MIRA
INFORM REPORT
|
Report Date : |
26.08.2014 |
IDENTIFICATION DETAILS
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Name : |
BHARAT FORGE LIMITED |
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Registered
Office : |
Mundhwa, Pune Cantonment, Pune – 411036, |
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Country : |
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Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
19.06.1961 |
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Com. Reg. No.: |
11-012046 |
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Capital
Investment / Paid-up Capital : |
Rs. 465.680
Millions |
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CIN No.: [Company Identification
No.] |
L25209PN1961PLC012046 |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacturing and
Selling of Forged Components. |
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No. of Employees
: |
4581 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
A (66) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
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 |
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Maximum Credit Limit : |
USD 107700000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and a reputed company having fine track
record. Financial position of the company is sound. Directors are reported to
be experienced and respectable businessmen. Trade relations are reported as
fair. Business is active. Payments are reported to be regular and as per
commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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India |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
N E W S
As per the latest IMF study, the total weigh of emerging markets in the
GDP of the world on a purchasing power parity basis has seen a sizeable shift.
It highlights how as against 51 % in 2005, the emerging economies now account
for close to 56 % of the global purchasing power GDP as per the latest survey.
And with the emerging economies growing at a faster rate than their developed
counterparts, there are every possibility that the their share goes up further
in the coming years. China may surpass the US over the next few years.
Politics and economics are very intricately connected. They tend to
influence each other in ways that could be very complex and far-reaching. The
prospects of the India’s economy have been seriously compromised due to
political corruption. High inflation, poor standard of living are to a great
extent a result of rampant corruption in the country. China on the other hand,
seems to be facing diametrically opposite challenge. American hedge fund
manager Jim Chanos has been keenly following the political and economic
development in the dragon economy and has figured out something that is quite
worrying. He is of the view that the Chinese economy could be heading toward
trouble on account of new Chinese President Xi Jingping’s very aggressive
anti-corruption drive. Chanos believes that many things such as apartment
sales, luxury products, etc. were largely bought with dirty money. And it is
now beginning to impact consumption. This may indeed be bad news for an economy
that is struggling to transition from an investment-driven export-oriented
economy to a domestic consumption-driven economy.
A study published by Firstpost has revealed that asset classes like real
estate and equities were the biggest beneficiaries of the liberalization policies.
A firm called Ciane Analytics studied returns from assets including
equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate
outperformed every other asset classes during the 23-year period with an
annualized return of 20 % ! Equities came in second with annualized return of
15.5 % ! However, while these returns may seem mouthwatering, the fact is that
the return from equities adjusted for inflation came down to just 7.1 %.
Some brief news are as under
. R-Power to buy Jaypee’s hydro assets
. Investors await justice in NSEL case
. India seeks MFN status from Pakistan ahead of meeting
. Ukrain’s clashes with rebels hinder MH17 crash investigation
. India exploring merger of state-owned hydro PSUs
..Higher costs weigh down profit growth to slowest in 9 quarters
..Wal-Mart to expand wholesale business in India
. GMR group moves to strengthen balance sheet
. Central Bank to sell 4 % stake to Life Insurance Corporation
. Tata Chemicals plans to raise up to Rs 10000 mn.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
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Rating |
Non-convertible debenture AA |
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Rating Explanation |
High degree of safety and very low credit
risk. |
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Date |
May 2014 |
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Rating Agency Name |
ICRA |
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Rating |
Commercial paper A1+ |
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Rating Explanation |
Very strong degree of safety and lowest
credit risk. |
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Date |
May 2014 |
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
31-03-2014.
INFORMATION DECLINED
MANAGEMENT NON-COOPERATIVE
(CONTACT NO.: 91-20-26702777)
LOCATIONS
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Registered Office/ Factory 1 : |
Mundhwa, Pune Cantonment, Pune – 411036, Maharashtra, India |
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Tel. No.: |
91-20-26702777/ 26702476/ 26702544/ 67042777 |
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Fax No.: |
91-20-26822163/ 26822387/ 26820699/ 26824778 |
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E-Mail : |
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Website : |
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Capital Goods
Division : |
CS-8-10, 6th Floor, Tower A, The Corenthum Building, A-41, Sector 62, Noida – 201301, Uttar Pradesh, India |
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Tel. No.: |
91-120-4638000 |
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Fax No.: |
91-120-4638099 |
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Factory 2 : |
Gat No. 635, Kuruli Village, Chakan, District Pune – 410501,
Maharashtra, India |
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Factory 3 : |
Opposite Jarandeshwar Railway Station, Vadhuth, District Satara –
415011, Maharashtra, India |
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Factory 4 : |
Tandulwadi and Wanjarwadi,
Taluka Baramati, District Pune –
413206, Maharashtra, India |
DIRECTORS
AS ON 31.03.2014
|
Name : |
Mr. Babasaheb Neelkanth Kalyani |
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Designation : |
Chairman and Managing Director |
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Qualification : |
B.E. (Mech.) (Hons.), M.S. (M.I.T.) |
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Date of Appointment : |
01.04.1972 |
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Name : |
Mr. Pratap G Pawar |
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Designation : |
Director |
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Date of Birth/Age : |
69 Years |
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Qualification : |
Bachelor of Engineering from Birla Institute of Technology and Science
(BITS), Pilani, Rajasthan. |
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DIN No.: |
00018985 |
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Other Directorship : |
1)
Abhijit Pawar Media Limited 2)
Finolex Cables Limited 3)
P. P. Holdings Limited 4)
Force Motors Limited 5)
Kirloskar Oil Engines Limited |
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Name : |
Mr. S. M. Thakore |
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Designation : |
Director |
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Date of Birth/Age : |
66 Years |
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Qualification : |
B.A. (Politics) and Bachelor of Law from the Bombay University |
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DIN No.: |
00031788 |
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Other Directorship : |
1)
Alkyl Amines Chemicals Limited 2)
Morarjee Textiles Limited 3)
Uni Klinger Limited 4)
Uni Deritend Limited 5)
Carborundum Universal Limited 6)
Sharda Cropchem Limited |
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Name : |
Mrs. Lalita D Gupte |
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Designation : |
Director |
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Date of Birth/Age : |
65 Years |
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Qualification : |
Bachelor’s
Degree in Economics (Hons) and a Master’s Degree in Management Studies. |
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DIN No.: |
00043559 |
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Other Directorship : |
1)
ICICI Venture Funds Management Co. Limited 2)
Kirloskar Brothers Limited 3)
Godrej Properties Limited 4)
Sesa Sterlite Limited |
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Name : |
Mr. P. H. Ravikumar |
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Designation : |
Director |
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Date of Birth/Age : |
62 Years |
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Qualification : |
Bachelors in Commerce and CAIIB, AIB from London and a Senior Diploma
in French. |
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Experience : |
41 Years in Banking and financial services. |
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DIN No.: |
00280010 |
