MIRA INFORM REPORT
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Report Date : |
03.11.2006 |
IDENTIFICATION DETAILS
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Name : |
TELCO
CONSTRUCTION EQUIPMENT COMPANY LIMITED |
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Registered Office : |
Jubilee Building, 45, Museum Road, Bangalore - 560025, Karnataka |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
30.12.1998 |
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Com. Reg. No.: |
08-24588 |
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CIN No.: [Company Identification No.] |
U29119KA1998PLC024588 |
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TAN No.: [Tax Deduction & Collection Account No.] |
BLRT02428G |
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PAN No.: [Permanent Account No.] |
AAACT9077B |
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Legal Form : |
It is a closely held public limited
liability company. The company is a
subsidiary of Tata Motors Limited |
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Line of Business : |
Manufacturing and sale of construction equipments and earth
moving equipments. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
RATING
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STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is
considered normal. Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD
10000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is an established company of Tata Group.
Available information indicates high financial responsibility of the company.
The company’s result has improved. Trade relations are fair. Payments are
correct and as per commitments. The company can be considered good for normal
business dealings. It can be regarded as a promising business
partner in a medium to long run. |
LOCATIONS
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Registered Office : |
Jubilee Building, 45, Museum Road, Bangalore - 560 025,
Karnataka, India |
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Tel. No.: |
91-80-25588026/25583345/46/53 |
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Fax No.: |
91-80-25583343 |
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E-Mail : |
bigamudre.murty@telcon.co.in
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Website : |
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Area : |
15000 sq. ft |
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Location : |
Leased |
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Administrative office: |
27th Floor, Centre I,
World Trade Centre, Cuffe Parade, Mumbai - 400 005, Maharashtra |
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Tel. No.: |
91-22-22160871 |
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Fax No.: |
91-22-22185747 |
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Zonal offices : |
Located at : Ahmedabad, Aurangabad, Bhubaneswar,
Bilaspur, Chandigarh, Chennai, Cochin, Dhanbad, Goa, Gulbarga, Guwahati,
Hospet, Indore, Jaipur, Jamshedpur, Kolhapur, Lucknow, Nellore, Pune, Rajkot,
Salem, Udaipur, Vijaywada and Vizag. |
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Overseas office: |
Nitol Motors Limited, Nitol
Centre, 71 A, Mohakali Commercial Area, Dhaka, 1212, Bangladesh Tel. No. 00880-2-9887074/76 Fax. No.
00880-2-9883121/9887072 E-mail. nita@citechco.net Contact Person - Mr.
Mohammad Aytollah / Mr. N. Ramchandran Access Tower, 278 Union
Placa, Colombo, Colombo 02, Sri Lanka Tel. No. 0094-1-302302 Fax. No.
0094-1-302333/302346 E-mail. ajitten@access.lk/sumal@access.lk Contact Person - Mr. Sumal
Perera Kathmandu, 999 999, Nepal Tel. No.
