MIRA INFORM REPORT

 

 

Report Date :

13.02.2008

 

IDENTIFICATION DETAILS

 

Name :

TRACTORS AND FARM EQUIPMENTS LIMITED

 

 

Registered Office :

861, Anna Salai, Chennai - 600 002, Tamilnadu

 

 

Country :

India

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

28.11.1960

 

 

Com. Reg. No.:

18-4337

 

 

CIN No.:

[Company Identification No.]

U29129TN1960PLC004337

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

CHET00112A

 

 

PAN No.:

[Permanent Account No.]

AAACT2761Q

 

 

Legal Form :

A Closely Held Public Limited Liability Company.

 

 

Line of Business :

Manufacturing and Marketing of a range of Tractors, Plastic Injection Moulds, Batteries, Trailers, Implements and Accessories.

 

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 28752800

 

 

Status :

Excellent

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well-established and reputed engineering company of Amalgamation Group, a well-known industrial house of South India.  Available information indicates high financial responsibility of the company. Financial position is good.  Payments are always correct and as per commitments.

 

The company’s business dealings can be considered normal against usual trade terms and conditions.

 

LOCATIONS

 

Registered Office :

861, Anna Salai, Chennai - 600 002, Tamilnadu, India

Tel. No.:

91-44-28228782/28008782

Fax No.:

91-44-28260224

E-Mail :

info@tafe.com

pbs@tafe.co.in

Website :

http://www.tafe.com

Area :

15,000 sq. ft.

Location :

Owned

 

 

Corporate Office :

35, Nugambakkam High Road, Pottipatti Plaza, Chennai - 600 034, Tamilnadu, India

Tel. No.:

91-44-2822 8782 / 21111111 / 28279073

Fax No.:

91-44-2826 0224 / 21111111

E-Mail :

info@tafe.com

Area :

10,000 sq. ft.

Location :

Leased

 

 

Factory  :
  • Huzur Gardens, Sembium, Chennai - 600 011, Tamilnadu

      Tel.No.91-44-25375861/25371535/25375862/25375867/25375355

       Fax. No. 91-44-25372478/ 5375865

 

  • 10/205, Kalladaipatti, P O – 624201, Dindigul District, Tamilnadu

Tel No.: 91-4543-254602-04/254476

Fax No.: 91-4543-54515

 

  • Plot No. 10 and 11, KIADB Industrial Area, Doddaballarpur, Bangalore 561203, Karnataka

Tel No.: 91-8119-223560

 

  • B3/3, MMDA Industrial Estate, Maraimalai Nagar, Chennai - 603 209, Tamilnadu

 

  • 35th Milestone, Madurai – Dindigul Road, NH7, Kalladaipatti, Nilakottai, Dindigul District, Tamilnadu

 

  • Vandalur Road, Pudupakkam Kelambakkam, Chennai – 603 103, Tamilnadu

Area :

100 acres

Location :

Owned

 

 

Product training centre and j farm:

Located at :-

 

Paddur Village in Tamilnadu

 

 

Branches :

Located at: -

 

·         Tafe, I Block, 1342, Pottipatti Plaza, Nugambakkam High Road, Chennai – 600034, Tamilnadu

 

·         Tafe, I Block Sterling Road First Cross Street, Nugambakkam, Chennai – 600034, Tamilnadu

 

·         Tafe, 81 Mugappair, Chennai, Tamilnadu

 

·         Tafe, 105, Dr. Radhakrishna Salai Road, Mylapore, Chennai – 600004, Tamilnadu

      Tel.No. 91-44-28476328 / 28476872 / 28475423

      Fax. No. 91-44-28472872

      E-Mail : webmaster@tafe.co.in

 

·         Tafe, George Nagar, Chennai – 600017, Tamilnadu

 

DIRECTORS

 

Name :

Mr. A. Sivasailam

Designation :

Chairman and Managing Director

Address :

126, Dr. Radhakrishnan Road, Mylapore, Chennai – 600 004, Tamilnadu

Date of Birth/Age :

24.08.1934

Date of Appointment :

13.05.1964

 

 

Name :

Mr. A. K. Sivaramakrishnan

Designation :

Director

 

 

