MIRA INFORM REPORT

Report Date :

14.12.2007

IDENTIFICATION DETAILS

Name :	TRACTOR ENGINEERS LIMITED
Registered Office :	Saki Vihar Road, L and T Complex, Gate No. 6, P. O. Box 8913, Powai, Mumbai - 400 072, Maharashtra
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	18.09.1952
Com. Reg. No.:	11-8893
CIN No.: [Company Identification No.]	U28920MH1952PLC008893
TAN No.: [Tax Deduction & Collection Account No.]	MUMT00327F
Legal Form :	A closely held Public Limited Liability Company. The company is a subsidiary of Larsen and Toubro Limited
Line of Business :	Manufacturing of Crawler Tractor Parts, parts for agricultural, earthmoving and earth-drilling machinery, and subsystems and sub-assemblies such as Apron Conveyor, Crawler Platforms, Lowers etc

RATING & COMMENTS

MIRA’s Rating :

Aa

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 3000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and reputed company of L and T Group, country’s premier industrial house having excellent track. Available information indicates high financial responsibility of the company. Financial position of the company is good. The company's payments are usually correct and as per commitments. The company can be considered good for normal business dealing at usual trade terms and conditions.

LOCATIONS

Registered Office / Administrative Office/	Saki Vihar Road, L and T Complex, Ballard Estate, Gate No. 6, P. O. Box 8913, Powai, Mumbai - 400 072, Maharashtra, India
Tel. No.:	91-22–22616836 / 22616865 / 22622132 / 22622383 / 28581256 / 1339 / 1180 / 67054129 / 2487 / 2490 / 1339 / 67525656 / 67585665
Fax No.:	91-22-28581175 / 1666 / 67051175 / 67051175 / 1666 / 67525893
E-Mail :	marketing@tengl.ltindia.com
Website :	http://www.tenglindia.com
Area :	15000 sq. fts
Location :	Owned
Corporate Office:	L and T House, Ballard Estate, Mumbai, Maharashtra, India
Tel. No.:	91-22-67585656
Fax No.:	91-22-67525893
E –Mail:	sbs-tng@tengl.itindia.com ab-sec@lth.ltindia.com
Factory 1 :	Saki Vihar Road, Powai Works, P. O. 8913, Andheri (East), Mumbai - 400 072, Maharashtra, India
Tel. No.:	91-22-28581210 / 28581256 / 28581569 / 28581647 / 28581953 /28581665/28581175
Fax No.:	91-22-28581175 / 28581666
Area :	31215 sq. fts
Location :	Owned
Factory 2 :	A-600, TTC Industrial Area, MIDC, Shil- Mahape Road, Navi Mumbai – 400 701, Maharashtra, India (Non Operational Since September, 2000)
Area :	20000 sq. fts
Location :	Owned

DIRECTORS

Name :	M S Krishnamoorthy
Designation :	Director
Name :	S V Subramanian
Designation :	Additional Director
Name :	Mr. Amit Nityanand Bhat
Designation :	Director
Address :	301, Neha Kores Towers CHS Limited, Vartak Nagar, thane , Mumbai – 400 606, Maharashtra
Date of Birth/Age :	29.11.1977
Date of Appointment :	14.03.2007
Name :	Mr. Vipin Jyotindra Shukla
Designation :	Director
Address :	501, Palm Beach CHS , Gandhigram Road, Juhu, Viler Parle (West), Mumbai – 400 049, Maharashtra.
Date of Birth/Age :	21.04.1950
Date of Appointment :	15.09.2005
Name :	Mr. Sundaresan Subramaniam Thimmarajapuram
Designation :	Director
Address :	A -1, Pooja, 61, 1 Main Road, R A Puram , Chennai – 600 028, Tamil Nadu, India
Name :	Mr. Jagdish Pandurang Nayak
Designation :	Director
Address :	Gilder House, 67-F, Bhulabhai Desai Road, Mumbai – 400 026, Maharashtra
Date of Birth/Age :	13.11.1943
Date of Appointment :	19.08.1999
Name :	Mr. Manjer Subramaniam
Designation :	Director
Address :	11 Gauri Giridhar, Pestom Sagar, Chembur, Mumbai -400 089, Maharashtra
Date of Birth/Age :	15.08.1946
Date of Appointment :	30.05.2001

