MIRA INFORM REPORT

 

 

Report Date :

01.04.2013

 

IDENTIFICATION DETAILS

 

Name :

TRACTORS AND FARM EQUIPMENT LIMITED

 

 

Registered Office :

861, Anna Salai, Chennai – 600 002, Tamilnadu

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012 (Profit and Loss Account)

 

 

Date of Incorporation :

28.11.1960

 

 

Com. Reg. No.:

18-004337

 

 

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.

 

The Profit and Loss Account of the company for the year 2012 is available and Balance Sheet is not Available.

 

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 – June 30, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

INDIAN ECONOMIC OVERVIEW

 

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CRISIL

Rating

LETTER OF CREDIT : A1+

Rating Explanation

Strongest degree of safety it carry lowest credit risk

Date

09.11.2012

 

Rating Agency Name

CRISIL

Rating

CASH CREDIT :  AA+

Rating Explanation

High degree of safety it carry very low credit risk

Date

09.11.2012

 

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

 

LOCATIONS

 

Registered Office :

861, Anna Salai, Chennai – 600 002, Tamilnadu, 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, India 

Tel. No.:

91-44-28279073

Fax No.:

91-44-28260224/ 21111111

E-Mail :

info@tafe.com

corporate@tafe.com

Area :

10,000 sq. ft.

Location :

Leased

 

 

Management Development Consultancy Centre:

105, Dr. Radhakrishnan Salai, Mylapore, Chennai – 600 004, 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/ 25375865

 

 

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 – 561 203, District – Bangalore, Karnataka, India

Tel. No.:

91-8119-223560

 

 

Factory 4 :

Mandideep, Bhopal, Madhya Pradesh, India

 

 

Factory 5 :

Alwar, Rajasthan, India

 

 

Factory 6 :

Parwanoo, Himachal Pradesh, India

 

 

DIRECTORS

 

As on 08.08.2012

 

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

 

 

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 :

27.12.1994

Din No.:

00037022

 

 

Name :

Mr. Ramesh Chander Banka

Designation :

Whole Time Director

Address :

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

Date of Birth/Age :

15.10.1934

Date of Appointment :

06.08.1999

DIN No.:

00036997

 

 

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

 

 

Name :

Mr. Gary Lee Collar

Designation :

Director appointed in casual vacancy

Address :

4177 Tamil Lane, Central Point, Orgon 97052

Date of Birth/Age :

06.08.1956

Date of Appointment :

08.06.2012

DIN No.:

05283713

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 08.08.2012

 

Names of Shareholders

 

No. of Shares

Simpson and Company Limited, India

9148918

A. Krishnamoorthy

60

S. Ramanujachari and Amalgamations Private Limited

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 08.08.2012

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian 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 :

v      Central Bank of India, Addison Buildings, 803 Anna Salai, Chennai – 600 002, Tamilnadu, India

v      State Bank of India, Corp. Accts. Gr. Br. Greams Road, Chennai – 600 002, Tamilnadu, India

v      HDFC Bank Limited, HDFC Bank House Senapati Bapat Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra, India

v      ICICI Bank

v      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

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Price Waterhouse and Company

Chartered Accountants

Address :

32, Khader Nawaz Khan Road, Chennai - 600 034, Tamilnadu, India

 

 

Holding Company :

 

Simpson and Company Limited

CIN No.: U65991TN1925PLC002345

 

 

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

 

 

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

 


 

CAPITAL STRUCTURE

 

As on 31.03.2011

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

12000000

Equity Shares

Rs.10/- each

Rs.120.000 Millions

2000000

Redeemable Preference Shares

Rs.10/- each

Rs.20.000 Millions

 

Total

 

Rs.140.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

12000000

Equity Shares

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 9149100 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

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

 

120.000

120.000

2] Share Application Money

 

0.000

0.000

3] Reserves & Surplus

 

16945.487

12914.243

4] (Accumulated Losses)

 

0.000

0.000

NETWORTH

 

17065.487

13034.243

LOAN FUNDS

 

 

 

1] Secured Loans

 

0.000

482.841

2] Unsecured Loans

 

252.593

171.023

TOTAL BORROWING

 

252.593

653.864

DEFERRED TAX LIABILITIES

 

159.000

170.000

 

 

 

 

TOTAL

 

17477.080

13858.107

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

2369.787

2411.041

Capital work-in-progress

 

173.043

17.811

 

 

 

 

INVESTMENT

 

