MIRA INFORM REPORT
|
Report Date : |
08.06.2006 |
IDENTIFICATION
DETAILS
|
Name : |
L
& T KOMATSU LIMITED |
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Registered Office : |
L & T House, Ballard Estate, Mumbai - 400
001, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
29.07.1997 |
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Com. Reg. No.: |
11-109700 |
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CIN No.: [Company Identification No.] |
L29119MH1997PLC109700 |
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TAN No.: [Tax Deduction & Collection Account
No.] |
BLRL01259G |
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Legal Form : |
A
Closely Held Public Limited Liability Company |
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Line of Business : |
Manufacturing,
Trading, Assembling, Selling, Re-Selling, Exchanging, Altering, Importing,
Exporting, Hiring, Letting on Hire, Distributing or Dealing in Earth Moving
Machinery including Self Propelled Bull Dozers, Angle Dozers, Graders Levellers,
Scrappers, Mechanical Shovels, Excavators Shovel, Loaders Tamping Machines
and Road Rollers and Hydraulic and Pneumatic Equipments. |
RATING
& COMMENTS
|
MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall
operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 5909320 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject
is a Joint Venture company of Larsen & Toubro Limited and Komatsu Limited
of The
company can be considered normal for business dealings at usual trade terms
and conditions. The
company can be regarded as a promising business partner in a long-run. |
LOCATIONS
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Registered/Head Office : |
L & T House, Ballard Estate, Mumbai - 400
001, |
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Tel. No.: |
91-22-22618181/267525656/22685656 |
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Fax No.: |
91-22-22618181 / 22620223/ 267525858/22685893 |
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E-Mail : |
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Website : |
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Factory
1 : |
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Tel.
No.: |
91-80-23333301 |
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Fax
No.: |
91-80-23334319 |
DIRECTORS
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Name : |
Mr.
Jagdish Pandurange Nayak |
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Designation : |
Director |
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Address : |
Gilder House, 67-F, |
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Date of Birth/Age : |
13.11.1943 |
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Date of Appointment : |
29.07.1997 |
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Name : |
Mr.
Krishnamoorthy Subramanian Manjeri |
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Designation : |
Director |
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Address : |
11, Gauri Giridhar, Peston Sagar, Chembur,
Mumbai – 400 089 |
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Date of Birth/Age : |
15.08.1946 |
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Date of Appointment : |
06.06.2001 |
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Name : |
Mr.
Yeshwant M. Deosthalee |
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Designation : |
Director |
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Address : |
1001, Prabhu Kutir, 15, |
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Date of Birth/Age : |
06.09.1946 |
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Date of Appointment : |
01.02.1998 |
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Name : |
Mr.
Hisashi Tomoji Miyazaki |
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Designation : |
Director
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Address : |
11
Orchard Turn, Orchard Parksuites, # 09 – 04, |
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Date of Birth/Age : |
19.02.1949 |
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Date of Appointment : |
01.04.2004 |
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Name : |
Mr.
Masaji Toyosaku Kitamura |
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Designation : |
Director
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Address : |
1 – 13
– 3, Kitashinjuku – Ku, |
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Date of Birth/Age : |
19.08.1947 |
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Date of Appointment : |
01.04.2004 |
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Name : |
Mr.
Moreshwar Yeshwant Deosthalee |
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Designation : |
Director
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Address : |
1001,
Prabhu Kutir, 15, |
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Date of Birth/Age : |
06.09.1946 |
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Date of Appointment : |
01.02.1998 |
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Name : |
Mr.
Yasushi Yoshio Sakano |
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Designation : |
Director
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Address : |
5
Ridley Park, # 05 – 01, Tanglin |
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Date of Birth/Age : |
13.05.1958 |
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Date of Appointment : |
26.03.2003 |
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Name : |
Mr.
Kenichi Mokoto Tanaka |
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Designation : |
Director
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Address : |
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Date of Birth/Age : |
03.08.1960 |
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Date of Appointment : |
25.02.2005 |
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Name : |
Mr.
Raghavan Sadagopan |
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Designation : |
Manager
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Address : |
B –
103 Krishna Vilas Apartments, 6th Cross, Ashok Nagar, |
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Date of Birth/Age : |
25.03.1946 |
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Qualification : |
M.A.
[Economics], A.M.I.E. |
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Date of Appointment : |
01.02.2004 |
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Name : |
Mr.