Name :

Mr. R. F. Harrison

Designation :

Director

 

 

Name :

Mr. M. H. Norton

Designation :

Director

 

 

Name :

Mr. N. Srinivasan

Designation :

Director

Address :

T18, 6th Avenue, Besant Nagar – 600 090, Tamilnadu

Date of Birth/Age :

27.07.1931

Date of Appointment :

15.05.1987

 

 

Name :

Mrs. Mallika Srinivasan

Designation :

Director

Address :

West Side House, 2, Adyar Club Gate Road, Chennai – 600 028, Tamilnadu

Date of Birth/Age :

19.11.1959

Date of Appointment :

22.12.1994

 

 

Name :

Mr. V. P. Ahuja

Designation :

Director

Address :

R 583, New Rajinder Nagar, New Delhi

Date of Birth/Age :

27/01/1966

Date of Appointment :

13.07.1995

 

 

Name :

Mr. P. B. Sampath

Designation :

Company Secretary

Address :

31/1, Bhagirathi Ammal Street, T. Nagar, Chennai - 600 017, Tamilnadu

Date of Birth/Age :

11.10.1944

Date of Appointment :

10.08.1984

 

 

Name :

MLS Rao

Designation :

Director

Address :

7/1, Waddels Road, Kilpauk, Chennai– 600010, Tamilnadu, India

Date of Birth/Age :

19.02.1932

Date of Appointment :

22.02.1995

 

 

Name :

M W Cully

Designation :

Director

Address :

Corblets Church Road, Claverdon C V 35, 8 P B England

Date of Birth/Age :

27.01.1966

Date of Appointment :

15.11.2002

 

 

Name :

S D Lupton

Designation :

Director

Address :

5620, Buckleign, Polints, Suwanee Ga 30024, USA

Date of Birth/Age :

17.08.1944

Date of Appointment :

26.04.2005

 

 

Name :

R C Banka

Designation :

Director

Address :

14 First Avenue, Harrington Road, Chetpet, Chennai – 600031, Tamilnadu, India

Date of Birth/Age :

15.10.1934

Date of Appointment :

06.08.1999

 

 

Name :

Mrs. Jayshree Venkatraman

Designation :

Director

Address :

126, Dr. Radhakrishnan Road, Mylapore, Chennai – 600 004, Tamilnadu

Date of Birth/Age :

25.10.1962

Date of Appointment :

26.04.2005

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

Names of Shareholders

 

No. of Shares

 

 

 

Simpson and Company Limited, Chennai, Tamilnadu

 

6099279

Mr. A. Sivasailam

 

175

Mrs. Mallika Srinivasan

 

25

Mr. A. Krishnamoorthy

 

40

Mr. J. Sankaran

 

80

Agro Holding BV Netherlands, Coolsingel, 193-2001 AX, Rotterdam

 

1900000

Associated Printers (madras) Limited, Chennai, Tamilnadu

 

400

Mr. S. Ramanujachari

 

1

 

 

 

Total

 

8000000

 

BUSINESS DETAILS

 

Line of Business :

Manufacturing and Marketing of a range of Tractors, Plastic Injection Moulds, Batteries, Trailers, Implements and Accessories.

 

 

Products :

Item Code No.

 Product Description

 

870130.09

Tractors

392690.09

Plastic injection moulds components

850710.00

Electric accumulators - lead acid

 

 

Exports :

 

Products :
  • Tractors,
  • Farm implements
  • Trailers

Countries :
  • Pakistan
  • UAE
  • Africa
  • Europe
  • Sudan
  • USA
  • Canada
  • South Africa
  • Kenya
  • Tanzania
  • Sri Lanka
  • Bangladesh
  • Maldives
  • Australia
  • New Zealand
  • Turkey

 

PRODUCTION STATUS

 

Particulars

Unit

Licensed Capacity

Installed Capacity

Actual Production

 

 

 

 

 

Agricultural Tractors

Nos.

52800

52800

32998

Industrial Plastic Components

Tonnes

4640

6000

4587

Batteries

Nos.

