MIRA INFORM REPORT

 

 

Report Date :

19.12.2013

 

IDENTIFICATION DETAILS

 

Name :

TATA HITACHI CONSTRUCTION MACHINERY COMPANY LIMITED (w.e.f. 23.11.2012)

 

 

Formerly Known As :

TELCO CONSTRUCTION EQUIPMENT COMPANY LIMITED

 

 

Registered Office :

Jubilee Building, 45, Museum Road, Bangalore – 560 025, Karnataka

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

30.12.1998

 

 

Com. Reg. No.:

08-024588

 

 

Capital Investment / Paid-up Capital :

Rs.1000.208 Millions

 

 

CIN No.:

[Company Identification No.]

U85110KA1998PLC024588

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

BLRT02428G

 

 

PAN No.:

[Permanent Account No.]

AAACT9077B

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

The Company is engaged in the manufacturing, sale and servicing of construction machineries / equipments including excavators, etc.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (54)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 20097000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a joint venture between Tata Motor and Hitachi Construction Machinery Company, Japan.

 

It is an established company having fine track record.

 

Sales and profit of the company has dipped in 2013. However, financial position of the company is good. The company gets good support from its subsidiary.

 

Trade relation reported to be fair. Business is active. Payment terms are reported to be regular and as per commitment.

 

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

 

NOTES :

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

 

 

ECGC Country Risk Classification List – 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

Fund based facilities A+

Rating Explanation

Adequate credit quality and average credit risk

Date

March 2013

 

Rating Agency Name

ICRA

Rating

Non Fund based facilities A1

Rating Explanation

Very strong degree of safety and lowest credit risk.

Date

March 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.

 

 

LOCATIONS

 

Registered Office :

Jubilee Building, 45, Museum Road, Bangalore – 560 025, Karnataka, India

Tel. No.:

91-80-25588026/ 25583345/ 46/ 53/ 66953301/ 02/ 03/ 04/ 05

Fax No.:

91-80-25583343/ 66953309/ 25325792

E-Mail :

telcon@telcon.co.in

marketing.group@telcon.co.in

telcon.info@telcon.co.in

harish.nagaraj@tatahitachi.co.in

Website :

www.telcon.co.in

Area :

15000 sq. ft

Location :

Leased

 

 

Administrative Office:

27th Floor, Centre I, World Trade Centre, Cuffe Parade, Mumbai – 400 005, Maharashtra

Tel. No.:

91-22-22160871

Fax No.:

91-22-22185747    

 

 

Factory 1 :

K.I.A.D.B., Block No.2, Belur Industrial Estate, Mummigatti, Dharwad – 580 007, Karnataka, India

 

 

Factory 2 :

Telcon General Office, C/o. Telco Premises, PO: Telco GM's Post Office, Jamshedpur – 831 010, Jharkhand, India

 

 

Factory 3 :

Midnapore West, Kharagpur, West Bengal, India

 

 

Zonal Offices :

Located at :

 

v      Ahmedabad

v      Aurangabad

v      Bhubaneswar

v      Bilaspur

v      Chandigarh

v      Chennai

v      Cochin

v      Dhanbad

v      Goa

v      Gulbarga

v      Guwahati

v      Hospet

v      Indore

v      Jaipur

v      Jamshedpur

v      Kolhapur

v      Lucknow

v      Nellore

v      Pune

v      Rajkot

v      Salem

v      Udaipur

v      Vijaywada

v      Vizag

 

 

Overseas Office:

Located at:

 

v      Bangladesh

v      Sri Lanka

v      Nepal

 

 

Branch Office :

Located at:

 

v      Bangalore

v      Kolkata

v      Hyderabad

v      Mumbai

v      New Delhi

v      Nagpur

 

 

DIRECTORS

 

As on  26.07.2013

 

Name :

Mr. Ranaveer Sinha

Designation :

Managing Director

Address :

G5, Golmuri Road, Nildih, PO Golmuri, Jamshedpur – 831 003, Jharkhand, India

Date of Birth/Age :

09.07.1954

Qualification :

PGDBM, BE (IIT Kharagpur), MS (Aston University)

Date of Appointment :

01.01.2008

DIN No.:

00103398

 

 

Name :

Mr. Kamalesh Chandra Dewan Wazirchand Mehra

Designation :

