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Kirloskar Industries (BOM:500243) Beneish M-Score : 2.47 (As of Jun. 09, 2024)


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What is Kirloskar Industries Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Warning Sign:

Beneish M-Score 2.47 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for Kirloskar Industries's Beneish M-Score or its related term are showing as below:

BOM:500243' s Beneish M-Score Range Over the Past 10 Years
Min: -3.31   Med: -2.53   Max: 2.47
Current: 2.47

During the past 13 years, the highest Beneish M-Score of Kirloskar Industries was 2.47. The lowest was -3.31. And the median was -2.53.


Kirloskar Industries Beneish M-Score Historical Data

The historical data trend for Kirloskar Industries's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Kirloskar Industries Beneish M-Score Chart

Kirloskar Industries Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -3.31 -2.74 -1.60 -2.50 2.47

Kirloskar Industries Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.50 - - - 2.47

Competitive Comparison of Kirloskar Industries's Beneish M-Score

For the Metal Fabrication subindustry, Kirloskar Industries's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Kirloskar Industries's Beneish M-Score Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Kirloskar Industries's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Kirloskar Industries's Beneish M-Score falls into.



Kirloskar Industries Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Kirloskar Industries for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.1274+0.528 * 0.9431+0.404 * 12.9256+0.892 * 0.9846+0.115 * 0.8373
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0+4.679 * -0.039472-0.327 * 0.719
=2.47

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Mar24) TTM:Last Year (Mar23) TTM:
Total Receivables was ₹9,121 Mil.
Revenue was ₹63,583 Mil.
Gross Profit was ₹28,815 Mil.
Total Current Assets was ₹20,826 Mil.
Total Assets was ₹97,635 Mil.
Property, Plant and Equipment(Net PPE) was ₹39,682 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹2,421 Mil.
Selling, General, & Admin. Expense(SGA) was ₹0 Mil.
Total Current Liabilities was ₹9,272 Mil.
Long-Term Debt & Capital Lease Obligation was ₹12,178 Mil.
Net Income was ₹1,916 Mil.
Gross Profit was ₹0 Mil.
Cash Flow from Operations was ₹5,770 Mil.
Total Receivables was ₹8,217 Mil.
Revenue was ₹64,580 Mil.
Gross Profit was ₹27,600 Mil.
Total Current Assets was ₹38,356 Mil.
Total Assets was ₹75,332 Mil.
Property, Plant and Equipment(Net PPE) was ₹34,760 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹1,759 Mil.
Selling, General, & Admin. Expense(SGA) was ₹2,091 Mil.
Total Current Liabilities was ₹16,499 Mil.
Long-Term Debt & Capital Lease Obligation was ₹6,520 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(9121.2 / 63582.6) / (8217.4 / 64579.9)
=0.143454 / 0.127244
=1.1274

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(27600.2 / 64579.9) / (28814.8 / 63582.6)
=0.427381 / 0.453187
=0.9431

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (20826.3 + 39682.4) / 97635.4) / (1 - (38356.3 + 34759.8) / 75332.3)
=0.380259 / 0.029419
=12.9256

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=63582.6 / 64579.9
=0.9846

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(1758.5 / (1758.5 + 34759.8)) / (2421.4 / (2421.4 + 39682.4))
=0.048154 / 0.05751
=0.8373

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(0 / 63582.6) / (2091.4 / 64579.9)
=0 / 0.032385
=0

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((12178.4 + 9272.1) / 97635.4) / ((6519.8 + 16498.6) / 75332.3)
=0.2197 / 0.305558
=0.719

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(1915.8 - 0 - 5769.7) / 97635.4
=-0.039472

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Kirloskar Industries has a M-score of 2.47 signals that the company is likely to be a manipulator.


Kirloskar Industries Beneish M-Score Related Terms

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Kirloskar Industries (BOM:500243) Business Description

Traded in Other Exchanges
Address
Cello Platina, Fergusson College Road, Office No. 801, 8th Floor, Shivajinagar, Pune, MH, IND, 411005
Kirloskar Industries Ltd is engaged in the manufacturing of iron castings. The company is also involved in wind power generation and Investments in Securities and Properties. Its segments include Windpower generation, Investments, Real Estate, Iron casting, Tube and Steel. ,It generates maximum revenue from iron castings. Geographically, it operates and derives revenue from India.

Kirloskar Industries (BOM:500243) Headlines

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