NA

3000000

2537927

 

GENERAL INFORMATION

 

Customers :

·          CATER PILLAR Inc., USA

·          CARRIER Inc., USA

·          AMETEK DIXSON Inc., USA

·          AXIS India Limited, Delhi

·          FENNER India Limited, Chennai

·          Indian Air Force

·          India Pistons

·          TAFE Limited

·         TAFE Access Limited

 

 

No. of Employees :

1950

 

 

Bankers :
    • Central Bank of India

Addison Building, Anna Salai, Chennai - 600 002, Tamilnadu

Facility (For entire group) Limit Rs.300.00 millions.

 

    • ICICI Bank, Chennai, Tamilnadu

 

    • Standard Chartered Bank, Chennai, Tamilnadu

 

 

Facilities :

Secured Loans

Rs in millions

 

 

From Banks

 

Term Loan

100.510

Cash Credit and Working Capital Demand Loan 

 

 

Term Loan is secured on a pari passu basis by way of hypothecation of Plant and Machinery and other movables assets of the company’s Tractor Division. 

 

Cash Credit and Working Capital Demand Loan are secured by hypothecation of current assets and by a collateral charge on pari passu basis by way of hypothecation of Plant and Machinery and other movables assets of the company’s Tractor Division. These facilities are also secured by way of an equitable mortgage of certain immovable properties of the company and granted by the holding company and the ultimate holding company.

 

Unsecured Loan

 

 

 

Fixed Assets

229.240

Other Loans and Advances – From Banks

--

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

Price Waterhouse and Company

Chartered Accountants

Address :

610, Anna Salai, Chennai - 600 006, Tamilnadu

 

 

Associates :
  • Amalgamations Valeo Clutch Private Limited
  • The United Nilgiris Tea Estates Company Limited
  • AGCO Corporation
  • Kuduma Fasteners Private Limited

 

 

Subsidiaries :
  • TAFE Access Limited
  • Southern Tree Farms Limited
  • TAFE USA Inc.
  • TAFE Reach Limited
  • TAL Precision Parts Limited
  • Addisons Paints and Chemicals Limited
  • Amco Batteries Limited
  • Amco Power Systems Limited
  • Amco Properties and Investments Limited
  • George Oakes Limited
  • India Pistons Limited
  • IP Pins and Liners Limited
  • BBL Daido Private Limited
  • Shardlow India Limited
  • AEIP Precision Products Limited
  • Simpsons and General Finance Company Limited
  • Sri Rama Vilas Services Limited
  • T Stanes and Company Limited
  • Stanes Motors South India Limited
  • Stanes Tyre and Rubber Products Limited
  • Stanes Tea and Coffee Limited
  • Wheel and Precision Forgings India Limited
  • Associated Printers Madras Private Limited
  • Associated Publishers Madras Private Limited
  • Stanes Motors Parts Limited
  • Higginbotham Private Limited
  • The Madras Advertising Company Private Limited
  • Speed – A – Way Private Limited
  • IP Rings Limited
  • Bimetal Bearings Limited
  • Amalgamations Repco Limited
  • Stanes Amalgamated Estates Limited
  • Wallace Cartwright and Company Limited, London
  • L M Van Moppes Diamond Tools India Private Limited
  • India Pistons Repco Limited
  • Stanes Agencies Limited
  • W J Groom and Company Limited

 

 

Holding Company :

  • Amalgamations Private Limited

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

14000000

Equity Share

Rs.10/- each

Rs.140.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

12000000

Equity Share

Rs.10/- each

Rs.120.000 Millions

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2007

31.03.2006

31.03.2005

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

120.000

80.000

80.000

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

7068.200

5750.100

4691.344

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

7188.200

5830.100

4771.344

LOAN FUNDS

 

 

 

1] Secured Loans

1026.500

1066.700

100.510

2] Unsecured Loans

142.200

180.500

229.240

TOTAL BORROWING

1168.700

1247.200

329.750

DEFERRED TAX LIABILITIES

0.000

0.000

188.595

 

 

 

 

TOTAL

8356.900

7077.300

5289.689

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

2058.000

1929.100

1957.699

Capital work-in-progress

93.100

91.600

11.485

 

 

 

 

INVESTMENT

2788.100

2668.200

626.438

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
1547.200

1422.700

1214.358

 

