MIRA
INFORM REPORT
|
Report Date : |
11.05.2012 |
IDENTIFICATION DETAILS
|
Name : |
TIL LIMITED |
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Registered
Office : |
1, |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
10.05.1974 |
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Com. Reg. No.: |
21-041725 |
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Capital Investment
/ Paid-up Capital : |
Rs.100.303 Millions |
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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 Exchange. |
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Line of Business
: |
Manufacturer of Cranes. |
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No. of Employees
: |
711 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (62) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 8900000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a 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 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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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|
A1 |
A1 |
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Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
|
Registered Office : |
1, Taratolla Road Garden Reach, Kolkata – 700024, West Bengal, India |
|
Tel. No.: |
91-33-24693732-36 (5 Lines) 91-33-66332000 / 2845 |
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Fax No.: |
91-33-24692143 / 24693731 |
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E-Mail : |
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Website : |
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Factory 1 : |
517, B.T. Road, Kamarhatty, Kolkata - 700 058,
West Bengal, India |
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Factory 2 : |
Plot No.11, Site-4, Sahibabad
Industrial Area, Sahibabad, Ghaziabad - 201 010, Uttar Pradesh, India |
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. A. Mazumdar |
|
Address : |
1, Taratolla Road, Garden
Reach, Kolkata
- 700 024, West Bengal, India |
|
Designation : |
Chairman |
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|
Name : |
Mr. Sumit Mazumder |
|
Address : |
1, Taratolla Road, Garden
Reach, Kolkata
- 700 024, West Bengal, India |
|
Designation : |
Vice Chairman and Managing Director |
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|
Name : |
Mr. S. K. Bhatnagar |
|
Designation : |
Director and President |
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|
Name : |
Mr. R. L. Gaggar |
|
Address : |
6, Old Post Office Street, 3rd Floor, Kolkata -
700 001, West Bengal, India |
|
Designation : |
Solicitor and Advocate |
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|
Name : |
Mr. U. V. Rao |
|
Address: |
3294, 12th A Main Street, HAL-IInd Stage, Bangalore - 560 008, Karnataka, India |
|
Designation : |
Former Chief Executive and Managing Director
- L&T Limited |
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Name : |
Mr. G. Swarup |
|
Address: |
Paharpur Cooling Towers Limited, Paharpur
House, 8/1/B, Diamond Harbour Road, Kolkata - 700 027, West Bengal, India |
|
Designation : |
Managing Director of Paharpur
Cooling Towers Limited |
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|
Name : |
Dr. T. Mukherjee |
|
Address : |
6A, Road # 10, Circuit House Area (East),
Jamshedpur -
831 001, Jharkhand, India |
|
Designation : |
Former Dy.
Managing Director of TATA Steel Limited |
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|
Name : |
Mr. K. B. Saha |
|
Address : |
Life Insurance Corporation of India Executive
Director (HRD/OD/CP), Central Office, HRD Department, YOGAKSHEMA, 5th Floor, Nariman Point, Mumbai - 400 021, Maharashtra,
India |
|
Designation : |
Nominee of Life Insurance Corporation of
India |
KEY EXECUTIVES
|
Name : |
Mr. Sekhar Bhattacharjee |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2012
|
Category
of Shareholders |
No. of Shares |
Percentage of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
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|
714647 |
7.12 |
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|
2539128 |
25.31 |
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|
3253775 |
32.44 |
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|
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|
1930828 |
19.25 |
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|
1932828 |
19.25 |
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Total shareholding of Promoter and Promoter Group (A) |
5184603 |
51.69 |
|
(B) Public Shareholding |
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|
446313 |
4.45 |
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|
2503 |
0.02 |
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|
1635947 |
16.31 |
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|
269757 |
2.69 |
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|
2354520 |
23.47 |
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|
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|
561585 |
5.60 |
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|
1575026 |
15.70 |
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|
244219 |
2.43 |
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|
110312 |
1.10 |
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|
86154 |
0.86 |
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|
21028 |
0.21 |
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|
3130 |
0.03 |
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|
2491142 |
24.84 |
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Total Public shareholding (B) |
4845662 |
48.31 |
|
Total (A)+(B) |
10030265 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
-- |
-- |
