MIRA INFORM REPORT

Report Date :

28.03.2007

IDENTIFICATION DETAILS

Name :	INGERSOLL-RAND (INDIA) LIMITED
Registered Office :	Plot No. 7 & 8, Phase 1, Peenya Industrial Area, Bangalore - 560 058
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	01.12.1921
Com. Reg. No.:	08-036321
CIN No.: [Company Identification No.]	L05190KA1921PLC036321
TAN No.: [Tax Deduction & Collection Account No.]	MUM105042C
PAN No.: [Permanent Account No.]	AAAC13099Q
Legal Form :	A Public Limited Liability Company. The company's shares are listed on the Stock Exchanges
Line of Business :	Manufacturing of Air and Gas Compressors, their Spares, Mining Equipments, Construction Equipments and their Spares.

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 16770000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and reputed company having fine track. The company is a subsidiary of Ingersoll Rand Company, United States of America. Available information indicated high financial responsibility of the company. Financial position is good. Payments are usually correct and as per commitments. Fundamentals are strong and healthy. The company can be considered good for any normal business dealings

LOCATIONS

Registered / Corporate Office :	Plot No. 7 & 8, Phase 1, Peenya Industrial Area, Bangalore - 560 058
Tel. No.:	91-80-22192500 / 839 5791
Fax No.:	91-80-28394651
Regional Office:	Located at Ahmedabad Bangalore Baroda Chennai Indore Jamshedpur Kolkata Lucknow Mumbai Nagpur New Delhi Pune Secunderabad Tiruchengodu Udaipur
Factory 1 :	22-29/293/187, GIDC Estate, Naroda, Ahmedabad – 382 330, Gujarat, INDIA
Factory 2 :	Peenya Industrial Area, Peenya, Bangalore – 560 058, Karnataka, INDIA

DIRECTORS

Name :	Mr. Daljit L.Mirchandani
Designation :	Chairman and President
Name :	Mr. Dean lacopelti
Designation :	Chairman and President
Name :	Mr. Dean Lacopelti
Designation :	Chairman and President
Name :	Mr. Hemraj C. Asher
Designation :	Chairman and President
Name :	Mr. Darius C. Shroff
Designation :	Chairman and President

