General Information

GENERAL INFORMATION Information Name of Company Date of Incorporation Date of Commencement Registered Office & Works

Corporate Office

Telephones Fax E-Mail Web Site Gram Board of Directors

Company Secretary Bankers Auditors Working Day Working Hours No. of Shift Weekly Off Accounting Year Manufacturing Product

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KADVANI FORGE LTD. 01-08-1995 02-08-1995 Kadvani Forge Ltd GIDC Lodhika, Plot no.: G/1326-27, Kalawad Road, P.O. Khirasra, Dist. Rajkot. Gujarat. (INDIA). Pin – 360 003. : Niraj Appartment, 22 New Jagnath, Rajkot. Gujarat. INDIA. Pin – 360 001. : Regd: +91-2827-87264 / 70 / 71. Corp: +91-281-465416. : Regd: +91-2827-87263. Corp: +91-281-466762. : [email protected] [email protected] : WWW.kadvanigroup.com : KADVANI : z Kishor Kadvani Managing Director z Ashok Kadvani Director z Jayant Jumaur Technical Director z Dharmesh Panchani Director z Bhavesh Vegda Director : : Bank of India Kalaria & Sampat : 300 : 8 hours : 3 Shifts : Wednesday : 2002-2003 : _ Connecting Roads _ Craft Shafts _ Cam Shafts _ Rocker Arms _ Steering Knuckle _ Drop Arms _ Shifter Levers Crown Wheel and Pinion _ Universal Joint Cross 1.1

_ Spiders _ Ball Yokes _ Flang _ Hooks _ Shackles _ Links _ Cones _ Shafts _ Tooth _ Pipe Fitting

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Know About The Company History & Development Ever since the evolution of mankind on this on this planet its progress is continuous. From the Stone Age to the present era of high-tech development, one factor i.e. creativity has remained the same. While talking of industrialization and development of revolutionary era in India. We will be dumb and deaf, if we make mistake of neglecting the most basis significant industry i.e. the “Forging Industry”. It is a doorstep to modernization. What Is Kadvani Forge Ltd? KADVANI FORGE LTD. is promoted by an industrial Entrepreneurs Group having a track Record of achievements the character of group by its product & service, a priceless performance asset, achieved its success not by accident, but by sheet hard work, dedication & foresight, by the people who work for it. KADVANI FORGE LTD. was established as a Small Scale Industry and date of it’s Incorporation is August 1.1995 & had received its commencement certificate on August 2,1995. After that in the year 1996-97 it has started its commercial production. Huge potential in the field of foreign evinced great interest & paved the way for KADVANI FORGE LTD. KADVANI FORGE LTD’s plant situated in the outskirts of Rajkot, in the state of Gujarat, incorporates a Full Fledged Forge shop, die shop, Heat Treatment Plant, and Metallurgical Lab all under one roof. KADVANI FORGE LTD., with their skilled, dedicated & experienced team of personnel, caters to the quality demands of customer with timely delivery as per their requirements to diverse Indus tries viz. Automobiles, Tractor, mining, Ea rthmoving, Electric Transmission, machine tool etc. KADVANI FORGE LTD. understand the quality parameters demanded by the leading OEMS & believing in the philosophy of prevention rather than detection, adopts quality, the main tool to every activity undertaken in the plant, right from sources of raw material to final products. Testing carried out at own self- sufficient laboratory, equipped for… Chemical Analysis. Universal Testing-Tensile, elongation, yield paint, reduction in area etc. Impact testing – Charpy / Izod Hardness-Brubekk / Rockwell Macro & Macro structure, Manetic Cract Detection. Dimensional full fledge std. Room with all types of precision instrument. Fabrication of Dies all Tooling is an intricate and Precision job. Forging Drawing are developed & modified to customers. Requerement & suitability got approved.

