MIRA INFORM REPORT

 

 

Report Date :

08.04.2014

 

 

IDENTIFICATION DETAILS

 

Name :

KALYANI FORGE LIMITED

 

 

Registered Office :

Shangrila Gardens, 1st Floor, ‘C’ Wing, Opposite Bund Garden, Pune – 411 001, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

29.01.1979

 

 

Com. Reg. No.:

11-020959

 

 

Capital Investment / Paid-up Capital :

Rs.36.390 Millions

 

 

CIN No.:

[Company Identification No.]

L28910MH1979PLC020959

 

 

Legal Form :

Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

 

 

Line of Business :

Manufacturer of high-quality hot and warm forged products.

 

 

No. of Employees :

Information declined by the management

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (49)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 4000000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually correct

 

 

Litigation :

Exist

 

 

Comments :

Subject is an established company having satisfactory track record.

 

There appears dip in profitability of the company during financial year 2013.

 

However, general financial position of the company seems to be sound and healthy.

 

Trade relations are fair. Business is active. Payment terms are reported to be usually correct.

 

The company can be considered 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

 

India’s current account deficit for the fiscal third quarter ended September 2013 narrowed to $4.2 billion or 0.9 % of the gross domestic product from $31.9 billion or 6.5 % of GDP a year earlier, thanks to a pick-up in exports and moderation in gold imports. Manufacturing activity and new orders in India showed their strongest growth in a year in February. The news comes as a relief after data showed Asia’s third largest economy grew by a slower-than-expected 4.7 % annually in the three months through December. The HSBC Manufacturing Purchasing Managers’ Index which gauges the business activity of India’s factories but not its’ utilities, rose to 52.5 in February, its highest in a year from 51.4 in January. Overall new orders for factory goods which rose to a one-year high of 54.9 contributed to the surge. China has emerged as India’s biggest trading partner in the current financial year replacing the United Arab Emirates and pushing it to the third spot. India-China trade has reached $49.5 billion with a 8.7 % share in India’s total trade. The US comes second at $46 billion with 8.1 % share during the first nine months of the current financial year.

 

The Reserve Bank of India has granted an additional nine months to the public to exchange currency notes printed before 2005 including Rs 500 and Rs 1,000 denominations, pushing the deadline to January 1, 2015. A day before dates for the Lok Sabha polls were announced, the government decided to hike interest rates on fixed deposit schemes offered by post offices up to 0.2 per cent. The new rates will be effective April, 1. The Supreme Court will resume hearing on March, 11 Nokia’s appeal against a ruling over transferring ownership of its local mobile phones plant which is the subject of a tax dispute to Microsoft Corp.

 

In the last days of the current Government, another scam has surfaced. The defence ministry has ordered a probe into Hindustan Aeronautics Limited’s contracts from Britain’s Rolls-Royce Holdings worth at least $ 1.2 billion. The Central Bureau of Investigation will look into allegations that over $80 million was paid in kickbacks in a deal signed in 2011. India has asked Boeing Co. to find a solution for problems with state-owned Air India’s 787 Dreamliners. The aircraft has experienced a series of malfunctions since its debut in 2011.

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CRISIL

Rating

Long term ratings: A-

Rating Explanation

Adequate degree of safety and low credit risk.

Date

11.11.2013

 

Rating Agency Name

CRISIL

Rating

Short term ratings: A1+

Rating Explanation

Strong degree of safety and low credit risk.