Umesh Subraya Mooteri |
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Designation : |
Secretary
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Address : |
21
Mont Blanc, 67 – A, L. J. Marg, Mumbai – 400006, |
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Date of Birth/Age : |
07.12.1952 |
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Date of Appointment : |
15.03.1999 |
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Name : |
Mr.
Amit K. Vyas |
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Designation : |
Secretary |
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Address : |
Flat
No. 503, Building No. 3B, Vaishali Nagar, Mahalaxmi, Mumbai – 400001, |
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Date of Birth/Age : |
15.11.1967 |
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Date of Appointment : |
01.09.2004 |
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Name : |
Mr. A.
N. Mani |
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Designation : |
Director |
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Name : |
Mr. G.
K. Apte |
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Designation : |
Director |
KEY
EXECUTIVES
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Name
: |
Mr.
Amit K Vyas |
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Designation
: |
Company
Sectary |
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Name
: |
Mr. S.
R. Subramanian |
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Designation
: |
Chief
Executive |
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Name
: |
Mr. T.
Nakatani |
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Designation
: |
Deputy
Chief Executive |
MAJOR
SHAREHOLDERS
|
Names
of Shareholders |
No. of Shares |
|
Larsen & Toubro Limited |
59999699 |
|
Komatsu Asia & Pacific Pte Limited ( |
59999700 |
|
Deosthalee Yeshwant Moreshwar & Larsen & Toubro Limited |
100 |
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Nayak Pandurang Jagdish & Larsen & Toubro Limited |
100 |
|
Krishnamurthy Venkataramanan & Larsen & Toubro Limited |
1 |
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Manjeri Subramanian Krishnamoorthy & Larsen & Toubro Limited |
100 |
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Miyazaki Tomoji Hisashi & Komatsu Asia & Pacific Pte Ltd |
100 |
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Kitamura
Toyosaku Masaji & Komatsu Asia & Pacific Pte Limited |
100 |
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Tanaka Mokoto Kenichi & Komatsu Asia & Pacific Pte Limited |
100 |
BUSINESS
DETAILS
|
Line of Business : |
Manufacturing,
Trading, Assembling, Selling, Re-Selling, Exchanging, Altering, Importing,
Exporting, Hiring, Letting on Hire, Distributing or Dealing in Earth Moving
Machinery including Self Propelled Bull Dozers, Angle Dozers, Graders
Levellers, Scrappers, Mechanical Shovels, Excavators Shovel, Loaders Tamping
Machines and Road Rollers and Hydraulic and Pneumatic Equipments. |
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Products : |
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Exports to : |
Europe,
Asia, |
GENERAL
INFORMATION
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Customers : |
Ř
Bangkok Komatsu Limited, Ř
Boart Longyear Seco, SA Ř
Komatsu Limited, Ř
PT Komatsu Ř
Ř
Estech Corporation, |
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No. of Employees : |
600 |
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Bankers : |
Corporation
Bank, Industrial Finance Branch, No. 1, State
Bank of India, Industrial Finance Branch, No. 61, Residency Plaza, Residency
Road, Bangalore - 560 025, Karnataka The No. 7,
The
Bank of Tokyo-Mitsubishi, Venkataramana Centre, 563/2, 6th Floor,
Anna Salai, Teynampet, Chennai – 600 018. |
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Facilities : |
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Banking Relations : |
Good |
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Auditors : |
Sharp
& Tannan Chartered
Accountants, 103,
Midford House, 1, |
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Associate Office : |
Located
at : > Bank
of Tel. No. : 91-22-22047723 >
Secunderabad > |
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Associates/Subsidiaries : |
˜
Larsen & Toubro Limited ˜
Audco India Limited ˜
EWAC Alloys Limited ˜
Tractor Engineers Limited ˜
L & T Chiyoda Limited ˜
L & T Niro Limited ˜
L & T Sargent & Lundy Limited ˜
L & T Ramboll Consulting Engineers Limited ˜
L & T John Deere Limited ˜
L & T Case Equipment Limited ˜
Larsen & Toubro ( ˜