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|
-- |
-- |
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|
-- |
-- |
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|
-- |
-- |
|
Total (A)+(B)+(C) |
-- |
-- |
(1)
Indian
Individuals
/ Hindu Undivided Family
Individual
shareholders holding nominal share capital up to Rs.0.100 millionEquity Share Break up (Percentage of Total Equity)
|
Category |
Percentage |
|
Foreign holdings( Foreign institutional
investor(s), Foreign companie(s) Foreign financial
institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others |
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|
Bodies corporate |
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Directors or relatives of Directors |
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Other top fifty shareholders |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Cranes. |
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Products : |
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Brand Names : |
·
“CATERPILLAR” ·
“MANITOWOC” ·
“GROVE” ·
“POTAIN” ·
“ASTEC” ·
“TRIMBLE” ·
“SEM” ·
“ALLMAND” ·
“PACECO CORP.” ·
“FAMAK S.A” ·
“MITSUI MIKE” |
PRODUCTION STATUS
As on 31.03.2011
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity* |
Actual
Production |
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Diesel-Hydraulic/ Electric Cranes
/ |
Nos. |
1414 |
220 |
111 |
|
Diesel Generating Sets -- |
Nos. |
500 |
400 |
-- |
|
Self-Propelled Rubber Tyred Container Handling Mobile Crane -- |
Nos. |
Not Applicable |
30 |
17 |
Note : * As
certified by the Management
GENERAL INFORMATION
|
No. of Employees : |
711 (Approximately) |
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Bankers : |
·
Bank of India ·
Union Bank of India ·
ING Vysya Bank Limited ·
State Bank of Bikaner
and Jaipur ·
State Bank of India ·
State Bank of Hyderabad ·
Axis Bank Limited ·
CITI Bank N.A. |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Price Waterhouse Chartered Accountants |
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Subsidiaries : |
·
Myanmar
Tractors Limited ·
Tractors
Nepal Private Limited ·
TIL
Overseas Pte. Limited ·
Tractors
India Private Limited |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
20000000 |
Equity Shares |
Rs.10/- each |
Rs.200.000 Millions |
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|
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
10030265 |
Equity Shares |
Rs.10/- each |
Rs.100.303
Millions |
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|
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|
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 |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
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1] Share Capital |
100.303 |
100.303 |
100.303 |
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2] Equity Warrants |
0.000 |
0.000 |
87.815 |
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3] Reserves & Surplus |
2123.137 |
1882.668 |
1397.943 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
2223.440 |
1982.971 |
1586.061 |
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LOAN FUNDS |
|
|
|
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1] Secured Loans |
440.925 |
499.000 |
685.125 |
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2] Unsecured Loans |
0.000 |
594.818 |
449.165 |
|
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TOTAL BORROWING |
440.925 |
1093.818 |
1134.290 |
|
|
DEFERRED TAX LIABILITIES |
25.784 |
59.674 |
30.946 |
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|
|
|
|
|
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TOTAL |
2690.149 |
3136.463 |
2751.297 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
919.486 |
1090.043 |
920.702 |
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Capital work-in-progress |
86.447 |
195.364 |
187.334 |
|
|
|
|
|
|
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INVESTMENT |
1038.567 |
74.972 |
74.866 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
599.007
|
1465.139 |
1462.172 |
|
|
Sundry Debtors |
463.854
|
1533.793 |
1071.452 |
|
|
Cash & Bank Balances |
2.426
|
1.826 |
2.954 |
|
|
Other Current Assets |
61.388
|
121.425 |
173.820 |
|
|
Loans & Advances |
1049.968
|
934.048 |
621.859 |
|
Total
Current Assets |
2176.643
|
4056.231 |
3332.257 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
335.077
|
941.675 |
653.470 |
|
|
Other Current Liabilities |
123.321
|
402.414 |
462.241 |
|
|
Provisions |
1072.596
|
936.058 |
648.151 |
|
Total
Current Liabilities |
1530.994
|
2280.147 |
1763.862 |
|
|
Net Current Assets |
645.649
|
1776.084 |
1568.395 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
2690.149 |
3136.463 |
2751.297 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
2033.556 |
8107.502 |
8096.057 |
|
|
|
Selling Commission Earned |
23.260 |
219.589 |
197.805 |
|
|
|
Rental from Machinery |
0.000 |
188.735 |
130.528 |
|
|
|
Other Income |
188.635 |
255.157 |
102.100 |
|
|
|
TOTAL (A) |
2245.451 |
8770.983 |
8526.490 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials and Direct
Manufacturing Expenses |
1225.572 |
6293.199 |
6363.872 |
|
|
|
Expenses |
534.274 |
1364.046 |
1309.833 |
|
|
|
TOTAL (B) |
1759.846 |
7657.245 |
7673.705 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
485.605 |
1113.738 |
852.785 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
23.919 |
159.950 |
203.878 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
461.686 |
953.788 |
648.907 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/ AMORTISATION (F) |
41.608 |
168.928 |
143.203 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
420.078 |
784.860 |
505.704 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
108.119 |
316.228 |