Sundry Debtors
1519.200

1349.300

1438.226

 

Cash & Bank Balances
3298.800

2903.400

2643.674

 

Other Current Assets
0.000
0.000
45.352

 

Loans & Advances
1334.200

2522.300

372.721

Total Current Assets
7699.400

8197.700
5714.331

Less : CURRENT LIABILITIES & PROVISIONS
 

 
 

 

Current Liabilities
4149.800

4207.000

2976.015

 

Provisions
131.900

1611.800

88.887

Total Current Liabilities
4281.700

5818.800

3064.902

Net Current Assets
3417.700

2378.900

2649.429

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

9.500

44.638

 

 

 

 

TOTAL

8356.900

7077.300

5289.689

 

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2007

31.03.2006

31.03.2004

Sales Turnover

18741.200

15880.100

11188.937

Other Income

577.800

438.000

0.000

Stock Adjustments

199.500

127.300

0.000

Total Income

19518.500

16445.400

11188.937

 

 

 

 

Profit/(Loss) Before Tax

2307.100

1772.900

834.393

Provision for Taxation

808.900

622.400

286.968

Profit/(Loss) After Tax

1498.200

1150.500

547.425

 

 

 

 

Export Value

N.A.

N.A.

907.688

 

 

 

 

Import Value

N.A.

N.A.

201.832

 

 

 

 

Expenditures :

 

 

 

 

Raw Materials

13764.900

11266.700

7275.144

 

Excise duty

0.000

295.900

477.600

 

Power and Fuel Cost

174.700

162.500

144.800

 

Other Manufacturing Expenses

263.300

611.200

497.800

 

Employee Cost

637.900

618.900

449.500

 

Selling and Administration Expenses

29.700

884.700

841.600

 

Miscellanies Expenses

2031.800

499.200

369.300

 

Interest and Financial Charges

107.600

117.100

69.700

 

Depreciation & Amortization

201.500

216.300

229.100

 

Other Expenditure

0.000

0.000

0.000

Total Expenditure

17211.400

14672.500

10354.544

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2007

31.03.2006

31.03.2005

PAT / Total Income

(%)
7.67

6.99

4.89

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
12.31

11.16

7.45

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
23.64

17.51

10.87

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.32

0.30

0.17

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
0.76

1.21

0.71

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
1.80

1.41

1.86

 

 

LOCAL AGENCY FURTHER INFORMATION

 

FIXED ASSETS

 

 

 

BUSINESS

 

The company is engaged in the manufacturing and marketing of a range of Tractors, Plastic Injection Moulds, Batteries, Trailers, Implements and Accessories.

 

The company is also engaged in manufacturing and selling of Tractors, Plastic Injection Moulds and Batteries both in Domestic and Export Market.

 

 

HISTORY

 

Subject is a member of the renowned Amalgamations Group - a US $ 530 million conglomerate and one of the largest light engineering groups in India. 

 

Amalgamations (Private) Limited and Simpson and Company Limited were incorporated in 1925 as Foreign Company after 15.08.1947, the companies were taken over by Mr. Anantharama Krishnan (Late) (Father of Mr. A. Sivasailam who is the present Chairman of both the companies).  It is to the credit of Late Mr. Anantharama Krishnan that this has become one of the largest groups in the south.  The group consists of 20 companies Covering, Engineering, Coffee and Tea Estates and other Merchant Trading like Goods Transport, Book Selling and Publishing, Tyres, etc.  Most of the manufacturing companies are joint ventures with overseas participation.  This is a professionally managed company and the overseas prospect will find its association pleasant and rewarding, for credit, it could be unlimited.

 

The company manufactures and markets a range of tractors, trailers, implements and accessories. 

 

Through wholly owned subsidiaries and other divisions, subject is involved in areas linked closely to its core interests:  Automobile batteries, engineering plastics, panel instruments, hydraulic pumps and tea plantations as well as a commercial tool room.

 

The company was established in 1961 to manufacture and market a range of Massey Ferguson tractors and related farm equipment in India. One of the largest tractor manufacturers in India. The company’s vision is to be the first choice of customers in India and to also move towards a growing presence in the international markets. The company had collaboration with AGCO Corporation, headquartered in Duluth, Georgia, which is one of the largest manufacturers, designers and distributors of agricultural equipment in the world. Its products are sold in more than 140 countries.

