MIRA INFORM REPORT

Report No. :	505974
Report Date :	02.05.2018

IDENTIFICATION DETAILS

Name :	TATA HITACHI CONSTRUCTION MACHINERY COMPANY PRIVATE LIMITED [w.e.f. 05.03.2015]
Formerly Known As :	TATA HITACHI CONSTRUCTION MACHINERY COMPANY LIMITED [w.e.f. 23.11.2012] TELCO CONSTRUCTION EQUIPMENT COMPANY LIMITED
Registered Office :	Jubilee Building, 45, Museum Road, Bangalore – 560025, Karnataka
Tel. No.:	91-80-66953301
Country :	India
Financials (as on) :	31.03.2017
Date of Incorporation :	30.12.1998
Com. Reg. No.:	08-024588
Capital Investment / Paid-up Capital :	INR 1143.088 Million
CIN No.: [Company Identification No.]	U85110KA1998PTC024588
TIN No.:	29260045847
IEC No.: [Import-Export Code No.]	Not Divulged
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AAACT9077B
GSTN : [Goods & Service Tax Registration No.]	29AAACT9077B1Z6
Legal Form :	Private Limited Liability Company.
Line of Business :	The Company is engaged in the manufacturing, sale and servicing of construction machineries/ equipments including excavators. (Registered activity)
No. of Employees :	Information declined by the management

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

A

Credit Rating	Explanation	Rating Comments
A	Acceptable Risk	Business dealings permissible with moderate risk of default

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company incorporated in the year 1998 and having good track. It is joint venture between Tata Motors Limited (40% stake) and Hitachi Construction Machinery Company Limited (60% stake). For the financial year 2017, the company has increased in its revenue from operation as compared to previous year and reported average profitability margin of 4.98%. Rating takes into consideration strong financial profile of the company marked by healthy networth base and average debt balance sheet. Further, rating derives strength from its strong operational and management support from its holding entity and its reputed market position. Rating also reflects company’s established track records of business operations along with improvement in the revenue and profitability during the year which has wiped out of its accumulated losses. Trade relations are reported as fair. Business is active. Payments are reported to be regular. In view of established market position, the company can be considered good for normal business dealings at usual trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List

Country Name	Previous Rating (30.09.2017)	Current Rating (31.12.2017)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Long Term Rating = AA-
Rating Explanation	High degree of safety and very low credit risk
Date	05.03.2018
Rating Agency Name	ICRA
Rating	Short Term Rating = A1+
Rating Explanation	Very strong degree of safety and carry lowest credit risk
Date	05.03.2018

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 31-03-2018.

BIFR (Board for Industrial & Financial Reconstruction) LISTING STATUS

Subject’s name is not listed as a Sick Unit in the publicly available BIFR (Board for Industrial & Financial Reconstruction) list as of 02.04.2018

IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS

Subject’s name is not listed in the publicly available IBBI (Insolvency and Bankruptcy Board of India) list as of report date.

INFORMATION DENIED BY

Name :	Ms. Sandhya
Designation :	Assistant Accounts Manager
Contact No.:	91-657-6691375
Date :	27.04.2018

MANAGEMENT NON-COOPERATIVE (TEL NO.: 91-657-6690700)

91-80-66953301 (NOT WORKING)