182.996 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
311.959 |
468.632 |
322.708 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1275.078 |
923.486 |
679.989 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
31.196 |
46.863 |
32.271 |
|
|
|
Dividend |
60.182 |
60.182 |
40.121 |
|
|
|
Tax on Dividend |
9.763 |
9.995 |
6.819 |
|
|
BALANCE CARRIED
TO THE B/S |
1485.896 |
1275.078 |
923.486 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of goods calculated on FOB
basis |
16.153 |
62.756 |
78.721 |
|
|
|
Selling Commission (including
Dealer’s profit) |
8.044 |
340.756 |
234.013 |
|
|
|
Technical Fees |
142.981 |
173.964 |
74.274 |
|
|
TOTAL EARNINGS |
167.178 |
577.476 |
387.008 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials with Components |
500.264 |
364.698 |
510.885 |
|
|
|
Spare Parts (excluding items in
transit at year-end) |
3.156 |
1182.561 |
205.301 |
|
|
|
Capital Goods |
0.000 |
0.000 |
7.491 |
|
|
|
Machines ( Trading Items ) |
21.560 |
1330.411 |
1598.737 |
|
|
TOTAL IMPORTS |
524.980 |
2877.670 |
2322.414 |
|
|
|
|
|
|
|
|
|
|
Earnings Per Share
(Rs.) |
31.10 |
46.72 |
32.17 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
501.900 |
596.500 |
558.100 |
|
Total Expenditure |
454.500 |
531.100 |
511.300 |
|
PBIDT (Excl OI) |
47.400 |
65.400 |
46.800 |
|
Other Income |
22.300 |
198.000 |
109.500 |
|
Operating Profit |
69.700 |
263.400 |
156.300 |
|
Interest |
16.500 |
2.300 |
7.900 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
53.200 |
261.100 |
148.400 |
|
Depreciation |
12.700 |
11.600 |
12.300 |
|
Profit Before Tax |
40.500 |
249.500 |
136.100 |
|
Tax |
13.300 |
24.200 |
9.800 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
27.200 |
225.300 |
126.300 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
27.200 |
225.300 |
126.300 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
13.89
|
5.34 |
3.78 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
20.66
|
9.68 |
6.25 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
13.57
|
15.25 |
11.89 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.19
|
0.40 |
0.32 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.89
|
1.71 |
1.83 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.42
|
1.78 |
1.19 |
LOCAL AGENCY FURTHER INFORMATION
|
Check List by Info
Agents |
Available in Report
(Yes / No) |
|
1) Year of Establishment |
Yes |
|
2) Locality of the firm |
Yes |
|
3) Constitutions of the firm |
Yes |
|
4) Premises details |
No |
|
5) Type of Business |
Yes |
|
6) Line of Business• |
Yes |
|
7) Promoter’s background |
Yes |
|
8) No. of employees |
Yes |
|
9) Name of person contacted |
No |
|
10) Designation of contact person |
No |
|
11) Turnover of firm for last three years |
Yes |
|
12) Profitability for last three years |
Yes |
|
13) Reasons for variation <> 20% |
-- |
|
14) Estimation for coming financial year |
No |
|
15) Capital in the business |
Yes |
|
16) Details of sister concerns |
Yes |
|
17) Major suppliers |
No |
|
18) Major customers |
No |
|
19) Payments terms |
No |
|
20) Export / Import details (if applicable) |
No |
|
21) Market information |
-- |
|
22) Litigations that the firm / promoter |
-- |
|
23) Banking Details |
Yes |
|
24) Banking facility details |
Yes |
|
25) Conduct of the banking account |
-- |
|
26) Buyer visit details |
-- |
|
27) Financials, if provided |
Yes |
|
28) Incorporation details, if applicable |
Yes |
|
29) Last accounts filed at ROC |
Yes |
|
30) Major Shareholders, if available |
Yes |
RESTRUCTURING OF
BUSINESS
With effect from 1st April, 2010 (‘the Appointed Date’), the dealership
business of Caterpillar comprising Construction and Mining Solutions and Power
Systems Solutions carried out by the Company has been de-merged as a going
concern and vested in the wholly owned subsidiary of the Company viz., Tractors
India Private Limited (‘TIPL’) pursuant to the provisions of Sections 391 to
394 of the Companies Act, 1956 under a Scheme of Arrangement (‘the Scheme’)
sanctioned by the Hon’ble High Court at Calcutta vide
Order dated 12th July, 2010. In accordance with the Scheme, TIPL has issued
44,89,430 Equity Shares of Rs.10/- each at a premium of Rs.203.48 on every
share aggregating to Rs.958.396 Millions to the Company as the Purchase
Consideration.
In view of the above, the financial figures of the Company for the year
vis-ŕ-vis previous year are not comparable as the previous year’s figure
includes the Caterpillar business which has been de-merged from the Company and
vested with TIPL with effect from (w.e.f.) 1st April,
2010.
PERFORMANCE
On standalone basis, Turnover including income from operations and Other
Income for the year stood at Rs.2373.300 Millions vis-ŕvis
Rs.8879.400 Millions in the previous year. The profit before tax stood at
Rs.420.100 Millions vis-ŕ-vis Rs.754.900 Millions in the previous year.
Tractors India
Private Limited
The newly formed Wholly Owned Subsidiary Company, Tractors India Private
Limited, in India, achieved a turnover including income from operations and Other
Income of Rs.9111.000 Millions and earned a profit before tax of Rs.338.000
Millions.
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.351.900 Millions compared to Rs.530.600 Millions in the
previous year and a profit before tax of Rs.39.300 Millions compared to
Rs.37.900 Millions in the previous year.
TIL Overseas Pte. Limited
The Wholly Owned Subsidiary Company, TIL Overseas Pte.
Limited, in Singapore, achieved a turnover including income from operations and
Other Income of Rs.2376.100 Millions compared to Rs.1605.800 Millions in the
previous year and achieved a profit before tax of Rs.101.800 Millions compared
to Rs.109.200 Millions in the previous year. This activity is totally for and
on behalf of Myanmar Tractors Limited.