KEY EXECUTIVES

Name :	Glenville da Silva
Designation :	Vice President & General Manager Construction Technologies & Compact Vehicle Technologies
Last Employment:	Production Trainee Zuari Agra Chemicals Ltd. (1)
Qualification :	B.E. (Chem)., DMM., MFM
Experience :	26 Years
Date of Appointment :	09.6.980
Name :	Jayaraman B,
Designation :	Vice President – Finance
Last Employment:	Chief Finance Officer & Assistant Finance Manager (Asia Pacific) Delphi Automotive Sysstems Ltd. (5)
Qualification :	B.Com., A.C.A.
Experience :	30 Years
Date of Appointment :	17-05-2000
Name :	Mirchandani D.L. (58)
Designation :	Chairman & President
Last Employment:	Executive Director KirloskarOil Engines Ltd. (17)
Qualification :	B.Sc. Engg. (Elec)
Experience :	35 Years
Date of Appointment :	15-04-1998
Name :	Prasad Y. Naik (47)
Designation :	Vice President and Information Technology
Last Employment:	General Manager, MIS Kirlosakar Ferrous Industries Ltd. (6)
Qualification :	B.Com., D.B.M., D.F.M., M.M.S
Experience :	17 Years
Date of Appointment :	01-04-1999
Name :	Varma 0. K. (57)
Designation :	Vice President - Human Resources and Organisation Development
Last Employment:	9,221,337 Vice President (H.R) Kirlosakar Oil Engines Ltd (6)
Qualification :	M.Tech., PGDBM
Experience :	33 Years
Date of Appointment :	27-04-1999
Name :	Ansari S. R.
Designation :	Manager - Strategic Sourcing Air Solutions
Last Employment:	Engineer Ideal Jawa (I) Pitd.(3)
Qualification :	B.Sc., B.E.,
Experience :	28 Years
Date of Appointment :	15-12-1977
Name :	Balajhee S.
Designation :	General Manager Air Solutions
Last Employment:	Chemical Engineer The Gwalior Rayon Silk Mtg (Wvg) Co (1)
Qualification :	B.E. Chemical Engg
Experience :	19 Years
Date of Appointment :	11-08-1986
Name :	Brown J. L. F.
Designation :	Senior Service Engineer Construction Technologies
Last Employment:	Service Engineer Killick Nixon Limited, Bombay (3)
Qualification :	S.S.LC.
Experience :	31 Years
Date of Appointment :	01-01-1983
Name :	George R.
Designation :	Supervisor - Sales Department Construction Technologies
Last Employment:	Stenographer Parke Davis (1)
Qualification :	B.A.
Experience :	28 Years
Date of Appointment :	16-02-1987
Name :	Gyani P S.
Designation :	General Manager North India Operations
Date of Birth/Age :
Qualification :	B.Sc. (Petroleum Engg)
Experience :	35 Years
Date of Appointment :	08-12-1972
Name :	Jaideep Wadhwa
Designation :	Vice President & General Manager Industrial Technologies
Last Employment:	Executive Director, Ingersoll-Rand Wadco Tools Pvt. Ltd. (15)
Qualification :	B.A. Maths (Hons), MBA, Gen Mgmt
Experience :	20 Years
Date of Appointment :	01-05-2005
Name :	Raghavachar V. A.
Designation :	Junior Engineer Construction Technologies
Last Employment:	Draughtsman Kirloskar Electric Co.Ltd. (6)
Qualification :	ITI, DME
Experience :	22 Years
Date of Appointment :	22-10-1987
Name :	Raghavan A.
Designation :	Excutive Vice President Air Solutions
Last Employment:	Director Marketing 8. Planning Delphi Automotive Systems Ltd. (4)
Qualification :	B.Tech., PGDM
Experience :	31 Years
Date of Appointment :	10-05-1999
Name :	Satish Kumar M. M.
Designation :	Technician Construction Technologies
Qualification :	ITI, NAC, S.S.LC.
Experience :	14 Years
Date of Appointment :	09-08-1991
Name :	Srinivasan S.A.
Designation :	Programmer Analyst Information Technology
Qualification :	DME., MCA
Experience :	16 Years
Date of Appointment :	06-12-1988
Name :	Srinivasa Udupa S.
Designation :	Head - Engineering & Development Construction Technologies
Qualification :	B.E. (Mech)
Experience :	16 Years
Date of Appointment :	14-07-1989
Name :	Subramanian M.
Designation :	Vice President - Human Resources and Organisation Development
Last Employment:	H.R. Director, South Asia Madura Coats Ltd. (31)
Qualification :	B.E., PGDBA
Experience :	31 Years
Date of Appointment :	(01-02-2006)

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares	Percentage of Holding
Ingersoll-Rand Company, New Jersey, U.S.A	23,360,000	74.00
Foreign Institutional Investors	88,568	0.28
Non Resident Indians	65,991	0.21
Unit Trust of India	200	*0.00
Insurance Companies	1,103,978	3.50
Nationalised Banks and other Banks	62,950	0.20
Foreign Banks	1,000	*0.00
Mutual Funds ,	788,030	2.50
Domestic Companies	1,123,793	3.56
Trusts	5,750	0.02
Directors and Their Relatives	86,600	0.27
General Public	4,881,140	15.46
	31,568,000	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Air and Gas Compressors, their Spares, Mining Equipments, Construction Equipments and their Spares.

Products :

Item Code No:	Production Description
841440.00	Air Compressors
843061.00	Vibratory Compactor
843041.30	Rock Drilling Mach

PRODUCTION STATUS

Particulars	Installed Capacity	Actual Production
Air and Gas Compressors	90000	57824
Rock and waterwell drilling equipment and accessories (including hammers and bits)	6939	939
Feeder Crushers	25	--
Power Driven Pumps (Centrifugal / Reciprocating)	--	--
Loaders	7	--
Vibratory Compactors	500	338
Pavers	15	9

GENERAL INFORMATION

No. of Employees :	861
Bankers :	Bank of America , Bank of India, Ciitibank N.A, Central Bank ofIndia,Standard CharteredBank.
Facilities :	--