Date

11.11.2013

 

 

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 DECLINED

 

MANAGEMENT NON – COOPERATIVE (91-20-26136446)

 

LOCATIONS

 

Registered Office/ Corporate Office :

Shangrila Gardens, 1st Floor, ‘C’ Wing, Opp. Bund Garden, Pune – 411 001, Maharashtra, India

Tel. No.:

91-2137-252335/252755

Fax No.:

91-2137-252344

E-Mail :

Amogh.barve@kforge.com

Website :

www.kalyaniforge.co.in

 

 

Factory 1:

Hot Forging Division (HFD)

Metal Forms Division (MFD)

 

Koregaon Bhima, Taluka - Shirur, District: Pune – 412216,

 

 

Factory 2:

Precision Autocomp Division (PAD)

 

Gat No. 914/1 and 2, Sanaswadi Taluka - Shirur, District: Pune 412 208, Maharashtra, India

 

 

DIRECTORS

 

As on 31.03.2013

 

Name :

Dr. Neelkanth A. Kalyani

Designation :

Chairman

 

 

Name :

Mrs. Rohini G. Kalyani

Designation:

Vice Chairperson and Managing Director

 

 

Name :

Mr. Viraj G. Kalyani

Designation :

Executive Director

 

 

Name :

Mr. Gaurishankar N. Kalyani

Designation :

Director

 

 

Name :

Mr. A. R. Jamenis

Designation :

Independent Director

 

 

Name :

Mr. Umesh Lahoti

Designation :

Independent Director

 

 

Name :

Mr. Pradip P. Nadkarni

Designation :

Independent Director

 

 

Name :

Mr. C. H. Naniwadekar

Designation :

Independent Director

 

 

Name :

Mr. S. Ravindran

Designation:

Independent Director

 

 

KEY EXECUTIVES

 

Name :

Mr. Nirnoy Sur

Designation :

Company Secretary

 

 

Name :

Mr. Avinash Khare

Designation :

Chief Finance Officer

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.12.2013

 

Category of Shareholders

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

http://www.bseindia.com/include/images/clear.gif(1) Indian

 

 

http://www.bseindia.com/include/images/clear.gifIndividuals / Hindu Undivided Family

142526

3.92

http://www.bseindia.com/include/images/clear.gifBodies Corporate

1988120

54.65

http://www.bseindia.com/include/images/clear.gifSub Total

2130646

58.57

http://www.bseindia.com/include/images/clear.gif(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

2130646

58.57

(B) Public Shareholding

 

 

http://www.bseindia.com/include/images/clear.gif(1) Institutions

 

 

http://www.bseindia.com/include/images/clear.gif(2) Non-Institutions

 

 

http://www.bseindia.com/include/images/clear.gifBodies Corporate

824676

22.67

http://www.bseindia.com/include/images/clear.gifIndividuals

 

 

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital up to Rs. 0.100 Million

398522

10.95

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital in excess of Rs. 0.100 Million

279125

7.67

http://www.bseindia.com/include/images/clear.gifAny Others (Specify)

5031

0.14

http://www.bseindia.com/include/images/clear.gifClearing Members

973

0.03

http://www.bseindia.com/include/images/clear.gifTrusts

100

0.00

http://www.bseindia.com/include/images/clear.gifNon Resident Indians

3958

0.11

http://www.bseindia.com/include/images/clear.gifSub Total

1507354

41.43

Total Public shareholding (B)

1507354

41.43

Total (A)+(B)

3638000

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

0

0.00

http://www.bseindia.com/include/images/clear.gif(1) Promoter and Promoter Group

0

0.00

http://www.bseindia.com/include/images/clear.gif(2) Public

0

0.00

http://www.bseindia.com/include/images/clear.gifSub Total

0

0.00

Total (A)+(B)+(C)

3638000

0.00

 

 

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

 

No.

