MIRA
INFORM REPORT
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Report Date : |
24.04.2007 |
IDENTIFICATION DETAILS
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Name : |
TIL LIMITED |
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Registered Office : |
1, |
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Country: |
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Financial (as on): |
31.03.2006 |
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Date of Incorporation : |
24.10.1980 |
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Com. Reg. No: |
21-41725 |
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Legal Form : |
Public limited liability company The companys shares are listed on stock Exchanges |
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Line of Business : |
Manufacturing of diesel-hydraulic / electric cranes / carrier units (trucks), diesel generating sets, forklift, extra long multi axle truck and self-propelled rubber tyre container which are applied in various industries such as cement, chemical plants, construction, fertilizer, irrigation, railways, roads, jute mills, steel plants, oil & petrochemicals, thermal power, inland container depots, forestry, hospitals, engineering plants, etc |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
RATING
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STATUS |
PROPOSED
CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable
to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 3006800 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is an old established company having satisfactory track. Directors are reported as experienced, respectable and resourceful professionals. Their trade relations are reported as fair. Payments are reported as slow but correct. The company can be considered normal for business dealings
at usual trade terms & conditions. |
LOCATIONS
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Registered Office : |
1, |
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Tel. No.: |
91-33-2469-3732/36 (5 Lines) |
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Fax No.: |
91-33-2469-2143 / 2469-3731 |
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E-Mail : |
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Website : |
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Regional Offices
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Post Box No. 74 302 Ansal Bhawan, Kasturba Gandhi Marg Tel : 91-11-2331 1607/8046/8863/9248 Fax : 91-11-2331 3263 E-mail: deloffice@tilindia.com Chennai - 600034, Tel : 91-44-2827 6103/0723/7518/0729 Fax : 91-44-2827 9681 E-mail: tilchn@vsnl.net 307 Centre Point, Mumbai - 400 059, Tel : 91-22-56430192/3/4/5 Fax : 91-22-56430904 E-mail: tilvashi@vsnl.net |
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International Marketing Sector: |
302, Ansal Bhawan, Kasturba Gandhi Marg, |
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Tel. No |
91-11-23311607 /8046 / 8843 / 9248 |
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Fax No |
91-11-23313263 |
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Corporate Office : |
1, |
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Tel. No.: |
91-33-24693732-36 / 24696497 / 24696499 |
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Fax No.: |
91-33-24693731 / 24692143 |
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E-Mail : |
til.gen@til.sprintrpg.ems.vsnl.net.in |
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Web Site : |
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Factory 1 : |
517, |
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Tel. No.: |
91-33-25531352 / 1393 / 1882 / 1982 / 2318 / 2325 |
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Fax No.: |
91-33-25532546 / 5971 |
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E-Mail : |
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Factory 2 : |
Plot No. 11, Site No. 4, Industrial Area, Sahibabad- 201
010, District |
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Tel. No.: |
91-575-2770790-93 /2770593 / 2770847 |
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Fax No.: |
91-575-2770365 |
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E-Mail : |
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Factory 3 : |
RS No. 33/5, |
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Tel. No.: |
91-413-2611409 / 2611172 |
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Fax No.: |
91-413-2611124 |
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Factory 4: |
Kamarhatty (W.B.) |
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Address: |
517, |
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Factory 5: |
Sahibabad (U.P.) |
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Address: |
Plot No.11, Site-4, Sahibabad Industrial Area, Ghazibad 201 010 |
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Factory 6 : |
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Address: |
RS No. 33/5, |
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Overseas Branches: |