00977-1-520320/3/526357 Fax. No. 00977-1-26670 E-mail. paka@mos.com.np Contact Person - Mr. Badri
Shreshtha |
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Factory 1 : |
C/O Tata Moters/ Telco
Works, Jamshedpur-831010, Bihar KIADB, Block No : 2, Belur Industrial Estate, Mummigatti, Dharwad - 580007, Karnataka, India |
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Area : |
100 acre |
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Location : |
Owned |
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Branches : |
Located at : Bangalore, Kolkata, Hyderabad,
Mumbai, New Delhi and Nagpur |
DIRECTORS
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Name : |
Mr. Jamshed Khurshid Setna |
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Designation : |
Non Executive Chairman |
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Address : |
SB, Saker Apartments, Pochkhanawala Road, Worli,
Mumbai – 400025 |
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Date of Birth/Age : |
29.08.1928 |
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Date of Appointment : |
21.04.2006 |
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Name : |
Mr. Ranaveer Sinha |
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Designation : |
Managing Director |
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Address : |
G5, Golmuri Road, Nildih, PO Golmuri, Jamshedpur - 831003 |
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Date of Birth/Age : |
09.07.1954 |
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Qualification : |
B.E., PGDBM |
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Experience : |
28 years |
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Date of Appointment : |
01.01.2003 |
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Name : |
Mr. Kamalesh Chandra Dewan Wazirchand
Mehra |
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Designation : |
Non Executive Director |
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Address : |
Flat # 11, Volkart House, 63 Westfield Lane,
Bhulabai Desai Road, Mumbai – 400021, Maharashtra, India |
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Date of Birth/Age : |
20.09.1939 |
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Date of Appointment : |
29.09.1999 |
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Name : |
Mr. T Sakai |
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Designation : |
Director |
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Date of Appointment: |
May 3, 2005 |
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Name : |
Mr. Virendraraj Hanwantraj Mehta |
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Designation : |
Non Executive Director |
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Director : |
‘Ganesh Deep’, 373, Anand Vihar, ‘D’ Block, New
Delhi – 110092, India |
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Date of Birth/Age : |
12.01.1934 |
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Date of Appointment : |
29.09.1999 |
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Name : |
Mr. Praveen Purshottam Kadle |
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Designation : |
Non Executive Director |
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Address : |
# 224 NCPA Apartments, Nariman Point, Mumbai –
400021, Maharashtra, India |
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Date of Birth/Age : |
01.01.1957 |
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Date of Appointment : |
30.12.1998 |
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Name : |
Mr. H. Hamabe |
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Designation : |
Alternate Director |
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Date of Birth/Age : |
46 years |
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Name : |
Mr. A. Ishika |
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Designation : |
Director |
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Name : |
Mr. Hideo Arahata |
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Designation : |
Non Executive Director |
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Address : |
1-154 Tagu – cho, Ushikushi, Ibaraki 300-1236, Japan |
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Date of Birth/Age : |
01.03.1948 |
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Date of Appointment : |
03.05.2005 |
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Name : |
Mr. Munehiro Kimura |
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Designation : |
Non Executive Director |
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Address : |
1-8-41 Nakashin Juku, Kashiwa, Chiba, Japan |
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Date of Birth/Age : |
05.11.1941 |
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Date of Appointment : |
03.05.2005 |
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Name : |
Mr. Shoji Lino |
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Designation : |
Alternate Director to Arahata |
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Address : |
3 – 50 Kounoyama Abiko, Chiba, Japan |
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Date of Birth/Age : |
11.07.1957 |
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Date of Appointment : |
03.05.2005 |
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Name : |
Mr. Mitsohiro Tabei |
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Designation : |
Alternate Director to Kimura |
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Address : |
1001-21-21-8 Chome Machiya, Arakawa – ku, Japan |
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Date of Birth/Age : |
01.03.1952 |
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Date of Appointment : |
03.05.2005 |
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Name : |
Mr. Toshiaki Takase |
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Designation : |
Alternate Director to Tabei |
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Address : |
1-12-16-207 Tarumachi Kokoku – ku, Yokohama, Japan |
