MIRA
INFORM REPORT
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Report Date : |
31.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
TATA MOTORS LIMITED |
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Registered Office : |
Bombay House, 24, Homi Mody Street, Hutatma Chowk, Mumbai – 400 001, Maharashtra, India |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
01.09.1945 |
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Com. Reg. No.: |
11-4520 |
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CIN No.: [Company
Identification No.] |
L28920MH1945PLC004520 |
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MUMT00054F |
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TAN No.: [Tax
Deduction & Collection Account No.] |
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PAN No.: [Permanent
Account No.] |
AAACT2727Q |
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Legal Form : |
Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacture and Seller of Commercial Vehicles, Passenger Vehicles, Construction Equipments and Machine Tools. |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 182000000 |
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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 a well-established, reputed and respectable company of the country’s largest industrialists viz., The Tata Group. Available information indicates high financial responsibility of the company and its management. Fundamentals are strong and healthy. Business is active. It’s payments are always correct and as per commitments.The company can be considered for any normal business dealings at usual trade terms and conditions. |
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LOCATIONS
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Registered Office : |
Bombay House, 24, Homi Mody Street, Hutatma Chowk, Mumbai – 400 001, Maharashtra, India |
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Tel. No.: |
91–22–66658282/66658282 |
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Fax No.: |
91–22–66657799/66657799 |
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E-Mail : |
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Website : |
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Factory 1 : |
v Pimpri, Pune – 411 018, Maharashtra v Jamshedpur Towns Post Office, Jamshedpur – 831 010, Bihar v Chinchwad, Pune – 411 033, Maharashtra v Chinhat – Deva Road, Lucknow – 227 105, Uttar Pradesh v KIADB Block – 2, Belur Industrial Area, Dharwad – 580 007, Karnataka |
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Branches : |
v 503, Barton
Centre, 5th Floor 84, Mahatma
Gandhi Road Bangalore - 560
001 Tel:
080-25320321, Fax : 080-25580019 e-mail:
tsrlbang@tatashare.com v Bungalow
No.1,"E"Road Northern Town,
Bistupur Jamshedpur-831
001 Tel:
0657-2426616, Fax: 0657 - 2426937 Email :
tsrljsr@tatashare.com v Tata Centre, 1st Floor, 43, Jawaharlal
Nehru Road Kolkata - 700 071 Tel:
033-22883087, Fax : 033 - 22883062 e-mail :
tsrlcal@tatashare.com v Plot No.2/42,
Sant Vihar Ansari Road,
Daryaganj New Delhi- 110002 Tel: 011
-23271805, Fax : 011 - 23271802 e-mail:
tsrldel@tatashare.com |
DIRECTORS
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Name : |
Mr. Ratan N. Tata |
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Designation : |
Chairman |
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Name : |
Mr. N. A. Soonawala |
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Designation : |
Director |
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Name : |
Mr. J. J. Irani |
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Designation : |
Director |
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Name : |
Mr. J. K. Setna |
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Designation : |
Director |
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Name : |
Mr. V. R. Mehta |
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Designation : |
Director |
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Name : |
Mr. R. Gopalakrishnan |
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Designation : |
Director |
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Date of Birth/Age : |
25/12/1945 |
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Date of Appointment : |
22/12/1998 |
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Qualification : |
B. Technical in
Electronics from IIT Kharagpur, Advanced Management Programme, Harvard
Business School |
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Other Directorships: - |
·
Birla-Tata
AT & T Limited ·
Castrol
India Limited ·
ICI Limited ·
Rallis India
Limited ·
Sheba
Properties Limited ·
Tata
AutoComp Systems Limited ·
Tata
Chemicals Limited ·
Tata
Honeywell Limited ·
Tata
Internet Services Limited ·
Tata Sons
Limited ·
Tata
Technologies Limited ·
Tata
Teleservices Limited ·
The Tata
Power Company Limited |
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Name : |
Mr. N. N. Wadia |
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Designation : |
Director |
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Name : |
Mr. Helmut Petri |
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Designation : |
Director |
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Name : |
Mr. S. A. Naik |
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Designation : |
Director |
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Name : |
Mr. Ravi Kant |
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Designation : |
Executive
Director |
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Name : |
Mr. Praveen P. Kadle |
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Designation : |
Executive
Director |
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Name : |
Mr. V. Sumantran |
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Designation : |
Executive
Director |
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Date of Birth: |
27/09/1958 |
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Date of Appointment: |
12/11/2001 |
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Qualification: |
B. Technical in
Aerospace Engineering from IIT, Chennai, Ph. D in Aerospace Engineering from
Virginia Technical (USA) and a Master’s degree of management of Technology from
Renssalaer Polytechnic Institute |
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Name : |
Mr. P. K. M. Fietzek |
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Designation : |
Alternate
Director to Mr. Helmut Petri |
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Name : |
Mr. Sam M Palia |
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Designation : |
Additional
Director |
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OTHER PERSONNEL: |
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Name : |
Mr. H. K. Sethna |
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Designation : |
Company Secretary |
KEY EXECUTIVES
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Name : |
A P Arya |
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Designation : |
President
(Jamshedpur & Lucknow Works) |
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Name : |
P M Telang |
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Designation : |
President (Pune
& Dharwad Works) |
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Name : |
Rajiv Dube |
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Designation : |
Sr. Vice
President (Commercial) PCBU |
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Name : |
C Ramakrishnan |
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Designation : |
Vice President (Chairman's
Office) |
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Name : |
Shyam Mani |
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Designation : |
Vice President
(Sales & Marketing) CVBU |
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Name : |
RT Singh |
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Designation : |
Vice President
(Manufacturing) |
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Name : |
K C Girotra |
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Designation : |
Vice President
(Lucknow Works & FBV) |
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Name : |
R S Thakur |
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Designation : |
Vice President
(Finance) |
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Name : |
R R Akarte |
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Designation : |
Vice President (Manufacturing) |
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Name : |
M V Rajarao |
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Designation : |
Vice President (Manufacturing) |
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BUSINESS DETAILS
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Line of Business : |
Manufacture and Seller of Commercial Vehicles, Passenger Vehicles, Construction Equipments and Machine Tools. |
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Products : |
v Heavy and medium commercial vehicles v Cars v Light commercial vehicles |
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GENERAL
INFORMATION
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Customers : |
v AKI Industries Private Limited v Abhaya Precision Industries Private Limited v Adarsh Engineering Works v Auto Knight Private Limited v B. B. Electrotechnic v Bharat Engineering Works v Bhalotia Engineering Works Private Limited v Calcutta Fan Works Limited v Castlewood Brush Industries Private Limited v Cotmac Private Limited v Electro Alloys Corporation v Electro Ferro Alloys Private Limited v Evercoat Technical Service India Private Limited v ARM Controls & Systems Private Limited v Auto Turn Industries v Best Cast IT Limited |
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No. of Employees : |
37,527 |
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Bankers : |
v Bank of America v State Bank of India v Central Bank of India v Bank of India v Bank of Baroda v Standard Chartered Grindlays Bank Limited v Bank of Maharashtra v The Hongkong & Shanghai Banking Corporation Limited v Union Bank of India v Citibank N.A. v Bank of Nova Scotia v Deutsche Bank v Bank of America v Corporation Bank v HDFC Bank Limited |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Deloitte Haskins & Sells Chartered Accountant |
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Memberships : |
1. Confederation of Indiaan Industry |
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Associates : |
v Concorde Motors Limited v Float Glass India Limited v Haldia Petrochemicals Limited v Tata Auto Computer Systems Limited v Tata Cummins Limited v Tata Finance Limited v Tata Holset Limited v Tata International Limited v Tata Precision Industries Pte. Limited v Tata Sons Limited v Nita Company Limited v The Tata Iron & Steel Company Limited v Tata Project Limited v Tata Export Limited v Tata Electric Companies v TRF Limited v Tata Consultancy Services and many other member companies |
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Subsidiaries : |
v Telco Construction Equipment Company Limited v Tata Technologies (India) Limited v Sheba Properties Limited v Minicar (India) Limited v HV Axles Limited v HV Transmissions Limited v Tata Technologies, U.S.A. v Telco Dadajee Dhackjee Limited v TAL Manufacturing Solutions Limited |
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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40,00,00,000 |
Equity Shares |
Rs. 10 each |
Rs. 4000.000 millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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382870000 |
Equity Shares |
Rs. 10 each |
Rs. 3828.700 Millions |