Name of the Shareholder

No. of Shares held

As a % of grand total (A)+(B)+(C)

 

 

3,77,280

10.37

2

Vakratund Investment Private Limited

3,42,342

9.41

3

Pax Investment Private Limited

3,40,074

9.35

4

Squirrel Financers and Investors Private Limited

1,86,480

5.13

5

Bellona Investment Private Limited

1,73,124

4.76

6

Kalyani Exports and Investment Private Limited

95,600

2.63

7

Attila Investment Private Limited

94,500

2.60

8

Monte carlo Investment Private Limited

94,500

2.60

9

Vikat Investment Private Limited

65,520

1.80

10

Dukhaharta Investment Private Limited

64,260

1.77

11

Sukhakarta Investment Private Limited

64,260

1.77

12

Gaurishankar Neelkanth Kalyani

47,020

1.29

13

Agasti Investment and Trading Private Limited

35,280

0.97

14

Rohini Gaurishankar Kalyan

32,236

0.89

15

Sheetal Garuishankar Kalyani

31,635

0.87

16

Viraj Gaurishankar Kalyani

31,635

0.87

17

Rajgad Trading Company Private Limited

28,200

0.78

18

Aboli Investment Private Limited

26,500

0.73

19

Jannhavi Investment Private Limited

200

0.01

 

Total

21,30,646

58.57

 

(*) The term encumbrance has the same meaning as assigned to it in regulation 28(3) of the SAST Regulations, 2011.

 

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

 

Sl. No.

Name of the Shareholder

No. of Shares held

Shares as % of Total No. of Shares

1

Bhalchandra Investment Limited

349000

9.59

 

2

Jalkumbhi Investments and Finance Limited

181500

4.99

 

3

Amrit Steels Private Limited

128416

3.53

 

4

Vijay Kumar Agarwal

85842

2.36

 

5

Delhi Iron and Steels Company (Private) Limited

72412

1.99

 

6

Jalkamal Investments and Finance Limited

39100

1.07

 

 

Total

856270

23.54

 

 

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

 

Sl. No.

Name(s) of the shareholder(s) and the Persons Acting in Concert (PAC) with them

No. of Shares

Shares as % of Total No. of Shares

1

Bhalchandra Investment Limited

349000

9.59

 

 

Total

349000

9.59

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of high-quality hot and warm forged products.

 

 

GENERAL INFORMATION

 

No. of Employees :

Information declined by the management

 

 

Bankers :

·         State Bank of India,

·         Bank of Maharashtra

·         IDBI Bank Limited

·         Citi Bank NA

·         HDFC Bank Limited

·         Indian Overseas Bank

 

 

Facilities :

Secured Loan

31.03.2013

(Rs. in Millions)

31.03.2012

(Rs. in Millions)

Long-term Borrowings

 

 

State Bank of India

150.804

117.067

Indian Overseas Bank

97.754

35.141

Short-term borrowings

 

 

Cash credit from Bank

199.205

324.514

Short Term Loan-IDBI

48.000

0.000

Packing credit foreign currency loan

32.519

83.000

Total

528.282

559.722

NOTE:

 

Terms of Repayment

 

Term Loan of Rs.120.000 Millions is availed from State Bank of India, IFB, Pune at the rate of interest of 4.50% above base rate.Balance outstanding as on 31 March 2013 is Rs. 82.500 Millions (P.Y. Rs.112.500 Millions). Out of these, amount treated as current maturities of long term debts as on 31 March 2013 is Rs.30.000 Millions (P.Y.Rs.30.000 Millions) This loan is to be repaid in five years starting from November 2011.

 

Term Loan of Rs. 150.021 Millions is availed from State Bank of India, IFB, Pune out of the total sanction limit at the rate of interest of 3% above base rate. Balance outstanding as on 31 March 2013 is Rs.132.768 Millions (P.Y. Rs. 71.767 Millions). Out of these, amount treated as current maturities of long term debts as on 31 March 2013 is Rs. 34.464 Millions (P.Y. Rs.37.200 Millions. This loan is to be repaid in five years starting from October 2012.

 

Term Loan of Rs. 111.719 Millions is availed from Indian Overseas Bank, Karve Road, Branch, Pune out of the total sanction limit at the rate of interest of 2.25% above base rate. Balance outstanding as on 31 March 2013 is Rs. 111.719 Millions (P.Y.Rs 35.141 Millions). Out of this, amount treated as current maturities of long term debts as on 31st March 2013 is Rs. 13.965 Millions (P.Y. NIL). This loan is to be repaid in five years starting from October 2013.