Larsen & Toubro ( ˜
International Seaports Pte. Limited ˜
Komatsu Asia Pacific Pte Limited ˜
Komatsu Limited |
CAPITAL
STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
120000000 |
Equity shares |
Rs. 10 each |
Rs. 1200.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
120000000 |
Equity shares |
Rs. 10 each |
Rs. 1200.000 millions |
FINANCIAL
DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
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1] Share Capital |
1200.000 |
1200.000 |
1200.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
277.330 |
81.839 |
0.000 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
[88.434] |
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NETWORTH |
1477.330 |
1281.839 |
1111.566 |
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LOAN FUNDS |
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|
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1] Secured Loans |
471.053 |
744.964 |
893.875 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
471.053 |
744.964 |
893.875 |
|
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DEFERRED TAX LIABILITIES |
91.751 |
114.575 |
137.430 |
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|
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|
|
|
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TOTAL |
2040.135 |
2141.378 |
2142.871 |
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APPLICATION
OF FUNDS |
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|
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|
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FIXED
ASSETS [Net Block] |
850.643 |
954.267 |
1057.695 |
|
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Capital
work-in-progress |
6.175 |
0.890 |
8.619 |
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|
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INVESTMENT |
0.000 |
0.000 |
0.000 |
|
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DEFERREX
TAX ASSETS |
11.303 |
64.892 |
189.043 |
|
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|
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CURRENT
ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1239.847
|
884.070 |
492.179 |
|
|
Sundry
Debtors |
946.487
|
1049.240 |
527.029 |
|
|
Cash
& Bank Balances |
42.857
|
8.903 |
0.802 |
|
|
Other
Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans
& Advances |
387.648
|
150.408 |
98.831 |
|
Total Current
Assets |
2616.840 |
2092.621
|
1346.243 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current
Liabilities |
1059.995
|
983.380 |
387.763 |
|
|
Provisions |
410.523
|
36.900 |
0.000 |
|
Total Current
Liabilities |
1470.518 |
1020.280
|
531.015 |
|
|
Net Current Assets |
1146.322 |
1072.341
|
815.228 |
|
|
|
|
|
|
|
|
MISCELLANEOUS
EXPENSES |
25.691 |
48.988 |
72.286 |
|
|
|
|
|
|
|
|
TOTAL |
2040.135 |
2141.378 |
2142.871 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
Sales Turnover [including other income] |
5315.161 |
3718.748 |
2648.663 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
608.072 |
284.644 |
89.876 |
|
|
Provision for Taxation |
207.336 |
114.370 |
24.254 |
|
|
Profit/(Loss) After Tax |
400.736 |
170.274 |
65.622 |
|
|
|
|
|
|
|
|
Export Value |
0.000 |
68.614 |
47.237 |
|
|
|
|
|
|
|
|
Import Value |
0.000 |
1264.550 |
795.106 |
|
|
|
|
|
|
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|
Expenditures : |
|
|
|
|
|
|
Manufacturing and operating expenses |
3595.830 |
2619.940 |
0.000 |
|
|
Staff Expenses |
233.823 |
222.996 |
0.000 |
|
|
Administrative Expenses |
749.577 |
436.352 |
0.000 |
|
|
Interest |
44.075 |
62.971 |
0.000 |
|
|
Depreciation & Amortization |
114.243 |
115.815 |
0.000 |
|
Total
Expenditure |
4737.555 |
3458.074 |
2559.787 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
7.53
|
4.58 |
NA |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
11.44
|
3.95 |
2.15 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
17.53
|
9.34 |
NA |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.41
|
0.22 |
NA |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.31
|
0.68 |
0.87 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.78
|
2.05 |
2.39 |
LOCAL
AGENCY FURTHER INFORMATION
Fixed
Assets
Land
Buildings
Office
Equipments
Air
Conditioner
Refrigerator
Lab
Equipment
Cars
Motor
Cycles
Computer
& Printers
Plant
& Machinery
Furniture
& Fixtures
Vehicles
Profile:
Subject
is a joint venture between Larsen & Toubro Limited and Komatsu of Japan
The
company has been accredited with ISO 14001 Certification from Bureau Veritas
Quality International UK.