KEY EXECUTIVES

Name :	Mr. Subhodh Ravindranath Shetty
Designation :	Secretary
Address :	C -2, Riddhi Park, Chole Village, Thakurli East, thane- 421 201, Maharashtra
Date of Birth/Age :	15.06.1977
Date of Appointment :	09.09.2004
Name :	Mr. Vishesh Parasram Jethnalani
Designation :	Manager
Address :	B /301, Florentine Hiranandani Gardens, Powai -400 072, Maharashtra
Date of Birth/Age :	03.02.1951
Date of Appointment :	01.12.2005
Name :	Mr. Deepak Dattaya Upponi
Designation :	Manager
Address :	201, Bhagtani Heights, Panchmarg, Off Yari Road, Versova, Andheri (East), Mumbai – 400 061, Maharashtra

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders		No. of Shares
Larsen and Toubro Limited		67994
Mr. Nayak Pandurang Jagdish Larsen and Toubro Limited		1
Mr. Shukla Jyotindra Vipin Larsen and Toubro Limited		1
Mr. Manjeri Subramaniam Krishna Moorthy Larsen and Toubro Limited		1
Mr. Srinivasa Venkata Subramaniam Larsen and Toubro Limited		1
Mr. Ramamurthi Shankar Raman Larsen and Toubro Limited		1
Mr. Narayanaswamy Sivaraman Larsen and Toubro Limited		1
	Total	68000

Equity Shares Breakup (Percentage of Total Equity):

Sr No.	Category	Percentage
1	Bodies corporate	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Crawler Tractor Parts, parts for agricultural, earthmoving and earth-drilling machinery, and subsystems and sub-assemblies such as Apron Conveyor, Crawler Platforms, Lowers etc

Products :

Item Code No.	Product Description
84.31	Parts of Earth Moving Machinery Material Handling Equipment Oil equipment
84.31	Parts of Earth Moving Form of sets
84.31	Parts of Earth Moving Loose parts

Exports:

Countries:

Caterpillar, USA

GENERAL INFORMATION

Customers :	v Larsen and Toubro Limited, Bangalore v L and T Komatsu Limited, Bangalore v TELCO Construction Equipment Company Limited Jamshedpur and Dharwad v Stanford / Eder v Hyderabad Industries Limited, Kolkata v Ingersoll-Rand India Limited v Revathi Equipment Limited, Coimbatore v Imco Elecon India Limited, Vallabh Vidyanagar v Unipave Engineering Products, Ahmedabad v Gujarat Apollo Equipments Company Limited Mehsana v Bharat Earthmovers Limited, Kolar Gold Fields Karnataka v TRF Limited, Jamshedpur v Simplex Engg and Foundry Works Limited, Bhilai v Chennai Port Trust v TISCO, Sukhinda v Cement Corporation of India v Birla Cement Works v TISCO, Jamshedpur
No. of Employees :	Total 215 persons -- 89 persons in office and 126 others
Bankers :	v Bank of India v Canara Bank Address: Tamarind Lane Branch Fort , Mumbai – 400 023, Maharashtra v Citibank v ABN Amro Bank NV Address: 7^th Floor, Sakhar Bhavan, Nariman Point, Mumbai – 400 021, Maharashtra, India Canara Bank
Banking Relations :	Unknown
Auditors :
Name :	Sharp and Tannan Chartered Accountants
Address:	Ravindra Annexe, 194, Churchgate Reclamation, Dinshaw Vachha Road, Mumbai – 400 020, Maharashtra
Holding Company:	CIN of the Company : L99999MH1946PLC004768 Name of the Company : Larsen and Toubro Limited
Associates/Subsidiaries :	v L and T Capital Company Limited v L and T Cement Limited v L and T Equipment Leasing Company Limited v L and T Finance Limited v L and T Holding Limited v L and T Infocity Limited v L and T Netcom Limited v L and T Trade.com Limited v L and T Transportation Infrastructure Limited v L and T Western India Tollbridge Limited v Dakshin Cements Limited v HPL Cogeneration Limited v India Infrastructure Developers Limited v LTM Limited v Narmada Cement Company Limited v Narmada Infrastructure Construction Enterprise Limited v Larsen and Toubro Ceylineo (Private) Limited v L and T - ECC Construction (M) SDN.BHD. v Larsen and Toubro Infotech GmbH v Larsen and Toburo LLC
Parent Company :	Larsen and Toubro Limited, Mumbai, Maharashtra