16, Mya Mar Thaketa Industrial Zone Tel: +951 547 310-13 / +951 547 140-42 Fax: +951 547 307/ 309 mttcomdy@mptmail.net.mm No. 30, (Between 68th/ Chan Aye Tha Zan Tsp, Tel: +952 22083 Fax: +952 39260 TRACTORS Ward 20, Jawalkhel(behind Wellham college) Tel: +9715 550380 Fax:+9715 550380 E-mail:spnpl@mos.com.np Pelhkil House, Tel No: (97525) 2386 Fax No: (97525) 2786 GA-1, 713, Ganeswar (Behind Valley Fuel Centre), (9771) 412127 (9771) 412127 |
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Chandigarh Seb Mark Project |
DIRECTORS
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Name : |
Mr A Mazumdar |
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Designation : |
Chairman |
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Name : |
Mr Sumit Mazumda |
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Designation : |
Managing Director |
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Name : |
Mr R.L. Gagger |
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Designation : |
Solicitor & Advocate |
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Name : |
Mr. U.V. Rao |
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Designation : |
Former Chief Executive & Managing Director – L & T Ltd. |
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Name : |
Mr. S.M. Datta |
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Designation : |
Chairman, Castrol India Ltd |
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Name : |
Mr. K.S. De |
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Designation : |
Nominee of Life Insurance Corporation of |
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Other Personnel:
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Name : |
Ms. Ritu Mehrotra |
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Designation : |
Company Secretary |
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Name: |
Mr. Debashis Nag |
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Designation : |
Company Secretary |
KEY EXECUTIVES
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Name |
Mr. A. Mazumdar |
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Designation |
Chairman |
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Age |
66 years |
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Qualification |
B.Sc. Engg. ( |
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Experience |
43 years |
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Date of Joining |
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Previous Employment |
Standard Vacuum Oil Company Limited |
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Name |
Mr. Summit Mazumdar |
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Designation |
Managing Director |
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Age |
53 years |
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Qualification |
MBA ( |
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Experience |
29 years |
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Date of Joining |
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Previous Employment |
JBA Printing Inks Limited |
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Other personnel: |
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Mrs. P. Muzamdar |
MAJOR SHAREHOLDERS
|
A. Promoter’s Holding |
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1. Promoters |
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-Indian Promoters |
2109424 |
21.68 |
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- Foreign Promoters |
1930828 |
19.84 |
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2. Persons acting in Concert |
NIL |
- |
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Sub- Total |
4040252 |
41.52 |
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B. Non Promoters
holding |
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1. Institutional Investors |
-- |
-- |
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2. Mutual Funds and UTI |
22986 |
0.24 |
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3. Banks, Financial Institutions, Insurance Companies, ( Cental/ State Govt. Institutions/ Non-Government Institutions |
3411156 |
35.06 |
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4. FIIs |
-- |
-- |
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Sub –Total |
3434142 |
35.30 |
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C. Others |
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1. Private Corporate Bodies |
174182 |
1.79 |
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2. Indian Public |
1997225 |
20.53 |
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3. NRIs/ OCBs |
67545 |
0.69 |
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4. Any Other i. Foreign National ii. Clearing Member / Clearing Corporation |
9103 7681 |
0.09 0.08 |
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Sub-Total |
2255736 |
23.18 |
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GRAND TOTAL |
9730130 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of diesel-hydraulic / electric cranes / carrier