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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 |
3828.700 |
3617.900 |
3568.300 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
51542.000 |
37496.00 |
32367.700 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
55370.700 |
41113.900 |
35936.000 |
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LOAN FUNDS |
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1] Secured Loans |
8227.600 |
4898.100 |
9426.500 |
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2] Unsecured Loans |
21140.800 |
20056.100 |
3171.200 |
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TOTAL BORROWING |
29368.400 |
24954.200 |
12597.700 |
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DEFERRED TAX LIABILITIES |
0.000 |
5652.800 |
5141.500 |
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TOTAL |
84739.100 |
71720.900 |
53675.200 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
35700.400 |
31576.700 |
29617.100 |
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Capital work-in-progress |
9511.900 |
5388.400 |
2860.900 |
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INVESTMENT |
20151.500 |
29120.600 |
30567.700 |
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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 |
0.000 |
61.200 |
0.000 |
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Sundry Debtors |
20122.400 |
16013.600 |
11474.400 |
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Cash & Bank Balances |
7157.800 |
8113.200 |
6149.900 |
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Other Current Assets |
11194.300 |
20050.400 |
7704.900 |
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Loans & Advances |
59646.100 |
27223.500 |
11627.800 |
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Total
Current Assets |
98120.600 |
71461.900 |
36957.000 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
66736.100 |
54747.700 |
42243.000 |
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Provisions |
12150.400 |
11260.600 |
4306.400 |
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Total
Current Liabilities |
78886.500 |
66008.300 |
46549.400 |
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Net Current Assets |
19234.100 |
5453.600 |
(9592.400) |
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MISCELLANEOUS EXPENSES |
141.200 |
181.600 |
221.900 |
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TOTAL |
84739.100 |
71720.900 |
53675.200 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
246269.700 |
175852.200 |
132821.200 |
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Other Income |
0.000 |
0.000 |
0.000 |
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Total Income |
246269.700 |
175852.200 |
132821.200 |
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Profit/(Loss) Before Tax |
20533.800 |
16519.000 |
12923.400 |
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Provision for Taxation |
5245.000 |
4149.500 |
4820.000 |
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Profit/(Loss) After Tax |
15288.800 |
12369.500 |
8103.400 |
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Export Value |
NA |
14978.500 |
10166.400 |
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Import Value |
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NA |
6269.800 |
2728.100 |
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Expenditures : |
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Cost of Goods Sold |
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Manufacturing Expenses |
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Administrative Expenses |
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Raw Material Consumed |
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Purchases made for re-sale |
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Consumption of stores and spares parts |
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Increase/(Decrease) in Finished Goods |
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Salaries, Wages, Bonus, etc. |
245292.500 |
152480.400 |
138730.600 |
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Managerial Remuneration |
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Payment to Auditors |
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Interest |
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Insurance Expenses |
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Power & Fuel |
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Depreciation & Amortization |
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Other Expenditure |
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Total Expenditure |
245292.500 |
152480.400 |
138730.600 |
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QUARTERLY /
SUMMARISED RESULTS
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PARTICULARS |
30.06.2006 (1st
Quarter ) |
30.09.2006 (2nd
Quarter) |
31.12.2006 (3rd
Quarter) |
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Sales Turnover |
57834.100 |
65717.900 |
69568.400 |
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Other Income |
859.100 |
848.300 |
143.200 |
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Total Income |
58693.200 |
66566.200 |
69711.600 |
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Total Expenditure |
51574.700 |
58311.600 |
60337.500 |
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Operating Profit |
7118.500 |
8254.600 |
9374.100 |
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Interest |
725.500 |
955.800 |
851.700 |
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Gross Profit |
6393.000 |
7298.800 |
8522.400 |
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Depreciation |
1410.500 |
1434.900 |
1435.000 |
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Tax |
1164.000 |
1446.700 |
1955.700 |
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Reported PAT |
3818.500 |
4417.200 |
5131.700 |
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200606 Quarter
1
--------------- Notes Expenditure Includes (Increase) / Decrease in Stock in
Trade & Work in progress Rs (3853.30) million Consumption of Raw Materials
& Components Rs 39530.60 million Purchase of product for sale Rs 3119.90
million Staff Cost Rs 3024.30 million Other Expenditure Rs 9646.20 million
Product Development expenses Rs 103.20 million Interest Includes Gross Interest
Rs 854.50 million Interest income/ Interest Capitalised Rs (129.00) million
Depreciation includes Depreciation & Amortisation Tax indicates Tax Expense
Provision & Contingencies Indicates Provision / (reversal) for diminution
in value of Investments (net) EPS is Basic Status of Investor Complaints for
the quarter ended June 30, 2006 Complaints Pending at the beginning of the
quarter 03 Complaints Received during the quarter 10 Complaints disposed off
during the quarter 10 Complaints unresolved at the end of the quarter 03 1.
Figures for the previous period have been regrouped / reclassified wherever
necessary. 2. The commercial vehicles sales volumes in the corresponding
quarter of the previous year were mainly impacted by unanticipated difficulties
in vehicle certification and procurement of some critical components. 3. Other
expenditure includes foreign exchange loss of Rs 783.00 million for the quarter
ended June 30, 2006 as against a profit of Rs 145.00 million in the quarter
ended June 30, 2005. The corresponding figure for the year ended March 31, 2006
was a loss of Rs 203.50 million. 4. During this quarter, the Company has
reversed export incentive of Rs 355.70 million that was accrued during the
previous year, in view of reduction with retrospective effect in the incentive
rate under Target Plus Export Incentive Scheme by the Government of India. 5.
The Company is engaged mainly in the business of automobile products consisting
of all types of commercial and passenger vehicles including financing of the
vehicles sold by the Company. These, in the context of Accounting Standard 17
on Segment Reporting, issued by the Institute of Chartered Accountants of
India, are considered to constitute one single primary segment. 6. Subsequent
to the quarter ended June 30, 2006, 8,800 1% Foreign Currency Convertible Notes
(FCCN) (2008) and 6,000 Zero coupon FCCN (2009) representing 8.8% and 6%
respectively of the said Notes, have been converted into 16,20,003 and 4,59,076
Ordinary Shares of Rs 10/- each at a premium as per the terms of issue. 7. The
Statutory Auditors have carried out an audit of the results for the quarter
ended June 30, 2006. 8. The above Results have been reviewed by the Audit
Committee of the Board and were taken on record by the Board of Directors at
its meeting held on July 25, 2006.
200609 Quarter
2
--------------- Notes EPS is Basic Status of Investor Complaints for the
quarter ended September 30, 2006 Complaints Pending at the beginning of the
quarter 03 Complaints Received during the quarter 62 Complaints disposed off during
the quarter 18 Complaints unresolved at the end of the quarter 47 1. Figures
for the previous period have been regrouped/reclassified wherever necessary. 2.
Other expenditure is net of foreign exchange gain of Rs 253.90 million for the
quarter ended September 30, 2006 as against loss of Rs 196.00 million included
for the quarter ended September 30, 2005. The corresponding figures for six
months ended September 30, 2006 and September 30, 2005 and for the year ended
March 31, 2006 are losses of Rs 529.10 million, Rs 51.00 million and Rs 203.50
million ,respectively. 3. During the quarter ended September 30, 2006, the
Company has invested Rs 3450.00 million towards equity capital in its
subsidiary company TML Financial Services Ltd. 4. During the quarter ended
September 30, 2006, 8,800 1% Foreign Currency Convertible Notes (2008) and
6,175 Zero Coupon Foreign Currency Convertible Notes (2009) have been converted
into 16,20,003 and 4,72,465 Ordinary Shares of Rs. 10/- each at a premium as
per the terms of issue. 5. The Company is engaged mainly in the business of
automobile products consisting of all types of commercial end passenger
vehicles Including financing of the vehicles sold by the Company. These in the
context of Accounting Standard 17 on Segment Reporting, issued by the Institute
of Chartered Accountants of India, are considered to constitute one single
primary segment. 6. The Statutory Auditors have carried out an audit of The
results stated in (B) above for the quarter and half year ended September 30,
2006. 7. The above Results have been reviewed by the Audit Committee of the
Board and were approved by the Board of Directors at its meeting held on
October 30, 2006.
200612 Quarter
3
--------------- Notes Expenditure Includes (Increase) / Decrease in Stock in
Trade & Work in progress Rs (1355.20) million Consumption of Raw Materials
& Components Rs 48975.70 million & Purchase of product for sale Staff
Cost Rs 3580.80 million Other Expenditure Rs 8845.00 million Product
Development expenses Rs 286.60 million Interest Includes Gross Interest Rs
1023.10 million Interest income/ Interest Capitalized Rs (171.40) million
Depreciation indicates Depreciation & Amortization Tax indicates Tax
Expense Extra ordinary items includes Provision / (reversal) for diminution in
value of Rs 3.40 million Investments (net) Employee Separation Cost Rs 1.20
million EPS is Basic Status of Investor Complaints for the quarter ended
December 31, 2006 Complaints Pending at the beginning of the quarter 47
Complaints Received during the quarter 74 Complaints disposed off during the
quarter 118 Complaints unresolved at the end of the quarter 03 1. Figures for
the previous period have been regrouped / reclassified wherever necessary. 2.
