MIRA INFORM REPORT

 

 

Report Date :

31.12.2013

 

IDENTIFICATION DETAILS

 

Name :

TAL MANUFACTURING SOLUTIONS LIMITED (w.e.f. 30.01.2002)

 

 

Formerly Known As :

TELCO AUTOMATION LIMITED

 

 

Registered Office :

PDO Building, Tata Motors Campus, Chinchwad, Pune – 411033, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

13.03.2000

 

 

Com. Reg. No.:

11-130290

 

 

Capital Investment / Paid-up Capital :

Rs.650.000 Millions

 

 

CIN No.:

[Company Identification No.]

U29100PN2000PLC130290

 

 

PAN No.:

[Permanent Account No.]

AABCT1342E

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Subject is engaged in the manufacturing of capital goods (including parts thereof) and services in respect thereof.

 

 

No. of Employees :

Information declined by the management

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (48)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

USD 3386000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a wholly owned subsidiary of ‘TATA Motors Limited’.

 

It is an established company having satisfactory track record.

 

Company has incurred loss from its operation in 2013. However, liquidity position seems to be strong as there appears no external borrowings by the company.

 

Company also receives financial support from its holding company.

 

Trade relations are reported to be fair. Business is active. Payment terms are reported to be usually correct.

 

In view of strong holding, 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.

 

 

INDIAN ECONOMIC OVERVIEW

 

India’s current account deficit narrowed in the quarter ended September as government measures to curb imports, especially gold, kicked in.  The current account deficit, the excess of a country’s imports of goods and services over exports, narrowed to $ 5.2 billion from $ 21 billion in the year ago period, according to provisional Reserve Bank of India data. Finance Minister P. Chidambaram said the CAD for the year will be less than $ 60 billion or 3 per cent of GDP and the latest data suggests the government may achieve the target.

 

India was ranked 94th among the world’s most corrupt nations list. Denmark and New Zealand topped as the cleanest while Somalia emerged as the most corrupt.

 

India’s services sector activity witnessed a moderate improvement in November over the previous month, even while indicating the fifth successive monthly contraction, according the HSBC survey.

 

$53 million estimated losses suffered by India due to phishing attacks during the third quarter, according to a study by RSA. India ranks fourth in the list of nations hit by phishing attacks. The US remained at the top of the charts. Phishing is the process of acquiring information such as user names, passwords and credit card details by sending e-mails disguised as official mails.

 

Rs.4080 million worth of mobile-phone-based transactions by July 2013 compared to Rs.260 million in September, 2012, according to Deloitte report. The number of transactions has shot up from 94000 to 701000.

 

India aims to earn Rs.400000 million from the bandwidth auction set for January. The merger and acquisition guidelines, cleared by a group of ministers, will be out before the auction begins so that players can make informed decisions on the auctions.

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CRISIL

Rating

A (Long Term Rating)

Rating Explanation

Adequate credit quality and average credit risk.

Date

September 25, 2013

 

Rating Agency Name

CRISIL

Rating

A1 (Short Term Rating)

Rating Explanation

Very strong degree of safety and lowest credit risk.

Date

September 25, 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 DENIED BY

 

Name :

Mr. Ajay Mahajan

Designation :

Divisional Manager

Date :

27.12.2013

 

 

LOCATIONS

 

Registered Office/ Corporate Office/ Facory 1 :

PDO Building, Tata Motors Campus, Chinchwad, Pune – 411033, Maharashtra, India

Tel. No.:

91-20-66135509/ 5550/ 5510

Fax No.:

91-20-66136318/ 66135404

E-Mail :

tal@tal.co.in

anil.ketkar@tal.co.in

kavita.jain@tal.co.in

Website :

www.tal.co.in

 

 

Factory 2 :

Aerospace Division, Sector-3, Kalkuhi Village, Mihan SEZ, Nagpur – 441 108, Maharashtra, India

 

 

Regional Office (South) :

Tata Motor Office, 7th floor, Kasi Arcade, 116, Theyagaraya Road, T. Nagar, Chennai – 600 017, Tamilnadu, India

Tel. No.:

91-44-28153815

 

 

Regional Office (North) :

Tata Motor Office, No.1, Ghazipur Industrial Area, Patpargani, New Delhi – 110 096, India

Tel. No.:

91-11-22232033

 

 

DIRECTORS

 

As on: 06.07.2013

 

Name :

