MIRA
INFORM REPORT
|
Report Date : |
06.10.2008 |
IDENTIFICATION
DETAILS
|
Name : |
TELCO
CONSTRUCTION EQUIPMENT COMPANY LIMITED |
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|
|
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Registered
Office : |
Jubilee
Building, 45, Museum Road, Bangalore - 560025, Karnataka |
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Country : |
India |
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Financials (as
on) : |
31.03.2008 |
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Date of
Incorporation : |
30.12.1998 |
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Com. Reg. No.: |
08-24588 |
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CIN No.: [Company
Identification No.] |
U29119KA1998PLC024588 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BLRT02428G |
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PAN No.: [Permanent
Account No.] |
AAACT9077B |
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Legal Form : |
It is
a closely held public limited liability company. The company is a subsidiary of Tata Motors Limited |
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Line of
Business : |
Manufacturing
and sale of construction equipments and earth moving equipments. |
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 |
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Maximum Credit
Limit : |
USD 32000000 |
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|
Status : |
Excellent |
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Payment
Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is an
established company of Tata Group. Available information indicates high
financial responsibility of the company. The company’s result has improved.
Trade relations are fair. Payments are correct and as per commitments. The company can
be considered good for normal business dealings. It can be
regarded as a promising business partner in a medium to long run. |
LOCATIONS
|
Registered
Office : |
Jubilee
Building, 45, Museum Road, Bangalore - 560025, Karnataka, India |
|
Tel. No.: |
91-80-25588026/25583345/46/53/
66953301/02/03 |
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Fax No.: |
91-80-25583343/
66953309 |
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E-Mail : |
bigamudre.murty@telcon.co.in |
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Website : |
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|
Area : |
15000
sq. ft |
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Location : |
Leased |
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Administrative
office: |
27th
Floor, Centre I, World Trade Centre, Cuffe Parade, Mumbai - 400005,
Maharashtra |
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Tel. No.: |
91-22-22160871 |
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Fax No.: |
91-22-22185747 |
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Zonal
offices : |
Located
at :
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Overseas
office: |
Nitol Motors Limited,
Nitol Centre, 71 A, Mohakali Commercial Area, Dhaka, 1212, Bangladesh, India Tel. No.
00880-2-9887074/76 Fax. No.
00880-2-9883121/9887072 E-mail. nita@citechco.net
Contact Person -
Mr. Mohammad Aytollah / Mr. N. Ramchandran Access Tower, 278
Union Placa, Colombo, Colombo 02, Sri Lanka, India Tel. No.
0094-1-302302 Fax. No.
0094-1-302333/302346 E-mail. ajitten@access.lk/sumal@access.lk Contact Person -
Mr. Sumal Perera Kathmandu, 999
999, Nepal, India Tel. No.
00977-1-520320/3/526357 Fax. No.
00977-1-26670 E-mail. paka@mos.com.np Contact Person -
Mr. Badri Shreshtha |
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Factory : |
Email: ganapathi.mani@telcon.co.in |
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Area : |
100
acre |
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Location : |
Owned |
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Branches : |
Located
at :
|
DIRECTORS
|
Name : |
Mr.
Jamshed Khurshid Setna |
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Designation : |
Non
Executive Chairman |
|
Address : |
SB, Saker Apartments,
Pochkhanawala Road, Worli, Mumbai – 400025, Maharashtra, India |
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Date of
Birth/Age : |
29.08.1928 |
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Date of
Appointment : |
21.04.2006 |
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Name : |
Mr.