Sales / Income from operations Includes foreign exchange gain of Rs 1316.10
million for the quarter ended December 31, 2006 as against loss of Rs 432.70
million included in other expenditure for the quarter ended December 31, 2005.
The corresponding figures for nine months ended December 31, 2006 is gain of Rs
702.70 million included in Sales / Income from operations, and losses of Rs
479.10 million and Rs 185.30 million in other expenditure for nine months ended
December 31, 2005 and year ended March 31, 2006 respectively. 3. Other income
for the quarter and nine months ended December 31, 2005 includes an amount of
Rs 1643.00 million representing profit on sale of shares of a subsidiary, Telco
Construction Equipment Company Ltd. 4. During the quarter ended December 31,
2006, 1385 Zero coupon Foreign Currency Convertible Notes (2009) have been
converted into 1,05,970 Ordinary Shares of Rs 10/- each at a premium as per the
terms of issue. 5. The Company is engaged mainly in the business of automobile
products consisting of all types of commercial and passenger vehicles Including
financing of the vehicles sold by the Company. These, in the context of
Accounting Standard 17 on Segment Reporting, Issued by the Institute of
Chartered Accountants of India, are considered to constitute one single primary
segment. 6. Public Shareholding excludes 8.92% (6.79% as on December 31, 2005)
of Citibank NA as Depositary for ADR holders. 7. The Statutory Auditors have
carried out an audit for the quarter and nine months ended December 31, 2006.
8. The above, Results have been reviewed by the Audit Committee of the Board
and were approved by the Board of Directors at its meeting held on January 23,
2007.
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity Ratio |
0.56 |
0.49 |
0.44 |
|
Long Term Debt-Equity Ratio |
0.49 |
0.47 |
0.40 |
|
Current Ratio |
1.08 |
0.87 |
0.76 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
3.25 |
3.20 |
2.55 |
|
Inventory |
13.10 |
14.66 |
13.15 |
|
Debtors |
31.27 |
28.51 |
19.43 |
|
Interest Cover Ratio |
8.00 |
8.58 |
7.38 |
|
Operating Profit Margin(%) |
12.11 |
11.51 |
12.38 |
|
Profit Before Interest And Tax Margin(%) |
9.91 |
9.28 |
9.86 |
|
Cash Profit Margin(%) |
8.66 |
8.37 |
7.87 |
|
Adjusted Net Profit Margin(%) |
6.46 |
6.14 |
5.34 |
|
Return On Capital Employed(%) |
31.25 |
32.76 |
33.77 |
|
Return On Net Worth(%) |
31.36 |
32.12 |
26.20 |
STOCK PRICES
|
Face Value |
Rs.10/- |
|
|
High |
Rs.756.00/- |
|
|
Low |
Rs.736.60/- |
|
LOCAL AGENCY
FURTHER INFORMATION
Released on : 19th March,2007
Tata
Motors rolls out the 100,000th Ace in just 22 months
Sales
since launch in May 2005 already over 93000 units
Tata Motors rolled out its
100,000th Ace from its Pune Plant. Tata Motors has achieved this milestone
within 22 months of the launch of the Ace, India’s first mini-truck, in May
2005. The 100,000th Ace was flagged off by Mr. Ratan N. Tata, Chairman, Tata
Motors.
Since its launch in India, the Ace has received stupendous response from
customers across India and has rewritten the dynamics of the commercial vehicle
industry. Besides having been introduced in all major states of India, it has
also been launched in Sri Lanka.
Tata Motors is setting up a dedicated plant for the Ace at Pant Nagar in
Uttaranchal, with an annual capacity of 250,000 units. The plant will begin
production this year.
Commenting on the achievement, Mr. Ravi Kant, Managing Director, Tata
Motors, said, “It is a moment of great pride and satisfaction for all of us at
Tata Motors on achieving this milestone in such a short span of time. We are
happy that we have been able to meet customers’ need for a mini-truck for the
last-mile connection, while providing comfort, style and easy maintenance. What
particularly pleases us is that the Ace has been able to generate
self-employment, with many of its owners being individuals who have entered the
transportation industry for the first time.”
The Ace is powered by a small and efficient unique twin cylinder 16PS IDI 700cc
diesel engine. Suitable for both rural and urban use, the Ace has the ability
to carry a variety of payloads and has the agility to navigate narrow by-lanes
with its turning radius of 4.3 metres.
The Ace is a high performance,
low maintenance, safe and reliable mini-truck with sporty car-like features to
ensure comfort in ride and handling. It has an ergonomically designed,
all-steel cabin, including elegant two-toned seats, clear instrument cluster,
utility trays, magazine pockets, twin-blade, twin-speed wipers and combination
switches. The conveniently positioned gearshift lever and parking brake enhance
comfort in ride and handling. The Ace meets all safety norms, including frontal
crash, roof crush and rear wall strength. To ensure the safety of the driver
and co-driver, seat belts are standard fitment. Disc and drum brakes in the
front and rear respectively ensure high performance in sudden braking while the
large windscreen and rear window allows for higher level of vision and clarity.
Tata Motors has also recently launched the Tata Ace HT (High Torque), a special
variant to deal with a wide variety of gradients especially to deal with the on
ground reality of the North Eastern region slopes and climbs more effectively.
Tata Motors has also developed several applications of the Tata ACE, such as
Water Tanker, Delivery Van - Box Type (for high-volume low-weight cargo),
Delivery Van - Bodyline (for precious cargo and courier services), Garbage
Tipper, D'Siltman (for desalting underground drainage and wells), Dumper
Placer, and ACE Elevated Platform.
Over the years, Tata Motors has focused on introducing new products based on
deep understanding of customers needs. The outstanding acceptance of the Ace is
a testimony to the success of that approach.
About Tata
Motors
Tata Motors is India's largest
automobile company, with revenues of US$ 5.5 billion in 2005-06. With over 4
million Tata vehicles plying in India, it is the leader in commercial vehicles
and the second largest in passenger vehicles. It is also the world's fifth
largest medium and heavy truck manufacturer and the second largest heavy bus
manufacturer. Tata cars, buses and trucks are being marketed in several
countries in Europe, Africa, the Middle East, South Asia, and South East Asia
and in Australia. Tata Motors and Fiat Auto have announced the formation of an
industrial joint venture in India to manufacture passenger cars, engines and
transmissions for the Indian and overseas markets. Tata Motors already
distributes Fiat-branded cars in India. The company’s international footprint
include Tata Daewoo Commercial Vehicle Co. Ltd. in South Korea; Hispano
Carrocera, a bus and coach manufacturer of Spain in which the company has a 21%
stake; a joint venture with Marcopolo, the Brazil-based body-builder of buses
and coaches; and a joint venture with Thonburi Automotive Assembly Plant
Company of Thailand to manufacture and market pickup vehicles in Thailand. Tata
Motors has research centres in India, the UK, and in its subsidiary and
associate companies in South Korea and Spain.
The company is in trade terms with: -
Atlantic Engineering Private Limited
Auto Plastic Injection Moulders
Auto Works
Auto Brakes and Ancillaries Private Limited
Auto Clutches
Auto Feed
Auto Fibre Craft
Auto Knight Private Limited
Auto Lab
Auto Steel and Rubber Industries
Auto Turn Industries
Auto Window
Autocomp Corporation
Autocomps Engineering (Pune) Private Limited
Autofeed
The company’s fixed asset of important value include Land,
Building, Leasehold, Railway Sidings, Plant, Machinery, Equipments, Water
System & Sanitation, Furniture, Fixtures & Office Appliances, Technical
Know-how, Vehicles and Transport, Capital Work-in-Progress.
.
Generic Names of the Principal Products/Services of the company are as under:-
|
Item Code No. (ITC
CODE) |
8702 to 8708 except 8705 and 8707 |
|
Product Description |
Chassis and Vehicles for transport of goods and passengers, including motorcar and parts thereof. |
History
Tata Motors (Fomerly known as Tata Engineering and Locomotive
Company Limited),Controlled by the House of Tatas, it is the sixth-largest
manufacturer of trucks in the world. The commercial diesel vehicles, which were
called Tata Mercedes Benz, are now sold under the name Tata after the expiry of
the collaboration agreement with Daimler-Benz, Germany. Apart from
manufacturing light, medium and heavy commercial vehicles, it alsomanufactures
passenger cars, utility vehicles, excavators and machine tools. The
manufacturing units are located at Jamshedpur, Pune, Lucknow and Dharwad.
Major milestones:
1923 Peninsular Locomotive Company started its operations in
Tatanagar, Jamshedpur (Inspired by the availability of steel from TISCO). This
is the location of the Tata Motors Plant of today.
