MIRA
INFORM REPORT
|
Report Date : |
22.12.2008 |
IDENTIFICATION
DETAILS
|
Name : |
CATERPILLAR INDIA
PRIVATE LIMITED |
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Registered Office : |
7th Floor,
International Tech Park, Chennai, Taramani Road, Taramani, Chennai – 600113,
Tamilnadu |
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Country : |
India |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
07.12.2000 |
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Com. Reg. No.: |
18-46255 |
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CIN No.: [Company
Identification No.] |
U29244TN2000PTC046255 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHEC02709A |
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PAN No.: [Permanent
Account No.] |
AABCC4615K |
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Legal Form : |
Private Limited
Liability Company. |
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Line of Business : |
Manufacturer,
Exporter and Distributor of Earth Moving Equipments. |
RATING &
COMMENTS
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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 20000000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
The company is a
part of Caterpillar Group. Available
information indicates high financial responsibility of the company although
it continue to incur heavy losses. Trade relations
are reported as fair. Payments are reported
as usually correct and as per commitments. The company can
be considered normal for business dealings at usual trade terms and
conditions. |
LOCATIONS
|
Registered Office : |
7th Floor,
International Tech Park, Chennai, Taramani Road, Taramani, Chennai – 600113,
Tamilnadu, India |
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E-Mail : |
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Website : |
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Corporate Office : |
3/108, Anekal
Road, Punapalli Village, Mathgondapalli, Hosur – 635 114, Karnataka |
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Tel. No.: |
91-4324-522913 |
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Factory 1 : |
Melanallathur Post,
Tiruvellore, Chinglepet District, Chennai, Tamilnadu |
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Tel. No.: |
91-4116-241085 |
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Fax No.: |
91-4116-241097 |
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Factory 2 : |
3/108, Anekal
Road, Punapalli Village, Mathgondapalli, Hosur – 635 114, Karnataka |
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Tel. No.: |
91-4324-522913 |
DIRECTORS
|
Name : |
Mr. John L
Barkhouse |
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Designation : |
Managing Director
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Address: |
Old No. 5, New
No.7, Boat Club Road, Teynampet, Chennai – 600028, Tamilnadu, India |
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Date of Birth/
Age: |
15.04.1971 |
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Date of
Appointment: |
27.03.2007 |
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Name : |
Mr. Duane E
Devorce |
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Designation : |
Managing Director
(Resigned from the Board) |
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Address : |
100/1
Ramgundanahalli, Whitefield Post, Bangalore – 66, India. |
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Date of Birth/Age : |
24.01.1950 |
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Qualification : |
MBA (Maryland
University, USA) |
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Date of Appointment : |
30.03.2005 |
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Name : |
Mr. Jack Joseph
Nichols |
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Designation : |
Director
(Resigned) |
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Address : |
7-1-50 Shioyacho,
Tarumiku, Kobe – 65508972, Japan |
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Date of Birth/Age : |
16.10.1952 |
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Date of Appointment : |
21.09.2002 |
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Name : |
Mr. R. Ram Mohan |
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Designation : |
Whole Time
Director |
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Address : |
586, 23rd
Cross, Bansankari II Stage, Bangalore, Karnataka |
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Date of Birth/Age : |
10.12.1953 |
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Qualification : |
B. Com, ACA |
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Date of Appointment : |
21.09.2002 |
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Name : |
Mr. Paul D
Blackburn |
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Designation : |
Director |
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Address : |
Homat Ambassador
# 580, 4-10-2, Minami – Azabu, Minato Ku, Tokyo 106-0047, Japan |
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Date of Birth/Age : |
27.09.1956 |
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Date of Appointment : |
31.08.2005 |
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Name : |
Mr. Richard
Patric Lavin |
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Designation : |
Director |
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Address : |
Kako House, # 15
2-6-3 Seta Setagaya-ku, Tokyo, Japan |
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Date of Birth/Age : |
16.02.1952 |
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Date of Appointment : |
31.08.2005 |
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Name : |
Mr. Albert Thomas
Brown |
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Designation : |
Managing Director