 

Sales Tax Deferral Liability under package scheme of incentive 1988 and 1993 as on 31st March 2013 is of Rs.79.859 Millions (P.Y.Rs.89.0,67 Millions). Out of these, amount treated as current maturities of long term debts as on 31st March 2013 is Rs. 9.484 Millions (P.Y. Rs. 8.581 Millions). This liability for 1988 Scheme is to be repaid within three years and for 1993 Scheme is to be repaid within 7 years.

 

Nature of security

 

For the above Rupee Term Loans, the company has created the first pari passu charge together (both the banks) by way of hypothecation on assets to be acquired out of bank finance as primary security and first pari passu charge by way of hypothecation on the existing fixed assets including land and building situated at Sanaswadi and Koregaon Bhima, Pune as a collateral security.

 

Company’s fund and non fund based working capital facilities of Rs. 764.000 Millions are secured by first charge by way of hypothecation on pari passu basis with existing working capital lenders (State Bank of India, IFB, Pune (Lead Bank), Bank of Maharashtra, Pune and IDBI Bank, Pune) over the company’s entire current assets including stocks, WIP, receivables and finished goods and also the second charge on the whole of the fixed assets of the Company on pari passu basis with consortium working capital lenders.

 

Short term loan of Rs.48.000 Millions is availed from IDBI Pune for 90 days of the total sanctioned limit at the rate of interest of 2.25% above base rate. Balance outstanding as on 31st March 2013 is Rs.48.000 Millions (P.Y. Nil)

 

The packing credit foreign currency loan is availed from Bank of Maharashtra and State Bank of India, Pune at the rate of Interest of 3.5%(the Margin) over fixed USD London Inter-bank Offer Rate i.e. LIBOR.

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

P. G. Bhagwat

Chartered Accountants

Address :

Pune, Maharashtra, India

 

 

Enterprise in which Key Managerial Person is common:

·         Kalyani Consultant Private Limited

 

 

CAPITAL STRUCTURE

 

As on 31.03.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

7500000

Equity Shares

Rs.10/- each

Rs. 75.000 Millions

5000000

Cumulative Redeemable

Preference Shares

Rs.10/- each

Rs. 50.000 Millions

2500000

Unclassified Shares

Rs.10/- each

Rs. 25.000 Millions

 

 

 

 

 

Total

 

Rs. 150.000 Millions

 

Issued share Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

3640000

Equity Shares

Rs.10/- each

Rs. 36.400 Millions

 

Subscribed & fully paid Up Share Capital:

No. of Shares

Type

Value

Amount

 

 

 

 

3638000

Equity Shares

Rs.10/- each

Rs. 36.380 Millions

2000

Forfeited Equity Shares

 

Rs. 0.010 Million

 

 

 

 

 

Total

 

Rs. 36.390 Millions

 

NOTE:

 

Reconciliation of Equity Shares outstanding at the beginning and at the end of the Reporting period

 

Particulars

31st March, 2013

 

No. of Shares

Rs. In Millions

At the beginning of the period

36,38,000

36.380

Issued / Reduction if any during the period

--

--

Outstanding at the end of the period

36,38,000

36.380

 

Terms/Rights attached to the equity shares

 

The Company has only one class of equity shares having par value of Rs. 10/- each. Each equity holder is entitled to one vote per share and have a right to receive dividend as recommended by Board of Directors subject to the necessary approval from the shareholders.

 

The Board of Directors has recommended a dividend of 25% (Rs. 2.50/- per share) for the financial year. 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.