1927 East India Railway took over Peninsular Locomotive Company. The
manufacture of Passenger Carriage Underframes for the Indian Railway commenced.
It contributed to the war effort of the Allied forces during the World War II
when it was called upon to manufacture armored cars for the North African
Campaign (utilizing Tisco Steel). 1945 Tata Sons purchased the Tatanagar
shops from the Government of India on June 1, 1945 for Rs. 25.39 lakhs with the
aim of immediately manufacturing steam locomotive boilers. Later it planned to
manufacture complete locomotives and other engineering products. 1946 Tata
Enginering undertook manufacture of 5000 'KC' broad gauge open wagons for the
Indian Railway. The Managing Agency Tata Sons was transferred to Tata Industries
on July 1, 1946. The Managing Agency system continued till it was abolished by
an act of Parliament in 1970.
1947 Manufacture of boilers for imported locomotives
commenced. This line was discontinued in April 1958.
1948 Steam Road Roller introduced in collaboration with
Marshal Sons (UK).
1950 Collaboration signed with M/s Krauss-Maffei, W. Germany
formanufacture of steam locomotives.
1954 Collaboration with M/s Daimler -Benz AG, W.Germany, for
the manufacture of medium commercial vehicles at Jamshedpur. First commercial
vehicle produced within six months of agreement. 1956 Steel foundry set up
in collaboration with Usines Emile Henricot of Court St. Etienne,
Belgium. 1959 Research and Development Center set up at Jamshedpur
1960 The company's name, which was Tata Locomotive &
Engineering Company Limited., was changed to Tata Engineering & Locomotive
Company Limited.
1961 Collaboration with M/s Pawling & Harnischfeger
(P&H), U.S.A. for manufacture of cable type excavators and cranes. First
crane produced in the same year. Commencement of exports - first truck exported
to Ceylon, now, Sri Lanka. 1964 Manufacture of popular 1210 vehicle model
(with 7.5 T payload) commenced.
1966 Acquisition of Investa Machine Tool Co. Setting up of Machine Tools
Division at Pune.Engineering Research Centre set up at Pune to cater to
automobile research and development. 1967 Press Tool Division set up at
Pune. Vehicle manufacture facilities steadily built up at Pune. 1968
Collaboration with M/s Hueller Hille Gmbh, W. Germany, for the manufacture of
unit construction special purpose machines.
1969 The "T" replaces the three-pointed Mercedes
Star.
1970 Last locomotive produced. (Cumulative production 1155
nos.)
1971 DI engines introduced.
1977 First commercial vehicle produced at Pune.
1983 HCVs, including articulated vehicles, introduced.
1984 Collaboration with M/s Hitachi Construction Machinery
Co. Limited., Japan, for manufacture of hydraulic excavators. Expansion of
capacity at Pune.
1985 First hydraulic excavator produced under Hitachi
collaboration. Broad banding of licence (to manufacture only commercial
vehicles above 8 Ton GVW) to include manufacture of all medium, heavy and light
commercial vehicles, jeep type vehicles and passenger cars. Broad banding of
excavator licence to manufacture all types of earthmoving machinery. Broad
banding of machine tool licence to manufacture all types of machine tools.
Collaboration with Niigata Engineering Co. Limited, Japanfor NC / CNC
Horizontal Machining Centers and with Nachi-Fujikoshi Corp., Japan for NC /CNC
In line Machining Centers and flexible manufacturing systems.
1986 First Light Commercial Vehicle - TATA 407 produced. This was a
completely indigenous design with minimal import content. Also met fuel
efficiency norms specified by the government.
1987 Second model of completely indigenously designed LCV -
TATA 608 produced. LPT 2416 a multi-axled vehicle introduced.
1989 Third model of LCV - Tatamobile 206 produced
Collaboration with M/s Kloth-Senking Metalligessari, Gmbh, W.Germany, for
know-how of manufacturing aluminium castings. Collaboration with Hitachi,
Japan, for manufacture of a new generation EX series hydraulic excavator. 1990
First EX model hydraulic excavator produced. Indigenously designed front-end wheel
loader - TWL 3036 introduced.
1991 Introduction of indigenously designed passenger cars -
Tata Sierra and Tata Estate. TAC 20 crane produced. One-millionth vehicle
rolled out.
1992 Production of MCV's commenced at Lucknow. LPT 2213 - a
multi-axled vehicle launched. Collaboration with Nachi-Fujikoshi Corp., Japan,
for manufacture of robots.
1993 Joint Venture Agreement signed with Cummins Engine Co.
Inc.to manufacture high horsepower and emission-friendly diesel engines for
medium and heavy commercial vehicles. Tata Cummins Private Limited incorporated
in Jamshedpur, Bihar, on 0ctober 20, 1993.
1994 Tata Sumo - a multi-utility vehicle launched. LPT
709 - a full forward control, light commercial vehicle launched. Joint Venture
Agreement signed with M/s Daimler - Benz / Mercedes - Benz for manufacture of
Mercedes - Benz passenger cars in India. Joint Venture Agreement signed with
Tata Holset Limited., U.K. for manufacturing turbochargers to be used on
Cummins engines. Mercedes-Benz (India) Limited. incorporated in Pune,
Maharashtra, on November 22, 1994. Tata Holset Private. Limited. incorporated
in Dewas, Madhya Pradesh, on December 20, 1994. Collaboration with Schaudt
Maschinenbau GmbH, for manufacturing CNC cylindrical grinding machines. The
Company was restructured into two Strategic Business Units:Automobile Business
Unit (ABU), and Construction Equipment Business Unit (CEBU).
1995 Collaboration with Hitachi, Japan, for the manufacture
of mini excavator models EX 40 and EX 60. Production of robots in collaboration
with Nachi-Fujikoshi Corp., Japan commenced. Mercedes Benz car E220 (W124)
launched. Tata Cummins engine plant inaugurated.
1996 First engine produced by Tata Cummins in January 1996.
LPT 2516 vehicle fitted with Tata Cummins engine launched on March 4, 1996.Tata
Sumo Deluxe launched. Tata Holset's turbo charger plant inaugurated on November
25, 1996. 688 acres of land at Dharwad (Karnataka) were allotted for Auto and
CEBU Units, in Dec 1996. Concorde Motors Limited., a Joint Venture was established
between Tata Engineering and Jardine International Motors (Mauritius)
Limited.
1997 Industrial Entrepreneurs Memorandum was filed for taking up
manufacture of special purpose vehicles and construction equipment at Dharwad
in Jan 1997. Management Services Division of the Company was transferred to the
wholly owned subsidiary of Tata Engineering - Tata Technologies (I) Limited, in
Apr 1997. Tata Sierra Turbo launched. 100,000th Tata Sumo rolled out. The
commercial vehicle, LPT 909 introduced.
1998 Tata Safari - India's first Sports Utility vehicle launched in Jan
1998. Concorde Motors Limited., a Joint Venture between Tata Engineering and
Jardine International Motors (Mauritius) Limited. was appointed as dealer for
the Company's passenger cars in several cities across the country, in Feb 1998.
Two millionth vehicle rolled out.Collaboration with Hitachi, Japan, for
manufacture of Series V excavators to replace Series I & III machines, in
Mar 1998. Indica, India's first fully indigenous car, launched in Dec 1998.
Telco Construction Equipment Company Limited. (TELCON) came into being as a
subsidiary of Tata Engineering, in Dec 1998.
1999 An overwhelming 115,000 bookings for Indica were made against full
payment within a week, in Jan 1999. New TATA Logo unveiled.The company would
hereafter be called " Tata Engineering". Commercial production of
Indica begins and first car is sold. Construction Equipment Business Unit is
transferred to TELCON. In Oct 1999, the Company won the National award for
R&D Efforts in Development of Indigenous Technology in the Mechanical
Engineering Industries Sector instituted by Department of Scientific and
Industrial Research, Ministry of Science and Technology for the year 1999.
2000 Order for 500 Nos. of Tata Indica received for Malta. First batch of
160 Nos. exported in Jan 2000. Indica with Bharat Stage II (Euro II) compliant
diesel engine launched in Feb 2000. Machine Tools and Growth Divisions, Axle
Division and Transmission Division of Tata Engineering transferred to newly
formed subsidiaries Telco Automation Limited., HV Axles Limited. and HV
Transmission Limited. respectively on March 31 2000. The Automobile Business
Unit was restructured into Commercial Vehicles Business Unit and Passenger Car
Business Unit, in Mar 2000. Tata Engineering bagged the National Award for
successful commercialization of indigenous technology by an industrial concern
for the year 2000, for the indigenous development and commercialization of Tata
Indica, in Mar 2000. Utility vehicles with Bharat Stage II (Euro II) compliant
engine launched, in Mar 2000. Indica 2000, Bharat Stage II (Euro II) compliant
with Multi Point Fuel Injection petrol engine launched, in Apr 2000.Hitachi
inducted as an equity partner for TELCON under shareholder's agreement with
Tata Engineering.2001 The next generation of Indica, Indica V2 launched in
January, along with 2 new models- DLS in Diesel and LSI in the Indica 2000
range. 100,000th Indica rolled out in March.Launch of CNG Indica in June.