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Other Directorship : |
1)
Eveready Industries India Limited 2)
SKS Microfinance Limited 3)
BOB Capital Markets Limited 4)
Mcnally Bharat Engg. Co. Limited 5)
Sicom Investments & Finance Limited 6)
I G Petrochemicals Limited 7)
L&T Investment Management Limited 8)
Vastu Housing Finance Corporation Limited |
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Name : |
Mr. Prakash Chandrashekhar Bhalerao |
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Designation : |
Executive Director |
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Qualification : |
B.E. (Elect.), M.B.A., D.T.M. |
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Date of Appointment : |
03.03.1987 |
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Name : |
Mr. G. K. Agarwal |
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Designation : |
Deputy Managing Director |
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Qualification : |
B.E. (Mech.), M.B.A. |
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Date of Appointment : |
01.11.1976 |
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Name : |
Mr. Naresh Narad |
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Designation : |
Director |
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Date of Birth/Age : |
70 Years |
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Qualification : |
Bachelor’s degree in Arts, LL.B. and has been a veteran I.A.S. Civil
Servant. |
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DIN No.: |
02737423 |
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Other Directorship : |
FAT Pipe Networks Limited |
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Name : |
Dr. Tridibesh Mukherjee |
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Designation : |
Director |
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Date of Birth/Age : |
71 Years |
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Qualification : |
M. Met. and Ph.D. |
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Experience : |
46 Years |
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DIN No.: |
00004777 |
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Other Directorship : |
1)
TIL Limited 2)
Nicco Corporation Limited 3)
West Bengal Industrial Development Corporation
Limited 4)
Rane (Madras) Limited 5)
Tata Advanced Materials Limited 6)
IFB Industries Limited |
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Name : |
Mr. Vimal Bhandari |
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Designation : |
Director |
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Date of Birth/Age : |
55 Years |
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Qualification : |
Commerce graduate from Mumbai University and a Chartered Accountant. |
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Experience : |
26 Years |
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DIN No.: |
00001318 |
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Other Directorship : |
1)
Mirc Electronics Limited 2)
Kalpataru Power Transmission Limited 3)
DCM Shriram Limited 4)
Bayer Cropscience Limited 5)
The Ratnakar Bank Limited 6)
Piramal Glass Limited 7)
JK Tyre & Industries Limited |
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Name : |
Mr. G.K. Agrawal |
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Designation : |
Deputy Managing Director |
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Name : |
Mr. Amit B. Kalyani |
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Designation : |
Executive director |
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Date of Birth/Age : |
38 Years |
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Qualification : |
Mechanical Engineering from Bucknell University, Pennsylvania, USA |
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DIN No.: |
00089430 |
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Other Directorship : |
1)
Kalyani Steels Limited 2)
BF Utilities Limited 3)
BF-NTPC Energy Systems Limited 4)
Kalyani Investment Company Limited 5)
BF Investment Limited 6)
Kalyani ALSTOM Power Limited 7)
Automotive Axles Limited 8)
Impact Automotive Solutions Limited 9)
Hikal Limited 10)
Kalyani Carpenter Special Steels Limited 11) KPIT
Technologies Limited |
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Name : |
Mr. B. P. Kalyani |
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Designation : |
Executive Director |
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Date of Birth/Age : |
51 Years |
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Qualification : |
B.E. (Prod. Engg.), M.S. (Mech. Engg.), M.B.A. |
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Experience : |
More than 30 years |
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Date of Appointment : |
23.05.2006 |
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DIN No.: |
00267202 |
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Name : |
Mr. S. E. Tandale |
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Designation : |
Executive Director |
KEY EXECUTIVES
|
Name : |
Mr. Prashant S. Vaishampayan |
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Designation : |
Company Secretary |
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Name : |
S. G. Joglekar |
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Designation : |
Chief Financial Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.06.2014
|
Category of Shareholder |
Total
No. of Shares |
As a % |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
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|
808115 |
0.35 |
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|
108009805 |
46.40 |
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|
108817920 |
46.75 |
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Total
shareholding of Promoter and Promoter Group (A) |
108817920 |
46.75 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
28255402 |
12.14 |
|
|
6516368 |
2.80 |
|
|
4552459 |
1.96 |
|
|
31906294 |
13.71 |
|
|
71230523 |
30.60 |
|
|
|
|
|
|
20416941 |
8.77 |
|
|
|
|
|
|
19995113 |
8.59 |
|
|
11246566 |
4.83 |
|
|
1078053 |
0.46 |
|
|
587340 |
0.25 |
|
|
474220 |
0.20 |
|
|
16493 |
0.01 |
|
|
52736673 |
22.65 |
|
Total Public
shareholding (B) |
123967196 |
53.25 |
|
Total (A)+(B) |
232785116 |
100.00 |
|
(C) Shares held
by Custodians and against which Depository Receipts have been issued |
|
|
|
|
0 |
0.00 |
|
|
9200 |
0.00 |
|
|
9200 |
0.00 |
|
Total
(A)+(B)+(C) |
232794316 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs. 0.100 Million 
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and
Selling of Forged Components. |
GENERAL INFORMATION
|
Customers : |
· Daimler Audi BMW Ford Toyota Honda Volvo Mahindra Renault Mahle Ashok Leyland |
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No. of Employees : |
4581 (Approximately) |
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Bankers : |
· Bank of India Bank of Baroda Bank of Maharashtra Canara Bank State Bank of India HDFC Bank Limited ICICI Bank Limited Axis Bank Limited Citibank N.A. Standard Chartered Bank The Royal Bank of Scotland N V Credit Agricole CIB |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
S.R. Batliboi and Company LLP Chartered Accountants |
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Subsidiaries : |
· CDP Bharat Forge GmbH Bharat Forge America Inc. BF-NTPC Energy Systems Limited Kalyani ALSTOM Power Limited BF Infrastructure Limited BF Infrastructure Ventures Limited Kalyani Strategic Systems Limited (formerly known as BF
Power Equipment Limited) BF Elbit Advanced Systems Private Limited Kalyani Polytechnic Private Limited (Section 25 Company) Analogic Controls India Limited (w.e.f. May 14, 2013) |
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|
Step down subsidiaries : |
· Bharat Forge Holding GmbH Bharat Forge Aluminiumtechnik GmbH and Co. KG Bharat Forge Aluminiumtechnik Verwaltungs GmbH Bharat Forge Beteiligungs GmbH Bharat Forge Kilsta AB Bharat Forge Scottish Stampings Limited Bharat Forge Hong Kong Limited FAW Bharat Forge (Changchun) Co. Limited Bharat Forge International Limited Bharat Forge Daun GmbH BF New Technologies GmbH |
|
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|
Joint Ventures : |
· ALSTOM Bharat Forge Power Limited Impact Automotive Solutions Limited |
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|
Step down joint venture : |
David Brown
Bharat Forge Gear Systems India Limited |
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|
Enterprises owned or significantly
influenced by key management personnel or their relatives : |
· Kalyani Carpenter Special Steels Limited Kalyani Steels Limited BF Utilities Limited Automotive Axle Limited |
CAPITAL STRUCTURE
AS ON 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
|
|
300,000,000 |
Equity Shares |
Rs. 2/- each |
Rs. 600.000 Millions |
|
|
43,000,000 |
Cumulative Non-Convertible Preference Shares |
Rs. 10/- each |
Rs. 430.000 Millions |
|
|
2,000,000 |
Unclassified Shares |
Rs. 10/- each |
Rs. 20.000 Millions |
|
|
|
|
|
|
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Total |
|
Rs. 1050.000 Millions |
|
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
232,970,666 |
Equity Shares |
Rs. 2/- each |
Rs. 465.940
Millions |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
232,794,316 |
Equity Shares |
Rs. 2/- each |
Rs. 465.590
Millions |
|
|
Add: 172,840 (March 31, 2013: 172,840)
forfeited equity shares comprising of 15,010 equity shares (March 31, 2013:
15,010) of Rs. 2/- each (amount partly paid Re. 1/- each) and 157,830 equity
shares (March 31, 2013 : 157,830) of Rs. 2/- each (amount partly paid Re.
