (1-2)	284.976	211.331	496.307
4.		Other Income	31.950	17.540	49.490
5.		Profit / (Loss) from ordinary activities before finance costs and exceptional items (3+4)	316.926	228.871	545.797
6.		Finance costs	118.150	116.636	234.786
7.		Profit / (Loss) from ordinary activities after ffeiance cost but before exceptional Items (5-6)	198.776	112.235	311.011
8.		Exceptional Items	-	-	-
9.		Profit / (Loss) from ordinary activities before tax (7-8)	198.776	112.235	311.011
10.		Tax Expense	51.247	22.000	73.247
11.		Net Profit / (Loss) From ordinary activities after tax (9-10)	147.529	90.235	237.764
12.		Extraordinary Items (net of tax expenses)		_	_
13.		Net Profit / (Loss) for the period (11-12)	147.529	90.235	237.764
14.		Paid-Up Equity Share Capital (Face value of Rs.2/- each)	158.717	158.679	158.717
15.		Reserves excluding Revaluation Reserves as per Balance Sheet of previous accounting year
16.1		Earnings Per Share (before extraordinary items) (of Rs. 2/- each) (Not Annualised) - (Rs.)
		Basic	1.86	1.14	3.00
		Diluted	1.86	1.14	3.00
16.11		Earnings Per Share (after extraordinary Items) (of ? 21- each) (Not Annualised) - (Rs.)
		Basic	1.86	1.14	3.00
		Diluted	1.86	1.14	3.00
A	PARTICULARS OF SHAREHOLDING
1.	Public Shareholding
	- Number of Shares		29,229,591	29,245,853	29,229,591
	- Percentage of Shareholding		36.83	36.86	36.83
2.	Promoters and promoter group shareholding
	a) Pledged / Encumbered
	- Number of shares		-	-	-
	- Percentage of Shares (as a % of the total shareholding of promoter and promoter group)		-	-	-
	- Percentage of Shares (as a % of the total share capital of the company)		-	-	-
	b) Non-encumbered
	- Number of shares		50,128,860	50,093,848	50,128,860
	- Percentage of Shares (as a % of the total shareholding of promoter and promoter group)		100.00	100.00	100.00
	- Percentage of Shares (as a % of the total share capital of the company)		63.17	63.14	63.17
B	INVESTOR COMPLAINTS
	Pending at the beginning of the quarter		0
	Received during the quarter		0
	Disposed during the quarter		0
	Remaining unresolved at the end of the quarter		0

STANDALONE SEGMENT-WISE REVENUE, RESULTS AND CAPITAL EMPLOYED UNDER

Rs. In Millions

Sr.	Particulars	Quarter Ended		Half Year Ended
No.		30.09.2012	30.06.2012	30.09.2012
1.	Segment Revenue
	a. Pumps	4580.064	4213.076	8793.140
	b. Others	223.951	209.695	433.646
	Total	4804.015	4422.771	9226.786
	Less : Inter segment revenue	73.136	35.210	108.346
	Net Sales / Income from operations	4730.879	4387.561	9118.440
2.	Segment Results Profit before tax & finance costs from each segment
	a. Pumps	298.506	430.481	728.987
	b. Others	52.995	52.006	105.001
	Total	351.501	482.487	833.988
	Less: i. Finance Cost	118.150	116.636	234.786
	ii. Other un-allocable expenditure net of un-allocable income	34.575	253.616	288.191
	Total Profit / (Loss) Before Tax	198.776	112.235	311.011
3.	Capital Employed
	(Segment Assets - Segment Liabilities)
	a. Pumps	6547.216	6519.250	6547.216
	b. Others	334.766	290.531	334.766
	c. Unallocated Corporate Assets	4435.348	4209.536	4435.348
	Total	11317.330	11019.317	11317.330

STANDALONE STATEMENT OF ASSETS AND LIABILITIES

Rs. In Millions

Sr. No.	Particulars	Half Year Ended 30.09.2012 Unaudited
A	EQUITY AND LIABILITIES
1.	Shareholders' funds
	a) Share Capital	158.717
	b) Reserves and surplus	7615.135
	c) Money received against share warrants	-
	Sub-total - Shareholders' funds	7773.853
2.	Share application money pending allotment	-
3.	Non-current liabilities
	a) Long-term borrowings	462.580
	b) Deferred tax liabilities (net)	-
	c) Other long term liabilities	986.561
	d) Long-term provisions	159.524
	Sub-total - Non-current liabilities	1608.665
4.	Current liabilities
	a) Short-term borrowings	2807.696
	b) Trade payables	4020.975
	c) Other current liabilities	3033.532
	d) Short-term provisions	420.508
	Sub-total - Current liabilities	10282.711
	TOTAL - EQUITY AND LIABILITIES	19665.229
B	ASSETS
1.	Non-current Assets
	a) Fixed assets	3186.984
	b) Non-current investments	2354.375
	c) Deferred tax assets (net)	15.748
	d) Long-term loans and advances	1452.977
	e) Other non-current assets	909.712
	Sub-total - Non-current assets	7919.796
2.	Current assets
	a) Current investments	--
	b) Inventories	2018.480
	c) Trade receivables	3683.628
	d) Cash and bank balances	203.257
	e) Short-term loans and advances	2042.254
	f) Other current assets	3797.814
	Sub-total - Current assets	11745.433
	TOTAL - ASSETS	19665.229

Notes:

1. The above results have been reviewed by the Audit Committee and approved by the Board of Directors at their respective meetings held on October 18, 2012.