The Indica has been recognised as the "most improved car in the
industry" and the Indica brand has emerged as one of the strongest Indian
brands to have been created of late as well established and renowned global
brands. At the Auto Expo 2002 held in Delhi in January 2002, the company
unveiled the new three box Sedan offering on the Indica platform and the same
was successfully launched in the fag end of 2003 in the name of Indica Sedan as
its first offering in the entry midsize segment. A seven seater Multi-purpose vehicle,
Tata Indiva was unveiled at Geneva Auto Show in March 2002.
As per plans, the company came out with rights issue in Oct. 2001 raising
Rs 6710.000 Millions . The issue was of simultaneous but unlinked convertible debentures
with warrants and non-convertible debentures with warrants. Convertible portion
of Rs 4157.700 Millions has been
converted on 31st March 2002 at Rs 65 per share. Hence share capital increased
to Rs 3198.200 Millions from Rs 2559.000 Millions . Equity will rise to Rs
3445.700 Millions between 6th June 2003
to 30th Sept. 2004 if all warrants issued are converted into shares at the
exercise price of Rs 120. The non-convertible portion of Rs 2558.600 Millions
bears interest rate of 11%. In 2002-03 the company made a turnaround,which was
planned vigorously since 2001-02. The various initiatives which focused on cost
reduction,right sizing the organisation,volume/market share gains,product
quality and the launch of new products hav enabled the same company a
turnaround one. During 2003 the company entered into a manufacturing &
supply/distribution agreements with M G Rover Group UK for export of cars to UK
and Europe. In order to reflect its core business of design, development and
marketing of automobiles the Board has decided to change the name of the
company to 'Tata Motors Limited'.
The subsidiaries of Tata Motors Limited are Tata Daewoo
Commercial Vehicle Company Limited, Telco Construction Equipment Company
Limited, Tata Technologies Limited, TAL Manufacturing Solutions Limited, HV
Transmissions Limited, HV Axles Limited, Sheba Properties Limited, Concorde
Motors (India) Limited, Concorde Motors Limited and Telco Dadajee Dhackjee
Limited. During the year 2003-04 the Company acquired Daewoo Commercial
Vehicle Company Limited for a price of Rs.4650.000 Millions at Gunsan in
Republic of South Korea. The BODs have considered and approved the
proposal for the merger of its two subsidiaries,Telco Dadajee Dhackjee Limited
& Suryodaya Capital & Finance(Bombay) Limited with the company at the
meeting held on 10.01.2005.Considering that 100% of the paid up capital of the
two subsidiaries is held by Tata Motors,thus no shares of Tata Motors Limited
are contemplated to be issued under the proposed Scheme of Amalgamation. The
BODs have also considered and approved at the meeting held on 10.01.2005,the
merger of Tata Finance Limited with the company. According to the scheme of
Amalgamation,all Equity Shareholders of Tata Finance Limited will be entitled to
receive Eight Equity Shares of Rs.10/- each of Tata Motors Limited for every
Hundred Equity Shares of Rs.10/- each held in Tata Finance Limited.
The company has enhanced its installed capacity of Motor Vehicles for transport
of ten or more persons including the driver, Motor cars and other motor
vehicles for transport of persons, motor vehicles for transport of goods,
Chassis fitted with engine for motor vehicles at Pune by 94500 Nos and with
this expansion total installed capacity of Motor Vehicles for transport of ten
or more persons including the driver, Motor cars and other motor vehicles for
transport of persons, motor vehicles for transport of goods, Chassis fitted
with engine for motor vehicles has increased to 424500 Nos in 2005.
During 2004-05 the company has launched Tata Sumo
Victa, Tata Spacio Gold & Tata Indigo Marina in Passenger Vehicles segment
and Tata Globus & Starbus in Commercial Vehicles segment.
DIVIDEND
Considering the Company's financial performance, the
Directors have recommended payment of a dividend of Rs.13/- per share on
38,30,78,588 Ordinary Shares and any further shares that may be allotted by the
Company on conversion of Notes prior to June 27, 2006 (being the book closure
date for the purpose of dividend entitlement) for the year 2005-06 (previous
year - Rs.10/- per share plus a special dividend of Rs. 2.50 per share for the
Diamond Jubilee Year, making a total dividend of Rs. 12.50 per share).
OPERATING RESULTS AND PROFITS
This year was an outstanding year for the Company, which
recorded peak performance on all major financial parameters. Overall Sales
volume at 454,129 and turnover at Rs.24,2932.300 Millions were higher at 14%
and 18%, respectively than in FY 2004-05 and the Company retained its position
as the largest Indian automobile company in terms of revenue. It continued to
be the largest commercial vehicle manufacturer and the second largest passenger
vehicle manufacturer in India with market shares of 61.3% and 16.5%,
respectively. Export volumes at 50,223 vehicles, the highest exports ever, were
65% higher than the previous year. EBIDTA margin at 13.7% was higher than 13.3%
achieved in FY 2004-05. Inspite of the significant cost increase pressures, the
Company maintained its operating margin at 12.5% through its continuous cost
reduction drive. The Profit Before Tax was Rs.2,0533.800 Millions , higher by
24% as against Rs.1,6519.000 Millions in FY 2004-05. After providing for
current and deferred taxes, the Profit After Tax was Rs.1,5288.800 Millions (FY
2004-05 Rs.1,2369.500 Millions), an increase of 24% over the previous
year.
COMMERCIAL VEHICLES
The Company reported a record sale of 245,022 commercial
vehicles in the domestic and overseas market in FY 2005-06, representing a
16.9% growth over the last fiscal. The Company's commercial vehicle sales
in the domestic market also stood at a record high of 214,836 nos. With a 13.1%
growth, the Company outperformed the industry and strengthened its market
leadership with a 61.3% market share. The Company created a new segment in the
domestic commercial vehicle market by launching India's 1st Mini Truck -TATA
ACE in May 2005 and recorded impressive sales of nearly 30,000 vehicles in the
fiscal. The Company further strengthened its sales and service network and
opened over 300 exclusive sales outlets for the TATA ACE. The Company also
launched the TATA Novus range of heavy vehicles in December 2005 which has been
well received in the market. The Company's commercial vehicle sales
in the overseas market grew by 54% and were at an all time high of 30,186
vehicles. LCV exports grew by 61%. M & HCV exports grew by 39% to reach a
new peak of 8,261 vehicles. Revenue from non-vehicular business of
the Company grew by 24% mainly due to a growth in the Spare Parts
business. The Company continued pursuing aggressive cost reduction,
productivity improvement and aesthetic/visual quality improvement programs
during the year. The Company established a new assembly factory for the TATA
Novus vehicles at Jamshedpur. The Company is also undertaking an expansion
programme to increase the manufacturing capacity of the TATA ACE to meet the
growing demand in the domestic and international markets.
Tata Daewoo Commercial Vehicle Limited. (TDCV) - South Korea, acquired in March
2004 recorded a 26% growth in its overall vehicle sales (billing) to 5,734 nos.
TDCV sold 3,131 HCVs in the domestic market to achieve a 28% market share. TDCV
also entered the South Korean MCV market in January 2006 and achieved a 13.5%
market share in the January-March 2006 period. TDCV exports continued to grow
during the year and represented over two-thirds of South Korea's total heavy
truck exports.
The Company's associate - Hispano Carrocera reported a
record sale of 365 units in FY 2005-06. Hispano launched a new bus face in
October 2005 and received a major order for replacing all buses in Casablanca
city over the next 4 years. Hispano's order position is strong and volumes are
expected to double in the current year.
In May 2006, the Company entered into a 51:49 Joint
Venture with Marcopolo, Brazil (recognised worldwide for its mass production
technology for buses, offering the 'best value for money' proposition) to
address high quality, mass manufacturing of buses in India. This strategy would
enable the Company to increase its market share in the Indian bus market and
also address a larger segment of the global bus market. The Company received
several awards for its commercial vehicle business, the notable being JRD QV
Award for Business Excellence, CII - EXIM Award for Business Excellence in
2005, Best Commercial Vehicle Design Award by BBC Top Gear to TATA ACE, CII's
'Excellent Energy Efficient Unit' trophy to CV Pune plant in 2005 and the Gargi
Huttenes Albertus Green Foundry of the Year (2004-05) Award to Foundry
division, Pune plant. The Company's Pune Works was declared as the 'National
Best Establishment' by DGET, Ministry of Labour, Govt. of India
PASSENGER VEHICLES
The Company achieved record sales of 209,107 passenger vehicles in
the domestic and overseas markets (including sale of 209 Fiat Cars) in the FY
2005-06, representing a 10% growth over the last fiscal. Dearing the year, the
Company crossed the '1 Million Production and Sales' milestone since the start
of the Passenger vehicle operations in 1991. The Car plant's capacity was
expanded to produce 225,000 vehicles per annum.