0.50/- each) |
|
Rs. 0.090
Million |
|
|
|
|
|
|
|
Total |
|
Rs. 465.680 Millions |
(a) Reconciliation of the shares outstanding at the beginning and at the
end of the reporting period
|
Equity shares |
As at March 31,
2014 |
|
|
|
No. |
Rs. in Millions |
|
At the beginning of the year |
232,794,316 |
465.590 |
|
Issued during the year |
-- |
-- |
|
Outstanding at the end of the year |
232,794,316 |
465.590 |
(b) Terms / rights
attached to equity shares
The Company has
only one class of issued equity shares having a par value of Rs. 2/- per share.
Each holder of equity shares is entitled to one vote per share. The Company
declares and pays dividend in Indian rupees. The dividend proposed by the Board
of Directors is subject to the approval of the shareholders in the ensuing
Annual General Meeting.
During the year
ended March 31, 2014, the amount of per share interim dividend recognised as
distributions to equity shareholders was Rs. 2.00/- (March 31, 2013: Re.
1.00/-).
During the year
ended March 31, 2014, the amount of per share proposed final dividend
recognised as distributions to equity shareholders was Rs. 2.50/- (March 31,
2013: Rs. 2.40/-).
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.
(c) Shares held by
holding / ultimate holding company and / or their subsidiaries / associates
The Company being
ultimate holding company there are no shares held by any other holding,
ultimate holding company and their subsidiaries / associates.
(d) Aggregate
number of bonus shares issued, shares issued for consideration other than cash
and shares bought back during the period of five years immediately preceding
the reporting date
There are no bonus
shares issued, shares issued for consideration other than cash and shares
bought back during the period of five years immediately preceding reporting
date.
(e) Details of shareholders holding more than 5% shares in the Company
|
Name of
Shareholder * |
As at March 31,
2014 |
|
|
Equity shares of Rs. 2/- each
fully paid |
No. |
% of Holding |
|
Kalyani Investment Company Limited |
31,656,095 |
13.60 |
|
KSL Holdings Private Limited |
23,142,870 |
9.94 |
|
Sundaram Trading and Investment Private Limited |
29,907,087 |
12.85 |
|
Life Insurance Corporation Of India |
8,120,200 |
3.49 |
|
Reliance Capital Trustee Company Limited |
7,578,185 |
3.26 |
* The shareholding
information is based on legal ownership of shares and has been extracted from
the of the Company including register of shareholders / members.
(f) Shares reserved for issue under options
|
|
March 31, 2014 |
March
31, 2013 |
|
Warrants issued with option to subscribe |
-- |
6500000 |
|
The issue of
Foreign Currency Convertible Bonds optionally convertible at an initial price
specified in offering circular. As the initial price was subject to
adjustments specified in the offering circular and hence inability to assess
the proportion of conversion, no amounts have been shown under issued equity
share capital, in respect of equity shares reserved for issued on exercise of
conversion by bondholders |
-- |
-- |
|
2,340 equity
shares of Rs. 2/- each out of the previous issue of equity shares on a right
basis together with 234 detachable warrants entitled to subscription of 1,170
equity shares of Rs. 2/- each, have been kept in abeyance and reserve for
issue pending adjudication of title to the pre right holding. |
3510.000 |
3510.000 |
(g) Terms of
securities convertible into equity shares
i) The Company had
issued and allotted to Qualified Institutional Buyers, 10,000,000 equity shares
of Rs. 2/- each at a price of Rs. 272/- per share aggregating to Rs. 2,720
millions on April 28, 2010, simultaneous with the issue of 1,760 10.75%
Non-Convertible Debentures (NCD) of a face value of Rs. 1.000 Million at par,
together with 6,500,000 warrants at a price of Rs. 2/- each entitling the
holder of each warrant to subscribe for 1 equity share of Rs. 2/- each at a
price of Rs. 272/- at any time within 3 years from the date of allotment. The
subscription money received on issue of warrants had been credited to capital
reserve as the same is not refundable / adjustable.
The Warrant
holders were entitled to exercise their right to exchange the warrants in to
corresponding number of equity shares, up to April 28, 2013. As no warrants
have been exercised on or before the said warrant exercise period, the warrants
have lapsed and ceased to be valid.
ii) Regarding
Foreign Currency Convertible Bonds.