LOCATIONS

Registered Office/ Corporate Office :	Jubilee Building, 45, Museum Road, Bangalore – 560025, Karnataka, India
Tel. No.:	91-80-66953301-05
Fax No.:	91-80-66953309
E-Mail :	info@tatahitachi.co.in A.Azhagesan@tatahitachi.co.in tatahitachi@tatahitachi.co.in
Website :	www.tatahitachi.co.in
Service Headquarters and Training Centre:	Service Head Quarters, Adjacent to SBI Telco Campus Branch, Jamshedpur - 831004, Jharkhand, India
Tel. No.:	91-657-6690700 / 769
Fax No.:	91-657-6690706
E-Mail :	Customer.Support@Tatahitachi.Co.In Service.Hotline@Tatahitachi.Co.In
Spares Parts Network:
Feeder Warehouse: Dharwad:	Service and Spares Support Center, Tata Hitachi Campus, Block No.2, Kiadb, Belur Industrial Estate, Garag Road, Mummigatti, Dharwad – 580010, Karnataka, India
Tel. No.:	91-836-6552593 / 2486665 / 7 / 6623631 (SSPC)
Fax No.:	91-836- 2486678
Central Warehouse: Nagpur:	M/S. Swetal Logistics, Tata Steel Yard, 16 Km Stone, Nh-6, Bhandara Road, Mahalgaon, District Nagpur – 441202, Maharashtra, India
Tel. No.:	91-7109-278501
Fax No.:	91-7109-2563141
Manufacturing Facilities
Jamshedpur Plant:	Tata Hitachi General Office, C/O. Tata Motors Premises, Block 1, P O: Telco Gm's Post Office, Jamshedpur – 831010, Jharkhand, India
Tel. No.:	91-657 - 6691313
Fax No.:	91-657 - 2268882
Dharwad Plant:	Block No. 2, Kiadb, Belur Industrial Estate, Garag Road, Mummigatti, Dharwad – 580007, Karnataka, India
Kharagpur Plant:	Village-Rupnarayanpur, Post Office - Jakpur, Kharagpur, District - Paschim Medinipur – 721301, West Bengal, India
Tel. No.:	91-3222-218340 / 646020
Branch Offices :	Located At: North: New Delhi Jammu Lucknow Mandi (HP) Jaipur Udaipur Chandigarh South 1 Hubli Bangalore Cochin Madurai Salem South 2 5-3-338/3/A, Above J&K Bank, Rashtrapathi Road, Opposite Mahindra Automotive Showroom, Secunderabad – 500003, Telangana, India Vizag Nellore Hubli Chennai Madurai Vijayawada West Ahmedabad Rajkot Surat Mumbai Kolhapur Pune Aurangabad Goa Central Bhopal Nagpur Indore Raipur Jabalpur East Kolkata Durgapur Jamshedpur Patna Bhubaneshwar Guwahati

DIRECTORS

As on 31.03.2017

Name :

Mr. Prakash Manjanath Telang

Designation :

Nominee Director

Address :

Paradise Towers, D 211 / 212 Baner Road, Pune – 411045, Maharashtra, India

Date of Birth/Age :

21.06.1947

Qualification:

B.Tech MBA

Date of Appointment :

30.06.2006

DIN No.:

00012562

Other Directorship:

CIN/FCRN	Company Name	Begin Date	End Date
L29130MH1961PLC011980	SKF INDIA LIMITED	30/04/2013	-
U74990TG2008PLC077969	TATA SIKORSKY AEROSPACE LIMITED	20/09/2011	-
L72300PN1990PLC056696	PERSISTENT SYSTEMS LIMITED	18/07/2011	-
U29192MH1984PLC034861	TEMA INDIA LIMITED	06/05/2014	-
U85190PN2009PTC134052	LOKMANYA HOSPITALS PRIVATE LIMITED	18/03/2014	-
L29112PN1962PLC012276	CUMMINS INDIA LIMITED	01/08/2013	-
U29268TG2010PLC077940	TATA LOCKHEED MARTIN AEROSTRUCTURES LIMITED	20/09/2011	-
L27109KA1964PLC001546	KENNAMETAL INDIA LIMITED	09/11/2015	-
U72900TG2006PLC077939	TATA ADVANCED SYSTEMS LIMITED	16/09/2009	-
U74120TG2015PLC101585	TATA BOEING AEROSPACE LIMITED	06/11/2015	-

Name :

Mr. Shyam Mani

Designation :

Nominee Director

Address :

Tower V, 1201, ' Celesta', Planet Godrej, 30, Keshav Rao Khade Marg, Mahalaxmi, Mumbai – 400011, Maharashtra, India

Date of Birth/ Age:

01.09.1953

Qualification:

Professional

Date of Appointment :

12.06.2014

DIN No.:

00273598

Other Directorship:

CIN/FCRN	Company Name	Begin Date	End Date
U85110KA1998PTC024588	TATA HITACHI CONSTRUCTION MACHINERY COMPANY PRIVATE LIMITED	12/06/2014	-
U45200MH1989PLC050444	TATA MOTORS FINANCE LIMITED	04/08/2016	-
U65910MH1992PLC187184	TATA MOTORS FINANCE SOLUTIONS LIMITED	22/01/2015	-
U65923MH2006PLC162503	TMF HOLDINGS LIMITED	01/02/2012	-
U91990MH2004NPL146931	FINANCE INDUSTRY DEVELOPMENT COUNCIL	22/07/2004	-
U50300MH1997PLC149349	TATA MOTORS INSURANCE BROKING AND ADVISORY SERVICES LIMITED	31/07/2014	-

Name :

Mr. Sandeep Singh

Designation :

Managing Director

Address :

No 3 B, Orchard Green 139/34, Intermediate Ring Road, Amarjyoti Layout Domlur, Bangalore – 560071, Karnataka, India

Date of Birth/Age :

21.01.1961

Qualification:

BE

Date of Appointment :

01.08.2015

PAN No.:

AHEPS3774N

DIN No.:

01234858

Name :

Mr. Hideki Mizumachi

Designation :

Additional Director

Address :

404, 4-21, 1-Chome, Fujisaki Tsuchiura-Shi, Ibaraki-Ken Ibaraki 3000813 Japan

Date of Birth/ Age:

28.06.1963

Date of Appointment :

11.04.2017

DIN No.:

05305182

Name :

Mr. Prasann Kumar Chobe

Designation :

Nominee Director

Address :

C 603 Avaneesh Apartments, Near Pinnac Memories Kothrud, Pune – 411038, Maharashtra, India

Date of Appointment :

28.09.2016

DIN No.:

06375666

Other Directorship:

CIN/FCRN	Company Name	Begin Date	End Date
U34100MH2000PLC124874	TML DRIVELINES LIMITED	27/06/2013	-

Name :

Mr. Shin Nakajima

Designation :

Casual Vacancy Director

Address :

G 1, Brigade Lavelle 11/12, 7th Cross Lavelle Road, Bangalore – 560001, Karnataka, India

Date of Birth/ Age:

28.08.1957

Qualification:

Professional

Date of Appointment :

18.08.2014

DIN No.:

06936313

PAN No.:

ARXPN2580J

Other Directorship:

CIN/FCRN	Company Name	Begin Date	End Date
U13203TZ2015FTC028156	BRADKEN INDIA PRIVATE LIMITED	23/10/2017	-

Name :

Mr. Yasushi Ochiai

Designation :

Nominee Director

Address :

6-20-14-404, Matsubara, Setagaya-Ku, Tokyo 1560043 Japan

Date of Appointment :

28.09.2016

DIN No.:

07540830

Name :

Mr. Toru Takatani

Designation :

Alternate Director

Address :

Room No. 703, Hotel Ramada, Bistupur East, Singhbhum, Jamshedpur – 831001, Jharkhand, India

Date of Appointment :

06.06.2017

DIN No.:

07597770

Name :

Mr. Kazunori Nakamura

Designation :

Nominee Director

Address :

3-5-22, Kandatsuchuo, Tsuchiura-Shi Ibaraki 3000011 Japan

Date of Birth/ Age:

19.02.1963

Date of Appointment :

06.06.2017

DIN No.:

07842272

Name :

Mr. Hidefumi Sameshima

Designation :

Alternate Director

Address :

1-24-3-1403, Hanakoganeiminamicho, Kodaira-Shi, Tokyo 1870003 Japan

Date of Appointment :

06.06.2017

DIN No.:

07842293

Name :

Mr. Shunsuke Tani

Designation :

Alternate Director

Address :

846-5, Kurakake, Tsukuba-Shi, Ibaraki 3050024 Japan

Date of Appointment :

06.06.2017

DIN No.:

07842296

KEY EXECUTIVES

Name :	Mr. Venkatakrishnan Natarajan
Designation :	Chief Financial Officer
Address :	H1 306, Phoenix Towers, Brigade Gateway 26/1, Dr. Rajkumar Road, Malleswaram (West), Bangalore – 560055, Karnataka, India
Date of Appointment :	06.05.2014
PAN No.:	AABPV5109J
Name :	Mr. Azhagesan Ayyamperumal
Designation :	Company Secretary
Address :	Flat No. 308 SMR Castle, 29, Banaswadi Main Road, Bangalore - 560043, Karnataka, India
Date of Birth:	27.09.1963
Date of Appointment :	09.01.2001
PAN No.:	AACPA0275H