The Company's domestic passenger vehicle sales grew by 5.6% to a record
high of 189,070 vehicles (including sale of 209 Fiat cars). The Company
continues to be the 2nd largest player in the domestic passenger vehicle market
with a 16.5% market share. The Company also achieved record exports of 20,037
passenger vehicles representing an 83.8% growth with South Africa emerging as
the biggest market with exports of over 11,000 passenger vehicles. The Company
continued to grow its presence in Spain, Italy, Sri Lanka, Nepal and
Bhutan.
The TATA Indica recorded its highest ever sale at 111,574 units and maintained
its position as the 2nd largest selling model in the industry. The launch of a
Turbo-diesel version and the eXtra fuel Efficient Torque Advantage (XETA)
petrol engine model in the second half of the fiscal enabled Indica to stay
ahead of competition. The TATA Indigo range including the estate version
achieved sales of 39,377 units, maintaining its leading position in the Entry
mid-size segment. A more premium trim level (Indigo SX series) was launched on
the sedan version which has been accepted well in this market. The Company's
Utility Vehicles sales at 37,910 units were the highest since FY 1998-99. The
TATA Sumo achieved a sale of 33,218 units - a growth of 6.9% and remained a
favorite of the market, despite grooving competition. The TATA Safari achieved
its highest ever sale of 4,692 units based on the launch of the face-lifted
version with the Company's first common rail diesel engine.
In September 2005, the Company signed an MOU with FIAT S.p.A. to explore
strategic alliance opportunities of mutual interest culminating in the first
initiative of the Company becoming the distributor of FIAT Products for the
Indian Market.
The Company's Car plant at Pune received the National Energy Conservation Award
at the hands of His Excellency, The President of India in March 2006. The
Company's advertising continued to get recognition at various industry forums,
while its brands figure among the most trusted brands in the Indian market
place amongst consumer durables and FMCGs. The Company displayed a
range of new products under development and concepts at the Auto Expo in Delhi
and the Geneva Motor Show in early 2006. Notable among these were the Indigo XL
- a Premium version of the Indigo with a longer wheelbase, the Tata Cliffrider
- a 4 door life style pick-up concept on the new crossover platform under
development.
TATA MOTOR FINANCE - CUSTOMER FINANCING INITIATIVES
Pursuant to the Hon'ble High Court's order, Tata Finance
Limited amalgamated with the Company with effect from April 1, 2005. Tata Motor
finance (TMF), the vehicle financing business has achieved significant growth
on account of synergies derived from this amalgamation. TMF financed 96,247 new
vehicles, a growth of 43% over 67,360 in the previous year. With disbursals of
Rs.54.790 Millions , a growth of 60% over Rs.3,4150.000 Millions in the previous
year,TMF has emerged as the third largest vehicle financier in the domestic
market. During the year TMF extended support to the Company's vehicle sales by
financing 23.8% of the total domestic sales, compared to 18.2% in the previous
year. Given this growth TMF is on course to become a strong captive financing
arm to support the vehicle sales business as well as to de-risk the cyclical
revenue stream of this business. The extensive network of TMF will also
complement the dealer network of vehicle sales thus augmenting the reach of the
Company.
HUMAN RESOURCES AND INDUSTRIAL RELATIONS
The Company entered into a 3 year wage settlement with its
Union at Lucknowo A cordial industrial relations environment prevailed in all
the manufacturing units of the Company. The permanent employee strength of the
Company as on March 31, 2006 was 22349, while that of the Company's
subsidiaries was 7257. The HR-Training Division in Pune was awarded the
National Best Training Division award for the 8th time from the Government of
India. The Company's Suggestion Scheme received the Excellence Award conferred
by the Indian National Suggestion Schemes' Association (INSSAN). The
Confederation of Indian Industry (CII) recognized the Company's significant
achievements in Corporate Sustainability Reporting.
FINANCE
On February 16, 2006, the Company issued Foreign Currency Convertible
Notes ('Notes') aggregating to JPY 11.76 Billion ('Issue') which are listed on
the Singapore Stock Exchange. The Notes are convertible into either Ordinary
Shares or American Depository Shares of the Company, at the option of the Note
holders. The Notes will be convertible at a price of Rs.1001.39 per share,
which was at a premium of 30% to the Company's closing share price on the
Bombay stock Exchange Limited on the issue date. The Notes are zero coupon and
will be redeemable at a discount of 0.15% at the end of five years. The Company
has are option to redeem the Notes after three years, subject to receipt of
relevant approvals.
The Company's ratings for local as well as foreign currency
borrowings have been upgraded by Moody's from Bat to Bat, BB with stable
outlook (Standard and Poor) and maintained at AA+ by ICRA and CRISIL. The Board
of Directors propose to explore ways of raising additional long term resources
upto Rs.3,0000.000 Millions by issue of appropriate securities in the
domestic/international market for financing the Company's growth plans. Members
are requested to refer to Item Nos. 11 and 12 of the Notice and the Explanatory
Statement thereto of the Annual General Meeting.
INFORMATION TECHNOLOGY INITIATIVES
The Company continued to upgrade its Computer Aided Design
capabilities which have improved productivity in their design areas. Digital
manufacturing initiatives were also started to improve manufacturing process
planning capabilities. Their ongoing CRM initiatives, now cover 225 dealers and
encompasses 80% of customer facing transactions by volume which will enable the
Company to gain customer insight by exploiting the huge customer database. In
the ERP area, SAP was rolled out at some of the foreign subsidiaries. The
Supplier Relationship Management module was rolled out during the year,
covering approximately 1500 suppliers seamlessly networked with the Company.
Supplementing their ERP initiatives, manufacturing execution support
applications for shop floor operations for all Plants were initiated during the
year.
CORPORATE GOVERNANCE
A separate section on Corporate Governance forming part of the
Directors' Report and the certificate from the Company's auditors confirming
compliance of Corporate Governance norms as stipulated in Clause 4.9 of the
Listing Agreement with the Indian Stock Exchanges is included in the Annual
Report.
Business Overview
The Indian economy witnessed an 8.4% growth in FY
2005-06, compared to 7.5% in the previous year. Whilst growth in the country's
GDP and ongoing road development program had a positive impact on vehicle
sales, FY 2005-06 proved to be a difficult year for the Indian Automobile
Industry as growth of domestic four wheeler sales slowed down to 8.5% from
18.6% in FY 2004-05.
Towards the beginning of this fiscal, the Auto Industry witnessed
confusion over application of emission norms in some states. Severe floods in
northern, western and southern parts of the country impacted demand and
distribution of vehicles. Upward movement in prices of input materials mainly
steel, copper, aluminum, rubber, engineering plastics and compliance with new
CMVR regulations added to the cost of products, which was partially offset by a
modest price increase. Difficult liquidity position from Oct'05 onwards and
increase in interest rates in the latter half of the year also impacted vehicle
sales. The growth in the commercial vehicle industry was due to the new product
TATA ACE launched by the Company, without which growth would have been almost
flat at 0.7%. Passenger vehicle sales in the domestic market also slowed down
to 7.7% from 17.8% in FY 2004-05.
Amidst this challenging situation, the Company's sales grew by 13.6% as
compared to the industry sales growth of 8.6%. The Company recorded highest
ever sales of Commercial and Passenger Vehicles in domestic and international
markets. In Passenger vehicle business, new product launches in domestic market
and overseas market, strengthening of marketing activities and expansion of
distribution network, enabled the Company to outperform the industry with a 10%
growth, and increased its overall Market Share in 4 wheelers to 26.5%. The
Company recorded its highest ever exports of over 50,000 vehicles.
Opportunities
Road Development: The ongoing
road development program would improve connectivity to ports, cities and
villages through a network of highways and interconnecting roads by 2010-11.
Improved road network would help in faster movement of goods between various
cities and towns. The Company launched TATA Novus range of vehicles in the
heavy segment and TATA ACE for last mile distribution. The Company has plans to
further strengthen its position in these segments. The improved road network
would also facilitate faster and consequently increased movement of people by
small, medium sized buses and luxury coaches. The Company would strengthen its
Starbus and Globus range of buses and coaches for getting maximum benefit from
this opportunity.
Improved road
network would also lead to more people driving out in cars. Life style vehicles
are also expected to grow due to the ongoing road development program.