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Date of Birth/Age : |
16.09.1955 |
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Date of Appointment : |
15.12.2005 |
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Name : |
Mr. Prakash Manjanath Telang |
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Designation : |
Non Executive Director |
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Address : |
Flat # D – 211 Paradise Towers, Plot # 10 Baner Road, Pune –
411045, Maharashtra, India |
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Date of Birth/Age : |
21.06.1947 |
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Date of Appointment : |
30.06.2006 |
KEY EXECUTIVES
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Name : |
Mr. S. Mazumdar |
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Designation : |
Vice President and Chief Financial Officer |
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Name : |
Mr. Azhagesan Ayyamperumal |
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Designation : |
Company Secretary |
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Address : |
Flat # 308, SMR Castle 29, Banaswadi
Main Road, Bangalore – 560043, Karnataka, India |
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Date of Birth : |
27.09.1963 |
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Date of Appointment : |
09.01.2001 |
MAJOR SHAREHOLDERS
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Names of
Shareholders |
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No. of Shares |
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Tata
Motors Limited |
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59749994 |
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Tata
Motors Limited |
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1 |
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Tata
Motors Limited |
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1 |
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Hitachi
Construction Machinery Company Limited |
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40000000 |
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Sheba
Properties Limited |
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250000 |
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Tata
Motors Limited |
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1 |
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Tata
Motors Limited |
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1 |
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Tata
Motors Limited |
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1 |
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Tata
Motors Limited |
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1 |
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Total |
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100000000 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing and sale of construction equipments and earth
moving equipments. |
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Products : |
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Exports to : |
Bangladesh, Iraq, Saudi Arabia, Sri
Lanka, Nepal, South Africa, Tunisia, and Middle East |
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Imports from : |
Japan and Italy |
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Terms : |
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Selling : |
Contract + Documents through Bank
terms |
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Purchasing : |
L/C and Credit (60 days) |
PRODUCTION STATUS
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Particulars |
Unit |
Installed Capacity |
Actual Production |
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Earth Moving Machinery including bull-dozers, dumpers, scrapers,
loaders, shovels and draglines (excluding walking draglines) |
Nos. |
3262 |
3515 |
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Manufactured components for sale |
Millions |
-- |
112.2 |
GENERAL INFORMATION
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Suppliers : |
v Hitachi
Construction Machinery Company, Japan v Ital
Tractors, Italy v Kirloskar
Cummins Limited/ Cummins Engines, India v Tata Motors
Limited, India v Wipro Fluid
Power, Peenya, Bangalore |
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Customers : |
v Central
Public Works Department, India v State Public
Works Departments, India v Tata Group
Companies, India v North Zone
Trader, Srinagar v Pathankot
Excavator, Pathankot v Super Mover
Agencies |
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No. of Employees : |
1055 |
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Bankers : |
Ø State Bank of
India Corporate Accounts Group Branch,
Express Towers, Nariman Point, Mumbai – 400021, Maharashtra Ø Standard
Chartered Grindlays Bank Bangalore,
Karnataka Ø Bank of
Baroda Bangalore,
Karnataka Ø Corporation
Bank Bangalore,
Karnataka Ø HDFC Bank
Limited
Kasturba Road, Bangalore – 560001, Karnataka |
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Facilities : |
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Banking Relations : |
Good |
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Auditors : |
S. B. Billimoria & Company Chartered Accountants Bangalore |
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Associates: |
Ø Tata
Associated Cement Companies Limited Ø Hitachi
Construction Company Limited Ø Tata Power
Company Limited Ø Andhra Valley
Power Supply Company Limited Ø The Tata
Hydro Electric Power Company limited Ø Tata
Consultancy Services Ø Tata BP Solar
Limited Ø Tata Sons
Limited Ø Tata
Industries Limited Ø Tata Iron and
Steel Company Limited Ø Tata Davy
Limited Ø Tata Share
Registry Limited Ø Tata Liebert
Limited Ø Tata Tea
Limited Ø Tata Infotech
Limited Ø Tata Finance
Limited Ø Tata Exports
Limited Ø Tata Pharma
Limited |
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Subsidiaries: |
Ø Tal Manufacturing
Solutions Limited Ø Tata
Technologies Limited Ø H. V.
