MIRA
INFORM REPORT
|
Report Date : |
30.06.2011 |
IDENTIFICATION DETAILS
|
Name : |
TIL LIMITED |
|
|
|
|
Registered
Office : |
1, |
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|
Country : |
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|
|
|
Financials (as
on) : |
31.03.2010 |
|
|
|
|
Date of
Incorporation : |
10.05.1974 |
|
|
|
|
Com. Reg. No.: |
21041725 |
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|
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|
Capital
Investment / Paid-up Capital : |
Rs.100.303
millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L74999WB1974PLC041725 |
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|
|
|
Legal Form : |
A Public Limited Liability Company.
The Company’s Shares are Listed on the Stock Exchanges. |
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|
Line of Business
: |
The Company’s
business segments are organised on product lines as follows: Material Handling
Solutions (MHS) - engaged in manufacturing and marketing of various Material Handling
Equipment namely (Reach stacker,
Level Luffing Cranes), Self Loading Truck Cranes etc. and dealing in spares
and providing services to related equipment. Construction and
Mining Solutions (CMS) - engaged as a dealer for Caterpillar Inc. USA
for their earthmoving, construction mining equipments, spares etc. and
providing related services in Eastern and Northern India and Power Systems
Solutions (PSS) - engaged in assembly, supply, erection and commissioning of
Generating Sets powered by Caterpillar engines and dealing in spares and
providing related services in Eastern and Northern India and |
|
|
|
|
No. of Employees
: |
1639 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (65) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 7932000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
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|
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Litigation : |
Clear |
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Comments : |
Subject is an old and well established company having fine track.
Financial position of the company appears to be sound. Trade relations are
reported as fair. Business is active. Payments are reported to be regular and
as per commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office : |
1, |
|
Tel. No.: |
91-33-24693732 - 36 (5 Lines)/ 66332000/ 2845 |
|
Fax No.: |
91-33-24692143/ 24693731 |
|
E-Mail : |
|
|
Website : |
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|
|
|
|
Factory 1 : |
517, |
|
Tel. No.: |
91-33-25531352/ 1393/ 1882/ 1981/ 2318/ 2325 |
|
Fax No.: |
91-33-25532546/ 5971 |
|
|
|
|
Factory 2 : |
Plot No.11, Site No.4, Industrial Area, Sahibabad - 201 010, District |
|
Tel. No.: |
91-0120- 277 7945 |
|
Fax No.: |
91-0120- 277 0365 |
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|
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|
CHENNAI - Southern Regional Office : |
|
|
Tel. No.: |
91-44-2827 6103/ 0723/ 7518/ 0729 |
|
Fax No.: |
91-44-2827 9681 |
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|
|
|
MUMBAI - Western Regional Office
: |
307 Centre Point, |
|
Tel. No.: |
91-22-6643 0194 / 95 |
|
Fax No.: |
91-22-6643 0904 |
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|
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|
Chennai Workshop : |
Plot No.26B/5, SIDCO Industrial Estate Ambattur, Chennai – 600 098, |
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Branch Office : |
Located at: v
v Dhanbad v v Jharsuguda v v v Neyveli v Ramagundam v Vizag v Gandhidham |
DIRECTORS
As on 31.03.2010
|
Name : |
Mr. A. Mazumdar |
|
Designation : |
Chairman |
|
Address : |
1, |
|
|
|
|
Name : |
Mr. Sumit Mazumder |
|
Designation : |
Vice Chairman and Managing Director |
|
Address : |
1, |
|
|
|
|
Name : |
Mr. S. K. Bhatnagar |
|
Designation : |
Director and President (w.e.f. 1st April, 2010) |
|
Address : |
1, |
|
|
|
|
Name : |
Mr. R. L. Gaggar |
|
Designation : |
Independent Non
Executive Director - Solicitor and
Advocate |
|
Address : |
6, |
|
|
|
|
Name : |
Mr. U. V. Rao |
|
Designation : |
Independent Non
Executive Director - Former Chief
Executive and Managing Director – L and T Limited |
|
Address : |
3294, 12th
|
|
|
|
|
Name : |
Mr. G. Swarup |
|
Designation : |
Independent Non
Executive Director - Managing
Director of Paharpur Cooling Towers Limited |
|
Address : |
Paharpur Cooling
Towers Limited, Paharpur House, 8/1/B, |
|
|
|
|
Name : |
Dr. T. Mukherjee |
|
Designation : |
Independent Non
Executive Director - Former Deputy
Managing Director of TATA Steel Limited |
|
Address : |
6A, Road # 10,
Circuit House Area (East), |
|
|
|
|
Name : |
Mr. K. B. Saha |
|
Designation : |
Director - Nominee of Life Insurance Corporation of |
|
Address : |
Life Insurance
Corporation of |
KEY EXECUTIVES
|
Name : |
Mr. Debashis Nag |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2011
|
Category of Shareholders |
No. of Shares |
Percentage of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
714,647 |
7.12 |
|
|
2,539,128 |
25.31 |
|
|
3,253,775 |
32.44 |
|
|
|
|
|
|
1,930,828 |
19.25 |
|
|
1,930,828 |
19.25 |
|
Total shareholding of Promoter and Promoter Group (A) |
5,184,603 |
51.69 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
593,767 |
5.92 |
|
|
7,553 |
0.08 |
|
|
1,638,853 |
16.34 |
|
|
164,030 |
1.64 |
|
|
2,404,203 |
23.97 |
|
|
|
|
|
|
555,118 |
5.53 |
|
|
|
|
|
|
1,538,463 |
15.34 |
|
|
260,284 |
2.59 |
|
|
87,594 |
0.87 |
|
|
74,038 |
0.74 |
|
|
10,426 |
0.10 |
|
|
3,130 |
0.03 |
|
|
2,441,459 |
24.34 |
|
Total Public shareholding (B) |
4,845,662 |
48.31 |
|
Total (A)+(B) |
10,030,265 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
10,030,265 |
- |
(1)
Indian
Individuals
/ Hindu Undivided Family
Individual
shareholders holding nominal share capital up to Rs.0.100 million BUSINESS DETAILS
|
Line of Business : |
The Company’s
business segments are organised on product lines as follows: Material
Handling Solutions (MHS) - engaged in manufacturing and marketing of
various Material Handling Equipment namely (Reach stacker,
Level Luffing Cranes), Self Loading Truck Cranes etc. and dealing in spares
and providing services to related equipment. Construction and
Mining Solutions (CMS) - engaged as a dealer for Caterpillar Inc. USA
for their earthmoving, construction mining equipments, spares etc. and
providing related services in Eastern and Northern India and Power Systems
Solutions (PSS) - engaged in assembly, supply, erection and commissioning of
Generating Sets powered by Caterpillar engines and dealing in spares and
providing related services in Eastern and Northern India and |
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|
Products : |
|
PRODUCTION STATUS (AS ON 31.03.2010)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity* |
Actual
Production |
|
Diesel-Hydraulic/
Electric Cranes/ Carrier Units (Trucks) |
Nos. |
1,414 |
220 |
84 |
|
Diesel Generating Sets |
Nos. |
500 |
400 |
325 |
|
Self-Propelled
Rubber Tyred Container Handling |
Nos. |
Not Applicable |
30 |
9 |
|
|
|
|
|
|
* As certified by the Management
GENERAL INFORMATION
|
No. of Employees : |
1639 (Approximately) |
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Bankers : |
v Bank of v Union Bank of v ING Vysya Bank Limited v State Bank of v State Bank of v State Bank of v Axis Bank Limited v
CITI Bank N.A. |
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Facilities : |
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Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Price Waterhouse Chartered Accountants |
|
|
|
|
Subsidiaries : |
v
Myanmar Tractors Limited v
Tractors Nepal Private Limited v
TIL Overseas Pte. Limited v
Tractors India Private Limited |
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
20000000 |
Equity Shares |
Rs.10/- each |
Rs.200.000 millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10030265 |
Equity Shares |
Rs.10/- each |
Rs.100.303
millions |
|
|
|
|
|
Note: Of the above
equity shares, 1,992,078 shares were allotted as fully paid up, pursuant to a
scheme of amalgamation in October, 1984, without payment being received in
cash.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
100.303 |
100.303 |
100.303 |
|
|
2] Equity Warrants |
0.000 |
87.815 |
87.815 |
|
|
3] Reserves & Surplus |
1882.666 |
1397.943 |
1123.720 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1982.969 |
1586.061 |
1311.838 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
499.000 |
685.125 |
662.498 |
|
|
2] Unsecured Loans |
594.818 |
449.165 |
125.063 |
|
|
TOTAL BORROWING |
1093.818 |
1134.290 |
787.561 |
|
|
DEFERRED TAX LIABILITIES |
59.674 |
30.946 |
33.450 |
|
|
|
|
|
|
|
|
TOTAL |
3136.461 |
2751.297 |
2132.849 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1090.043 |
920.702 |
833.014 |
|
|
Capital work-in-progress |
195.364 |
187.334 |
105.783 |
|
|
|
|
|
|
|
|
INVESTMENT |
74.972 |
74.866 |
74.866 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1465.139
|
1462.172 |
1344.579 |
|
|
Sundry Debtors |
1533.793
|
1071.452 |
997.539 |
|
|
Cash & Bank Balances |
1.826
|
2.954 |
2.185 |
|
|
Other Current Assets |
121.425
|
173.820 |
149.370 |
|
|
Loans & Advances |
934.048
|
621.859 |
460.441 |
|
Total
Current Assets |
4056.231
|
3332.257 |
2954.114 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
941.675
|
653.470 |
727.035 |
|
|
Other Current Liabilities |
402.414
|
462.241 |
645.381 |
|
|
Provisions |
936.060
|
648.151 |
462.512 |
|
Total
Current Liabilities |
2280.149
|
1763.862 |
1834.928 |
|
|
Net Current Assets |
1776.082
|
1568.395 |
1119.186 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
3136.461 |
2751.297 |
2132.849 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Sales and Services (Net) |
8107.502 |
8096.057 |
6917.252 |
|
|
|
Selling Commission Earned |
219.589 |
197.805 |
167.662 |
|
|
|
Rental from Machinery |
188.735 |
130.528 |
101.795 |
|
|
|
Other Income |
225.157 |
102.100 |
110.138 |
|
|
|
TOTAL (A) |
8740.983 |
8526.490 |
7296.847 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials and Direct Manufacturing Expenses |
6293.199 |
6363.872 |
5596.383 |
|
|
|
Expenses |
1364.046 |
1309.833 |
917.543 |
|
|
|
TOTAL (B) |
7657.245 |
7673.705 |
6513.926 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1083.738 |
852.785 |
782.921 |
|
|
|
|
|
|
|
|
|
Less |
INTEREST (D) |
159.950 |
203.878 |
166.343 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
923.788 |
648.907 |
616.578 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
168.928 |
143.203 |
114.045 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
754.860 |
505.704 |
502.533 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
286.228 |
182.996 |
180.100 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
468.632 |
322.708 |
322.433 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
923.486 |
679.989 |
468.983 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
General
Reserve |
46.863 |
32.271 |
64.487 |
|
|
|
Proposed
Dividend: Equity Shares |
60.182 |
40.121 |
40.121 |
|
|
|
Tax on Dividend |
9.997 |
6.819 |
6.819 |
|
|
BALANCE CARRIED
TO THE B/S |
1275.076 |
923.486 |
679.989 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of goods calculated on FOB basis |
62.756 |
78.721 |
5.581 |
|
|
|
Commission, others (including Dealer’s profit) |
340.756 |
234.013 |
108.551 |
|
|
|
Technical Fees |
173.964 |
74.274 |
12.262 |
|
|
|
Dividend from Subsidiary Companies |
0.000 |
0.000 |
15.249 |
|
|
TOTAL EARNINGS |
577.476 |
387.008 |
141.643 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials with Components |
364.698 |
510.885 |
426.547 |
|
|
|
Spare Parts (excluding items in transit at year-end) |
1182.561 |
205.301 |
1.728 |
|
|
|
Capital Goods |
0.000 |
7.491 |
0.824 |
|
|
|
Machines (Trading Items) |
1330.411 |
1598.737 |
1185.703 |
|
|
TOTAL IMPORTS |
2877.670 |
2322.414 |
1614.802 |
|
|
|
|
|
|
|
|
|
|
Earnings Per Share
(Rs.) |
|
|
|
|
|
|
- Basic |
46.72 |
32.17 |
33.12 |
|
|
|
- Diluted |
46.72 |
32.17 |
32.28 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
31.03.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
385.100 |
527.600 |
532.800 |
623.100 |
|
Total Expenditure |
339.400 |
462.600 |
468.200 |
489.700 |
|
PBIDT (Excl OI) |
45.700 |
65.000 |
64.600 |
133.400 |
|
Other Income |
4.500 |
1.200 |
94.600 |
76.600 |
|
Operating Profit |
50.200 |
66.200 |
159.200 |
210.000 |
|
Interest |
4.200 |
3.200 |
5.000 |
11.500 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
46.000 |
63.000 |
154.200 |
198.500 |
|
Depreciation |
9.500 |
9.900 |
10.600 |
11.600 |
|
Profit Before Tax |
36.500 |
53.100 |
143.600 |
186.900 |
|
Tax |
12.800 |
18.200 |
47.700 |
29.400 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
23.700 |
34.900 |
95.900 |
157.500 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
23.700 |
34.900 |
95.900 |
157.500 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
5.36
|
3.78 |
4.42 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
9.31
|
6.25 |
7.26 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
14.67
|
11.89 |
13.27 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.38
|
0.32 |
0.38 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.70
|
1.83 |
2.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.78
|
1.89 |
1.61 |
LOCAL AGENCY FURTHER INFORMATION
PERFORMANCE:
Turnover including
income from operations and Other Income achieved for the year was Rs.8879.400 millions
which was increased from Rs.8757.900 millions over the previous year. The
profit before tax improved to Rs.754.900 millions from Rs.505.700 millions in
the previous year, registering an increase of 49%.
MYANMAR TRACTORS LIMITED
The Wholly Owned Subsidiary
Company, Myanmar Tractors Limited, in the Union of Myanmar, achieved a turnover
including income from operations and Other Income of Rs.530.600 millions
compared to Rs.417.800 millions in the previous year and a profit before tax of
Rs.37.900 millions compared to Rs.24.400 millions in the previous year.
TIL OVERSEAS PTE. LIMITED:
The Wholly Owned
Subsidiary Company, TIL Overseas Pte. Limited, in
TRACTORS
The Wholly Owned
Subsidiary Company, Tractors Nepal Private Limited, in
TRACTORS
The newly formed Wholly Owned Subsidiary Company, Tractors India Private
Limited, in
FINANCE:
After providing
Rs.286.200 millions as Provision for Taxation, Rs.70.200 millions (including
Dividend Tax of Rs.10.000 millions) distributed as Equity Dividend. Rs.351.600 millions
has been carried forward to Balance Sheet. The Reserve and Surplus (excluding
Revaluation Reserves) of the Company increased from Rs.1325.900 millions to
Rs.1812.200 millions and the Shareholders’ Fund (excluding Revaluation
Reserves) increased from Rs.1514.100 millions to Rs.1912.500 millions.
PREFERENTIAL ISSUE
OF WARRANTS:
During the year,
no option for conversion of warrants into Equity shares issued to Promoters and
ENAM Group had been exercised by them. The time frame for conversion of the
warrants lapsed in terms of relevant rules governing such issue. The
unsubscribed warrants stand forfeited.
MANAGEMENT DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE AND DEVELOPMENT
The business is organized into 3 major groups and the revenue percentage
for 2009-10 of the business divisions are given below:
|
Material Handling Solutions |
20% |
|
Construction and Mining Solutions |
56% |
|
Power System Solutions |
24% |
The financial year
2009-10 is the third year of the 11th 5-year Plan wherein the
Government has planned investments towards infrastructural development to the
tune of Rs.2250000.000 millions, which the Management Consultants McKinsey in
their report mentioned that the Government has revised the figure to Rs.3750000.000
millions. Although the Indian economy has emerged as the fastest growing
economy after
The growth rate in
a) Growth in
industrial sector by 9.4%.
b) Growth in
manufacturing sector by 10.3%
c) Growth in
Mining and Quarrying sector by 10.3%
d) Growth in Services Sector by 8.2%
The infrastructure
industry which constitutes the core sector registered a robust growth of 7.2%
in March – the highest in 2009-10. The core sector data is encouraging and is
expected to give the overall Index of Industrial Production (IIP) a strong
foothold. Infrastructure is definitely going to be one of the key growth
drivers for the Indian economy. The cement, coal and steel industries have
already begun registering a turnaround. The realty business looks positive with
demands from housing and commercial sectors. The roads and highways sector has
very aggressive plan to achieve a target of constructing 20 kms a day. The
process for awarding such contracts has been restructured and simplified in
order to ensure that projects are awarded to those with strong credentials and
high net worth. The Honorable Minister for Roads and Highways has already
undertaken a number of Road Shows abroad to attract Global Contractors of repute
to bid for such contracts in
Many key projects
during the financial year 2009-10 that were deferred are now expected to be
finalized during 2010-11 and 2011-12. Other construction projects, which were
also stalled, are showing signs of revival and expected to be back on track by
Aug 2010. According to a report published in March 2010 by domestic broking
major, Edelweiss Capital,
Infrastructure development being the key priority, for current plan
period, the government has targeted investments of
• $150 billion in
Power
• $ 80 billion in
Roads and Highways sectors
• $ 65 billion for
Railways,
• $ 22 billion for
Ports
• $ 8 billion for Airports
For the 12th
five year plan (2012-17), Prime Minister’s Committee on Infrastructure has
projected that
With the
Government’s growing thrust on the infrastructure segment, the construction
equipment sector is going to witness an exponential growth. The growth rate
forecast for commercial, industrial and residential sectors pose an optimistic
picture. According to a study conducted by leading management consulting firm
McKinsey, Indian Earthmoving and Construction Equipment (ECE) industry has the
potential to grow five-fold from its current size of US$ 2.3 billion to about
US$ 12-13 billion by 2015, growing at a CAGR of 24%.
With economic
activity picking up, Indian ports are also showing signs of turnaround.
According to the Planning Commission, there is an investment opportunity of US$
25 billion by 2011-12 in
In the Railways
sector, the Annual Plan for 2010-11 envisages investment of US$ 8.99 billion,
according to data released by Press Information Bureau (PIB). Apart from fast
track projects, the Indian Railways Ministry has also decided to diversify infrastructure
facilities including cultural complexes, housing, schools, parking lots and
super-fast passenger rail corridors, all of which will open new areas of
opportunities. The Company is taking all possible measures to optimize the huge
potential in the Ports and Railways sectors.
The demand for the
power sector continues to be robust as the shortfall in power generation
continues to be 13% at peak demand and per capita usage is only 10% of the
global average. These indicate that there is going to be a continuous increase
in demand for power generation which can be provided through generator sets for
user segments like textile, IT, Real Estate, Auto ancillaries, Petroleum, etc.
In the
Construction and Mining Sector, the growth is likely to be 25 - 27% during 2010
- 11. In addition, because of the Indian economy maturing there will be
increased demand for Rental and Used Equipment as well. The Company has
initiated all necessary steps required to seize the emerging opportunities.
SEGMENTWISE
PERFORMANCE:
Material Handling
Solutions (MHS):
Material Handling
Solutions accounted for about 20% of Company sales during the year 2009 – 10.
The overall sales for the Division were impacted on account of Economic
slowdown witnessed in the country for most part of the year.
The Division
retained its dominance in Mobile Crane market with market share exceeding 60%.
Margins also improved during the year due to various measures taken to reduce
costs in spite of lower sales. This Division also improved its order backlog
position as on 31/3/10 to Rs.460.000 millions compared to Rs.200.000 millions a
year earlier. However, the performance in respect of Port Equipment and
Component exports suffered due to Global slowdown and downturn in Container
traffic in the ports across
Mining segment
continued to have confidence in TIL cranes. The Company received orders from a
Navratna PSU for 14 new cranes valued at Rs.270.000 millions during the year.
The Company has
been serving Indian Defense over the decades for varied range of Material
Handling equipment. Defense again reaffirmed their confidence by placing order
for 12 nos. cranes valued at Rs.60.000 millions. Orders from the Defense
Authorities for larger quantities are in the pipeline.
With the objective
of quantum improvement in plant throughput and costs, MHS Division of the
Company has embarked on an ambitious “Accelerated Improvement Program” This
program involves all sections of employees with focus on participation from
shop floor workmen.
In line with the
Division’s plan to continuously enhance its Product offerings, new Technology
Transfer agreements have been made with Astec Inc,
This Division also
entered into an agreement with Potain Cranes, a global leader in Tower Cranes
and part of Manitowoc Crane Group for marketing of Potain Tower Cranes in the
The Division with its robust expansion plans and diverse product
portfolio is well positioned to leverage the growth opportunities in the Indian
Infrastructure space.
Construction and
Mining Solutions (CMS):
Construction and
Mining Solutions accounted for 56% of the Company’s revenue. Difficult industry
and economic conditions continued to prevail for the major part of the
financial year 2009-10. In terms of unit sales, 850 units were sold with an
order backlog of 88 units valued at Rs.870.000 millions.
During 2009-10,
the Company achieved breakthroughs in the mining segment. An established
Spanish contractor making their entry in
Product and
service support continue to be a priority for the Company. As a testimony to
this, Maintenance and Repair Contract (MARC) with two major groups have been
renewed for another 5 years. Furthermore, the Company has signed a customer
service agreement with a major infrastructure organization for 100 machines
deployed in
In their
continuous endeavor to be a total solutions provider, the Company invested in a
state-of-the-art Component Rebuild Centre at Asansol (
Power Systems
Solutions (PSS):
Power Systems
Solutions accounted for 24% of the revenue during the period and in terms of
units, 503 engines were sold during the year including those sold in the
Petroleum segment. The Company’s order backlog for this business is Rs.1360.000
millions. A prestigious order (4 Units) from one of the major infrastructure
Company for high capacity engines of 2,000 KVA each was secured for the Kishanganga Project – the
total value of this being approx. Rs.120.000 millions. Furthermore, 10 DG Sets
in the 725 / 1,000 KVA range have been contracted for another new business
account based out of Hardwar for a value of Rs.50.000 millions. Both these new
businesses demonstrate the Company’s strength in the larger capacity engine
business. Product Support continues to be a focus area with the ONGC Annual
Maintenance and Parts Contract rolling on successfully since last year.
In the Petroleum
segment, the Company has secured for the first time a contract from
The Rental Fleet
for the engine business crossed 90 Units reflecting a business growth of around
50%.
With the
initiatives on increasing footprint and field resource, the Company
significantly improved the market coverage and added 428 new customers in the
CMS business and 261 new customers in the PSS business, to the existing
customer base.
Formation of
Tractors India Private Limited (TIPL):
During the
financial year 2009-10, the Company decided to transfer the Caterpillar
Business to Tractors India Private Limited (TIPL), a 100% wholly owned
subsidiary company of Subject with effect from 1st April 2010. The Caterpillar
business consisting of the Construction and Mining Solutions and Power System
Solutions will be managed by TIPL. The formation of this subsidiary Company has
been done to have laser focus on the Caterpillar Business and achieve higher
growth both in terms of Sales and Profits, and also to have a more dynamic
customer-centric organization. This initiative also conforms to the
re-alignment of Caterpillar’s “India Acceleration Program”, which is also in
line with Caterpillar’s vision 2020 and its enterprise strategy. TIPL has
further re-structured the organization by creating four strategic business
units or territorial dealerships. This re-structuring is on the basis of the
geographical profile and boundaries, and also keeping the industry segments
under consideration. The benefits the Company will derive out of this
re-structuring are as follows:-
• Improved market
coverage – extensive foot print
• Better proximity
to customers
• Quantum leap in
customer delight
• Enhanced
customer loyalty
• Increased market
share
• Sustainable growth in sales and profits
The formal signing
of the Territorial Dealership Agreements with Caterpillar has been completed to
create the most effective and significant business and market distribution.
With the formation of TIPL, the Company corroborates the fact that the Customer
ultimately remains the nucleus of all business activities. The Head Office for
TIPL will remain in Kolkata. The strategic direction, policies and operational
standards will be seamless and uniform in all the four territories. Each
territory will be independent profit centers with Head Offices in Kolkata,
OPPORTUNITIES AND
THREATS:
During the first 9
months of the Financial Year 2009 / 10 the economy was recovering and the
investments by the Government in the infrastructure sector was not significant.
There was an expectation that the economy will recover significantly from
January 2010 and the budget for 2010 / 11 will also be a stimulus for increase
in investments in the infrastructure sector. Although the GDP growth has been
estimated at 7.1% for 2009/10, there has also been deferment of investments in
the infrastructure sector in that Financial Year. The investments in the
infrastructure industry is likely to increase in 2010 / 11 and 2011 / 12 as
many key projects are expected to be funded which includes building of national
highways, construction of expressways, metro rail projects, flyovers,
commercial projects including IT parks, hotels, doubling of major ports cargo
capacity, privatization of mining and upgrading metro airports. All these will
require additional investments in the construction, mining and material
handling equipment. During 2009 / 10 the Company has initiated various
strategies through the following:
• Market
penetration by opening of new Branches,
• Expansion of manufactured
range of products through technical collaboration agreements,
• Operational
excellence,
• Focused
organization structure,
• Human Resource
Development.
The Company
continues to pursue its objective of sustainable growth in terms of the top line
and the bottom line, maximizing the operational efficiency and also follow the
best practices for attainment of the highest standards of quality, safety and
productivity.
Since the Company
imports material required to manufacture finished products and also imports
capital goods, the dependence on such imports is significant and any adverse
Foreign Exchange fluctuation will have an impact in the business process. In
addition to this, any economic slowdown in terms of further deferment of
Government expenditure towards infrastructure sector and steep hike in steel
prices will also have an impact on the business. The Company has been facing
competition both locally and internationally and the recent development in this
respect has been the availability of Chinese products, which can pose a threat
for the growth of the business.
OUTLOOK:
Backed by the
strong domestic demand and robust business confidence coupled with Government’s
thrust towards infrastructural developments, the Indian economy is projected to
grow at 8.5% in 2011 – 12 according to the World Economic Outlook report (2010)
by the International Monetary Fund (IMF).
Infrastructure
sector in
The business opportunities in the coming years look very positive and
encouraging and the Company is committed to its Nation Builder role. The
Company is determined to take advantage of the growth potential and be a
partner in the building of ‘Modern India’.
DISCUSSION ON
FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:
Total income of
TIL for the year stands at Rs.8879.400 millions vis-ŕ-vis Rs.8757.900 millions
in 2008-09. PBT for the year stands at Rs.754.800 millions compared to
Rs.505.700 millions in the previous year. EBIDTA for the year is Rs.1083.800
millions (i.e. an increase of 27%) vis-ŕ-vis Rs.852.800 millions in 2008-09. On
an activity basis, TIL transacted Rs.10504.000 millions in 2009-10 vis-ŕ-vis
Rs.9996.000 millions in 2008-09 registering an increase of 5%.
AUDITED STANDALONE
FINANCIAL RESULTS FOR THE YEAR ENDED 31ST MARCH 2011
(Rs.
in millions)
|
Particulars |
Year ended 31st March 2011 |
|
1. a Net Sales/Income from Operations |
2056.900 |
|
b Other Operating Income |
11.700 |
|
Total Operating Income (a+b) |
2068.600 |
|
2 Expenditure |
|
|
a (Increase)/Decrease in Stock in Trade and Work-in-Progress |
(89.800) |
|
b Consumption of Raw Materials |
1050.800 |
|
c Purchase of Traded Goods |
233.800 |
|
d Employee Cost |
299.500 |
|
e Depreciation ( including amortisation ) |
41.600 |
|
f Other Expenditure |
265.600 |
|
g Total |
1801.500 |
|
3 Profit from Operations before Other Income, Interest and Exceptional
Items (1-2) |
267.100 |
|
4 Other Income |
176.900 |
|
5 Profit before Interest and Exceptional Items (3+4) |
444.000 |
|
6 Interest |
23.900 |
|
7 Profit after Interest but before Exceptional Items (5-6) |
420.100 |
|
8 Exceptional Items - - |
-- |
|
9 Profit (+) /Loss (-) from Ordinary Activities before tax (7+8) |
420.100 |
|
10 Tax Expenses |
108.100 |
|
11 Net Profit(+)/Loss(-) from Ordinary Activities after Tax (9-10) |
312.000 |
|
12 Extraordinary Item (net of tax expenses) |
-- |
|
13 Net Profit(+)/Loss(-) for the period (11-12) |
312.000 |
|
14 Paid-up Equity Share Capital (Face Value of Rs.10/- each) |
100.300 |
|
15 Reserves Excluding Revaluation Reserve (As per Balance Sheet of Previous Accounting Year) |
2054.000 |
|
16 Earnings per share (EPS) (Rs.) |
|
|
a - Basic |
31.10 |
|
b - Diluted |
31.10 |
|
17 Public Shareholding |
|
|
-Number of Shares |
4845662 |
|
-Percentage of Shareholding |
48.31% |
|
18 Promoters and Promoter Group Shareholding |
|
|
a Pledged/Encumbered |
|
|
- Number of shares |
NIL |
|
- Percentage of shares (as a % of the total shareholding of Promoter and
Promoter Group) |
NIL |
|
- Percentage of shares (as a% of the total share capital of the
Company) |
NIL |
|
b Non-encumbered |
|
|
- Number of shares |
5184603 |
|
- Percentage of shares (as a % of the total shareholding of Promoter
and Promoter Group) |
100.00% |
|
- Percentage of shares (as a% of the total
share capital of the Company) |
51.69% |
NOTES:
1 The above audited results, drawn in terms of Clause 41 of the 'Listing Agreement'
have been reviewed by the Audit Committee and approved by the Board of
Directors at their meeting held on 17th May, 2011 at Kolkata.
2. a Pursuant to the Scheme of Arrangement under Sections 391 to 394 of
Companies Act, 1956, with effect from 1st April, 2010 for transfer
of the undertaking of the Company pertaining to dealership business of
Caterpillar (comprising of Construction and
Mining Solutions and Power System Solutions) on a going concern basis to
Tractors India Private Limited (TIPL), a wholly owned subsidiary of the
Company, as approved by the Hon'ble High Court at Kolkata on 12th
July, 2010, the assets and liabilities as on 1st April, 2010
aggregating Rs.3078.200 millions and Rs.2119.800 millions
respectively, have been transferred to TIPL for a consideration of 44,89,430
number of Equity Shares of Rs.10/-
each at a premium of Rs.203.48
each of TIPL amounting to Rs.958.400
millions, on a slump sa basis.
b In view of the aforesaid Scheme of Arrangement being implemented with
effect from 1st April, 2010 :
i. The operations of the Company for the year ended 31st
March, 2011 pertains only to Material Handling Solutions (i.e. manufacturing
and marketing of various Material Handling Equipments namely Mobile Cranes,
Port Equipments, Self Loading Truck Cranes etc. and dealing in spares and
providing services to related equipments). With effect from 1st
April, 2010 the Company has only one reportable segment as envisaged in
Accounting Standard-17 on 'Segment Reporting', hence information pertaining to
segment, as contemplated under Clause 41 of the Listing Agreement is not
applicable for the Company.
ii. The results for the year ended 31st March, 2011 are not
comparable with that of the corresponding previous year.
3 During the quarter ended 31st March, 2011 no investor
complaint was received. There were no investor complaints pending at the
beginning of the quarter and at the end of the quarter.
4 The Board of Directors have recommended Dividend @ Rs.6/- each on Equity Shares (Face Value of Rs.10/- each) for the Financial year ended 31st
March 2011.
CONTINGENT LIABILITIES IN RESPECT OF –
|
Particulars |
31.03.2010 (Rs.
in millions) |
|
Sales Tax Matters under dispute [Net of payments Rs.3.243 millions (Previous year Rs.0.300 million)] |
6.546 |
|
Income Tax Matters under dispute * Excludes disputed Income Tax matters, in view of favourable Tribunal
decision in similar case. |
1.809* |
|
Service Tax matters under dispute [Net of payments Rs.20.208 millions (Previous year Rs.9.807 millions)] |
96.261 |
|
Excise Duty matters under dispute [Net of payments Rs.1.648 millions (Previous year Rs.1.648 millions)] |
5.329 |
FIXED
ASSETS
Tangible
Assets
v
v
v
Leasehold
Buildings
v
Freehold
Buildings
v
Plant
and Machinery
v
Tubewell
v
Furniture
and Equipment
v
Motor
Vehicles and Motor Cycle
Intangible
Assets
v
Technical
Know-how
v
Software
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources including
but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.94 |
|
|
1 |
Rs.71.91 |
|
Euro |
1 |
Rs.64.60 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
65 |
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 |
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 |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.