Ranaveer Sinha |
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Designation : |
Managing
Director |
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Address : |
G5, Golmuri
Road, Nildih, PO Golmuri, Jamshedpur – 831003, India |
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Date of
Birth/Age : |
09.07.1954 |
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Qualification
: |
B.E.,
PGDBM |
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Experience : |
28
years |
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Date of
Appointment : |
01.01.2003 |
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|
|
|
Name : |
Mr. Kamalesh
Chandra Dewan Wazirchand Mehra |
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Designation : |
Non
Executive Director |
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Address : |
Flat # 11,
Volkart House, 63 Westfield Lane, Bhulabai Desai Road, Mumbai – 400021,
Maharashtra, India |
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Date of
Birth/Age : |
20.09.1939 |
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Date of
Appointment : |
29.09.1999 |
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|
Name : |
Mr. T Sakai |
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Designation : |
Director
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Date of
Appointment: |
03.05.2005 |
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|
Name : |
Mr.
Virendraraj Hanwantraj Mehta |
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Designation : |
Non
Executive Director |
|
Director : |
‘Ganesh Deep’,
373, Anand Vihar, ‘D’ Block, New Delhi – 110092, India |
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Date of
Birth/Age : |
12.01.1934 |
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Date of
Appointment : |
29.09.1999 |
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|
Name : |
Mr.
Praveen Purshottam Kadle |
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Designation : |
Non
Executive Director |
|
Address : |
# 224 NCPA
Apartments, Nariman Point, Mumbai – 400021, Maharashtra, India |
|
Date of
Birth/Age : |
01.01.1957 |
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Date of
Appointment : |
30.12.1998 |
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|
|
|
Name : |
Mr.
H. Hamabe |
|
Designation : |
Alternate
Director |
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Date of
Birth/Age : |
46
years |
|
|
|
|
Name : |
Mr.
Hideo Arahata |
|
Designation : |
Non
Executive Director |
|
Address : |
1-154
Tagu – cho, Ushikushi, Ibaraki 300-1236, Japan |
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Date of
Birth/Age : |
01.03.1948 |
|
Date of
Appointment : |
03.05.2005 |
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|
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|
Name : |
Mr.
Munehiro Kimura |
|
Designation : |
Non
Executive Director |
|
Address : |
1-8-41
Nakashin Juku, Kashiwa, Chiba, Japan |
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Date of
Birth/Age : |
05.11.1941 |
|
Date of
Appointment : |
03.05.2005 |
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|
|
|
Name : |
Mr.
Shoji Lino |
|
Designation : |
Alternate
Director to Arahata |
|
Address : |
3 –
50 Kounoyama Abiko, Chiba, Japan |
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Date of
Birth/Age : |
11.07.1957 |
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Date of
Appointment : |
03.05.2005 |
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|
|
|
Name : |
Mr.
Mitsohiro Tabei |
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Designation : |
Alternate
Director to Kimura |
|
Address : |
1001-21-21-8
Chome Machiya, Arakawa – ku, Japan |
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Date of
Birth/Age : |
01.03.1952 |
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Date of
Appointment : |
03.05.2005 |
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|
|
|
Name : |
Mr.
Toshiaki Takase |
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Designation : |
Alternate
Director to Tabei |
|
Address : |
1-12-16-207
Tarumachi Kokoku – ku, Yokohama, Japan |
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Date of
Birth/Age : |
16.09.1955 |
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Date of
Appointment : |
18.10.2006 |
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|
|
|
Name : |
Mr.
Prakash Manjanath Telang |
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Designation : |
Non
Executive Director |
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Address : |
Flat
# D – 211 Paradise Towers, Plot # 10 Baner Road, Pune – 411045, Maharashtra,
India |
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Date of
Birth/Age : |
21.06.1947 |
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Date of
Appointment : |
30.06.2006 |
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|
Name : |
Mr.
Kiyomitsu Yamanaka |
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Designation : |
Additional
Director |
|
Address : |
4-17-7,
Kamisaginomiya, Nakano-ku, Tokyo – 1650031 |
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Date of
Birth/Age : |
24.01.1951 |
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Date of
Appointment : |
24.03.2008 |
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|
Name : |
Mr.
