MIRA
INFORM REPORT
|
Report Date : |
15.02.2008 |
IDENTIFICATION
DETAILS
|
Name : |
L AND T KOMATSU LIMITED |
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Registered Office : |
L & T House, Ballard Estate, Mumbai - 400 001, Maharashtra. |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
29.07.1997 |
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Com. Reg. No.: |
11-109700 |
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CIN No.: [Company
Identification No.] |
U29119MH1997PLC109700 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BLRL01259G |
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Legal Form : |
A Closely Held
Public Limited Liability Company |
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Line of Business : |
Manufacturing,
Trading, Assembling, Selling, Re-Selling, Exchanging, Altering, Importing, Exporting,
Hiring, Letting on Hire, Distributing or Dealing in Earth Moving Machinery
including Self Propelled Bull Dozers, Angle Dozers, Graders Levellers,
Scrappers, Mechanical Shovels, Excavators Shovel, Loaders Tamping Machines
and Road Rollers and Hydraulic and Pneumatic Equipments. |
RATING &
COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 7075168 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a
Joint Venture company of Larsen & Toubro Limited and Komatsu Limited of
Japan. General financial position of the company is satisfactory. 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. The company can
be regarded as a promising business partner in a long-run. |
LOCATIONS
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Registered/Head Office : |
L & T House, Ballard Estate, Mumbai - 400 001, Maharashtra, India |
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Tel. No.: |
91-22-22618181 / 267525656 / 22685656 / 67525656 / 67525617 |
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Fax No.: |
91-22-22618181 / 22620223 / 267525858 / 22685893 / 67525858 / 55525858 |
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E-Mail : |
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Website : |
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Factory : |
Bellary Road,
Byatarayanapura, Bangalore - 560 092, Karnataka |
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Tel. No.: |
91-80-23333301 |
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Fax No.: |
91-80-23334319 |
DIRECTORS
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Name : |
Mr. Jagdish
Pandurange Nayak |
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Designation : |
Director |
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Address : |
Gilder House, 67-F, Bhulabhai Desai Road, Mumbai – 400 026 |
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Date of Birth/Age : |
13.11.1943 |
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Date of Appointment : |
29.07.1997 |
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Name : |
Mr. Krishnamoorthy
Subramanian Manjeri |
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Designation : |
Director |
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Address : |
11, Gauri Giridhar, Peston Sagar, Chembur, Mumbai – 400 089 |
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Date of Birth/Age : |
15.08.1946 |
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Date of Appointment : |
06.06.2001 |
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Name : |
Mr. Yeshwant M. Deosthalee |
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Designation : |
Director |
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Address : |
1001, Prabhu Kutir, 15, Altamount Road, Mumbai – 400 026 |
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Date of Birth/Age : |
06.09.1946 |
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Date of Appointment : |
01.02.1998 |
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Name : |
Mr. Hisashi
Tomoji Miyazaki |
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Designation : |
Director |
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Address : |
11 Orchard Turn,
Orchard Parksuites, # 09 – 04, Singapore – 238800 |
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Date of Birth/Age : |
19.02.1949 |
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Date of Appointment : |
01.04.2004 |
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Name : |
Mr. Masaji
Toyosaku Kitamura |
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Designation : |
Director |
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Address : |
1 – 13 – 3,
Kitashinjuku – Ku, Tokyo – 1690074, Japan
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Date of Birth/Age : |
19.08.1947 |
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Date of Appointment : |
01.04.2004 |
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Name : |
Mr. Moreshwar
Yeshwant Deosthalee |
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Designation : |
Director |
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Address : |
1001, Prabhu Kutir,
15, Altamount Road, Mumbai – 400 026 |
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Date of Birth/Age : |
06.09.1946 |
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Date of Appointment : |
01.02.1998 |
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Name : |
Mr. Yasushi
Yoshio Sakano |
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Designation : |
Director |
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Address : |
5 Ridley Park, # 05