Director

Address :

Flat # 11, Volkart House, 63 Westfield Lane, Bhulabai Desai Road, Mumbai – 400 021, Maharashtra, India

Date of Birth/Age :

20.09.1939

Qualification :

Hon. Graduate in Arts

Date of Appointment :

29.09.1999

DIN No.:

00005685

 

 

Name :

Mr. Shoji Iino

Designation :

Nominee Director

Address :

4-1-33 Shibasakidai, Abiko-Shi, Chiba 2701176

Date of Birth/Age :

11.07.1957

Qualification :

Graduate in Science and Technology, Waseda University

Date of Appointment :

01.04.2011

DIN No.:

01680590

 

 

Name :

Mr. Prakash Manjanath Telang

Designation :

Nominee Director

Address :

Flat # D – 211 Paradise Towers, Plot # 10 Baner Road, Pune – 411 045, Maharashtra, India

Date of Birth/Age :

21.06.1947

Qualification :

BE (Mech.), MBA (IIM, Ahmedabad)

Date of Appointment :

25.01.2012

DIN No.:

00012562

 

 

Name :

Mr. Hiroaki Isshiki

Designation :

Alternate Director

Address :

3-13-8 Izumi-Honcho Komae City, Tokyo – 2010003

Date of Birth/Age :

23.04.1958

Qualification :

Graduate- Foreign Studies, Osaka University

Date of Appointment :

27.04.2012

DIN No.:

02107087

 

 

Name :

Motohiro Narao

Designation :

Nominee Director

Address :

1-39-7, Sakashita, Itabashi-ku, Tokyo, Japan

Date of Birth/Age :

18.11.1962

Date of Appointment :

27.04.2012

DIN No.:

01680806

 

 

Name :

Hideki Mizumachi

Designation :

Alternate Director

Address :

404, 4-21, 1-Chome, Fujisaki Tsuchiura-shi, Ibaraki-ken, Ibaraki – 3000813, Japan

Date of Birth/Age :

01.09.1953

Date of Appointment :

18.10.2006

DIN No.:

05305182

 

 

Name :

Mr. Shyam Mani

Designation :

Director appointed in casual vacancy

Address :

Flat No. 1201, Tower V, Mahalaxmi, Celesta, Planet Godrej, 30, Keshavrao Khadye Marg, Mumbai – 400011, India

Date of Birth/Age :

01.09.1953

Date of Appointment :

20.07.2012

DIN No.:

00273598

 

 

Name :

Mitsuhiro Tabei

Designation :

Director appointed in casual vacancy

Address :

1001-21-21 B, Chome Machiya, Arakawa Ku, Tokyo – 1160001, Japan

Date of Birth/Age :

01.09.1953

Date of Appointment :

27.04.2012

DIN No.:

01680668

 

 

Name :

Genroku Sugiyama

Designation :

Nominee Director

Address :

Room No. 201, Golmuri Club, Jamshedpur, Jharkhand, India

Date of Birth/Age :

S19.02.1956

Date of Appointment :

25.04.2013

DIN No.:

06588677

 

 

KEY EXECUTIVES

 

Name :

Mr. Azhagesan Ayyamperumal

Designation :

Company Secretary

Address :

Tulip 002, Rakesh Fantasy garden 118, Kasturinagar, 2nd Main Road, OMBR Layout, Banaswadi, Bangalore – 560 043, Karnataka, India

Date of Birth :

27.09.1963

Date of Appointment :

09.01.2001

PAN No.:

AACPA0275H

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 26.07.2013

 

Names of Shareholders

 

No. of Shares

Tata Motors Limited

39749994

Tata Motors Limited jointly with C. Ramakrishnan

1

Tata Motors Limited jointly with Hoshang K. Sethna

1

Hitachi Construction Machinery Company Limited

60008000

Sheba Properties Limited, India

250000

Tata Motors Limited jointly with Ranaveer Sinha

1

Tata Motors Limited jointly with G. Mani

1

Tata Motors Limited jointly with Manav Kohli

1

Tata Motors Limited jointly with N. Venkatakrishnan

1

Green ARM Company Limited

8000

IVRCL Limited

4800

Total

100020800

 

As on 26.07.2013

 

Equity Share Break up (Percentage of Total Equity)

 

Category

Percentage of Holding

Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others

60.00

Bodies corporate

40.00

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

The Company is engaged in the manufacturing, sale and servicing of construction machineries / equipments including excavators, etc.