(h) Global
depository receipts
The Company had
issued 3,636,500 equity shares of Rs. 10/- each (later sub-divided into
18,182,500 equity shares of Rs. 2/- each) in April and May 2005 represented by
3,636,500 Global Depository Receipts (GDR) (on sub division 18,182,500 GDRs)
evidencing “Master GDR Certificates” at a price of USD 27.50 per GDR (including
premium). GDRs outstanding at the close of the year are 9,200 (March 31, 2013:
9,200). The funds raised had been utilised towards the object of the issue.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
465.680 |
465.680 |
465.680 |
|
(b) Reserves & Surplus |
26467.400 |
22645.640 |
20965.270 |
|
(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) |
26933.080 |
23111.320 |
21430.950 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
13599.870 |
14489.800 |
16003.980 |
|
(b) Deferred tax liabilities (Net) |
1791.030 |
1364.300 |
1271.520 |
|
(c) Other long
term liabilities |
4.670 |
7.400 |
7.150 |
|
(d) long-term
provisions |
303.270 |
332.920 |
327.900 |
|
Total Non-current
Liabilities (3) |
15698.840 |
16194.420 |
17610.550 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
1070.150 |
390.110 |
840.980 |
|
(b) Trade
payables |
5624.970 |
4241.150 |
6656.180 |
|
(c)
Other current liabilities |
6616.510 |
6282.110 |
5375.780 |
|
(d) Short-term
provisions |
1041.480 |
908.040 |
1367.260 |
|
Total Current
Liabilities (4) |
14353.110 |
11821.410 |
14240.200 |
|
|
|
|
|
|
TOTAL |
56985.030 |
51127.150 |
53281.700 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
20254.340 |
19988.080 |
17961.990 |
|
(ii)
Intangible Assets |
0.000 |
0.000 |
0.000 |
|
(iii)
Capital work-in-progress |
1314.020 |
2228.060 |
2887.570 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
5703.520 |
5453.460 |
5115.520 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
1516.910 |
3563.350 |
4036.890 |
|
(e) Other
Non-current assets |
261.430 |
423.890 |
588.050 |
|
Total Non-Current
Assets |
29050.220 |
31656.840 |
30590.020 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
7705.400 |
3852.990 |
4246.970 |
|
(b)
Inventories |
5084.100 |
4757.010 |
5031.340 |
|
(c)
Trade receivables |
5252.140 |
4742.320 |
4911.750 |
|
(d) Cash
and cash equivalents |
2516.620 |
2790.780 |
5005.940 |
|
(e)
Short-term loans and advances |
3465.770 |
2570.550 |
2702.420 |
|
(f)
Other current assets |
3910.780 |
756.660 |
793.260 |
|
Total
Current Assets |
27934.810 |
19470.310 |
22691.680 |
|
|
|
|
|
|
TOTAL |
56985.030 |
51127.150 |
53281.700 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Operations |
33992.730 |
31512.270 |
36859.740 |
|
|
|
Other Income |
1147.000 |
916.250 |
675.700 |
|
|
|
TOTAL (A) |
35139.730 |
32428.520 |
37535.440 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
14105.490 |
13430.860 |
16496.200 |
|
|
|
Changes in inventories of finished goods, work-in-progress
and Stock-in-Trade |
(367.510) |
141.460 |
(162.120) |
|
|
|
Employees benefits expense |
2788.460 |
2573.880 |
2549.640 |
|
|
|
Other expenses |
8829.500 |
8210.320 |
8823.000 |
|
|
|
Exceptional Items |
(123.500) |
(105.690) |
704.160 |
|
|
|
TOTAL
(B) |
25232.440 |
24250.830 |
28410.880 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
9907.290 |
8177.690 |
9124.560 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1495.720 |
1533.590 |
1504.650 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
8411.570 |
6644.100 |
7619.910 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
2453.150 |
2239.330 |
2149.330 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
5958.420 |
4404.770 |
5470.580 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
1959.130 |
1348.840 |
1849.850 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
3999.290 |
3055.930 |
3620.730 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS YEARS’
BALANCE BROUGHT FORWARD |
11469.410 |
10051.890 |
8284.100 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Interim Dividend on Equity Shares |
465.590 |
232.790 |
349.190 |
|
|
|
Tax on above Dividend |
79.130 |
37.760 |
56.650 |
|
|
|
Proposed Final Dividend on Equity Shares |
581.990 |
558.710 |
581.990 |
|
|
|
Tax on above Dividend |
98.910 |
94.950 |
94.410 |
|
|
|
Debenture Redemption Reserve |
403.770 |
408.600 |
408.600 |
|
|
|
Transfer to General Reserve |
400.000 |
305.600 |
362.100 |
|
|
BALANCE CARRIED
TO THE B/S |
13439.310 |
11469.410 |
10051.890 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
F.O.B. value of exports |
18268.670 |
15613.350 |
17309.920 |
|
|
|
Insurance and freight on exports |
207.870 |
189.200 |
457.280 |
|
|
|
Die design and preparation charges |
213.460 |
252.950 |
37.170 |
|
|
|
Interest received on fixed deposits / others |
0.000 |
0.090 |
0.020 |
|
|
|
Interest on loan to subsidiary |
48.930 |
29.560 |
33.360 |
|
|
|
Guarantee commission |
9.060 |
4.590 |
4.480 |
|
|
TOTAL EARNINGS |
18747.990 |
16089.740 |
17842.230 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials and Components |
590.880 |
661.380 |
472.120 |
|
|
|
Die Blocks, Die Steel, Tool Steel and Stores Spares |
592.350 |
718.260 |
715.260 |
|
|
|
Capital Goods |
217.000 |
865.890 |
1311.160 |
|
|
TOTAL IMPORTS |
1400.230 |
2245.530 |
2498.540 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic
|
17.18 |
13.13 |
15.55 |
|
|
|
Diluted
|
17.18 |
13.13 |
15.53 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2014 |
|
Type |
1st
Quarter |
|
Net Sales |
9881.300 |
|
Total Expenditure |
7048.300 |
|
PBIDT (Excl OI) |
2833.000 |
|
Other Income |
241.900 |
|
Operating Profit |
3074.900 |
|
Interest |
316.400 |
|
Exceptional Items |
0.000 |
|
PBDT |
2758.500 |
|
Depreciation |
657.500 |
|
Profit Before Tax |
2101.000 |
|
Tax |
651.300 |
|
Provisions and contingencies |
0.000 |
|