– 01, Tanglin Park, Singapore – 248476 |
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Date of Birth/Age : |
13.05.1958 |
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Date of Appointment : |
26.03.2003 |
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Name : |
Mr. Kenichi
Mokoto Tanaka |
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Designation : |
Director |
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Address : |
1 Gul Avenue,
Singapore – 629648 |
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Date of Birth/Age : |
03.08.1960 |
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Date of Appointment : |
25.02.2005 |
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Name : |
Mr. Raghavan
Sadagopan |
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Designation : |
Manager |
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Address : |
B – 103 Krishna
Vilas Apartments, 6th Cross, Ashok Nagar, Bangalore – 560050,
Karnataka |
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Date of Birth/Age : |
25.03.1946 |
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Qualification : |
M.A. [Economics],
A.M.I.E. |
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Date of Appointment : |
01.02.2004 |
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Name : |
Mr. Umesh Subraya
Mooteri |
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Designation : |
Secretary |
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Address : |
21 Mont Blanc, 67
– A, L. J. Marg, Mumbai – 400006, Maharashtra |
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Date of Birth/Age : |
07.12.1952 |
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Date of Appointment : |
15.03.1999 |
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Name : |
Mr. Ananth
Narayan Mani |
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Designation : |
Director |
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Address: |
423, Sewa Samiti
Nagar, 4th Building, 2nd
Floor, Koliwada, Mumbai – 400 037, Maharashtra, India |
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Date of Birth/Age : |
15.06.1955 |
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Date of Appointment : |
04.11.2005 |
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Name : |
Mr. Ganesh
Krishnaji Apte |
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Designation : |
Director |
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Address : |
D - 502, Kalpataru II Kalyani Nagar, Pune – 411 006, Maharashtra,
India |
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Date of Birth/Age : |
22.01.1945 |
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Date of Appointment : |
04.11.2005 |
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Date of Ceasing: |
12.05.2006 |
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Name : |
Mr. Ramakrishnan Subramaniam |
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Designation : |
Manager |
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Address : |
AH – 3, 1st Floor, 5th Street, 7th
Main Anna Nagar, Chennai – 600 040, Tamil Nadu, India |
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Date of Birth/Age : |
05.10.1954 |
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Date of Appointment : |
02.05.2006 |
KEY EXECUTIVES
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Name : |
Mr. S. R.
Subramanian |
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Designation : |
Chief Executive
Cum Manager |
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Address : |
AH -3, 1st
Floor, (Old No. AH 75), 5thg Street, 7th Main Shanthi Colony,
Amanagar, Chennai – 600 040, Tamil Nadu, India |
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Date of Birth/Age : |
05.10.1954 |
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Date of Appointment : |
02.05.2006 |
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Name : |
Mr. T. Nakatani |
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Designation : |
Deputy Chief
Executive |
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Name : |
Mr. Amit K. Vyas |
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Designation : |
Secretary |
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Address : |
Flat No. 503, Building
No. 3B, Vaishali Nagar, Mahalaxmi, Mumbai – 400001, Maharashtra |
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Date of
Birth/Age : |
15.11.1967 |
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Date of
Appointment : |
01.09.2004 |
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Name : |
Mr. Parthasarthy
Rangaswqamy Kizhanatham |
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Designation : |
Secretary |
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Address : |
Flat No. 131,
Shobha Windfalls, Amirthahalli, S K
Nagar Post, Bangalore – 560 092,
Karnataka, India |
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Date of
Birth/Age : |
25.07.1950 |
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Date of
Appointment : |
14.11.2006 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
|
Larsen and Toubro
Limited |
59999699 |
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Komatsu Asia and
Pacific Pte Limited (Singapore) |
59999700 |
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Hisashi Miyazaki
and Komatsu Asia and Pacific Pte Limited |
100 |
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Masaji Kitamura and