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2017

Names of Shareholders	No. of Shares
Tata Motors Limited, India	45428566
Tata Motors Limited, India jointly with Hoshang K. Sethna	1
Hitachi Construction Machinery Co. Limited, India	68589714
Sheba Properties Limited	285714
Tata Motors Limited, India jointly with ranveer Sinha	1
Tata Motors Limited, India jointly with G. Mani	1
Tata Motors Limited, India jointly with N. Venkatakrishnan	1
Tata Motors Limited, India jointly with C. Ramakrishnan	1
IVRCL Limited, India	4800
Tata Motors Limited, India jointly with M. S. Sheshadri	1
Total	114308800

Equity Share Break up (Percentage of Total Equity)

As on 19.07.20172017

Category	Percentage
Promoter - Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

The Company is engaged in the manufacturing, sale and servicing of construction machineries/ equipments including excavators. (Registered activity)

Products :

NIC Code No.	Product Description
2824	Manufacture of machinery for mining, quarrying and construction
3312	Repair of machinery

Brand Names :

Not Divulged

Agencies Held :

Not Divulged

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Not Divulged

PRODUCTION STATUS NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Not Divulged
Name of the Person :	--
Contact No.:	--
Since How Long Known :	--
Maximum Limit Dealt :	--
Experience :	--
Remark:	--

Customers :

Reference :	Not Divulged
Name of the Person :	--
Contact No.:	--
Since How Long Known :	--
Maximum Limit Dealt :	--
Experience :	--
Remark:	--

No. of Employees :

Information declined by the management

Bankers :

Bank Name	Not Divulged
Branch	--
Person Name (With Designation)	--
Contact Number	--
Name of Account Holder	--
Account Number	--
Account Since (Date/Year of Account Opening)	--
Average Balance Maintained (If Possible)	--
Credit Facilities Enjoyed (If any)	--
Account Operation	--
Remarks (If any)	--

Facilities :

Secured Loan	31.03.2017 (INR in Million)	31.03.2016 (INR in Million)
Long-term Borrowings
Term loans from banks	0.000	2510.200
Short-term borrowings
Rupee term loans from others	31.600	366.600
Foreign currency term loans from banks	25.900	299.4
Total	57.500	3176.200

Auditors :
Name :	S.R. Batliboi and Associates LLP Chartered Accountants
Address :	U B City, Canberra Block, 12th And 13th Floor, Vittal Mallya Road, Bangalore – 560001, Karnataka, India
Tel No.:	91-80-67275000
Fax No.:	91-80-22106000
PAN N Income-tax PAN of auditor or auditor's firm :	ACHFS9118A
Memberships :	Not Available
Collaborators :	Not Available
Holding Company:	Hitachi Construction Machinery Company Limited, Japan
Ultimate Holding Company:	Hitachi Limited
Subsidiary company:	Serviplem S. A., Spain Comoplesa Lebrero S. A., Spain North Baryval Special Vehicle ('NBSV') - Subsidiary of Serviplem
Fellow Subsidiaries – Hitachi :	Tal Manufacturing Solutions Limited, India U29100PN2000PLC130290 Hitachi Construction Machinery Asia and Pacific Pte. Limited, Singapore Hitachi Construction Machinery (China) Co. Limited, China Hitachi Construction Machinery Trading Co. Limited, Japan Hitachi Construction Machinery Middle East Corp. Fze, United Arab Emirates Hitachi Kenki Logistics Technology Company Limited, Japan Hitachi Construction Truck Manufacturing Limited Hitachi Sumilomo Heavy Industries Construction Crane (Shanghai) Co. Limited, Japan Hitachi Construction Machinery (Europe) N.V. Hitachi Construction Machinery Australia Pty Limited Hitachi Construction Machinery Africa Pty. Limited Hitachi Construction Machinery Tierra Co. Limited Hitachi Home and Life Solutions (India) Limited Hitachi Plant Technologies Private Limited PT Hitachi Construction Machinery Indonesia
Fellow Subsidiaries – TML :	Tata Technologies Limited, India U72200PN1994PLC013313 Tata Motors Finance Solutions Limited, India U65910MH1992PLC187184 TAL Manufacturing Solutions Limited Concorde Motors India Limited Sheba Properties Limited
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives:	Tata Motors Limited, India L28920MH1945PLC004520