 

With a network of more than 500 dealers, branches, service outlets as well as its own sales offices and depots covering the entire width and breadth of India. The company is committed to providing complete farming solutions to its customers and empowering them to work towards increased farm productivity, prosperity and profits.

 

Subject is a US$750 million tractor major incorporated in 1960 at Chennai in India, in collaboration with Massey Ferguson (now owned by AGCO corporation, USA). TAFE acquired the Eicher tractors business, its engine plant at Alwar and transmissions plant at Parwanoo through a wholly owned subsidiary “TAFE Motors and Tractors Limited.

 

A member of the Amalgamations Group of Chennai, this company has four plants involved in tractor manufacturing at Mandidheep (Bhopal), Kallidaipatti (Madurai), Doddabalbur (Bangalore) and in Chennai.

 

Apart from being among the top five tractor manufacturers in the world, subject is also involved in making diesel engines, gears, panel instruments, engineering plastics, hydraulic pumps, plantations and passenger car distribution through other divisions and wholly owned subsidiaries.

 

TAFE Motors and Tractors Limited has, apart from the tractor manufacturing plant at Mandideep mentioned above, a Diesel Engine plant at Alwar, Rajasthan producing a range of air cooled and water cooled diesel engines up to 80 HP with plans are on to increase the product range up to 125 KVA. The Transmissions Division located at Parwanoo in Himachal Pradesh produces a range of transmission components both for captive use as well as for sale to OE manufacturers.

 

TAFE Access Limited is a wholly owned subsidiary of TAFE involved in the manufacture and marketing of farm implements, trailers and accessories, distribution of passenger cars, manufacture of hydraulic pumps and panel instruments to discerning customers both in India and overseas.

 

TAFE’s Engineering Plastics Division produces a range of components for the consumer electronics, IT, white goods and automotive sector and have the distinction of being awarded Toyota Quality Award.

 

TAFE’s Power Source Division produces a range of automotive batteries for both 2-wheeler and 4-wheeler applications for sale through AMCO Batteries Ltd. As well as for sale directly through a dedicated distribution channel under the brand name of “Speed”.

 

 

OPERATIONS

 

Its product range includes:

 

 

The company has technical collaboration with :-

 

 

The company is a unit company of the Amalgamations Group, one of India’s largest Light Engineering Groups with diverse interests in Diesel Engines, Automobile components, Tractors and related farm machinery, lubricants, panel instruments, hydraulic pumps, Engineering Tools, Storage Batteries, Paints, Engineering Plastics, Automobile franchises and Printing apart from interest in Agribusiness, book selling and publishing. The group’s leadership technology, built on foreign know how had been nurtured through indigenous efforts.

 

The company's products training centre is dedicated towards providing knowledge and continuous expertise to dealer personnel, sales & service staff and the farmers.  J Farms is a unique effort at research on new crops and farming technologies.  The company's dealers own and operate parts and service vans. 

 

To meet the growing demand for its tractors all over the world, the company is about to commission a new assembly line at Madurai. This new facility will focus solely on the export models.

 

The company has received the following awards:-

 

 

The company has been accredited with ISO Certification.

 

It is a very reputed Group in the South and well known both in India and abroad for their excellent business dealings.

 

Founded by Amalgamations Group, Management Development and Consultancy Centre (MDCC) is involved in conducting development programmes in manufacturing, marketing, infotech, networking systems, HRD and finance.

MDCC also offers services such as management consultancy, training and organisation development, personal systems, recruitment and selections. Manned by an expert faculty of internal and external resource persons, MDCC has access to speacilists in India and abroad. Equipped with advanced computer training facilities and a full range of application software, MDCC forms an ideal venue for training sessions, seminars and interviews.
           