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Address: |
100/1
Ramagundannahalli, Whitefield, Bangalore –66, India |
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Date of Birth/
Age: |
29.04.1946 |
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Date of
Appointment: |
31.03.2005 |
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Name : |
Mr. S. R. Subramanian |
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Designation : |
Whole Time
Director |
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Date of Birth/
Age: |
05.10.1954 |
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Date of
Appointment: |
08.09.2004 |
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Name : |
Mr. Kevin R
Thieneman |
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Designation : |
Director |
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Address: |
30 Mount Elizabeth
Link, High Point #21-30 Singapore - 228519 |
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Date of Birth/
Age: |
15.02.1963 |
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Date of
Appointment: |
17.01.2007 |
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Name : |
Mr. Diana L
Charlton |
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Designation : |
Director |
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Address: |
Footprints M Kata
No.1 APT 202, 7th Main, 7th Cross, HAL II Stage,
Bangalore – 560088, Karnataka, India |
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Date of Birth/
Age: |
02.01.1960 |
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Date of
Appointment: |
20.11.2006 |
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Name : |
Mr. S Rengarajan |
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Designation : |
Director |
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Address: |
402, Building No.8,
Shanthi Park Apartment, Jayanagar 9th Block – 560069, Karnataka,
India |
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Date of Birth/
Age: |
11.04.1968 |
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Date of
Appointment: |
24.07.2006 |
KEY EXECUTIVES
|
Name : |
Mr. P. Srinivasan |
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Designation : |
Company Secretary |
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Address : |
81, Greams Road,
Chennai – 600 006, Tamilnadu, India |
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Date of Birth : |
27.12.1960 |
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Date of Appointment : |
01.02.2001 |
MAJOR SHAREHOLDERS
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Names of Shareholders |
No. of Shares |
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Caterpillar
Commercial S.A., Belgium |
139371750 |
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Caterpillar
Commercial LLC, USA |
2 |
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(As on 30.09.2007)
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Category
|
Percentage |
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Foreign holdings (Foreign
institutional investors ) foreign companies foreign financial institutions ,
non residents or Overseas corporate bodies or others |
100 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer, Exporter
and Distributor of Earth Moving Equipments.
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Products : |
v Off-Highway Dump Trucks v Front End Loaders v Crawler Tractor v Special Vehicles v Engines v Excavators v Agricultural Tractors v Backhoe Loaders v Paving Products v Compact Water Equipment v Wheel Loaders v Motors Graders v Trucks v Track Type Tractors
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Brand Names : |
“Caterpillar” |
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Exports : |
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Countries : |
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GENERAL
INFORMATION
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Suppliers : |
v Accurate Springs Private Limited v Automotive Ancillary Services v Automat Industries v Automative and Industrial Seals Private
Limited v Bala Industries v Creative Engineers (Madras) v Delta Mech. Engineers v EMES Industries v Empee Engineers v Empkee Engineers Private Limited v Excel Controlinkage Private Limited v Formtech Engineering Private Limited v Globe Tools v Hydrolines v Industrial Spares Manufacturing Company v Insap Engineers Private Limited v Industrial Spares Manufacturing and
Trading Company v Jupiter Industrial Works Thane v Levers India v Mathi Engineering Works v Mercury Fittings (P) Limited v Michale Raj Engineering Works v Newall Engineering Works v Perfect Gears (Chennai) Private Limited v Platinum Heat Treaters Private Limited v Prakasb Enterprises v Precision Machine and Auto Components
Private Limited v T R Engineering Enterprises v Vaishanvi Enterprises v Veetoms Industries v Sridhar Industries v Subajeyam Turners v Super Springs Private Limited v Sri Balasubramanu Electrical |
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Customers : |
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No. of Employees : |
300 |
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Bankers : |
Addison Buildings, Anna Salai, Chennai – 600002, Tamilnadu, India
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Price Waterhouse
and Company Chartered Accountants |
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Address : |
32, Khader Nawaz Khan Road, Nungambakkam, Chennai – 600006, India |
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Tel. No.: |
91-44-28291597 /
28292046 |
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Holding Company
: |
v
Caterpillar
Commercial SA, Belgium |
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Parent
Company: |
v
Caterpillar Commercial
SA, Belgium v
Caterpillar
Inc 100, N. E. Adams St.,