Banking Relations :	Satisfactory
Auditors :	Price Waterhouse, Bangalore Chartered Accountant
Holding Company :	Ingersoll- Rand Company Limited Bermuda Ultimate Holding Company
Associates/Subsidiaries :	Ingersoll-Rand South-East Asia (Pte) Limited, Singapore Ingersoll - Rand Company Limited, United Kingdom Ingersoll-Rand European Sales Limited, United Kingdom Ingersoll-Rand International Sales S.A., Switzerland Ingersoll - Rand Brasil Limited, Brazil Ingersoll-Rand Italiana, S.P A., Italy Ingersoll Rand Japan Limited, Japan . Blaw-Knox Construction Equipment Corporation, U.S.A. Nanjing Ingersoll -Rand Compressor Corporation Limited. China ABG, Allgemeine Baumaschinen Gesellschaft, Germany Ingersoll Rand Equipment de Construction, France Hussmann Koxka, S. L, Spain Ingersoll - Rand (Australia) Limited, Australia Xuanhua Ingersoll - Rand Mining & Construction Machinery Limited, China Etablissements Montabert S.A., France Ingersoll - Rand Architectural Hardware (Australia) Pty. Limited, Australia Club Car Inc., U.S.A. Ingersoll-Rand Wadco Tools Private Limited Ingersoll-Rand International (India) Limited Dresser - Rand Company, U.S.A. * Hussmann do Brasil Ltda., Brazil Ingersoll Rand Drilling Machinery (Zhangjiakou) Company Limited, China Clark Equipment Company, U.S.A. Ingersoll - Rand (Guilin) Tools Company Limited, China Shanghai Ingersoll - Rand Compressor Limited, China Ingersoll - Rand (Wuxi) Road Machinery Company Limited, China GHH - Rand Schraubenkompressoren GmbH, Germany Ingersoll - Rand (China) Investment Company Limited, China Ingersoll - Rand (Hong Kong) Limited, Hong Kong Luoyang Hussmann Refrigeration Company Limited, China Ingersoll - Rand Philippines Inc., Philippines Ingersoll - Rand Company South Africa (Pty) Limited, South Africa Ingersoll - Rand Machinery (Shanghai) Company Limited, China Schlage Lock Company, U.S.A. IRCR Manufacturing S.R.O., Czech Republic Dresser-Rand India Private Limited Thermo King India Private Limited Ingersoll - Rand International Limited, Ireland

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
32000000	Equity Shares	Rs.10/-(each)	Rs.320.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
31586000	Equity Shares	Rs.10/-(each)	Rs.315.680 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
1] Share Capital		315.680	315.680	315.680
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		3878.00	3784.390	2881.500
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		4193.680	4100.070	3197.180
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.000	0.000	0.230
TOTAL BORROWING		0.000	0.000	0.230
DEFERRED TAX LIABILITIES		20.380	4.390	0.000
TOTAL		4214.060	4104.460	3197.410
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		394.220	406.650	402.820
Capital work-in-progress		18.290	6.430	4.020
INVESTMENT		22.590	22.590	23.280
DEFERREX TAX ASSETS		0.000	0.000	12.330
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	896.060	942.920	918.870
	Sundry Debtors	1348.290	1409.280	1756.540
	Cash & Bank Balances	2518.920	2169.640	156.310
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	682.110	370.460	1106.780
Total Current Assets		5445.380	4892.300	3938.500
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	1482.810	1039.380	919.040
	Provisions	183.610	184.130	264.500
Total Current Liabilities		1666.420	1223.510	1183.540
Net Current Assets		3778.960	3668.790	2754.960
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		4214.060	4104.460	3197.410

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
Sales Turnover		4767.160	4421.780	4538.580
Other Income		325.530	0.000	0.000
Total Income		5092.609	4421.780	4538.580
Profit/(Loss) Before Tax		506.360	322.690	301.980
Provision for Taxation		196.770	795.510	154.150
Profit/(Loss) After Tax		309.590	1118.200	456.130
Earnings in Foreign Currency :
	Other Earnings	0.000	0.000	812.390
	Export Calculated on FOB basis	915.280	1111.700	0.000
	Commission	4.070	1.34	0.000
	Freight and insurance on exports	6.590	7.82	0.000
	Recovery of expenses	12.840	25.71	0.000
	Engineering fees	61.300	51.75	0.000
Total Earnings		1000.080	1198.32	812.390
Imports :
	Others	0.000	910.230	933.870
	Raw materials	311.600	0.000	0.000
	Components and Spare parts	628.410	0.000	0.000
	Capital goods	0.000	0.000	0.000
	Goods for Sale	72.470	0.000	0.000
Total Imports		1012.480	910.230	933.870
Expenditures :
	Cost of Goods Sold
	Manufacturing Expenses	4509.270	0.000	0.000
	Interest	14.540	0.000	0.000
	Depreciation & Amortization	62.520	0.000	0.000
	Other Expenditure	0.000	4379.850	4090.040
Total Expenditure		4586.330	4379.850	4090.040