Komatsu Asia and Pacific Pte Limited |
100 |
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Kenichi Tanaka
and Komatsu Asia and Pacific Pte Limited |
100 |
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Nayak Pandurang
Jagdish and Larsen and Toubro Limited |
100 |
|
Krishnamurthy
Venkataramanan and Larsen and Toubro Limited |
1 |
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Mani Narayan
Ananth and Larsen and Toubro Limited |
100 |
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Sadagopan
Raghavan and Larsen and Toubro Limited |
1 |
Equity Shares Breakup (Percentage of Total Equity):
|
Sr No. |
Category |
Percentage |
|
1 |
Foreign holdings (Foreign
institutional investors ) foreign companies foreign financial institutions ,
non residents or Overseas corporate bodies or others |
50.00 |
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2 |
Bodies corporate |
50.00 |
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Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing,
Trading, Assembling, Selling, Re-Selling, Exchanging, Altering, Importing,
Exporting, Hiring, Letting on Hire, Distributing or Dealing in Earth Moving
Machinery including Self Propelled Bull Dozers, Angle Dozers, Graders
Levellers, Scrappers, Mechanical Shovels, Excavators Shovel, Loaders Tamping
Machines and Road Rollers and Hydraulic and Pneumatic Equipments. |
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Products : |
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Export: |
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Countries: |
Europe, Asia,
Japan and Africa |
GENERAL INFORMATION
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Customers : |
Ř
Bangkok
Komatsu Limited, Japan Ř
Boart
Longyear Seco, SA Ř
Komatsu
Limited, Oyama, Japan Ř
PT Komatsu
Indonesia Ř
Poclain
Hydraulics, France Ř
Estech
Corporation, Japan |
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No. of Employees : |
600 |
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Bankers : |
· Corporation Bank, Industrial Finance Branch, No. 1, Indian Express Building, Queens Road, Bangalore - 560 001, Karnataka · State Bank of India, Industrial Finance Branch, No. 61, Residency Plaza, Residency Road, Bangalore - 560 025, Karnataka · The Hong Kong and Shanghai Banking Corporation Limited No. 7, M. G. Road, Bangalore – 560001, Karnataka · The Bank of Tokyo-Mitsubishi UFJ Limited, Venkataramana Centre, 563/2, 6th Floor, Anna Salai, Teynampet, Chennai – 600 018. |
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Facilities : |
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Banking Relations : |
Good |
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Auditors : |
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Name 1 : |
Sharp &
Tannan Chartered
Accountants, |
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Address : |
103, Midford
House, 1, Midford Garden, Bangalore – 560001, Karnataka, India |
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Name 2 : |
Mr. L
Vaidyanathan Chartered Accountant |
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Address : |
Parsn Manre,
Block A -4, III Floor, 602, Anna Salai, Chennai – 600 006, Tamil Nadu, India |
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Associate Office : |
Located at : > Bank of
Baroda Building, Bombay Samachar Marg, Mumbai – 400 001, Maharashtra Tel. No. : 91-22-22047723 > Secunderabad > New Delhi |
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Associates/Subsidiaries : |
˜
Larsen &
Toubro Limited ˜
Audco India
Limited ˜
EWAC Alloys
Limited ˜
Tractor
Engineers Limited ˜
L & T
Chiyoda Limited ˜
L & T
Niro Limited ˜
L & T
Sargent & Lundy Limited ˜
L & T
Ramboll Consulting Engineers Limited ˜
L & T
John Deere Limited ˜
L & T
Case Equipment Limited ˜
Larsen &
Toubro (Oman) LLC ˜
Larsen &
Toubro (Saudi Arabia) LLC ˜
International
Seaports Pte. Limited ˜
Komatsu Asia
Pacific Pte Limited ˜
Komatsu
Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
120000000 |
Equity Shares |
Rs. 10/- each |
Rs.1200.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
120000000 |
Equity Shares |
Rs. 10/- each |
Rs.1200.000 millions |
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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 |
1200.000 |
1200.000 |
1200.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
568.792 |
277.330 |
81.839 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1768.792 |
1477.330 |
1281.839 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
382.054 |
471.053 |
744.964 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
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TOTAL BORROWING |
382.054 |
471.053 |
744.964 |
|
|
DEFERRED TAX LIABILITIES |
69.580 |
91.751 |
114.575 |
|
|
|
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|
|
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TOTAL |
2220.426 |
2040.135 |
2141.378 |
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APPLICATION OF
FUNDS |
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FIXED ASSETS [Net
Block] |
782.723 |
850.643 |
954.267 |
|
|
Capital work-in-progress |
16.554 |
6.175 |
0.890 |
|
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INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX
ASSETS |
8.818 |
11.303 |
64.892 |
|
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CURRENT ASSETS,
LOANS & ADVANCES |
|
|
|
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|
|
Inventories |
1449.738
|
1239.847
|
884.070 |
|
|
Sundry Debtors |