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
70000	Equity Shares	Rs 1000/- each	Rs. 70.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
68000	Equity Shares	Rs 1000/- each	Rs. 68.000millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		68.000	68.000	68.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		434.070	303.747	249.200
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		502.070	371.747	317.200
LOAN FUNDS
1] Secured Loans		282.446	94.041	53.200
2] Unsecured Loans		0.070	0.075	30.100
TOTAL BORROWING		282.516	94.116	83.300
DEFERRED TAX LIABILITIES		6.361	14.170	0.000
TOTAL		790.947	480.033	400.500
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		109.279	88.897	90.600
Capital work-in-progress		202.481	57.359	1.000
INVESTMENT		2.294	2.277	56.200
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	369.533	285.392	252.100
	Sundry Debtors	213.603	193.327	136.60
	Cash & Bank Balances	2.538	0.225	0.100
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	112.711	48.740	41.300
Total Current Assets		698.385	527.684	430.100
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	187.747	180.461	157.400
	Provisions	35.128	18.330	23.200
Total Current Liabilities		222.875	198.791	180.600
Net Current Assets		475.510	328.893	249.500
MISCELLANEOUS EXPENSES		1.383	2.607	3.200
TOTAL		790.947	480.033	400.500

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		936.352	762.587	746.100
Other Income		90.459	4.883	13.300
Stock Adjustments		0.000	0.000	38.900
Total Income		1026.811	767.470	798.300
Profit/(Loss) Before Tax		157.559	85.883	81.800
Provision for Taxation		24.952	31.291	26.400
Profit/(Loss) After Tax		132.607	54.592	55.400
Export Value		12.790	1.290	0.000
Expenditures :
	Raw Materials	633.049	502.161	430.300
	Purchases made for resale	2.683	0.733	0.000
	Consumption of stores and spares parts	13.806	12.901	0.000
	Increase/(Decrease) in Finished Goods	7.472	[16.092]	0.000
	Salaries, Wages, Bonus, etc.	100.658	80.711	0.000
	Managerial Remuneration	2.066	1.593	0.000
	Payment to Auditors	0.227	0.254	0.000
	Excise Duty	0.000	0.000	109.900
	Power and Fuel Cost	20.250	21.151	19.000
	Other Manufacturing Expenses	0.000	0.000	24.500
	Employee Cost	0.000	0.000	68.800
	Selling and Administration Expenses	0.000	0.000	38.700
	Miscellaneous Expenses	0.000	0.000	11.500
	Interest and Financial charges	4.916	6.703	4.800
	Insurance expenses	1.657	1.337	0.000
	Depreciation	10.000	8.926	9.000
	Other expenditure	85.231	62.499	0.000
Total Expenditure		882.015	682.877	825.100

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	12.91	7.11	6.93
Net Profit Margin (PBT/Sales)	(%)	16.82	11.26	10.96
Return on Total Assets (PBT/Total Assets}	(%)	15.59	12.74	9.95
Return on Investment (ROI) (PBT/Networth)		0.31	0.23	0.25
Debt Equity Ratio (Total Liability/Networth)		1.00	0.78	0.83
Current Ratio (Current Asset/Current Liability)		3.13	2.65	2.38

LOCAL AGENCY FURTHER INFORMATION

HISTORY

The company is a joint venture between Caterpillar Inc, USA and Larsen and Toubro Limited, India, Catepillar and L and T had equal (50% each) shareholding in the company. In 1969 the company started supplying undercarriage to BEML. The company started tracking undercarriage for Hydraulic Excavators of Poclain design which L and T produced under model LC80 (20 T HEX)

In 1970 the company made Battle Tank Pins for HVF Avadi. The company designs and builds Apron Feeders. The company also designs and manufactures Oilfield Equipment Spares.