Transmission Limited Ø H. V. Axles
limited |
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Holding Company: |
Tata Motors Limited [Formerly Known
as Tata Engineering and Locomotive Company Limited] |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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100000000 |
Equity Shares |
Rs. 10/- each |
Rs. 1000.000
millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
100000000 |
Equity Shares |
Rs. 10/- each |
Rs. 1000.000
millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED BALANCE SHEET
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SOURCES OF
FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS
FUNDS |
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1]
Share Capital |
1000.000 |
1000.000 |
1000.000 |
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2]
Share Application Money |
0.000 |
0.000 |
0.000 |
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3]
Reserves & Surplus |
1741.600 |
1289.705 |
1053.120 |
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4]
(Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH
|
2741.600 |
2289.705 |
2053.120 |
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LOAN
FUNDS |
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1]
Secured Loans |
530.200 |
716.537 |
1248.506 |
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2]
Unsecured Loans |
100.000 |
190.594 |
0.000 |
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TOTAL BORROWING
|
630.200 |
907.131 |
1248.506 |
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DEFERRED
TAX LIABILITIES |
106.000 |
0.000 |
96.500 |
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TOTAL
|
3477.800 |
3196.836 |
3398.126 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
|
1781.200 |
1995.855 |
2131.133 |
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Capital work-in-progress
|
21.700 |
38.282 |
46.888 |
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INVESTMENT
|
36.300 |
36.100 |
36.100 |
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DEFERREX TAX ASSETS
|
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS
& ADVANCES
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Inventories
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2264.400
|
1910.616
|
1461.780 |
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Sundry Debtors
|
1425.100
|
996.869
|
952.385 |
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Cash & Bank Balances
|
346.100
|
167.852
|
31.783 |
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Other Current Assets
|
0.000
|
0.000
|
0.000 |
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Loans & Advances
|
1362.300
|
502.644
|
370.055 |
Total
Current Assets
|
5397.900
|
3577.981
|
2816.003 |
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Less : CURRENT LIABILITIES & PROVISIONS
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Current Liabilities
|
2564.800
|
1956.512
|
1456.511 |
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Provisions
|
1194.500
|
510.615
|
223.300 |
Total
Current Liabilities
|
3759.300
|
2467.127
|
1679.811 |
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Net Current Assets
|
1638.600
|
1110.854
|
1136.192 |
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MISCELLANEOUS EXPENSES
|
0.000 |
15.745 |
47.813 |
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TOTAL
|
3477.800 |
3196.836 |
3398.126 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover [including
other income]
|
11599.400 |
8254.860 |
6341.454 |
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Profit/(Loss) Before Tax
|
1367.600 |
601.944 |
378.760 |
Provision for Taxation
|
499.200 |
194.314 |
172.100 |
Profit/(Loss) After Tax
|
868.400 |
407.630 |
206.660 |
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Export Value
|
378.800 |
422.800 |
1689.047 |
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Import Value
|
3714.400 |
409.798 |
329.316 |
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Total Expenditure
|
9966.800 |
7652.916 |
5962.694 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
PAT / Total Income
|
(%)
|
7.48
|
4.94
|
3.26 |
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Net Profit Margin
(PBT/Sales) |
(%) |
11.79
|
7.29
|
5.97 |
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Return on Total Assets
(PBT/Total
Assets} |
(%) |
19.04
|
10.80
|
7.66 |
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Return on Investment
(ROI)
(PBT/Networth) |
|
0.49
|
0.26
|
0.18 |
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Debt Equity Ratio
(Total
Liability/Networth) |
|
1.60
|
1.47
|
1.42 |
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Current Ratio
(Current
Asset/Current Liability) |
|
1.43
|
1.45
|
1.68 |
LOCAL AGENCY FURTHER INFORMATION
Subject is engaged in the business as
Manufacturer and Seller of different kinds of Construction Equipments,
Excavators, Earth Moving Machinery including Bull Dozers, Dumpers, Scrapers,
Loaders, Shovels, Walking Draglines, etc.
CONSTRUCTION EQUIPMENT INDUSTRY:
During the year, the country’s economic
conditions remained favorable with impressive growth in construction and
mining, leading to healthy demand levels. The GDP growth and exceeded the
projected 7% for the year 2005-06 and fueled the growth of the construction
equipment industry manifold. The initiatives of the government of India towards
the infrastructure development continued during the year under report,
resulting in a buoyant 39% growth of the industry, as against 35% in the
previous financial year. The requirement
of small excavators continued for Roads sector, which gained focus from the
government, industry and infrastructure angles. Irrigation projects of the States of Andhra Pradesh, Maharashtra
and Gujarat contributed to the increased demand for mid size and smaller
excavators. Privatization of mining
operations coupled with capacity augmentation of cement industry, enhanced the
activities in coal, cement and iron ore sectors and propelled the demand for
larger excavators and cranes.
