MIRA INFORM REPORT

Report Date :

22.03.2014

IDENTIFICATION DETAILS

Name :	KIRLOSKAR BROTHERS LIMITED
Registered Office :	Udyog Bhavan, Tilak Road, Pune – 411 002, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	15.01.1920
Com. Reg. No.:	11-000670
Capital Investment / Paid-up Capital :	Rs.158.717 Millions
CIN No.: [Company Identification No.]	L29113PN1920PLC000670
TAN No.: [Tax Deduction & Collection Account No.]	PNEK0011E
PAN No.: [Permanent Account No.]	AAACK7300E
Legal Form :	Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Subject is engaged in providing global fluid management solutions and also engaged in manufacturing and exporting of centrifugal pumps and valves.
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

A (63)

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Status :	Good
Payment Behaviour :	Regular
Litigation :	Exists
Comments :	Subject is a part of Kirloskar Group. It is a well-established company having fine track record. Financial position of the company seems to be good. The performance of the company is good during 2013. Trade relations are reported as decent. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good for business dealings at usual trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – December 1, 2013

Country Name	Previous Rating (30.09.2013)	Current Rating (01.12.2013)
India	A1	A1

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

INDIAN ECONOMIC OVERVIEW

State-run banks hired nearly 300000 personnel including more than 94000 officers in the last four years, according to the Indian Banks Association. A study by trade lobby Assocham in September 2013 indicated that banks would need 800000 people in the next six years. It estimated that state-run lenders alone would hire 50000 people in 2013/14.

The Competition Commission of India plans to issue final orders within a broad time-frame of one year in matters where it decides to carry out detailed investigations. The number of complaints received by the watchdog which keeps tabs on unfair trade practices in the marketplace.

The government has detected custom tax evasion totaling around Rs 37920 mn in 14 states until December. Maharashtra topped the list of Rs 14190 mn followed by Andhra Pradesh at Rs 8140 mn, Gujarat Rs 5240 mn, Karnataka Rs 1670 mn and Tamilnadu Rs 1610 mn.

Connaught Place in New Delhi slipped four notches to become the world’s eighth most expensive office locations. London’s West End is the world’s most expensive office market.

There are 4.072 mn number of high value spenders under the scanner of the income tax department. The income tax department has information that they have made cash deposits announcing to Rs 1 mn or more in their savings bank accounts in the current financial year. It plans to check potential evasion before the closing of the financial year on March 31.

Estimated pharmaceutical sales in the country for 2016 is $ 27 bn. It is 14.4 per cent higher than a year ago. The life sciences and health care industry is up against challenges such as quality management, says a recent Deloitte report.

The gross non-performing assets of listed banks rose 35.2 % to Rs 2.43 lakh crore during the first three months of the financial year. In absolute terms, the 40 listed banks added Rs 3386 crore to their gross NPAs in nine months with the State Bank of India leading with the State Bank of India leading with an accretion of Rs 16610 crore.

The inflow of smuggled gold doubled in 2013 following restrictions to curb the supply from official channels to contain the current account deficit. China surpassed India in the demand for gold for the first time in 2013 due to liberalization of gold trading norms by its local governments.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long Term Rating = AA
Rating Explanation	High degree of safety and very low credit risk.
Date	29.11.2013

Rating Agency Name	CRISIL
Rating	Short Term Rating = A1+
Rating Explanation	Very strong degree of safety and lowest credit risk
Date	29.11.2013

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 (9120-24440770)

LOCATIONS

Registered Office :	Udyog Bhavan, Tilak Road, Pune – 411 002, Maharashtra, India
Tel. No.:	91-20-24440770/ 24444455/ 24444444/ 24402189
Fax No.:	91-20-24440824/ 24444198/ 24442780/ 24440156/ 24434198/ 24440822/ 24270879/ 24402083
E-Mail :	kblin@kbl.co.in gpk@kbl.co.in gajanan.kulkarni@kbl.co.in
Website :	http://www.kirloskar.com http://www.kbl.co.in
Location :	Owned
Corporate Office/ Global Headquarters :	“YAMUNA”, Survey No.98/(3-7), Baner, Pune – 411 045, Maharashtra, India
Tel. No.:	91-20-27214598/ 27214444
Fax No.:	91-20-27211136
Factory 1 :	Kirloskarvadi, District Sangli – 416 308, Maharashtra, India
Tel. No.:	91-2346-222301 to 05,  222361 to 222365
Fax No.:	91-2346-222311
Factory 2 :	Opposite Railway Station, Ujjain Road, Dewas – 455 001, Madhya Pradesh, India
Tel. No.:	91-7272-227302, 3, 4 91-7272-227401/ 405/ 409 (Marketing)
Fax No.:	91 7272 228747
Factory 3 :	Shirwal, Gat No.117, Shindevadi, Taluka Khandala, District Satara – 412 801, Maharashtra, India
Tel. No.:	91-2169-244360/ 244370/ 244322
Fax No.:	91-2169-244165
Factory 4 :	Gat No.252/2 + 254/2, Kondhapuri, Taluka: Shirur, District Pune – 412 208, Maharashtra, India
Tel. No.:	91-2137-270217/ 270116/ 270140/ 240021/ 240030/ 240025/ 240022
Factory 5 :	S.F. No.324/1, Moperipalayam Road, Thattampudur, Kaniyur Village, Karumathampatti Post, Sulur Taluk, Coimbatore – 641 659, Tamilnadu, India
Tel. No.:	91-421-2904699
Factory 6 :	Sr. No.254/1, Ahmedabad-Viramgam Highway, Village Chharodi, Taluka Sanand, District Ahmedabad – 382 170, Gujarat, India
Tel. No.:	91-271-273310
Factory 7 :	Pune Bangalore Highway, Shiroli (Pulachi), Taluka Hatkanangale, District Kolhapur – 416 122, Maharashtra, India
Tel. No.:	91-230-2468061/ 62/ 63
Fax No.:	91-230-2468761
Branch Office 1 :	New India Centre, 17-A Cooperage Road, Colaba, Mumbai – 400 039, Maharashtra, India
Tel. No.:	91-22-22020828
Fax No.:	91-22-22026267
Branch Office 2 :	Jeevan Tara Building, 5, Sansad Marg, New Delhi – 110 001, India
Tel. No.:	91-11-23341484/ 2334723/ 23347234
Regional Sales Office :	Located at: · Ahmedabad · Bangalore · Bhopal · Bhubaneshwar · Chennai · Jaipur · Kochi · Kolkata · Lucknow · Mumbai · Nagpur · New Delhi · Pune · Jamshedpur · Secunderabad
Overseas Office :	Located at: · Germany · United Arab Emirates · Kenya · Lao PDR · Malaysia · Singapore · Vietnam

