Smiths & Founders (India) Ltd

Smiths & Founders (India) Limited was originally established as a small enterprise in 1982. It was reconstituted as 'Shimoga Forge Limited' in October, 1990, which changed to 'Shimoga Technologies Limited' on January 3, 2002 and upon the merger process, the Company was later changed to 'Smiths & Founders (India) Limited' on 27 March, 2014. The Company was established with an objective of manufacturing forgings and machined components used in automobile, agriculture, mining, material handling, power transmission, hydraulic and general engineering industries. At present, it is engaged in the business of ferrous forgings. The Company was promoted by Shailaja Suresh, a qualified metallurgist and specialist in forging technology. The erstwhile Company, Shimoga Forge Limited took over the assets and liabilities of a proprietary concern, 'Sahyadri Forge', in April, 1992 which engaged in the manufacture and sale of steel forgings and the Company turned into a public limited company in May 1992. It came out with a public issue of 31 lac equity shares at par, aggregating Rs 3.10 cr in Jan.'93. The proceeds of the issue were utilised to part-finance a Rs 4.32-cr project to expand the steel forging capacity from 500 tpa to 1890 tpa, which was completed 1997. The company manufactures steel forgings through the hot-forging technology using drop forge hammers and mechanical presses. The major buyers of STL's products include Widia India, BHEL, Himu Accessories, Indicarb, SAK Industries, Elgi Auto Engineering, Automotive Levers, Lube Airfilters, etc. STL caters to the automobile, agriculture, mining, power transmission and general engineering industries. The company has entered into the software business in 2000-01 and the software division has developed a Banking Software 'Conch Bank' meant for Co-operative sectors and societies. The company became a Sick company as the net worth and their accumulated losses exceeded the paid up share capital. The Company sold its unit at Chikkaballapur in 2009. During year 2013-14, the Rehabilitation Scheme of Company was approved by the Hon. Board for Industrial and Financial Reconstruction (BIFR) on 20th February, 2014, which envisaged merger of erstwhile Smiths & Founders (India) Limited with the Company effective from 1 April, 2012. As per the terms of the Scheme, the Company had allotted 9,76,76,525 shares to the shareholders of erstwhile Smiths & Founders (India) Limited, in the ratio of 5 equity shares of Re 1/- fully paid up of the Company for every 2 equity shares of Re1/- full paid up held on 28.03.2014.