 

E-COM

 

Consulting Onsite and Offsite Consultation provided in the following disciplines:

 

 

Application Management Services

 

 


Migration Activities

 

 

 


Quality Audit Services

 

 


Feasibility Study Services

 

 

 

Training

 

 

FIELD

 

In the recent past, the most talked words in Mechanical Industry are CAD, CAM and CAE. Computer Aided Design (CAD) has transformed the whole world of Engineering Design to unprecedented proportions. The ease with which Design can be taken up, and the scope of expanding horizons in this field, has made most of the enterprising Entrepreneurs, to change to CAD. Not to be left out in this Technology Race, the medium and small sectors, also have reconciled to CAD. To keep the competitive edge, with the entry of MNC’ s in Indian Market, it became imperative for the manufacturers, to keep abreast with the latest technology, which called for the change to CAD /CAM. Prohibitive cost of hardware and software, shortage of technical expertise and lack of TURNKEY SOLUTION PROVIDERS, have made this CAD field, presently, a vast but less occupied one.

 

 

CAPABILITY

 

Management Development and Consultancy Centre (MDCC), has been conceived with a foresight of creating a total ‘CAD/CAM Solution provider’. With global intralink and latest data transfer facilities existing, MDCC is all poised for a global leap, in CAD/CAM field.

 

 The company provides the following services using Pro/ E, I-DEAS, Solidworks, ANSYS and ACAD Software.

·         Reverse Engineering - With a better end result.

·         Re- Engineering.  

·         Tool Design.  

·         2-D to 3-D conversion.

·         Top-level assembly.  

·         Sheet metal Design.  

·         Mold Design .

·         Casting Model.  

·         Piping, Cabling and Wiring.  

·         NC Codes for Manufacturing.

·         Analysis – Structural, Thermal & Vibration. 

 

Form 8:

 

Name of the company

TRACTORS AND FARM EQUIPMENTS LIMITED

Presented By

Mr. P. B. Sampath, Company Secretary

1) Date and description of instrument creating the change

Agreement of Hypothecation of goods and assets dated 30th June 2005

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

Rs.900 Millions

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

Block Assets, Including Plant and Machinery of Thactor Division and Gears Division (Excluding Residential Property worth Rs.176.300 millions)

 

All Tangible movable property such as Stock-in-trade, goods, present and future receivables

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

First charge on Block Assets excluding Residential Property worth Rs.176.300 Millions ranking pari-passu with Central Bank of India, Corporate Finance branch, Addison Building, Chennai – 600002.

 

Second charge on Current Assets ranking Pari-passu with Central Bank of India, Corporate finance Branch, Addison building, Chennai – 6000002.

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

State Bank of India

Corporate Accounts Group Branch

New No. 64 (149)

Greams Road, Chennai – 600006

6) Date  and brief description of instrument modifying the charge

Not Applicable

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

Not Applicable

 

 

Name of the company

TRACTORS AND FARM EQUIPMENTS LIMITED

Presented By

Mr. P. B. Sampath, Company Secretary

1) Date and description of instrument creating the change

Letter of Hypothecation dated 30th June 2005

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

Rs.1100 Millions

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

Block Assets, Including Plant and Machinery of Thactor Division and Gears Division (Excluding Residential Property worth Rs.176.300 millions)

 

All Tangible movable property such as Stock-in-trade, goods, present and future receivables

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

First charge on Block Assets excluding Residential Property worth Rs.176.300 Millions ranking pari passu with Central Bank of India, Corporate Finance branch, Addison Building, Chennai – 600002.

 

Second charge on Current Assets ranking Pari passu with Central Bank of India, Corporate finance Branch, Addison building, Chennai – 6000002.

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

Central bank of India

Addison Buildings

803, Anna Salai

Chennai – 600002. 

6) Date  and brief description of instrument modifying the charge

Not Applicable

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

Not Applicable

 

 

Name of the company

TRACTORS AND FARM EQUIPMENTS LIMITED

Presented By

Mr. P. B. Sampath, Company Secretary

1) Date and description of instrument creating the change

Agreement of Hypothecation dated 10th April 1963 (Modified by Supplemental Letter of Hypothecation dated 15.03.1999)

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

Rs.3.500 Millions

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

Plant and Machinery, Stock-in-trade and Book Debts etc. 

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

Hypothecation of movable as security for overdraft and other facilities.

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

Central bank of India

Addison Buildings

803, Anna Salai

Chennai – 600002. 