CAPITAL STRUCTURE

As on 31.03.2017

Authorised Capital :

No. of Shares	Type	Value	Amount
114308800	Equity Shares	INR 10/- each	INR 1143.088 Million
40008320	Preference Shares	INR 100/- each	INR 4000.832 Million
	Total		INR 5143.920 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
114308800	Equity Shares	INR 10/- each	INR 1143.088 Million

FINANCIAL DATA

[all figures are in INR Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2017	31.03.2016	31.03.2015
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	1143.100	1000.200	5000.800
(b) Reserves & Surplus	1923.400	(4384.300)	(344.700)
(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)	3066.500	(3384.100)	4656.100
(3) Non-Current Liabilities
(a) long-term borrowings	3535.900	9455.500	4879.700
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	372.700	385.000	154.300
Total Non-current Liabilities (3)	3908.600	9840.500	5034.000
(4) Current Liabilities
(a) Short term borrowings	1111.100	2457.700	1682.100
(b) Trade payables	5910.100	4101.900	6000.600
(c) Other current liabilities	3571.700	3721.200	4226.300
(d) Short-term provisions	1050.000	709.700	479.400
Total Current Liabilities (4)	11642.900	10990.500	12388.400
TOTAL	18618.000	17446.900	22078.500
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	8651.700	9189.200	9205.700
(ii) Intangible Assets	168.500	154.100	651.900
(iii) Capital work-in-progress	400.900	135.900	189.200
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	404.500
(c) Deferred tax assets (net)	508.500	0.000	0.000
(d) Long-term Loan and Advances	26.000	31.100	2287.200
(e) Other Non-current assets	1133.900	1344.600	147.600
Total Non-Current Assets	10889.500	10854.900	12886.100
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	5172.000	4245.600	5219.500
(c) Trade receivables	1491.200	1168.800	2371.500
(d) Cash and cash equivalents	12.200	11.700	254.000
(e) Short-term loans and advances	44.900	45.000	1347.300
(f) Other current assets	1008.200	1120.900	0.100
Total Current Assets	7728.500	6592.000	9192.400
TOTAL	18618.000	17446.900	22078.500

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2017	31.03.2016	31.03.2015
	SALES
	Income	34179.600	24656.100	18438.600
	Other Income	294.900	117.500	299.700
	TOTAL	34474.500	24773.600	18738.300
Less	EXPENSES
	Cost of Materials Consumed	19726.100	12671.100	10961.500
	Purchases of Stock-in-Trade	2103.200	1900.400	1484.300
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(266.500)	338.600	(191.900)
	Employees benefits expense	2073.300	1918.400	1908.800
	Exceptional items before tax	280.000	3202.700	752.800
	Other expenses	7621.800	6433.700	3415.100
	TOTAL	31537.900	26464.900	18330.600
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	2936.600	(1691.300)	407.700
Less	FINANCIAL EXPENSES	463.600	991.900	845.700
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	2473.000	(2683.200)	(438.000)
Less/ Add	DEPRECIATION/ AMORTISATION	792.600	929.600	753.800
	PROFIT/ (LOSS) BEFORE TAX	1680.400	(3612.800)	(1191.800)
Less	TAX	(23.400)	74.400	0.000
	PROFIT/ (LOSS) AFTER TAX	1703.800	(3687.200)	(1191.800)
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	1303.600	825.900	757.500
	Other receipts	17.600	2.500	28.400
	TOTAL EARNINGS	1321.200	828.400	785.900
	IMPORTS
	Raw Materials	NA	4639.300	4531.900
	Components and Stores parts	NA	1197.700	1247.200
	Capital Goods	NA	36.600	4.500
	TOTAL IMPORTS	NA	5873.600	5783.600
	Earnings / (Loss) Per Share (INR)	15.62	(36.38)	(13.27)