 

Shares held by holding/ultimate holding Company and/or their subsidiaries/associates NIL

 

Number of Shares held by each shareholder holding more than 5% Shares in the company

 

Particulars

31st March, 2013

 

No. of Shares

Rs. In Millions

Kalyani Consultants Private Limited

377280

10.37

Bhalchandra Investments Limited

349000

9.59

Vakratund Investment Private Limited

342342

9.41

Pax Investment Private Limited

340074

9.35

Squirrel Financers and Investors Private Limited

186480

5.13

 

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

 

 

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

36.390

36.390

36.390

(b) Reserves & Surplus

954.315

876.679

753.115

(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)

990.705

913.069

789.505

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

318.933

232.694

201.567

(b) Deferred tax liabilities (Net)

50.371

53.892

57.060

(c) Other long term liabilities

0.000

0.000

0.000

(d) long-term provisions

0.000

0.000

0.000

Total Non-current Liabilities (3)

369.304

286.586

258.627

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

279.725

407.514

513.016

(b) Trade payables

311.028

332.265

427.016

(c) Other current liabilities

199.809

197.050

109.313

(d) Short-term provisions

38.011

32.001

19.973

Total Current Liabilities (4)

828.573

968.830

1069.318

 

 

 

 

TOTAL

2188.582

2168.485

2117.450

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

824.582

814.274

823.055

(ii) Intangible Assets

5.962

1.008

0.000

(iii) Capital work-in-progress

71.720

53.676

69.554

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

0.050

0.050

0.050

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

147.114

68.807

77.169

(e) Other Non-current assets

44.132

31.598

21.187

Total Non-Current Assets

1093.560

969.413

991.015

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

327.058

329.506

315.436

(c) Trade receivables

597.837

625.581

618.620

(d) Cash and cash equivalents

59.043

102.823

31.157

(e) Short-term loans and advances

93.398

93.818

108.766

(f) Other current assets

17.686

47.344

52.456

Total Current Assets

1095.022

1199.072

1126.435

 

 

 

 

TOTAL

2188.582

2168.485

2117.450

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Income

2602.628

2780.657

2358.998

 

 

Other Income

16.067

12.407

37.275

 

 

TOTAL                                     (A)

2618.695

2793.064

2396.273

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of materials consumed

1310.200

1413.306

1262.340

 

 

Changes in inventories of finished goods,

work-in-progress and stock-in-trade

(16.660)

(4.697)

(26.792)

 

 

Employee benefits expenses

236.934

244.243

242.021

 

 

Other expenses

749.256

728.506

632.591

 

 

TOTAL                                     (B)

2279.730

2381.358

2110.160

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

338.965

411.706

286.113

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

73.596

94.352

73.000

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

265.369

317.354

213.113

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

128.114

118.867

111.715

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

137.255

198.487

101.398

 

 

 

 

 

Less

TAX                                                                  (H)

48.979

64.353

36.933

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

88.276

134.134

64.465

 

 

 

 

 

 

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

724.880

614.740

563.630

 

 

 

 

 

 

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

8.830

13.410

4.900

 

 

Proposed Dividend on Equity Capital

9.100

9.100

7.300

 

 

Tax on above Dividend

1.550

1.480

1.180

 

BALANCE CARRIED TO THE B/S

793.690

724.880

614.700

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

FOB Value of Exports

553.072

612.652

507.791

 

TOTAL EARNINGS

553.072

612.652

507.791

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Capital Goods

64.707

24.771

48.538

 

 

Spare Parts/ Lubricants

25.533

17.374

7.364

 

 

Raw Material

0.000

0.353

0.153

 

TOTAL IMPORTS

90.240

42.498

56.055

 

 

 

 

 

 

Earnings Per Share (Rs.)