Mr. Ravi Rajni Kant

Designation :

Chairman cum Managing Director

Address :

A-3, Pallonji Mansion, 43, Cuffe Parade, Near President Hotel, Colaba, Mumbai - 400 005, Maharashtra, India

Date of Birth/Age :

01.06.1944

Qualification :

Bachelor of Technology from IIT, Kharagpur and a Masters in Science from the University of Aston, Birmingham, UK

Date of Appointment :

17.05.2007

DIN No. :

00016184

 

 

Name :

Mr. Rameshwar Singh Thakur

Designation :

Director

Address :

Flat No.205, Burlington Hiranandani Estate, Patlipada, Thane (West), Thane – 400 607, Maharashtra, India

Date of Birth/Age :

06.09.1948

Qualification :

Bachelor in Mechanical Engineering and a MBA from XLRI.

Date of Appointment :

17.07.2006

DIN No. :

00020126

 

 

Name :

Mr. Satish Bhaskar Pradhan

Designation :

Director

Address :

Flat No.173, Apsara Housing Society, NCPA Complex, Nariman Point, Mumbai - 400 021, Maharashtra, India

Date of Birth/Age :

04.01.1955

Qualification :

Masters in History from Delhi University

Date of Appointment :

08.08.2001

DIN No. :

00175969

 

 

Name :

Mr. Niranjan Shankar Kulkarni

Designation :

Director

Address :

221, Falcons Crest, Tata Colony, P.T. Road, Parel,  Mumbai – 400 012, Maharashtra, India

Date of Birth/Age :

25.06.1956

Qualification :

Mechanical Engineer from Pune University and PGDM from AIMA

Date of Appointment :

24.07.2009

DIN No. :

02667029

 

 

Name :

Mr. Satish Balkrishna Borwankar

Designation :

Additional Director

Address :

Fl N. 22, Viola S No. 118/3-5, Warje, Near Cipla Hospital, Kothrud, Pune – 411052, Maharashtra, India 

Date of Birth/Age :

15.07.1952

Date of Appointment :

06.07.2013

DIN No. :

01793948

 

 

Name :

Mr. Arvind Mathew

Designation :

Director

Address :

4 Kapaleeswar Nagar, 9th Cross Street, Neelankarai, Chennai – 600041, Tamilnadu, India 

Date of Birth/Age :

06.01.1960

Date of Appointment :

06.07.2013

DIN No. :

01377003

 

 

Name :

Mr. Rajesh Gobindram Khatri

Designation :

Whole-Time Director

Address :

Frangipani, 5 B.J. Road, Sadhu Vaswani Chowk, Behind Hotel Woodland, Pune – 411001, Maharashtra, India 

Date of Birth/Age :

11.07.1962

Qualification :

B.E. in Production Engineering.

Date of Appointment :

06.07.2013

PAN No.:

AAFPK1960N

DIN No. :

03620093

 

 

KEY EXECUTIVES

 

Name :

Mr. Ajay Mahajan

Designation :

Divisional Manager

 

 

Name :

Ms. Kavita Sethi Jain

Designation :

Secretary

Address :

J-703, Queens Town, Near Lokmanya Hospital, Chinchwad, Pune – 411 019, Maharashtra, India

Date of Birth/Age :

06.04.1970

Date of Appointment :

15.04.2008

PAN No.:

ALOPS1417J

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on: 06.07.2013

 

Names of Shareholders

 

No. of Shares

Tata Motors Limited, India

 

64999930

Tata Motors Limited, India jointly with Ravi Kant

 

10

Tata Motors Limited, India jointly with Sethna K Hoshang

 

10

Tata Motors Limited, India jointly with Atam P. Arya

 

20

Tata Motors Limited, India jointly with C.R. Ramakrishnan

 

10

Tata Motors Limited, India jointly with Patel Vispi

 

10

Tata Motors Limited, India jointly with Pisharody Ravindra

 

10

 

 

 

Total

 

65000000

 

Equity Share Break up (Percentage of Total Equity)

 

As on: 06.07.2013

 

Category

 

Percentage

Bodies corporate

 

100.00

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is engaged in the manufacturing of capital goods (including parts thereof) and services in respect thereof.