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2017	31.03.2016	31.03.2015
Current Maturities of Long term debt	0.000	188.500	3024.700
Net cash flows from (used in) operations	3565.100	(953.800)	(202.700)
Net cash flows from (used in) operating activities	3907.300	(20.800)	(220.500)

KEY RATIOS

EFFICIENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Average Collection Days (Sundry Debtors / Income * 365 Days)	15.92	17.30	46.94
Account Receivables Turnover (Income / Sundry Debtors)	22.92	21.10	7.78
Average Payment Days (Sundry Creditors / Purchases * 365 Days)	98.82	102.75	175.98
Inventory Turnover (Operating Income / Inventories)	0.57	(0.40)	0.08
Asset Turnover (Operating Income / Net Fixed Assets)	0.32	(0.18)	0.04

LEVERAGE RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Debt Ratio ((Borrowing + Current Liabilities) / Total Assets)	0.82	1.17	0.78
Debt Equity Ratio (Total Liability / Networth)	1.52	(3.52)	1.41
Current Liabilities to Networth (Current Liabilities / Net Worth)	3.80	(3.25)	2.66
Fixed Assets to Networth (Net Fixed Assets / Networth)	3.01	(2.80)	2.16
Interest Coverage Ratio (PBIT / Financial Charges)	6.33	(1.71)	0.48

PROFITABILITY RATIOS

PARTICULARS		31.03.2017	31.03.2016	31.03.2015
Net Profit Margin ((PAT / Sales) * 100)	%	4.98	(14.95)	(6.46)
Return on Total Assets ((PAT / Total Assets) * 100)	%	9.15	(21.13)	(5.40)
Return on Investment (ROI) ((PAT / Networth) * 100)	%	55.56	108.96	(25.60)

SOLVENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Current Ratio (Current Assets / Current Liabilities)	0.66	0.60	0.74
Quick Ratio ((Current Assets – Inventories) / Current Liabilities)	0.22	0.21	0.32
G-Score Ratio Financial (Networth / Total Assets)	0.16	(0.19)	0.21
G-Score Ratio Debt (Debts / Equity Capital)	4.07	11.91	1.31
G-Score Ratio Liquidity (Total Current Assets / Total Current Liabilities)	0.66	0.60	0.74

Total Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term debts

FINANCIAL ANALYSIS

[all figures are INR Million]

DEBT EQUITY RATIO

Particular	31.03.2015	31.03.2016	31.03.2017
	INR In Million	INR In Million	INR In Million
Share Capital	5000.800	1000.200	1143.100
Reserves & Surplus	(344.700	(4384.300	1923.400
Net worth	4656.100	(3384.100	3066.500
Long Term borrowings	4879.700	9455.500	3535.900
Short Term borrowings	1682.100	2457.700	1111.100
Current Maturities of Long term debt	3024.700	188.500	0.000
Total borrowings	9586.500	12101.700	4647.000
Debt/Equity ratio	2.059	(3.576)	1.515

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2015	31.03.2016	31.03.2017
	INR In Million	INR In Million	INR In Million
Sales	18438.600	24656.100	34179.600
		33.720	38.625

NET PROFIT MARGIN

Net Profit Margin	31.03.2015	31.03.2016	31.03.2017
	INR In Million	INR In Million	INR In Million
Sales	18438.600	24656.100	34179.600
Profit / (Loss)	(1191.800)	(3687.200)	1703.800
	(6.46%)	(14.95%)	4.98%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	--
6	Contact numbers	Yes
7	Name of the person contacted	Yes
8	Designation of contact person	Yes
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	Yes
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	No
16	No. of employees	No
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	Yes
32	Litigations that the firm/promoter involved in	--
33	Market information	--
34	Payments terms	No
35	Negative Reporting by Auditors in the Annual Report	No

CORPORATE INFORMATION

The company is a joint-venture between Tata Motors Limited (‘TML’) and Hitachi Construction Machinery Company Limited, Japan (‘HCM’). The Company is a private company domiciled in India and was incorporated on December 30, 1998 under the provisions of the Companies Act applicable in India. The registered office of the Company is located at Jubilee Building, 45 Museum Road, Bangalore - 560025, Karnataka.

