Bharat Forge on financial restructuring path
By Bharat Forge, in its continuing bid towards financ | 25 May 2000
Bharat Forge transferred a total of Rs 97 crore worth of financial assets during 1999-2000, and thereby re-aligned its net worth. This was done through the sale of financial assets resulting in realisation of Rs 20.95 crore, of which Rs 13.33 crore ended up as capital loss. All investments were marked to market, resulting in reduction of net worth Rs 39.24 crore, while loans to subsidiaries was reduced by Rs 19.95 crore and other items by Rs 3.53 crore.
"The process of restructuring the company financially which was begun last year continued this year, and will be complete next year," says Baba Kalyani, chairman of the Kalyani group, the parent of Bharat Forge. The objective of the restructuring is to reduce its baggage of financial investments, increase its return on capital employed, and thereby better the valuation of the company.