units (trucks), diesel generating sets, forklift, extra long multi axle truck
and self-propelled rubber tyre container which are applied in various
industries such as cement, chemical plants, construction, fertilizer,
irrigation, railways, roads, jute mills, steel plants, oil &
petrochemicals, thermal power, inland container depots, forestry, hospitals,
engineering plants, etc |
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Products : |
Mobile cranes Frontlifts Container Handlers Warehouse Trucks Articulated lorry loaders, Aerial platforms, Heavy duty crawler cranes, Safety systems for equipment, Earthmoving equipments, power systems and engines, Cranes (ITC Code – 8426), D G Sets (ITC Code –8502), Forklifts (ITC Code – 8427) |
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Brand Names : |
Grove Worldwide, |
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BOSS Group, |
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National |
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Grove |
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Exports to : |
(accredited with ISO 9001 Certification) |
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Imports from : |
(accredited with ISO 9001 Certification) |
PRODUCTION STATUS
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PARTICULARS |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
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Diesel-Hydraulic/Electric Cranes/Carrier Units (Trucks) |
Nos. |
1414 |
220 |
67 |
|
Diesel Generating Sets |
Nos. |
500 |
250 |
184 |
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Forklift |
Nos. |
750 |
100 |
23 |
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Extra Long Multi Axle Truck |
Nos. |
NA |
5 |
-- |
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Self-Propelled Rubber Tyred Container |
Nos. |
NA |
30 |
27 |
GENERAL INFORMATION
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Customer Service
Centres: |
Amritsar, Asansol, Barbil, Baroda, Bhiwadi, Bhubaneshwar,
Chandigarh, Damanjodi, Delhi, Guwahati, Jaipur, Jamshedpur, Jamnagar, Jharsuguda,
Karnal, Kanpur, Kochi, Korba, Noamundi, Ludhiana, Pondicherry, Ramakundam,
Ramgarh, Siliguri, Singrauli, Talcher, Tinsukia, Udaipur, Dhanbad, Gagal
Project, Nagpur, Neyveli, Pathankot, Vizag, Bhutan and West Bokaro |
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No. of Employees : |
3,000 |
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Bankers : |
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Name : |
Bank of |
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Address: |
Kolkata, West |
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Name : |
Standard Chartered Grindlays Bank Limited |
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Address: |
Kolkata, West |
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Name : |
State Bank of |
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Address: |
Kolkata, West |
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Name : |
Punjab & Sind Bank |
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Address: |
Kolkata, West |
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Name : |
State Bank of Bikaner & Jaipur |
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Address: |
Kolkata, West |
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Name : |
Union Bank of |
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Address: |
Kolkata, West |
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Name : |
Canara Bank |
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Address: |
Kolkata, West |
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Facilities : |
LOAN FUNDS As
at As at
31.03.2005 31.03.2004
Rs. ‘000 Rs. ‘000 SECURED LOANS Cash/ Export Credit
/ Working CapitalDemand Loans
/ Foreign Currency
Non-Resident Borrowings From Banks 519.534 670.495 [Secured by hypothecation of stocks, books debts and all movable properties of the Company (except items of capital nature such as Plant and Machinery ) both present and future by way of first charge ranking paripassu under a joint letter of Hypothecation amongst the Company’s bankers and by second charge on the movable properties( items of capital nature such as Plant and Machinery) and immovable properties of the Company.] Term Loans From Banks 401.280 141.667 (Due within one
year 14,440) [285,000 secured by equitqble mortgage on the Company’s immo- vable properties and by first charge on all movableproperties of the Company, bothpresent and future and subject to priorcharges created in favour of Banks for Cash Credit facilities 16,280 is secured by specific machin- ery. Balance 100,000 is secured by first charge on the current assets of the Company on pari passu basis Total 920.814 812.162 LOAN FUNDS As
at As at
31.03.2005 31.03.2004
Rs.
‘000 Rs. ‘000 UNSECURED LOANS Fixed Deposits (Due within one year 2,763) 12.539 12.807 Short Term Loans From Banks : Commercial Paper 200.000 10.000 Other Loans _ 50.000