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

The financial statements were authorized for issue in accordance with a resolution of the board of directors of the Company on April 11, 2017.

INDUSTRY OVERVIEW

Economy in the year 2016-17 has been positive with the country's GDP (gross domestic product) continuing in the range about 7%. The government accelerated the economic and regulatory reforms with the passage of important statutes relating to benami transactions, Aadhaar and GST (goods and services tax). Debottlenecking of stalled projects continued with the restart of some road and power projects. Like last year, the government front loaded planned expenditure resulting in a robust growth in the infrastructure activities. A normal monsoon after 2 successive years of deficient rainfall led to higher agriculture output and increased rural incomes. Tax revenue exceeded the target, aided by robust growth in indirect tax collection. A proactive approach to identify tax evasion and the introduction of Income Declaration Scheme raised the collection of direct taxes as well. The year also saw the demonetization of high value notes to control black money, and though it led to some disruption for a short time, encouraged faster transition towards use of digital payments. All this led to the buoyant growth of government investment and GDP, resulting in increased activity in manufacturing and private consumption. Bank credit still remained depressed as the issue of resolving NPAs continued, and the banks were cautious in lending to industry.

The government is expected to achieve the tight fiscal deficit target of 3.5% of GDP by focusing on reduction of subsidies, phased increase in subsidized LPG and kerosene prices and increasing payment of food subsidies using direct transfers. With inflation well within target levels, Reserve Bank of India (RBI) was able to reduce repo rate to 6.25%, leading to marginal reduction in lending rates. 40 more cities were announced under the Smart cities initiative. With the focus on increasing higher public spend, record award of works were announced under roads and national highways, while construction spend increased under railways. Work under the engineering, procurement and construction (EPC) contracts continued to be the main driver of infrastructure investment, as Build-operate-transfer (BOT) projects still lagged behind, due to high interest rates and stressed cash flows of construction companies. Contracts awarded under the Hybrid Annuity Model (HAM) in road projects have increased considerably drawing new players. Mining output grew albeit slower than in 2015-16, aided by increased production, opening of new coal mines, and the restart of iron ore mining in Goa. All these factors jointly contributed to the sizeable increase in demand in the industry, resulting in growth in sales.

OPERATIONS AND EXPORTS

During the year 2016-17, the Company streamlined its operations, focusing on improving its level production and adherence to production schedule. It worked with catch words like ‘right-machine-at-the-right-time’ and ‘fix-it-right at-first-time’, and ensured greater availability of its products, especially to its key customers. Forging its efforts towards planned management of its dealers and suppliers, the Company was able to ramp up its volumes and increase its capacity. During the year 2016-17, the Company exported 323 machines to territories like the Middle East, Eastern and Western African countries and Nepal. Most of this volume was of 20T GI series of Excavators, and was achieved through HMEC, a subsidiary of HCM in Dubai. Demand in Nepal has seen steady growth in the market for Excavators and Excavator Loaders, registering high volumes of machines in the last few years. This helped the Company increase its exports to Nepal and plan more volumes in the coming years from the neighboring countries.

OUTLOOK

The goods and services tax (GST) slated to be introduced in the current financial year 2017-18 is likely to give a fillip to the economy and is expected to boost the GDP significantly, with pass-through of and savings in taxes, fast end-to-end movement of goods and transparency. As per the last Union budget, the government has kept the focus on increasing public spend on infrastructure with increased budgetary allocation to all key infrastructure drivers – roads, railways, power and water resources. Award of contracts under EPC in the roads sector is expected to continue, and it is expected to increase under HAM, bringing in funding from the private sector in roads. The government is expected to continue roll out of reforms in a phased manner and improve ‘ease of doing businesses to attract more investment and improve the investment climate within the country.

The current financial year 2017-18 is witnessing development of industrial corridors, urban infrastructure, express highways, smart cities and impetus on affordable housing. The forecast is to have another year of normal monsoon in the country, supporting continuous growth in agricultural activities and farm output. This should help the industry with further demand, especially for Excavators and Wheeled Products. The Mining sector is also likely to see growth in the backdrop of regulatory clearances, as the government is planning to allow commercial mining of coal, and auctions are expected later this year. Sectors like irrigation, rural development and ports infrastructure are also looking up. Given these developments and real action on the ground with pipeline of projects being executed, the demand for construction machinery may further grow in 2017-18. The above expectations will however depend on the Government’s actions and executing reforms translating to increased real demand in the economy particularly in key infrastructure sectors. Also, external factors like commodity prices, increasing global protectionism, uncertainties in developed economies, interest rates in US, and growth rates in China may also affect the Company’s operations and its growth projections.

