More Stories

Informist, Saturday, Apr. 26, 2025

--Ramkrishna Forgings: Conducted internal study over inventory discrepancies 

--Ramkrishna Forgings: Inventory discrepancy impact seen at 4-5% of net worth 

--Ramkrishna Forgings: Promoters intend to fund the impact on net worth 

--Ramkrishna Forgings: External agency to study inventory discrepancies 

MUMBAI – Ramkrishna Forgings Ltd. may take a hit of 4-5% of net worth due to dicrepancies in inventory, according to  internal findings by the company, as disclosed in an exchange filling on Saturday. A back-of-the-envelope calculation shows the company had a net worth of over INR 29 billion as of Sept. 30, which implies a hit of INR 1.2 billion-INR 1.5 billion.

For the nine months ended December, the company had reported a consolidated net profit of INR 3.70 billion. During 2023-24 (Apr-Mar), its consolidated net profit was INR 3.41 billion.

Ramkrishna Forgings found this error after an interal audit for FY25. Post the interal audit, the company will appoint independent external agencies to conduct a joint study to look into discrepancy in inventory and reasons behind the discrepancy, Ramkrishna Forgings said. The company will account for the impact as a one-time cost once they come out with the joint report.

Promoters of the company intend to fund the negative impact due to discrepancy in inventory through "permissible instruments". "The promoters of the company understanding the potential adverse impact that may arise pursuant to the fact-finding study, on the net worth of the company, stands firmly committed to protect and preserve the stakeholders' interest to uphold highest standards of corporate governance," the company said.

On Friday, shares of the company closed at INR 656.70 on the National Stock Exchange, down 4.4%.  End

Reported by Anshul Choudhary

Edited by Avishek Dutta

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.