Profit After Tax |
1449.700 |
|
Extraordinary Items |
0.000 |
|
Prior Period Expenses |
0.000 |
|
Other Adjustments |
0.000 |
|
Net Profit |
1449.700 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
PAT / Total Income |
(%) |
11.38 |
9.42 |
9.65 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
17.53 |
13.98 |
14.84 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
11.92 |
10.14 |
12.08 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.22 |
0.19 |
0.26 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.54 |
0.64 |
0.79 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.95 |
1.65 |
1.59 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
465.680 |
465.680 |
465.680 |
|
Reserves & Surplus |
20965.270 |
22645.640 |
26467.400 |
|
Net
worth |
21430.950 |
23111.320 |
26933.080 |
|
|
|
|
|
|
long-term borrowings |
16003.980 |
14489.800 |
13599.870 |
|
Short term borrowings |
840.980 |
390.110 |
1070.150 |
|
Total
borrowings |
16844.960 |
14879.910 |
14670.020 |
|
Debt/Equity ratio |
0.786 |
0.644 |
0.545 |
YEAR-ON-YEAR GROWTH
|
Year on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
36859.740 |
31512.270 |
33992.730 |
|
|
|
(14.508) |
7.871 |
NET PROFIT MARGIN
|
Net Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
36859.740 |
31512.270 |
33992.730 |
|
Profit |
3620.730 |
3055.930 |
3999.290 |
|
|
9.82% |
9.70% |
11.77% |
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 |
Yes |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm
/ promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE CREATION/MODIFICATION |
CHARGE AMOUNT SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST NUMBER (SRN) |
|
1 |
10227088 |
15/03/2014 * |
1,760,000,000.00 |
GDA TRUSTEESHIP
LIMITED |
GDA HOUSE, FIRST
FLOOR, PLOT NO. 85, S. NO. 94 & 95, BHUSARI COLONY (RIGHT), KOTHRUD,
PUNE, MAHARASHTRA - 411038, INDIA |
C00628982 |
|
2 |
10191791 |
15/03/2014 * |
3,500,000,000.00 |
GDA TRUSTEESHIP
LIMITED |
GDA HOUSE, FIRST
FLOOR, PLOT NO. 85, S. NO. 94 & 95, BHUSARI COLONY (RIGHT), KOTHRUD,
PUNE, MAHARASHTRA - 411038, INDIA |
C00635375 |
|
3 |
10158557 |
15/03/2014 * |
2,500,000,000.00 |
GDA TRUSTEESHIP
LIMITED |
GDA HOUSE, FIRST
FLOOR, PLOT NO. 85, S. NO. 94 & 95, BHUSARI COLONY (RIGHT), KOTHRUD,
PUNE, MAHARASHTRA - 411038, INDIA |
C00630376 |
|
4 |
10150422 |
09/03/2009 |
2,570,500,000.00 |
CALYON |
168 ROBINSON
ROAD,, # 22-01 CAPITAL TOWER,, SINGAPORE, - 068912, SINGAPORE |
A59511246 |
|
5 |
90086271 |
06/06/2003 * |
600,000,000.00 |
SUMITOMO MITSUI
BANKING CORPN. |
7/8F; ONE
INTERNATIONAL FINANCE CENTRE, 1; HARBOUR VIEW STREET; CENTRAL, HONGKONG, ,
HONG KONG |
- |
|
6 |
90086181 |
23/09/2002 |
242,300,000.00 |
EXPORT IMPORT
BANK OF INDIA |
CENTRE ONE,
WORLD TRADE CENTRE; CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA |
- |
|
7 |
80022454 |
26/02/2014 * |
16,000,000,000.00 |
BANK OF INDIA |
PUNE LARGE
CORPORATE BRANCH, C.T.S. NO.1290, PLOT NO. 675, OFF. J. M. ROAD,
SHIVAJINAGAR,, PUNE, MAHARASHTRA - 411005, INDIA |
C00634261 |
|
8 |
90086045 |
30/07/2003 * |
1,350,000,000.00 |
BANK OF INDIA |
INDUSTRIAL
FINANCE BRANCH, 1162/6; SHIVAJINAGAR; |
- |
|
9 |
90085489 |
04/05/2004 * |
300,000,000.00 |
EXPORT IMPORT
BANK OF INDIA |
CENTRE ONE,
WORLD TRADE CENTRE; CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA |
- |
|
10 |
90085483 |
22/05/2001 * |
300,000,000.00 |
ICICI LIMITED |
ICICI TOWRES;,
BANDRA-KURLA COMPLEX; BANDRA (EAST), MUMBAI, MAHARASHTRA - 400051, INDIA |
- |
|
11 |
90085098 |
14/06/2002 * |
500,000,000.00 |
ICICI LIMITED |
C-23; 'G' BLOCK;
BANDRA KURLA COMPLEX, BANDRA (EAST), MUMBAI, MAHARASHTRA - 400051, INDIA |
- |
|
12 |
90084897 |
16/09/1998 |
100,000,000.00 |
EXPORT IMPORT
BANK OF INDIA |
CENTRE ONE,
WORLD TRADE CENTRE; CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA |
- |
|
13 |
90084772 |
27/01/1998 |
1,000,000,000.00 |
BANK OF INDIA |
INDUSTRIAL
FINANCE BRANCH, LIC BUILDING; 6/7; SHI |
- |
|
14 |
90084749 |
27/12/1997 |
150,000,000.00 |
EXPORT IMPORT
BANK OF INDIA |
CENTRE ONE,
WORLD TRADE CENTRE; CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA |
- |
|
15 |
90084644 |
13/06/1997 |
200,000,000.00 |
THE INDUSTRIAL
CREDIT AND INVESTMENT CORPN. OF IND |
163; BACKBAY
RECLAMATION, MUMBAI, MAHARASHTRA - 400020, INDIA |
- |
|
16 |
90084639 |
30/05/1997 |
250,000,000.00 |
THE INDUSTRIAL
CREDIT AND INVESTMENT CORPN. OF IND |
163; BACKBAY
RECLAMATION, BOMBAY, MAHARASHTRA - 400020, INDIA |
- |
|
17 |
90084606 |
27/03/1997 |
70,000,000.00 |
BANK OF INDIA |
INDUSTRIAL
FINANCE BRANCH, LIC BUILDING; 6/7; SHIVAJINAGAR; UNIVERSITY ROAD, PUNE,
MAHARASHTRA - 411005, INDIA |
- |
|
18 |
90084559 |
25/05/1998 * |
110,000,000.00 |
THE SCICI
LIMITED |
141; MAKER
TOWER-'F', CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA |
- |
|
19 |
90084530 |
23/09/1996 |
919,500,000.00 |
BANK OF INDIA |
INDUSTRIAL
FINANCE BRANCH, LIC BUILDING; 6/7; SHIVAJINAGAR; UNIVERSITY ROAD, PUNE,
MAHARASHTRA - 411005, INDIA |
- |
|
20 |
90084457 |
25/05/1998 * |
163,500,000.00 |
THE INDUSTRIAL
CREDIT & INVESTMENT CORPN. OF INDIA |
163; BACKBAY
RECLAMATION, MUMBAI, MAHARASHTRA - 400020, INDIA |
- |
|
21 |
90084406 |
25/05/1998 * |
208,000,000.00 |
THE INDUSTRIAL
CREDIT & INVESTMENT CORPN. OF INDIA |
163; BACKBAY
RECLAMATION, MUMBAI, MAHARASHTRA - 400020, INDIA |
- |
|
22 |
90235712 |
29/12/1995 |
689,500,000.00 |
BANK OF INDIA |
INDUSTRIAL
FINANACE BRANCH, PONE, MAHARASHTRA - 440005, INDIA |
- |
|
23 |
90084356 |
23/11/1995 |
126,122,000.00 |
BANK OF INDIA |
INDUSTRIAL
FINANCE BRANCH, 6/7; SHIVAJINAGAR; UNIVERSITY ROAD, PUNE, MAHARASHTRA -
411007, INDIA |
- |
|
24 |
90084141 |
13/07/1994 |
313,200,000.00 |
BANK OF BARODA |
BRANCH PUNE,
PUNE, MAHARASHTRA, INDIA |
- |
|
25 |
90084010 |
25/05/1998 * |
9,000,000.00 |
THE INDUSTRIAL