 

 

GENERAL INFORMATION

 

No. of Employees :

Information declined by the management

 

 

Bankers :

·         State Bank of India Industrial Finance Branch, "Tara Chambers" 2nd floor, Pune-Mumbai Highway, Near Mari Aai Police Chowky Wakdewadi, Pune - 411003, Maharashtra, India

·         Union Bank of India, Kasarwadi Branch, Pune - 411034, Maharashtra, India

 

 

Facilities :

(Rs. In Millions)

Secured Loan

As on

31.03.2013

As on

31.03.2012

SHORT-TERM BORROWINGS

 

 

Loans repayable on demand from banks

(Secured by hypothecation by way of first charge on stock of raw material, work-in-progress, stores, spares, finished goods and book debts.)

0.000

42.734

Other loans and advances

(Secured by hypothecation by way of first charge on stock of raw material, work-in-progress, stores, spares, finished goods and book debts.)

0.000

91.574

 

 

 

Total

0.000

134.308

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Deloitte Haskins and Sells

Chartered Accountants

Address :

12, DR. Annie Besant Road, Opposite Shiv Sagar Estate, Worli, Mumbai – 400018, Maharashtra,  India

PAN No.:

AABFD7919A

 

 

Holding Company :

Tata Motors Limited

CIN No.:L28920MH1945PLC004520

 

 

Fellow Subsidiary Company  :

·         TML Drivelines Limited

CIN No.: U34100MH2000PLC124874

 

·         Tata Marcopolo Motors Limited

CIN No.:U34101MH2006PLC164771

 

·         Tata Technologies Limited

CIN No.:U72200PN1994PLC013313

 

·         Tata Motors (SA) (PTY) Limited

 

 

CAPITAL STRUCTURE

 

As on: 31.03.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

90000000

Equity Shares

Rs.10/- each

Rs.900.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

65000000

Equity Shares

Rs.10/- each

Rs.650.000 Millions

 

 

 

 

 

 


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2013

31.03.2012

31.03.2011

EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

650.000

650.000

650.000

(b) Reserves & Surplus

196.735

417.150

349.593

(c) Money received against share warrants

0.000

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

0.000

0.000

0.000

Total Shareholders’ Funds (1) + (2)

846.735

1067.150

999.593

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

0.000

0.000

0.000

(b) Deferred tax liabilities (Net)

0.000

0.000

0.000

(c) Other long term liabilities

17.256

23.800

365.534

(d) long-term provisions

103.826

64.133

58.401

Total Non-current Liabilities (3)

121.082

87.933

423.935

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

0.000

134.308

266.677

(b) Trade payables

375.969

482.048

502.267

(c) Other current liabilities

1177.149

784.811

610.729

(d) Short-term provisions

21.811

61.018

87.896

Total Current Liabilities (4)

1574.929

1462.185

1467.569

 

 

 

 

TOTAL

2542.746

2617.268

2891.097

 

 

 

 

ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

289.608

323.574

322.474

(ii) Intangible Assets

19.518

11.673

23.521

(iii) Capital work-in-progress

223.793

326.607

921.234

(iv) Intangible assets under development

0.000

6.689

3.692

(b) Non-current Investments

0.000

0.000

0.000

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

133.960

146.901

180.092

(e) Other Non-current assets

3.500

19.015

49.127

Total Non-Current Assets

670.379

834.459

1500.140

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

428.061

467.810

313.436

(c) Trade receivables

456.996

561.021

550.787

(d) Cash and cash equivalents

48.408

74.685

20.474

(e) Short-term loans and advances

605.112

135.608

48.929

(f) Other current assets

333.790

543.685

457.331

Total Current Assets

1872.367

1782.809

1390.957

 

 

 

 

TOTAL

2542.746

2617.268

2891.097


PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Income

1751.457

2188.563

2157.151

 

 

Other Income

234.526

433.158

342.715

 

 

TOTAL                                     (A)

1985.983

2621.721

2499.866

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of materials consumed

1209.263

1665.921

1494.662

 

 

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

3.429

(93.071)

(24.980)

 

 

Employee benefit expense

550.577

479.554

423.318

 

 

Other expenses

390.089

348.942

379.360

 

 

Expenditure on production, transportation and other expenditure pertaining to E and P activities

0.000

0.000

(28.688)

 

 

TOTAL                                     (B)

2153.358

2401.346

2243.672

 

 

 

 

 

Less

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

(167.375)

220.375

256.194

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

3.998

44.647

26.395

 

 

 

 

 

 

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

(171.373)

175.728

229.799

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

48.604

44.833

44.653

 