Subject is a wholly-owned subsidiary of the Company principally engaged in manufacture of undercarriage systems for excavators, crawler tractors, bulldozers etc., and material handling equipment like apron conveyors and spares for oilfield equipments.

Subject plans to consolidate its position in the undercarriage market by catering to new variants introduced by the Original Equipment manufacturers, while improving its presence in Apron Feeders by broadening the product range. Manufacturing units of the company are situated at Powai and Thane in Mumbai. The company has obtained an export order for Cylinder Pistons

FORM 8:-

Corporation identity number or foreign company registrations number of the company	U28920MH1952PLC008893
Name of the company	TRACTOR ENGINEERS LIMITED
Address	L and T House, Ballard Estate, Mumbai - 400 072, Maharashtra
This Form is for	Creation of charge
Type of Charges	Immovable property
Particular of the charge holder	ABN Amro Bank NV Address: 7^th Floor, Sakhar Bhavan, Nariman Point, Mumbai – 400 021, Maharashtra, India Email ID: in.bs.central@in.abnamro.com
Nature or description of the instrument creating charge	No instrument was executed. The company by deposit of title deed created equitable mortgage on of its immovable properties vide Memorandum of entry.
Date of the instrument creating charge	10.01.2007
Amount Secure by the charge	Rs. 253.000 millions
Brief of the principal terms and conditions and extent and operation of the charge	Rate of Interests: External Commercial Borrowing (ECB) – USD 5.500 million (Equivalent to INR 253.000 millions) Six month LIBOR + 60 bppa as fixed for successive interest periods of six month. This rate of interests will be subject to change at the discretion of the Bank without prior intimation to the borrower. Terms of Repayment – USD 1.250 millions each at the end of 2^nd and 3^rd years from the average drawdown date and USD 3.000 millions at the end of 4^th years from the average drawdown date. Margin: As applicable, if any Extent and operation: Equitable mortgage on all that piece or parcel of land known as Plot No. A -8, in the Talegaon Industrial Area, within the village limit of Navlakh Umbre, and outside the limits of Talegaon Municipal Council, taluka Mavel, District, Pune containing by admeasurements 78576.000 sq.mtrs. Others: The charge will also operate to cover all amounts due from the company on account of foreign exchange rate fluctuations and any other foreign exchange related cost, if any.
Shorts particulars of the Property charged	Equitable mortgage on all that piece or parcel of land known as plot No. A – 8, in the Talegaon Industrial Area, within the village limit of Navlakh Umbre, and outside the limits, of Talegaon Municipal Council, Taluka Mavel, District Pune containing by admeasurements v78576.000 sq.mtrs.

Name of the company

TRACTOR ENGINEERS LIMITED

Presented By

CANARA BANK

AND

TRACTOR ENGINEERS LIMITED

1) Date and description of instrument creating the change

Common hypothecation agreement dated 22.12.2003, executed by the company in favour of Canara Bank

2) Amount secured by the charge/amount owing on the securities of charge

Rs. 105.000 millions

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 by way of first charge on company’s all present and future.