2. The limited review of the financial results for the quarter ended September 30, 2012, pursuant to Clause 41 of the listing agreement, has been carried out by statutory auditors.

3. Profit before tax for the half year ended September 30, 2011 includes profit of Rs.350.600 Millions on sales of investment in Gondwana Engineers Limited.

4. Figures related to Equity Share Capital, Earnings per share and public and promoters shareholdings are after issue of shares under ESOS.

5. Figures have been regrouped wherever necessary.

UNSECURED LOAN

Particular	Rs. In Millions 31.03.2012	Rs. In Millions 31.03.2011
From others
(a) Interest free loan under sales tax deferral scheme	54.431	54.431
Terms of loan: 2.579 Millions to be repaid in 5 equal yearly installments of 0.516 Million starting from March 2010 and 52.883 Millions to be repaid in 9 yearly installments starting from April 2013.
(b) Foreign currency short term loans and advances from banks
(i) Citibank N.A. - PCFC	0.000	224.100
(ii) Citibank N.A. - FCNRB	879.122	744.931
(c) Rupee short term loans and advances from banks
(i) Credit Agricole Corporate and Investment Bank	0.000	400.000
(ii) Bank of India	201.868	400.000
Total	1135.421	1823.462

FIXED ASSETS

· Lands Free/ Lease Hold

· Buildings

· Railway Siding

· Plant and Machinery

· Furniture and Fittings

· Vehicles

WEBSITE DETAILS

PRESS RELEASE

Kirloskar Brothers acquires ASME Certificates of Authorisation

'N' &' NPT'

India's first and only Pump Manufacturer to acquire prestigious certification from ASME,

USA.

Pune, 30 November 2012: Kirloskar Brothers Limited (KBL), a leading global fluid management company, received the N and NPT Certificates of Authorisation from the American Society of Mechanical Engineers (ASME), USA for pumps to be manufactured at the Kirloskarvadi plant. KBL is the first Indian pump manufacturing company and among the world's top companies to acquire the N and NPT certification.

KBL is the flagship company of the $ 2.1 billion Kirloskar group. KBL is a global fluid management solutions provider and the largest manufacturer and exporter of centrifugal pumps and valves from India. The core businesses of KBL are large infrastructure projects (Power Projects, Water Supply, and Irrigation), Standard and Engineered Pumps for various applications in industries, power plants, Agriculture, Water and Waste Water , Oil and Gas, Marine and Defence, Building and Construction and Domestic and Agricultural. KBL also manufacture Valves, Motors and Hydro turbines.

N, NPT certification is mandatory for Nuclear Business in USA, Canada and other Western Countries. Also, these certifications are the Pre-Qualification criteria for Nuclear Business in Europe and other developed countries. 'N' Certificate authorises KBL the construction of Class 1, 2 and 3 pumps and 'NPT' Certificate authorises the fabrication required of class 1, 2 and 3 equipment without design responsibility. Under the Material Organisation (MO) certification, KBL is also authorised to manufacture and supply castings in ferrous and non-ferrous material to international players in the nuclear industries.

Mr. Jayant Sapre, Director, Kirloskar Brothers Limited said, "We are delighted to be India's first and only pump manufacturer to acquire a prestigious certification N and NPT by ASME, USA. We at KBL are confident that this certification will help us to strengthen our position in India as well as in the overseas market. This certification is a yet another milestone for KBL and the credit goes to our team for their meticulous efforts."

ASME is one of the oldest standards-developing organisations in the world. ASME codes and standards are respected and followed all over the world and certification by ASME is symbol of pride. Post an in-depth survey of quality system and evaluation of stringent quality requirements in accordance with

ASME codes, KBL has received this prestigious N and NPT Certification.

The increased awareness of clean energy as well as rising demand of power to meet the rapid growth of economy, a total paradigm shift towards Nuclear Energy is visible. As per the long term plan set by Government of India, the Nuclear Power is expected to reach a total gross capacity of 63,000 MW by 2032 stage wise. In line with the 123 agreement, the construction of about 28 Light Water Reactors (LWR) and 6 Pressurised Heavy Water Reactors (PHWR) are in the pipeline each of 1000 MW or higher capacity with International co-operation from Russia, France and USA. Each reactor requires numerous critical pumps like Sodium Pump, Canned Motor type moderator Coolant pumps, primary pressurising and shut down cooling pumps. KBL has proven capability to manufacture these pumps and with the expertise gained with N and NPT certification, KBL will be a prominent player to cater future requirements of Nuclear power.

In addition to the latest N and NPT certification, KBL has already proved its capability to design and manufacture pumps to various National and International standard requirements like HIS, NFPA 20, FM/UL, API, ATEX and CE marking. KBL is also ISO 9001, ISO 14001 and OHSAS 18001 certified company.

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. 54.54
UK Pound	1	Rs. 87.69
Euro	1	Rs. 72.85

INFORMATION DETAILS

Report Prepared by :

NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		55

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.