SALES :
During the year, the company sold 3674
machines [2517 in 2004-05]. It recorded a growth rate of 45% in volume over the
previous year. The turnover for the
year at Rs. 13050 millions accounted for a growth of about 40% over the
previous year and included revenue from spare parts amounting to Rs. 1220 millions
[Rs. 1120 millions in 2004-05] and other revenue of Rs. 190 millions [Rs. 150
millions]. The company sold 471 machines in the month of March 2006, the
highest ever sales achieved in a single month.
EXPORTS :
During the year under report, the company
exported 18 machines [ 33 units in 2004-05] to various countries, besides
spares and accessories, and the total export turnover amounted to Rs. 79.700
millions [Rs. 137.900 millions]. The
export performance was poor in the two new markets of Mongolia and Maldives,
which imported 19 machines in the previous year. Maldives showed more interest in the company’s products
particularly of larger class, but orders are likely to be received only in the
current financial year. During the
year, the company focused its attention to the possible markets in Tanzania,
and 8 units of diverse equipment were exported to this country. The total exports for the year included
three units of dump trucks, eleven excavators, three units of wheeled
equipment, and one multi-utility loader, besides spares and accessories. The outlook for the current financial year
2006 – 07 is bright, as the shortfalls of the bygone year are likely to be
realized now, while the response from the new markets is also encouraging.
NEW PRODUCTS:
During the year, the company entered
its presence in construction, mining and road making equipment. It signed a technical license agreement with
Hitachi to manufacture ZX – 450 excavators, as part of its scheme of
manufacturing the new generation Z – Axis series of hydraulic excavators in
India. Also, an agreement was signed
with the German company, Man Takraf Fordertechnik GmbH for marketing its
Surface Miners in India. An arrangement
was finalized with Bell Equipment of South Africa for productionizing the new
multi-utility loader for African markets.
Among the new products launched
recently, the company sold ten dump trucks, three indigenously developed Motor
Graders and one unit each of Asphalt batch – mix plant TAP – 130, vibrating
compactor VTA 90 and multi utility loader MUL. The first unit of Asphalt batch
mix plant was supplied to one of the company’s key customers and commissioned
in Maharashtra. The ‘EX- 350 LCHV
Super’ was introduced as an upgrade of the EX – 350 LCH, with a larger bucket,
improved aesthetics and other changes.
On the large class excavator front, two units of 250 Ton – ultra large
mining shovels EX – 2500 were commissioned, while more orders fro additional
units received.
JOINT VENTURE INITIATIVES:
During the year 2005-06, the new joint
venture company, Telcon Ecoroad Resurfaces Private Limited [TERPL] had, secured
a commercial order from Gujarat Toll Road Investment Company Limited for a road
– resurfacing project at Vadodara, valued at Rs. 75 millions. TERPL is presently
working on the project and expects to complete this in June, 2006. Though selling the new technology has been
extremely challenging, TERPL has made substantial improvement towards reaching
the idea level of fuel consumption and operating speed and is confident of
achieving the levels in future operations.
Total income of TERPL for the year 2005 – 06 amounted to Rs. 23.100
millions as against Rs. 10.900 millions in 2004-05, which is estimated to
result in an operating profit of Rs. 4.300 millions [Rs. 0.800 million in
2004-05] and a net loss of Rs. 27.900 millions [Rs. 7.300 millions]. TERPL is actively working with various state
governments and quasi authorities in order to secure more projects. As part of its marketing initiatives, TERPL
invited such authorities to witness the physical operations and its Vadodara
site.
OUTLOOK:
The nation expects to witness a
sustained economic growth in the years to come following a high GDP growth of
about 8% achieved in the financial year 2005-06. With impetus on infrastructure, rural development and
electrification, the construction industry in India is poised to grow further
at the rate of around 20% per annum, if not more, for the next few years. The Bharat Nirman Yojana announced by the
Central Government covering various projects hereunder relating to irrigation,
roads, communication, electrification, housing, etc. has certainly set the
industry on the definitive growth track.
