MIRA INFORM REPORT

Report Date :

10.01.2012

IDENTIFICATION DETAILS

Name :	TRACTORS AND FARM EQUIPMENT LIMITED
Registered Office :	861, Anna Salai, Chennai – 600002, Tamilnadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	28.11.1960
Com. Reg. No.:	18-04337
Capital Investment / Paid-up Capital :	Rs.120.000 Millions
CIN No.: [Company Identification No.]	U29129TN1960PLC004337
TAN No.: [Tax Deduction & Collection Account No.]	CHET00112A
PAN No.: [Permanent Account No.]	AAACT2761Q
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing and Marketing of a range of Tractors, Plastic Injection Moulds, Batteries, Trailers, Implements and Accessories.
No. of Employees :	2000 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Aa (75)

RATING		STATUS	PROPOSED CREDIT LINE
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large

Maximum Credit Limit :	USD 68000000
Status :	Excellent
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and reputed engineering company of Amalgamation Group, a well-known industrial house of South India. 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 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 :	861, Anna Salai, Chennai - 600 002, Tamil Nadu, India
Tel. No.:	91-44-28228782/ 28008782/ 28279073
Fax No.:	91-44-28260224
E-Mail :	info@tafe.com pbs@tafe.co.in
Website :	http://www.tafe.com
Area :	15000 sq. ft.
Location :	Owned
Corporate Office :	35, Nugambakkam High Road, Pottipatti Plaza, Chennai - 600 034, Tamilnadu
Tel. No.:	91-44-28279073
Fax No.:	91-44-28260224/ 21111111
E-Mail :	info@tafe.com
Area :	10,000 sq. ft.
Location :	Leased
Management Development Consultancy Centre:	105, Dr. Radhakrishnan Salai, Mylapore, Chennai-600004, Tamilnadu, India
Tel. No.:	91-44-28476872
Fax No.:	91-44-28472572
E-Mail :	webmaster@tafe.co.in
Factory 1 :	Huzur Gardens, Sembium, Chennai - 600 011, Tamilnadu, India
Tel. No.:	91-44-25375861/ 25371535/ 25375862/ 25375867/ 25375355
Fax No.:	91-44-25372478/ 5375865
Factory 2 :	10/205, Kalladaipatti, P O – 624201, Dindigul District, Tamilnadu, India
Tel. No.:	91-4543-254602-04/254476
Fax No.:	91-4543-54515
Factory 3 :	Plot No.1, KIADB Industrial Area, Doddaballapur – 561203, District – Bangalore, Karnataka, India
Tel. No.:	91-08119- 223560

DIRECTORS

AS ON 23.08.2011

Name :

Mr. Srinivasan Natesan

Designation :

Director

Address :

T19, VI Avenue, Besant Nagar – 600 090, Tamilnadu, India

Date of Birth/Age :

27.07.1931

Date of Appointment :

22.02.1995

Din No.:

00004195

Other Directorships :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	L65191TN1985PLC012362	INDIA CEMENTS CAPITAL LIMITED	Director	10/10/1990	10/10/1990	-	Active	NO
2	L85110KA1948PLC000545	ADOR MULTI PRODUCTS LIMITED	Director	5/7/1993	5/7/1993	24/07/2008	Active	NO
3	U29129TN1960PLC004337	TRACTORS AND FARM EQUIPMENT LIMITED.	Director	22/02/1995	22/02/1995	-	Active	NO
4	L85110KA1915PLC000740	UNITED BREWERIES (HOLDINGS) LIMITED	Director	25/08/1997	25/08/1997	-	Active	NO
5	L01132TZ1913PLC000350	THE PERIA KARAMALAI TEA AND PRODUCE COMPANY LIMITED	Director	10/9/1997	10/9/1997	2/8/2007	Active	NO
6	U63011MH1993PTC129858	UT WORLDWIDE (INDIA) PRIVATE LIMITED	Alternate director	7/12/1997	7/12/1997	-	Active	NO
7	U31400TN1955PLC080755	AMCO BATTERIES LIMITED	Director	13/06/1998	13/06/1998	21/09/2011	Active	NO
8	L21010AP1964PLC001008	THE ANDHRA PRADESH PAPER MILLS LIMITED	Director	4/9/1998	4/9/1998	-	Active	NO
9	L01132TZ1922PLC000234	THE UNITED NILGIRI TEA ESTATES COMPANY LIMITED	Director	30/06/1999	30/06/1999	-	Active	NO
10	U65991TN1994PTC026666	FAIRMEANS INVESTMENTS PRIVATE LIMITED	Director	22/08/1999	22/08/1999	15/12/2008	Active	NO
11	U67190TN2000PTC044564	PATERSON CONSULTING GROUP PRIVATE LIMITED	Director	28/03/2000	28/03/2000	-	Active	NO
12	L63011AP1995PLC020121	GATI LIMITED	Director	18/10/2000	18/10/2000	-	Active	NO
13	L31909KA1974PLC020010	ADOR FONTECH LIMITED	Director	21/10/2004	21/10/2004	-	Active	NO
14	U29211TN2005PLC055476	TAFE MOTORS AND TRACTORS LIMITED	Director	24/02/2005	24/02/2005	-	Active	NO
15	L85110GJ1975PLC054824	ESSAR PORTS LIMITED	Director	28/04/2005	28/04/2005	22/05/2011	Active	NO
16	L26942TN1946PLC000931	THE INDIA CEMENTS LIMITED	Director	7/8/2009	30/09/2006	-	Active	NO
17	L05190KA2004PLC033485	MCDOWELL HOLDINGS LIMITED	Director	28/12/2006	6/11/2006	-	Active	NO
18	U67200TN2002PTC048428	UNIQUE RECEIVABLE MANAGEMENT PRIVATE LIMITED	Director	24/11/2006	24/11/2006	27/05/2011	Active	NO
19	U52321TN1992PTC022428	S.G.P.EXIM PRIVATE LIMITED	Director	22/01/2007	22/01/2007	4/10/2009	Active	NO
20	L29221TN1956PLC000204	BEST AND CROMPTON ENGG. LIMITED	Director	22/09/2007	31/01/2007	-	Active	NO
21	U29309TN1996PTC036527	SCM MICROSYSTEMS (INDIA) PRIVATE LIMITED	Director	27/06/2008	30/06/2007	-	Active	NO
22	L32109MH1970PLC014509	UB ENGINEERING LIMITED	Director	1/8/2008	14/09/2007	-	Active	NO
23	U74899DL1987PTC027143	INDAIR CARRIERS PRIVATE LIMITED	Alternate director	29/09/2007	29/09/2007	-	Active	NO
24	L52599TN1961PLC028758	REDINGTON (INDIA) LIMITED	Director	24/07/2009	26/07/2008	-	Active	NO
25	U61200GJ2010PLC060285	ESSAR SHIPPING LIMITED	Director	9/9/2011	23/05/2011	-	Active	NO
26	U63090TN2009PLC072875	KARTIKEN LOGISTICS LIMITED	Additional director	12/8/2011	12/8/2011	-	Active	NO

Name :

Mrs. Mallika Srinivasan

Designation :

Director

Address :

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

Date of Birth/Age :

19.11.1959

Date of Appointment :

22.12.1994

Din No.:

00037022

Other Directorships :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U45201TN1983PTC010043	TRUST PROPERTIES DEVELOPMENT CO PRIVATE LIMITED	Director	27/06/1983	27/06/1983	-	Active	NO
2	U15499TN1992PLC023544	TAFE ACCESS LIMITED	Director	4/5/1994	4/5/1994	-	Active	NO
3	U29129TN1960PLC004337	TRACTORS AND FARM EQUIPMENT LIMITED.	Whole-time director	22/12/2009	27/12/1994	-	Active	NO
4	U80100AP1997NPL036631	INDIAN SCHOOL OF BUSINESS	Director	29/09/2002	29/09/2002	-	Active	NO
5	U50300TN2003PLC051918	TAFE REACH LIMITED	Director	7/11/2003	7/11/2003	-	Active	NO
6	U29211TN2005PLC055476	TAFE MOTORS AND TRACTORS LIMITED	Director	24/02/2005	24/02/2005	-	Active	NO
7	U01132TN2006PLC061095	EMERALD HAVEN ESTATES LIMITED	Director	13/09/2006	13/09/2006	27/11/2007	Active	NO
8	L15491WB1962PLC031425	TATA GLOBAL BEVERAGES LIMITED	Director	1/9/2009	22/10/2008	-	Active	NO
9	L01132TZ1922PLC000234	THE UNITED NILGIRI TEA ESTATES COMPANY LIMITED	Director	25/01/2011	25/01/2011	-	Active	NO
10	U34107TN2001PTC047925	STANADYNE AMALGAMATIONS PRIVATE LIMITED	Director	30/03/2011	30/03/2011	-	Active	NO