9614.576

6688.163

DEFERRED TAX ASSETS

 

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

 
2776.443
2107.468

 

Sundry Debtors

 
3680.970
2979.463

 

Cash & Bank Balances

 
3624.734
4206.397

 

Other Current Assets

 
180.604
189.822

 

Loans & Advances

 
2933.603
1837.070

Total Current Assets

 
13196.354

11320.220

Less : CURRENT LIABILITIES & PROVISIONS

 
 

 

 

Sundry Creditors

 
6615.166
5315.236

 

Other Current Liabilities

 
924.671
951.481

 

Provisions

 
336.843
312.411

Total Current Liabilities

 
7876.680
6579.128

Net Current Assets

 
5319.674
4741.092

 

 

 

 

MISCELLANEOUS EXPENSES

 

0.000

0.000

 

 

 

 

TOTAL

 

17477.080

13858.107

 


PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

 

31.03.2012

 

SALES

 

 

 

 

 

Income

 

 

51871.187

 

 

Other Income

 

 

2019.091

 

 

TOTAL                                     (A)

 

 

53890.278

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of materials consumed

 

 

36024.762

 

 

Purchases of stock-in-trade

 

 

1547.710

 

 

Changes in inventories of finished goods, work-in-progress and stock-in-trade

 

 

(654.315)

 

 

Employee benefit expense

 

 

2135.188

 

 

Other expenses

 

 

6286.700

 

 

TOTAL                                     (B)

 

 

45340.045

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

 

 

8550.233

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

 

 

46.759

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

 

 

8503.474

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

 

 

275.284

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

 

 

8228.190

 

 

 

 

 

Less

TAX                                                                  (H)

 

 

2369.160

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

 

 

5859.030

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

 

 

3136.167

 

 

 

 

 

Less

APPROPRIATIONS

 

 

NA

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

 

 

NA

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

 

 

11387.040

 

TOTAL EARNINGS

 

 

11387.040

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

 

 

1031.924

 

 

Stores & Spares

 

 

129.170

 

 

Capital Goods

 

 

400.636

 

TOTAL IMPORTS

 

 

1561.730

 

 

 

 

 

 

Earnings Per Share (Rs.)

 

 

488.25

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Income

 

37940.826

29626.489

 

 

Other Income

 

1785.459

1037.238

 

 

TOTAL                                     (A)

 

39726.285

30663.727

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Raw Materials

 

26699.016

19938.652

 

 

Other Manufacturing Expenses

 

1065.088

779.335

 

 

Employee Cost

 

1978.037

1645.306

 

 

Administrative, Selling and Other Expenses

 

3495.832

2915.549

 

 

TOTAL                                     (B)

 

33237.973

25278.842

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      I

 

6488.312

5384.885

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

 

84.517

105.769

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

 

6403.795

5279.116

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

 

249.293

238.008

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

 

6154.502

5041.108

 

 

 

 

 

Less

TAX                                                                  (H)

 

1844.000

1656.000

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

 

4310.502

3385.108

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

 

1104.923

0.000

 

 

 

 

 

Less

APPROPRIATIONS

 

2279.258

2280.185

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

 

3136.167

1104.923

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Manufactured Goods 

 

6581.434

3454.580

 

 

Traded Goods

 

854.211

967.394

 

TOTAL EARNINGS

 

7435.645

4421.974

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

 

1000.230

397.725

 

 

Stores & Spares

 

183.979

16.874

 

 

Capital Goods

 

143.533

65.490

 

 

Trading Goods

 

0.000

291.755

 

TOTAL IMPORTS

 

1327.742

771.844

 

 

 

 

 

 

Earnings Per Share (Rs.)

 

205.26

282.09

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)

10.87
10.85

11.04

 

 

 
 

 

Net Profit Margin

(PBT/Sales)

(%)

15.86
16.22

17.02

 

 

 
 

 

Return on Total Assets

(PBT/Total Assets}

(%)

NA
39.54

36.71

 

 

 
 

 

Return on Investment (ROI)

(PBT/Networth)

 

NA
0.36

0.39

 

 

 
 

 

Debt Equity Ratio

(Total Debt/Networth)

 

NA
0.01

0.05

 

 

 
 

 

Current Ratio

(Current Asset/Current Liability)

 

NA
1.68

1.72

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

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

Yes

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 involved in

--

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

31]

Date of Birth of Proprietor/Partner/Director, if available

Yes

32]

PAN of Proprietor/Partner/Director, if available

No

33]

Voter ID No of Proprietor/Partner/Director, if available

No

34]

External Agency Rating, if available

Yes

 

DETAILS OF UNSECURED LOAN

(Rs. In Millions)

Particulars

31.03.2011

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

 

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.