 

 

Products :

Product Description

 

Item Code No.

Excavators, Loaders, Mechanical Shovels and parts thereof

8429

 

 

v      Hydraulic Excavators

v      Crawler Cranes

v      Wheel Loader

v      Backhoe Loader

v      Agency Products

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :

v      State Bank of India, Corporate Accounts Group Branch, Express Towers, Nariman Point, Mumbai – 400 021, Maharashtra, India

v      Standard Chartered Bank, 26-27, Raheja Towers, M.G. Road, Bangalore – 560 001, Karnataka, India

v      Bank of Baroda, Bangalore, Karnataka, India

v      Corporation Bank, Bangalore, Karnataka, India

v      HDFC Bank Limited, Kasturba Road, Bangalore – 560 001, Karnataka, India

v      DBS Bank Limited, Salarpuria Windsor, No.3, Ulsoor Road, Bangalore – 560 042, Karnataka, India

v      The Bank of Tokyo Mitsubishi UFJ Limited, Mumbai Branch, Hoechst House, 15 Floor, 193, Vinay K Shah Marg, Nariman Point, Mumbai – 400 021, Maharashtra, India

v      Citibank N.A., UB City, Canberra Block, #24, Vitthal Mallya Road, Bangalore – 560 001, Karnataka, India

v      Axis Bank Limited, No.9, M.G. Road, Bangalore – 560 001, Karnataka, India

v      Standard Chartered Bank, Bangalore Branch, 3rd Floor, Vaishnavi Serenity, 112, Koramangala Industrial Area, V Block, Kormangala, Bangalore – 560 095, Karnataka, India

v      IDBI Bank Limited

v      IndusInd Bank Limited, Du Parc Trinity, West Wing, I Floor, 17, M.G. Road, Bangalore – 560 001, Karnataka, India

 

 

Facilities :

SECURED LOANS

31.03.2013

(Rs. in Millions)

31.03.2012

(Rs. in Millions)

LONG TERM BORROWINGS

 

 

Foreign currency term loans from banks

5711.500

2937.400

 

 

 

SHORT TERM BORROWINGS

 

 

Foreign currency term loans from banks

1539.600

2295.400

Rupee term loan from banks

0.000

375.900

 

 

 

Total

7251.100

5608.700

 

Banking Relations :

--

 

 

Auditors :

 

Name :

S.R. Batliboi and Company LLP

Chartered Accountants

Address:

U B City, Canberra Block 12th and 13th Floor Vittal Mallya Road Bangalore -  560001, Karnataka, India

PAN No.:

AALFS0506L

 

 

Collaborators :

v      John Deere Industrial Equipment Company, USA

v      Euclid Hitachi, USA

 

 

Holding Company :

Hitachi Construction Machinery Company Limited

 

 

Company with Substantial Interest :

Tata Motors Limited

 

 

Subsidiaries :

v      Serviplem S.A., Spain

v      Comoplesa Lebrero S.A., Spain

v      North Baryval Special Vehicle, China ('NBSV') - subsidiary of Serviplem

 

 

Associate :

Telcon Ecoroad Resurfaces Private Limited (TERPL), India

CIN No.: U45203KA2003PTC032752

 

 

Fellow Subsidiaries Hitachi :

v      Hitachi Sumitomo Heavy Industries Construction Crane (shanghai) Company Limited(HSS)

v      Hitachi Construction Machinery Asia and Pacific Pte. Limited(HMAP)

v      Hitachi Construction Machinery (Europe) N.V. (HCME)

v      Pt. Hitachi Construction Machinery Indonesia (HCMI)

v      Hitachi Construction Machinery (Australia) Pty., Limited (HCA)

v      Hitachi Construction Truck Manufacturing Limited(HTM)

v      Hitachi Construction Machinery Camino Company Limited

v      Hitachi Construction Machinery Trading Company Limited

v      Hitachi Construction Machinery (China) ('HCMC')

v      Hitachi Construction Machinery (Singapore) Pte. Ltd. ('HCMS')

v       Hitachi Kenki Logistics Techonlogy Company Limited ('HKLT')