QUARTERLY / SUMMARISED RESULTS

PARTICULARS	30.06.2006	30.09.2006	31.12.2006
Type	1st Qtr	2^nd Qtr	3rd Qtr
Sales Turnover	1128.000	1604.900	1698.200
Other Income	70.700	87.000	73.800
Total Income	1198.700	1691.900	1772.000
Total Expenditure	1048.600	1451..500	1530.300
Operating Profit	150100	240.400	241.700
Interest	04.900	01.100	02.000
Gross Profit	145.200	239.300	239.700
Depreciation	14.800	15.600	17.400
Tax	54.200	74.600	92.300
Reported PAT	83.800	147.400	144.800

200606 Quarter 1 Expenditure Includes (Increase)/Decrease in Stock in Trade Rs (34.30) million Consumption of Raw Materials / Components Rs 831.40 million Staff Cost Rs 115.40 million Other Expenditure Rs 111.90 million Tax Includes Provision for Current Tax Rs 52.00 million Deferred Tax Rs (7.60) million Fringe Benefit Tax Rs 2.20 million Extraordinary Items Indicates Voluntary Retirement Compensation Rs 0.50 million Provision for payment of deferred benefit to employees Rs 16.40 million Provision for expenses on discontinuing business Rs 7.30 million Status of Investor Complaints for the quarter ended June 30, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter Nil Complaints disposed off during the quarter Nil Complaints unresolved at the end of the quarter Nil 1. Provision for current taxation, deferred taxation and fringe benefit tax of Rs 46.60 million for the three months ended June 30, 2006, has been made on an estimated basis. The actual tax liability of the Company will be determined on the basis of taxable income of the Company for the year April 01, 2006 to March 31, 2007. 2. While the drilling solutions business has been sold to Atlas Copco (India) Ltd (ACIL), the Company, pursuant to a Supply agreement, continues to manufacture drilling solutions products for ACIL and, its customers. The revenue and results arising from such operations are included in the Construction Technologies & Bobcat segment revenue and results as discontinued operations. 3. Climate Control business has been sold to Thermo King India Pvt Ltd effective July 01, 2006 pursuant to the approval received from the members. 4. Consequent to the revised Accounting Standard 15 on Employee Benefits becoming effective from April 01, 2006, additional liability for services of the employees up to the previous year has been adjusted to the opening balance of General Reserve and Deferred Tax by Rs 69.30 million and Rs 35.20 million respectively. 5. The Air Solutions factory in Naroda, Ahmedabad had a labor strike resulting in temporary suspension of operation's for 1 month in May 2006. The operations have commenced and normalcy is being restored. 6. The above results have been approved by the Audit Committee and the Board of Directors at their meetings held on July 31, 2006.

200609 Quarter 2 Expenditure Includes (Increase)/Decrease in Stock in Trade Rs (29.40) million Consumption of Raw Materials / Components Rs 1215.70 million Staff Cost Rs 131.50 million Other Expenditure Rs 133.70 million Tax Includes Provision for Current Tax Rs 73.00 million Deferred Tax Rs 1.70 million Fringe Benefit Tax Rs 1.60 million Extraordinary Items indicates Profit on sale of climate control business EPS is Basic & Diluted Status of Investor Complaints for the quarter ended September 30, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter Nil Complaints disposed off during the quarter Nil Complaints unresolved at the end of the quarter Nil 1. Provision for current taxation, deferred taxation and fringe benefit tax of Rs 122.90 million for the six months ended September 30, 2006, has been made on an estimated basis. The actual tax liability of the Company will be determined on the basis of taxable income of the Company for the year April 01, 2006 to March 31, 2007. 2. While the drilling solutions business has been sold to Atlas Copco (India) Ltd (ACIL), the Company, pursuant to a Supply agreement, continues to manufacture drilling solutions products for ACIL and, its customers. The revenue and results arising from such operations are included in the Construction Technologies & Compact segment revenue and results as discontinued operations. 3. Climate Control business has been sold to Thermo King India Private Limited effective July 01, 2006 pursuant to the approval received from the members. 4. Figures for the previous period / year have been recast as necessary to confirm to current period / year classification. 5. The above results have been approved by the Audit Committee and the Board of Directors at their meetings held on October 19, 2006.

