MIRA
INFORM REPORT
|
Report Date : |
07.02.2007 |
IDENTIFICATION
DETAILS
|
Name : |
MAHINDRA
ASHTECH LIMITED |
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Registered Office : |
Gateway Building, Apollo Bunder, Mumbai -
400 001, Maharashtra, India |
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Country : |
India |
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Financials (as on) : |
31.03.2005 |
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Date of Incorporation : |
09.10.1995 |
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Com. Reg. No.: |
11-093447 |
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CIN No.: [Company
Identification No.] |
U74999MH1995PLC093447 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMM19066F |
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Legal Form : |
Closely
Held Public Limited Liability Company. The
company is a Sick Unit. |
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Line of Business : |
Subject
is in the business of Turnkey contract execution for Ash Handling System and
Travelling Water Screens. |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
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Status : |
Moderate |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject
is a subsidiary of highly successful Mahindra and Mahindra Limited. However the
company is a Sick Industrial Unit having been networth eroded. Financial
position of the company can be regarded as poor. Payments are usually correct
and as per commitments. It
would be prudent to do business with the guarantee of the parent company,
Mahindra and Mahindra Limited for any normal business. |
LOCATIONS
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Registered Office : |
Gateway Building, Apollo Bunder, Mumbai - 400 001, Maharashtra, India |
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Head
Office : |
Mahindra AshTech Limited Sagar Complex, 'A' Wing, 3rd floor, Kasarwadi, Mumbai - Pune Road, Pune - 411 034. |
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Tel.
No.: |
91-20-5612 5750 |
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Fax
No.: |
91-20-5612 5751 / 5612 5748 |
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Website: |
http://www.mahindraashtech.com |
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Offices
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Offices
of the company WORKS: 148, Mumbai - Pune Road, Pimpri, Pune- 411 018.
REGIONAL /BRANCH OFFICES:
1) NEW DELHI.
2nd floor, Mahindra Towers, 2A,Bhikaji Kama Place, New Delhi-110 066. Tel No.91-51220300 / 51220401. E-mail: matldel@bol.net.in, msldelhi@vsnl.com
2) KOLKATA.
Hall & Anderson Building, 1st floor, 31, Jawhar Lal Nehru Road, Kolkata700 016. Tel No. 91-33-22168493. Fax No. 91-33-22168472 E-mail: mmmsl@cal2.vsnl.net.in |
DIRECTORS
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Name : |
Mr
Raghunath murti |
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Designation : |
Director |
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Name : |
Mr S
Venkatraman |
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Designation : |
Director |
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Name : |
Mr
David Hataria |
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Designation : |
Executive
Director |
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Name : |
Mr A K
Nanda |
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Designation : |
Chairman |
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Name : |
Mr
Amar Banerji |
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Designation : |
Managing
Director |
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Name : |
Mr A M
Choksey |
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Designation : |
Director |
KEY EXECUTIVES
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Name
: |
Mr R S
Kotian |
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Designation
: |
Secretary |
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Name : |
Mr S
Lakshminarayanan |
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Designation : |
Head –
Finance and Accounts |
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Name : |
Mr M K
Champawat |
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Designation : |
Head –
Marketing |
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Name : |
Mr A K
Banerjee |
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Designation : |
Head –
Design Engineering |
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Name : |
Mr.
V.M. Bonde |
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Designation : |
Head -
Construction Management |
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Name : |
Mr. V.
M. Kadakia |
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Designation : |
Head -
Supply Chain Management |
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Name : |
Mr U K
Bansal |
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Designation : |
Key
Executive (New Delhi Office) |
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Name : |
Mr A K
Singh |
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Designation : |
Key
Executive (Koklata Office) |
BUSINESS DETAILS
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Line of Business : |
Subject
is in the business of Turnkey contract execution for Ash Handling System and
Travelling Water Screens. |
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Products : |
Generic
Names of the Principal Products/Services of the Company
Types of Systems
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GENERAL
INFORMATION
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No. of Employees : |
About
120 |
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Auditors : |
A F
Ferguson and Company Chartered
Accountants |
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Parent Company: |
Mahindra
and Mahindra - a leading automobile industry |
CAPITAL STRUCTURE
Authorised
Capital :
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No.