Generic
Names of Three Principal Products / Services of the Company are as under :
|
ITEMS CODE NO. |
PRODUCT DESCRIPTION |
|
84295200 |
Hydraulic
Excavators |
|
84122109 |
Hydraulic
Motors |
|
84122100 |
Hydraulic
Cylinders |
The
company has technical collaboration with:-
˜
PERFORMANCE
:
The
company was able to take full advantage of the country’s economic resurgence to
record substantial improvements in sales and profit – both before and after tax. The company sold 1254 machines during
the year as against 911 machines in the
previous year. Of particular
significance is its leadership in the premium segments of 20T, 30T & 60T
excavators. The company wishes to record
its appreciation of the excellent marketing efforts put in by its selling
agents – M/s Larsen & Touro Limited both in sales and containment of
receivables. During the year the Company was able to contain its costs and
interest outgo to lower levels thus ensuring that the EBT grew by 114% over the
previous year. The company was also well-served by the dedicated efforts of all
its employees, in achieving the output levels that constituted a new record.
QUALITY
CERTIFICATION
The
company has been certified for its Quality Management System at Machinery Works
[MW] for the new version ISO 9001:2000 which was conducted by BVQI during July
03. The certification is valid for
period of three years from August’03.
The fourth and fifth surveillance
audits were conducted at MW by BVQI in Oct’05 and Feb’06 respectively. In respect of the ISO 9001:2000 certification
of Hydraulics Works, awarded in January’03 two surveillance audits were carried
out at HW in May’05 and Nov’05 Fby BVQI.
INDUSTRIAL
RELATIONS
The
Board of Directors Wishes to place on record its appreciation of the
outstanding contribution of all employees to the operations of the company
during the year ended March2006. The Industrial Relations scenario remained
very cordial and harmonious. The significant achievements arising out of
harmonious Industrial Relations has instilled further discipline among the
workers resulting in improved productivity.
|
Name
of the company |
L
& T KOMATSU LIMITED |
|
Presented By |
The
52/60,
|
|
1)
Date and description of instrument creating the change |
Deed
of Hypothecation dated 24.04.2003 |
|
2)
Amount secured by the charge/amount owing on the securities of charge |
Rs.
538.500 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 |
Plant
and machineries as described in the schedule of the Deed of Hypothecation
dated 24.04.2003 |
|
4)
Gist of the terms and conditions and extent and operation of the charge. |
In
consideration of Loan of Rs. 538.500 millions sanctioned, with interest and
margin as Applicable from time to time |
|
5)
Name and Address and description of the person entitled to the charge. |
The
Hongkong and Shanghai Banking Corporation Limited 7, |
|
6)
Date and brief description of
instrument modifying the charge |
The
Supplemental Deed of Hypothecation dated 14.05.2004 for Rs. 588.500 millions |
|
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. |
By the
Supplemental Deed of Hypothecation dated 14.05.2004. in consideration of Bank
agreeing to grant / granting an additional Term Loan of Rs. 50 millions the
company agreed to continue to Hypothecate the said machineries as described
in Schedule of Original Deed of Hypothecation dated 24.04.2003 over plant and
machineries and other moveable assets making thereby the total amount secured
for an aggregate sum of Rs. 588.500 millions |
As
Per Website Details:
Larsen & Toubro Limited
(L&T) is a technology-driven engineering and construction organization, and
one of the largest companies in
A strong, customer-focussed
approach and the constant quest for top-class quality have enabled the Company
to attain and sustain leadership in its major lines of business across seven decades.
L&T has an
international presence, with a global spread of offices. A thrust on
international business over the last few years has seen overseas earnings
growing to 18 per cent of total revenue. With factories and offices located
around the country, further supplemented by a wide marketing and distribution
network, L&T's image and equity extends to virtually every district of
India.
L&T believes that
progress must necessarily be achieved in harmony with the environment. A
commitment to community welfare and environmental protection constitute an
integral part of the corporate vision.
History
The evolution of L&T into the country's largest engineering and
construction organizations is among the more remarkable success stories in
Indian industry. The company was founded in
Record of Achievements
L&T's signature of excellence is evident on:
|
|
|
Oil and gas platform projects executed to
global benchmarks |
|
The world's largest continuous catalyst
regeneration reactor |
|
The simultaneous execution of clean fuel
projects at eight refineries around |
|
The world's biggest fluid catalytic
cracking regenerator |
|
The world's longest product splitter |
|
|
|
The world's longest LPG pipeline |
|
The world's longest cross country conveyor |
|
Building an international class football
stadium in 260 days |
Engineering &
Construction - Projects
L&T's
engineering & construction track record consists of successful
implementation of turnkey projects in major core and infrastructure sectors of
Indian industry. L&T has integrated its strengths in process technology,
basic and detailed engineering, equipment fabrication, procurement, project
management, erection, construction and commissioning, to offer single-point responsibility
against stringent delivery schedules. Strategic alliances with world leaders
enable L&T to access technical know-how and execute process-intensive
large-scale turnkey projects to maintain its leadership position.