Tractors Nepal
Private Limited
The Wholly Owned Subsidiary Company, Tractors Nepal Private Limited, in
Nepal, achieved a turnover including income from operations and Other Income of
Rs.17.600 Millions compared to previous year of Rs.25.100 Millions and earned a
profit before tax of Rs.3.200 Millions compared to Rs.13.700 Millions in the
previous year.
MANAGEMENT DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE AND DEVELOPMENT
During the course of the Management Discussion
and Analysis last year, the Company mentioned that as per the report by
Management Consultant McKinsey, the revised amount proposed towards
infrastructural development by Government of India is estimated at
Rs.3750000.000 Millions. The Company also
mentioned that major investments in the infrastructure sector were to happen
and that these investments would be significant in 2011-12 which would also
conclude the 11th Five Year Plan tenure.
The Indian economy for the year 2011-12 is
looking forward to a positive growth and fiscal consolidation. The overall
macro-economic environment for industry is also very supportive and the budget
for 2011-12 indicates a sustainable economic growth. With the growth in 2010-11
now estimated at 8.6 per cent, the turnaround needs to be quick and
sustainable, although some concerns still persist such as high inflation and
temporary slowdown in the industry growth.
The growth rate in India has been far better
than other emerging economies. The effect of the global economic slowdown has
been largely contained due to proactive measures and also due to greater
reliance on domestic demand. As per the report of Central Statistics Office
(CSO), India’s Gross Domestic Product (GDP) growth has been estimated at 8.6
per cent in fiscal 2010-11 and the drivers for the overall growth in 2010-11
have been the following:-
a. Growth in industrial sector
b. Growth in manufacturing sector
c. Growth in mining and quarry sector
d. Growth in service sector
In a recent report by Asian Development Bank
(ADB), India and six other major economies in Asia will be driving the region’s
growth and could account for more than half the global Gross Domestic Product
by 2050. The Indian economy is expected to grow to a level of USD 40.4 Trillion
from USD 1.4 Trillion in 2010. This will be possible only through a faster rate
of economic growth in the next 40 years and the young workforce population in
India will act as a foundation to achieve the projected growth.
India being one of the fastest growing
economies in the world, the need for infrastructural facilities is ever
increasing across sectors. The development of adequate infrastructure has been
identified as the most critical pre-requisite for continuing the current growth
momentum of the economy. The Indian economy for 2011-12 is expected to grow at
9 per cent plus and according to UNCTAD’s World
Investment Prospect Survey 2009-11, India is the second most attractive
destination for FDI (after China) in the world. The Government of India plans
to step up its infrastructure expenditure as a percentage of the national GDP
from 6.5 per cent in 2009-10 to around 9 per cent in 2012. The Government of
India has also announced that the investments in infrastructure is expected to
total USD 1 Trillion in the 12th Five Year Plan i.e. 2012-17 compared to USD
514 Billion in the 11th Five Year Plan.
Given the Government’s planned expenditure for
infrastructure sector constituting around 48.50 per cent of total plan outlay
for FY12 – a growth of 23.03 per cent over the Union Budget 2010-11, it
indicates an increased focus on the sector.
In order to ensure development in
infrastructure, the Government of India is also making radical changes in
policy matters to promote the Public Private Partnership (PPP) module and
facilitate private investments and attract FDIs. As
per RBI Bulletin, India targets to achieve annual FDI worth USD 50 Billion by
2012 and plans to double the inflows by 2017.
The Government of India’s thrust on the
infrastructure segment will continue which will also result in exponential
growth in the Construction Equipment Sector. According to the latest study
conducted by leading Management Consultant McKinsey, Indian Earthmoving and
Construction Equipment (ECE) has the potential to grow 5-fold from its current
size to USD 13 Billion by 2015 growing at a CAGR of 24 per cent.
Construction equipment volume is expected to
increase at a CAGR of 18.1 per cent over by 2013 vis-ŕ-vis 12.3 per cent CAGR
clocked over the 2005-09 period.
The Roads and Highways will remain a key
growth driver for Indian Infrastructure growth. The National Highways Authority
of India (NHAI) has been assigned the task of awarding contracts for around 100
projects, covering 11,151 kms, over the financial
year starting w.e.f. April 1, 2011. With the
Government of India permitting 100 per cent FDI in the roads sector, most
foreign investors in the Indian roads sector have formed consortiums with
Indian companies to participate in the development of road projects in the
country. As a result, construction companies are now being rewarded with large
order books and portfolios of BOT projects. The Government plans
to construct 35,000 kms
of highways by 2014 under the NHDP with an investment of USD 60 Billion.
The Government of India’s expenditure in the
Indian Shipping and Port Sectors will continue. The ‘Maritime Agent 2020’
recently launched, envisages investments worth over USD 33 Billion in the
maritime sector. This aims to create a port capacity of around 3200 MT from 617
MT as on 31.03.2010 which will be able to handle the expected growth in traffic
of about 2500 MT by 2020. Majority of these projects are to be implemented
through the PPP route. With the increase in container traffic, there is a need
to develop container terminals and make available container handling equipment
at Ports. Containerization and container traffic at major ports grew at a CAGR
of 13 per cent between 2005-06 and 2009-10. This will create opportunities for
the requirement of container handling equipment in India.