DIRECTORS

AS ON 31.03.2013

Name :	Mr. Sanjay Kirloskar
Designation :	Chairman and Managing Director
Qualification :	Bachelor of Science (M.E), Illinois Inst. of Tech. USA
Date of Appointment :	02.05.1983
Name :	Mr. Vikram Kirloskar
Designation :	Director
Qualification :	Bachelor of Science (Mech.) MIT, USA
Date of Appointment :	06.06.2001
Name :	Mr. M. S. Kirloskar
Designation :	Director
Name :	Mr. S. N. Inamdar
Designation :	Director
Name :	Mr. Rahul Kirloskar
Designation :	Director
Name :	Mr. Udipi Vasudeva Rao
Designation :	Director
Name :	Mr. P. S. Jawadekar
Designation :	Director
Name :	Mr. J. R. Sapre
Designation :	Whole Time Director
Qualification :	Bachelor of Science
Date of Appointment :	01.04.2002
Name :	Mr. A. N. Alawani
Designation :	Director
Name :	Mrs. Lalita D. Gupte
Designation :	Director
Name :	Mr. Pratap B. Shirke
Designation :	Director
Name :	Mr. Alok S. Kirloskar
Designation :	Director (w.e.f.18.07.2012)

KEY EXECUTIVES

Name :	Mr. Sandeep Phadnis
Designation :	Company Secretary (w.e.f. 04.04.2013)

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
(1) Indian
Individuals / Hindu Undivided Family	30912499	38.95
Bodies Corporate	19329956	24.36
Sub Total	50242455	63.31
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	50242455	63.31
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	3628391	4.57
Financial Institutions / Banks	91143	0.11
Insurance Companies	3788389	4.77
Foreign Institutional Investors	6457394	8.14
Sub Total	13965317	17.60
(2) Non-Institutions
Bodies Corporate	2263866	2.85
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	10636873	13.40
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	2055232	2.59
Any Others (Specify)	194708	0.25
Non Resident Indians	187033	0.24
Clearing Members	7675	0.01
Sub Total	15150679	19.09
Total Public shareholding (B)	29115996	36.69
Total (A)+(B)	79358451	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	79358451	0.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in providing global fluid management solutions and also engaged in manufacturing and exporting of centrifugal pumps and valves.

Products/ Services :

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

PRODUCTION STATUS (AS ON 31.03.2011)

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

@ Includes 56 for own use.

@@ Includes 11 for own use.

* Per annum on single shift basis.

Notes

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

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

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

GENERAL INFORMATION

No. of Employees :

Information declined by the management

Bankers :

• Bank of India
• Canara Bank
• HDFC Bank Limited
• ICICI Bank Limited
• Citibank N.A.
• Credit Agricole Corporate and Investment Bank

Facilities :

Secured Loan	31.03.2013 (Rs. in millions)	31.03.2012 (Rs. in millions)
LONG TERM BORROWINGS
(a) Term loans from banks
External commercial borrowing from Credit Agricole Corporate and Investment Bank Terms of loan: Loan is secured by first pari-passu charge on existing and future fixed assets (excluding land and buildings). Amount of loan borrowed is US$ 20 million in March 2010 and carries interest rate of US$ LIBOR + 2.55% p.a. Loan is repayable as under. 1^st installment - 30% US$ 6 Million at the end of two years from the first drawdown 2^nd installment - 30% US$ 6 Million at the end of three years from the first drawdown 3^rd installment - 40% US$ 8 Million at the end of four years from the first drawdown	0.000	400.668
SHORT TERM BORROWINGS
(a) Loans repayable on demand from banks
(i) Cash / export credit facilities	962.416	1692.666
(ii) Working capital demand Loans Nature of security: Both the loans are secured by hypothecation of all current assets of the company.	217.160	0.000
Total	1179.576	2093.334

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

CAPITAL STRUCTURE

AS ON 31.03.2013

Authorised Capital :

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

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
79358451	Equity Shares	Rs.2/- each	Rs.158.717 Millions

Reconciliation of share capital

Particulars	As at 31^st March, 2013
	No. of Shares	Amount (Rs. in millions)
Shares outstanding at the beginning of the year	79339701	158.679
Shares Issued during the year under ESOS	18750	0.038
Shares outstanding at the end of the year	79358451	158.717

Rights of equity shareholder:

The company has only one class of equity shares, having par value of Rs.2/- per share. Each holder of equity share is entitled to one vote per share and has a right to receive dividend as recommended by the board of directors subject to the necessary approval from the shareholders. 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.

For the year ended March 31, 2013 the board of directors has proposed dividend of Rs.2/- per share subject to shareholders' approval.

Details of shareholders holding more than 5% shares

Name of the shareholder	As at 31^st March, 2013
	No. of Shares	% of Holding
Kirloskar Industries Limited	18988038	23.93
Mr. Sanjay Chandrakant Kirloskar *	15801653	19.91
Mrs. Pratima Sanjay Kirloskar	13732300	17.30
Reliance Capital Trustee Company Limited	4815291	6.07

* includes1624615, 2.05% shares held in the capacity of a trustee.

Shares reserved for Employee Stock Option Scheme (ESOS)

Particulars	As at 31^st March, 2013
	No. of Shares	% of Holding
Shares reserved for ESOS scheme	5212315	10.425

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	158.717	158.679	158.677
(b) Reserves & Surplus	7626.859	7377.619	7275.705
(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)	7785.576	7536.298	7434.382
(3) Non-Current Liabilities
(a) Long-term borrowings	49.684	455.099	712.868
(b) Deferred tax liabilities (Net)	0.000	0.000	46.736
(c) Other long term liabilities	810.965	979.757	958.796
(d) Long-term provisions	157.650	152.817	135.178
Total Non-current Liabilities (3)	1018.299	1587.673	1853.578
(4) Current Liabilities
(a) Short term borrowings	2233.364	2773.657	2503.035
(b) Trade payables	4522.467	4124.519	5579.842
(c) Other current liabilities	3107.268	2870.617	3326.579
(d) Short-term provisions	414.804	456.357	587.110
Total Current Liabilities (4)	10277.903	10225.150	11996.566
TOTAL	19081.778	19349.121	21284.526
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	3070.444	2797.548	2756.438
(ii) Intangible Assets	19.726	31.811	40.312
(iii) Capital work-in-progress	74.258	360.071	200.304
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	2149.437	2149.432	1673.263
(c) Deferred tax assets (net)	40.994	25.995	0.000
(d) Long-term Loan and Advances	1415.645	1387.339	1593.439
(e) Other Non-current assets	595.487	881.009	1584.488
Total Non-Current Assets	7365.991	7633.205	7848.244
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	1833.056	2099.616	1927.488
(c) Trade receivables	3552.749	2980.483	4493.389
(d) Cash and cash equivalents	175.234	205.336	576.635
(e) Short-term loans and advances	2113.273	2166.012	3001.740
(f) Other current assets	4041.475	4264.469	3437.030
Total Current Assets	11715.787	11715.916	13436.282
TOTAL	19081.778	19349.121	21284.526