FINANCE CORPN. OF INDIA |
BANK OF BARODA
BLDG., 16; SANSAD MARG, NEW DELHI, |
- |
|
26 |
90083970 |
21/05/1993 |
760,000,000.00 |
BANK OF INDIA |
INDUSTRIAL
FINANCE BRANCH, LIC BUILDING; 6/7; SHIVAJINAGAR; UNIVERSITY ROAD, PUNE,
MAHARASHTRA - 411005, INDIA |
- |
|
27 |
90235516 |
26/03/1992 |
17,500,000.00 |
THE INDUSTRIAL
CREDIT &INVESTMENT CORPORATION O |
163 BECKBAY
RECLAMATION, MUMBAI, MAHARASHTRA - 400020, INDIA |
- |
|
28 |
90083847 |
25/05/1998 * |
35,000,000.00 |
LIFE INSURANCE
CORPN. OF INDIA |
YOGAKSHEMA,
JEEVAN BIMA MARG, MUMBAI, MAHARASHTRA - 400021, INDIA |
- |
|
29 |
90083785 |
25/05/1998 * |
17,800,000.00 |
THE INDUSTRIAL
CREDIT & INVESTMENT CORPN. OF INDIA |
163; BACKBAY
RECLAMATION, MUMBAI, MAHARASHTRA - 400020, INDIA |
- |
|
30 |
90083682 |
25/05/1998 * |
29,500,000.00 |
THE INDUSTRIAL
CREDIT & INVESTMENT CORPN. OF INDIA |
163; BACKBAY
RECLAMATION, MUMBAI, MAHARASHTRA - 400020, INDIA |
- |
|
31 |
90083641 |
25/05/1998 * |
47,500,000.00 |
THE INDUSTRIAL
CREDIT & INVESTMENT CORPN. OF INDIA |
163; BACKBAY
RECLAMATION, MUMBAI, MAHARASHTRA - 400020, INDIA |
- |
|
32 |
90083638 |
25/05/1998 * |
62,600,000.00 |
INDUSTRIAL
DEVELOPMENT BANK OF INDIA |
IDBI TOWERS;
NEAR WORLD TRADE CENTRE, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA |
- |
* Date of charge modification
UNSECURED LOANS
|
UNSECURED LOANS |
31.03.2014 (Rs.
In Millions) |
31.03.2013 (Rs.
In Millions) |
|
LONG-TERM BORROWINGS |
|
|
|
Foreign currency term loans On syndication basis |
4795.200 |
4345.600 |
|
On syndication basis |
2397.600 |
2172.800 |
|
On syndication basis |
3596.400 |
0.000 |
|
SHORT TERM BORROWINGS |
|
|
|
Preshipment packing credit - foreign currency |
384.250 |
0.000 |
|
Buyers’ line of credit for import of goods from banks |
0.000 |
291.890 |
|
|
|
|
|
Total |
11173.450 |
6810.290 |
CORPORATE INFORMATION
Subject is a public
Company domiciled in India and incorporated under the provisions of the
Companies Act, 1956. Its shares are listed on three stock exchanges in India.
The Company is engaged in the manufacturing and selling of forged components.
The Company caters to both domestic and international markets. The Company’s
CIN is L25209PN1961PLC012046.
PERFORMANCE OF THE
COMPANY
During the year, the total income of the Company was Rs.35140.000
Millions (previous year Rs.32428.000 Millions), representing an increase of
8.36%.
Indian automotive Industry witnessed another year of de-growth across
all segments. Motor and Heavy Commercial Vehicle Sector de-grew by 18% after
26% de-growth in FY 2012-13. Tractor Industry, however, witnessed a growth of
20%. Domestic sales for the Company had a drop of 3%. The Company was able to
largely offset the adverse impact of market conditions in Auto Industry through
higher sales to Tractor Industry and other non-automotive sectors.
MANAGEMENT
DISCUSSION AND ANALYSIS
GLOBAL AND INDIAN
ECONOMIC OVERVIEW
2013 witnessed developed economies gaining traction, whereas emerging
economies lost ground. The global recovery was led by fiscal stimulus, low
interest rates and reassurance by the central bankers. Improved economic
metrics showing encouraging employment numbers and spending summed up the US
recovery story. Its tapering of quantitative easing programme also led to a
brief currency slide in many emerging economies. The
Eurozone dispelled recessionary fears on the back of eased up credit
scenario and improved resilience while growth in China rebounded in the second
half of 2013, due to acceleration in investment.
The global economy ended the year on a better footing as compared to the
start of the year and the growth momentum is expected to be carried forward
during 2014.
As per the IMF estimates, global GDP growth is expected to grow at 3.9%
in 2015, and 3.7% in 2014 as compared to 3% in 2013. Global trade activity is
likely to increase and grow at 2.5% in 2013 visà-vis 2.3% in 2012.
The Indian economy has been going through challenging times that
culminated in lower than 5% growth of GDP for two consecutive years, i.e. FY
2012-13 and FY 2013-14. The slowdown is broadly in sync with trends in other
emerging economies, but relatively deeper. India’s growth declined from an
average of 8.3% per annum during 2004-05 to 2011-12 to an average of 4.6% in
2012-13 and 2013-14.
The growth slowdown was broad based, but affected in particular the
manufacturing sector with the output of capital goods also declining for the
third year in a row starting 2011-12.
A sharp decline in imports and a moderate growth in exports in 2013-14
resulted in a decline in India’s trade deficit and contributing to a lower CAD.
The current account deficit (CAD) declining to manageable levels after two
years of worryingly high levels was a redeeming feature of 2013-14. The year
ended with a CAD of 1.7% of GDP as against 4.7% in 2012-13.
The fiscal deficit as a proportion of GDP also declined for the second
year in a row. It declined from 5.7% of GDP in 2011-12 to 4.9% in 2012-13 and
4.5% in 2013-14.
The improvements in the twin deficits would, no doubt, feed into a
higher growth in FY 2014-15, but the pace of recovery may be gradual.
Investment revival, strengthening of macroeconomic stability, creation of
non-agricultural jobs, strengthening of infrastructure, and boost to
agricultural development would be the priorities for growth revival.
Moderation in inflation would help ease the monetary policy stance and
revive the confidence of investors, and with the global economy expected to
recover moderately, on account of performance of some advanced economies, the
Indian economy can look forward to better growth prospects in FY 2014-15 and
beyond. In FY 2014-15, the Indian economy is poised to overcome the sub-5%
growth of gross domestic product (GDP).
