MIRA INFORM REPORT

 

 

Report Date :

12.12.2013

 

IDENTIFICATION DETAILS

 

Name :

INTERNATIONAL TRACTORS LIMITED

 

 

Formerly Known As :

INTERNATIONAL TRACTORS AND FARM EQUIPMENT PRIVATE LIMITED

 

 

Registered Office :

283, Sonalika House, AGCR Enclave, Karkardooma, Delhi – 110092

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

17.10.1995

 

 

Com. Reg. No.:

55-073245

 

 

Capital Investment / Paid-up Capital :

Rs.55.213 Millions

 

 

CIN No.:

[Company Identification No.]

U74899DL1995PLC073245

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

JLDI00124F

 

 

PAN No.:

[Permanent Account No.]

AAACI2272H

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Manufacturer of Tractors and Parts.

 

 

No. of Employees :

500 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (63)

 

RATING

STATUS

PROPOSED CREDIT LINE

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

Fairly Large

 

Maximum Credit Limit :

USD 53000000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Exist

 

 

Comments :

Subject is an established company having good track record.

 

Overall financials of the company appears to be strong and healthy.

 

Trade relations are fair. Business is active. Payment terms are regular and as per commitment.

 

The company can be considered for business dealings at usual trade terms and conditions.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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

 

The current downturn provides an opportunity to push ahead with reforms to accelerate growth, says the latest India Development Update report released by the World Bank. The report says that the adverse effects of rupee depreciation are likely to be offset by the gains in the exports performance due to improved external competitiveness. Since May this year, the local currency has depreciated substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.

 

A stagflation like situation appears to have arisen as inflation jumped to an eight month high of 6.46 % for the month of September. It is up from 6.10 % in August. Growth continues to be muted with factory output plunging to 0.6  % in August. Onion prices have risen nearly 300 % from last September. Vegetables cost nearly 90 % more than they did last year. Wake up to the economic contribution of slum dwellers. They contribute more than 7.5 % to the country’s gross domestic product, according to a recent study conducted in 50 top cities.

 

136000 estimated number of jobs created during the second quarter of the current financial year. 50000 estimated number of additional jobs in the field of corporate social responsibility in the coming years.

 

The International Finance Corporation expects to come out with its rupee linked bonds issue before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has been launched in India from 1st November.

 

The Land Acquisition Act to provide just and fair compensation to farmers will come into force from January 1 next year, said Rural Development Minister Jairam Ramesh. The Act replaces a 119 year old registration. The Securities and Exchange Board of India has approved the trading of currency futures on the Bombay Stock Exchange. The exchange plans to launch the currency futures platform with advanced trading technology by the end of November.

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

ICRA

Rating

AA: Fund Based Limits (CC/BPLC)

Rating Explanation

High credit quality and low credit risk.

Date

17th July, 2013

 

Rating Agency Name

ICRA

Rating

A1+: Non Fund Based Limits (LC/BG)

Rating Explanation

Very strong degree of safety and lowest credit risk.

Date

17th July, 2013

 

 

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.

 

 

INFORMATION PARTED BY

 

Name :

Mr. Ajit Singh

Designation :

Accounts Department

Contact No.:

91-1882-302220

Date :

19.11.2013

 

 

LOCATIONS

 

Registered Office :

283, Sonalika House, AGCR Enclave, Karkardooma, Delhi – 110092, India

Tel. No.:

91-11-45192200 / 22373785

Fax No.:

91-11-22370492 / 22377472

E-Mail :

ptsood@sonalika.com

Website :

www.sonalika.com

Location :

Owned

 

 

Head Office :

Village Chak Gujran, P.O. Piplanwala Jalandhar Road, Hoshiarpur  - 146022, Punjab, India

Tel. No.:

91-1882-302220/ 221/ 223

Fax No.:

91-1882-302222

E-Mail :

sonalika@sonalika.com

 

 

Corporate Office :

Pankaj Plaza -1, Plot No. 2, Karkardooma Community Centre, Commercial Complex, New Delhi – 110092, India

Tel. No.:

91-11-22373785/ 89/ 91

Fax No.:

91-11-22377472/ 0492

 

 

Factory :

Located at:

 

·         Hoshiarpur, Punjab, India

 

 

DIRECTORS

 

As on: 25.09.2012

 

Name :

Mr. Lachman Dass Mittal

Designation :

Whole Time Director

Address :

283, Sonalika House, AGCR Enclave, Delhi - 110092, India

Date of Birth/Age :

05.11.1930

Date of Appointment :

17.10.1995

PAN No.:

AAFPM2407C

DIN No.:

00296922

 

 

Name :

Mr. Amrit Sagar Mittal

Designation :

Whole Time Director

Address :

Sonalika Estate, D.C. Road, Hoshiarpur - 146001, Punjab, India

Date of Birth/Age :

03.08.1953

Date of Appointment :

17.10.1995

PAN No.:

AASPM1102D

DIN No.:

00307471

 

 

Name :

Mr. Deepak Mittal

Designation :

Managing Director

Address :

Sonalika Estate, D. C. Road, Hoshiarpur 146001, Punjab, India

Date of Birth/Age :

23.03.1960

Date of Appointment :

17.10.1995

PAN No.:

AARPM7571R

DIN No.:

00307448

 

 

Name :

Mr. Raman Mittal

Designation :

Whole Time Director

Address :

Sonalika Estate, D.C.Road, Hoshiarpur - 146001, Punjab,  India

Date of Birth/Age :

29.11.1984

Date of Appointment :

22.12.2008

PAN No.:

AJGPM7096R

DIN No.:

00298756

 

 

Name :

Mr. Sushant Sagar Mittal

Designation :

Director

Address :

Sonalika Estate, D.C.Road, Hoshiarpur 146001, Punjab, India

Date of Birth/Age :

18.08.1987

Date of Appointment :

22.12.2008

PAN No.:

ANLPM4910D

DIN No.:

00307274

 

 

Name :

Eiichi Ozaki

Designation :

Nominee Director

Address :

1-15, Senriokanaya Suita City, Osaka Prefecture – 5650812, Japan

Date of Birth/Age :

01.11.1959

Date of Appointment :

17.12.2009

DIN No.:

02886199

 

 

Name :

Mr. Pranab Ghosal

Designation :

Whole Time Director

Address :

Flat No.1, Building No.3, Atur Park, Koregaon Roadm Pune – 411001, Maharashtra, India

Date of Birth/Age :

07.02.1962

Date of Appointment :

26.05.2008

PAN No.:

ACJPG5836H

DIN No.:

03099685

 

 

Name :

Fumio Nakagawa

Designation :

Alternate director

Date of Appointment :

19.08.2009

DIN No.:

02705816

 

 

KEY EXECUTIVES

 

Name :

Mr. Ajit Singh

Designation :

Accounts Department

 

 

Name :

Mr. Priya Tosh Sood 

Designation :

Company Secretary

Address :

# 322, Lane No.2, Tagore Nagar, Hoshiarpur, Punjab, India

Date of Birth/Age :

01.02.1963

Date of Appointment :

01.10.2001

PAN No.:

AEZPS2323F

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on: 25.09.2012

 

Names of Shareholders

 

No. of Shares

Laxman Dass Mittal

 

1311486

Amrit Sagar Mittal

 

1210677

Deepak Mittal

 

1450286

Raj Rani Mittal

 

2900

Sangeeta Mittal

 

70100

Neeru Mittal

 

70100

Sushant Sagar Mittal

 

149800

Geetika Mittal

 

50000

Sagarika Mittal

 

200

Rahul Mittal

 

60000

Raman Mittal

 

149500

Sonali Mittal

 

10000

Yanmar Asia (Singapore) Corporation Private Limited, Singapore

 

696172

JM Financial Trustee Company Private Limited, India

 

290071

Total

 

5521292

 

 

Equity Share Break up (Percentage of Total Equity)

 

As on: 25.09.2012

 

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

12.61

Bodies corporate

5.25

Directors or relatives of Directors

82.14

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Tractors and Parts.

 

 

Terms :

 

Selling :

L/C and Credit

 

 

Purchasing :

L/C and Credit

 

 

GENERAL INFORMATION

 

Customers :

End Users

 

 

No. of Employees :

500 (Approximately)

 

 

Bankers :

·         Export Import Bank of India, Floor – 21, Centre 1, World Trade Centre, Cuff Parade, Mumbai – 400 005, Maharashtra, India

·         Oriental Bank of Commerce, Roshan Road, Hoshiarpur - 146001, Punjab, India

Tel. No.: 91-1882-222687

·         HDFC Bank Limited, HDFC Bank House Senapati Bapat Marg, Lower Parel West, Mumbai - 400013, Maharashtra, India

 

 

Facilities :

(Rs. In Millions)

Secured Loan

As on

31.03.2013

As on

31.03.2012

SHORT TERM BORROWINGS

 

 

Working capital loans from banks

0.000

457.920

Total

0.000

457.920

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

S.R Batliboi and Company

Chartered Accountants

Address :

Golf View, Corporate Tower-B, Sector-42, Sector Road,Gurgaon-122002, Haryana, India

PAN No.:

AALFS0506L

 

 

Joint Venture:

Renault Agriculture and Sonaloka International

 

 

Other Related Parties :

·         Sunshine Corporation Private Limited

·         Sonalika Agro Industries Corporation

·         International autotrac Finance limited

·         International Engineers

·         International Cars and Motors Limited

·         Indian Tractors and Components Limited

·         Auto Industries

·         AD Trading Private Limited

·         Magma ITL Finance Limited

CIN No.: U65910WB2007PLC120137

·         Cllasic Vehicles And Components Limited

CIN No.:U34100PB2010PLC033491

 