From Others : Inter- Corporate Deposits _ 26.500 Other Loans From Banks : (Due within one year 2,954) 6.700 4.939 From Others : 12.5% Unsecured Non Convertible 25.000 32.500 Debentures (NCD) ( Reedemable at the end of three years from the date of allotment , i.e., The Company has an option to redeem theNCD’S earlier
Total 244.239 226.746 |
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Banking Relations
: |
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Auditors : |
Price Waterhouse |
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Associates/Subsidiaries : |
Subsidiaries: |
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Name: |
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Address: |
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Tel. No |
00951-541 717 / 541 285 |
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Fax No |
00951-548 843 |
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Names: |
- Tractors Nepal Private Limited, |
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- TIL Overseas Pte Limited, |
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New company in |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10,000,000 |
Equity Shares |
Rs.10/-each |
Rs.100.000 millions |
|
10,000,000 |
Redeemable Cumulative Preference Shares |
Rs. 10/-each |
Rs. 100.000Millions |
|
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TOTAL: |
|
Rs. 200.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
9,730,130 |
Equity Shares |
Rs.10/-each |
Rs.97.301 millions |
|
4,000,461 |
7.5% Redeemable Cumulative Preference Shares |
Rs.10/-each |
Rs. 40.005 Millions |
|
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TOTAL |
|
Rs. 137.306 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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|
SHAREHOLDERS FUNDS |
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1] Share Capital |
122.200 |
137.306 |
137.306 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
629.500 |
547.768 |
500.270 |
|
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
751.700 |
685.074 |
637.576 |
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|
LOAN FUNDS |
|
|
|
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1] Secured Loans |
1227.600 |
920.814 |
812.162 |
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2] Unsecured Loans |
13.700 |
244.239 |
226.746 |
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TOTAL BORROWING |
1241.300 |
1165.053 |
1038.908 |
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DEFERRED TAX LIABILITIES |
0.000 |
42.637 |
39.537 |
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TOTAL |
1993.000 |
1892.764 |
1716.021 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
784.400 |
767.152 |
515.642 |
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Capital work-in-progress |
1.000 |
0.633 |
74.054 |
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INVESTMENT |
44.900 |
54.042 |
54,042 |
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DEFERREX TAX ASSETS |
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
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Inventories |
861.100
|
647.330
|
514.246 |
|
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Sundry Debtors |
1362.300
|
1061.340
|
981.667 |
|
|
Cash & Bank Balances |
8.900
|
21.329
|
53.137 |
|
|
Other Current Assets |
0.000
|
100.849
|
88.451 |
|
|
Loans & Advances |
282.200
|
89.862
|
43.129 |
|
Total
Current Assets |
2514.500
|
1920.710
|
1680.630 |
|
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Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
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|
Current Liabilities |
1176.900
|
762.036
|
563.510 |
|
|
Provisions |
174.900
|
87.737
|
46.717 |
|
Total
Current Liabilities |
1351.800
|
849.773
|
610.227 |
|
|
Net Current Assets |
1162.700
|
1070.937
|
1070.403 |
|
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|
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|
MISCELLANEOUS EXPENSES |
0.000 |
-- |
1.880 |
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|
|
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|
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TOTAL |
1993.000 |
1892.764 |
1716.021 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
Sales Turnover |
4544.000 |
3375.209 |
2870.260 |
|
|
Other Income |
272.400 |
0.000 |
0.000 |
|
|
Stock Adjustment |
26.100 |
0.000 |
0.000 |
|
|
Total Income |
4842.500 |
3375.209 |
2870.260 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
1884.400 |
100.372 |
83.872 |
|
|
Provision for Taxation |
69.900 |
32.600 |
28.100 |
|
|
Profit/(Loss) After Tax |
118.500 |
67.772 |
55.772 |
|
|
|
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Earnings in Foreign Currency : |
|
|
|
|
|
|
Other Earnings |
0.000 |
98.210 |
105.489 |
|
Total Earnings |
0.000 |
98.210 |
105.489 |
|
|
|
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|
|
|
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Imports : |
|
|
|
|
|
|
Others |
0.000 |
233.191 |
390.976 |
|
Total Imports |
0.000 |
233.191 |
390.976 |
|
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|
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Expenditures : |