6) Date  and brief description of instrument modifying the charge

Supplemental deed of hypothecation dated 1st March 2004

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

Amount secured by the charge reduced from Rs.743.600 millions to Rs.700.000 millions. 

 

 

News:

 

For immediate publication

Date : 28-9-2007

 

TAFE & CITY UNION BANK SIGN AN MOU

FOR TRACTOR FINANCING

 

Chennai, 28th September 2007 : Tractors and Farm Equipments Limited, (TAFE) and City Union Bank Ltd. (CUB) today announced the signing of a Memorandum of Understanding under which City Union Bank will finance the purchase of tractors manufactured under the brand names 'Massey Ferguson' and 'Eicher'. This MOU was signed by Ms Mallika Srinivsan, Director for and on behalf of TAFE and Shri S. Balasubramanian, Chairman for and on behalf of City Union Bank Ltd.


Speaking on the occasion, Ms Mallika Srinivasan stated : "TAFE seeks to capitalize on the opportunities presented due to rapid growth in the economy and the demanding market dynamics. This MOU will enable the members of the dealer fraternity to facilitate convenient loan options for the members of the farming community. City Union Bank Ltd., has a tradition of excellent relationship and service with the SME sector and this association with the vital segment of the agrarian sector will benefit the parties mutually”.


Shri S. Balasubramanian, Chairman, City Union Bank Ltd., observed : 'City Union Bank Ltd., has a strong presence in the delta areas of Tamil Nadu and in Andhra Pradesh and Karnataka. Indian economy is on a roll and the agrarian sector needs all the support to benefit from the growth opportunity presented in the current context. Networking of all our branches is complete and City Union Bank is also expanding to newer locations to enhance our reach. This will provide greater opportunities for the farming community to benefit from association with CUB for their needs. Our excellent relationship with the farming community in all the three states will get a further fillip with this MOU”.


About Tractors and Farm Equipments Limited


Chennai-based Tractors and Farm Equipments Limited (TAFE) manufactures and markets tractors under the brand names 'TAFE', 'Massey Ferguson' and 'Eicher' in the range of 25 HP to 90 HP. With manufacturing plants located at Bhopal (Madhya Pradesh), Bangalore, Madurai and Chennai and capacity utilization exceeding 90%, TAFE enjoys a market share of 22% and is among the top ten tractor manufacturers in the world. With a turnover of over Rs. 3,000 crores and a sale of over 80,000 tractors in the last fiscal year, TAFE's products have earned the sobriquet 'Farmers Favourites' from the farming community and a reputation for robust design, durability, high fuel efficiency, low operating costs and a high resale value. TAFE's product portfolio has been considerably expanded with a number of tractor models such as the Orchard Plus, Compressor Special and Paddy Master that cater to specific crops and applications. Their recent launch of the “No Tension” and "Planetary Drive" series for use in heavy soils and heavy duty haulage have been well received in the southern states.


About City Union Bank Ltd.


City Union Bank Ltd., headquartered at Kumbakonam is among the most dynamic private banks in the country. With its track record of excellent relationship and service to the small, medium and agrarian sector as also middle class income households, CUB crossed business turnover of over Rs.90000.000 Millionsin the present financial year. The countrywide network of 180 branches is interconnected and the bank has introduced modern concepts such as RTGS, NEFT, Anywhere Banking, Mobile Banking, and Internet Banking. The forward looking prospects and practices of CUB have led the country's two premier institutions… engineering major Larsen & Toubro Ltd. (L&T) and life insurance leader LIC of India… to acquire a stake of around 5% each in CUB, which besides a welcome recognition also enables the bank to reach out to the respective industries in a significant way.

 

 

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 exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                  None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.39.65

UK Pound

1

Rs.77.41

Euro

1

Rs.57.62

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

9

PAID-UP CAPITAL

1~10

9

OPERATING SCALE

1~10

9

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

10

--PROFITABILIRY

1~10

8

--LIQUIDITY

1~10

9

--LEVERAGE

1~10

9

--RESERVES

1~10

9

--CREDIT LINES

1~10

9

--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

YES

--EXPORT ACTIVITIES

YES/NO

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

81

 

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.

 

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