Stock in trade , raw materials , goods in process , semi manufactured, manufactured goods, and consumables stores and spares, semi finished and finished products such as preselected pretested steel comprising of prime unmachined forgings, steel cast iron sand non –ferrous castings , finished goods such as tractors and tractors parts for crawler tractors, like track group, link assemblies agricultural , earth moving and earth drilling machinery and sub systems and assemblies such as apron conveyors, crawlers platforms, lowers, button bits, mud handling centrifugal pumps parts, etc. and replacement parts like group shoes, links, pine bushing, rollers, specials bolts and nuts and fluiq and pumps parts, etc belonging to or which may at the disposal of the company or that may held by any party anywhere to the order and disposition of the company which are now stored or being stored or which may hereafter from time to time stored at or brought into lying or be in the company’s premises , godown and other places, wheresoever at Mumbai or elsewhere in India or Wherever same may be including in the custody or control of any of the company distributors which may be in course of transit or awaiting transit by ships, rail,

Book debts, outstanding, moneys, receivable, claims bills, contract engagement and securities which are now due and owing or which may at any hereafter during the continuance of the business by any person, firm , company body corporate or by the government of India or any government or Indian Railways or any government departments or office or Municipal or local or public or semi government body authority whatsoever due and owing or which may at any time hereafter become due and payable to company howsoever.

4) Gist of the terms and conditions and extent and operation of the charge.

Interest on OCC at the rate of nil and above the ongoing PLR with a minimum of p.a compounded half yearly or at quarterly rests or such other rates as Bank may specify generally from time to time.

Interest on packing credit facility at the rate of 8% p.a for the confessional period of 180 days or at such rate and for such period or period as prescribed by the RBI / the bank from time to time, in case the loans granted against such entitlement is not repaid within the period specified above, the borrower shall pay interest at 13% p.a compounded quarterly or at such other rates as prescribed by the RBI / the Bank from time to time. In case the borrower is not eligible for the entitlement declared either partially or fully against which the packing credit has been granted, it shall repay the advance granted in full with interest on the said advance, for the entire period of the advance, at the rates normally charged by the bank on its overdraft cash / credit Advances at 11% p.a compounded quarterly or at such rate as may be specified by the RBI the bank from time to time.

Margin :

CC : 30%

PC : 10%

5) Name and Address and description of the person entitled to the charge.

Canara Bank

Address: Tamarind Lane Branch

Fort , Mumbai – 400 023, Maharashtra

6) Date and brief description of instrument modifying the charge

Supplemental common hypothecation agreement dated 12.12.2005

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.

22.12.2003 – Original charge for Rs. 105000 millions

Regd on 20.02.2004 – Doc No. 715

Now vide above referred supplemental common hypothecation agreement dated 12.12.2005 the amount secured by the charge Increased from Rs. 105.000 millions to Rs. 135.000 millions to secure the following facilities:

Facility	Limits (Rs. in millions)
Cash credit	95.000
Sub Limit BE: CBD / CDB	10.000
Sub Limit PC : FDB / PBE	10.000
Letter of credit	30.000
Guarantee	10.000
Total	155.000

Further the security by way of hypothecation of stocks, book debts, etc, given earlier, more particularly described in annexure II to the supplemental common hypothecation agreement shall continue as security for the enhanced limit.

It is in trade terms with:

v Alucast Foundries Belgaum Private Limited

v Alucast Industries

v Electroscope Systems

v Gala Springs Private Limited

v Kohinoor Mechanical and Engineering Works

v Preciturn Systems

The company's fixed assets of important value include:-

· Leasehold Land,

· Buildings,

· Plant and Machinery,

· Furniture and Fixtures

· Vehicles.

OTHER INFORMATION:

Tractor Engineers Limited	No of shares / Units/ Bonds
Long Term Investments (at Cost)
Subsidiary Companies
Narmada Infrastructure Construction Enterprise Limited	2822750
Larsen and Toubro LLC	2500
Bonds Non-Trade
6.75% Tax Free US64	21575
TOTAL