Peoria, IIIinois 61629, U.S.A. (309) 675-1000 |
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Associates/Subsidiaries : |
v
Caterpillar
SARL, Switzerland v
Caterpillar
Commercial LLC, USA v
Caterpillar Commercial
Private Limited v
Caterpillar
(UK) Limited, England v
Caterpillar
Australia Limited, Australia v
Caterpillar
Grenoble, France v
Shin
Caterpillar Mitsubishi Limited, Japan v
Caterpillar
Motorein GMBH & Company KG, Germany v
Caterpillar
Asia Pte Limited, Singapore v
Caterpillar
Mec. Track SRL, Italy v
Caterpillar
Mexico v
Perkins
Engine Company Limited, England v
Caterpillar
Thailand Limited, Thailand v
Caterpillar
Services Limited, USA v
Caterpillar
Xuzhou Design Centre Limited, China v
Caterpillar
Work Tools, USA v
Caterpillar
Service Limited, Japan v
Hindustan
Powerplus Limited v
Caterpillar
Commercial SA |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
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190000000 |
Equity shares |
Rs. 10/- each |
Rs.1900.000
millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
169216400 |
Equity shares |
Rs. 10/- each |
Rs.1692.164
millions |
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FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
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1] Share Capital |
1692.164 |
1393.718 |
1393.718 |
|
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1229.580 |
0.000 |
0.000 |
|
|
4] (Accumulated Losses) |
0.000 |
(233.462) |
(350.449) |
|
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NETWORTH |
2921.744 |
1160.256 |
1043.269 |
|
|
LOAN FUNDS |
|
|
|
|
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1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
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2] Unsecured Loans |
1729.987 |
3184.685 |
3091.403 |
|
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TOTAL BORROWING |
1729.987 |
3184.685 |
3091.403 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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|
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|
|
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TOTAL |
4651.721 |
4344.941 |
4134.672 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1508.646 |
1168.999 |
1231.926 |
|
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Capital work-in-progress |
390.828 |
1.240 |
2.320 |
|
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INVESTMENT |
0.000 |
0.000 |
0.000 |
|
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DEFERREX TAX ASSETS |
7.495 |
146.305 |
132.735 |
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
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Inventories |
4200.626 |
2980.841 |
1818.241 |
|
|
Sundry Debtors |
2556.640 |
1544.518 |
1704.644 |
|
|
Cash & Bank Balances |
194.593 |
98.228 |
289.801 |
|
|
Other Current Assets |
0.210 |
0.227 |
0.362 |
|
|
Loans & Advances |
998.638 |
532.869 |
273.159 |
|
Total
Current Assets |
7950.707
|
5156.683
|
4086.207
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
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Current Liabilities |
4966.181 |
2007.306 |
1213.516 |
|
|
Provisions |
239.774 |
120.980 |
105.000 |
|
Total
Current Liabilities |
5205.955
|
2128.286
|
1318.516
|
|
|
Net Current Assets |
2744.752
|
3028.397
|
2767.691
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
4651.721 |
4344.941 |
4134.672 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
Sales Turnover |
13933.523 |
8476.500 |
7275.837 |
|
|
Other Income |
1545.580 |
1021.218 |
361.157 |
|
|
Total Income |
15479.103 |
9497.718 |
7636.994 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
715.758 |
121.987 |
[99.431] |
|
|
Provision for Taxation |
242.306 |
5.000 |
[21.693] |
|
|
Profit/(Loss) After Tax |
473.452 |
116.987 |
[77.738] |
|
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Imports : |
|
|
|
|
|
|
CKD Components |
NA |
NA |
1742.790 |
|
|
Trade Items |
NA |
NA |
7.260 |
|
Total Imports |
NA |
NA |
1750.050 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Depreciation |
NA |
193.997 |
178.726 |
|
|
Other Expenditure |
NA |
9181.734 |
7557.699 |
|
Total Expenditure |
NA |
9375.731 |
7736.425 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
PAT / Total Income |
(%) |
3.05
|
1.23
|
[1.02]
|
|
|
|
|
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|
|
Net Profit Margin (PBT/Sales) |
(%) |
5.13
|
1.44
|
[1.37]
|
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|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
7.26
|
1.93
|
[1.87]
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.24
|
0.11
|
[0.10]
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.37
|
4.58
|
4.23
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.53
|
2.42
|
3.10
|
LOCAL AGENCY
FURTHER INFORMATION
Note:
The registered office of the company has been shifted from 6 B, GST Road, Street Thomas Mount, Chennai –
600 016, Tamilnadu, India, to the present address w.e.f. 30.06.2008
History:
Subject was
incorporated on 7th December, 2000 at Chennai in Tamilnadu having
Company Registration Number 46255.
Subject is a
world’s leading manufacturer of construction and mining equipments, diesel and
natural gas engines and industrial turbines.
Caterpillar Inc.
USA had a licence arrangement with Hindustan Motors Limited to manufacture its
machinery.
Through a business
transfer agreement with Hindustan Motors Limited on 12.11.2000 for acquiring
earth moving division with its factories at Trivellore and Pondicherry
Caterpillar Inc. acquired Hindustan Motors.
Subject was formed with the permission of foreign investment promotion board
of Government of India and a 100% subsidiary of Caterpillar Inc., USA. on
7.12.2000
Subject became a
subsidiary of Caterpillar Commercial NV, Belgium which in turn was a subsidiary
of Caterpillar Inc., USA – the holding company with effect from 14.01.2001.