KEY RATIOS

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Debt-Equity Ratio	0.00	0.00	0.00
Long Term Debt-Equity Ratio	0.00	0.00	0.00
Current Ratio	3.47	3.55	3.20
TURNOVER RATIOS
Fixed Assets	5.59	5.38	5.76
Inventory	5.64	5.18	5.10
Debtors	3.76	3.04	3.20
Interest Cover Ratio	35.59	18.48	54.75
Operating Profit Margin(%)	11.15	8.48	15.12
Profit Before Interest And Tax Margin(%)	9.94	7.10	14.00
Cash Profit Margin(%)	7.17	5.90	10.30
Adjusted Net Profit Margin(%)	5.97	4.52	9.19
Return On Capital Employed(%)	12.44	9.37	22.71
Return On Net Worth(%)	7.47	5.96	14.90

STOCK PRICES

Face Value	Rs.10.00
High	Rs.284.50
Low	Rs.279.50

LOCAL AGENCY FURTHER INFORMATION

MANAGEMENT DISCUSSION AND ANALYSIS 

  Industry Structure and Development:

 The industry witnessed continued buoyancy during the year under review particularly in construction industry and manufacturing sector. This augurs well for the long-term growth of the Company. 

Segment-wise operational performance:

 The operations of the Company are segmented into three business groups - Air Solutions, Construction

Technologies & Compact Vehicle Technologies and Climate Control. 

 The Air Solutions business grew by 12% in the period under review, aided by strong performance in domestic sales. The Company's progress in implementation of 'Solutionizing' strategy, through which the Company delivers total solutions and savings to the customer in the area of compressed air systems, continues to be strong. 

 In the case of Construction Technologies & Compact Vehicle Technologies, the sales of road construction equipment have improved during the year under review resulting in increased sales. This market is expected to remain stable in the current financial year also with continued focus of the Government in new road construction under various road development programs. 

 The Climate Control business which supplies refrigeration equipment to super-markets and large stores does not contribute significantly to the Company's net turnover. 

 The profit before tax and exceptional items has improved to Rs. 506 million as against Rs. 323 million in the previous year. 

Outlook:  

The outlook for the two major areas of business of the Company - Air Solutions and Construction Technologies & Compact Vehicle Technologies remains positive. Air Solutions business growth is expected to continue primarily due to capacity expansions in the manufacturing sector, and recurring revenue from equipment already supplied to customers. Launch of new products will also enable sustaining the momentum of growth. 

 Construction Technologies & Compact Vehicle Technologies is likely to perform better with the continued emphasis by Government of India on building infrastructure across the country through upgradation of national highway projects and the building of secondary road networks. 

Threat and concerns:  

 The markets for all the Company's products continue to be extremely competitive. Material cost escalations on metals and other inputs continue to have an impact on the profitability. With continued focus on deployment of lean management techniques resulting in operational efficiency and improvement in productivity, the Company should be able to maintain its position as the preferred choice of customers. 

Internal control systems and their adequacy: 

The Company has effective and adequate internal control systems, which ensure reliable financial reporting, safeguarding of assets and adherence to management policies. 

 As a subsidiary of an American publicly listed company, the Company complies with the requirements of the Sarbanes Oxley Act of 2002. A local team of managers check the adequacy of internal controls and its implementation once in each quarter. 

 The internal audit team regularly reports to the Management and the Audit Committee on their findings and also on the steps to be taken with regard to deviations, if any. 

Risk Management 

 The Company's internal control process covers, amongst others, process for identification, assessment and mitigation of various risks, including operational, product and financial risks. Such risks are reviewed and discussed at regular management review meetings, where in members of the senior management are present. The risks that are continuously monitored include, but are not limited to, product, price, cost trends, competition, financing, technical changes, product liability, warranty and insurance risks. 

 Normal foreseeable risks to the Company's assets are adequately covered by comprehensive insurance. Risk assessments, inspections and safety audits are conducted regularly. 