CONSOLIDATED BALANCE SHEET OF GROUP COMPANIES AS AT 31^st MARCH 2005

SOURCES OF FUNDS			31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital			259.800	248.800
3] Reserves & Surplus			32617.600	26224.400
Employee stock options outstanding		434.300		--
Less : Deferred Employee Compensation expense		152.400	281.900	--
NETWORTH			33159.300	26473.200
LOAN FUNDS
1] Secured Loans			18482.800	22690.600
2] Unsecured Loans			16055.600	5001.600
TOTAL BORROWING			34538.400	27692.200
DEFERRED TAX LIABILITIES			2619.100	3534.700
Minority Interest			1047.700	540.800
TOTAL			71364.500	58240.900
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]			19954.200	20233.300
Capital work-in-progress			1752.200	417.300
Intangible Assets (Net Block)			392.100	563.500
Capital work in progress			11.200	132.500
Fixed Assets held for sales			40.100	54.400
INVESTMENT			6801.000	6238.400
DEFERREX TAX ASSETS			1243.300	1399.600
CURRENT ASSETS, LOANS & ADVANCES
	Inventories		24342.000	19672.200
	Sundry Debtors		42518.100	34907.200
	Cash & Bank Balances		9903.600	5372.000
	Other Current Assets		42.100	102.600
	Loans & Advances		24413.800	18618.900
Total Current Assets			101219.600	78672.900
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities		52055.800	42591.600
	Provisions		8400.700	7358.700
Total Current Liabilities			60456.500	49950.300
Net Current Assets			40763.100	28722.600
MISCELLANEOUS EXPENSES			407.300	479.300
TOTAL			71364.500	58240.900

CONSOLIDATED PROFIT & LOSS ACCOUNT OF GROUP COMPANY FOR THE YEAR ENDED 31^st MARCH 2005

PARTICULARS	31.03.2005	31.03.2004
Sales Turnover [including other income]	151037.300	112796.100
Profit/(Loss) Before Tax	14052.300	10680.700
Provision for Taxation	2775.400	6641.900
Profit/(Loss) After Tax	11276.900	7710.600
Total Expenditure	137000.400	103597.600

WEBSITE DETAILS ATTACHED:-

The company was established in 1963 as a Joint venture between CATERPILLAR INC U.S.A. and LARSEN and

TOUBRO LIMITED

Caterpillar and L and T had equal (50% each) shareholding in subject. Subject started manufacturing at POWAI in a new factory in 1965 and initially made spares for CAT Machines (primarily DOZERS) in INDIA and sold them through CAT Dealers in India. In 1969 SUBJECT started supplying undercarriage to BEML Subject started tracking undercarriage for Hydraulic Excavators of Poclain design in 1974, which L and T produced under model LC80 ( 20 T HEX )

Subject today tracks Hyd. Excavators made by L and T Komatsu, TELCON, BEML, HM DEMAG and Blast Hole Drills of Ingersoll Rand, Revathi CP etc .from 6T to 60T.

In 1970's Subject made Battle Tank Pins for HVF Avadi. Subject designs and builds Apron Feeders Subject also designs and manufactures Oilfield Equipment Spares. Subject, is now a wholly owned subsidiary of LARSEN and TOUBRO LIMITED

Tractor Engineers Limited (TENGL)

Business profile

Subject, a wholly owned subsidiary of Larsen and Toubro Limited, designs and manufactures crawler undercarriage systems for excavators, blast hole drills, bulldozers, amphibious dredgers, mobile crushers, etc. It also designs and manufactures track modules and crawler lowers.

  > Earthdrilling Parts

Subject manufactures centrifugal pumps designed for handling highly abrasive and corrosive slurries. These pumps have found wide acceptance in industries like petrochemical, mining, paper and pulp. Subject centrifugal slurry pumps are a significant import substitute for Oil and Natural Gas Corporation and Oil India Limited.

> Material Handling

Subject's apron feeders have been installed at over 150 different sites for various applications in mining, ports, fertilizer plants, cement plants and power plants. Besides apron feeders, subject also supplies chain conveyors and scraper conveyors.

> Special Project

The Project group of the company apart from building wherever required Installing ] Apron Feeders is responsible for Special Application wherein they have successfully built and delivered  / installed variety of Equipments which includes:

  • SEABED MINING MACHINE

  • AMPHIBIOUS UNDERCARRIAGE

  • MOBILE CRUSHING PLANTS

  • SPECIAL MODULES and TRACK FRAMES

The strength of subject's Project team in developing New Applications is reflected by Their In- built capability of Design and Re-Engineering, Ability to Indigenously develop Intricate and complex Assemblies required by Defense, Railways and Mining Applications.