of Shares |
Type |
Value |
Amount |
|
1,55,00,000 |
Equity
Shares |
Rs 10/- each |
Rs 155.000 Millions |
|
14,50,000 |
Preference
Shares |
Rs 100/- each |
Rs 145.000 Millions |
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Total |
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Rs 300.000
Millions |
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Issued,
Subscribed & Paid-up Capital :
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No.
of Shares |
Type |
Value |
Amount |
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1,55,00,000 |
Equity
Shares |
Rs 10/- each |
Rs 155.000 Millions |
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14,50,000 |
8.50%
Cumulative Redeemable Preference Shares |
Rs 100/- each |
Rs 145.000 Millions |
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Total |
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Rs 300.000
Millions |
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FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
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SOURCES OF FUNDS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
300.000 |
200.000 |
100.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
38.856 |
38.856 |
(15.700) |
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4] (Accumulated Losses) |
(273.308) |
(193.855) |
0.000 |
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NETWORTH |
65.548 |
45.001 |
84.300 |
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LOAN FUNDS |
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1] Secured Loans |
|
54.126 |
50.800 |
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2] Unsecured Loans |
28.300 |
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TOTAL BORROWING |
68.134 |
54.126 |
79.100 |
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DEFERRED TAX LIABILITIES |
0.000 |
4.328 |
0.000 |
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TOTAL |
133.682 |
103.455 |
163.400 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
25.167 |
27.158 |
31.400 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.020 |
0.020 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
12.482
|
33.532 |
36.400 |
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Sundry Debtors |
202.307
|
172.556 |
261.900 |
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Cash & Bank Balances |
10.800
|
2.420 |
4.700 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
57.274
|
61.726 |
63.000 |
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Total Current Assets |
282.863
|
270.234 |
366.000 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
181.298
|
178.246 |
228.400 |
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Provisions |
11.630
|
15.711 |
5.600 |
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Total Current Liabilities |
192.928
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193.957 |
234.000 |
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Net Current Assets |
89.935
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76.277 |
132.000 |
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MISCELLANEOUS EXPENSES |
18.560 |
0.000 |
0.000 |
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TOTAL |
133.682 |
103.455 |
163.400 |
PROFIT
& LOSS ACCOUNT
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PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
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Sales Turnover [including other
income] |
273.439 |
222.656 |
357.800 |
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Profit/(Loss)
Before Tax |
(83.781) |
(139.510) |
(63.900) |
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Provision
for Taxation |
(4.328) |
(0.253) |
0.700 |
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Profit/(Loss)
After Tax |
(79.453) |
(139.257) |
(64.600) |
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Export
Value |
4.353 |
25.441 |
NA |
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Import
Value |
34.565 |
32.389 |
NA |
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Total
Expenditure |
357.220 |
362.166 |
NA |
KEY
RATIOS
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PARTICULARS |
|
31.03.2005 |
31.03.2004 |
31.03.2003 |
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PAT / Total Income |
|
(29.06)
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(62.54) |
(17.86) |
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Net
Profit Margin(PBT/Sales) |
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(30.64)
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(62.65) |
(17.86) |
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Return
on Total Assets(PBT/Total Assets} |
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(27.20) |
(46.91) |
(16.08) |
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Return
on Investment (ROI)(PBT/Networth) |
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(1.27) |
(3.10) |
(0.75) |
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Debt Equity
Ratio(Total Liability/Networth) |
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3.98 |
5.51 |
3.71 |
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Current
Ratio(Current Asset/Current Liability) |
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1.46 |
1.39 |
1.56 |
LOCAL AGENCY
FURTHER INFORMATION
History
Mahindra AshTech Ltd. (MATL)
is a wholly owned subsidiary of Mahindra & Mahindra Ltd.and is in the
business of Turnkey contract execution for Ash Handling System and Travelling
Water Screens. MATL have a well equipped manufacturing facility in the heart of
Mumbai city with Regional / Branch offices at New Delhi & Calcutta.