Subject has
established a design center and has obtained approval from Software Technology
Parks of India for deriving tax benefits.
Caterpillar
products and components today are manufactured in 42 plants in USA and 49
plants in Australia, Belgium, Brazil, Canada, England, France, Germany,
Hungary, India, Indonesia, Italy, Japan, Mexico, The Netherlands, Northern
Ireland, People’s Republic of China, Poland, Russia, South Africa and Sweden.
The company’s
marketing headquarters are located in Peoria and Mossville, IIIinois; San
Diego, California; Miami, Florida; Cary, North Carolina; Melbourne, Australia,
Gosselies, Belgium, Piracicaba, Brazil; Peterborough, England; Kiel, Germany;
Hong Kong, People’s Republic of China, Tokyo, Japan; Singapore and Geneva,
Switzerland.
The dealers for
Caterpillar in India are GMMCO Limited and TIL Limited.
Business:
Subject is engaged
in as manufacturer, exporter and distributor of earth moving equipments.
It exports Dumpers
to African Countries, Loaders to Gulf Countries, Crawler Tractors to Sri Lanka
and Special vehicles.
FINANCIAL RESULTS
During the year the
company had ended up with a profit of Rs. 715.758 Millions. After charging for
the current tax and deferred tax for the period, the accumulated (loss) / profit
stood at Rs. 810.739 Millions (Rs. 570.749 millions being the balance of profit
transferred from the amalgamating company).
The company has
achieved a higher production of 3313 units of machines, Engines and gensets
raising the turnover to Rs. 13933.523 millions.
INDIA PARTS DISTRIBUTION CENTER
During the year,
the parts distribution centre posted a parts sales of Rs. 3924.899 millions as
against Rs. 3231.605 millions.
ENGINEERING DESIGN CENTRE
The Engineering
Design Centre has recorded a full year foreign exchange earnings of Rs. 1164.56
millions as against Rs. 787.759 millions in the previous year.
This division has
been growing rapidly with more jobs and designs moving to this centre.
AMALGAMATION
During the year
company entered into a scheme of amalgamation with Caterpillar Power India
private Limited, and in this regard, petitions were filled on October1, 2007
before the High Court of Madras (Petition Nos. 204 and 205). The hon’ble High
Court of Madras passed the order of amalgamation on November 20, 2007. The
order was filed with Registrar of Companies, Tamil Nadu, on December 18, 2007.
the amalgamation was with effect from April 1, 2007.
OUTLOOK
The Company has
commenced exporting Off-highway Trucks of various capacities to Asia-Pacific
Region and Greater Russia and is exploring market for these products in other
regions of the world as well. Further the company is under the final phase of
readiness to start exporting the model 3508 Diesel, models 3304/06 Diesel and
natural gas engines from the power systems Division, Hosur from August and
October 2008 respectively. The company is also in the process of setting up
production of transmissions to support the model 424 back Hoe Loader produced
by the company. This is planned to start in early 2009.
It is in trade terms with:
˜
Goodyear India
Limited
12, Pattullos Road, Chennai - 600 002, Tamilnadu
Tel No. 91-44-28522307
Contact Person : Mr. Gopinath –
Manager (OE)
˜
General
Marketing and Manufacturing Company Limited (Main Dealer)
6, GST Road, Chennai – 600 016, Tamilnadu
˜
TIL Limited
1, Taratola Road, Garden Reach, Kolkata – 700 024, West Bengal
Tel No. 91-33-24693732
Fax No. 91-33-24692143
Other Locations of subjects are as under:-
Ø Australia
Ø Brazil
Ø China
Ø Germany
Ø India
Ø Italy
Ø Mexico
Ø Poland
Ø Sweden
Ø Belgium
Ø Canada
Ø France
Ø Hungary
Ø Indonesia
Ø Japan
Ø Northern Ireland
Ø Russia
Ø United Kingdom
APPLICATION
Ø Open Cast Mining
Ø Quarrying
Ø Irrigation
Ø Power
Ø Steel
Ø Fertilizer and Chemicals
Ø Cement
Ø Construcion
Ø Material Handling
Fixed Assets:
· Freehold Land
· Buildings
· Plant & Machinery
· Equipment
· Furniture & Fittings
· Vehicles
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.47.08 |
|
UK Pound |
1 |
Rs.71.17 |
|
Euro |
1 |
Rs.66.98 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
2 |
|
--RESERVES |
1~10 |
2 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
|
41 |
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 |
|