 DELISTING PROPOSAL FROM PARENT COMPANY 

 The Company received a Statement from Ingersoll - Rand Company Limited ('parent company') expressing its intention to purchase, directly or through one or more of its subsidiaries, the outstanding 26% equity shares of the Company held by the public and delist the shares of the Company from the stock exchanges in India under the Securities and Exchange Board of India (Delisting of Securities) Guidelines, 2003 ('Guidelines') and requested the Company to convene an Extraordinary General Meeting of the members to consider a resolution for delisting the shares. Accordingly, the extraordinary general meeting was held on September 23, 2005 at which the members approved the delisting proposal of the parent company. The parent company made the public announcement as required under the Guidelines on February 18, 2006 announcing the dates during which the terminals would be open for bidding by the shareholders via the reverse book building platform. A total of 933,345 shares were validly tendered at or below the price of Rs. 450 per share (Exit Price) as part of the book building process. Since the shares tendered at or below the exit price would not have resulted in the public shareholding in the Company to fall below the level for continuous listing as specified by the Guidelines, the offer was considered to have failed and the Company continues to remain listed on the stock exchanges at Mumbai and Ahmedabad and on the National Stock Exchange of India Limited. 

SALE OF CLIMATE CONTROL BUSINESS 

 The Climate Control business which supplies refrigeration equipment to super-markets and large stores has a limited range of products and does not contribute significantly to the Company's net turnover. This business is not expected to contribute significantly in the future also and has little synergy with the Company's other product offerings. The Directors have, subject to the approval, agreed to sell, transfer, assign or dispose of this business to Thermo King India Private Limited, a wholly owned subsidiary of Ingersoll - Rand Company Limited, the ultimate parent company of the Company. The sale consideration has been determined at Rs. 33.4 million. A resolution seeking the approval for the sale of the climate control business has been set out at item no. 7 of the notice. 

Fixed Assets:

Land-Leasehold

Land Freehold

Buildings

Plant and Machinery

Computer Software

Electrical Installations

Furniture Fixture and Equipment

Vehicles

Small Tools

Company Description:

Ingersoll-Rand (India) Limited. The Company's principal activities are manufacturing and marketing of construction and mining equipment. The products include air and gas compressors, rock and waterwell drilling equipment and accessories, feeder crushers, power driven pumps and loaders, vibratory compactors and pavers. The Plants are located in Bangalore and Ahmedabad. Air and gas compressors accounted for 39% of fiscal 2002 revenues; spare parts and components, 23%; vibratory compactors, 17%; rock drilling equipment, 16%; trading items, 4% and other, 1%.

History :

Ingersoll Rand (India), the Indian subsidiary of Ingersoll-Rand Company, US have presence in three business segments i.e Air Solutions, Infrastructure and Climate Control. The US parent holds 74% of the equity. Established in 1921 at Calcutta, Ingersoll Rand is the oldest Indo-American JV in India. , It became a public limited company in 1977.  

 A trading entity until 1965, get into manufacturing by start producing small garage-type air compressors from Naroda near Ahmedabad.  

 Air Solutions Business of ingersoll rand deals in entire compressed air systems. After commencing manufacturing activity in 1965 from the Naroda plant the company has set up its second plant at Peenya near Bangalore in 1978. The third plant came at Naroda itself in 1994 to manufacture process compressors and chemical process pumps. 

 The infrastruture business deals in road building, construction and mining equipments like Rock & Waterwell drilling equipments, Feeder Crushers, Loaders and Vibratory Compacters.  

 The climate control business group focus on supplying freezers and chillers largely to supermarkets in urban centres of India. 

 Over the past three decades, the company has introduced several engineering products into the core sectors. The present range includes air and gas compressors, rock and waterwell drilling equipment, feeder rushers, power-driven pumps and vibratory compactors. It is also one of the largest exporters of engineering goods from India. In fact, for certain products such as small air compressors, it is the sole manufacturing source within Ingersoll-Rand worldwide. The company has received ISO 9001 accreditation for its construction and mining equipment plant at Bangalore. 

 In Apr.'2000, the company sold its gas compressor business to Dresser-Rand India Private Limited. Consequent to the sale of Ingersoll Dresser Pumps (IDP) , by the parent company, to Flowserve Incorporated USA, the Company discontinued manufacture of pumps in India. 