 

 

Fellow Subsidiaries TML :

v      Tal Manufacturing Solutions Limited

v      Tata Technologies Limited

v      HV Transmissions Limited

v      Sheeba Properties Limited

v      Tata Finance Limited

v      Tata Motors Financial Services Limited

v      HV Axles Limited

v      Concorde Motors India Limited

v      TML Dirvelines Limited (formerly HV Axles Limited) ('TDL')

 

 

CAPITAL STRUCTURE

 

As on 31.03.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

100020800

Equity Shares

Rs.10/- each

Rs.1000.208 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

100020800

Equity Shares

Rs.10/- each

Rs.1000.208 Millions

 

 

 

 

 


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2013

31.03.2012

31.03.2011

I.        EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

1000.200

1000.200

1000.000

(b) Reserves & Surplus

4024.200

4739.100

5943.300

(c) Money received against share warrants

0.000

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

0.000

0.000

0.200

Total Shareholders’ Funds (1) + (2)

5024.400

5739.300

6943.500

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

6145.800

2937.400

2986.000

(b) Deferred tax liabilities (Net)

0.000

204.700

323.600

(c) Other long term liabilities

0.000

0.000

0.000

(d) long-term provisions

141.100

108.700

98.200

Total Non-current Liabilities (3)

6286.900

3250.800

3407.800

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

1539.600

2671.300

2100.500

(b) Trade payables

6885.500

6722.900

5896.200

(c) Other current liabilities

2830.200

3719.100

1958.900

(d) Short-term provisions

608.100

631.000

890.700

Total Current Liabilities (4)

11863.400

13744.300

10846.300

 

 

 

 

TOTAL

23174.700

22734.400

21197.600

 

 

 

 

II.      ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

9063.900

7856.800

6740.800

(ii) Intangible Assets

812.000

0.000

0.000

(iii) Capital work-in-progress

298.900

1151.500

1341.400

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

1853.400

1888.200

1788.700

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

1613.000

1486.300

1112.100

(e) Other Non-current assets

120.800

144.200

23.200

Total Non-Current Assets

13762.000

12527.000

11006.200

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

4708.200

6087.800

5137.100

(c) Trade receivables

2731.000

2688.600

2757.400

(d) Cash and cash equivalents

427.300

23.800

788.600

(e) Short-term loans and advances

1546.200

1407.200

1508.300

(f) Other current assets

0.000

0.000

0.000

Total Current Assets

9412.700

10207.400

10191.400

 

 

 

 

TOTAL

23174.700

22734.400

21197.600

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Income

22423.200

27141.900

24407.000

 

 

Other Income

202.000

189.100

200.900

 

 

TOTAL                                    

22625.200

27331.000

24607.900

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of materials consumed

15110.400

19572.500

15649.700

 

 

Purchases of stock-in-trade

1652.200

2154.200

2464.300

 

 

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

243.600

(255.500)

48.000

 

 

Employee benefit expense

1458.200

1567.000

1261.500

 

 

Other expenses

3776.700

3928.000

2962.200

 

 

TOTAL                                    

22241.100

26966.200

22385.700

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

384.100

364.800

2222.200

 

 

 

 

 

Less

FINANCIAL EXPENSES                        

740.400

475.400

487.900

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

(356.300)

(110.600)

1734.300

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                    

572.700

1119.700

379.200

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

(929.000)

(1230.300)

1355.100

 

 

 

 

 

Less

TAX                                                     

(204.700)

(118.900)

403.100

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX

(724.300)

(1111.400)

952.000

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

(72.43)

(111.14)

9.52

 


KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)

(3.20)

(4.07)

3.87

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

(4.14)

(4.53)

5.55

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

(4.42)

(6.25)

7.50

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

(0.18)

(0.21)

0.19

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

1.53

0.98

0.73

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

0.79

0.74

0.94

 

 

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

No

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

 

 

UNSECURED LOANS

 

PARTICULAR

31.03.2013

(Rs. in Millions)

31.03.2012

(Rs. in Millions)

LONG TERM BORROWINGS

 

 

Term loan from banks

434.300

0.000

 

 

 

Total

434.000

0.000

 

 

INDEX OF CHARGES

 

S.No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10465024

22/11/2013

630,000,000.00

Citi Bank N.A.