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Revenue from operations	18723.979	17818.761	19468.850
		Other Income	69.995	462.788	128.511
		TOTAL (A)	18793.974	18281.549	19597.361
Less	EXPENSES
		Cost of materials consumed	9701.915	9737.108	8859.198
		Purchases of Stock-in-Trade	3162.021	3169.316	4737.340
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	340.490	(245.464)	(165.124)
		Employee benefits expense	1496.764	1509.775	1351.465
		Other expenses	2610.122	2931.545	3033.046
		TOTAL (B)	17311.312	17102.280	17815.925
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1482.662	1179.269	1781.436
Less	FINANCIAL EXPENSES (D)		442.722	536.996	453.082
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1039.940	642.273	1328.354
Less/ Add	DEPRECIATION/ AMORTISATION (F)		320.462	302.617	300.144
	PROFIT BEFORE TAX (E-F) (G)		719.478	339.656	1028.210
Less	TAX (H)		285.001	27.769	414.610
	PROFIT AFTER TAX (G-H) (I)		434.477	311.887	613.600
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1241.392	1142.469	905.060
Less	APPROPRIATIONS
		Proposed Dividend	158.717	158.679	277.685
		Dividend distribution tax	24.592	23.096	37.146
		Transfer to General Reserve	43.448	31.189	61.360
	BALANCE CARRIED TO THE B/S		1449.112	1241.392	1142.469
	EARNINGS IN FOREIGN CURRENCY
		F.O.B. Value of goods exported	803.793	987.173	1510.874
		Services rendered/Civil work	129.166	165.854	315.730
		Others	611.489	6.368	6.622
	TOTAL EARNINGS		1544.448	1159.395	1833.226
	IMPORTS
		Raw Materials and Components	410.198	698.600	1979.700
		Capital Goods	62.670	30.741	46.297
	TOTAL IMPORTS		472.868	729.341	2025.997
	Earnings Per Share (Rs.)		5.47	3.93	7.73

QUARTERLY RESULTS

PARTICULARS	30.06.2013
Type	1^st Quarter
Net Sales	4258.200
Total Expenditure	3954.100
PBIDT (Excl OI)	304.100
Other Income	13.300
Operating Profit	317.400
Interest	91.200
Exceptional Items	(88.200)
PBDT	138.100
Depreciation	85.800
Profit Before Tax	52.300
Tax	17.900
Provisions and contingencies	0.000
Profit After Tax	34.400
Extraordinary Items	0.000
Prior Period Expenses	0.000
Other Adjustments	0.000
Net Profit	34.400

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	2.31	1.71	3.13
Net Profit Margin (PBT/Sales)	(%)	3.84	1.91	5.28
Return on Total Assets (PBT/Total Assets}	(%)	4.28	2.02	5.30
Return on Investment (ROI) (PBT/Networth)		0.09	0.05	0.14
Debt Equity Ratio (Total Debt/Networth)		0.29	0.42	0.43
Current Ratio (Current Asset/Current Liability)		1.14	1.15	1.12

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	158.677	158.679	158.717
Reserves & Surplus	7275.705	7377.619	7626.859
Net worth	7,434.382	7,536.298	7,785.576
long-term borrowings	712.868	455.099	49.684
Short term borrowings	2503.035	2773.657	2233.364
Total borrowings	3,215.903	3,228.756	2,283.048
Debt/Equity ratio	0.433	0.428	0.293

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)
Revenue from operations	19468.850	17818.761	18723.979
		(8.476)	5.080

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Revenue from operations	19468.850	17818.761	18723.979
Profit	613.600	311.887	434.477
	3.15%	1.75%	2.32%

LOCAL AGENCY FURTHER INFORMATION

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)	Yes
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	No
32) PAN of Proprietor/Partner/Director, if available	No
33) Voter ID No of Proprietor/Partner/Director, if available	No
34) External Agency Rating, if available	Yes

LITIGATION DETAILS

CASE DETAILS

BENCH:-BOMBAY

Presentation Date:-					10/06/2013
	Stamp No.:-	FAST/15591/2013	Filing Date:-	10/06/2013		Reg. No.:-	FA/1388/2013	Reg. Date:-	30/09/2013

Petitioner:-

LUPIN LIMITED

Respondent:-

KIRLOSKAR BROTHERS LIMITED

Petn.Adv.:-

PS LEGAL

Resp.Adv.:-

NACHIKET VILOL KHALADKAR (I3261)

District:-

PUNE

Bench:-	SINGLE
Status:-	Pre-Admission

Next Date:-

19/03/2014

Stage:-

APPEALS FOR ADMISSION - FRESH [CIVIL SIDE MATTERS]

Coram:-

ACCORDING TO SITTING LIST

Last Date:-

16/12/2013

Stage:-

FOR ADMISSION - FRESH (FIRST APPEALS)

Last Coram:-

HON'BLE MRS. JUSTICE MRIDULA BHATKAR

Act :-

C.P.C.- (Non-Interlocutory Order)

Under Section:-

96

Transfer of Property Act

UNSECURED LOAN

PARTICULARS	31.03.2013 (Rs. in millions)	31.03.2012 (Rs. in millions)
LONG TERM BORROWINGS
From others
(a) Interest free loan under sales tax deferral scheme Terms of loans: 2.579 millions to be repaid in 5 equal yearly installments of Rs.0.516 million starting from March 2010 and Rs.52.883 millions to be repaid in 9 yearly installments starting from April 2013.	49.684	54.431
SHORT TERM BORROWINGS
(a) Foreign currency short term loans and advances from banks
(i) Citibank N.A. - FCNRB	933.788	879.122
(b) Rupee short term loans and advances from banks
(i) Bank of India	0.000	201.869
c) Loans and advances from related parties
(i) Loan from subsidiary company Terms of loan: Loan carries interest @ 10% per annum	120.000	0.000
Total	1103.472	1135.422

INDEX OF CHARGES:

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10239602	02/09/2010	937,800,000.00	CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK	168, ROBINSON ROAD, # 22-01, CAPITAL TOWER, SINGAPORE, 068912, SINGAPORE	A94550571
2	10050248	30/03/2007	218,100,000.00	CANARA BANK	INDUSTRIAL FINANCE BRANCH, MG ROAD, CAMP, PUNE, MAHARASHTRA - 411001, INDIA	A15042278
3	90087290	14/05/2005	500,000,000.00	CANARA BANK	INDUSTRIAL FINANCE BRANCH, CAMP, PUNE, MAHARASHTRA - 411001, INDIA	-
4	90087149	11/02/2005	2,000,000.00	EXPORT-IMPORT BANK OF INDIA	CENTRE ONE BUILDING; FLOOR 21, WORLD TRADE CENTRE COMPLEX; CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	-
5	80022457	12/12/2011 *	18,000,000,000.00	BANK OF INDIA	1162/6, SHIVAJI NAGAR, UNIVERSITY ROAD, NEAR OBSERVATORY, PUNE, MAHARASHTRA - 411005, INDIA	B29196706
6	90086854	26/06/2004	250,000,000.00	CANARA BANK	INDUSTRIAL FINANCE BRANCH, CAMP, PUNE, MAHARASHTRA - 411001, INDIA	-
7	90086670	14/02/2004	400,000,000.00	CANARA BANK	INDUSTRIAL FINANCE BRANCH, CAMP, PUNE, MAHARASHTRA - 411001, INDIA	-
8	90086566	28/10/2003	80,000,000.00	BANK OF INDIA	PUNE CORPORATE BANKING BRANCH, UNIVERSITY ROAD, PUNE, MAHARASHTRA - 411005, INDIA	-
9	90086486	07/08/2003	30,100,000.00	CANARA BANK	INDUSTRIAL FINANCE BRANCH, CAMP, PUNE, MAHARASHTRA - 411001, INDIA	-
10	90086417	05/06/2003	8,900,000.00	CANARA BANK	INDUSTRIAL FINANCE BRANCH, CAMP, PUNE, MAHARASHTRA - 411001, INDIA	-
11	90086041	14/03/2002	256,300,000.00	CANARA BANK	INDUSTRTIAL FINANCE BRANCH, PUNE, MAHARASHTRA - 411001, INDIA	-
12	90085961	21/12/2001	149,500,000.00	BANK OF INDIA	INDUSTRIAL FINANCE BANKING BRANCH, SHIVAJINAGAR, PUNE, MAHARASHTRA - 411005, INDIA	-
13	90085875	12/09/2001	7,000,000.00	CANARA BANK	INDUSTRTIAL FINANCE BRANCH, PUNE, MAHARASHTRA - 411001, INDIA	-
14	90088243	05/01/2000	5,000,000.00	CANARA BANK	INDUSTRIAL FINANCE BRANCH, CAMP, PUNE, MAHARASHTRA - 411001, INDIA	-
15	90085010	05/03/1999	20,000,000.00	BANK OF INDIA	PUNE CORPORATE BANKING BRANCHJ, LIC BUILDING; 6/7; SHIVAJIAGAR, PUNE, MAHARASHTRA - 411005, INDIA	-
16	90088125	30/07/1998	70,000,000.00	BANK OF INDIA	70/80; M.G. ROAD, FORT, BOMBAY, MAHARASHTRA - 400023, INDIA	-
17	90084809	04/07/2001 *	1,720,000,000.00	BANK OF INDIA	PUNE CORPORATE BANKING BRANCH, LIC BUILDING; 6/7 SHIVAJINAGAR, PUNE, MAHARASHTRA - 411005, INDIA	-
18	90084766	21/01/1998	1,012,000,000.00	CANARA BANK	LAXMI ROAD BRANCH, CAMP, PUNE, MAHARASHTRA - 411030, INDIA	-
19	90084670	06/08/1997	70,000,000.00	THE INDUSTRIAL CREDIT AND INVESTMENT CORPO. OF INDIA	163; BACKBAY RECLAMATION, BOMBAY, MAHARASHTRA - 400020, INDIA	-
20	90084657	29/10/1997 *	1,520,000,000.00	BANK OF INDIA	PUNE CORPORATE BANKING BRANCH, LIC BUILDING; 6/7; SHIVAJINAGAR, PUNE, MAHARASHTRA - 411005, INDIA	-
21	90084596	25/11/1997 *	60,000,000.00	THE INDUSTRIAL CREDIT AND INVESTMENT CORPO. OF INDIA	163; BACKBAY RECLAMATION, BOMBAY, MAHARASHTRA - 400020, INDIA	-
22	90084447	23/04/1996	2,475,500.00	BANK OF INDIA	INDUSTRIAL FINANCE BRANCH, LIC BUILDING; 6/7; SHI VAJINAGAR, PUNE, MAHARASHTRA - 411005, INDIA	-
23	90084443	11/04/1996	1,265,000,000.00	BANK OF INDIA	PUNE CORPORATE BANKING BRANCH, LIC BUILDING; 6/7; SHIVAJINAGAR, PUNE, MAHARASHTRA - 411005, INDIA	-
24	90084441	10/04/1996	6,688,800.00	BANK OF MAHARASHTRA	INDUSTRIAL FINANCE BRANCH, SADASHIV VILAS BUILDING; SHIVAJINAGAR, PUNE, MAHARASHTRA - 411005, INDIA	-
25	90084439	08/04/1996	1,000,000.00	BANK OF INDIA	INDUSTRIAL FINANCE BRANCH, LIC BUILDING; 6/7; SHIVAJINAGAR, PUNE, MAHARASHTRA - 411005, INDIA	-
26	90084415	21/03/1996	4,210,915.00	BANK OF INDIA	PUNE INDUSTRIAL FINANCE BRANCH, LIC BUILDING; 6/7; SHIVAJINAGAR, PUNE, MAHARASHTRA - 411005, INDIA	-
27	90084411	14/03/1996	6,513,000.00	THE UNITED WESTERN BANK LIMITED	TILAK ROAD BRANCH, PUNE, MAHARASHTRA - 411002, INDIA	-
28	90084393	16/02/1996	3,515,400.00	CANARA BANK	LAXMI ROAD BRANCH, CAMP, PUNE, MAHARASHTRA - 411002, INDIA	-
29	90084369	20/12/1995	32,000,000.00	BANK OF INDIA	PUNE CORPORATE BANKING BRANCH, LIC BUILDING; 6/7; SHIVAJINAGAR, PUNE, MAHARASHTRA - 411005, INDIA	-
30	90084319	01/09/1995	17,500,000.00	THE UNITED WESTERN BANK LIMITED	TILAK ROAD BRANCH, PUNE, MAHARASHTRA - 411030, INDIA	-
31	90084294	19/07/1995	10,000,000.00	CANARA BANK	LAXMI ROAD BRANCH, PUNE, MAHARASHTRA - 411030, INDIA	-
32	90084224	31/01/1996 *	40,000,000.00	THE INDUSTRIAL CREDIT AND INVESTMENT CORPO. OF INDIA	163; BACKBAY RECLAMATION, BOMBAY, MAHARASHTRA - 400020, INDIA	-
33	90084221	12/01/1996 *	40,000,000.00	THE INDUSTRIAL CREDIT AND INVESTMENT CORPO. OF INDIA	163; BACKBAY RECLAMATION, BOMBAY, MAHARASHTRA - 40 0020, INDIA	-
34	90087798	01/09/1993	9,500,000.00	THE UNITED WESTERN BANK LIMITED	TILAK ROAD BRANCH, PUNE, MAHARASHTRA - 411030, INDIA	-
35	90083928	10/12/1992	3,000,000.00	BANK OF MAHARASHTRA	INDUSTRIAL FINANCE BRANCH, 1183A; SADASHIV VILAS; F.C. ROAD, PUNE, MAHARASHTRA - 411005, INDIA	-