Undercarriage

TRACTOR ENGINEERS LIMITED

The company founded in 1963, is a wholly owned subsidiary of Larsen and Toubro Ltd. Subject manufactures crawler Undercarriage and track parts at its modern factory at Powai, Mumbai. Subject maintains product excellence by exercising strict quality control in its manufacturing activity. Quality standards comply with ISO 9001-2000. A fully integrated ERP system SAP ensures a well tracked manufacturing cycle for all subject items.

TENGL…committed to Customers needs.

Over the years, subject has acquired a professional identity as a dependable source of products, services and parts. Subject continues to make a major investment in upgrading its manufacturing base and R and D facilities as part of its enduring commitment to customer needs. Subject's Research and Development Center is engaged in product upgradation. Rand D engineers interact closely with customer personnel. Application engineering services include:

• Identifying problem areas.
• Defining the nature, cause and consequences of the problem.
• Offering the optimum solution.

TENGL…proven technology for reliable performance.

All the company personnel share quality consciousness. Subject uses Boron Steel to combat wear and tear of undercarriage parts and components. This die-hard steel has tremendous impact strength coupled with wear resistance.

Quality control measures are integrated into subject's production process. Checks e.g. microstructure analysis, non-destructive testing- magnaflux, periodic sampling at various stages…ensure conformance to customer specifications.

Surface hardness in subject parts is precisely matched. The core hardness is carefully controlled to produce parts that are tough, resist wear and serve longer.

High dependability of parts is attributed to the special alloys, selective heat treatment and exclusive know-how. Track components are so designed that worn parts can be rebuilt, more than once, to a like-new condition and reused just as effectively.

Links.

Links are forged from deep hardened steel and have massive-strut and increased rail height. A generous blending radii in these links increases their fatigue strength, reduces the possibility of cracking and offer excellent rebuilding. The link body is also specially hardened to impart toughness.

The rail surface is induction hardened to match the roller flange hardness. Subject link's hardened depth shows consistency not present in competitor's links. The Result: SUBJECT links are stronger by almost 22% compared to low rail design.

Pins and Bushings.

Pins are characterized by exceptional core strength that minimizes case crushing and deep and even case depth for long life and strength before and after turning. Bushings have tempered ends, which eliminate cracking breaking during assembly and disassembly.

Roller Group.

Subject rollers match the tracks. Shafts are induction hardened and ground to near perfect smoothness. The thick flanges have an excellent load carrying capacity. Rims are also selectively hardened so that they hard, deep case coupled with a tough core. The Result is reduced shell wear, no bending, no bell mouthing or breaking.

Metal Faced full floating seals keep subject rollers lubricated for life. Make up lube servicing or flushing is never required. These rollers not only perform longer but can also be rebuilt more times than any other makes.

These rollers resist wear to prevent premature wear of other undercarriage components. They extend the life of the crawler undercarriage.

Carrier Rollers.

Carrier Rollers are also lifetime lubricated using Metal Faced full floating seals. Large shafts and bearings carry load, while wear surface hardness and hardened depths are matched with links for a balanced wearing system. Carrier Rollers are cantilever mounted with large shafts and bearings.

Track Shoes.

Track shoes made from special deep-hardening alloy steels have a specially rolled design. They also have high core strength. Optimum leading and trailing radii keeps the shoes from cracking or bending and hardware from loosening.

Track shoes in wide range of sizes are available to suit the requirement of the crawler machine in variety of applications

Sprocket Rims and Segments.

Subject sprocket rims and segments are designed to suit crawler operation in different applications. Sprocket segments are easily replaced without any special tooling. Segments eliminate the risk of Rim misalignment. Thus, reducing maintenance and downtime expense. These segments simplify field replacements and result in worthwhile cost reduction.

Crawler lowers …optimum efficiency for greater production.

Subject puts the best part together to give a complete picture of undercarriage efficiency. Tracks work together as a system to meet heavy duty demands in different applications.