1316.793
|
946.487
|
1049.240 |
|
|
Cash & Bank
Balances |
101.274
|
42.857
|
8.903 |
|
|
Other Current
Assets |
0.000
|
0.000
|
0.000 |
|
|
Loans &
Advances |
602.475
|
387.648
|
150.408 |
|
Total Current Assets |
3470.280 |
2616.839
|
2092.621 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current
Liabilities |
1595.746
|
1059.995
|
983.380 |
|
|
Provisions |
464.597
|
410.523
|
36.900 |
|
Total Current Liabilities |
2060.343 |
1470.518
|
1020.280 |
|
|
Net
Current Assets |
1409.937 |
1146.322
|
1072.341 |
|
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MISCELLANEOUS
EXPENSES |
2.394 |
25.691 |
48.988 |
|
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|
|
|
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TOTAL |
2220.426 |
2040.135 |
2141.378 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
8028.785 |
5315.161 |
3718.748 |
|
|
Other Income |
31.784 |
30.466 |
0.000 |
|
|
Total Income |
8060.569 |
5345.627 |
3718.748 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
902.020 |
608.072 |
284.644 |
|
|
Provision for Taxation |
318.116 |
207.337 |
114.370 |
|
|
Profit/(Loss) After Tax |
583.904 |
400.735 |
170.274 |
|
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|
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|
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Export Value |
43.653 |
62.306 |
68.614 |
|
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|
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Import Value |
0.000 |
0.000 |
1264.550 |
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Expenditures : |
|
|
|
|
|
|
Manufacturing Expenses |
0.000 |
0.000 |
2619.940 |
|
|
Administrative Expenses |
0.000 |
0.000 |
436.352 |
|
|
Raw Material Consumed |
5299.636 |
3624.554 |
0.000 |
|
|
Consumption of stores and spares parts |
108.094 |
86.721 |
0.000 |
|
|
Increase/(Decrease) in Finished Goods |
[172.968] |
[170.277] |
0.000 |
|
|
Salaries, Wages, Bonus, etc. |
350.353 |
230.887 |
0.000 |
|
|
Managerial Remuneration |
2.231 |
2.943 |
0.000 |
|
|
Payment to Auditors |
0.543 |
0.450 |
0.000 |
|
|
Interest |
22.755 |
44.075 |
62.971 |
|
|
Insurance Expenses |
4.395 |
4.292 |
0.000 |
|
|
Power & Fuel |
36.488 |
36.981 |
0.000 |
|
|
Depreciation & Amortization |
115.682 |
114.243 |
115.815 |
|
|
Staff Expenses |
0.000 |
0.000 |
222.996 |
|
|
Other Expenditure |
1391.340 |
762.686 |
0.000 |
|
Total Expenditure |
7158.549 |
4737.555 |
3458.074 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total
Income |
(%) |
7.24 |
7.49 |
7.53 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
11.23 |
11.44 |
7.65 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
21.12 |
17.50 |
17.53 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.51 |
0.41 |
0.22 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.38 |
1.31 |
1.38 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.68 |
1.78 |
2.05 |
LOCAL AGENCY
FURTHER INFORMATION
|
Name of the company |
L AND T KOMATSU LIMITED |
|
Presented By |
L AND T KOMATSU
LIMITED Bellary Road, Byatarayanapura,
Bangalore – 560 092 |
|
1) Date and
description of instrument creating the change |
Deed of
Hypothecation dated 29.04.2003 for creation of
charge over stocks and also present and future book debts. |
|
2) Amount secured
by the charge/amount owing on the securities of charge |
Rs. 300.000
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 |
All the company
stock in trade both present and future including stocks of raw materials,
work in progress, spares and stores and finished goods whether stored in the
company factory, godowns or premises of the company agents or representatives
or held in any bonded Godown or warehouse at Bangalore or wheresoever in the
republic of India and / or in transit by ship , rail or otherwise and
all documents and / or instruments
relating thereto. And all the
company present and future book debts, outstanding monies, receivables,
claims due and owing or which may at any time become due and owing to the
company in the course of its business by any person , firm , company or body
corporate or by the government of India or any state government or Indian
Railway or any government department or office Municipal or local or Semi
governmental body or authority or any undertaking or project in the public
sector. |
|
4) Gist of the
terms and conditions and extent and operation of the charge. |
In consideration of overdraft / Loan / Export / Import / Guarantee /
Bill Discounting Facility or any other banking facilities sanctioned / to be
sanctioned by the bank to the company, the Company has hypothecated and
charged to the Bank by way of first charge as a continuing security, the
assets mentioned in Item No. 3 above to secure the repayment of the advances
together with interest cost and all other charge. Interest at the rate of
HSBC Prime per cent per annum shall be payable by the company on the banking
facilities as per Bank tariff, subject however that the bank shall have the
right to the change the rate of inertest after giving notices to the company,
The company shall maintain such martging as may be specified by the bank from
time to time. In case the Company fails to fulfill its obligations under the
agreement the bank shall be entitled to take possession of the hypothecated
properties and sell them by public auction or private contract and utilize
the proceeds in full or part settlement of its claims. |
|
5) Name and
Address and description of the person entitled to the charge. |