Name :

Mr. Ramesh Chander Banka

Designation :

Whole Time Director

Address :

New No.6 Old No.14, 1^st Avenue, Harrington Road, Chetpet, Chennai – 600031, Tamilnadu, India

Date of Birth/Age :

15.10.1934

Date of Appointment :

06.08.1999

DIN No.:

00036997

Other Directorships :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U29129TN1960PLC004337	TRACTORS AND FARM EQUIPMENT LIMITED.	Whole-time director	1/4/2009	6/8/1999	Active	NO
2	U29211TN2005PLC055476	TAFE MOTORS AND TRACTORS LIMITED	Whole-time director	21/08/2009	24/02/2005	Active	NO
3	U15499TN1992PLC023544	TAFE ACCESS LIMITED	Director	25/01/2011	25/01/2011	Active	NO

Name :

Mr. Majundar Laxman Satyanarainrao

Designation :

Director

Address :

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

Date of Birth/Age :

19.02.1932

Date of Appointment :

22.02.1995

DIN No.:

00208969

Other Directorships :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U28930TN1962PTC004872	L.M.VAN MOPPES DIAMOND TOOLS INDIA PRIVATE LIMITED	Director	21/02/1977	21/02/1977	-	Active	NO
2	U15499TN1992PLC023544	TAFE ACCESS LIMITED	Director	28/09/1992	28/09/1992	-	Active	NO
3	U29129TN1960PLC004337	TRACTORS AND FARM EQUIPMENT LIMITED.	Director	22/02/1995	22/02/1995	-	Active	NO
4	U28939TN1914PLC000008	ADDISON AND COMPANY LIMITED	Whole-time director	1/11/2009	2/9/1995	-	Active	NO
5	U34300TN2003PLC051919	TAL PRECISION PARTS LIMITED	Director	7/11/2003	7/11/2003	-	Active	NO
6	U28991KA1984PTC006227	KUDUMA FASTENERS PRIVATE LIMITED	Nominee director	14/07/2004	14/07/2004	-	Active	NO
7	U27209TN1976PLC007164	ALPUMP LIMITED	Director	30/06/2005	30/06/2005	-	Active	NO
8	U31400TN1955PLC080755	AMCO BATTERIES LIMITED	Director	30/09/2010	26/04/2010	21/09/2011	Active	NO

Name :

Mr. Hubertus Muhlhauser

Designation :

Director

Address :

Baechaustrasse 89, Beach 8806, Switzerland

Date of Birth/Age :

07.10.1969

Date of Appointment :

01.04.2009

DIN No.:

02662218

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 23.08.2011

Names of Shareholders	No. of Shares
Simpson and Company Limited, India	9148918
A. Krishnamoorthy	60
J. Sankaran	120
Associates Printers (Madras) Limited, India	600
Agco Limited, England	2850000
Mallika Srinivasan	140
S Ramanujachari	2
Lakshmi Venu	5
Sudarshan Venu	5
Master Shriram Murali	150
Total	12000000

AS ON 23.08.2011

Equity Shares Break Up	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	23.75
Bodies corporate	76.25
Total	100.00

BUSINESS DETAILS

Line of Business :

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

Products :

Item Code No.	Product Description
870130.09	Tractors
392690.09	Plastic injection moulds components
850710.00	Electric accumulators - lead acid

GENERAL INFORMATION

No. of Employees :

2000 (Approximately)

Bankers :

· Central Bank of India,

Addison Buildings, 803 Anna Salai, Chennai – 600002, Tamilnadu, India

· State Bank of India,

Corp. Accts. Gr. Br. Greams Road, Chennai – 600002, Tamilnadu, India

· HDFC Bank Limited,

HDFC Bank House Senapati Bapat Marg, Lower Parel (West), Mumbai – 400013, Maharashtra, India