36	90083915	03/11/1992	19,000,000.00	STATE BANK OF INDIA	INDUSTRIA L FINANCE BRANCH, TARA CHAMBERS; BOMBAY PUNE ROAD, PUNE, MAHARASHTRA, INDIA	-
37	90083913	29/10/1992	45,000,000.00	STATE BANK OF INDIA	INDUSTRIA L FINANCE BRANCH, TARA CHAMBERS; BOMBAY PUNE ROAD, PUNE, MAHARASHTRA, INDIA	-
38	90083902	08/10/1992	5,000,000.00	BANK OF MAHARASHTRA	INDUSTRIAL FINANCE BRANCH, PUNE, MAHARASHTRA - 411005, INDIA	-
39	90083888	21/08/1992	1,654,500.00	CANARA BANK	LAXMI ROAD BRANCH, CAMP, PUNE, MAHARASHTRA - 411002, INDIA	-
40	90083880	31/07/1992	3,000,000.00	CANARA BANK	LAXMI ROAD BRANCH, PUNE, MAHARASHTRA - 411002, INDIA	-
41	90083864	01/02/1993 *	40,000,000.00	THE INDUSTRIAL CREDIT AND INVESTMENT CORPO. OF INDIA	163; BACKBAY RECLAMATION, BOMBAY, MAHARASHTRA - 400020, INDIA	-
42	90083863	04/11/1992 *	40,000,000.00	THE INDUSTRIAL CREDIT AND INVES. CORP. OF INDIA LIMITED	163; BACKBAY RECLAMATION, BOMBAY, MAHARASHTRA - 400020, INDIA	-
43	90083841	07/09/1992 *	40,000,000.00	THE INDUSTRIAL CREDIT AND INVESTMENT CORPO. OF INDIA	163; BACKBAY RECLAMATION, BOMBAY, MAHARASHTRA - 400020, INDIA	-
44	90083823	27/01/1992	212,200.00	CANARA BANK	LAXMI ROAD BRANCH, CAMP, PUNE, MAHARASHTRA - 4110 02, INDIA	-
45	90083820	14/09/1992 *	538,000,000.00	BANK OF INDIA	INDUSTRIAL FINANCE BRANCH, LIC BUILDING; 6/7; SHI VAJINAGAR, PUNE, MAHARASHTRA - 411005, INDIA	-
46	90083808	17/12/1991	175,700.00	CANARA BANK	LAXMI ROAD BRANCH, PUNE, MAHARASHTRA - 411002, INDIA	-
47	90083799	28/10/1991	2,500,000.00	THE INDUSTRIAL CREDIT AND INVESTMENT CORPO. OF INDIA	163; BACKBAY RECLAMATION, BOMBAY, MAHARASHTRA - 400020, INDIA	-
48	90083783	31/08/1991	731,300.00	CANARA BANK	LAXMI ROAD BRANCH, PUNE, MAHARASHTRA - 41102, INDIA	-
49	90083773	12/08/1991	654,600.00	CANARA BANK	LAXMI ROAD BRANCH, PUNE, MAHARASHTRA - 411002, INDIA	-
50	90083766	04/07/1991	353,000.00	CANARA BANK	LAXMI ROAD BRANCH, CAMP, PUNE, MAHARASHTRA - 411002, INDIA	-
51	90083738	17/08/1992 *	3,193,705.00	THE INDUSTRIAL CREDIT AND INVES. CORP. OF INDIA LIMITED	163; BACKBAY RECLAMATION, BOMBAY, MAHARASHTRA - 400020, INDIA	-
52	90083732	19/02/1991	3,000,000.00	BANK OF MAHARASHTRA	INDUSTRIAL FINANCE BRANCH, 1183-A; SHIVAJINAGAR; F.C. ROAD, PUNE, MAHARASHTRA - 411005, INDIA	-
53	90083730	15/02/1991	3,000,000.00	BANK OF MAHARASHTRA	INDUSTRIAL FINANCE BRANCH, 1183-A; SHIVAJINAGAR; F.C. ROAD, PUNE, MAHARASHTRA - 411005, INDIA	-
54	90083727	02/02/1991	11,200,000.00	CANARA BANK	LAXMI ROAD BRANCH, PUNE, MAHARASHTRA - 411002, INDIA	-
55	90083668	05/02/1991 *	12,117,449.00	THE INDUSTRIAL CREDIT AND INVESTMENT CORPO. OF INDIA	163; BACKBAY RECLAMATION, BOMBAY, MAHARASHTRA - 40 0020, INDIA	-
56	90083656	25/02/1990	109,400.00	THE UNITED WESTERN BANK LIMITED	TILAK ROAD BRANCH, PUNE, MAHARASHTRA - 411030, INDIA	-
57	90083639	14/12/1989	7,500,000.00	CANARA BANK	LAXMI ROAD BRANCH, NEAR GOKHALE HALL, PUNE, MAHARASHTRA - 411030, INDIA	-
58	90083636	28/11/1989	2,500,000.00	BANK OF MAHARASHTRA	INDUSTRIAL FINANCE BRANCH, SHIVAJINAGAR, PUNE, MAHARASHTRA - 411005, INDIA	-
59	90083633	09/11/1989	96,600.00	THE UNITED WESTERN BANK LIMITED	TILAK ROAD BRANCH, PUNE, MAHARASHTRA - 411030, INDIA	-
60	90083620	30/08/1989	2,477,902.00	THE UNITED WESTERN BANK LIMITED	TILAK ROAD BRANCH, PUNE, MAHARASHTRA - 411030, INDIA	-
61	90083594	01/03/1989	219,000.00	THE UNITED WESTERN BANK LIMITED	TILAK ROAD BRANCH, PUNE, MAHARASHTRA - 411030, INDIA	-
62	90083587	09/02/1989	358,300.00	THE UNITED WESTERN BANK LIMITED	TILAK ROAD BRANCH, PUNE, MAHARASHTRA - 411030, INDIA	-
63	90083583	04/02/1989	26,500,000.00	CANARA BANK	LAXMI ROAD BRANCH, NEAR GOKHALE HALL, PUNE, MAHARASHTRA - 411030, INDIA	-
64	90083579	27/01/1989	1,000,000.00	THE UNITED WESTERN BANK LIMITED	TILAK ROAD BRANCH, PUNE, MAHARASHTRA - 411030, INDIA	-
65	90087630	27/01/1989	1,000,000.00	BANK OF MAHARASHTRA	INDUSTRIAL FINANCE BRANCH, SHIVAJINAGAR, PUNE, MAHARASHTRA - 411005, INDIA	-
66	90083578	14/01/1989	570,300.00	THE UNITED WESTERN BANK LIMITED	TILAK ROAD BRANCH, PUNE, MAHARASHTRA - 411030, INDIA	-
67	90083576	10/01/1989	1,800,000.00	BANK OF INDIA	B-A; DR. COYAJI ROAD, CAMP, PUNE, MAHARASHTRA - 411001, INDIA	-
68	90083569	20/12/1988	28,300.00	THE UNITED WESTERN BANK LIMITED	TILAK ROAD BRANCH, PUNE, MAHARASHTRA - 411030, INDIA	-
69	90083438	23/09/1986	1,500,000.00	CANARA BANK	93/2; BUDHWAR PETH LAXMI ROAD, PUNE, MAHARASHTRA - 411002, INDIA	-
70	90083408	08/04/1993 *	7,500,000.00	BANK OF INDIA	BOMBAY MAIN BRANCH, 70-80; M.G. ROAD, BOMBAY, MAHARASHTRA - 400001, INDIA	-
71	90083293	23/01/1991 *	15,000,000.00	BANK OF INDIA	B-A; DR. COYAJI ROAD, CAMP, PUNE, MAHARASHTRA - 411001, INDIA	-
72	90083271	23/01/1991 *	50,700,000.00	BANK OF INDIA	B-A; DR. COYAJI ROAD, CAMP, PUNE, MAHARASHTRA - 411001, INDIA	-