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KADVANI FORGE LTD. have the expertise & the know- how to develop dies for any type of component to be forged within specified period to fulfil delivery commitments & have the following additional facilities. Tool & Gliter Grincler. Copy Miling Machines. Electric Discharge Machine. KADVANI FORGE LTD’s total installed capacity is 10,000 M/tons per annum & produce forging varying from 0.500kg. To 20kg. Looking to the total quality aspect as well as productivity & timely supplies KADVANI FORGE LTD. have below mentioned facilities: Double acting Polish Hammer of 36KJ. Blow Energy. Double acting Russian Hammer of 110KJ Blow Energy supported by: Full Fledge Heat Treatment facility for normalizing, annealing, solution treatment with precise temperature control system. KADVANI FORGE LTD. manufacture Forgings to customer drawings & specification, in carbon, alloy & stainless steel & supply them in as Forged, Heat-treated, Partially of Fully machined condition. E.g. Connecting Rods, crank shaft, Rocker Arms, Steering Knuckle, Drop arm, Shifter Levers, Crown Wheel & Pinion, Universal joint cross, spiders, Bell Yokes, Flange Yokes, Hokes, Shackles, Cones, Links, Shafts, Tooth, Pipe Fitting. Kadvani Forge Limited was registered in the year 1995 to supply quality forged products to the OEMs. Our production capacity has increased multifold from 960 Tonnes/Year in 1997 to 10,800 Tonnes/Year in 2001. Our qualified & experienced team of professionals achieved quality working conditions at all levels (design, tool room management & execution). We at Kadvani Forge achieved The ISO 9002 certification in January 2000. We have developed 293 different types of functional - non- functional components within a span of 4 years (i.e. one new item / week.). We manufacture various types of components like Connecting Rods, Crank Shafts, Cam Shafts, Gear Blanks, Pinion, Crown Wheel, Gear Shifter Fork, Torque Converter Cover, Universal joint components, Bucket tooth and many more intricate components. In the first year of its operation, the company has marked loss but it is due to the high depreciation and recession period all over the world. In running year, the company has exported its industrial product in U.S.A. and it is well accepted. This export order will minimize the loss of the company. And further the company is hopeful of getting other export orders by their sincere efforts. Company’s strategies pertaining to its production process and to its quality control is well known both domestic and in abroad companies. Thus the company has very bright future in their forging business.

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Objective of Company Objective lie at the very heart of strategy implementation. They identify precisely what must be accomplished each year to achieve the organization’s Strategic goal. In the process, they also provide managers with specific target for the coming year’s performance. The objective of KADVANI FORGE LTD. Are listed below.

Satisfied Customer Prime criteria of the company are smiling customer. The company believes those satisfactory customers are the assets of the company, which keep the business flourished and developed stage by stage and day-by-day. The company understands that this objective cannot be accomplished by accident but by minimizing the customer complaints. So KADVANI FORGE LTD. Will reduce the customer complains by 10% in next 1 year in terms of orders v/s complaints. The company believes that there is only one boss in the company and that is ultimate customer.

Continuous Improvement Quality And Productivity. The company is trying to improve their quality and productivity in order to minimize the loss. KADVANI FORGE LTD. will keep the rejection level (quantity wise) below 2% in the next year. And they will increase the productivity by 10% in the next one year with the help of technology, statistical techniques, manpower, sharing, knowledge and training the subordinates and workers for better work environment. All the operations are under direct supervision of professionals; sure of them having practical experience of over 23 years in the field of forging, assisted by a qualified and experienced team thereby assuring you of quality and precision products. EARNING FOREIGN EXCHANGE FOR THE NATION THROUGH EXPORTS. KADVANI FORGE LTD. Will increase the foreign earnings in the year there is earning in Foreign exchange is $86,744

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Promoter & Managing Group The Doyen of the Kadvani Group Shri Lakhabhai Vithalbhai Kadvani is a well-known personality of Gondal taluka in Rajkot District. He is a born manager who has never taken any formal lessons on management. He has just set some golden rules for the entire group. In the management of business, high standards of quality and in the management of personnel, trust, integrity and proper utilization of the skills have been the main guidelines. His successor Kishor L Kadvani inherited these qualities and added his own values to the business. Besides entrepreneurship he extended his abilities towards various programmes helpful to the society. Initiative, modern approach and materializing unseen visions are his characteristics. Not only did he achieve a high target by becoming a number one agent of LIC of INDIA of Jetpur branch with business of more than 45 Lacks of Rupees (1980) but also he reached out to the physically handicapped people of society. Shri Kishor L Kadvani gave the first finance company from Saurashtra listed in the Bombay Stock Exchange and shortly thereafterintroduced Kadvani Forge Ltd. Within two years of its introduction the company has been accredited for ISO 9002 Quality System. The Third Generation Kadvani, young Mitul Kadvani who is leading the groups venture in IT, aims to make Kadvani Itech an international player in the Information Technology Business. Quality oriented management, business ethics and very high regards about his skilled resources; he creates the right work environment. He assures inspiration as well as quality achievement all the time. To remain ahead of the times are his constant goals.