UNSECURED LOAN

Unsecured Loan	31.03.2017 (INR in Million)	31.03.2016 (INR in Million)
Long-term Borrowings
Term loans from banks	3502.000	2911.800
Loans and advances from related parties	0.000	4000.600
Long-term maturities of finance lease obligations	33.900	32.900
Short-term borrowings
Foreign currency term loans from banks	1053.600	1791.700
Total	4589.500	8737.000

INDEX OF CHARGES:

SNo	SRN	Charge Id	Charge Holder Name	Date of Creation	Date of Modification	Date of Satisfaction	Amount	Address
1	G36497196	10206277	IDBI Bank Limited	10/12/2009	31/01/2017	-	600000000.0	IDBI TOWER, WTC COMPLEX,CUFFE PARADE,MUMBAIMH400005IN
2	B95812848	10150578	Bank of Tokyo-Mitsubishi UJF	24/12/2008	20/01/2014	-	2500000000.0	Hoechst House,15th floor, Nariman Point,MumbaiMH400021IN
3	B81625451	80048612	Standard Chartered Bank	17/10/2003	25/07/2013	-	1000000000.0	No. 112, Serenity, Koramangala Industrial Area,Koramangala, 5th Block,BangaloreKA560095IN
4	A56761174	80050721	HDFC BANK LIMITED	15/09/2000	23/01/2009	-	1500000000.0	HDFC BANK HOUSESENAPATI BAPAT MARGLOWER PAREL WMUMBAIMH400013IN
5	G46458451	10447864	Citi Bank N.A.	18/07/2013	-	19/06/2017	550000000.0	UB City, Canberra Block#24, Vittal Mallya RoadBangaloreKA560001IN
6	G46457966	10374413	Standard Chartered Bank	17/08/2012	-	19/06/2017	485000000.0	BANGALORE BR, 3RD FLOOR, VAISHNAVI SERENITY, 112KORAMANGALA INDUSTRIAL AREA, V BLOCK, KORMANGALA,BANGALOREKA560095IN
7	G46458279	10400095	Citi Bank N.A.	14/12/2012	-	19/06/2017	560000000.0	UB City, Canberra Block#24, Vittal Mallya RoadBangaloreKA560001IN
8	G45912797	10411077	INDUSIND BANK LTD.	08/02/2013	28/09/2015	12/06/2017	3350000000.0	2401 GEN THIMMAYYA ROADCONTONMENTPUNEMH411001IN
9	G12373098	10465024	Citi Bank N.A.	22/11/2013	-	19/09/2016	630000000.0	UB City, Canberra Block#24, Vittal Mallya RoadBangaloreKA560001IN
10	G02866267	10494848	Citi Bank N.A.	24/03/2014	-	05/04/2016	560000000.0	UB CITY, CANBERRA BLOCK#24, VITTAL MALLAYA ROADBANGALOREKA560001IN

CONTINGENT LIABILITIES:

(INR in million)

PARTICULARS	31.03.2017	31.03.2016
Claims against the Company not acknowledged as debts
Sales tax	263.000	535.700
Customs, Excise and Service Tax	33.300	32.100
Others	9.300	11.300
Bills of exchange discounted with banks	7.500	11.300
Guarantees given for subsidiary’s borrowings from banks/ financial institutions	0.000	22.700
Total	313.100	613.100

FIXED ASSETS

· Land

· Building

· Plant and equipment

· Furniture and Fixture

· Vehicles

· Office equipment

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 records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: 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	INR
US Dollar	1	INR 66.78
UK Pound	1	INR 92.89
Euro	1	INR 80.74

INFORMATION DETAILS

Information Gathered by :	PON
Analysis Done by :	PRS
Report Prepared by :	KJL

SCORE FACTORS

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

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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.