* Date of charge modification

CORPORATE INFORMATION

Subject is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Subject is engaged in providing global fluid management solutions and is the largest manufacturer and exporter of centrifugal pumps and valves from India. The core businesses of the company are large infrastructure projects (Water Supply, Power Plants, and Irrigation), Project and Engineered Pumps, Industrial Pumps, Agriculture and Domestic Pumps, Valves, Motors and Hydro turbines.

OPERATIONS

The revenue from operations of the Company for the year was Rs.18720.000 millions, which is more than 5.08% compared to the previous year.

This year, their focus continued to be on the products business. They are catering to a broad base of utility and process pumping applications in the Products Business. In the Projects Business, while being selective on booking new orders, they are strengthening their project management and execution capabilities. They have aligned their marketing functions to provide comprehensive pumping solutions to their customers. Their manufacturing plants are geared up to the growing demand from the products business on account of productivity improvement initiatives.

In both Products and Projects businesses, their focus continues to be on value added solutions. They augmented their capability to deliver small pumps by commissioning a new plant in Sanand, Gujarat. At the same time, they are re-engineering their small pump operation’s supply chain to make it leaner and more responsive. In the current year, they commissioned spares warehouse and refurbishment centers and appointed service and spares dealers to improve the reach and responsiveness of the after sales support.

The economic scenario in the country continues to be challenging. In the coming year, they will focus on improving margins and cash generation.

Under Section 133A of the Income Tax Act, the Income Tax department carried out a survey at the Company premises in January, 2013. Based on the findings of the survey, the department has raised additional tax liability on the Company, which has been paid during the quarter. The short provision for tax in respect of earlier years, consequent to the additional tax claim, has been appropriately disclosed by the Company in the financial for the year ended on March 31, 2013.

SUBSIDIARY COMPANIES

During the year, a Scheme of Arrangement and Amalgamation of Hematic Motors Private Limited with Kirloskar Constructions and Engineers Limited (the 'Scheme') was filed with the Hon’ble High Courts of Judicature at Bombay and Madras.

The Board of Directors of the Company have passed a resolution on November 29, 2012 approving the Scheme. The appointed date in terms of the Scheme is April 1, 2012. The Scheme has been approved by Honourable Bombay High Court and approval from Honourable Madras High Court is awaited. The effect of the Scheme will be taken into consideration from the appointed date after approval from Honourable Madras High Court.

Micawber 784 (Proprietary) Limited, subject’s step down subsidiary through Wholly Owned Subsidiary Company - Kirloskar Brothers International B.V. (KBI BV), Netherlands, has acquired balance 10% holding in Braybar Pumps (Proprietary) Limited (Braybar) on November 1, 2012. As a result, Braybar has become 100% subsidiary of Micawber 784 (Proprietary) Limited.

MANAGEMENT DISCUSSION AND ANALYSIS 2012 – 2013

World Economy

The International Monetary Fund (IMF) has stated that global growth will strengthen gradually in 2013. IMF expects the global economy to grow by 3.3 percent this year and 4 percent in 2014. The report stressed that recovery will be slow and that policies must address downside risks.

The IMF has downgraded its near-term forecast for the euro area, with the region now expected to contract slightly in 2013. The report observed that even though policy actions have reduced risks and improved financial conditions for governments and banks in the peripheral economies, those had not yet translated into improved borrowing conditions for the private sector. The IMF forecasts growth of 2 percent in the United States on account of a supportive financial market environment and the turnaround in the housing market. Japan is facing recession, however the economy may bounce back on account of the stimulus package and easing of monetary policies. Emerging market and developing economies are expected to grow by 5.5 percent this year. For emerging market and developing economies, the report underscored the need to rebuild flexible policy for sustained growth. However, the World Trade Organization (WTO) warned that a long period of weak economic growth may lead to increased protectionism.

The WTO expects the volume of exports and imports to increase at a slightly faster rate than the 2.0 percent recorded in 2012, which is well below the long-term average of 5.3 percent. However, its new forecast for growth of 3.3 percent is below its previous projection of 4.5 percent. The WTO said that weak demand from Europe will once again dampen export growth but this may be offset by Chinese growth. According to the World Bank, the average crude oil prices are expected to drop by around 4 percent in 2013-14.

Indian Economy

India’s Gross Domestic Product (GDP) grew by 5.5 percent in 2012-2013. This growth rate is the lowest in the last 3 years. A weak performance by the manufacturing, agriculture and services sectors slowed the pace of economic expansion in the current year. The GDP is expected to grow between 6 and 6.5 percent in 2013-14.

Business sentiments remain weak despite reform initiatives and consumer confidence is still low. Weak industrial performance is likely to persist on account of factors like lackluster external demand and absence of reliable power supply source amidst coal shortages. Infrastructure projects in power and road construction are held back by problems like coal supply, environmental clearances, land acquisition and financial closure. Last year, the Government worked towards achieving the revised fiscal deficit target of 5.3 percent of GDP by restricting both planned and non-planned expenditure on the back of significant shortfall in tax revenue. The Reserve Bank of India (RBI) stated that gap in output may get addressed in 2013-14 although at a slow pace because of revival in investment and consumption demand.

In view of the high inflation level, the RBI may undertake only attuned measures through its monetary policy. Average Wholesale Price Index (WPI) inflation is expected to moderate from 7.5 percent in 2012-13 to 7.0 percent in 2013- 14. Subsequently, the Central Bank has stated that improved global liquidity and recent policy reforms have boosted Foreign Institutional Investment (FII) inflows leading to the booming equity markets and revival of the Initial Public Offering (IPO) market.

Global Pump Market Outlook

Global demand for pumps is forecast to rise 7 percent per year through 2016 to $75.4 billion. The market size for complete pumps amounts to around $42 billion in 2012 (at current prices and 2010 exchange rates), with $11.5 billion in Europe, $4.9 billion in Africa and Middle East, $17.3 billion in Asia and $8.3 billion in America. Market growth is projected to be fastest in Africa and the Middle East at 8.1 percent per annum to 2017, compared with 5.1 percent in America, 4.5 percent in Europe and 6.2 percent in Asia.

There will be strong demand for pumps from developing countries like China and India due to industrialisation and investment in water and power segments. Middle East Asian countries may see growth in oil and gas markets as a result of strong drilling activity. In the United States, the boom in hydraulic fracturing will lead to increase in pump demand. The demand for process pumps in manufacturing industries may witness a strong demand because of investments and growing production in many process industries.

An increased demand for access to water supply and sanitation in developing countries will drive the pump demand in water based infrastructure market. The developed nations propose to repair and upgrade their old water infrastructure. This will lead to good replacement demand for pumps in developed countries.

Indian Pump Industry

The Indian pump industry is estimated to be Rs.75000.000 millions in 2012-13 and is likely to grow at 6.5 percent year on year to reach Rs.140000.000 millions by 2017-18. The market demand is driven by Water, Irrigation, Oil and Gas and Industry segments. The market to an extent will be influenced by decisions and policies taken for infrastructure projects, especially power and irrigation projects. Insufficient rains and falling water tables have led to demand for improvement in hydraulics and pump efficiency. The rising cost of fossil fuels has positively influenced the demand for pumps driven by renewable energy sources. It is estimated that approximately 30% of total energy produced is consumed by pumps. Thus, energy audit is getting popular among users of industrial pumps on account of increasing pressure to reduce energy consumption. Subsequently, there will be an increased demand for energy efficient pumps.