24.27

36.87

17.72

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)
3.37

4.80

2.69

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
5.27

7.14

4.30

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
6.48

9.39

4.95

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.14

0.22

0.13

 

 
 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 
0.60

0.70

0.91

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
1.32

1.24

1.05

 

 

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

 

DEBT EQUITY RATIO

 

Particular

31.03.2011

31.03.2012

31.03.2013

 

(Rs. In Millions)

(Rs. In Millions)

(Rs. In Millions)

Share Capital

36.390

36.390

36.390

Reserves & Surplus

753.115

876.679

954.315

Net worth

789.505

913.069

990.705

 

 

 

 

long-term borrowings

201.567

232.694

318.933

Short term borrowings

513.016

407.514

279.725

Total borrowings

714.583

640.208

598.658

Debt/Equity ratio

0.905

0.701

0.604

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2011

31.03.2012

31.03.2013

 

(Rs. In Millions)

(Rs. In Millions)

(Rs. In Millions)

Sales

2358.998

2780.657

2602.628

 

 

17.874

(6.402)

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2011

31.03.2012

31.03.2013

 

(Rs. In Millions)

(Rs. In Millions)

(Rs. In Millions)

Sales

2358.998

2780.657

2602.628

Profit

64.465

134.134

88.276

 

2.73%

4.82%

3.39%

 

 

LOCAL AGENCY FURTHER INFORMATION

 

CURRENT MATURITIES OF LONG-TERM DEBT DETAILS:

 

Particulars

31.03.2013

31.03.2012

31.03.2011

 

(Rs. In Millions)

Current maturities of long-term debt

87.913

75.781
16.081

 

 

 

 

Total

87.913

75.781
16.081

 

 

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

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

Yes

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

No

 

LITIGATION DETAILS

CASE DETAILS

BENCH:-BOMBAY

 

 

Presentation Date:-

04/03/2014

 

 

Lodging No.:-

ITXAL/573/2014

Filing Date:-

04/03/2014

Reg. No.:-

ITXA/740/2014

Reg. Date:-

03/04/2014

 

 

 

 

Petitioner:-

THE COMMISSIONERS OF INCOME TAX - I

Respondent:-

KALYANI FORGE LIMITED

 

 

Petn.Adv.:-

VIPUL ARUN BAJPAYEE (I4135)

 

 

 

 

 

 

District:-

PUNE

 

 

 

 

Bench:-

DIVISION

 

 

 

 

Status:-

Pre-Admission

Category:-

TAX APPEALS

 

 

 

Next Date:-

17/04/2014

Stage:-

 

 

 

 

Coram:-

ACCORDING TO SITTING LIST

 

 

 

 

ACCORDING TO SITTING LIST

 

 

 

 

Act :-

Income Tax Act, 1961

Under Section:-

260A

 

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

Economic Scenario and Industry Structure:

 

Indian forging industry has emerged as a major contributor to the manufacturing sector of the Indian Economy. The industry was previously more labour intensive. It is closely estimated that the industry provide employment (direct and indirect) to about 200,000 people. More than around 65% of the companies in the forging industry are smaller in size employ less than 200 people. Now with the increasing globalization, the industry is becoming more capital intensive. The total investment in the large and medium sectors is estimated to be around US $ 700 million. The small scale units too are increasing their capital investment to keep pace with the increasing demand especially in the global markets as also to broaden the areas of demand for forgings. Many of them are now suppliers to Original Equipment Manufacturers (OEMs) in the automobile sector also, which speaks volumes about efforts at technology and quality up gradation.

 

While the automotive industry is the main customer for forgings, Kalyani Forge is in continuous efforts in upgrading technologies and diversifying product range have enabled it to expand our base of customers to foreign markets. The Company is increasingly addressing opportunities arising out of the growing trend among global automotive OEMs to outsource components from manufacturers in low-cost countries. As a result, Indian forging industry has been making significant contributions to country’s growing exports.