The Hongkong and Shanghai Banking
Corporation limited Address : 7, Mahatma Gandhi Road,
Bangalore – 560 001 |
|
6) Date and brief description of instrument
modifying the charge |
The first
supplemental Agreement dated 04.11.2005 made between the company and the bank
for Rs. 365.000 millions |
|
7) Particulars of
modifications specifying the terms and conditions or the extent of operations
of the charge in which modification is made and the details of the
modification. |
By the first
supplemental Agreement at the request of the company , the Bank agreed to
increase the maximum drawing limit under the facilities from Rs. 300.000 millions to Rs. 365.000
millions and in consideration thereof the company agreed to extend the charge
to secure the additional facilities upto Rs. 365.000 millions. The company
agreed to pay interest rate of HSBC Prime per cent per annum and agreed to maintain
margin over the assets as advised by the bank from time to time. All other
terms and conditions of the principal agreement of hypothecation dated
29.04.2003 shall remain unchanged. |
|
Corporation identity number or foreign company registrations number of
the company |
U29119MH1997PLC109700 |
|
Name of the company |
L AND T KOMATSU LIMITED |
|
Address |
L & T House,
Ballard Estate, Mumbai - 400 001, Maharashtra, India |
|
This Form is for |
Modification of charge |
|
Type of Charges |
· Book Debts · Movable Property |
|
Particular of the charge holder
|
The Bank of Tokyo – Mitsubishi UFJ Limited Address: 563/2, Anna Salai, Teynampet,
Chennai – 600 018, Tamil Nadu, India Email: sreehari_m@in.mufg.jp |
|
Nature or description of the instrument creating charge |
Supplemental agreement of hypothecation
covering enhanced facility dated 02.11.2006 |
|
Date of the instrument creating charge |
02.11.2006 |
|
Amount Secure by the charge |
Rs. 200.000 millions |
|
Brief of the principal terms and conditions and extent and operation
of the charge |
Rate
of Interest: · Applicable Libor plus 50 basis points (0.50% p.a) · Overdue interest at 2% p.a over and above the applicable rate of interest · Documentation fee of 0.625% on each drawdown subject to a maximum of Rs. 0.010 millions. Terms
of Repayment: On Demand Margin: · On Inventories / receivables upto 1 year – 25% · On Inventories / receivables beyond 1 year -100% · On movable plant and machinery -25% Extent
and Operation of the charge: Pari passu basis with HSBC Bank Others: Terms and conditions and covenants as per: · Facility agreement dated 30.08.2006 · Demand promissory note dated 30.08.2006 |
|
Short particulars of the Property charged |
1. All stocks of raw materials , good in process , finished goods, spare parts, components, assemblies, sub assemblies, stores and packing materials, both imported and indigenous , both present and future 2. Book debts, receivables, outstanding, money receivables , claims, bills etc both present and future 3. All movables plant and machinery, imported and indigenous, both present and future 1 and 2 on first pari passu basis and 3 above on Second pari passu
basis with HSBC Limited. |
|
Particulars of the present modification |
Enhancement in the buyers credit facility from Rs. 200.000 millions (equivalent of US $ 4560000/-) to Rs. Rs. 400.000 millions equivalent of US$ 8680000/-) to drawn in either US Dollars or equivalent Japanese Yen. |
|
Name of the
company |
L
and T KOMATSU LIMITED |
|
Presented
By |
The Hong Kong
And Shanghai Banking Corporation Limited [Hong Kong Bank] 52/60, Mahatma
Gandhi Road, Mumbai – 400001 |
|
1) Date and
description of instrument creating the change |
Deed of
Hypothecation dated 24.04.2003 |
|
2) Amount secured
by the charge/amount owing on the securities of charge |
Rs. 538.500
millions |
|
3) Short particular
of the property charged. If the property acquired is subject to charge, date
of the acquired of the property should be given |
Plant and
machineries as described in the schedule of the Deed of Hypothecation dated
24.04.2003 |
|
4) Gist of the terms
and conditions and extent and operation of the charge. |
In consideration
of Loan of Rs. 538.500 millions sanctioned, with interest and margin as
Applicable from time to time |
|
5) Name and
Address and description of the person entitled to the charge. |
The Hongkong and
Shanghai Banking Corporation Limited 7, M. G. Road,
Bangalore |
|
6) Date and brief description of instrument
modifying the charge |
The Supplemental
Deed of Hypothecation dated 14.05.2004 for Rs. 588.500 millions |
|
7) Particulars of
modifications specifying the terms and conditions or the extent of operations
of the charge in which modification is made and the details of the
modification. |
By the
Supplemental Deed of Hypothecation dated 14.05.2004. in consideration of Bank
agreeing to grant / granting an additional Term Loan of Rs. 50 millions the
company agreed to continue to Hypothecate the said machineries as described
in Schedule of Original Deed of Hypothecation dated 24.04.2003 over plant and
machineries and other moveable assets making thereby the total amount secured
for an aggregate sum of Rs. 588.500 millions |
Fixed
Assets
· Land
· Buildings
· Office Equipments
· Air Conditioner
· Refrigerator
· Lab Equipment
· Cars
· Motor Cycles
· Computer and Printers
· Plant and Machinery
· Furniture and Fixtures
· Vehicles
Profile:
Subject is a joint
venture between Larsen and Toubro Limited and Komatsu of Japan
The company has
been accredited with ISO 14001 Certification from Bureau Veritas Quality
International UK.