L&T's core competencies
in engineering include highly qualified and experienced personnel from various
disciplines, state-of-the-art 2-D and 3-D CAD facilities with sophisticated
plant design systems and basic engineering capabilities. L&T is the only
Indian EPC company pre-qualified for executing large, process-intensive
projects for oil & gas, refinery, petrochemical and fertiliser sectors.
Heavy Engineering
L&T is acknowledged as one of the top five fabrication companies in the
world, with engineering and manufacturing capabilities that are among the most
sought after in industry. Operating at the high end of the technological
spectrum, L&T has led Indian industry in introducing new processes,
products and materials in manufacturing. L&T also has the logistics
capabilities of fabricating and supplying over-dimensional equipment to tight
delivery schedules. L&T's globally-benchmarked workshops are located in
Mumbai, Hazira,
Construction
ECC - the Engineering Construction & Contracts Division of L&T is
Electrical &
Electronics
L&T is a major international manufacturer of a wide range of electrical and
electronic products and systems. In the electrical segment, the Company is
Information Technology
Larsen & Toubro
Infotech Limited, a 100 per cent subsidiary of L&T, offers comprehensive,
end to end software solutions and services with a focus on Manufacturing, BFSI
and Communications & Embedded Systems. It provides a cost cutting
partnership in the realm of offshore outsourcing, application integration and
package implementation.
Leveraging the heritage and domain expertise of the parent company, its
services encompass a broad technology spectrum, catering to leading
international companies across the globe. It leverages the L&T parentage to
also provide services in the embedded intelligence and e-Engineering
space.
Machinery &
Industrial Products
L&T manufactures, markets and provides service support for critical
construction and mining machinery - surface miners, hydraulic excavators,
aggregate crushers, loader backhoes and vibratory compactors.
Corporate Social
Responsibility
Beyond the corporate objectives of achieving growth and profitability, L&T
is conscious of its larger social obligations. The Company's efforts have been
widely recognized.
Human
Resources
L&T’s employment policies and systems radiate from a
single principle - they believe in people. People are their most valued asset -
their core strength.
They have, therefore, created a ‘climate’ which is distinctive in industry.
Employees gain a level of freedom which provides security, satisfaction and,
most importantly, a sense of professional fulfilment.
At L&T, learning is a continuous process. Their Human Resources Development
Department offers training programmes for employees right through their career.
A good blend of skill development, behavioural and core programmes provide
stimulus for growth and career development.
Courses are designed to keep employees in touch with the latest trends in
management. Emphasis is laid on creativity, innovation, achievement motivation
for excellence, empowerment, augmenting communication and interpersonal skills,
developing initiative and leadership qualities and providing knowledge of
computer applications.
The compensation package offered by L&T compares favourably with respective
industries in which they operate.
L&T’s accelerated growth opens up an array of employment opportunities for
professionals at various levels. They seek achievers with an excellent track
record.
CORPORATE SOCIAL
RESPONSIBILITY
Initiatives for a Better World
In parallel with the
primary objective of enhancing shareholder value, L&T has assumed a degree
of responsibility for the welfare of society at large. The mutually
interdependent relationship between their businesses and the social milieu in
which they exist places corporate social responsibility in a position of
crucial significance.
HEALTH
Good health is a basic driver for growth. L&T endeavours to impact the
lives of as many of the underprivileged as possible through various health and
welfare schemes. Focussing on the people surrounding the Company's
establishments, L&T has set up welfare centres and organizes periodic
health drives - free or at highly subsidised rates. L&T's welfare
facilities comprise state-of-the-art diagnostic systems and equipment. Health
services offered include family planning, counselling, mother & child
health care, diagnosis and treatment of illnesses like tuberculosis and
leprosy, etc.
Periodic programmes include
blood-donation drives, alcohol recovery programmes, immunization projects,
cancer check-ups, and eye camps.
As one of
The Figures
The reach of L&T's health-related activities can be measured in the number
of lives it has impacted.
Each year, L&T's Health Centre at Andheri,Mumbai, treats around 25,000
patients.
Between October 1983 and March 2004, L&T carried out over two lakh
immunizations against common childhood illnesses - tuberculosis, polio,
measles, hepatitus B, etc.