 

CAPITAL STRUCTURE

 

As on: 31.03.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

30000000

Equity Shares

Rs.10/- each

Rs.300.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

5521292

Equity Shares

Rs.10/- each

Rs.55.213 Millions

 

 

 

 

 


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

NOTE: FINANCIAL DETAILS FILE ATTACHED

 

 

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

No

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

No

8]

No. of employees

Yes

9]

Name of person contacted

Yes

10]

Designation of contact person

Yes

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

Yes

20]

Export / Import details (if applicable)

No

21]

Market information

----------------------

22]

Litigations that the firm / promoter involved in

Yes

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

Yes

33]

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

No

34]

External Agency Rating, if available

Yes

 

 

LITIGATION DETAILS

 

IN THE HIGH COURT OF DELHI AT NEW DELHI

 

ITA 1189/2009

 

COMMISSIONER OF INCOME TAX (LTU) ..... Appellant

Through: Ms. Prem Lata Bansal, Advocate

versus

 

INTERNATIONAL TRACTORS LIMITED ..... Respondent

Through:Ms. Anshul Sharma, Advocate

CORAM:

HON'BLE MR. JUSTICE BADAR DURREZ AHMED

HON'BLE MR. JUSTICE MANMOHAN SINGH

O R D E R

20.04.2010

C.M. No. 16110/2009(delay)

For the reasons stated in the application, the delay in re-filing the appeal is condoned.

Application stands disposed of.

ITA 1189/2009

Admit.

The following substantial questions of law arise for the consideration of this Court:-

 

1. Whether the Income Tax Appellate Tribunal was correct in law in holding that there was no failure on the part of the assessee to disclose truly and fully all material facts and in thereby concluding that the reopening of th assessment was not justified in view of the proviso to section 147 of the Income Tax Act, 1961?

 

2. Whether the Income Tax Appellate Tribunal was correct in law in holding that for the purpose of deduction under section 80-IA of the Income Tax Act, 1961, the assessee should be a small scale undertaking on the last date of the previous year relating to the initial/first assessment year and that the said requirement need not be satisfied in subsequent years?

 

Paper books be filed by the appellant within three months as per rules.

List along with ITA No. 1082/2006.

 

BADAR DURREZ AHMED,J

 

 

UNSECURED LOAN

(Rs. In Millions)

Particulars

As on

31.03.2013

As on

31.03.2012

LONG TERM BORROWINGS

 

 

Deposits from shareholders

49.104

40.271

SHORT TERM BORROWINGS

 

 

Loans and advances from related parties

0.971

3.877

Total

50.075

44.148

 

 

PERFORMANCE OF THE COMPANY DURING THE YEAR :

 

In the FY 2012 2013, the Tractor Industry witnessed a decline of 2% ie., 590728 units of tractors in the current year as against 604211 units in the last year. However, in this downward scenario, your Company has achieved the growth of 23%.

 

The Company has achieved a total turnover of Rs. 29170.500 Millions as compared to Rs. 22516.300 Millions in the last year ie., an increase of 30%.

 

The Company has sold 58216 units of tractors (last year 47245 units) resulting into growth of 23%.

 

The Book value of your Company's equity share has increased from Rs. 0.002 Million to Rs. 0.002 Millions ie., a growth of 33%.

 

The Earnings Per Share (EPS), both Basic and Diluted, has increased from Rs. 536/- to Rs. 699/- ie., growth of 30%.

 

 

INDEX OF CHARGES

 

S. No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

90048843

10/10/2013 *

100,000,000.00

ORIENTAL BANK OF COMMERCE

ROSHAN ROAD, HOSHIARPUR, Punjab -146001, INDIA

B86835402

2

90047763

21/01/2000

41,000,000.00

ORIENTAL BANK OF COMMERCE

E - BLOCK, CONNAUGHT PALCE, NEW DELHI, Delhi, INDIA

-

3

90047300

10/10/2013 *

700,000,000.00

ORIENTAL BANK OF COMMERCE

ROSHAN ROAD, HOSHIARPUR, Punjab - 146001, INDIA

B86835923

 

* Date of charge modification

 

 

FIXED ASSETS:

 

Tangible Assets

·         Land

·         Buildings

·         Plant and Equipment

·         Furniture and Fixtures

·         Vehicles

·         Office Equipment

 

Intangible Assets

·         Brands

·         Trade Marks

·         Computer Software

 

 


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.61.33

UK Pound

1

Rs.100.79

Euro

1

Rs.84.38

 

 

INFORMATION DETAILS

 

Information Gathered by :

PLK

 

 

Report Prepared by :

RAJ

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

7

--PROFITABILIRY

1~10

8

--LIQUIDITY

1~10

7

--LEVERAGE

1~10

7

--RESERVES

1~10

7

--CREDIT LINES

1~10

8

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

YES

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

63

 

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.