· ICICI Bank

· Standard Chartered Bank

Facilities :

Secured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Rupee Term Loans Secured
Rupee term loans banks secured	0.000	482.841
Total	0.000	482.841
Notes: 1. Repayable within one year NIL 2. The Company has repaid the entire loan balance during the year along with the interest. Of the total loan balance of Rs.480.000 millions, the loans to the extent of Rs.240.000 millions were secured on a pari passu basis by way of hypothecation on Block Assets, including Plant and Machinery and by way of an equitable mortgage of immovable properties situated at Madurai and Chennai in the state of Tamilnadu excluding residential property worth Rs. 176.300 millions and immovable properties situated at Bangalore and Mysore in the state of Karnataka of the Company’s Tractor and Gears Divisions and subject to prior charges in favour of the lenders for working capital facilities over other tangible movable assets of the Company such as Stock in trade, goods, present and future receivables and the balance loan of Rs. 240.000 millions was secured on a pari passu basis by way of hypothecation on specific moveable Plant and Machinery of the Company 3. The Company has Working Capital facilities of Rs. 280.000 millions which are secured by hypothecation of current assets and are also guaranteed by the Holding company and the ultimate Holding company
Unsecured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Public Deposits Unsecured
Fixed Deposits Unsecured	252.593	171.023
Total	252.593	171.023
Note: 1. Fixed deposits repayable within one year 58.755 Millions 2. Deposits held by Directors 229.943 Millions

Banking Relations :	--
Auditors :
Name :	Price Waterhouse and Company Chartered Accountants
Address :	32, Khader Nawaz Khan Road, Chennai- 600034, Tamilnadu, India
Holding Company :	Simpson And Company Limited CIN No.: U65991TN1925PLC002345
Fellow Subsidiary company :	Addison and Company Limited CIN No.: U28939TN1914PLC000008 Addisons Paints And Chemicals Limited. CIN No.: U24222TN1948PLC000025 Amalgamations Repco Limited CIN No.: U35999TN1967PLC005566 Amco Batteries Limited CIN No.: U31400TN1955PLC080755 Associated Printers (Madras) Private Limited CIN No.: U22110TN1950PTC000036 George Oakes Limited CIN No.: U50300TN1956PLC000758 Higginbothams Private Limited CIN No.: U52396TN1950PTC000871 India Pistons Limited CIN No.: U35999TN1949PLC000951 IP Rings Limited CIN No.: L28920TN1991PLC020232 L. M. Van Moppes Diamond Tools India Private Limited CIN No.: U28930TN1962PTC004872 Simpson And General Finance Company Limited CIN No.: U65190TN1938PLC002355 Speed-A-Way Private Limited CIN No.: U51909TN1938PTC002347 Sri Rama Vilas Service Limited CIN No.: U29214TN1938PLC002346 Stanes Amalgamated Estates Limited CIN No.: L01132TZ1946PLC000180 Stanes Motors South India Limited CIN No.: U50101TZ1930PLC000171 T Stanes And Company Limited CIN No.: L02421TZ1910PLC000221 The Madras Advertising Company Private Limited CIN No.: U74300TN1954PTC001514 Wallace Cartwright and Company Limited, London Wheel And Precision Forgings India Limited CIN No.: U28910TN1951PLC003308 Shardlow India Limited CIN No.: U35990TN1960PLC004235
Ultimate Holding Company :	Amalgamations Private Limited CIN No.: U35999TN1938PTC000019
Associates :	A G C O Corporation Amalgamations Valeo Clutch Private Limited CIN No.: U29130TN1997PTC037909 Amco Saft India Limited CIN No.: U85110KA1996PLC021517 Kuduma Fasteners Private Limited CIN No.: U28991KA1984PTC006227 Stanadyne Amalgamations Private Limited CIN No.: U34107TN2001PTC047925 The United Nilgiri Tea Estates Company Limited CIN No.: L01132TZ1922PLC000234
Subsidiaries :	Alpump Limited CIN No.: U27209TN1976PLC007164 Southern Tree Farms Limited CIN No.: U01132TN1986PLC013469 TAFE Access Limited CIN No.: U15499TN1992PLC023544 TAFE Motors and Tractors Limited CIN No.: U29211TN2005PLC055476 TAFE Reach Limited CIN No.: U50300TN2003PLC051918 TAL Precision Parts Limited CIN No.: U34300TN2003PLC051919 · TAFE USA Inc · TAFE International Traktor VeTarim Ekipmani Sanayi Ve Ticaret Limited, Sirketi