UB City, Canberra Block, #24, Vittal Mallya Road,  Bangalore, Karnataka - 560001, INDIA

B91480665

2

10447864

18/07/2013

550,000,000.00

Citi Bank N.A.

UB City, Canberra Block, #24, Vittal Mallya Road,  Bangalore, Karnataka - 560001, INDIA

B84450295

3

10423931

09/04/2013

550,000,000.00

Citi Bank N.A.

UB City, Canberra Block, #24, Vittal Mallya Road,  Bangalore, Karnataka - 560001, INDIA

B74495185

4

10411078

08/02/2013

500,000,000.00

INDUSIND BANK LTD.

2401 GEN THIMMAYYA ROAD, CONTONMENT, PUNE, Maharashtra - 411001, INDIA

B70538954

5

10411077

08/02/2013

1,000,000,000.00

INDUSIND BANK LTD.

2401 GEN THIMMAYYA ROAD, CONTONMENT, PUNE, Maharashtra - 411001, INDIA

B70538723

6

10400095

14/12/2012

560,000,000.00

Citi Bank N.A.

UB City, Canberra Block, #24, Vittal Mallya Road,  Bangalore, Karnataka - 560001, INDIA

B66936063

7

10374413

17/08/2012

485,000,000.00

Standard Chartered Bank

BANGALORE BR, 3RD FLOOR, VAISHNAVI SERENITY, 112,
KORAMANGALA INDUSTRIAL AREA, V BLOCK, KORMANGALA,
, BANGALORE, Karnataka - 560095, INDIA

B57240012

8

10354110

25/04/2012

520,000,000.00

Citibank N.A.

3rd floor, Canberra Block, UB City, #24, Vittal Mallya Road, Bangalore, Karnataka - 560001, INDIA

B39105713

9

10317377

22/09/2011

500,000,000.00

ING VYSYA BANK LIMITED

22,GROUND FLOOR,ING VYSYA HOUSE, M.G.ROAD, BANGALORE, Karnataka - 560001, INDIA

B25202474

10

10286907

01/05/2011

480,000,000.00

Citibank N.A

UB City, Canberra Block, #24 Vittal Mallya Road,  Bangalore, Karnataka - 560001, INDIA

B12898326

11

10277889

22/03/2011

900,000,000.00

Standard Chartered Bank

Raheja Towers, 26/27 M.G.Road, Bangalore, Karnata
ka - 560001, INDIA

B09797424

12

10238099

06/07/2010

922,000,000.00

DBS Bank Limited

SALAPURIA WINDSOR, NO. 3, (OLD NO. 10), ULSOOR RO
AD, WARD NO. 78 BANGALORE, Karnataka - 560042, INDIA

A91690800

13

10206277

10/12/2009

750,000,000.00

IDBI Bank Limited

IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI, Maharashtra - 400005, INDIA

A77669547

14

10150578

20/10/2011 *

2,900,000,000.00

THE BANK OF TOKYO MITSUBISHI UFJ LTD

MUMBAI BRANCH HOECHST HOUSE, 15TH & 16TH FLOOR, 193, VINAY K SHAH MARG, NARIMAN POINT, MUMBAI, Maharashtra - 400021, INDIA

B33157454

15

80048612

25/07/2013 *

1,000,000,000.00

Standard Chartered Bank

No. 112, Serenity, Koramangala Industrial Area,Koramangala, 5th Block, Bangalore, Karnataka - 560095, INDIA

B81625451

16

80050721

23/01/2009 *

1,500,000,000.00

HDFC BANK LIMITED

HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W
, MUMBAI, Maharashtra - 400013, INDIA

A56761174

17

80064880

30/07/1999

2,500,000,000.00

STATE BANK OF INDIA

CORPORATE ACCOUNTS GROUP, 20th FLOOR, EXPRESS TOW
ERS, MUMBAI, Maharashtra - 400021, INDIA

-

 

* Date of charge modification

 

 

CORPORATE INFORMATION

 

Subject (formerly Telco Construction Equipment Company Limited) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The Company is engaged in the manufacturing, sale and servicing of construction machineries / equipments including excavators, etc.