|
|
|
|
|
|
Raw
Materials |
3514.500
|
0.000 |
0.000 |
|
|
Excise
Duty |
183.000
|
0.000 |
0.000 |
|
|
Power
& Fuel Cost |
15..200
|
0.000 |
0.000 |
|
|
Other
Manufacturing Expenses |
59.400
|
0.000 |
0.000 |
|
|
Employee
Cost |
257.600
|
0.000 |
0.000 |
|
|
Selling
and Administration Expenses |
228.900
|
0.000 |
0.000 |
|
|
Miscellaneous
Expenses |
133.400
|
0.000 |
0.000 |
|
|
Other Expenditure |
0.000 |
81.237 |
49.773 |
|
Total Expenditure |
4392.000 |
81.237 |
49.773 |
|
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
30.06.2006 |
30.09.2006 |
31.12.2006 |
|
Type |
1st
Qtr |
2nd
Qtr |
3rd
Qtr |
|
Sales
Turnover |
1083.400 |
1421.100 |
1490.600 |
|
Other
Income |
05.500 |
11.800 |
17.500 |
|
Total
Income |
1088.900 |
1432.900 |
1508.100 |
|
Total
Expenditure |
991.000 |
1313.600 |
1353.800 |
|
Operating
Profit |
97.900 |
119.300 |
154.300 |
|
Interest |
36.500 |
36.700 |
35.900 |
|
Gross
Profit |
61.400 |
82.600 |
118.400 |
|
Depreciation |
29.100 |
27.400 |
27.900 |
|
Tax |
16.700 |
24.700 |
33.700 |
|
Reported
PAT |
21.600 |
32.700 |
57.600 |
200606 Expenditure includes (Increase)/Decrease in stock in
Trade Rs (195.10) million Consumption of Raw Material Rs 1006.30 million Staff
Cost Rs 83.30 million Other expenditure Rs 96.50 million Tax includes Provision
for Current Tax Rs 15.20 million Deferred Tax charge/(Credit) Rs (6.00)million
Fringe Benefit tax Rs 1.50 million Depreciation is including Amortisation EPS
is Basic & Diluted Status of Investors Complaints for the quarter ended
June 30, 2006 Complaints pending at the beginning of the quarter Nil Complaints
received during the quarter 03 Complaints disposed off during the quarter 03
Complaints unresolved at the end of the quarter Nil 1. The above results for
three months ended
200609: EPS is Basic & Diluted Status of Investors
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. The above results for three months ended
200612: 1.The above results for the nine months and the
quarter ended 31 st December, 2006 have bean subjected to a 'Limited Review' by
the statutory auditors in terms of the Listing Agreements entered with the
Stock Exchanges, were approved at the meeting of Board of Directors held on
24th January, 2007. 2. Consumption of Raw Materials is inclusive of purchase of
goods. spares etc. 3. The company received nil investor complaint during the
quarter. There were no investor complaints pending on
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity
Ratio |
1.89 |
1.93 |
2.06 |
|
Long
Term Debt-Equity Ratio |
0.75 |
0.56 |
0.45 |
|
Current
Ratio |
1.20 |
1.16 |
1.18 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
4.08 |
3.59 |
3.99 |
|
Inventory |
6.02 |
5.53 |
5.27 |
|
Debtors |
3.75 |
3.15 |
3.05 |
|
Interest
Cover Ratio |
1.96 |
1.50 |
1.04 |
|
Operating
Profit Margin(%) |
9.87 |
11.94 |
10.28 |
|
Profit
Before Interest And Tax Margin(%) |
7.24 |
9.42 |
8.46 |
|
Cash
Profit Margin(%) |
4.70 |
4.64 |
1.96 |
|
Adjusted
Net Profit Margin(%) |
2.07 |
2.11 |
0.14 |
|
Return
On Capital Employed(%) |
17.90 |
18.10 |
15.04 |
|
Return
On Net Worth(%) |
15.20 |
12.19 |
0.43 |
STOCK PRICES
|
Face Value |
Rs.10.00 |
|
High |
Rs.191.70 |
|
Low |
Rs.187.00 |
LOCAL AGENCY FURTHER INFORMATION
History
The company was incorporated on
Subject is India's leading providers of technology intensive, application specific heavy engineering equipment for use in core infrastructure sectors including cement, chemical plants, defence, construction, engineering plants, fertiliser, hospitals, forestry, inland container depots, irrigation, etc.
TIL
(TILL) was promoted by a group of Scotsmen led by R T Wilson in 1944, as a
dealer of Caterpillar Tractor Company, US, for their earthmoving equipment and
spare parts. In Nov.'55, it became a public limited company by the name Tractor
The Company's business is organized into three major segments i.e Material
Handling,
Construction
Equipment and Power Systems etc.
In 1984, as a part of the diversification, the company acquired through merger,
a unit
manufacturing
process equipment for supply to the chemical industry. TILL manufactures and
markets mobile cranes of 10 MT to 100 MT in diesel, electric and hydraulic
versions and also markets earthmoving equipment of Caterpillar and Hindustan
Motors, for northern and
eastern
modernisation and to augment the long-term
working capital requirements.
The company has a technical collaboration with Grove Europe,
Director Report
PERFORMANCE
Turnover including income from operations for the year under review at Rs.476.75
Crores represents an increase of 37% compared to Rs.3471.300 Millions in the
previous year. The profit before tax improved to Rs.188.500 Millions from Rs.
100.400 Millions in the previous year.
MYANMAR TRACTORS LTD.
The Wholly Owned Subsidiary Company, Myanmar Tractors Ltd., in the Union of
Myanmar, has achieved a turnover including service income of Rs.481.800
Millions (US$ 10.82 M) compared to Rs.533.200 Millions (US$ 11.78 M) in the
previous year and a profit after tax of Rs. 19.000 Millions (US$ 0.43 M)
compared to Rs. 27.500 Millions (US$ 0.61 M) in the previous year.