In the Railways Sector, the Government of
India has proposed investments to the tune of Rs.57, 630 Millions for the year
2011-12 with the objective of modernizing and developing India’s Railway
infrastructure. The Indian Railways have allowed private sector entities to
operate container trains and till date agreements with 16 companies have been
entered into for supply of container services. The Indian Railways also plan to
add 25000 kms of new lines by 2020 with a major
increase in the PPP.
The demand for the Power Sector continues to
be robust as the shortfall in power generation continues to be 13 per cent at
peak demand and per capita usage is also 10 per cent of the global average.
There is going to be aggressive demand for power generator sets from industries
like textile, IT, railways, auto ancillaries, petroleum, etc. As per the
analysis done by Frost and Sullivan, the Indian diesel generator set market
estimates to reach a revenue of USD 2444 Million by 2015.
The Government of India’s focus on
infrastructure development has significantly boosted the construction equipment
industry and expenditure in this sector is expected to be nearly USD 253.9
Billion by 2012–13.
With increased competition, the Company has
initiated various steps which include offering a wider gamut of products and
services, increased coverage, enhanced focus on people capabilities,
investments in infrastructure, RandD and design
excellence which will enable the Company to seize the opportunities when they
materialize.
BUSINESS PERFORMANCE
For the year, the Company will highlight the
business performance in the following manner:
a) Under Subject, Material Handling Solutions
and Equipment and Project Solutions will be discussed.
b) Under Tractors India Private Limited
(TIPL), Construction and Mining Solutions and Power Systems Solutions will be
discussed.
Material Handling
Solutions
Material Handling Solutions accounted for 19
per cent of the Group Sales during the year 2010-11. The overall sales were 20
per cent higher compared to the previous year. MHS registered a turnover of
Rs.2195.000 Millions in 2010-11 vis-ŕ-vis Rs.1824.000 Millions in 2009-10.
The division retained its leadership position
in Mobile Slew cranes market with market share of 58 per cent. Special focus
was given to Truck cranes and the division increased its sales of Truck cranes
by 15 per cent in spite of severe competition from Chinese manufacturers. TIL
has demonstrated market leadership in this segment also with over 38 per cent market share.
The order book as on 31st March, 2011 was
Rs.450.000 Millions.
The Mining segment continued to have
confidence in their cranes – cranes valued Rs.200.000 Millions were supplied to
mining companies. The prospects for 2011-12 are also bright.
The Group supplied eleven Rough Terrain cranes
valued Rs.154.000 Millions to RITES for their projects in Myanmar.
The MHS division has successfully completed
supply of Material Handling Equipment required for the first phase of Project Akash and further orders are in the pipeline for this
Project. Continuing their trust in Material Handling Equipment, further orders
are also expected for Pinaka Project. The Company is
working on other applications of Material Handling Equipment required by the
Indian Defense sector which has good potential in the future.
With the objective of improving planned
throughput and cost, the MHS division of the Company is continuing with the
Accelerated Improvement Program (AIP) which involves all sections of employees
with particular focus on participation from the shop floor workmen.
During the year, the Company also launched the
75 MT capacity Truck Mounted crane. Indigenously built, the crane reinforces
the design excellence of the Company’s in-house team and strengthens the
fuel-efficient, rugged
and reliable product portfolio in the TMS
range. This high performance product offering comes with impressive features
like 5 axles including 3 steering axles, GVW of 49te, 4 section Trapezoidal
full power boom, all of which form part of the designing process developed
in-house. In addition, this entire project starting from Design to Dispatch of
the machine was completed within an incredible time frame of 90 days.
In the port equipment range, the Company
introduced a new model of Reach Stacker built with the technical collaboration
of NMHG – Hyster with features comparable to the best
in the world.
Equipment and Project Solutions (EPS) - the
vertical formed last year under MHS catering to ports, road construction
sectors with products such as RTG cranes, Crushers and Screens, Hot Mix Asphalt
Plants, has witnessed a year of major developments. The progress at the Kharagpur site has been significant. Construction of the
factory shed is in progress and the Company expects that the Plant can be
commissioned in the middle of 2011-12. Simultaneously, procurement of Plant and
Machinery has been on track with most of them arriving at site for installation
during June 2011.
In the market place, the seeding plan for
Crushers and Screens has been smooth with products being sold to aggregate and
mining segments. This will facilitate the sale of products offered by the Company
in volumes when the manufacturing commences at the new plant. Similarly,
various awareness/ education programs have been conducted on the Hot Mix Plant
and the use of Recycled Asphalt Pavement (RAP) which is a USP of these plants.
The National Highways Authority of India (NHAI) has given specific approval for
use of Double Barrel Drum Mix which is a patented technology of Astec for NHAI Projects. In its approval order dated 3rd
March, 2010, NHAI has commented that the entire process of such Drum Mix plants
gives a very homogenous mix, also observing that such Double Barrel Drum Mix
plants are suitable for use of Recycled Asphalt Pavement, are cost and energy
efficient and are environment friendly due to low emission of carbon gases.