On the flip side, however, growth in FY 2014-15 can remain more on the
lower side of the range given above, for the following reasons: (i) steps
undertaken to restart the investment cycle (including project clearances and
incentives given to industry) are perceived to be playing out only gradually;
(ii) the benign growth outlook in some Asian economies, particularly China;
(iii) still elevated levels of inflation that limit the scope of the RBI to
reduce policy rates; and (iv) expectation of below-normal monsoons. Downside
risk also emerges from prolonging of the
geo-political tensions.
GLOBAL AUTOMOBILE
INDUSTRY
Global demand for medium- and heavy duty trucks was noticeably higher
than in the prior year but with stark contrast across the various regions.
North American truck market registered a 10% decline in demand in CY 2013
compared to CY 2012, it improved towards the end of the year backed by slight
recovery in US economy and a continued replacement of the existing fleet.
European heavy duty truck market improved on the back of pre buy before the
transition to the new Euro VI regulations.
The South American market for heavy duty trucks also witnessed increased
demand in CY 2013 on back of slight improvement in the Brazilian economy and
financing support from the government for purchase of trucks. Truck demand in
Asia varied with both the Chinese and the Japanese truck volumes increasing in
CY 2013 while the Indian truck market saw the 2nd straight year of decline in
demand.
The global demand for cars witnessed an increase in CY 2013 compared to
prior year. Here too, the development of demand varied across geographies. The
US market continued its strong recovery registering total sales of 15.5 million
cars and light trucks, highest level since 2007. Major Emerging Economies with
the exception of China witnessed a declined in demand.
INDIA’S AUTOMOBILE
INDUSTRY
FY 2013-14 was the second consecutive year of volume decline for the
automotive sector in India across all segments of the industry. Total
automotive production recorded a 7.2% decrease compared to FY 2012-13 with
slowdown in economic growth and higher interest rates continuing to weigh in on
demand. While there was a marginal improvement in demand towards the end of the
fiscal due to reduction in excise duty from 12% to 10%, it was not enough to
mitigate the damage caused in the April – December 2013 period.
PERFORMANCE OF THE
INDUSTRY
The overall Commercial Vehicles (CV) segment registered de-growth of
16.1% in FY 2013-14 compared to the same period last year. Medium and Heavy
Commercial Vehicles (MandHCVs) and Light Commercial Vehicles (LCV) registered
negative growth of 21.0% and 13.5%, respectively.
The frail performance in the CV sector is due to strong headwinds and
pessimistic sentiments. Slowdown in infrastructure projects and lack of
industrial activity led to low MandHCV production volumes at all major OEMs.
Lower investments in infrastructure projects (which witnessed a marked decline
in implementation of projects, eventually leading to underutilisation of
fleet); lower confidence levels of the fleet operators (the stretched usage of
long haul trucks, lower returns on freights and higher maintenance and fuel
costs otherwise); lower resale value and lower level of mining activities due
to mining bans are the other reasons cited for the frail performance of the
sector.
The truck market hit a low in FY 2013-14, producing only about 221,626
trucks compared to 384,801 in FY2012, a drop of more than 40%.
Sales of Passenger Cars have declined by 5.8% during FY 2013-14 over the
same period last year. The decline was on account of the slowing economy and
higher fuel prices that have hurt consumer sentiments, especially in the urban
areas.
COMPANY REVIEW
Bharat Forge Limited (BFL) is the flagship Company of the Kalyani Group.
The Company is India’s leading exporter of components for automotive and
industrial applications.
The manufacturing facilities, equipped with high-end technology, are
spread across India, Germany and Sweden. The Company manufactures an extensive
array of critical and safety components for several sectors including
automobile, oil and gas, rail and marine, energy (across renewable and
non-renewable sources), construction, mining and general engineering.
BFL is a fully-integrated player with a presence across the full value
chain. It is involved right from the initial designing stage to procurement of
the raw material to final development of the product.
HIGHLIGHTS OF
2013-14
BFL’s export revenues in FY 2013-14 witnessed a robust growth of 16.5%
driven by recovery in the Heavy Truck market in Europe and recovery in the
Non-Automotive sector in North America. Bharat Forge continues to win new
orders with newer clients or increase market share with existing clients.
These order wins have become possible based on the Company’s ability to
provide solutions in terms of lightweighting of products which helped address
the OEM needs for better fuel efficiency.
Focus on improving performance of the products through value addition
and fatigue life improvement projects helped to reduce Total Cost of Ownership
(TCO). Also, it has looked at increasing its share of business with its
existing marquee clients and new client additions.
During the year, Bharat Forge followed a three pronged-strategy to
continue on a growth oriented model for the export markets:
· Growing the business by leveraging technology. The focus for the year remained on partnering customers on product improvements which included light weighting, enhanced durability and a combination of the two.
Growing
business with existing customers by broadening the product base and offering
superior value addition by enhancing metallurgy and developing better processes
which led to growth in market share.
Enhancing
the product portfolio by creating capabilities and achieving necessary
internationally acclaimed certifications such as NADCAP to serve the aerospace
industry.
Going forward, challenges are expected to surface given the volatility
of markets, increasing competition and greater demand for superior products
from OEMs. In order to address these challenges, Bharat Forge intends to
strengthen its focus on innovation which will enhance value perception of its
products on a global scale. Additionally, it will seek newer opportunities in
key geographies while continuing to support existing customers through a range
of value added, technologically superior product portfolio.’
AWARDS
Over the years, Bharat Forge has been recognised for the high quality of
products and services it has delivered. Some of the awards received by the
Company are given below:
· The Company entered into “Hall of Fame” by getting awarded the CIO100 (‘The Astute 100 - 2013’) award for the fourth consecutive time. BFL also won the Special Award in “Information Security” Category. These awards are conferred by the International Data Group in recognition for innovative implementation in IT.
BFL
also won the ‘Diamond EDGE (Enterprises Driving Growth and Excellence)’ award
from Information Week Magazine. It recognises CIOs [Chief Information Officer]
in India who have demonstrated best use of technology to solve a business
problem, improvement in competitiveness and delivering quantifiable return on
investments to stakeholders.
OUTLOOK
Outlook on the
economy
The growth in India is likely to firm up on the back of stronger
structural policies favoring investment, clearance of stalled projects and
demand recovery, backed by improved external economic climate. The early
estimates suggest that these are likely to drive GDP growth to +5% in FY
2014-15.
The demand levels for the automotive market across geographies are
stabilizing with an upward bias. Overall the demand is expected to be
moderately better in H2 FY 2014-15 likely to be driven by exports and early
signs of recovery in India.
STANDALONE UNAUDITED FINANCIAL RESULTS
FOR THE QUARTER ENDED 30TH JUNE, 2014
[RS.