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
12000000	Equity Share	Rs.10/- each	Rs. 120.000 Millions
2000000	Redeemable Preference Shares	Rs. 10/- each	Rs. 20.000 Millions0
	Total		Rs. 140.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
12000000	Equity Share	Rs.10/- each	Rs.120.000 Millions

Note:

Of the above 10000000 Equity Shares were allotted as fully paid-up by way of Bonus Shares by Capitalization of General Reserve 9,149,100 Equity Shares are held by Simpson and Company Limited, the Holding company and its nominees.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		120.000	120.000	120.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		16945.487	12914.243	9844.963
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		17065.487	13034.243	9964.963
LOAN FUNDS
1] Secured Loans		0.000	482.841	604.134
2] Unsecured Loans		252.593	171.023	154.561
TOTAL BORROWING		252.593	653.864	758.695
DEFERRED TAX LIABILITIES		159.000	170.000	200.000
TOTAL		17477.080	13858.107	10923.658
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2369.787	2411.041	2438.631
Capital work-in-progress		173.043	17.811	60.370
INVESTMENT		9614.576	6688.163	3879.671
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2776.443	2107.468	1686.415
	Sundry Debtors	3680.970	2979.463	2903.509
	Cash & Bank Balances	3624.734	4206.397	3574.176
	Other Current Assets	180.604	189.822	98.789
	Loans & Advances	2933.603	1837.070	983.685
Total Current Assets		13196.354	11320.220	9246.574
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	6615.166	5315.236	4504.320
	Other Current Liabilities	924.671	951.481
	Provisions	336.843	312.411	197.268
Total Current Liabilities		7876.680	6579.128	4701.588
Net Current Assets		5319.674	4741.092	4544.986
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		17477.080	13858.107	10923.658

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	37940.826	29626.489	23325.082
		Other Income	1785.459	1037.238	742.276
		TOTAL (A)	39726.285	30663.727	24067.358
Less	EXPENSES
		Raw Materials	26699.016	19938.652	17234.242
		Other Manufacturing Expenses	1065.088	779.335	3127.205
		Employee Cost	1978.037	1645.306	1223.163
		Administrative, Selling and Other Expenses	3495.832	2915.549	0.000
		TOTAL (B)	33237.973	25278.842	21584.610
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		6488.312	5384.885	2482.748
Less	FINANCIAL EXPENSES (D)		84.517	105.769	124.367
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		6403.795	5279.116	2358.381
Less/ Add	DEPRECIATION/ AMORTISATION (F)		249.293	238.008	227.900
	PROFIT BEFORE TAX (E-F) (G)		6154.502	5041.108	2430.481
Less	TAX (H)		1844.000	1656.000	904.225
	PROFIT AFTER TAX (G-H) (I)		4310.502	3385.108	1526.256
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1104.923	0.000	NA
Less	APPROPRIATIONS		2279.258	2280.185	NA
	BALANCE CARRIED TO THE B/S		3136.167	1104.923	NA
	EARNINGS IN FOREIGN CURRENCY
		Manufactured Goods	6581.434	3454.580	2981.489
		Traded Goods	854.211	967.394	0.000
	TOTAL EARNINGS		7435.645	4421.974	2981.489
	IMPORTS
		Raw Materials	NA	397.725	549.325
		Stores & Spares	NA	12.380	5.384
		Capital Goods	NA	65.490	157.354
		Components ands Dies	NA	4.494	2.232
		Trading Goods	NA	291.755	307.040
	TOTAL IMPORTS		NA	771.844	1021.335
	Earnings Per Share (Rs.)		205.26	282.09	127.19

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	10.85	11.04	6.34
Net Profit Margin (PBT/Sales)	(%)	16.22	17.02	10.42
Return on Total Assets (PBT/Total Assets}	(%)	39.54	36.71	20.80
Return on Investment (ROI) (PBT/Networth)		0.36	0.39	0.24
Debt Equity Ratio (Total Liability/Networth)		0.49	0.57	0.55
Current Ratio (Current Asset/Current Liability)		1.68	1.72	1.97