Kirloskarvadi

Kirloskarvadi factory integrated its environment, health and safety management system with sustainability reporting guidelines (GRI) and the “CII-Code for Ecologically Sustainable Business Growth”. This system is certified to ISO: 14001 and OHSAS:18001. The factory was re-validated for ISO 9001: 2008 in January, 2013.

They accelerated development of new products and subsequent results are encouraging. i-Mission, an innovative approach towards product development is continued with cross functional teams. During the year, they filed 3 patents for innovation and are strengthening their capabilities to manufacture high end products. In order to reap the benefits of improved productivity for all the products of Kirloskarvadi plant, the process of revamping the manufacturing layout is being continued across the factory.

5 Wind Mills were registered for Renewable Energy Certification under Renewable Energy Certification Registry of India and achieved benefits of around 5500 certificates per annum resulting in savings of Rs.8.000 millions for the year 2012-13. Runner-up Award for “Excellence in CSR - Large Enterprises” by Manufacturing Today is another award for their Kirloskarvadi factory.

Dewas and Shirval

Dewas and Shirval factories have adopted principles of lean, sustainability and innovation through which they ensured 99.2 percent availability of equipment and machines in manufacturing shops and 97.3 percent availability of equipment and machines in the foundry. They are able to recycle and reuse 100 percent waste water for gardening purpose.

Radical measures were undertaken to reduce material cost. A host of new products were developed to address the demand of Domestic, Agriculture and Industrial segments. 15 percent of small pumps business’s total sale in 2012-13 came from the new products introduced in 2012-13, thereby demonstrating their commitment to innovation. There are many accolades to the credit of Dewas manufacturing plant like first prize in state level “KAIZEN” and “Quality Circle” competitions organized by CII, Madhya Pradesh, “Best performance in energy conservation (Large manufacturing Units)” and “Energy person of the year” in Kirloskar Group energy conservation competition, to name a few. Their foundry received the prestigious Shri Laxmanrao Kirloskar award for “Foundry of the year 2012” from The Indian Institute of Foundry Men.

Kaniyur

Their Kaniyur plant ramped up production capacity to 20,000 pumps per month by reducing cycle time. Kaniyur plant is 5S certified and won awards in Kaizen, Quality Circle and Skill competitions. New products were developed and well received in the market. Most of the employees in the plant are women showing their commitment towards gender diversity at Kirloskar.

Sanand

A new plant at Sanand, Gujarat was commissioned for manufacturing bore-well submersible pumps. In the first 8 months, production capacity was ramped up to 3,800 pumps per month. The plant has received ISO-9001, ISO-14001 and OHSAS-18001 certifications. Products manufactured in Sanand plant are eligible for BIS marking.

Kondhapuri

The year witnessed largest order booking of Rs.1280.000 millions. Apart from existing customer base from Power and Water sectors, Kondhapuri factory increased its foothold in the Industry sector. The factory garnered new certifications which include Underwriters Laboratories (UL) listing for size 50 to 250 mm Gate Valves and Proof of Design Test qualification on high pressure Butterfly Valve. The factory developed a host of new products like 3800mm Butterfly Valve, Suction Diffuser valves, Triple Duty valves and Glandless Sluice valves with gearbox and channel shoe.

In an effort to boost sustainability and improve the water table, they have installed a rain water harvesting facility at their factory. Wood consumption at the manufacturing plant is reduced and the best practices are replicated at the suppliers end. The plant received first runner up prize for best performance in energy conservation 2011-12 within Kirloskar Group.

Research, Engineering and Development

The focus on new areas led to the design and development of Shut Down Cooling Pump, Primary Coolant Pump and development of special products for high pressure and high temperature applications. New product lines like Triple Duty Valves and Suction Diffuser Valves were developed to cater to the customers of Building and Construction and Industry Sector. A new range of Factory Mutual/Underwriters Laboratories (FM/UL) approved valves were developed. In line with their mission, they developed sustainable and energy efficient products such as the Lowest Life - Cycle Cost (LLC)TM pumps. LLCTM pumps offer benefits like relatively low operating cost, low maintenance cost and higher capability to minimise carbon emissions owing to sustained efficiency over the life.

Global Marketing

Global marketing has been restructured to create better visibility for the organisation in international markets. Certifications such as N and NPT have enhanced their brand position, especially in the European markets. Participation at international exhibitions such as the IFAT in Germany and CII International Engineering and Technology Fair (IETF), conferences and sector specific sessions helped to gather market insights and connect with the customers. A product specific seminar was conducted in Colombo to their advantage. An official launch of the Lowest Life - Cycle Cost (LLC)TM pump was organized at the CII IETF which gave boost to the visibility of the product. In markets such as Egypt, the attention of the press was captured by the timely completion of two pumping stations by subject, in a first in terms of design to execution project.

They acquired several prestigious references in the international markets through their subsidiary company Kirloskar Brothers International. One such example is the opening of the Shard in London, the tallest building in Western Europe, which is protected by their fire fighting pumping solution.

Financial Performance

Total revenue from operations stands at Rs.18590.000 millions as against Rs.17690.000 millions during the previous year, showing a rise of 5 percent.

• Product sector sales have risen by 20 percent over the previous year, while project sector sales have dropped by 11 percent

• Emphasis continues on reducing debtors and inventory

• They continued to be selective with orders and execution to improve the sales mix, which resulted in share of own product sales to total sales going up to 60 percent as against 58 percent in the previous year and civil sales going down to 6 percent as against 9 percent in the previous year

• Composite material cost as percent to sales has decreased to 71 percent in current year from 71.6 percent in the previous year, mainly due to increase in the product sector business

• Total expenditure including depreciation is Rs.4310.000 millions as against Rs.4060.000 millions in the previous year

• Finance cost including bank charges and foreign exchange loss on borrowings is lower at Rs.440.000 millions as against Rs.540.000 millions in the previous year through sustained efforts for reducing working capital and interest cost reduction initiatives

• PBT is at Rs.720.000 millions as against Rs.340.000 millions in the previous year – increase is primarily due to the emphasis on product sector business at higher margin and also due to a hit in the previous year for KCEL claims receivable written-off / provided

• Loan funds have decreased from Rs.3500.000 millions in the previous year to Rs.2680.000 millions in the current year through sustained efforts

• The Gross Current Assets and Net Current Assets have decreased by 3 percent and 6 percent respectively over the previous year due to their continued thrust on improving the quality of the Balance Sheet through improved working capital management

CONTINGENT LIABILITIES:

(Rs. in millions)