 

INDUSTRY OVERVIEW

 

The country’s economic growth continued to stumble this year as well with the GDP growth falling from 6.2% in FY 2011-12 to an estimated 5% in FY 2012-13. Also the year was marked by near stagnant industrial production, continued decline in credit growth and reduced investment inflows. The conscious effort by the Government of India (GoI) to contain the high fiscal deficit by cutting planned expenditure added to the woes. Mining output declined by 2.5% against a decline of 1.9% in the previous year. The slowdown that was witnessed across the globe and more particularly in China impacted the world CE markets. All these factors coupled with contraction of demand in the CE industry, resulted in the negative growth in certain products.

 

EXPORTS

 

The Company tied up with Hitachi Construction Machinery Middle East Corporation FZE (HMEC) and Tata International Limited (TIL), in order to expand its export business in Middle East and certain pockets of Africa. It is also proposed to enter into a dealership agreement with both these companies for setting up support infrastructure in some territories.

 

OUTLOOK

 

The Government of India had as per budget estimated the country’s GDP growth for the year 2013-14 in the range of 6.1-6.7%. However, several analysts deem this optimistic in the light of severe headwinds faced by the economy and adverse global conditions in the initial few months of the year. The budget sought to inject more funds into the Rural and Urban infra sectors, provide infrastructure companies with better access to funds, encourage investment with incentives through issue of bonds and access to foreign borrowings. In the budget, planned expenditure for the year has been increased by 29% over previous year in the run up to the elections. Also a fast track award target for Road Construction, development of the Freight corridor networks, increased support to the agricultural sector, and the thrust for rural and urban infrastructure should help the industry especially with the demand for smaller Excavators and Wheeled Products . After a subdued growth in 2010-11 and de-growth in the following years, the Mining sector is likely to revive. Also, this should be bolstered by the cyclical demand in the sector by way of replacement of aged mining machinery. The new demand would however depend largely on expediting the considerable backlog of project clearances.

 

FINANCE

 

 During the year 2012-13, the interest rates continued moving higher due to periodic hikes in policy rates by RBI and constant inflationary pressure on the economy. The Government has also restrained its public spending for projects. Despite the impacts on liquidity, the Company was successful in entering in to trade advance arrangements with its financiers, whereby the collection against month-end dispatches were received in the same month of dispatch. Curtailing the operations in view of slowdown and aligned procurements helped in reduction of inventories. The strain on cash flow from operations had also affected the planned capital expenditure, requiring pull-back of projects of low priority and incurrence of only committed spends, which helped in containing the borrowings. The Company’s focused efforts towards reductionin collection cycle of the receivables had also helped in controlling its working capital.

 

ASSOCIATES AND SUBSIDIARIES

 

Serviplem S. A. U, a subsidiary of the Company in Spain, is in the business of manufacturing Concrete Transit Mixers, Dry Bulk Tanks and Batch Plants under the brand name ‘Baryval. Comoplesa Lebrero, S. A. U, another subsidiary, is in the business of design, engineering, manufacture and sale of Soil and Asphalt Compactors. During the year, Spain continued to reel under economic recession. Various strategies were deployed to relook at the operations in Spain to enable the subsidiaries to sustain themselves. Further, a statement under section 212 (1) (e) of the Companies Act, 1956 is furnished in the Annexure to this report.

 

Telcon Ecoroad Resurfaces Private Limited (TERPL), an associate company is in the business of promoting Hot-in-place (HIR) technology and related consultancy activities. Consequent to the demerger of its road laying business to the Company in 2011, TERPL has now restricted its activities only to consultancy services as above for the country’s road projects to be executed by the Company. Continuing its active engagement with NHAI, state governments and large BOT road operators, it is likely to secure for the Company a project with a leading BOT operator near Chennai. This will be executed in the current financial year.

 

 

FIXED ASSETS

 

v      Buildings 

v      Leasehold Land

v      Leasehold Improvements

v      Plant, Machinery and Equipment

v      Furniture, Fixtures and Office Appliances

v      Vehicles and Transport

v      Technical Knowhow

 

 

 


 

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.61.62

UK Pound

1

Rs.100.83

Euro

1

Rs.85.27

 

 

INFORMATION DETAILS

 

Report Prepared by :

ANK

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

7

--RESERVES

1~10

6

--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

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

 

54

 

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.