 

OUTLOOK:

 

The fortunes of the Company are on a rise - it has consistently recorded a notable increase in production, capacity utilisation and exports. Among the various segments of the forging business, it is the auto-mobilerelated

segment that is being talked about the most these days. The subject fortunes are closely linked to that of the automotive industry, which at the moment, is doing well in the country. The other significant driver for this sector is outsourcing and it is an indication that the industry’s potential is being recognized world over. Global automotive giants are looking at India as a competent supply base and are shopping for their components. Moreover, the Company has been making their mark globally. What is also remarkable is that these companies have even been acquiring companies abroad. In addition to the big players, the industry offers enough opportunities to small and medium size enterprises as well - they form a large part of this industry.

 

Subject has therefore a tremendously bright future. India is definitely emerging as a globally competitive supply base and if companies upgrade their technology levels and modernise themselves, they think there is no limit to that can be achieved in terms of growth.

 

UNSECURED LOAN

 

PARTICULARS

31.03.2013

(Rs. in Millions)

31.03.2012

(Rs. in Millions)

Long-term Borrowings

 

 

Sales Tax Deferral Liability under Package Scheme of Incentives 1988 and 1993.

70.375

80.486

Total

70.375

80.486

 

INDEX OF CHARGES

 

S.NO.

CHARGE ID

DATE OF CHARGE CREATION/MODIFICATION

CHARGE AMOUNT SECURED

CHARGE HOLDER

ADDRESS

SERVICE REQUEST NUMBER (SRN)

1

10299829

13/06/2011

1,674,000,000.00

STATE BANK OF INDIA INDUSTRIAL FINANCE BRANCH LEAD
BANK

2ND FLOOR,TARA CHAMBERS,NEAR MARIAAI POLICECHOWKY,
MUMBAI PUNE HIGHWAY, WAKDEWADI, PUNE, MAHARASHTRA - 411003, INDIA

B17933037

2

10289150

11/05/2011

790,000,000.00

STATE BANK OF INDIA INDUSTRIAL FINANCE BRANCH LEAD
BANK

2ND FLOOR,TARA CHAMBERS,NEAR MARIAAIPOLICECHOWY,MUMBAI PUNE HIGHWAY,WAKDEWADI, PUNE, MAHARASHTRA
- 411003, INDIA

B13861315

3

10258113

16/11/2010

120,000,000.00

STATE BANK OF INDIA INDUSTRIAL FINANCE BRANCH

'TARA CHAMBERS'1ST FLOOR,NEAR MARIAAIPOLICE CHOWKY, MUMBAI PUNE HIGHWAY, WAKDEWADI, PUNE, MAHARASHT
RA - 411003, INDIA

B02491405

4

90087081

29/03/2011 *

764,000,000.00

STATE BANK OF INDIA INDUSTRIAL FINANCE BRANCH

'TARA CHAMBERS'2ND FLOOR,NEAR MARIAAIPOLICECHOWY, PUNE-MUMBAI HIGHWAY, WAKDEWADI, PUNE, MAHARASHTR
A - 411003, INDIA

B10814507

 

* Date of charge modification

 

CONTINGENT LIABILITIES:

 

(Rs. in millions)

PARTICULARS

31.03.2013

 

 

Bills discounting

11.763

Claims against the Company, not acknowledged as debts

6.030

Disputed Income Tax demand, matter under appeal

12.171

Disputed Excise demand, matter under appeal

7.628

In respect of export obligation under EPCG

9.271

Total

46.863

 

STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULT FOR THE QUARTER AND NINE MONTHS ENDED 31ST DECEMBER 2013

 

(Rs. In Millions)

Sr. No.