The company
has technical collaboration with:-
˜
Komastu, Japan
PERFORMANCE :
The company was
able to take full advantage of the country’s economic resurgence to record
substantial improvements in sales and profit – both before and after tax. The company sold 1254 machines during
the year as against 911 machines in the
previous year. Of particular
significance is its leadership in the premium segments of 20T, 30T and 60T
excavators. The company wishes to
record its appreciation of the excellent marketing efforts put in by its
selling agents – M/s Larsen and Touro Limited both in sales and containment of
receivables. During the year the Company was able to contain its costs and
interest outgo to lower levels thus ensuring that the EBT grew by 114% over the
previous year. The company was also well-served by the dedicated efforts of all
its employees, in achieving the output levels that constituted a new record.
QUALITY CERTIFICATION
The company has
been certified for its Quality Management System at Machinery Works [MW] for
the new version ISO 9001:2000 which was conducted by BVQI during July 03. The certification is valid for period of
three years from August’03. The fourth
and fifth surveillance audits were conducted at MW by BVQI in Oct’05 and Feb’06
respectively. In respect of the ISO
9001:2000 certification of Hydraulics Works, awarded in January’03 two
surveillance audits were carried out at HW in May’05 and Nov’05 Fby BVQI.
INDUSTRIAL RELATIONS
The Board of
Directors Wishes to place on record its appreciation of the outstanding
contribution of all employees to the operations of the company during the year
ended March2006. The Industrial Relations scenario remained very cordial and
harmonious. The significant achievements arising out of harmonious Industrial
Relations has instilled further discipline among the workers resulting in
improved productivity.
As Per Website
Details:
Larsen and Toubro
Limited (L and T) is a technology-driven engineering and construction
organization, and one of the largest companies in India's private sector. It
has additional interests in manufacturing, services and Information Technology.
A strong, customer-focussed
approach and the constant quest for top-class quality have enabled the Company
to attain and sustain leadership in its major lines of business across seven
decades.
L and T has an international presence, with a
global spread of offices. A thrust on international business over the last few
years has seen overseas earnings growing to 18 per cent of total revenue. With
factories and offices located around the country, further supplemented by a
wide marketing and distribution network, L and T's image and equity extends to
virtually every district of India.
L and T believes that
progress must necessarily be achieved in harmony with the environment. A
commitment to community welfare and environmental protection constitute an
integral part of the corporate vision.
History
The evolution of L and T into the country's largest engineering and
construction organizations is among the more remarkable success stories in
Indian industry. The company was founded in Bombay (Mumbai) in 1938 by two
Danish engineers, Henning Holck-Larsen and Soren Kristian Toubro - both of whom
were strongly committed to developing India's engineering talent and enabling
it to meet the demands of industry. Beginning with the import of machinery from
Europe, L and T rapidly took on engineering and construction assignments of
increasing sophistication. Today, the company sets engineering benchmarks in
terms of scale and complexity.
Record of
Achievements
L and T's signature of excellence is evident on:
|
India's first indigenous hydrocracker reactor |
|
Oil and gas platform projects executed to global benchmarks |
|
The world's largest continuous catalyst regeneration reactor |
|
The simultaneous execution of clean fuel projects at eight refineries
around India |
|
The world's biggest fluid catalytic cracking regenerator |
|
The world's longest product splitter |
|
Asia's highest viaduct - built for the Konkan Railway |
|
The world's longest LPG pipeline |
|
The world's longest cross country conveyor |
|
Building an international class football stadium in 260 days |
Engineering and Construction – Projects
L
and T's engineering and construction track record consists of successful
implementation of turnkey projects in major core and infrastructure sectors of Indian
industry. L and T has integrated its strengths in process technology, basic and
detailed engineering, equipment fabrication, procurement, project management,
erection, construction and commissioning, to offer single-point responsibility
against stringent delivery schedules. Strategic alliances with world leaders
enable L and T to access technical know-how and execute process-intensive
large-scale turnkey projects to maintain its leadership position.
L
and T's core competencies in engineering include highly qualified and
experienced personnel from various disciplines, state-of-the-art 2-D and 3-D
CAD facilities with sophisticated plant design systems and basic engineering
capabilities. L and T is the only Indian EPC company pre-qualified for executing
large, process-intensive projects for oil and gas, refinery, petrochemical and
fertiliser sectors.
Heavy Engineering
L
and T is acknowledged as one of the top five fabrication companies in the
world, with engineering and manufacturing capabilities that are among the most
sought after in industry. Operating at the high end of the technological
spectrum, L and T has led Indian industry in introducing new processes,
products and materials in manufacturing. L and T also has the logistics
capabilities of fabricating and supplying over-dimensional equipment to tight
delivery schedules. L and T's globally-benchmarked workshops are located in
Mumbai, Hazira, Baroda and Kansbahal.