 

 

 

 

 

PROFIT/ (LOSS) BEFORE TAX (E-F)                  (G)

(219.977)

180.895

185.146

 

 

 

 

 

Less

TAX                                                                  (H)

0.437

25.566

38.100

 

 

 

 

 

 

PROFIT/ (LOSS) AFTER TAX (G-H)                   (I)

(220.414)

105.329

147.046

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

417.150

349.593

259.205

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Dividend

0.000

32.500

48.750

 

 

Tax on Dividend

0.000

5.272

7.908

 

BALANCE CARRIED TO THE B/S

196.736

417.150

349.593

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

87.743

65.158

71.714

 

 

 

 

 

 

Earnings/(Loss) Per Share (Rs.)

(3.39)

1.62

2.26

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)

(11.10)

4.02
5.88

 

 

 

 
 

Net Profit Margin

(PBT/Sales)

(%)

(12.56)

8.27
8.58

 

 

 

 
 

Return on Total Assets

(PBT/Total Assets}

(%)

(9.49)

7.90
9.40

 

 

 

 
 

Return on Investment (ROI)

(PBT/Networth)

 

(0.26)

0.17
0.19

 

 

 

 
 

Debt Equity Ratio

(Total Debt/Networth)

 

0.00

0.13
0.27

 

 

 

 
 

Current Ratio

(Current Asset/Current Liability)

 

1.19

1.22
0.95

 

 

LOCAL AGENCY FURTHER INFORMATION

 

CURRENT MATURITIES OF LONG-TERM DEBT DETAILS – NOT AVAILABLE

 

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

Yes

8]

No. of employees

No

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

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

Yes

33]

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

No

34]

External Agency Rating, if available

Yes

 

 

BUSINESS OVERVIEW

 

The business environment in which the company operates went through a challenging time in FY 12- 13. Unfavorable macro-economic factors like high inflation and high interest rates which persisted throughout the year, decelerated the investment opportunities. Key economic indices like GDP and IIP declined to two year lows. On an overall basis, the capital goods industry showed negative growth during FY 12-13. The enquiry pipeline declined significantly during this period. The decline was evident in most of the industry / sectors which TAL serves and was more pronounced in the automotive segment.

 

In order to de risk its growth; the Company has taken various steps to increase the spread of its products and solutions offerings to sectors other than automotive. This has reduced the Company s dependency on the automotive segment to some extent. The Company has focused on new customers and players viz: in aerospace, earth moving and construction, railways and other allied engineering sectors. TAL s knowledge and capabilities in precision engineering, machining, fabrication and integration of complex and heavy equipment systems is being leveraged to secure business from these sectors.

 

Due to the change in design from "Hybrid Titanium Floor Beams" to "Advanced Composite Floor Beams (ACFB)" by Boeing for their 787 Dreamliner Program, modified contract agreement was signed with Boeing during FY-2012. Accordingly, to meet the modified requirement, new set of facilities have been created at Nagpur and project activities are being progressed in line with the mutually agreed project schedule. The Company is also exploring business opportunities with other international aerospace OEMs such as Airbus, Pratt and Whitney, Rolls Royce etc.

 

 

OPERATIONS

 

To overcome the challenges posed by the difficult economic and business environment, the Company undertook focused efforts to improve the operational efficiency. The initiatives include fixed and variable cost reduction, inventory control, reduction in outstanding and organization restructuring based on lean principles. SQCDPME has been institutionalized and greater thrust has been brought on project management to improve turnaround time. Due to the improvement in the quality of its financials, the company has been able to maintain CRISIL rating at A+ (long term) and A1 (short term).

 