Kishor Kadvani Ashok Kadvani Jayant Jumaur Dharmesh Panchani Bhavesh Vegda

Managing Director & Chairman Director - Production Director - Technical Director - Quality Assurance Director - Final Inspection & Maintenance

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Form of Organization The following forms of organization carry on MODERN BUSINESS. Forms of Business Organization

Private Enterprise Co-operative sector ·Sole Trade ·Co-operative society ·Partnership firm ·Co-operative store ·Company Org. ->Private company ->Public company

Public sector Enter price ·Government dep. ·Government company ·Statutory Corporation ·Statutory Board or Commission

In India we have adopted the pattern of mixed economy where in we have two distinct sector private enterprise & Public enterprise. Public enterprise means ownership & Management of public & Government i.e. government department, semi Govt. etc. Private enterprise means ownership & management or control by Individual or group of individual. Private Enterprise 1. Sole Trader. 2. Partnership 3. Company ü Public co. ü Private co. Kadvani Forge Ltd is a Public Ltd company.

Definition Of Company The Indian companies act 1956 ,According to case Smith vs. Anderson,1880 15 ch. D. 274 it was observe that “ a company, in board sense, may mean an association of individuals formed for some purpose”. The word ‘Company’ is Derived from Latin, COM=with or together; PAINS=bread. And originally referred to an association of person who took their meal together.

Characteristic 1. 2. 3. 4. 5. 6.

Independent Corporate Existence Perpetual Succession Limited Liability Transferable Share Separate Property Power to Sue and Sued

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Advantage 1. 2. 3. 4. 5. 6. 7.

Corporate Personality Limited Liability Perpetual Succession Transferable Shares Permanency of Capital and Protection Capacity to Sue] Flexibility and Autonomy

Disadvantages 1. 2. 3. 4. 5.

Formalities and expenses Corporate disclosure Divorce of Control from Ownership Greater Social Responsibility Greater tax Burden in certain Cases

Kinds Of Company The Companies Act, 1945 places a variety of companies at the disposal of promoter. The two basic type of companies may be registered under the act are: A. Private Companies. B. Public Companies. These Companies May be: I. Limited by Shares II. Limited by Guarantee III. Unlimited Companies Companies may also be Classifies as: (A) Association not for profit having license under sec.25 of ICA (B) Government Companies (C) Foreign Companies (D) Holding Companies (E) Subsidiary Companies Private Company [section 3(1)(III)] By virtue of section 3-1-iii, a private company means a company which by its articles: A. Restricts the right to transfer its share. If any, B. Limit the no. of its members to 50 not including (i) Person who are in the employment of the company, (ii) Person Who, having been formely in the employment and have continued to be member after the employment ceases C. Prohibits any invitation to the public to subscribe for any share in, or debenture of the company . Word “PRIVATE LIMITED” must be added in company name.

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Public Company [section 3(1)(iV)] According to ICA “Public Company Mean a company which not a private company” ü ü ü ü ü

Minimum number of member must be seven. [Sec.12 (1)] Maximum Number unlimited. [Sec.3 (1)(iii)(b)] Number of Director must have at least 3 directors.[Sec.252(1)] Must Prepare Memorandum of Association Must Prepare Article of Association

KADVANI FORGE LTD. Is a Public Limited Company. KADVANI FORGE LTD. is registered Under the Indian Companies Act 1956 with the Companies Registrar In year 1997.

Scale Classifications according to Capital Investment in Machinery A. Tiny scale Industries or cottage Industries [Capital Investment less than 60 lakhs (> 60 lakhs)] B. Small Scale Industries [Capital Investment More then 60 lakhs & less then 3 crores i. (>60lakhs & <3crores)] C. Medium Scale Industries [Capital Investment More then 3crores & less then 5 crores (3 crores> & <5 crores)] D. Large Scale Industries [Capital Investment More then 5 crores (5 crores >)] Scale of organization is determined by the capital investment done by a business unit i.e. fixed assets & working capital etc. KADVANI FORGE LTD. Is a LARGE SCALE INDUSTRY Meaning that Investment is more than three crores.

Classification according to Production A. Heavy Industries: Heavy Industries are those units where the Production period is very long i.e. six months to three years B. Light Industries: Light Industries are those units where the Production Period is less than six

month.