IN MILLIONS]
|
Sr. No. |
Particulars |
Quarter ended |
|
|
|
30.06.2014 (Unaudited) |
|
1 |
Income from operations |
|
|
|
--Within India |
4528.800 |
|
|
--Outside
India |
5517.800 |
|
|
Total Sales |
10046.600 |
|
|
Less : Excise duty |
403.300 |
|
|
Total net sales (net of excise duty) |
9643.300 |
|
|
b) Other operating income |
238.000 |
|
|
Total income from operations (net) (a + b) |
9881.300 |
|
2 |
Expenses: |
|
|
|
Cost of materials consumed |
4239.500 |
|
|
Changes in inventories of finished goods, work-in-progress and stock-in-trade |
(648.300) |
|
|
Employee benefits expense |
795.400 |
|
|
Depreciation and amortisation |
657.500 |
|
|
Manufacturing expenses |
1849.300 |
|
|
Other expenses |
812.400 |
|
|
Total expenses |
7705.800 |
|
3 |
Profit from operations before other income, finance costs and exceptional items (1-2) |
2175.500 |
|
4 |
Other income |
241.900 |
|
5 |
Profit from ordinary activities before finance costs and exceptional items (3+4) |
2417.400 |
|
6 |
Finance costs |
316.400 |
|
7 |
Profit from ordinary activities after finance costs but before exceptional items (5-6) |
2101.000 |
|
8 |
Exceptional items |
0.000 |
|
9 |
Profit from
ordinary activities before tax (7+8) |
2101.000 |
|
10 |
Taxes expenses |
651.300 |
|
11 |
Net profit after tax from ordinary activities (9-10) |
1449.700 |
|
12 |
Extraordinary items |
-- |
|
13 |
Net profit after
tax for the period (11+12) |
1449.700 |
|
14 |
Paid-up equity share capital (face value of share: Rs. 2 each) |
465.700 |
|
15 |
Reserves excluding revaluation reserve Earnings per share (Not annualised): |
|
|
16 |
Basic EPS before and after extraordinary items (Rs.) |
6.23 |
|
|
Diluted EPS before and after extraordinary items (Rs.) |
6.23 |
|
|
Additional Information : |
|
|
|
Profit before tax, before exchange gain / (loss) & exceptional items |
2175.800 |
|
A |
PARTICULARS OF
SHAREHOLDING |
|
|
|
1 |
Public shareholding |
|
|
|
|
a. |
Number of shares |
123967196 |
|
|
b. |
Percentage of shareholding |
53.25% |
|
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 |
108817920 |
|
|
|
|
Percentage of shares (as a % of the total shareholding of promoter and
promoter group) |
100.00% |
|
|
|
Percentage of shares (as a % of the total share capital of the
Company) |
46.74% |
|
B |
Investor Complaints
[Nos.] |
Quarter Ended 30.06.2014 |
|
|
Pending at the beginning of the quarter |
Nil |
|
|
Received during the quarter |
1 |
|
|
Disposed of during the quarter |
1 |
|
|
Remaining unresolved at the end of the quarter |
Nil |
NOTES:
1)
The
above results have been reviewed by the Audit Committee and approved by the
Board of Directors of the Company at their respective meetings held on July 30,
2014. The Statutory Auditors of the Company have carried out a "Limited
Review" of the results for the quarter ended June 30, 2014.
2)
Pursuant
to the Companies Act, 2013 (“the Act”), the Company has, during the quarter
ended June 30, 2014, revised depreciation rates on certain fixed assets as per
the useful life specified in Schedule II of the Act or as re-assessed by the
Company. Due to this, based on transitional provision, an amount of Rs.354.800
Millions (net of deferred tax of Rs.182.700 Millions) have been adjusted to
general reserves. Further, depreciation charge for the quarter ended June 30,
2014, is higher by Rs. 3.100 Millions.
3)
The
Company has identified its business segment as its primary reporting segment.
During the quarter ended June 30, 2014, the Company has re-assessed the
identification of its business segment and has identified “Steel forging” as
the only business segment. In previous years, primary reporting segment
comprised of “Steel forging” and “Others”. “Others” segment included general
engineering and windmill operations etc. General engineering is a fabrication
unit and considering the size and volume of activities in general engineering
and windmill operations, and in view of the business activities of the Company,
management believes that this should not be disclosed as a separate business
segment. As a result, the disclosure requirement of primary reporting segment
as per Accounting Standard (AS-17) "Segment Reporting" is not
applicable to the Company on standalone results.
4)
Earnings
per share have been computed in accordance with the principles laid down by the
Accounting Standard (AS) 20 "Earnings per Share".
5)
Previous
period's / year's figures are regrouped / restated, wherever necessary to
conform to current period's presentation.
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2014 (Rs.
In Millions) |
31.03.2013 (Rs.
In Millions) |
|
Sales bills discounted |
7103.340 |
5584.610 |
|
Of which: |
|
|
|
- Bills since realised |
1674.570 |
1231.550 |
|
- Matured, overdue and outstanding since close of the period |
0.000 |
0.000 |
|
Guarantees given by the Company on behalf of other companies: |
|
|
|
Balance Outstanding |
1457.920 |
1898.710 |
|
(Maximum Amount) |
(1952.140) |
(2269.380) |
|
Claims against the Company not acknowledged as Debts - to the extent
ascertained * # |
118.970 |
138.830 |
|
Excise / Service tax demands - matters under dispute # |
358.510 |
176.390 |
|
Customs demands - matters under dispute # |
50.970 |
50.970 |
|
|
|
|
|
Total |
528.450 |
366.190 |
|
NOTES: * The Claim
against the Company comprise of dues in respect to personnel claims (amount
unascertainable), local taxes etc. # The Company is
contesting the demands and the management, including its tax / legal
advisors, believe that its position will likely be upheld in the appellate
process. No tax expense has been accrued in the financial statements for the
tax demand raised. The management
believes that the ultimate outcome of this proceeding will not have a
material adverse effect on the Company’s financial position and results of
operations |
||
FIXED ASSETS:
Tangible assets
· Free hold land
Leasehold
land
Buildings
Plant
and machinery
Office
equipments
Railway
sidings
Electrical
installations
Factory
equipments
Furniture
and fixtures
Vehicles
and aircraft
Power
line
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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. 60.43 |
|
|
1 |
Rs. 100.12 |
|
Euro |
1 |
Rs. 79.74 |
INFORMATION DETAILS
|
Information
Gathered by : |
NYA |
|
|
|
|
Analysis Done by
: |
SUM |
|
|
|
|
Report Prepared
by : |
BVA |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTERS |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
66 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial condition
(40%) Ownership background
(20%) Payment record (10%)
Credit history
(10% Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.