In machine tools, the Company sold 133 standard machining centers in the FY 2012-13 and launched four new Vertical Machining Centers (VMCs) and two new Horizontal Machining Centers (HMCs). New customers from the Power sector have been added. The Company bagged major paint shop orders from M/s Emerson Electric and M/s John Deere for powder coating plants. The Company supported Tata Motors by completing a significant portion of the revamping of Jamshedpur PT-CED plant in the month of March 2013. An order of special significance was the Surface Launcher project which was awarded by Research and Development Labs of DRDO. The Robotics, Jigs and Fixtures (RJF) business continued to grow and expand its product and customer portfolio. In the railways and metro coaches segment, the RJF-BU booked major orders from M/s Alstom and M/s Texmaco. Large and long term aerospace tooling orders from Tata Lockheed Martin and Alenia were successfully completed during the current financial year. A special highlight was the export order secured from M/s JCB, UK for turnkey supply of fixtures. To undertake the production of new advanced composite floor beams (ACFB) for Boeing 787 Dreamliner, TAL and Boeing have been working together to build-up the manufacturing facilities and factory set-up as per the new engineering and technological requirements. The special processes have been NADCAP approved and the manufacturing facility has been qualified to manufacture aerospace components. The Company has already commenced the production and supply of metal fittings for the initial sets of floor beams being produced by Boeing at their development center (ADC). Manufacturing of composite pre-production manufacturing (PPM) beams has started, after the successful qualification of composite facility by Boeing. The manufacture and supply of the complete floor beams are expected to commence during the later part of the FY 13-14.

 

In the last TBEM assessment, TAL has been awarded Serious Adoption award for a band jump and the score increase in Category 5 (Workforce) has been maximum at 12% rise over last year’s score.

 

 

PERFORMANCE

 

Due to severe economic recession as well as deferment of many project orders by the customers, the total annual income of the Company for 2012-13 was Rs 1986.000 Millions, a decline of 25% as compared to the previous year. The significant decline in volumes as well as pressure on profit margin has affected the profitability of the Company. The profitability was also severely affected due to onetime provisions, lower other income and cost over runs in respect of certain contracts. During the FY 2012-13, the company suffered a major loss of Rs.220.000 Millions. The Company has reported loss after a gap of 8 years.

 

During the year, the Company has achieved an order booking (excluding excise duty) of over Rs.1707.000 Millions, showing a decrease of 30% over the previous year.

 

 

OUTLOOK

 

While the economic situation and growth projections continue to be grim, the Company is undertaking an overhaul of its operation structure to reduce the cost base and widen its service offerings by leveraging its capabilities to offer Integrated Manufacturing Solutions. The Company, so far has been marketing and selling its products in a discrete manner, with sales focus on equipment/hardware sales. Based on an intensive strategic analysis and evaluation, the Company sees an opportunity to transform itself into an Integrated Manufacturing Solutions provider.

 

The Company will continue to actively pursue the serious enquiries received for paint shops, conveyor systems, robotic welding cells and fixtures in automotive, construction and farm equipment sectors.

 

Tipper hydraulics business will be augmented by the addition of new front end kits to the product portfolio, and also by increasing retail business through SPD. The Company will fully support TML by aligning the new TAL products with TML s new tipper model range. In order to harness the business opportunities of growing aerospace market, Company has vigorously pursued and is at an advanced stage of negotiations with several OEMs. To take-up the manufacture of these work packages, a new generic facility is being created. The additional growth avenues identified in the aerospace flying parts, associated tooling market, low cost robotics and automated storage and retrieval systems (ASRS) will be vigorously pursued to offset the slowdown in other key customer/industry segments.

 

 

INDEX OF CHARGES

 

S.No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10177946

17/09/2009

540,000,000.00

State Bank of India Industrial Finance Branch

"TARA CHAMBERS"2ND FLOOR, PUNE-MUMBAI HIGHWAY, NEAR MARI AAI POLICE CHOWKY WAKDEWADI, PUNE, MAHARASHTRA - 411003, INDIA

A70540620

2

10159428

09/08/2011 *

20,000,000.00

UNION BANK OF INDIA LIMITED

KASARWADI BRANCH, KASARWADI, PUNE, MAHARASHTRA - 411034, INDIA

B18895474

3

80037157

01/06/2011 *

280,000,000.00

HDFC BANK LIMITED

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

B14870216

4

90143173

30/06/2009 *

165,000,000.00

UNION BANK OF INDIA

KASARWADI BRANCH, PUNE, MAHARASHTRA - 411034, INDIA

A66272667

 

* Date of charge modification

 

 

FIXED ASSETS:

 

Tangible Assets

v      Leasehold Land

v      Plant and Machinery

v      Office Equipment

v      Furniture and Fixtures

v      Vehicles

Intangible Assets

v      Software

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.62.00

UK Pound

1

Rs.102.17

Euro

1

Rs.85.19

 

 

INFORMATION DETAILS

 

Information Gathered by :

HNA

 

 

Report Prepared by :

VRN

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

6

--RESERVES

1~10

5

--CREDIT LINES

1~10

5

--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

 

48

 

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.