Car penetration in India:
Car penetration in India is 7 cars per 1,000 persons. The Government's
announcement of 8% reduction in Excise Duty on 'Small Cars' (i.e. cars not more
than 4,000mm in length and having <1,200 cc Petrol engine or <1,400 cc
Diesel engine) is expected to increase penetration of cars in the country. With
improvement in infrastructure, increase in disposable income and easy
availability of finance, the outlook for growth of passenger car sales remains
positive.
International: The
Company's strategy to grow sales in focused markets by making entry in select
segments with appropriate products enabled it to achieve record sales of
commercial and passenger vehicles in overseas markets this year, on top of high
growth rates witnessed in the previous two years. In FY 2005-06, the Company
increased share of its overseas vehicle sales from 7.6% last year to record
high of 11.1% (as % of its total sales) and has planned further increase in
coming year.
Threats
Global Competition: India is increasingly attracting global players to
set up manufacturing facility for producing cars, especially small cars. Global
automobile manufacturers are also entering India in commercial vehicle segment
to leverage India's low cost production advantage to their favor. The Company
plans to remain competitive by bridging the technology gap between its products
and foreign offerings while maintaining its low cost product development and
manufacturing / sourcing advantage.
Fuel Prices: During
last year, international crude prices touched unprecedented levels and were
mainly in the range of US$ 60-70 per barrel. The continuing fuel price increase
in the domestic market could significantly impact demand of commercial and
passenger vehicles. Input costs: Commodity items particularly steel,
non-ferrous metals, rubber and engineering plastics have witnessed huge price
increases in the past. These prices are expected to increase further affecting
the Company's profitability.
Interest rate
hardening and other inflationary trends: With interest rates hardening and
liquidity crunch in the system, growth in sales may be adversely
impacted. Government Regulations: Stringent emission and safety
requirements could bring new complexities for automotive and component
manufacturers impacting the Company's business. WTO, Free Trade Agreements and
other similar policies can potentially open the Indian market to more imports
at far lower cost.
Outlook
Commercial vehicle industry being a cyclic industry showed signs of slow
down during FY 2005-06. Continuous growth in GDP, ongoing infrastructure
activity, enforcement of overloading norms/emission regulations and softening
of interest rates could put the industry back on high growth track. However,
increasing fuel and input material prices remain a cause of concern.
In FY06-07, the
Company has planned further increase in commercial vehicle sales by launching
suitable products in cargo as well as passenger segments. Industry outlook for
passenger vehicles is double digit growth. The Company's growth is likely to be
better due to presence ire small car segment which have got excise duty benefit
and healthy product pipeline. The Company has also planned further volume
growth free overseas markets in the coming year.
Financial Performance
as a measure of Operational Performance
The Company's financial
performance continued to improve in this Financial Year owing to a good volume
growth of 13.7% and continued efforts by the Company to maintain its margins,
driven mainly by cost reduction efforts. The following table sets forth the
breakup of the Company's expenses as part of the net revenue.
Risks
and Concerns:
Interest Rates: FY 2005-06 started with favorable
interest rate regime and comfortable liquidity position in the economy.
However, the later part of the year witnessed tightening of liquidity position
and firming up of interest rates in the country (especially short term).
Increasing interest rates could further affect vehicle demand which could have
an adverse impact on the Company's revenues and profits.
Exchange rates: The Company exports vehicles to many countries and
exchange rate fluctuations in the order execution period could impact the
Company's business. Freight rates: In FY 2005-06, freight rates in
road transport sector moved up mainly due to surge in construction activity,
ongoing road development projects and severe restriction on over-loading.
Demand for commercial vehicles could be impacted by further change in freight
rates and/or change in fuel prices.
Railways: The Railways launched new schemes to attract
goods movement and offered aggressive freight rates. A nationwide rail freight
corridor connecting major cities is being planned, which could impact demand
for commercial vehicles for movement of goods.
Domestic market: The commercial vehicle industry is
cyclic in nature. The Company plans to reduce the impact of this cyclicality on
its business, by strengthening its less cyclical businesses like buses, light
trucks, small commercial vehicles and passenger cars and also by growing share
of overseas sales in its overall sales pattern.
Overseas market: In overseas markets, the Company
competes with global players which have multiple vehicle platforms, larger
financial capability and global branding. These factors might impact demand for
Company's offerings in these markets. The Company's ability to comply with
vehicle regulations related to Emksion, Safety, Noise, etc. may also affect
Company's competitiveness in overseas markets.
Manufacturing: The Company manufactures vehicles at multiple locations
and given the geographical dispersion of its suppliers, the Company's supply
chain could get affected due to natural calamities and work stoppages at its
suppliers' end.
New Competition: Competitive activity is expected to increase
in commercial vehicle and passenger vehicle domestic market in coming year.
Commercial vehicle business could witness entry of new foreign players through
JVs or technological tie-ups. Passenger vehicles could witness strengthening of
competition in diesel powered car segment. The Company is aware of the
increasing competition and is taking measures to remain competitive in market
place.
New projects: The Company currently is in midst of executing many new
projects ranging from launch of new car platforms to development of new Truck
models. Though the Company uses sophisticated techniques and processes to
forecast demand, the same is subject to margin of error which could affect its
business. Managing complexity of operations, introducing products in a timely
manner and product acceptability in market place could also impact the
business.
Total vehicle sales at 33,018 nos., up
9.4%
Commercial vehicle sales up 16.9%; Passenger vehicle sales up 2.1%
Exports grow by 83%
Tata Motors
reported a total sale of 33,018 vehicles (including exports) for the month of
June '05, a growth of 9.4% over 30183 vehicles sold in June last year.
Cumulative sales for the Company at 87496 nos. are growing by 3% this fiscal.
The Company's sales in June '05 in the domestic market stood at 29,981 nos. as
against 28,522 vehicles sold last year, an increase of 5.1%.
Commercial
vehicles
The
Company's sales of commercial vehicles in June '05 in the domestic market stood
at 15,530 nos., an increase of 15.5% over 13,445 nos. sold in June last year.
M&HCV sales at 9574 nos. grew 2.3% and LCV sales at 5956 nos. grew 45.6%
over the corresponding period last year.
Cumulative
sales of commercial vehicles for the fiscal stood at 37,231 nos.
Passenger vehicles
The
passenger vehicle business reported a sale of 14,451 vehicles in June '05 in
the domestic market. The Indica registered a sale of 8700 nos., while the
Indigo registered a sale of 2937 nos. Utility vehicles accounted for sales of
2814 vehicles in June '05.Cumulative sales of passenger vehicles for the fiscal stood at 41,192 nos.
Exports
Total vehicle sales at 30,589 nos., up 2.7%
Exports up 96.9%
Tata
Motors reported a total sale of 30,589 vehicles (including exports) for the
month of May '05.
Commercial Vehicles
Total
sales of commercial vehicles were 15,387 nos. in May '05, of which 13,333 nos.
were in the domestic market and 2,054 nos. were in the export market. Domestic
M&HCV sales were 7,171 vehicles and LCV sales stood at 6,162 vehicles for
May '05. Shortage of certain critical items continued in May '05 and the
Company is working closely with the suppliers to improve the situation.
The new mini-truck Tata ACE was introduced in the month of May '05. Initially
available across the states of Maharashtra, Karnataka, Andhra Pradesh, Kerala,
Tamil Nadu and the Union Territory of Pondicherry, the ACE has evoked an
enthusiastic response in these markets. Cumulative sales of commercial vehicles
stood at 25,546 nos. for the fiscal, of which 21,701 vehicles were in the
domestic market and 3,845 vehicles were in the export market.
Passenger Vehicles
The
passenger vehicle business reported a total sale of 14,005 vehicles in May '05
in the domestic market. Cumulative sales for the fiscal at 26,741 nos. are up
by 4%.
The Indica registered a sale of 8,480 nos., while the Indigo registered a sale
of 3,031 nos. The Sumo and the Safari accounted for sales of 2,494 nos. in the
month.
Exports
The Company exported 3,251 vehicles in May '05, an increase of 96.9% over 1,651
vehicles in May '04.
The
Company's sales from exports were 3037 vehicles in June '05 as compared to 1661
vehicles in June '04, an increase of 82.8%. The cumulative sales from exports
in the current period at 9073 nos. have recorded a 113% growth over the
corresponding figures for the previous period.
Released
on : 3rd July, 2006
Total vehicle sales at 45,223
nos., up 37%
Exports up 71%
Tata
Motors reported a total sale of 45,223 vehicles (including exports) for the
month of June 2006, a growth of 37% over 33,018 vehicles in June last year.
Cumulative sales for the Company at 126,152 nos. are growing by 44.3%.
Commercial Vehicles
The
Company's sales of commercial vehicles in June 2006 in the domestic market were
21,565 nos., an increase of 38.9% over 15,530 vehicles sold in June last year.