PARTICULARS	31.03.2013	31.03.2012
a) Guarantees:
By the company to ICICI Bank Limited on behalf of SPP Pumps Limited, UK, (GBP 7,000,000)	0.000	506.170
By the company to Citi Bank N A. on behalf of SPP Pumps Limited, UK (USD 10,500,000)	572.775	534.135
By the company to Indian Overseas Bank Limited on behalf of Kirloskar Constructions and Engineers Limited, Chennai	500.000	800.000
By the company to Bank of Maharashtra on behalf of Gondwana Engineers Limited	0.000	82.500
By the company to Citi Bank N.A. on behalf of Kirloskar Brothers (Thailand) Limited, (USD 3,000,000]	163.650	152.610
By the company to Citi Bank N.A. on behalf of Kirloskar Brothers Europe B V (USD 5,000,000)	272.750	254.350
By the company to Citi Bank N.A. on behalf of Braybar Pumps (Proprietary) Limited (USD 2,000,000)	109.100	101.740
By the company to Citi Bank N.A. on behalf of Hematic Motors Private Limited(USD 6,000,000) (USD 5,000,000)	327.300	254.350
b) Other money for which the company is contingently liable for
i) Central Excise and Service tax (Matter Subjudice)	667.822	209.270
ii) Sales Tax (Matter Subjudice)	83.440	89.609
iii) Income Tax (Matter Subjudice)	735.173	871.135
iv) Labour Matters (Matter Subjudice)	42.794	40.055
v) Other Legal Cases ( Matter Subjudice )	560.308	560.308
vi) Letters of Credit Outstanding	677.131	1170.034

FIXED ASSETS

Tangible Assets

· Free Hold Land

· Buildings

· Plant and Equipment

· Furniture and Fixtures

· Office Equipments

· Vehicles

· Railway Siding

Intangible Assets

· Computer Software

STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE ENDED 31.12.2013

(Rs. In Millions)

Particulars	Quarter Ended		Nine months ended
	31.12.2013	30.09.2013	31.12.2013
	Unaudited	Unaudited	Unaudited
Income from operations
(a) Net Sales/ Income from Operations (net of excise duty)	4360.450	3962.990	12547.030
(b) Other Operating Income	26.904	53.597	115.061
Total Income from operations (net)	4387.354	4016.587	12662.091
Expenses
a) Cost of materials consumed	2222.035	1830.520	6345.881
b) Purchases of stock-in-trade	653.974	670.655	2033.095
c) Changes in inventories of finished goods, work-in-progress and stock-in-trade	4.485	13.462	21.911
d) Employee benefits expense	374.569	393.568	1135.615
e) Depreciation and amortization expense	90.217	85.408	261.391
f) Other expenses	687.646	561.842	1960.346
Total expenses	4032.926	3685.455	11758.239
Profit /(Loss) from Operations before Other Income, finance costs and exceptional items	354.428	331.132	903.852
Other Income	11.373	15.782	40.492
Profit /(Loss) from ordinary activities before finance costs and exceptional items	365.801	346.914	944.344
Finance costs	107.483	104.693	303.361
Profit /(Loss) from ordinary activities after finance costs but before exceptional Items	258.318	242.221	640.983
Exceptional Item	--	103.689	--191.837
Profit /(Loss) from ordinary activities before tax	258.318	138.532	449.146
Tax expense	61.300	44.700	123.900
Net Profit/(Loss) from ordinary activities after tax	197.018	93.832	325.246
Short provision of income tax on account of earlier years	--	--	--
Extraordinary Items (net of tax expenses)	--	--	--
Net Profit (Loss) for the period	197.018	93.832	325.246
Paid-Up Equity Share Capital (Face value of Rs. 2/- each)	158.717	158.717	158.717
Reserves excluding Revaluation Reserves as per balance sheet of previous accounting year	--
Earnings Per Share (before extraordinary items) (of Rs.2/-each) (Not Annualised)- (Rs.)
Basic	2.48	1.18	4.10
Diluted	2.48	1.18	4.10
Earnings Per Share (after extraordinary items) (of Rs. 2/- each) (Not Annualised) - (Rs.)
Basic	2.48	1.18	4.10
Diluted	2.48	1.18	4.10

NOTE:

Exceptional item represents exchange difference loss / (gain) on revaluation / repayment of borrowings in foreign currency as at the quarter end September 30, 2013 and nine months ended December 31, 2013.

The Limited review of the financial results for the quarter ended December 31, 2013, pursuant to clause 41 of the listing agreement, has been carried out by the statutory auditors.

The above results have been reviewed by the Audit Committee and approved by the Board of Directors at their respective meetings held on January 28, 2014.

Sr. No.	Particular	Quarter Ended		Nine months ended
		31.12.2013	30.09.2013	31.12.2013
		Unaudited	Unaudited	Unaudited
A	PARTICULARS OF SHAREHOLDING
1	Public Shareholding
	- Number of Shares	29115996	29126091	29115996
	- Percentage of Shareholding	36.69	36.70	36.69
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	50242455	50232360	50242455
	- 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)	63.31	63.30	63.31

INVESTOR COMPLAINTS

PARTICULARS	Quarter Ended 31.12.2013
Pending at the beginning of the quarter	0
Received during the quarter	3
disposed off during the quarter	3
Remaining unresolved at the end of the quarter	0

STANDALONE SEGMENT-WISE REVENUE, RESULTS AND CAPITAL EMPLOYED UNDER CLAUSE 41 OF THE LISTING AGREEMENT

(Rs. In Millions)

Particulars	Quarter Ended		Nine months ended
	31.12.2013	30.09.2013	31.12.2013
Segment revenue
a. Pumps	4150.255	3728.639	11937.391
b. Others	267.672	267.696	704.268
Total	4417.927	3996.335	12641.659
Less:
Inter segment revenue	57.477	33.345	94.629
Net sales / Income from operations	4360.450	3962.990	12547.030
Segment Results Profit before tax and finance costs from each segment
a. Pumps	489.040	492.258	1458.503
b. Others	73.940	61.349	157.208
Total	562.980	553.607	1615.711
Less:
i. Finance Costs	107.483	104.693	303.361
ii. Other un-allocable expenditure net of un-allocable income	197.179	310.382	863.204
Total Profit/(Loss) Before Tax	258.318	138.532	449.146
Capital Employed
(Segment Assets - Segment Liabilities)
a. Pumps	5929.683	5317.738	5929.683
b. Others	337.645	303.3044	337.645
c. Unallocated Corporate Assets	4773.387	4913.125	4773.387
Total	11040.715	10533.907	11040.715

PRESS RELEASES

KIRLOSKAR BROTHERS INSTALLS WORLD’S LARGEST WATER PUMPING SYSTEM

Pune, January 23:  

Fluid management company Kirloskar Brothers Limited (KBL) has collaborated with Tata Power to install the world’s largest circulating water pumping system for the latter’s Ultra Modern Power Plant (UMPP) at Mundra.

Coastal Gujarat Power Limited, Tata Power’s wholly-owned subsidiary, which has implemented the 4,000 MW UMPP, requires massive amounts of water to condense the heat generated while producing power. Around 10.5 million litres of water is circulated by the pump sets per minute.

Ravindra Ulangwar, AVP and Head, Power Sector, KBL, said, “The Mundra UMPP is India’s first and most energy efficient coal-based thermal power plant using supercritical technology to create lower greenhouse gas emissions and its main power generation equipment is sourced from Japan and Korea.”

The pumping system is designed to take care of fluctuations in the sea water level due to tidal variations.

The Mundra UMPP will meet 2 per cent of India’s power needs and 16 million domestic, industrial and agricultural consumers in Gujarat, Rajasthan, Maharashtra, Haryana and Punjab will benefit from this project.

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.61.05
UK Pound	1	Rs.100.81
Euro	1	Rs.84.18

INFORMATION DETAILS

Information Gathered by :	NYA
Report Prepared by :	NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	8
--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
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		63

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.