This is testimony to the fact that the Company has always delivered the best,
not only in terms of technology but also in terms of energy conservation and
environmental protection.
The Company’s participation in various tenders
for Rubber Tyred Gantry cranes has been quite high
and this should help in finalization of orders during 2011-12.
Being a new vertical, building the
organization with the right skills and quality of people is of paramount
importance and EPS has been able to induct solid professionals for running the
business in the years to come. Overall, EPS is poised to make a successful
launch in 2011-12.
Tractors India Private Limited (TIPL)
The 100 per cent subsidiary of TIL formed in
2010 is engaged as a Dealer for Caterpillar Inc. for their construction, mining
and power systems solutions and new associations with SEM and SITECH.
Construction and Mining Solutions under TIPL accounted for 72 per cent of TIPL’s revenue. The industry and economic conditions were
generally on the recovery path during the latter part of the year. In terms of
unit sales, 1181 units were sold. Despite the fact that the overall industry
looked towards turning around, there were certain segments with high Government
planned investments, which continued to suffer from their own inherent issues.
The mining segment and the roads and highways sectors in particular were
affected and as a consequence, projects were delayed with cost and time
overruns.
The division under TIPL has still been able to
achieve some prestigious orders with major companies in the mining and roads
and highways segment. There was a record sale for Wheel Loaders and Motor
Graders and also two new Maintenance and Repair Contracts (MARC) were signed
with two prominent mining Customers. Furthermore, two important MARC agreements
were renewed. The strategic initiative of segmenting the customers into
Government/State owned enterprises, Large Corporations, emerging national
players and Global customers has helped the business in offering customized and
focused solutions, thus providing superior deliverables to the business.
In the roads and highways segment the division
made some breakthrough for a full equipment line-up of 19 machines valued at
Rs.350.000 Millions for a prime customer. With a view to strengthen the relationship
with customers, a special initiative to train the operators was undertaken and
received favorably by them. Orders for work on the NH4 with some renowned
subcontractors were also secured. With the Government and NHAI clearly focusing
on accelerating the approval and execution process, the Company shall witness
more of such business opportunities fructifying in the future. The order book
as on 31st March, 2011 stood at Rs.390.000 Millions.
Power Systems Solutions under TIPL accounted for 28
per cent of TIPL’s revenue and in terms of units 611
Engines were sold during the year including those sold in the petroleum
segment. The business made some major breakthrough and the segments such as
Agriculture, Plantation, Cement, Real Estate, Automotives and Construction
helped us to achieve some landmark orders.
• 5 Units of 1,500 kVA
sets for a Power project at Orissa amongst other
prestigious orders
• 3 Units of 1,010 kVA
sets were sold to a Hatchery in Ranchi
Another significant achievement was the
deployment of 30 Engines of 320/500 kVA for a major
construction house project on a rental basis. With useful business emanating
from Integrated Power Projects, Roads, Oil and
Gas, the Rental business has grown 34 per cent
in revenues over last year.
In the Oil and Gas segment, they see some
major changes happening with an upswing in City Gas Distribution – which would
mean heightened activity in Gas Compression. It has also been noticed that the
majors in the industry are going in more for hiring of Rigs instead of buying
of Rigs and this could be an opportunity for the Company in the future. The
order book as on 31st March, 2011 stood at Rs.840.000 Millions.
Rentals and Used Equipment
Although still nascent, TIPL continues its
emphasis on the Rental and Used Equipment business due to its future growth
potential. Investments in setting up six Rental Stores supported by rental
selling outlets have been made in Bhubaneswar, Asansol, Chandigarh, Lucknow, Sahibabad and Udaipur
offering customers to rent or buy used equipment as also Allied Products like
Mobile Lighting Towers etc. Some breakthrough business of deploying a fleet of
Backhoe Loaders at the Tea gardens in North Bengal has yielded good results.
Customized Rental Solutions to the Sikkim Airport
Construction was also a new business initiative. Focus was on sale of used
machines and a growth in profits over last year was recorded.
The Rental division under TIPL has made
significant investments in Rental Assets, Infrastructural facilities, people and
training and has established itself as a preferred Rental Service Provider in
the Industry. Rental continues to be a major focus area and TIPL is fully ready
and can cater to customer demands for a wide range of reliable Cat machines,
Cat DG Sets and Allied Products like Mobile Lighting Towers from the six Rental
Stores. In addition, the Company has also introduced Allied Products and has
created a new milestone with the launch of Mobile Lighting Towers and has plans
to introduce other Allied Product Solutions progressively based on industry
needs.
In order to have a more cohesive and
customer-centric organization, the Company has taken initiatives in areas of
people development including technical and operator trainings, focused on
enhancing coverage through an increase of branches and facilities across the
four territories formed under TIPL, commissioning of Component Rebuild Center
(CRC) for offering value added services to customers with the eventual aim of
attaining customer loyalty and market leadership.