 In June 2000, IR acquired Hussmann International, Inc., the world's leading manufacturer of food-store equipment and commercial refrigeration products. Hussmann joins Thermo King in the Climate Control sector of the company, expanding IR's market in the 'cold chain' to the distribution channel. IR has been continuously listed on the New York Stock Exchange (NYSE) since 1906, making it among the top 10 companies achieving such a distinction. 

 IR has expanded the Installed capacity of Vibratory Compactors by 100(Nos) during the year 2003 and also increased the installed capacity of Pavers by 5(Nos).Consequent of this expansion, the total capacity of Vibratory Compactors and Pavers have been increased to 600(Nos) and 20(Nos) respectively.

Company is in trade terms with:

Aero Engineers

Dhanman Precicast Private Limited

Ashi Craft Private Limited

Arun Machine Components

Grand Polycoats Company Private Limited

Chamunda Engineering Works

Lotus Powergear Private Limited

Shreenathji Fabricators Private Limited

Precision Autowares Limited

Cimotec Hydro Machines Private Limited

Eskay Industries

Kinamatic Transmission Private Limited

Aditya Weld Aid Private Limited

Airpower Engg. Co. Private Limited

Ajax Engineering Private Lmited

Ajax Fiori Engineering (I) Limited

Electro Trade

Engee Engineering Industries

Engineered Polymers (I) Private Limited

Aries Tanks and Vessels (Private ) Limited

Associated Commercial Enterprises

Excel Controlinkage Private Limited

Harita Seating Systems Limited

Integrated Electric Co Private Limited

Kombyne Transpak Private Limited

Krishna Fabrication Private Limited

Ryder Equipments Private Limited

About them:

It was in 1921 that Ingersoll-Rand (India) Private Limited was formed, headquartered in Calcutta with a branch office in Bombay. In 1958, the company established a branch office in Ahmedabad. Seven years later, buoyed by the country's rapid industrialization after independence, Ingersoll-Rand India established its first manufacturing facility in 1965 at Naroda, Ahmedabad. The company went public in 1977, and the following year it established its second manufacturing facility, at Bangalore. Ingersoll-Rand (India) Limited (or I-R as it is popularly known in the marketplace) is now a diversified industrial enterprise serving its customers in four markets:

Infrastructure Development

Industrial Productivity

Climate Control

Security and Safety

I-R's new 'Complete Solutions' Approach

Worldwide, Ingersoll-Rand Corporation is witnessing a major shift in perspective. Simply put, it is a move away from the earlier product-centric to a solutions-centric approach. What this means is that I-R no longer thinks of itself as an engineering company offering world-class products, but as a company providing the customer with solutions which are based on these products and which go well beyond them. What the company calls an 'Entire Solutions' approach.

Winds of change are blowing through I-R India, bringing about changes in everything- from service offerings to internal processes, skills, competencies and the very mind-set of its people.

Organization

To serve its identified markets, I-R India is organized into the following groups:

Infrastructure Development Sector providing solutions for Construction, Road Building, Mining and Drilling applications.

Industrial Productivity Sector providing various products and services related to air solutions for the commercial and industrial markets.

Climate Control which forms the 'transport temperature control business' of I-R. This sector provides equipment and services to manage a controlled temperature environment for food and other perishables.

Security and Safety which offers products and services to enhance security and safety for residential, commercial and institutional buildings.

A network of 22 company offices & more than 80 distributors offering I-R services and products covers every region across the country.

PRODUCTS

Infrastructure Development

Speciality Products :

Mining

Rock drills - crawler mounted pneumatic & hydraulic drills

Rotary drills - crawler rotary blast hole drills

DHD - down-the-hole hammer & bits.

Water wells

Truck mounted drills

Truck/Skid mounted high-pressure air compressors

Well rehabilitation units

Test pump units

Road Development :

Crawler drills - pneumatic & hydraulic drills

Hydraulic breakers - primary & secondary rock breakers

Vibratory soil compactors - Axle / Drum / Pad foot versions

Vibratory tandem asphalt compactors - mini & highway versions

Asphalt pavers - sensor pavers with combination screed

Pneumatic tyre rollers

Portable Power :

Portable air compressors - air power packs for jack hammers, pavement breakers, pneumatic drills, abrasive blasting, optic fibre cable laying, high pressure waterwell drills.