The Jawaharlal Nehru National Urban Renewal Mission [JNNURM] launched in
December, 2005 to develop urban India would boost the demand for backhoe
loaders and mini excavators significantly.
Capacity expansion planned in the power sector and steel, cement,
petroleum and coal industries would render immense advantage to the larger
class excavators and cranes. The Road
sector continues to be promising, as targets have been set to complete the
pending build – operate – transfer [BOT] projects in the II and III phases of
NHDP, besides announcing new projects like NHDP Phase – IV and Accelerated
North East Road Development [ANERD].
The company's products / services includes the following :
Ø Hydraulic
Excavators
Ø Crawler Cranes
Ø Wheel Loader
Ø Backhoe Loader
Ø Agency Products
The company has technical and financial collaboration with :
Ø John Deere
Industrial Equipment Company, USA
Ø Hitachi
Construction Machinery Company, Tokyo
Ø Euclid Hitachi,
USA
The company is in trade terms with the following :
Ø Industrial
Enterprises
Ø Jayashree
Enterprises
Ø Maker Castings
India (Private) Limited
Ø Model Heavy
Fabricators Private Limited
Ø Shyam
Enterprises
Ø Savita
Chemicals Limited
Ø Vikas Gears
(India) Limited
Ø Mayur Bhanj
Metals Limited
The company's fixed assets of important value include building,
plant, machinery, equipment, water systems and sanitation, furniture, fixtures
and office appliances and vehicles and transport.
|
Name of the company |
TELCO CONSTRUCTION
EQUIPMENT COMPANY LIMITED |
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|
Presented By |
UTI Bank Limited, No. 9, M.
G. Road, Bangalore – 560001 |
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1) Date and description of
instrument creating the change |
a. 27.08.2003 : Deed of
Hypothecation of machinery and other movable fixed assets CCD – 15. b. 27.08.200 : Standby
Facility Agreement – Agreement for Standby Facility [The above documents
relates to the same and single charge] |
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|
2) Amount secured by the
charge/amount owing on the securities of charge |
Standby facility for
issuance of commercial paper of Rs. 400 millions |
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3) Short particular of the
property charged. If the property acquired is subject to charge, date of the
acquired of the property should be given |
Hypothecation
of all the movable plant and machinery, furniture’s, fixtures, etc. both
present and future being movable properties, now stored at or being stored or
which may hereafter be brought into or stored at or at present installed at
various locations, and also the plant and machinery, which may at any time
hereafter belonging to borrower or borrowers disposal and now or at any time
and from time to time hereafter stored or be stored or brought into or up on
or in course of transit or awaiting transit by any mode of transport to their
factory or premises or at any other place whatsoever and wheresoever in their
possession or occupation or at any other premises or place [all of which
herein after collectively referred to as the said assets’] to secure as a
continuing security. |
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4) Gist of the terms and
conditions and extent and operation of the charge. |
Standby By Letter of Credit
fees – 0.95% to be charged |
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|
5) Name and Address and
description of the person entitled to the charge. |
UTI Bank Limited No. 9, M. G. Road,
Bangalore – 560001, Karnataka, India |
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|
6) Date and brief description of instrument
modifying the charge |
29.08.2003 : Extension of
equitable mortgage over company’s immovable property [No separate Instrument
executed]. Copy of Memorandum of Entry enclosed. |
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7) Particulars of
modifications specifying the terms and conditions or the extent of operations
of the charge in which modification is made and the details of the
modification. |
The present modifications
are as under : The
loan amount of Rs. 400 millions is additionally secured by way of Extension
of equitable mortgage over company’s immovable property detailed hereunder,
the title deeds having been deposited with State Bank of India, Corporate
Accounts Group, 20th Floor, Express Towers, Nariman Point, Mumbai
– 400021 acting as agent for UTI Bank Limited. - all that piece of land in
Sy. No’ set out below in the Belur Industrial Area within the village limits
of Neeralkatti, Mummigatti, Gungaragatti, Hobli Gang, Dharwad, Taluk Dharwad
District, containing by admeasurements 118.76 acres or thereabouts and
bounded as follows that it to say : on or towards the North :
by private land on or towards the South :
by National Highway No. 4 on or towards the East : by
Garag Road on or towards the West : by
Walmi Land Survey Number – wise area
under possession of Telco Construction Equipment Company Limited
And all the plant and
machinery attached to the earth or permanently fastened to anything attached
to the earth, fixed plant and machinery, fixtures and fittings, constructed,
erected or installed thereon or to be constructed, erected or installed
thereon [both present and future] [the “Mortgaged Property”]. |
WEBSITE DETAILS
ABOUT US
Telco Construction Equipment
Company Limited is a joint venture company between Indian automobile giant Tata
Engineering Limited, Mumbai and world leaders in hydraulic technology, Hitachi
Construction Machinery Company Limited, Japan.
