Kalyani Forge Appoints New Independent Director Amid Financial Challenges

Kalyani Forge Limited , a key player in the forging industry, has announced significant changes to its board and revealed its latest financial results, marking a period of transition and challenges for the company.

Board Appointment and Succession Plan

The company's Board of Directors has approved the appointment of Mr. Vishwanathan Swaminathan as an Additional Independent Director for a five-year term, effective November 12, 2025. This appointment is subject to shareholder approval at the upcoming general meeting. Mr. Swaminathan, a 66-year-old Chartered Accountant, brings 25 years of diverse domestic and international experience across manufacturing, services, and retail sectors.

In a strategic move, Mr. Swaminathan is set to assume the committee positions currently held by Mr. Abhijit Sen upon the latter's retirement on February 2, 2026. This succession plan aims to ensure a smooth transition in the company's leadership structure.

Financial Performance and Auditor Concerns

Kalyani Forge has reported its unaudited financial results for the quarter and half-year ended September 30, 2025. The company's performance shows signs of strain, with profit before tax for the half-year period declining to ₹429.25 lakh, compared to ₹617.51 lakh in the previous year.

However, the financial report comes with significant caveats. The company's statutory auditors, M.P. Chitale & Co., have issued a disclaimer opinion, citing several concerns:

Refinement needed in stock valuation methodology
Pending reconciliations of trade receivables and payables
Inadequate documentation of internal financial controls
Issues with GST balance reconciliation

These audit observations underscore the challenges Kalyani Forge faces in its financial reporting and internal control systems.

Policy Updates

In response to evolving corporate governance standards, Kalyani Forge's Board has adopted new policies on:

Materiality and dealing with Related Party Transactions
Determination of Materiality of events/information and their disclosures

These policy updates aim to enhance transparency and compliance with regulatory requirements.

Market Implications

The combination of board changes, financial performance, and audit concerns presents a complex picture for Kalyani Forge. While the appointment of Mr. Swaminathan may bring fresh perspectives to the board, the company faces immediate challenges in addressing the auditors' concerns and improving its financial position.

Investors and stakeholders will likely be watching closely to see how Kalyani Forge addresses these issues in the coming months, particularly in terms of strengthening its internal controls and financial reporting processes.

As the company navigates through these challenges, the effectiveness of its new board composition and recently adopted policies will be crucial in restoring confidence and driving future growth.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.85%	-1.60%	-9.86%	-15.94%	+15.71%	+420.77%

Kalyani Forge Limited , a prominent player in the forging industry, has announced key dates for its shareholders. The company has set August 22, 2025, as the record date for dividend payment and scheduled its Annual General Meeting (AGM) for August 29, 2025.

Record Date and Dividend Declaration

The Board of Directors has fixed Friday, August 22, 2025, as the record date for determining shareholders eligible for dividend payment. This decision comes as part of the company's commitment to rewarding its shareholders.

Annual General Meeting

Kalyani Forge has scheduled its Annual General Meeting for Friday, August 29, 2025. The AGM provides an opportunity for shareholders to engage with the company's management and participate in key decision-making processes.

Financial Performance

The company recently released its unaudited financial results for the quarter ended June 30, 2025:

Particulars (in Lakhs)	Q1 FY2026	Q1 FY2025	YoY Change
Revenue from Operations	6,413.27	5,673.83	13.03%
Total Income	6,452.67	5,759.76	12.03%
Profit Before Tax	202.57	137.75	47.05%
Profit After Tax	140.65	34.76	304.63%

Kalyani Forge has shown significant improvement in its financial performance compared to the same quarter last year. The company's revenue from operations increased by 13.03%, while profit after tax saw a substantial rise of 304.63%.

Management Changes

The company announced changes in its key managerial personnel:

Ms. Rachana Agarwal resigned from her position as Company Secretary and Compliance Officer, effective July 10, 2025.
Ms. Aishwarya Parwal (ACS: 67170) has been appointed as the new Company Secretary and Compliance Officer, effective August 13, 2025. Ms. Parwal is an Associate Member of the Institute of Company Secretaries of India and a Commerce Graduate, bringing experience in Corporate Governance and statutory compliances to her new role.

Auditor's Review

M.P. Chitale & Co., Chartered Accountants, conducted a limited review of the company's quarterly unaudited financial results. The auditors noted that the company is in the process of refining its stock valuation methodology and updating internal financial controls. Management has responded to these observations, stating that they are taking steps to address these matters in the coming quarters.

Kalyani Forge Limited continues to focus on improving its financial performance and corporate governance practices as it moves forward in the fiscal year 2025-26.