LOCAL AGENCY FURTHER INFORMATION

TRACTORS

The Company sold during the year 77,351 tractors, a 21.11 percent growth over the previous years 63,867. The Company maintained its position as the country’s largest exporter of tractors for the second year in succession. The outlook for 2011-12 appears promising with a good growth in agricultural credit, strong crop prices and an overall agricultural growth of 8 to 9 percent in the country. Demand patterns in the first quarter have reflected the above and the company is investing strongly in further development of the supply chain and manufacturing capacity. Export demand is expected to grow robustly with Tafes traditional markets showing strong growth trends augmented by the demand from Agcos distribution channels. However, inflation pressure appears to be unavoidable with fuel price rises and input costs.

ENGINEERING PLASTICS

This Division has reported an increase in sales of 37 percent and won Best Vendor awards from Toyota Kirloskar Motors and GE Healthcare. Its ability to develop new products and maintain high quality standards have been its strengths which is reflected in the growing customer base in the auto segement.

POWER SOURCE

This Division, engaged in the manufacture and sale of batteries, has recorded a sales growth of 15.5 percent. High cost of electric power and unpredictability in lead prices have been areas of concern. However, initiatives Tractors and Farm Equipment Limited Chennai REPORT of the Board of Directors to the Shareholders at the Fiftieth Annual General Meeting to be held at the Administrative Office of the Company, No. 35, Nungambakkam High Road, Chennai 600 034, on Tuesday, the 23rd August 2011 at 11.15 a.m. in these respects have been put in place and are expected to increase the profitability. The Amco Best line of imported VRLA batteries have been well accepted by the market. Discussions are afoot with the overseas partners for bringing VRLA industrial batteries within the Company’s manufacturing range.

FORM 8

Corporate identity number of the company	U29129TN1960PLC004337
Name of the company	TRACTORS AND FARM EQUIPMENTS LIMITED
Address of the registered office or of the principal place of business in India of the company	861, Anna Salai, Chennai – 600002, Tamilnadu, India pbs@tafe.co.in
This form is for	Modification of Charge
Charge identification number of the modified	10132202
Type of charge	Immovable Property
Particular of charge holder	Central Bank of India Addison Building, Anna Salai, Chennai - 600 002, Tamilnadu, India cbiaddison@vsnl.net
Nature of instrument creating charge	Term Loan of Rs. 400.000 Millions with State Bank of India has been settled
Date of instrument Creating the charge	28.07.2009
Amount secured by the charge	Rs.1600.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest 7.5% Terms of Repayment Quarterly Installments Margin: Nil Extent and Operation of the charge Rs. 1100.000 Millions in respect of Central Bank of India, Addison Buildings, Chennai-600002 and Rs. 500.000 Millions in respect of State Bank of India, Chennai-600006
Date of acquisition of the property	10.11.2008
Amount of the charge	1600.000 Millions
Particulars of the property charged	As per charge ID 10132202
Short particulars of the property charged	As per charge ID 10132202
Particulars of the present modification	Term Loan of Rs. 400.000 Millions has been settled with State Bank of India. Original charge of Rs. 2000.000 Millions in favour of Central Bank of India and State Bank of India stands now modified to Rs. 1600.000 Millions

FIXED ASSETS

· Freehold Land

· Building

· Plant and Machinery

· Furniture, Fixture and Equipments etc.

· Vehicles

website Details

COMPANY PROFILE:

Subject is a US$ 1 Billion tractor major incorporated in 1960 at Chennai in India, in collaboration with Massey Ferguson (now owned by AGCO corporation, USA). Subject acquired the Eicher tractors business, its engine plant at Alwar and transmissions plant at Parwanoo through a wholly owned subsidiary “TAFE Motors and Tractors Limited in 2005.

