Rajkumar Forge is in the business of manufacturing forgings for heavy engineering and machine building industries. 90% of its revenue consists of exports. The company reported stable revenues and operating profits over the last five years – reporting over 4cr in operating profits on revenues of about 33cr. It had net debt of about 17cr as at 30 th September, 2011, which appeared to be amply backed up by its net current assets and book equity. The company had negative reserves until 2007 as a result of past losses. The business is primarily exposed to increases in steel prices, its primary raw material. It is also exposed to INR appreciation as a result of its large proportion of export revenues.
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