MATL have a track
record of more than 100 major contracts since the time the company entered in
this business as Turner Hoare Company Ltd. which subsequently was renamed as
Mahindra Spicer Ltd. by virtue of technical collaboration with Dana Spicer
Corporation for manufacturing various automotive components. “Mahindra
Spicer Ltd” merged, in 1984, with parent Company and became a division known as
“MSL Division of Mahindra & Mahindra Ltd”. In 1999 the business of MSL
Division was transferred, as a going concern, to Mahindra AshTech Ltd.
MATL has successfully
executed several contracts which were secured through stiff International
Competitive Bidding. Equipment for these projects “have been” / "are
being” manufactured under strict quality control to meet the requirements of
Quality Assurance Plan duly approved by leading Consulting Engineers and
Utility Companies, including State Electricity Boards, NTPC Ltd., BHEL etc.
MATL have a dedicated
team of Engineers with experience ranging from 10 - 25 years in their field
Review of Operations
During the year
under review the Company has shifted its operations from Mumbai to Pune and
successfully implemented a voluntary retirement scheme for right sizing the
workforce as a part of its overall revival plan.
The optimisation of
workforce coupled with infusion of additional capital of Rs. 100 Millions
during the year under review, has enabled the Company to arrest the continued
downtrend in the sales turnover since the last three years and to post a small
but definite growth of about 22.77% from Rs. 222.7 Millions in F-2004 to Rs.
273.4 Millions in F-2005. Improvement in sales turnover and product-mix
together resulted in reducing the loss by 42.93% from Rs.139.3 Millions in F-04
to Rs.79.5 Millions in F-05.
The cost reduction
initiatives taken by the Company during the year and implementation of several
new Coal fired Power Generation Projects during 10* & 11th Plan as a result
of Government's emphasis on substantial addition to installed generation
capacity augur well for brighter prospects of the Company.
Potential Sick
Company
The Company became a
potential sick Company as the accumulated losses as at 31st March, 2004 stands
at Rs. 193.855 Millions vis-a-vis the peak net worth during immediately
preceding four financial years of Rs. 56.958 Millions pertaining to the
financial year 2000-2001, resulting in erosion of more than 50% of the said
peak net worth. As required by the Sick Industrial Companies (Special Provisions)
Act, 1985, the Company has filed the necessary application with the Board for
Industrial & Finance Reconstruction.
Finance
During the year
under review, the Company issued and allotted 1,00,00,000 Equity Shares of the
face value of Rs. 10 each aggregating Rs. 100 Millions to Mahindra &
Mahindra Limited (M&M). Consequent to this, the Company has ceased to be a
subsidiary of Mahindra Holdings & Finance Limited and became a direct
subsidiary of Mahindra & Mahindra.
Fixed Assets
- Buildings
- Plant and Machinery
- Furniture and Fixtures
- Vehicles
- Improvement to leased
premises
The
company is in trade terms with the following companies
- Aparna Enterprises
- The Allied Founders Private
Limited
- Chandimata Iron Industries
- Dinamic Engineers
- Indian Pneumatic and
Hydraulic Company
- Jenco Industrial
Corporation
- Menon Metaliks Private
Limited
- Neven Metaliks Private
Limited
- Switzer Instruments Limited
- Sri Mahamaaya Casters
Corporation
- Shah Industries and
Commercial Corporation
- Teleflo Instrument Company
Private Limited
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 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
|
Indian Rupees |
|
US
Dollar |
1 |
Rs.44.12 |
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UK
Pound |
1 |
Rs.87.01 |
|
Euro |
1 |
Rs.57.45 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
-- |
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OPERATING SCALE |
1~10 |
2 |
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FINANCIAL CONDITION |
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|
--BUSINESS SCALE |
1~10 |
2 |
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--PROFITABILIRY |
1~10 |
-- |
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--LIQUIDITY |
1~10 |
-- |
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--LEVERAGE |
1~10 |
2 |
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--RESERVES |
1~10 |
2 |
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--CREDIT LINES |
1~10 |
2 |
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--MARGINS |
-5~5 |
-- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
YES |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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14 |
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 |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
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 |
|
NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
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