The Awards
Sankara Ratna Award 2004 by
The Mother Teresa Award for Corporate
Citizen 2003 by Chennai-based Loyola Institute of Business Administration
(LIBA), for fulfilling corporate social responsibilities. LIBA is one of the
prestigious management institutes in
EDUCATION
In its own small way, L&T has changed forever the lives of hundreds through
education.
Apart from a couple of
educational institutions run by the Company on its factory premises, L&T
provides support to village schools in terms of infrastructure, teaching aids,
computers and other resources. In tragedy-prone
Each year, L&T selects some forty
engineering graduates with promising potential, and gives them the opportunity
to undergo the prestigious M.Tech at IIT. This enhances the interface between
academia and industry, and ensures a continual flow of talent-rich engineers
from strata of society that might otherwise not produce talent of such calibre.
DISASTER MANAGEMENT
In times of national disaster, L&T has always stepped forward to lend a
helping hand to a nation in grief. L&T has provided assistance in terms of
donations, volunteers, construction material, medical and food supplies to
mitigate the effects of such calamities as the
ENVIRONMENTAL
CONSERVATION
L&T has enunciated Environmental Policy Statements as required by the ISO
14001 standard for its Heavy Engineering and Electrical & Electronics
Divisions. Management Reviews are conducted annually by internal and external
auditors in line with ISO 14001 requirements. A well-maintained website ensures
interdepartmental information flow of data pertaining to environmental
preservation.
Treatment of Hazardous
Waste
To minimize the impact of potential pollutants on the ecosystem, L&T adopts
state-of-the-art techniques and employs processes to treat waste products.
Stringent quality control is maintained over hazardous waste of all types -
gaseous, liquid and solid. These are treated at source and disposed of with
minimal risk to the environment.
Conservation
At L&T's factories, judicious management of resources like fuel electricity
and water has led to steadily decreasing consumption over the past few years.
Environment-friendly
Replacements
The implementation of eco-friendly alternatives has brought the company twin
benefits: environmental conservation and economy. For example, wooden packing
and asbestos materials have been replaced by environment-friendly packing. LPG
has been replaced by PNG.
Spread of Awareness
To facilitate implementation of eco-sensitive practices in all operational
areas, staff as well as vendors are made aware of L&T's stance on matters
related to the environment.
Greenery
L&T's greening initiatives are visible in many locations - in the lush
surroundings of its factories, in the public gardens it maintains, in the
tree-plantation drives it undertakes periodically, and in the afforestation
projects it has undertaken in the rural areas surrounding its factories.
The Awards
L&T, L&T-Komatsu, and L&T Mysore
Works were awarded Greentech Safety Awards 2005 by the well-known New
Delhi-based non-profit organisation, Greentech Foundation, for the remarkable
efforts in industrial safety and environmental management. L&T and
L&T-Komatsu bagged the Gold awards, and Mysore Works the Silver, in the
category of 'Engineering Sector'. (May 11, 2005)
In recognition of the
policies and operations of L&T that emphasize environment protection at
every step and its efforts in preservation of ecology, Greentech Foundation, a
well-known New Delhi-based non-profit organization, has conferred on L&T,
its esteemed Environment Excellence Award 2003-04 in the category of
'Engineering Sector'. (November 8, 2004)
Greentech Foundation, a
well-known New Delhi-based non-profit organisation, has conferred on L&T
its prestigious Greentech Safety Award 2003-04 in 'Gold' category for the
remarkable efforts put in by the Company in industrial safety and environmental
management. L&T won the award in the category of 'Manufacturing Sector'.
(June 21, 2004)
The Electrical & Electronics Division of
L&T was awarded the prestigious Worldstar 2002 award for developing an
eco-friendly packaging for its FN-63 Switch Disconnector Fuse by the World
Packaging Organisation in
L&T won the Indian
Chemical Manufacturers' Association Award for its pioneering work leading to
the development of the waste heat recovery system for cement plants. This
application was the first-ever to be developed for cement plants in
CMT
REPORT [Corruption,
Money laundering & Terrorism]
The
Public Notice information has been collected from various sources including but
not limited to: The Courts,
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.40.98 |
|
|
1 |
Rs.80.98 |
|
Euro |
1 |
Rs.54.99 |
SCORE
& RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
49 |
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 |