Hiroaki Isshiki |
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Designation : |
Alternate
Director |
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Address : |
3-13-8
Izumi-Honcho Komae City, Tokyo – 2010003 |
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Date of
Birth/Age : |
23.04.1958 |
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Date of
Appointment : |
24.03.2008 |
KEY EXECUTIVES
|
Name : |
Mr.
S. Mazumdar |
|
Designation : |
Vice President
and Chief Financial Officer |
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|
|
|
Name : |
Mr.
Azhagesan Ayyamperumal |
|
Designation : |
Company
Secretary |
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Address : |
Flat
# 308, SMR Castle 29, Banaswadi Main Road, Bangalore – 560043, Karnataka,
India |
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Date of Birth
: |
27.09.1963 |
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Date of
Appointment : |
09.01.2001 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 09.06.2005)
|
Names
of Shareholders |
|
No. of Shares |
|
|
|
|
|
Tata Motors
Limited |
|
59750000 |
|
Hitachi
Construction Machinery Company Limited |
|
40000000 |
|
Sheba Properties
Limited |
|
250000 |
|
|
|
|
|
Total |
|
100000000 |
(As on 31.03.2008)
|
Category |
|
Percentage |
|
|
|
|
|
Foreign Holding
(FIIs, FCs, FFIs, NRIs, OCBs, or Others) |
|
40.00 |
|
Bodies Corporate |
|
60.00 |
|
|
|
|
|
Total |
|
100.00 |
BUSINESS DETAILS
|
Line of
Business : |
Manufacturing
and sale of construction equipments and earth moving equipments. |
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Products : |
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Exports : |
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Countries : |
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Imports : |
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Countries : |
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Terms : |
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Selling : |
Contract
+ Documents through Bank terms |
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Purchasing : |
L/C
and Credit (60 days) |
PRODUCTION STATUS
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Earth Moving Machinery including bull-dozers, dumpers,
scrapers, loaders, shovels and draglines (excluding walking draglines) |
Nos. |
3262 |
3515 |
|
Manufactured components for sale |
Millions |
-- |
112.2 |
GENERAL
INFORMATION
|
Suppliers : |
·
Hitachi
Construction Machinery Company, Japan ·
Ital
Tractors, Italy ·
Kirloskar
Cummins Limited/ Cummins Engines, India ·
Tata
Motors Limited, India ·
Wipro
Fluid Power, Peenya, Bangalore |
|
|
|
|
Customers : |
·
Central
Public Works Department, India ·
State
Public Works Departments, India ·
Tata
Group Companies, India ·
North
Zone Trader, Srinagar ·
Pathankot
Excavator, Pathankot ·
Super
Mover Agencies |
|
|
|
|
No. of
Employees : |
1055 |
|
|
|
|
Bankers : |
Corporate
Accounts Group Branch, Express Towers, Nariman Point, Mumbai – 400021,
Maharashtra, India
26-27,
Raheja Towers, M G Road, Bangalore – 560001, Karnataka, India
Bangalore,
Karnataka, India
Bangalore,
Karnataka , India
Kasturba
Road, Bangalore – 560001, Karnataka, India |
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|
|
|
Banking Relations : |
Good |
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Auditors : |
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|
Name : |
S. B.
Billimoria and Company Chartered
Accountants |
|
Address: |
Bangalore,
Karnataka, India |
|
|
|
|
Name : |
Deloitte
Haskings and Sells Chartered
Accountant |
|
Address: |
Deloitte
Centre, Anchorage II, 100/2 Richmond Road, Bangalore – 560025, Karnataka,
India |
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|
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Collaborators: |
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Associates: |
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Subsidiaries: |
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Holding
Company: |
L28920MH1945PLC004520 (Formerly
Known as Tata Engineering and Locomotive Company Limited) |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
100000000 |
Equity
Shares |
Rs.10/-
each |
Rs.1000.000
millions |
|
|
|
|
|
Issued,
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
100000000 |
Equity
Shares |
Rs.10/- each |
Rs.1000.000
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 |
|
|
|
|
|
1] Share Capital |
1000.000 |
1000.000 |
1000.000 |
|
|
2] Share Application
Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves &
Surplus |
5417.800 |
3117.600 |
1741.600 |
|
|
4] (Accumulated
Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH
|
6417.800 |
4117.600 |
2741.600 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
530.200 |
|
|
2] Unsecured
Loans |
0.000 |
0.000 |
100.000 |
|
TOTAL BORROWING
|
0.000 |
0.000 |
630.200 |
|
|
DEFERRED TAX
LIABILITIES |
88.600 |
78.500 |
106.000 |
|
|
|
|
|
|
|
TOTAL
|
6506.400 |
4196.100 |
3477.800 |
|
|
|
|
|
|
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APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
2282.900 |
1912.900 |
1781.200 |
|
Capital work-in-progress
|
910.200 |
124.600 |
21.700 |
|
|
|
|
|
|
|
INVESTMENT
|
1570.500 |
530.900 |
36.300 |
|
DEFERREX TAX ASSETS
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
4229.100
|
3135.800
|
2264.400
|
|
|
Sundry Debtors
|
1984.100
|
1551.800
|
1425.100
|
|
|
Cash & Bank Balances
|
792.300
|
517.900
|
346.100
|
|
|
Other Current Assets
|
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances
|
4079.300
|
2998.800
|
1362.300
|
Total Current Assets
|
11084.800
|
8204.300
|
5397.900
|
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
5291.400
|
4144.100
|
2564.800
|
|
|
Provisions
|
4050.600
|
2432.500
|
1194.500
|
Total Current Liabilities
|
9342.000
|
6576.600
|
3759.300
|
|
Net Current Assets
|
1742.800
|
1627.700
|
1638.600
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
6506.400 |
4196.100 |
3477.800 |
|
PROFIT &
LOSS ACCOUNT
|
PARTICULARS |
|
|
31.03.2006 |
Sales Turnover [including other income]
|
|
|
11599.400 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
|
|
1367.600 |
Provision for Taxation
|
|
|
499.200 |
Profit/(Loss) After Tax
|
|
|
868.400 |
|
|
|
|
|
Export Value
|
|
|
378.800 |
|
|
|
|
|
Import Value
|
|
|
3714.400 |
|
|
|
|
|
Total Expenditure
|
|
|
9966.800 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2008 |
31.03.2007 |
31.03.2006 |
PAT / Total Income
|
(%)
|
NA
|
NA
|
7.48
|
|
|
|
|
|
|
Net Profit Margin
(PBT/Sales) |
(%) |
NA
|
NA
|
11.79
|
|
|
|
|
|
|
Return on Total Assets
(PBT/Total
Assets} |
(%) |
NA
|
NA
|
19.04
|
|
|
|
|
|
|
Return on Investment (ROI)
(PBT/Networth) |
|
NA
|
NA
|
0.49
|
|
|
|
|
|
|
Debt Equity Ratio
(Total
Liability/Networth) |
|
1.46
|
1.60
|
1.60
|
|
|
|
|
|
|
Current Ratio
(Current
Asset/Current Liability) |
|
1.19
|
1.25
|
1.43
|
LOCAL AGENCY
FURTHER INFORMATION
Trade Reference:
- Industrial
Enterprises
- Jayashree
Enterprises
- Maker
Castings India (Private) Limited
- Model Heavy
Fabricators Private Limited
- Shyam
Enterprises
- Savita
Chemicals Limited
- Vikas Gears
(India) Limited
- Mayur Bhanj
Metals Limited
Form 8
|
Corporate
identity number of the company |
U29119KA1998PLC024588 |
|
Name of the
company |
TELCO
CONSTRUCTION EQUIPMENT COMPANY LIMITED |
|
Address of the
registered office or of the principal place of business in India of the company |
Jubilee
Building, 45, Museum Road, Bangalore - 560025, Karnataka, India |
|
This form is for |
Modification
of charge |
|
Type of charge |
Book Debts Movable Charge |
|
Particular of
charge holder |
Standard Chartered Bank 26-27,
Raheja Towers, M G Road, Bangalore – 560001, Karnataka, India |
|
Nature of
instrument creating charge |
Agreement of
Supplemental Memorandum of Hypothecation dated 28th August 2008
executed by Telco Construction Equipment Company Limited on favour of Standard Chartered Bank |
|
Date of
instrument Creating the charge |
28.08.2008 |
|
Amount secured by
the charge |
Rs.750.000
Millions |
|
Brief of the principal
terms an conditions and extent and operation of the charge |
Rate of
Interests: At the rate as
negotiated and agreed by the Bank, Payable monthly arrears. Terms of
Repayment: Repayable in full
up to 360 days from the drawdown date with interests Margin: Nil Extent and
operation of the charge: Up to 360 days
from the drawdown date |
|
Particulars of
the property charged |
All stocks and
book debts of the company, present and future at borrower factory and
warehouses located in India |
|
Particulars of
the present modification |
|
|
Name of the
company |
TELCO
CONSTRUCTION EQUIPMENT COMPANY LIMITED |
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Presented By |
UTI Bank Limited,
No. 9, M. G. Road, Bangalore – 560001 |
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1) Date and description
of instrument creating the change |
a. 27.08.2003:
Deed of Hypothecation of machinery and other movable fixed assets CCD – 15. b. 27.08.200 :
Standby Facility Agreement – Agreement for Standby Facility [The above documents
relates to the same and single charge] |
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2) Amount secured
by the charge/amount owing on the securities of charge |
Standby facility
for issuance of commercial paper of Rs.400 millions |
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|
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 |
Hypothecation of
all the movable plant and machinery, furniture’s, fixtures, etc. both present
and future being movable properties, now stored at or being stored or which
may hereafter be brought into or stored at or at present installed at various
locations, and also the plant and machinery, which may at any time hereafter
belonging to borrower or borrowers disposal and now or at any time and from
time to time hereafter stored or be stored or brought into or up on or in
course of transit or awaiting transit by any mode of transport to their
factory or premises or at any other place whatsoever and wheresoever in their
possession or occupation or at any other premises or place [all of which
herein after collectively referred to as the said assets’] to secure as a
continuing security. |
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4) Gist of the
terms and conditions and extent and operation of the charge. |
Standby By Letter
of Credit fees – 0.95% to be charged |
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5) Name and
Address and description of the person entitled to the charge. |
UTI Bank Limited No. 9, M. G.
Road, Bangalore – 560001, Karnataka, India |
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6) Date and brief description of instrument
modifying the charge |
29.08.2003:
Extension of equitable mortgage over company’s immovable property [No
separate Instrument executed]. Copy of Memorandum of Entry enclosed. |
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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. |
The present
modifications are as under : The loan amount
of Rs. 400 millions is additionally secured by way of Extension of equitable mortgage
over company’s immovable property detailed hereunder, the title deeds having
been deposited with State Bank of India, Corporate Accounts Group, 20th
Floor, Express Towers, Nariman Point, Mumbai – 400021 acting as agent for UTI
Bank Limited. - All that piece
of land in Sy. No’ set out below in the Belur Industrial Area within the
village limits of Neeralkatti, Mummigatti, Gungaragatti, Hobli Gang, Dharwad,
Taluk Dharwad District, containing by admeasurements 118.76 acres or
thereabouts and bounded as follows that it to say : on or towards the
North : by private land on or towards the
South : by National Highway No. 4 on or towards the
East : by Garag Road on or towards the
West : by Walmi Land Survey Number –
wise area under possession of Telco Construction Equipment Company Limited
And all the plant
and machinery attached to the earth or permanently fastened to anything attached
to the earth, fixed plant and machinery, fixtures and fittings, constructed,
erected or installed thereon or to be constructed, erected or installed
thereon [both present and future] [the “Mortgaged Property”. |
Fixed Assets:
- Building
- Plant
- Machinery
- Equipment
- Water systems and
sanitation
- Furniture,
- Fixtures
- office appliances
- Vehicles
- Transport
WEBSITE DETAILS
ABOUT US
Subject the Leader in Construction Equipment in India, enhances
the operational performance of its customers, leading to improving their
profitability and competitiveness by offering constructive solutions. Company
is a subsidiary company of TATA motors, which holds 60% share, and Hitachi
Construction Machinery Company Limited, Japan holding the balance 40%. The
company commenced manufacturing of construction equipment in 1961, as a
division of TELCO. In 1984, it entered into a technical collaboration with HCM,
Japan for manufacturing state of the art hydraulic excavators.
Company is focused on capitalizing the opportunity in the
domestic arena for which the key market segments are Excavators, Wheeled
Products, Cranes and Others. Company consistent growth and success have been
built on the foundation of their ability to understand customers' needs and
provide Equipment and Support solutions that increase profitability and
competitiveness for them. What we call Constructive Solutions. Their
capabilities to deliver Constructive Solutions starts with their comprehensive
range of Equipment that ensures that the customer has exactly the right kind of
equipment for all Construction, Mining and Infrastructure needs.
The construction industry involves heavy use of excavators,
wheel loaders, and backhoe loaders. Telcon's range of excavators start at 2
tonnes and a maximum size of 120 tonne excavator is made in the country. But
sizes even bigger than this including the giant 250 tonne excavator have been
brought in from Telcon's Principals, Hitachi Construction Machinery Limited,
Japan.
Company has acquired a controlling stake of 79% in Serviplem
S.A., Spain specializing in the manufacture of Truck mounted concrete mixers
and Dry bulk tanks for the transport of concrete and cement respectively.
Serviplem has a presence in over 50 countries across the globe and is ranked
amongst the TOP 6 manufacturers in the world. Telcon has also acquired a
controlling stake of 60% in COMOPLESA LEBRERO S.A, Spain, their technology
partners since 2002, who manufacture a range of road construction machines.
These two acquisitions have further strengthened our ambition of being a Full Liner.
Compnay is the largest manufacturer of construction
equipment and has two manufacturing plants - at Jamshedpur in Jharkhand and at
Dharwad in Karnataka. The company is coming up with a third plant in Kharagpur
that would be spread over 60 hectares with additional facilities for a vendor
park. The Kharagpur plant will produce backhoe loaders, midi excavators, off -
highway dump trucks, wheel loaders and large mining shovels. This will take
company towards being a full liner in
the construction equipment business. It will also house a full - fledged
R&D centre. Hitachi, while actively participating in creating the R&D
facilities, will aim at making the new centre a global R&D hub.
Their focus is also on Value added Service offerings such as
Full Maintenance Contracts, which complete their package to their customers and
enable him free up precious resources for his core activities. Specialized reconditioning and refurbishing
services are offered to ensure that the utility of the equipment is extended
and life cycle costs brought down.
MANUFACTURING
FACILITIES:
A joint venture with Hitachi - World leaders in hydraulic excavator
technology, company has access to the very latest and is able bring world-class
products to the discerning Indian customer. The manufacturing facilities are in
accordance with Hitachi standards and stipulations and the Tata policy of
quality ensures that only the best machines roll out. Telcon's facilities are
located in Dharwad in Karnataka and Jamshedpur in Jharkhand, are strategic
locations with proximity to the markets of the respective products manufactured
in each.
It is the younger of the two facilities having been set-up
in 1999 this modern and highly mechanized facility spread over 118 acres rolls
out more than a thousand machines with less than 50 workers. It is here that
the 'Contractor's machines' which is machines of under-20T class and wheeled
equipment are made. Dharwad lies in the center of the hubs of the markets for
these machines, concentrated in the South and West. To be precise it is 420km
from Bangalore, 400km from Pune and 470km from Hyderabad.
It has a fully automated conveyor system, which is designed
to cater to high volumes and is undaunted by the flexibility and fluctuations
in the model mix. This gives it the capability to respond nimbly to customer
needs. Systematic workflow and a quality conscious team ensure that high
quality products roll out.
The harsh conditions that prevail on a field site, makes
their equipment susceptible to damage and corrosion. So the machines that roll
out of Dharwad receive an Autophoretic Pretreatment, oven baking, followed by
PU-based painting, a process unique to the Indian Construction and Earthmoving
Equipment industry. This makes the machines corrosion resistant and gives them
a superior finish.
All equipment and key components undergo a rigorous testing
routine which ensures that the equipment is fit for use immediately after
commissioning and secures a long and trouble free life for them.
PRESS RELEASE:
YET
ANOTHER TATA ACQUISITION IN EUROPE
Telco
Construction Equipment Company Ltd (TELCON) signs deal to acquire controlling
stake in SERVIPLEM S.A, an European Construction Equipment Company based in
Zaragoza, Spain
SERVIPLEM
ranks amongst global top six in transit mixers, dry bulk tankers and pumps.
Helps TELCON to enter the concrete value chain.
Acquisition
provides TELCON opportunity on full range service and play in two important
growth economies – India and China.
Telco Construction Equipment Company Limited (TELCON), a
leader in the Construction Equipment Sector in India, signed an agreement with
the existing shareholders of SERVIPLEM S.A, Spain for acquisition of their 79%
stake in the Company. In the spirit of partnership, the existing owners will
continue to be associated with the venture and own the remaining 21%.
Speaking on the occasion of signing the agreement, Mr
Ranaveer Sinha, Managing Director of Telcon said that this acquisition is of
great strategic importance and will add impetus to its plan to be a US$ 2
Billion company by 2012. Serviplem, which focuses on manufacturing and sale of
transit mixers, dry bulk tanks and pumps. The technology will help Telcon to
enter the concrete value chain with a number of offerings.
Serviplem also has a presence in China through a Joint
Venture which can also be leveraged. With the acquisition, Telcon can drive
growth in two important growth economies viz. India and China. Mr Sinha said
that Serviplem and Telcon will work together to identify opportunities and
leverage their presence in the global market.
With this acquisition, the TATA GROUP will have a significant
presence in the Aragon Region in Spain as it is already present in the region
through its partnership with Hispano Carrocera S.A., a Bus Body Building
company, and its recently opened Branch Office at Zaragoza.
Speaking on Telcon’s future growth plans, Mr Sinha mentioned
that the Company’s growth plans are in line with expectations and that he is
constantly on the look out for strengthening its product portfolio through
technology transfers, partnerships and other acquisitions.
ABOUT
TELCON
Telcon is a subsidiary of Tata Motors and focuses on the
Construction Equipment Sector of the $60 Bn Tata Group of India. It ranks 47th
in the world on turnover and plans to be in the top 25 by 2012 by positioning
itself by full range product and service offerings to its customers. Telcon is
a joint venture promoted by Tata Motors Limited, India (60%) and Hitachi
Construction Machinery Company Limited, Japan (40%). Hitachi is amongst the top
5 Construction Equipments Companies in the World.
ABOUT
SERVIPLEM S.A
Serviplem is a Spanish company, with headquarters in
Zaragoza, leader in Spain, with its Baryval brand in the manufacturing,
marketing and servicing of transit mixers having a market share of 60%. Their
activities include the manufacturing of aluminium tanks for dry bulk transport
and commercial presence with several other products in the cement and concrete
markets. Serviplem exports 35% of its turnover to the five continents and,
since 2001, is active in China through its majority stake in a manufacturing
company set up with an important local partner.
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.46.88 |
|
UK Pound |
1 |
Rs.82.97 |
|
Euro |
1 |
Rs.64.99 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
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 |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
78 |
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 |
|