Construction
ECC
- the Engineering Construction and Contracts Division of L and T is India's
largest construction organization. Many of the country's prized landmarks - its
exquisite buildings, tallest structures, largest industrial projects, longest
flyovers, highest viaducts, longest pipelines … have all been built by L and T.
L and T's leading edge capabilities cover every discipline of construction -
civil, mechanical, electrical and instrumentation. L and T has also expanded
its focus to the Middle East, South East Asia, Russia, CIS, Mauritius, African
and SAARC countries. L and T is also developing markets for its construction
services in the Indian Ocean rim countries, Africa and Latin America.
Electrical and Electronics
L
and T is a major international manufacturer of a wide range of electrical and
electronic products and systems. In the electrical segment, the Company is
India's largest manufacturer of low tension switchgear, and is rapidly
establishing itself in international markets. Its products are widely sold in
markets in Europe and Australia. Recently, L and T set up a new manufacturing
base for high-end air circuit breakers in China. L and T also manufactures
custom-engineered switchboards for industrial sectors like power, refineries,
petrochemical, cement, etc. In the electronic segment, L and T offers a wide
range of meters and provides complete control and automation systems for
diverse industries. Medical equipment and systems manufactured by L and T
include advanced ultrasound scanners and patient monitoring systems.
Information Technology
Larsen
and Toubro Infotech Limited, a 100 per cent subsidiary of L and T, offers
comprehensive, end to end software solutions and services with a focus on
Manufacturing, BFSI and Communications and Embedded Systems. It provides a cost
cutting partnership in the realm of offshore outsourcing, application
integration and package implementation.
Leveraging
the heritage and domain expertise of the parent company, its services encompass
a broad technology spectrum, catering to leading international companies across
the globe. It leverages the L and T parentage to also provide services in the
embedded intelligence and e-Engineering space.
Machinery and Industrial Products
L
and T manufactures, markets and provides service support for critical construction
and mining machinery - surface miners, hydraulic excavators, aggregate
crushers, loader backhoes and vibratory compactors.
Corporate Social Responsibility
Beyond
the corporate objectives of achieving growth and profitability, L and T is
conscious of its larger social obligations. The Company's efforts have been
widely recognized.
Human Resources
L and T’s employment
policies and systems radiate from a single principle - they believe in people.
People are their most valued asset - their core strength.
They have, therefore, created a ‘climate’ which is distinctive in industry.
Employees gain a level of freedom which provides security, satisfaction and,
most importantly, a sense of professional fulfilment.
At L and T, learning is a continuous process. Their Human Resources Development
Department offers training programmes for employees right through their career.
A good blend of skill development, behavioural and core programmes provide
stimulus for growth and career development.
Courses are designed to keep employees in touch with the latest trends in
management. Emphasis is laid on creativity, innovation, achievement motivation
for excellence, empowerment, augmenting communication and interpersonal skills,
developing initiative and leadership qualities and providing knowledge of
computer applications.
The compensation package offered by L and T compares favourably with respective
industries in which they operate.
L and T’s accelerated growth opens up an array of employment opportunities for
professionals at various levels. They seek achievers with an excellent track
record.
CORPORATE SOCIAL
RESPONSIBILITY
Initiatives for a Better World
In
parallel with the primary objective of enhancing shareholder value, L and T has
assumed a degree of responsibility for the welfare of society at large. The
mutually interdependent relationship between their businesses and the social
milieu in which they exist places corporate social responsibility in a position
of crucial significance.
HEALTH
Good
health is a basic driver for growth. L and T endeavours to impact the lives of
as many of the underprivileged as possible through various health and welfare
schemes. Focussing on the people surrounding the Company's establishments, L
and T has set up welfare centres and organizes periodic health drives - free or
at highly subsidised rates. L and T's welfare facilities comprise
state-of-the-art diagnostic systems and equipment. Health services offered
include family planning, counselling, mother and child health care, diagnosis
and treatment of illnesses like tuberculosis and leprosy, etc.
Periodic programmes include
blood-donation drives, alcohol recovery programmes, immunization projects,
cancer check-ups, and eye camps.
As
one of India's first companies to create awareness of the impact of HIV/AIDS in
the workplace, L and T continually strives to bring even more people within the
ambit of its enlightening influence, thus preventing the spread of this killer
disease.
The Figures
The
reach of L and T's health-related activities can be measured in the number of
lives it has impacted.
Each year, L and T's Health Centre at Andheri,Mumbai, treats around 25,000
patients.
Between October 1983 and March 2004, L and T carried out over two lakh
immunizations against common childhood illnesses - tuberculosis, polio,
measles, hepatitus B, etc.