Particular

Quarter Ended (Unaudited)

Nine Months Ended (Unaudited)

 

 

31.12.2013

30.09.2013

31.12.2013

1

Income from Operations

 

 

 

 

a) Net Sales / Income from Operations (Net of Excise Duty)

478.200

508.900

1536.600

 

b) Other Operating Income

1.500

25.600

38.000

 

Total Income from Operations (Net)

479.700

534.500

1574.600

2

Expenses

 

 

 

a) Cost of materials consumed (including direct project cost)

239.600

273.000

762.100

 

b) Purchase of Stock in trade

--

--

--

 

c) Changes in Inventories of Finished Goods, Work-in-progress and Stock-in-Trade

(2.000)

(17.900)

7.600

 

d) Employee Benefits Expense

50.000

65.300

168.600

 

e) Depreciation and Amortisation Expense

33.700

34.200

101.700

 

f) Other Expenses

149.300

147.500

446.200

 

Total Expenses

470.600

502.100

1486.200

3

Profit / (Loss) from Operations before Other Income, Finance Cost and Exceptional Items (1-2)

9.100

32.400

88.400

4

Other Income

5.600

3.800

15.000

5

Profit / (Loss) before Finance Cost and Exceptional Items (3+4)

14.700

36.200

103.400

6

Finance Costs

8.300

13.900

33.400

7

Profit / (Loss) after Finance cost but before Exceptional Items (5-6)

6.400

22.300

70.000

8

Exceptional Items

--

--

--

9

Profit / (Loss) before Tax (7+8)

6.400

22.300

70.000

10

Tax Expense

2.500

8.200

24.300

11

Net Profit / (Loss) after Tax (9-10)

3.900

14.100

45.700

12

Extraordinary Items (net of tax expense)

--

--

--

13

Net Profit / (Loss) for the Period (11-12)

3.900

14.100

45.700

14

Paid Up Equity Share Capital

(Face Value of the share – Rs. 2/- each)

36.390

36.390

36.390

15

Reserves excluding Revaluation Reserve as per balance sheet of previous accounting year

--

--

--

16

Earnings Per Share (EPS) (in Rs.)

 

 

 

 

a) Basic and Diluted

1.07

3.87

12.57

 

 

SELECT INFORMATION FOR THE QUARTER ENDED DECEMBER 31, 2013

 

Sr. No.

Particular

Quarter Ended (Unaudited)

Nine Months Ended (Unaudited)

 

 

31.12.2013

30.09.2013

31.12.2013

A

PARTICULARS OF SHAREHOLDING

 

 

 

1

Public Shareholding

 

 

 

 

-  Number of Shares

1507354

1507354

1507354

 

-  Percentage of Shareholding

14.43

14.43

14.43

2

Promoters and Promoter Group Shareholding

 

 

 

 

a) Pledged / Encumbered

 

 

 

 

-  Number of Shares

--

--

--

 

-  Percentage of Shares (as a % of total shareholding of promoter and promoter group)

--

--

--

 

-  Percentage of Shares (as a % of total share Capital of the Company)

--

--

--

 

b) Non-Encumbered

 

 

 

 

-  Number of Shares

2130646

2130646

2130646

 

-  Percentage of Shares (as a % of total shareholding of promoter and promoter group)

100.00

100.00

100.00

 

-  Percentage of Shares (as a % of total share Capital of the Company)

58.57

58.57

58.57

 

 

INVESTOR COMPLAINTS

 

PARTICULARS

QUARTER ENDED 31.12.2013

Pending at the beginning of the quarter

Nil

Received during the quarter

Nil

disposed off during the quarter

Nil

Remaining unresolved at the end of the quarter

Nil

 

 

FIXED ASSETS

 

·         Land Freehold

·         Buildings

·         Roads Borewell

·         Plant and Machinery

·         Electrical Installation

·         Factory Equipment

·         Laboratory Equipment

·         Furniture and Fixture

·         Office Equipment

·         Data Processing Equipment

·         Vehicles

·         Power

 

 

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 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.59.95

UK Pound

1

Rs.99.36

Euro

1

Rs.82.15

 

 

INFORMATION DETAILS

 

Information Gathered by :

HTL

 

 

Analysis Done by :

KAR

 

 

Report Prepared by :

KVT

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

4

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

6

--CREDIT LINES

1~10

6

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

YES

--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

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

49

 

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.