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

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

Subject Motors and Tractors Limited is a wholly owned subsidiary of company, which was set up in 2005 when TAFE acquired Eicher tractors, the Eicher engines plant at Alwar and the Eicher transmissions plant at Parwanoo. The company manufactures the Eicher brand of tractors at its plant near Bhopal at Mandidheep, diesel engines at its plant at Alwar and transmission components at Parwanoo. The Eicher brand of tractors has a distinguished heritage of 50 years in India. Known for its unique distinction of offering a range of both air and water cooled tractors, its tractors span the 20 to 60 HP segment and have been well received in this segment. Their less than 30 HP range has commanded market pre – eminence in this segment. The diesel engines from its Alwar plant find a variety of automotive, genset and industrial applications including the telecom and retail sectors. The transmission unit at Parwanno serves in house needs as well as to other OEMs including TAFE.

HISTORY:

The Amalgamations Group entered the tractor business in 1960. Simpson and Company was already making Perkins Diesel Engines and the founder Chairman, Mr. Anantharamakrishnan's own great interest in agriculture and the Green Revolution in the making, made the group grab the opportunity to make tractors when it presented itself.

Standard Motor Products of India Limited had been assembling Massey ferguson tractors in India for Massey Ferguson India, which was the Bangalore based company handling the entire MF business in India. Massey Ferguson was looking for a company that would, in a phased manner, manufacture its tractors in India and successful negotiations with the Amalgamations Group lead to the group taking over the Bangalore operations and moving it to Madras. The new company was called Tractors and Farm Equipment Limited.

On December 15th 1960 our founder Chairman, announced at a press conference at Chennai, his plans to manufacture tractors and implements at Simpson's Industrial Estate in collaboration with Massey Ferguson of Toronto. At that time, the estimated demand for tractors in India was 12000 tractors a year and company was allocated a capacity of 7000 tractors a year. Initially 50 % of the tractor was built with indigenous content but within two years this rose to 85 %. From these early beginnings, they are proud to have risen to a turnover of US $1 Billion and a sale of 100000 tractors last year apart from the distinction of being India's largest exporter of tractors in the last financial year.

SUBSIDIARIES

· TAFE Access Limited

TAFE Access Limited is a wholly owned subsidiary of TAFE involved in the manufacture and marketing of hydraulic pumps and cylinders and panel instruments to discerning customers both in India and overseas. It has a Vehicle franchise division that markets TATA passenger vehicles in specific towns in Tamil Nadu and Skoda cars in Bangalore. TAL's hydraulic pumps and cylinder plants are located at kelambakkam near Chennai and its panel instruments plant is located at Velachery near Chennai.

· Tafe Reach Limited

Tafe Reach Limited is a vehicle franchise which distributes Tata motor vehicles in Chennai, Cuddalore and Erode.

· TAFE's Power Source Division

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

· Southern Tree Farms Limited

Southern Tree Farms Limited is a wholly owned subsidiary that grows quality teas in the Nilgiris and markets them to discerning customers in India and abroad. Its specific focus on its employees’ well being has been recognised through a premium allowed for its products. Teas from their gardens have achieved highest prices in Tea auctions.

· Kuduma Fasteners Private Limited

Kuduma Fasteners Private Limited was acquired in 2006 and is located at Bangalore. The unit produces a range of fasteners and studs. Special Fasteners are manufactured as per customer requirement. Examples include Con Rod Bolt, Counter Wt. Bolt, Balance Wt. Bolt, Brake Carrier Bolt, Cylinder Head Bolt, Hub Bolts, Square neck bolts for pipeline fittings etc.

· Alpump limited

Alpump limited was acquired by TAFE in 2005. At its plant at Perungudi near Chennai, it produces a range of oil and water pump assemblies and related components. Besides Water Pumps and Oil Pumps, Alpump also supplies Original Equipment and machined castings including Wheel cylinders. Alpump has its own foundry with 6000 tonnes per annum capacity to make Grey Iron, S G Iron and Malleable Iron castings with Automated Sand Plant and Simultaneous Jolt Squeeze and Shell Moulding machines. Alpump is certified for ISO/TS 16949: 2002 and ISO 9001: 2000 by Underwriters Laboratories Inc., USA.

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. 52.73
UK Pound	1	Rs. 81.33
Euro	1	Rs. 67.00

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	9
--LIQUIDITY	1~10	9
--LEVERAGE	1~10	8
--RESERVES	1~10	9
--CREDIT LINES	1~10	8
--MARGINS	-5~5	---
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		75

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	-

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.