TIL OVERSEAS PTE. LTD.
The Wholly Owned Subsidiary Company, TIL Overseas Pte. Ltd., in
TRACTORS
The Wholly Owned Subsidiary Company, Tractors Nepal Pvt. Ltd., in
On a consolidated basis, the Company's turnover including income from
operations (together with the Subsidiary Companies) increased to Rs. 5658.800
Millions from Rs. 4303.700 Millions in the previous year and profit after tax
increased to Rs. 135.100 Millions from Rs. 95.900 Millions in the previous
year.
FINANCE
After providing Rs.70.000 Millions as Provision for Taxation, Rs.02.800 Millions
and Rs.22.200 Millions for Preference and Equity Dividend respectively,
Rs.93.500 Millions is carried forward to Balance Sheet. The Reserve &
Surplus (excluding Revaluation Reserve) of the Company increased from Rs.
459.400 Millions to Rs. 552.900Millions and the Shareholders' Fund (excluding
Revaluation Reserve) increased from Rs.596.700 Millions to Rs.675.100 Millions.
The Reports and Accounts of subsidiary companies are annexed to this Report
along with the statement pursuant to Section 212 of the Companies Act, 1956.
However, in the context of mandatory requirement to present consolidated
accounts, which provide members with a consolidated position of the Company
including its subsidiaries, at the first instance, members are being provided
with Consolidated Report and Accounts of the Company as contemplated by Section
219 of the Companies Act, 1956. Members desirous to receive full Report and
Accounts including Reports and Accounts of the subsidiaries will be provided
the same on receipt of written request from them.
FOREIGN
EXCHANGE EARNINGS AND OUTGO
1. Efforts: Efforts are on for achieving specific
market access in the
2. Earnings and Outgo: Rs. in Lakhs i) Foreign Exchange Earnings -
1367Export sales (FOB), Commission, etc. ii) Foreign Exchange outgo (includes
raw material, capital goods, components & spares, and other expenditure in
foreign currency, including dividends) a) Raw Material 2631
b) Machines (Trading items) 5262 c) Components & Spares 27 d) Capital
goods 68 e) Travelling 30 f) Technical Know-how Fees 47 g) Commission 9
h) Dividend 54 i) Others 3
The Company's business is organized into three major
Groups:
Revenue %
Material Handling Group 27Construction Equipment Group
49Power Systems Group 24
The emphasis on infrastructure development has been
continuing and this has led to a number of large sized projects coming up all
over the country in the field of power, steel, oil, coal, communication; roads
and highways. There has been greater participation by private sector companies
resulting in additional potential for business and increased order intake. The
market for Construction Equipment, Material Handing Equipment and Power Systems
promises a bright prospect. The Company is poised to consolidate its leadership
position to be in consonance with the growth of
SEGMENTWISE PERFORMANCE
MATERIAL
HANDLING GROUP
The Material Handling Group has contributed 27% of the
Company's revenue. With the increased investments in the infrastructure sector,
this Business Group has shown encouraging results with healthy order book
position and introduction and supply of new product Electric Level Luffing
Crane. Despite adverse impact on costs of raw materials, margins have been
maintained. Implementation of ERP systems and outsourcing coupled with product
updation have resulted in maintaining its market leadership.
The Group has secured a major contract for supply of mobile cranes for
upcoming Reliance Petroleum Refinery in
This Business Group has undertaken initiatives for exploring
opportunities of growing crane market in
To be able to provide to customers world-class services, major thrust is
on to secure Operation and Maintenance Contract, Annual Maintenance Contract,
major overhaul.
CONSTRUCTION EQUIPMENT GROUP
The Group accounted for 49% of Company's revenue during the year
under review. With significant increase in investment in infrastructure sector
in general and Mining activities in particular, the Group's sales registered a
growth of 47%.
In the Mining sector, Tata Steel continued to repose their
confidence on TIL by placing orders for their requirement of equipment for the
Phase III of the South Eastern Block Project at West Bokaro along with
Maintenance and Repair Contract (MARC). With increased spending by government
Coal Companies, the Company was able to secure a large order from Bharat Coking
Coal Ltd. for Dumpers.