YEAR IN RETROSPECT/ PERFORMANCE OF THE COMPANY: 

Sales and other income for the financial year under review were Rs.911.100 millions as against Rs. 798.300 millions for the previous financial year. The Profit before tax was Rs. 86.000 millions against Rs. 81.800 millions for the previous financial year. Sales of undercarriage systems and apron conveyors showed good growth in the current year. 

In the year under review the Company was successful in indigenizing imported undercarriage parts on a number of new Hydraulic Excavators launched in the country. These included hydraulic excavators introduced by JCB and TELCON. The company track systems were also used on a number of new applications like Mobile Screens and Portable Crushing Plants. 

In order to explore global markets and develop the company track system as a global brand, the Company is participating at INTERMAT Exhibition in France in April 2006. 

During the year the Company acquired land on lease at Talegaon MIDC for its future expansion plans. The Company is expected to commence commercial production at Talegaon from January 1, 2007. 

 The Company had discontinued its operations at Navi Mumbai Plant. Consequently, the fixed assets located there were retired from active use and are being held for sale. 

Services

Innovation and design are a continuous process at the company.

A full-fledged design department with qualified engineers assists customers to translate needs and ideas into reality.

Their design engineers will assist in every step, right from the material selection to the final product. Their production capabilities assure manufacturing quality unmatched in any other crawler component manufacturer.

Their experts will assist in material selection and determine the metal properties to suit the requirements.

· Personalized After Sales Customer Service (ACS).

· World class manufacturing talent.

· On time delivery.

Besides the above they have a specialized PROJECTS GROUP which Builds special Equipments and also Installs equipment at site as required

Technology Center

Technology Center uses state-of-the-art AUTOCAD 2006, PRO-E / IDEAS Software for Fatigue / FEA Analysis with high end workstations.

The company "Technology Center" with the aid from latest software design tools, is engaged in continuous product development and improvement process. Product test data and customer feed back on product performance as well as serviceability is blended in design decisions, to make the product designs optimum and user friendly. New materials and process technologies are developed for practical use.

Three dimensional modeling software tools are used to define product geometry accurately. Actual load and stress data collected by strain gauging techniques is used in finite element analysis for product optimization and improvement. New product development process includes QFD technique which captures all known product requirements at the design stage itself.

Systems

Quality Systems: ISO:9001-2000 and ISO 14001 : 2004 certified by Bureau Veritas Quality International

IT System

The company business processes are fully integrated with state-of-the-art globally renowned SAP R3 Enterprise ERP system, which ensures business efficiency and enhance customer satisfaction. Anywhere anytime communication with global web-email keeps the company On the move! Always connected to the customers. The company web site www.tenglindia.com is 24x7 available platform on Company-Product Profile and inviting online business enquiries to provide service for Customers being web-centric !! Tengl IT infrastructure is on the global path with Fibre-Optic Gateway for high speed access !!

TESTING and METROLOGY

In-house Metallurgical testing Access for Physical testing

Microhardness Tester:

The company Metallurgical Laboratory comprises of state of the art Microhardness tester to check the hardness at loads ranging from 10 gm to 1000 gm. The small size of indentation enables hardness mapping on a microscale and phase identification, thus proving to be an asset for R and D as well as manufacturing activities.

Microstructure Analysis:

A well equipped Microstructure analysis facility comprising of CCD camera and Image analysis software enables control of the processing parameters to get desired microstructure in all the undercarriage components.

MANUFACTURING

Modern Heat Treatment Shop
- Induction Hardening
- Electrically heated furnaces
- Pit type carburising furnace

Machine Shop

Well Equipped Machine Shop with
- CNC Turning Centers
- CNC Special Purpose Machines
- Surface and Cylindrical Grinding Machines
- Contemporary Track Assembly Equipment
- A sophisticated Metal to Metal Seal Mfg. line

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 records 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.39.35
UK Pound	1	Rs. 80.36
Euro	1	Rs. 57.62

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	9
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	9
--CREDIT LINES	1~10	9
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--OTHER ADVERSE INFORMATION	YES/NO	YES
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		75

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

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions