MIRA INFORM REPORT

 

 

Report Date :

02.04.2012

 

IDENTIFICATION DETAILS

 

Name :

DIESEL LOCO MODERNISATION WORKS

 

 

Registered Office :

Tilak Bridge, New Delhi – 110002, Delhi

 

 

Country :

India

 

 

Year of Establishment :

1961

 

 

Capital Investment / Paid-up Capital :

Not Available

 

 

Legal Form :

Government Owned Entity 

 

 

Line of Business :

Manufacturing of various traction machines and engine blocks.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

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

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established workshop of Indian Railways, Government of India engaged in manufacturing of various traction machines and engine blocks. Trade relations are reported as fair. Payments are reported to be regular ans as per commitments.

 

Subject being a government entity can be considered normal for 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 – September 30, 2011

 

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

India

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 :

Tilak Bridge, New Delhi – 110002, Delhi, India

 

NOTE: Telephone Numbers are not available.

 

SOLE PROPRIETOR/PARTNERS/DIRECTORS

 

NOT AVAILABLE

 

BUSINESS DETAILS

 

Line of Business :

Manufacturing of various traction machines and engine blocks.

 

 

LOCAL AGENCY FURTHER INFORMATION

 

INTRODUCTION  

 

·            Introduction of Diesel Locomotives on the Indian Railways started in late 50’s, with the import of locomotives from M/s. ALCO, USA. With the setting up of Diesel Locomotive Works at Varanasi in the year 1961, the addition to the Diesel Locomotive fleet started at a regular pace.      

              

             In the earlier years of diesel operation, a limited demand of spares was met by Diesel Locomotive Works, Varanasi mainly through import, but the demand increased with the increasing size and age of the fleet.

 

·             It was in the context of the need for high precision components for maintenance support to the diesel fleet, that in the year 1979, a decision was taken to set up Diesel Component Works at Patiala. The Foundation Stone of Diesel Component Works (DCW), Patiala was laid on October 24, 1981 and production started in 1986. A decision was also taken that DCW will do midlife Rebuilding of Diesel Locomotives after a service life of 18 years. Accordingly, Phase-II of the project was sanctioned and the work of Rebuilding started in 1989. The name of DCW was changed to Diesel Loco Modernisation Works (SUBJECT) in July, 2003 to signify the modernisation of Diesel Locomotives being done in the unit.

 

HISTORY

 

SUBJECT was set up in 1981 with the assistance of World Bank. At that time Industries in India were not fully developed to manufacture diesel engine precision components to carry out the remanufacturing of various traction machines and engine blocks. SUBJECT started the components manufacturing in 1986 along with the remanufacturing of traction machines and engine blocks. Need was also felt for rebuilding of locomotives to enhance performance of locomotives by incorporating latest technological upgradations and all RDSO modifications. It was expected that with the rebuilding of locos after 18 years, the locos would become fuel efficient, shall haul heavier loads and shall be fitted with latest modern less maintenance intensive sub-assemblies and assemblies. Accordingly the rebuilding was started in SUBJECT in 1989. The shops which were set up for component manufacturing and remanufacturing of traction machines and engine blocks are under Phase-I of the project. The major shops in Phase-I are:

Shops set up under Phase-I of the project are called manufacturing shops

  • Light Machine Shop
  • Heat Treatment Shop
  • Traction Machine Shop
  • Heavy Machine Shop
  • Cylinder Liner Shop
  • Carbon Brush Shop
  • Plant Maintenance Shops
  • Tool Room, Main Receiving Station and other support facilities

Shops which came up in Phase-II i.e. when the facilities were being created for rebuilding of locomotives are under Phase-II and the shops are:

Shops set up under Phase-II of the project are called Rebuilding shops

  • Loco Rebuilding Shop
  • Power Pack Shop
  • Bogie Shop
  • Transmission Repair Shop
  • Air Brake and Pipe Shop
  • Loco Test and Paint Facilities

 

PRODUCT

 

 

SUBJECT PRODUCT RANGE

SUBJECT is engaged to manufacture various diesel components along with rebuilding of diesel electric locomotives and power packs. The activities and products are given below:

  • Mid life rebuilding/ reconditioning of WDM2 ALCO locomotive. Upgrading them from 2600HP to 3100HP and 3300 HP.
  • Incorporating various modifications to enhance the efficiency, reliability, safety of locomotive.
  • Manufacture of various type of carbon brushes used on traction machines of WDM2, WDM3A, YDM4, WDG4, WDM3C, DMU.
  • SUBJECT can undertake rebuilding of other ALCO locos received.
  • Rewinding/ reconditioning of traction motors, traction generator and traction alternators of locomotives.
  • Reconditioning of engine block of ALCO locomotives.
  • Reconditioning of power pack.
  • Reconditioning of CO-CO Bogies.
  • Manufacturing components for the above mentioned sub-assemblies.
  • The components used for these locos which are purchased from trade can also be supplied.
  • Various items of meter gauge locos such as YDM4 are also manufactured and supplied.

ROLE OF SUBJECT IN THE GROWTH OF INDIAN RAILWAYS

 

SUBJECT had been rebuilding about 72 Locomotives from 1992-93 to 2005-2006. To meet the challenges of increased traffic, SUBJECT enhanced the productivity of the workshop and was able to rebuild 86 Locomotives in 2006-07, 102 Locos in 2007-08 and 108 Locos in 2008-09.

 

SUBJECT has achieved a Record Breaking Performance of 112 Locos in 2009-10.

 

During rehabilitation, latest sub-assemblies like Microprocessor Control System, AC-DC power transmission, Fuel Efficient Engine Kits, Roller Bearing Suspension System and Traction Motors are fitted and up-gradation of Horse Power of Locomotive from 2600 HP to 3100/3300 HP is done. This ensures that the trip schedules of Locos are extended to       30/40 days and Locos give better reliability, availability, improved performance during service with better fuel efficiency.

 

SALIENT FEATURES OF SUBJECT

·         ISO 9001:2000 and ISO 14001:2004 Certified Production Unit

·         Total workforce on roll is 3783 including 87 officers.

·         Workshop area (m2)

837936

·         Covered area in shops (m2)

88194

·         Township area (m2)

1416800

·         Electrical Energy Consumption    (lacs of units/year)

200

·         Total staff quarters

1767

·         No. of beds in Hospital

30

 

 PRESENT ACTIVITIES AT SUBJECT

 

·         Rehabilitation, Upgradation and Modernisation of Diesel Locos.

·         Supplying new Power Packs to Parel Workshop and Remanufactured Power Packs to Zonal Railways.

·         Supplying Motorized Wheel sets to Zonal Railways.

·         Supply of rehabilitated Engine Blocks and Traction Machines to Zonal Railways.

·         Supplying 240 types of high precision and critical components to Zonal Railways as Maintenance support.

·         Nodal Agency for Rehabilitation of high HP Turbos.

·         Supply of all types of Carbon Brushes of Diesel Locos to Zonal Railways.

 

WORKSHOP FACILITIES AVAILABLE AT SUBJECT

 

Shops set up under Phase-I of the project are called Manufacturing Shops

·         Light Machine Shop

·         Heat Treatment Shop

·         Traction Machine Shop

·         Heavy Machine Shop

·         Cylinder Liner Shop

·         Carbon Brush Shop

·         Plant Maintenance Shops

·         Tool Room


Shops set up under Phase-II of the project are called Rebuilding shops

 

·         Loco Rebuilding Shop

·         Transmission Repair Shop

·         Power Pack Shop

·         Air Brake and Pipe Shop

·         Bogie Shop

·         Loco Test and Paint Facilities

 

·         SUBJECT PRODUCTION

 

·         SUBJECT PRODUCTION PERFORMANCE OVER THE LAST TEN YEARS

 

SUBJECT Production in numbers and money value

Year

No.of Locos rebuilt

Number of subassemblies remanufactured

Value of items manufactured in LMS                           (in Cr. of Rs.)

Number of Carbon Brushes produced        (In Lacs )

Power packs

Engine Blocks

TM Armature

TG Armature

Cylinder Liners

2000-01

64

76

126

800

156

7976

41.8

5.5

2001-02

63

79

123

871

121

7826

40.8

5.9

2002-03

73

79

121

848

110

8047

45.8

5.9

2003-04

73

85

127

864

124

8004

46.4

5.2

2004-05

74

87

132

864

125

8402

51.2

5.3

2005-06

73

93

160

872

135

8450

64.5

6.0

2006-07

86

112

172

956

127

9101

76.1

5.4

2007-08

102

136

187

1050

97

10051

81.5

5.5

2008-09

108

139

192

1276

64

10534

87.7

6.1

2009-10

112

156

211

1423

39

8565

117.29

4.8

  

OVERALL PRODUCTION VALUE

   

PRODUCTION PERFORMANCE DURING 2009-10

 

During 2009-10, performance of SUBJECT has been the best ever since its inception. SUBJECT has achieved highest production figures in all major areas of activities, i.e. Loco Rebuilding, Power Pack Assemblies, Supply of Motorised Wheel Sets, Remanufacture of Traction Motors etc.

 

SUBJECT has rebuilt 112 locos and achieved Turn Over of Rs. 8530.000 Millions in  009-10 - first time in its history.

 

Production performance vis-ŕ-vis Targets fixed for the year has been as under:

 

S.

No.

Item

 

Target

2009-10

 

Out turn

2009- 10

 

%age improvement

1.           

Locomotives Rebuilt

108

112

4

2.           

Power Packs (for ZRs)

12

26

117

3.           

Power Packs (Total)

144

156

8

4.           

Motorised Wheel Sets

300

370

23

5.           

TM assemblies

1100

1276

16

6.           

TM Magnet Frames

1150

1322

15

7.           

TM Armatures

1100

1423

29

8.           

Total out turn (in Rs.Cr.)      

674.26

852.95

27

 

UP-GRADATION OF LOCOMOTIVE DURING REBUILDING:

 

SUBJECT has turned out 04 nos. Locos after up-gradation from 2600 HP to 3300 HP Microprocessor Control Rebuilt Locomotives during the financial year 2009-10. The major modifications incorporated in these locos include 3300 HP Power Pack with 18mm Fuel Injection Pump, New Engine Block, Microprocessor Control System, Microprocessor Control Governor, Red Brass Mechanical Bonded Radiator for improved cooling, Roof Mounted Dynamic Brake Resistance, capable    for self-load testing to dissipate 3300 HP during the self-load box.

IMPROVEMENTSAND UP-GRADATIONS IMPLEMENTED and PLANNED ON REBUILT LOCOMOTIVES FOR ENHANCED AND IMPROVED PERFORMANCE:

 

The following performance enhancement and technological upgradations have already been implemented on all Rebuilt Locomotives in 2009-10 :

 

1.

3 RV Piston Kit along with 3 RV Cylinder Liner

 

2.

Roof Mounted Dynamic Brake Resistance

 

3.

18 mm Fuel Injection Pump

 

4.

Double ferrule fittings in air brake pipes

 

5.

Pre-lubrication feature on Locomotive

 

6.

Heat shrinkable tube on cable terminals

 

7.

Pressure switches RT-200 PBX in place of RT-116

 

8.

Gear case with TPU seal

 

9.

Improved FIP tube with auto frettage

 

10.

De-aerator in lieu of bubble collector

 

11.

Exhaust manifold thermal insulation kit

 

12.

EMD type auto drain valve

 

13.

Modified hand brake

 

 

Following technological up-gradations have been planned on at least 30% of Rebuilt Locomotives in 2010-11:

 

 

1.

500 AH Batteries

2.

Aero quip hoses in fuel oil circuit

3.

EMD type cut-out cocks

4.

Self Cleaning lube oil filters

5.

Axle box with CRU bearings

6.

REMMLOT System

7.

Extended Range Dynamic Braking

8.

LCD Display on control stand (DIALS)

9.

ATHS fabricated bogies

10.

EMD type modified dresser coupling

11.

Computer Controlled brakes (with roof mounted DBR)

12.

Disposable type car body filters with louvers

13.

Polycarbonate glass for cab and window

14

Improved fuel relief and regulating valves

15

Sealed conduits for cables

16

EMD type headlight

17

Electronic fuel level sensor

18

Modified air reservoir

19

FRP type cover over FIP

20

Non-metallic axle box crown liner

21

Improved stick type master controller

  

PRESS RELEASE

 

Patiala, 26thJanuary, 2012

 

63rd Republic Day was celebrated at Diesel Loco Modernisation Works, Patiala, a Production Unit of Indian Railways. Shri A. K. Kansal , Chief Administrative Officer hoisted the national flag and took salute from contingent of Railway Protection  Force and Bharat Scouts and Guides. This was followed by cultural programme presented  by the students of Kendriya Vidyalaya and SUBJECT Public School, Patiala.

 

Paying rich tributes to martyrs, Shri Kansal reminded  SUBJECT staff that, qualities like patriotism , hard work, unity, mutual co-operation and  justice are the need of the hour to  preserve  hard earned “Freedom”

 

Shri. Kansal while addressing, lauded the performance of SUBJECT employees for achieving the highest ever production figure in just nine months of the year by surpassing  the target of Rs. 7662.600 Millions by 919.300 Millions during  financial year 2011-12. SUBJECT has been assigned to manufacture 25 new ALCO Locomotives, out of which 12 Locomotives have been manufactured upto Dec. 2012 . SUBJECT has been entrusted the task of manufacturing 50 New Locomotives during financial year 2012-13.

 

 In the arena of sports also, SUBJECT has scaled new heights. SUBJECT Basketball team won gold medal in 17th Baba Farid Gold Cup Basketball.

 

 While concluding, he appealed to all SUBJECT employees to maintain National Integration and harmony and continuously strive to improve the quality and production at minimum cost, After the function, sweets were distributed among the children. Fruits were distributed among the patients by Mrs Neeru Kansal President of SUBJECT Women’s Welfare Organization, along with other members of the organization  in SUBJECT Hospital.

 

 


CMT REPORT (Corruption, Money Laundering and 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.51.15

UK Pound

1

Rs.81.79

Euro

1

Rs.68.34

 

 


 

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 and 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

-

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.