OUTLOOK
The Finance Ministry in its budget for 2011-12
mentioned about allocating USD 49 Billion for infrastructure investments which
is an increase of 23 per cent over 2010-11. The Planning Commission had already
projected an investment of USD 459 Billion for the 11th Plan which was more
than twice the investment during the 10th Plan. These figures clearly indicate
the Government of India’s intention and emphasis on infrastructure development
in India. India is all set to become the world’s fastest growing economy by
2013-15 according to a Report by Morgan Stanley. The GDP growth has been
estimated at 9-9.5 per cent in 2013-15. The major initiative in 2011-12 budget
is the proposal to create a Special Purpose Vehicle to attract foreign funds
for infrastructure. Under this scenario, the Company remains optimistic about
its long-term growth plan which will further depend on the timing and speed at
which the aggressive investments by Government takes place in the
infrastructure space.
The overall outlook of the Company continues
to be positive and the Management remains confident to meet the requirements of
the infrastructural sectors through its technology intensive product offerings
in the areas of mining, construction, earthmoving, material handling, coal
handling, port, road construction and power systems.
The business opportunities in the next few
years look very attractive and the Company is committed through adequate human
resources at the appropriate levels to capture every opportunity arising in
this space.
CONTINGENT LIABILITIES:
(Rs. In
Millions)
|
Particulars |
31.03.2011 |
31.03.2010 |
|
|
|
|
|
Sales Tax Matters under dispute [Net of payments Rs.0.645 Million (Previous year Rs.3.243 Millions)] |
36.298 |
6.546 |
|
Income Tax Matters under dispute [Excludes disputed Income Tax
matters, in view of favourable Tribunal decision in
similar case.] |
12.790 |
1.809 |
|
Service Tax matters under dispute
[Net of payments Rs.1.463
Millions (Previous year Rs.20.208 Millions)] |
9.284 |
96.261 |
|
Excise Duty matters under dispute [Net of payments `
2,918 thousand (Previous year `
1,648 thousand)] |
4.315 |
5.329 |
UNAUDITED
STAND-ALONE FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31ST
DECEMBER 2011
(Rs. In
Millions)
|
Particulars |
3 Months Ended |
3 Months Ended |
9 Months Ended |
|
|
31.12.2011 |
30.09.2011 |
31.12.2011 |
||
|
(Unaudited) |
||||
|
1(a) |
Net Sales/Income from Operations |
555.900 |
590.700 |
1642.400 |
|
(b) |
Other Operating Income |
2.200 |
5.800 |
11.900 |
|
|
Total Operating Income [1(a)+1(b)] |
558.100 |
596.500 |
1654.300 |
|
2 |
Expenditure |
|
|
|
|
a) |
(Increase)/Decrease in Stock in Trade and
Work-in-Progress |
-91.800 |
-24.500 |
-78.5000 |
|
b) |
Consumption of Raw Materials |
319.400 |
298.000 |
839.500 |
|
c) |
Purchase of Traded Goods |
110.400 |
75.000 |
225.000 |
|
d) |
Employee Cost |
65.200 |
87.600 |
243.300 |
|
e) |
Depreciation ( including amortisation
) |
12.300 |
11.600 |
36.600 |
|
f) |
Other Expenditure |
108.100 |
95.000 |
267.600 |
|
g) |
Total [2(a) to 2(f)] |
523.600 |
542.700 |
1533.500 |
|
3 |
Profit from Operations before Other Income,
Interest and Exceptional Items (1-2) |
34.500 |
53.800 |
120.800 |
|
4 |
Other Income (Refer Note 3 below) |
109.500 |
198.000 |
332.000 |
|
5 |
Profit before Interest and Exceptional Items
(3+4) |
144.000 |
251.800 |
452.800 |
|
6 |
Interest |
7.900 |
2.300 |
26.700 |
|
7 |
Profit after Interest but before Exceptional
Items (5-6) |
136.100 |
249.500 |
426.100 |
|
8 |
Exceptional Items |
|
|
|
|
9 |
Profit (+) /Loss (-) from Ordinary
Activities before tax ( 7+8) |
136.100 |
249.500 |
426.100 |
|
10 |
Tax Expenses |
9.800 |
24.200 |
47.300 |
|
11 |
Net Profit(+)/Loss(-) from Ordinary
Activities after Tax (9-10) |
126.300 |
225.300 |
378.800 |
|
12 |
Extraordinary Item (net of tax expenses) |
|
|
|
|
13 |
Net Profit(+)/Loss(-) for the period (11-12) |
126.300 |
225.300 |
378.800 |
|
14 |
Paid-up Equity Share Capital |
100.300 |
100.300 |
100.300 |
|
|
(Face Value of ? 10/- each) |
|
|
|
|
15 |
Reserves Excluding Revaluation Reserve |
|
|
|
|
|
(As per Balance Sheet of Previous Accounting
Year) |
|
|
|
|
16 |
Earnings per share (EPS) (?) |
|
|
|
|
a) |
- Basic |
12.59 |
22.46 |
37.77 |
|
b) |
- Diluted |
12.59 |
22.46 |
37.77 |
|
17 |
Public Shareholding |
|
|
|
|
|
-Number of Shares |
4,845,662 |
4,845,662 |
4,845,662 |
|
|
-Percentage of Shareholding |
48.31% |
48.31% |
48.31% |
|
18 |
Promoters and Promoter Group Shareholding |
|
|
|
|
a) |
Pledged/Encumbered |
|
|
|
|
|
- Number of shares |
NIL |
NIL |
NIL |
|
|
- Percentage of shares (as a % of the total shareholding
of Promoter and |
NIL |
NIL |
NIL |
|
|
Promoter Group) |
|
|
|
|
|
- Percentage of shares (as a% of the total
share capital of the Company) |
NIL |
NIL |
NIL |
|
b) |
Non-encumbered |
|
|
|
|
|
- Number of shares |
5,184,603 |
5,184,603 |
5,184,603 |
|
|
- Percentage of shares (as a % of the total
shareholding of Promoter and |
100.00% |
100.00% |
100.00% |
|
|
Promoter Group) |
|
|
|
|
|
- Percentage of shares (as a% of the total
share capital of the Company) |
51.69% |
51.69% |
51.69% |
Notes:
1. The above unaudited results for the
quarter/nine months ended 31st December,2011, 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 31st January, 2012 at Kolkata and has been subjected to 'Limited Review' by the
Statutory Auditors of the Company.