Starting
operations in 1961 with the manufacture of friction machines in collaboration
with P&H, USA, today Telcon is a market leader in India. The product range
includes hydraulic excavators, crawler cranes, wheel loaders, backhoe loaders,
off-highway dumpers, motor graders, skid steer loaders, cane loaders and truck
loader cranes. It is now spreading its reach overseas and has already supplied
equipment to some Asian, African and Middle Eastern countries.
Telcon's credentials lies together in its Design capabilities, in its
associations with world leaders such as Hitachi, John Deere, Euclid, Tadano, ZF
and the like, state-of-the-art manufacturing facilities is Jamshedpur and
Dharwad and excellent and wide-spread customer support, the key to smooth
running of capital equipment is well taken care of by its network of more than
30 offices and many more service associates.
Vision :
Maximize
value creation for all its stakeholders by offering world class CONSTRUCTIVE SOLUTIONS in
harmony with the environment.
CMT REPORT [Corruption, Money laundering & Terrorism]
The Public Notice information has been collected
from various sources including but not limited to: The Courts, India
Prisons Service, Interpol, etc.
1] INFORMATION
ON DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court
Declaration :
No records exist to suggest
that subject is or was the subject of any formal or informal allegations,
prosecutions or other official proceeding for making any prohibited payments or
other improper payments to government officials for engaging in prohibited
transactions or with designated parties.
3] Asset
Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record
on Financial Crime :
Charges
or conviction registered against subject: None
5] Records
on Violation of Anti-Corruption Laws :
Charges
or investigation registered against subject: None
6] Records
on Int’l Anti-Money Laundering Laws/Standards :
Charges
or investigation registered against subject: None
7] Criminal
Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation
with Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation
Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press
Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide
comments on Corporate Governance to identify management and governance. These
factors often have been predictive and in some cases have created
vulnerabilities to credit deterioration.
Our Governance Assessment focuses principally on
the interactions between a company’s management, its Board of Directors,
Shareholders and other financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any
existing local laws, regulations or policies that prohibit, restrict or
otherwise affect the terms and conditions that could be included in the
agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 44.86 |
|
UK Pound |
1 |
Rs. 85.24 |
|
Euro |
1 |
Rs. 56.99 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP
CAPITAL |
1~10 |
6 |
|
OPERATING
SCALE |
1~10 |
6 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT
LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT
POINTS |
|
|
|
--BANK
CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER
ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT
POINTS |
|
|
|
--SOLE
DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT
ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
55 |
This score serves as a reference to assess SC’s credit risk and to set the
amount of credit to be extended. It is calculated from a composite of weighted
scores obtained from each of the major sections of this report. The assessed
factors and their relative weights (as indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit
history (10%) Market
trend (10%) Operational
size (10%)
RATING
|
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely
sound financial base with the strongest capability for timely payment of
interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate
working capital. No caution needed for credit transaction. It has above
average (strong) capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial &
operational base are regarded healthy. General unfavourable factors will not
cause fatal effect. Satisfactory capability for payment of interest and
principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is
considered normal. Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable &
favourable factors carry similar weight in credit consideration. Capability
to overcome financial difficulties seems comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are
apparent. Repayment of interest and principal sums in default or expected to
be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute credit risk
exists. Caution needed to be exercised |
Credit not recommended |