In this classification Industries define by their Production period is means a time gap between Procurement of Row materials to completion of production. KADVANI FORGE LTD. is light Industries because its production Period is very less. 1.9

Bankers Bank in clued in commerce means the business is producing commodity is not complete until it has reach to the consumer certain services like banking, transportation, Insurance etc. are necessary. Exchange of goods make with help of ancillary services. Bank is financial Institution, which makes financial transaction. Bankers of KADVANI FORGE LTD. ü Bank of India

Auditors According to companies act every company must have to make audit by the Chartered Accountant of the financial report. After sign of CA. only Annual Report is published. Auditor’s areü Kalaria & Sampat Kalaria and Sampat is very reputed and big firm. They also handle all Legal matters of the company i.e. Company Secretary and solicitor and advocate.

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Sister Concern Kadvani Groups Have many in many industries and field which is as flows.

Ø Kadvani oil Mills:. In 1965, The Kadvani Group was born. The patron Shri Lakhabhai Vithalbhai Kadvani, introduced Kadvani Oil Mills. Kadvani Chemicals followed this maiden adventure in 1981, which in turn lead to Kadvani Securities in 1995. One more limited company followed its trail namely Kadvani Forge limited in 1995. The year 2000, brought with it Kadvani Itech – The latest venture of the Group . When Kadvani Chemicals was launched in 1981, it immediately became a pioneer in the field of manufacturing Precipitated Silica in India. This being an import substitute product helped save a lot of foreign currency. Again the rubber product market was conquered when clients like Hoechst Limited, Elgi, Shree Hindustan Latex and many others became the buyers of the product. A brand name Kad-Sil was established in the market. The plant was modernized, expanded and shifted to Jamnagar on the banks of Arabian Sea. In spite of huge demands High Quality has never been compromised.

Ø Kadvani Securities Ltd:.: The formation of Kadvani Securities Ltd. was brought about when Mr. Kishore L. Kadvani became the member of Saurashtra Kutch Stock Exchange. It is listed at the Bo mbay Stock exchange and the shares of the company are still actively traded.

Ø Kadvani Forge Ltd.: Looking at the immense growth potential in the automobile industry, The Kadvani Group promoted one more limited company named Kadvani Forge limited. In a couple of years its popularity surged in the forging market. The Railways, Defense, OEM like Mahindra & Mahindra, Bharat Earth Movers Limited, Greaves Limited as well as large auto part manufacturers of Rajkot like Amul Industries, SAR Auto products Limited, Kisan Auto parts Limited are its reputed clients. This manufacturing company as also been accredited and certified for ISO 9002, Quality System in the company by TUV management, GMBH of Germany. 30% of its total production is exported to USA, Australia etc.

Ø Kadvani Itech (A Division Of Kadvani Securities Ltd.) : The introduction of Kadvani Itech gave a lot of diversification to this group. The information Technology business of the 21st Century lured the third generation Kadvani’s to explore and gain once again. Training, Development, Solutions and services related to information technology covers a large part of present activity. Diversification to Web development, eBusiness and E-Mail suite, Knowledge Management, Data warehousing and mining, Networking and Telecommunications, Consultancy and Software Development makes the Itech maestro a well-equipped player in the IT arena.

Ø Kadvani Chemicals This is company which is started earlier from KADVANI FORGE LTD. Which is chemical producing company which is also a very important company given by the Kadvani Group.

Ø Devhari Exports This is Exporting Company, which is, and transportation filed which also plays a vital role in this filed in Rajkot, which is given by a Kadvani Group.

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Time Keeping System In Modern era “TIME IS MONEY” means time is very important factor for every one. Every one has to walk with it otherwise they will leave behind. In the changing era of ours , time factor plays very important role. KADVANI FORGE LTD. Have a Computerised punch card system. As the workers comes they has to punch the card so that time is noted. The card has all the details of the employee. He also has to punch the card when he goes out of the unit. So his going time is noted too.

For Office Employees 8:00 AM To 1:00 PM 1:00 PM To 2:00 PM (Recess) 2:00 Pm To 6:00 PM

For Workers 8:00 Am To 4:00 Pm (First Shift) 4:00 Pm To 12:00 Pm (Second Shift) 12:00 Pm To 8:00 Am (Third Shift) On Wednesday they are having a holiday what generally having in all industries. On Thursday Shift changing on rotation

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