The Awards
Sankara Ratna Award 2004 by Sankara Nethralaya, India's foremost Medical
Research Foundation in eye care services, to L and T's Chairman and Managing
Director, Mr. A. M. Naik. The annual award recognizes the contribution of a
distinguished individual or institution in support of the Nethralaya's cause
and philosophy. (February 19, 2005.)
The Mother Teresa
Award for Corporate Citizen 2003 by Chennai-based Loyola Institute of Business
Administration (LIBA), for fulfilling corporate social responsibilities. LIBA
is one of the prestigious management institutes in South India. This annual
award showcases corporates that have rendered services to the socially weak and
disadvantaged sections of the society, far beyond the call of their duties and
responsibilities. (February 5, 2004)
EDUCATION
In its own small way, L and T has changed forever the lives of hundreds through
education.
Apart
from a couple of educational institutions run by the Company on its factory
premises, L and T provides support to village schools in terms of
infrastructure, teaching aids, computers and other resources. In tragedy-prone
Gujarat, for instance, L and T has renovated and constructed schools, supplied
laboratory equipment and sponsored education-enhancing events.
Each year, L and T
selects some forty engineering graduates with promising potential, and gives
them the opportunity to undergo the prestigious M.Tech at IIT. This enhances the
interface between academia and industry, and ensures a continual flow of
talent-rich engineers from strata of society that might otherwise not produce
talent of such calibre.
DISASTER MANAGEMENT
In times of national disaster, L and T has always stepped forward to lend a
helping hand to a nation in grief. L and T has provided assistance in terms of
donations, volunteers, construction material, medical and food supplies to
mitigate the effects of such calamities as the Gujarat earthquake and the
Tsunami.
ENVIRONMENTAL
CONSERVATION
L and T has enunciated Environmental Policy Statements as required by the ISO
14001 standard for its Heavy Engineering and Electrical and Electronics
Divisions. Management Reviews are conducted annually by internal and external auditors
in line with ISO 14001 requirements. A well-maintained website ensures
interdepartmental information flow of data pertaining to environmental
preservation.
Treatment of Hazardous Waste
To
minimize the impact of potential pollutants on the ecosystem, LandT adopts
state-of-the-art techniques and employs processes to treat waste products.
Stringent quality control is maintained over hazardous waste of all types -
gaseous, liquid and solid. These are treated at source and disposed of with
minimal risk to the environment.
Conservation
At L and T's factories, judicious management of resources like fuel electricity
and water has led to steadily decreasing consumption over the past few years.
Environment-friendly Replacements
The
implementation of eco-friendly alternatives has brought the company twin
benefits: environmental conservation and economy. For example, wooden packing
and asbestos materials have been replaced by environment-friendly packing. LPG
has been replaced by PNG.
Spread of Awareness
To
facilitate implementation of eco-sensitive practices in all operational areas,
staff as well as vendors are made aware of L and T's stance on matters related
to the environment.
Greenery
L and T's greening initiatives are visible in many locations - in the lush
surroundings of its factories, in the public gardens it maintains, in the
tree-plantation drives it undertakes periodically, and in the afforestation
projects it has undertaken in the rural areas surrounding its factories.
The Awards
L and T, L and
T-Komatsu, and L and T Mysore Works were awarded Greentech Safety Awards 2005
by the well-known New Delhi-based non-profit organisation, Greentech
Foundation, for the remarkable efforts in industrial safety and environmental
management. L and T and L and T-Komatsu bagged the Gold awards, and Mysore
Works the Silver, in the category of 'Engineering Sector'. (May 11, 2005)
In
recognition of the policies and operations of L and T that emphasize
environment protection at every step and its efforts in preservation of
ecology, Greentech Foundation, a well-known New Delhi-based non-profit
organization, has conferred on L and T, its esteemed Environment Excellence
Award 2003-04 in the category of 'Engineering Sector'. (November 8, 2004)
Greentech
Foundation, a well-known New Delhi-based non-profit organisation, has conferred
on L and T its prestigious Greentech Safety Award 2003-04 in 'Gold' category
for the remarkable efforts put in by the Company in industrial safety and
environmental management. L and T won the award in the category of
'Manufacturing Sector'. (June 21, 2004)
The Electrical and
Electronics Division of L and T was awarded the prestigious Worldstar 2002
award for developing an eco-friendly packaging for its FN-63 Switch Disconnector
Fuse by the World Packaging Organisation in Sweden.
L
and T won the Indian Chemical Manufacturers' Association Award for its
pioneering work leading to the development of the waste heat recovery system
for cement plants. This application was the first-ever to be developed for
cement plants in India.
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.39.66 |
|
UK Pound |
1 |
Rs.78.16 |
|
Euro |
1 |
Rs.58.09 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
--- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
70 |
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 |
|