2. The operations of the Company 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). 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.
3. Other Income for the quarter ended 31st December,2011 includes Rs.106.900
Millions and for the nine months ended 31st December,2011 includes Rs.302.700
Millions being dividend received from a Subsidiary Company [three months ended
30th September,2011 Rs.195.800 Millions; three months / nine months ended 31st
December, 2010- nil; Year ended 31st March,2011 – Rs.1.900 Millions].
4. During the quarter ended 31st December, 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.
5. Previous year's/period's figures have been rearranged/regrouped wherever
necessary, to conform to those of the current period.
FIXED ASSETS:
Tangible Assets
·
Land
and Buildings
·
Plant
and Machinery
·
Furniture
and Equipment
·
Motor
Vehicles and Motor Cycle
Intangible Assets
·
Technical
Know-how
·
Software
WEBSITE DETAILS:
CORPORATE PROFILE:
TECHNOLOGY, INNOVATION, LEADERSHIP - These
define subject as an organization, its attitude and philosophy.
Over the past six decades subject has been
partnering India’s Infrastructure growth and has emerged as one of the leading
providers of a wide range of equipment that represent some of the finest in
global technology. As a responsible nation builder, they remain committed to
providing cutting edge technology products and total solutions with the
ultimate aim in enhancing customer value.
Perceived as Responsible, Valued and
Respected, subject attributes its success and dynamic growth to the quality and
expertise of its people working towards the shared vision of creating a
positive difference to the Indian infrastructure industry. Today they have a
large quantum of collective intellectual capital with a motivating workplace
environment that enhances competency and encourages productivity.
The Material Handling Solutions division of
subject is engaged in manufacture and marketing of a comprehensive range of
state-of –the –art material handling equipment and lifting solutions with
integrated customer support.. Recently the division has embarked on a robust
expansion plan offering road construction solutions, port equipment. The
division uses the best technology available in its domain with world class
associations such as Grove Worldwide USA, Manitowoc Crane Group- USA, Paceco Corp- USA [a part of Mitsui Engineering and
Shipbuilding-Japan], FAMAK-SA Poland. The recent partnerships include NACCO
Materials Handling Group, Inc. [NMHG] - a part of NACCO Industries Inc-USA and Astec INC-USA.
subject’s plant at Kolkata
is the only purpose built mobile crane manufacturing facility in India. The
plant is a fully integrated facility and is certified under ISO 9000:2000 and
EN 729 international standards.
Acknowledged as a market leader in mobile
cranes, material handling equipment from subject are reliable, productive and
efficient. They are the exclusive dealer for Caterpillar products in North and
East India, Bhutan and Nepal and effective 2nd April,2010,their business of
Construction, Mining and Power systems operates under Tractors India Private
Limited [TIPL] - a wholly owned subsidiary of subject. The Caterpillar
dealership of TIPL spreads across North and East India as well as Bhutan. The
construction and mining business sells and services a wide portfolio of
Caterpillar range of construction and mining equipment.
The Power Systems Solutions under TIPL caters
to Caterpillar range of Engines and Genset packages
for North and East India, Bhutan and Nepal. They set the industry standard in
providing quality power for continuous and standby applications in diesel, gas
and heavy fuel configurations as well as package a range of gensets
undertaking turnkey projects and providing after market support under one
umbrella.
They also bring world class service solutions
like Maintenance and Repair Contract [MARC], Component Rebuild Center [CRC] and
Schedule Oil Analysis [SOS] as well as the global concept of providing
Equipment on Rent for construction, mining and power applications.
Subject and its subsidiaries are well connected
with a vast network over 60 branches and area offices to ensuring maximum
coverage.
At subject they take their role of responsible
nation builder seriously, as they have for the past 65 years. This is a source
of pride and inspiration for them. Their passion remains to offer excellence in
product support initiatives, prompt customer response and to be the industry
benchmark as a Total Solutions Provider.
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: s 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.53.34 |
|
|
1 |
Rs.86.11 |
|
Euro |
1 |
Rs.69.07 |
INFORMATION DETAILS
|
Report Prepared
by : |
BSN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--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 |
|
62 |
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.