Bharat Forge Ltd — Regulatory Filings 2021

Mar 16, 2021

BHARAT FORGE

March 12, 2021

To,

National Stock Exchange of India Ltd.,

'Exchange Plaza', Bandra-Kurla Complex, Bandra (East) Mumbai- 400 051 Symbol: BHARATFORG Series: EQ

Dear Sir/Madam,

Sub: Clarification on email dated March 12, 2021 from NSE regarding investment in Aeron Systems Private Limited, Pune, India.

This is with reference to your above referred email received by us dated March 12, 2021 seeking additional information on our investment in Aeron Systems Private Limited, Pune, India.

In this connection, please note that as communicated earlier, vide our intimation dated March 9, 2021, the Company has made further investment of Rs. 4 crores in its associate company - Aeron Systems Private Limited (Aeron) by way of purchasing 39,000 equity shares of face value Rs.10/- each at a premium of Rs. 1,015.64/-.

The additional information sought from the Company vide email dated March 12, 2021, are as under:

a)	Whether the acquisition would fall The Company purchased the said shares fromwithin related party transactions and existing shareholder who is not a related party.whether the promoter/ promoter Hence, the transaction does not fall under thegroup/ group companies have any category of Related Party Transaction.interest in the entity being acquired?If yes, nature of interest and details The promoter/promoter group do not have anythereof and whether the same is interest in Aeron.done at "arm's length"Aeron is an associate company of Bharat ForgeLimited.
b)	Industry to which the entity being Manufacturingoftechnologyproductsforacquired belongs;AerospaceandDefense,Automotive,Renewable energy and Industr4.0.
c)	Objects and efects of acquisition The Company had invested in Aeron with the(includingbutnotlimitedto, objective of getting access to technologydisclosure of reasons for acquisition developed in Inertial Navigation Systems (INS) &of target entity, if its business is Internet of Things (loT) which are in synergy withoutside the main line of business of our activities in Defence & Aerospace.the listed entity);

==> picture [35 x 35] intentionally omitted <==

KALYANI GROUP COMPANY

==> picture [95 x 83] intentionally omitted <==

BHARAT FORGE LIMITED, MUNDHWA, PUNE 411 036, MAHARASHTRA, INDIA. PHONE: +91 20 6704 2777 FAX: +91 20 2682 0699 (Export), 2682 2387 (Sales/Mktg) 2682 2163 (Materials) Website : www.bharatforge.com CIN No. L25209PN196l PLC012046

BHARAT FORGE

							Giventhecurrentperformance&futureprospects of the technology, the Company madethis further investment to enhance its position in	Giventhecurrentperformance&futureprospects of the technology, the Company madethis further investment to enhance its position in	Giventhecurrentperformance&futureprospects of the technology, the Company madethis further investment to enhance its position in	Giventhecurrentperformance&futureprospects of the technology, the Company madethis further investment to enhance its position in	Giventhecurrentperformance&futureprospects of the technology, the Company madethis further investment to enhance its position in
							prospects of the technology, the Companthis further investment to enhance its pos
							Aero	.equenttothesaidinvest
							Subs		men	t,t	he
							Comp	any's stake in Aeron has been	inc	reas	ed
							from	6% to 36% (full diluted)
								y .
	d)	Brre	ief detaiulatory	ls of any gapproval	overnments required	al orfor	Not A	pplicable
		th	acquis	ition;
	e)	Inof	dicativethe acq	time periouisition;	d for comple	tion	Trans9, 20	fer of shares has been effecte21	d on	Mar	ch
	f)	Naca	ture ofsh con	considerasideration	tion - wheor share s	therwap	Cash
		an	d detail	s of the sa	me;
	g)h)i)	CowhPeacacBracbu	st of aich thercentagquired aquired;ief backquired isiness	cquisitionshares aree of sharend / or nuground an terms ofacquire	or the pricacquired;holding / comber of shbout the eproducts/lind,date	e atntrolaresntitye ofof	TotalstakeSubsCompfromBriefAeronprivat	purchase consideration for addin Aeron has been agreed at INequent to the aforesaid invesany's stake in Aeron has been26% to 36% (fully diluted).backgroundSystems Private Limited ise limited company incorporate	itionR 4tmeincand o	al 10Crornt, treasIndin 10	%e.heedanth
		incturacanbri	orporatnover,quiredy otheref);	ion, historcountryentity hassignificant	y of last 3 yin whichpresenceinformation	earstheand(in	NovePune,manuInertiadevicDf	mber, 2008, with its registereIndia. It is engaged in the bfacturing of technology producl Navigation Systems (INS)es for industries such as AeroAttiv Rbl	d ousints sanspa	ficeessuchd lce a	inofasoTndd
							eense, uomoe, enewae enerIndustry 4.0.The I NS is a sensitive and critical piequipment that is used for obtaining exaccurate motion parameters e.g. position,attitude, heading, acceleration of anyobject. INS is essential in Aircrafts, UAVguns, ArmoredVehicles,Driverlessamongst others.The turnover of Aeron for past 3 yearfollows:For (FY 2019-20): Rs. 7, 12,40,584/­For (FY 2018-19): Rs. 5,27,01,709/-			y anece oftremelyspeed,movings, FieldCars,s is as
	@.

BHARAT FORGE

For (FY 2017-18): Rs. 12,14,45,463/Country in which the acquired entity has presence - India

Kindly take the same on your record.

Thanking you,

For B1ge Limited, Tejaswini Chaudhari Company Secretary & Compliance Officer

==> picture [35 x 34] intentionally omitted <==

KALYANI GROUP COMPANY

BHARAT FORGE LIMITED, MUNDHWA, PUNE 411 036, MAHARASHTRA, INDIA. PHONE: +91 20 6704 2777 FAX: +91 20 2682 0699 (Export), 2682 2387 (Sales/Mktg) 2682 2163 (Materials) Website : www.bharatforge.com CIN No. L25209PN1961PLC012046