 

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 – 600 002, 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

 

v      Freehold Land

v      Building

v      Plant and Machinery

v      Furniture, Fixture and Equipments etc.

v      Vehicles

 

website Details

 

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.

 

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.

 

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.

 

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.

 

PRESS RELEASE

 

TRACTOR MAKER TAFE REVENUE GROWS 30%, TO ADD CAPACITY

APRIL 03 2012

 

Tractors and Farm Equipment Limited (Tafe), maker of Eicher and Massey Ferguson tractors, on Tuesday reported a 30.4% growth in consolidated revenue to Rs.80200.000 Millions for the year ended March, overcoming sluggish growth in the industry.

 

Tafe’s growth was fuelled by new products, which have contributed nearly 68% of total sales over the last three years, said Mallika Srinivasan, chairman of the family-owned tractor business.

 

“The less-than-50 HP (horse power) segment will grow more strongly and the contributing factor has been that the new products have had an excellent customer response,” said Srinivasan, whose company rolled out around 148,100 tractors in 2011-12.

 

Chennai-based Tafe plans to maintain sales momentum by investing Rs.1000.000 Millions in a factory in Madurai, Tamil Nadu, to bring out an additional 60,000 units, taking its overall capacity to around 240,000.

 

Tafe is pinning its hopes on the increasing need for farm mechanisation, given the prevalence of government programmes like the Mahatma Gandhi National Rural Employment Guarantee Scheme that has lured farm labourers away from the field by guaranteeing 100 days of employment in a year.

 

“My outlook is cautiously optimistic. I’m cautious about the short-term industry growth and optimistic because of the structural changes in the market like NREGS, which favours mechanisation,” said the 51-year-old Srinivasan.

Industry figures have shown little promise since November, as overall sales contracted by 8.2% in February, according to Tafe. After growth rates of 20% in 2010-11 and 32% the year before, failed monsoons, falling food prices, higher interest rates and input cost pressures have considerably reduced farm incomes in India, contributing to a slump in the sale of tractors. Growth in tractor sales slowed to 11.4% in 2011-12 from about 24% in the year before.

 

Tafe has managed to buck this trend. “We have managed to mitigate the input cost pressure by maintaining volumes,” said Srinivasan.

 

Market leader Mahindra & Mahindra Ltd saw sales drop by 7.6% in January and 20% in February, compared to the same months last year.

 

But even with the recent disappointing numbers, analysts say the industry has shown an improvement on a year-on-year basis.

 

“Though there has been a decline in demand in the last few months, the overall tractor demand has grown on an annual basis,” said Pawan Agarwal, senior director at rating agency Crisil Ltd. “Long-term factors that remain positive influencers for tractor demand include shortage of labour leading to increased mechanization and expansion in the scope of tractor application for non-farm activities like haulage.”

 

But another analyst pegs industry growth for fiscal 2012-13 at less than 7-8%. “For FY13, the growth will be at a slow pace given that factors like agriculture, food prices and farm spending will not go up significantly,” said Umesh Karne, an analyst with Brics Securities Ltd.

 

Tafe, which is eyeing a turnover of $2 billion (around Rs 10,000 crore) in 2011-13, looks to beat the 8-10% growth forecast for the industry.

 

Exports, which contribute about 14% of the tractor-maker’s total sales, increased 28.2% over the previous year to nearly 20,400 units, moving past the industry performance of 12.8%.

 

The company also looks to expand its range of products in the 85-105 HP segment—as most of the demand is overseas—all conforming to the emission norms prescribed in Europe and North America, by early next year.

Tafe will also start production of the Centurion tractors, a 50-125 HP tractor being jointly developed with the US-based AGCO Corp., by mid-2013.

 

Tafe will also sell small application-oriented tractors in the sub-20 HP segment for use in orchards, sugarcane farms and the such, along with Rajkot-based Captain Tractors Private Limited. It hopes to tap the needs of small farms that the company foresees having a requirement of 12,000 such tractors a year.

 

At least 60% of the country’s farms span less than one hectare each, according to a Tafe spokesperson.

 


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 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.54.39

UK Pound

1

Rs.82.32

Euro

1

Rs.69.54

 

INFORMATION DETAILS

 

Report Prepared by :

BSN


 

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

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

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.