M&HCV sales stood at 11,808 nos., a growth of 23.3% over June 2005 while
LCV sales were 9,757 nos., a growth of 63.8% over June 2005. The monthly sales
of the newly launched Ace crossed the 5,000 sales mark for the first time.
Cumulative sales of commercial vehicles in the domestic market for the fiscal
were 63,140 nos., an increase of 69.5% over last year. Cumulative M&HCV
sales stood at 36,606 nos., an increase of 59.1% over last year, while LCV
sales for the period were 26,534 nos., an increase of 86.4% over last year.
Passenger
Vehicles
The
passenger vehicle business reported a total sale of 18,463 vehicles in the
domestic market in June 2006, an increase of 27.8% over June 2005. The Indica
sold 12,271 nos., a growth of 41% over June 2005. The Indigo family registered
sales of 2,885 nos., a decline of 1.7% over June 2005. The Sumo and Safari
accounted for sales of 3,307 nos., a growth of 17.5% over June 2005. The new
Safari range launched in the latter part of the month enabled the model to
cross the 1,000 sales mark in a month for the first time, at 1011 nos.
Cumulative sales of passenger vehicles in the domestic market for the fiscal
were 49,906 nos., an increase of 21.2% over last year. Cumulative sales of
Indica at 33,173 nos. registered a growth of 32.7% over last year while
cumulative sales of the Indigo family at 8,316 nos. registered a decline of 6%
over last year. The entry mid-size segment continues to see a decline which
started in 2005-06, and the Indigo range has increased its market share in a
declining segment. Cumulative sales of Sumo and Safari were 8,417 nos., a
growth of 14.6% over last year.
Exports
The Company's sales from exports were 5,195 vehicles in June 2006 as compared
to 3,037 vehicles in June 2005, an increase of 71%. The cumulative sales from
exports in the current period at 13,106 nos. have recorded 45.8% growth over
the corresponding figures for the previous period.
Released
on : 13th June, 2006
Large Bus Exports order for
Tata Motors;
To help Revamp Urban Transport
System in Kinshasa, Democratic Republic of Congo
Tata
Motors has further expanded its Bus Exports operation by entering the
Democratic Republic of Congo, where it has received and is executing a large
order valued at about Rs.550.000 Millions , to revamp the urban transport
system of Kinshasa, the capital city. As a major part of this order, 228 nos.
of buses have been delivered so far. The buses are being supplied under the
Indian Government's Line of Credit to the Democratic Republic of Congo, through
the EXIM Bank of India.
In 2005-06, Tata Motors exported over 6,000 buses, registering an impressive
growth of about 45% over the previous year. The company exports buses to
several countries in Africa, the Middle East, Russia, Ukraine, Malaysia,
besides the SAARC countries. Tata buses have a strong presence in most African
countries like South Africa, Senegal, Algeria and the Middle East countries
like UAE, Kuwait and Qatar.
The 228 buses for Congo were presented in a special public ceremony in
Kinshasa. Mr. Muthu Kumar, Special Envoy of the Government of India, handed
over the keys to Mr. Herodia Ndombasi, Democratic Republic of Congo's Vice
President, who is also in charge of Reconstruction & Development, in the
presence of senior government officials and representatives of Tata Motors.
Mr. P.G. Shankar, Tata Motors' Head – International Business for Commercial
Vehicles, said, “In addition to vehicles, the company is setting up a complete
services network in Kinshasa. They are proud to partner with the Government of
the Democratic Republic of Congo in its endeavour to revamp the urban transport
system.”
About Tata Motors
Tata Motors, the flagship company of the Tata Group, is India's largest
automobile company, with revenues of US$ 5.5 billion in 2005-06. With over 3
million Tata vehicles plying in India, it is the leader in commercial vehicles
and the second largest in passenger cars. It is also the world's fifth largest
medium and heavy truck manufacturer and the second largest heavy bus
manufacturer. Tata cars, buses and trucks are already being marketed in several
countries in Europe, Africa, the Middle East, South Asia, and South East Asia
and in Australia. The company acquired the Daewoo Commercial Vehicles Company,
Korea's second largest truck maker, in 2004. In 2005, it acquired a 21% stake
in Hispano Carrocera, the reputed Spanish bus and coach manufacturer. In 2006,
the company set up a joint venture with Marcopolo, the Brazil-based global
leader in body-building for buses and coaches Besides India, Tata Motors has
R&D centres in South Korea, Spain and the UK.
Released
on : 19th June, 2006
Tata Motors introduces new
range of Safari vehicles
Tata Motors today announced the launch of a new
range of its premium SUV brand, the Tata Safari. The range sports two exciting
new colors – Pearl White and Cherry Red, in addition to the existing colors,
and is available in 3 engine options – 90PS Turbo Charged Inter-cooled (TCIC)
Diesel, 115 PS Direct Injection Common Rail (DICOR) Diesel, and 127 PS,
Multi-point Fuel Injection (MPFI) Petrol.
The Safari range benefits from the result of an aggressive cost-reduction plan,
which has been undertaken by the company as part of its business plans. The
entry-level TCIC offering is available at a price point of Rs.0.640
Millions (ex-Showroom Delhi) in only
the 4x2 option. The Safari DICOR range starts at Rs.0.699 Millions (ex-Showroom
Delhi) and is available in three trim levels in both 4x2 and 4x4 executions,
and the Safari petrol range starts at Rs.79.900 Millions (ex Showroom Delhi) in
both the 4x2 and 4x4 executions. The top end versions of the Safari have ABS,
dual Airbags, reverse guide system and DVD/MP3 system with dual LCD screens as
standard fitment, besides a host of luxury, comfort and entertainment features.
The Tata Safari was the
first indigenous, thoroughbred 4-door SUV launched in India in 1998, and has
been the largest selling premium SUV for the last 2 years. The vehicle had its best
ever year in 2005-06 with a sale of 4692 nos., growing by 48% over the previous
financial year. The trend has continued in the current fiscal with a 240%
growth in April-May 2006 compared to the corresponding period of the last
fiscal. The company believes that the new range announced today will enable the
volumes and market share of the brand to grow significantly in its segment.
Released
on : 1st June, 2006
Tata Motor finance posts 60%
growth in 2005-06;
Emerges as one of the leading vehicle financiers of the country
Tata Motorfinance, the auto financing arm of Tata Motors, has emerged as one of
the leading vehicle financing operations of the country. Tata Motorfinance has
achieved this milestone, while financing mainly Tata Motors vehicles. The overall
vehicle financing done by Tata Motorfinance in the year 2005-06 was about
Rs.55000.000 Millions , a 60% increase over Rs. 34000.000 Millions n the
previous fiscal.
2005-06
highlights
- A total
of about 113,000 contracts booked, including refinance and Construction
Equipment (CEQ)
- 96,247 new vehicles financed, a 43% increase compared to 67,356 vehicles in
2004-05
- Refinance business grew by 110%
- CEQ
business grew by 165%
Mr Aubrey .I. Rebello, Chief, Tata Motor Finance, says, "Their goal is to
be the preferred financier for Tata Motors customers and channel partners. They
are looking at capturing customer spending over the vehicle life-cycle, by
extending value added products combining financing offerings with insurance,
fleet management, operating leases, re-finance, and other products"
About Tata Motorfinance
Tata Motorfinance is the auto financing arm of Tata Motors, providing finance
primarily for Tata Motors vehicles. It was established in June 2003, through
the joint marketing arrangement, between Tata Motors' Bureau for Hire Purchase
and Credit (BHPC) division, and Tata Finance's Asset Financing arm. It became a
division of Tata Motors in April 2005, with the merger of Tata Finance with
Tata Motors. Tata Motorfinance has 70 offices in India.
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.43.59 |
|
UK Pound |
1 |
Rs.85.53 |
|
Euro |
1 |
Rs.58.14 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
|
|
PAID-UP CAPITAL |
1~10 |
|
|
OPERATING SCALE |
1~10 |
|
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
|
|
--PROFITABILIRY |
1~10 |
|
|
--LIQUIDITY |
1~10 |
|
|
--LEVERAGE |
1~10 |
|
|
--RESERVES |
1~10 |
|
|
--CREDIT LINES |
1~10 |
|
|
--MARGINS |
-5~5 |
|
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
|
|
--LITIGATION |
YES/NO |
|
|
--OTHER ADVERSE INFORMATION |
YES/NO |
|
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
|
|
--EXPORT ACTIVITIES |
YES/NO |
|
|
--AFFILIATION |
YES/NO |
|
|
--LISTED |
YES/NO |
|
|
--OTHER MERIT FACTORS |
YES/NO |
|
|
TOTAL |
|
|
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
EXPLANATIONS
|
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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|