Bobcat :

Bobcat skid-steer loaders with over 25 attachments

Bobcat mini excavators

Industrial Productivity

Reciprocating compressors,

Small range - 2 to 1000cfm / 50psig to 5000psig

Medium & large range - 50 to 1000cfm / 20 to 650psig

Centrifugal compressors - 800 to 10000cfm.

What's new at I-R India?

New Value-added Service: Equipment Rental

I-R offers a very attractive rental option for all its products throughout the country. (For details about the products you can rent, click…)

HR Function - A Strategic Partner for Change

A revitalised HR Function has undertaken a comprehensive programme that aims at discovering, developing and channelling the creativity of I-R employees, by addressing both external and internal motivating factors. Emphasis is on determining the Corporation's future manpower needs, assessing the aptitude and potential of individual employees through a detailed process of dialogue, review, and 360-degree feedback, and developing strategic employee competencies.

The company believes in creating equal opportunity for all employees to develop, perform and distinguish themselves by contributing to organisational objectives.

The Company's endeavour is to attract and retain talent and be a 'Preferred Employer' through its 'people strategy'.

Financials

I-R India has always rendered consistent and impressive financial results. Over the past five years, the company has delivered a compounded annual growth rate of 8.8% in revenues and 10.7% in profits after tax.

Exports

I-R India offers quality and cost-effective engineering services and new product development to the Drilling Solutions, Road Machinery, and Tools and Hoists divisions in the USA with the help of selected Indian software companies. The strategy is to leverage the India advantage for IR worldwide by establishing the Engineering Competency Center as a part of I-R India.

Ingersoll-Rand (India) is among the country's largest exporters of engineered goods. Annual exports for 1999-2000 stood at INR.628 million. Air compressors account for the bulk of export earnings.

INDIAN SNAPSHOT

Over 90,000 air compressors manufactured annually.

Over 83,000 air compressors exported worldwide.

The Naroda manufacturing facility if I-R India caters to the major part of the global demand for air-cooled reciprocating air compressors (T 30).

The Metrology Lab is one of the very few sophisticated labs in India with facilities to conduct tests as per ISI / BSI standards.

MILESTONES

1921

I-R (India) Private Limited, established in Calcutta as a trading company, becomes one of the first Indo-American ventures in India.

1965

I-R India's first manufacturing plant for reciprocating compressors set up at Naroda, Gujarat in response to growing industrialisation and demand for engineered products in India. 800 compressors manufactured the first year.

1968

First Indian Managing Director - Mr. J. K. Setna – appointed

1977

I-R India goes public. Foreign equity diluted to 74%. Currently listed on the Mumbai, Ahmedabad and the National Stock Exchanges.

1978

Second manufacturing plant commissioned at Bangalore for the production of construction, mining and water well drilling equipment.

1993

Bangalore plant commences production of soil & asphalt compactors.

1994

1994 Naroda plant expanded to manufacture gas compressors.

1995

Further expansion at Naroda to meet the growing demand for castings.

1996

Bangalore plant expanded for in-house fabrication facility

1997

New road building products like pneumatic tyre rollers added to Bangalore product line

1998

I-R India corners largest market share in vibratory compactors ahead of L&T, Greaves Bomag

& Escorts. Daljit Mirchandani appointed Managing Director.

1999

Company's operations re-organised. Business units structured around products replaced by groups/divisions with a clear market focus.

2000

Process Gas compressor division sold in keeping with Ingersoll-Rand Company's worldwide decision. New high-pressure portable compressor launched for water-well drilling. Blaw-Knox asphalt sensor pavers with combination screed, and Cable Layair portable compressors, built at the Bangalore plant launched at EXCON 2000 at Bangalore.

2001

Blaw-Knox asphalt pavers, Cable Layair portable compressors, built at Bangalore plant launched at EXCON 2000 at Bangalore. Launch of indigenously built Hydraulic drifter drills announced for 2nd quarter

I-R India Fast Facts

Revenues 2000: 4134 M INR

Employees: around 900

Chairman & President : Daljit Mirchandani

Year Established: 1921

Manufacturing Facilities: Peenya, Bangalore

Environment Management System: Initiative launched to get certification under ISO 14001

Quality System: Both manufacturing facilities ISO 9001certified.

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.43.47
UK Pound	1	Rs.85.36
Euro	1	Rs.57.89

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	8
--CREDIT LINES	1~10	8
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		72

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