Development of roads and highways also witnessed accelerated investment. TIL
was able to secure major orders rom Road contractors like SOMA, KMC, Punj
Llyod, Madhucon.
TIL had reached yet another milestone in its journey to become total solutions
provider when its first Rental Store was launched in 2005. The rental market in
TIL's latest service solution, 365 Days Service, is
already being viewed as a path breaking approach in product support service in
the country and has been greatly appreciated by customers and their principal.
This is expected to result in enhanced customer satisfaction and lead to
increased sales and more customer support agreements.
POWER SYSTEMS GROUP
With the power shortages continuing and new gas
connections being available in the National Capital Region (NCR) there was a
significant growth in demand for Gensets. The sales revenue grew by 48% during
the current year. TIL secured turnkey orders from the Real Estate sector and
the Manufacturing sector for 21 MW of Gas Gensets. Focus on the construction
sector resulted in significantly higher market share for TIL Diesel Gensets.
During the year, TIL built a segmented sales approach to provide tailor-made
solutions to the customers.
TIL is further being recognized for innovative customer service
solutions. A perfect testament to this is the installation of the Gas Gensets
at DLF's
The product support capabilities of the Company have been recognized by ONGC.
ONGC has entrusted TIL with the task of rehabilitation of their power packs for
the land electric drill rigs.
OPPORTUNITIES AND THREATS
The sustained month-end dollar demand amid reduced foreign funds inflows over
the last months has weakened the rupee. The economic outlook is a little
uncertain due to the rise of crude oil prices. The rise and focus on
Infrastructural development, has attracted global players in the market and
hence stiffer competition. The Company is conscious of the situation and
appropriate actions are in place to enhance market share for Caterpillar
products and products manufactured in-house, by using state of the art
technology and providing world-class after sales service.
RISKS & CONCERNS
The heavy engineering industry is raw material
intensive and is subject to price fluctuation. Any increase in price of raw
materials will have adverse impact on the margin. Further, any increase on
interest rate may adverse, affect profitability. Depreciation of the Rupee is
an added worry. High rate of mobility of talent is a common problem in most
businesses. The Company is addressing these in a structured manner.
RISK MANAGEMENT FRAMEWORK
The Company has created a Risk Management Framework to
anticipate and address risks in a comprehensive manner. A Risk Register has
been created which captures risks identified by the management. For each of the
risks, mitigation actions are specified. CEO & CFO will periodically review
the risk mitigation process and report to the Board. The emphasis is to
incorporate risk management into the culture, language and operations of the
business.
-SIGMA
TIL adopted 6-Sigma which has the power to provide an energetic new direction
and raise business success to unprecedented levels. Launched in 2002, TIL is
already witnessing growth benefits, cost savings, efficiencies and quality
improvements achieved through their 6-Sigma initiative.
TIL's 6-Sigma project, Speedier Service Support was awarded President's
Gold award among the Asia Pacific Dealers of Caterpillar. This is a testament
to the fact that 6-Sigma is the way TIL does business ; 6-Sigma is embedded in
TIL.
As Per Web Site
They are
Their product profile consists of material handling equipment, earth moving equipment, industrial generator sets and diesel engines. The product line-up represents some of the finest international brands.
Setup in 1944, their track record of over 5 decades represents on going contributions to Indian infrastructure development :-
- Introducing high-tech, state-of-the-art equipment in the Indian marketplace.
- Enhancing
- Enabling
Technology, Innovation, Leadership
The core infrastructure sectors serviced by us include:-
cement railways tea gardens
engineering plants
forestry roads ports chemical plants
construction
irrigation hospitals oil and
petrochemicals
defence mines hydel power
inland container
depots
fertilizer jute mills steel plants
thermal power
Customer Support
Known as customer support is the base of their commitment to lifetime partnership with the customer. Designed for maximum equipment uptime and worklife, TIL offers total, integrated support:
Pre Purchase Consultancy
Equipment Investment Analysis
Quick Parts Availability
On-Site Service
Engineers "On Call"
Complete equipment rebuild
Regular tailored customer training on operation and maintenance
Support
Centers in
Preventive maintenance planned through Annual Service Contract
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 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.41.29 |
|
|
1 |
Rs.82.30 |
|
Euro |
1 |
Rs.56.20 |
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 |
|