MIRA INFORM REPORT

 

 

Report Date :

31.05.2007

 

IDENTIFICATION DETAILS

 

Name :

MAHINDRA RENAULT PRIVATE LIMITED

 

 

Registered Office :

Gateway Building, Apollo Bunder, Mumbai-400001, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2006

 

 

Date of Incorporation :

02.06.2005

 

 

Com. Reg. No.:

11-153702

 

 

CIN No.:

[Company Identification No.]

U34100MH2005PTC153702

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMM27339E

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturers and Exporters of Automotive Vehicles.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.

Small

 

Maximum Credit Limit :

USD 1590000

 

 

Status :

New Company

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a new company of Mahindra Group in joint venture with Renault, France. Company has been started to produce and sell transport vehicles in India under the brand MAHINDRA-RENAULT. Company has incurred initial losses and has some accumulated losses. Payments are however reported as slow but correct.

 

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

 

 

LOCATIONS

 

Registered Office :

Gateway Building, Apollo Bunder, Mumbai-400001, Maharashtra, India

Tel. No.:

91-22-28460612

Fax No.:

91-22-28858519

E-Mail :

sheth.yash@mahindra.com, saboo.anil@mahindrarenault.com

 

 

Head Office :

Vakil’s House, 1st Floor, 18, Sprott Road, Ballard Estate, Mumbai-400001, Maharashtra, India

 

 

DIRECTORS

 

Name :

Mr. Abeezar Faizullabhoy

Designation :

Director

Address :

41, Mereweather Road, Jaiji Mansion, Ground Floor, Mumbai-400039, Maharashtra

Date of Birth/Age :

20.11.1964

Date of Appointment :

02.06.2005

Date of Ceasing :

30.09.2005

 

 

Name :

Mr. Bahram N Vakil

Designation :

Director

Address :

60, Neptune Court, 1st Floor, Nepean Sea Road, Mumbai-400006, Maharashtra

Date of Birth/Age :

12.09.1958

Date of Appointment :

02.06.2005

Date of Ceasing :

02.12.2005

 

 

Name :

Mr. Sylvain Bilaine

Designation :

Director

Address :

101, Vaibhav, Janki Kutir, Juhu, Mumbai-400049, Maharashtra

Date of Birth/Age :

13.04.1954

Date of Appointment :

23.06.2005

 

 

Name :

Mr. Rajesh Jejurikar

Designation :

Managing Director

Address :

502, Silver Spring, Near Rizvi College, Shirley Rajen Road, Bandra (West), Mumbai-400050, Maharashtra

Date of Birth/Age :

24.06.1964

Date of Appointment :

05.08.2005

 

 

Name :

Dr. Pawan Kumar

Designation :

Director

Address :

Flat No.602, 9th JVPD, 10th Road, Vile Parle (West), Mumbai-400056, Maharashtra

Date of Birth/Age :

23.09.1954

Date of Appointment :

05.05.2005

 

 

Name :

Mr. Antoine Herteman

Designation :

Director

Address :

1, Rua Des Terres Fortes, 92210, Saint Cloud, France

Date of Birth/Age :

08.06.1956

Date of Appointment :

30.09.2005

 

 

Name :

Mr. Stephane Stoufflet

Designation :

Director

Address :

51, Rue Olivier De Serres, 75015, Paris

Date of Birth/Age :

03.10.1956

Date of Appointment :

30.09.2005

 

 

Name :

Mr. Rajan Wadhera

Designation :

Director

Address :

1203, Oberoi Gardens, C Wing, Thakur Village, Kandivali (West), Mumbai-400101, Maharashtra

Date of Birth/Age :

10.07.1956

Qualification :

 

Experience :

 

Date of Appointment :

30.09.2005

 

 

Name :

Mr. U Y Phadke

Designation :

Director

Address :

Flat No.13, Neel Tarang, 208/210, Veer Savarkar Marg, Mahim, Mumbai-400016, Maharashtra

Date of Birth/Age :

19.11.1950

Date of Appointment :

02.12.2005

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

Names of Shareholders

No. of Shares

Mahindra and Mahindra Limited

26265000

Renault s.a.s.

25235000

Total

51500000

 

As on 31.03.2006

 

Names of Shareholders

 

Percentage of Holding

Foreign holdings

 

49.00

Bodies corporate

 

51.00

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturers and Exporters of Automotive Vehicles.

GENERAL INFORMATION

 

No. of Employees :

 

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

Mr. S R Tata

Chartered Accountants

Address :

Deloitte Haskins & Sells, Cuffe Parade, Mumbai-400005, Maharashtra, India

 

 

Holding Company :

Mahindra & Mahindra Limited

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

100000000

Equity Shares

Rs.10/- each

Rs.1000.000 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

51500000

Equity Shares

Rs.10/- each

Rs.515.000 millions

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

 

31.03.2006

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

 

 

515.000

2] Share Application Money

 

 

0.000

3] Reserves & Surplus

 

 

0.000

4] (Accumulated Losses)

 

 

(117.059)

NETWORTH

 

 

397.941

LOAN FUNDS

 

 

 

1] Secured Loans

 

 

0.000

2] Unsecured Loans

 

 

0.000

TOTAL BORROWING

 

 

0.000

DEFERRED TAX LIABILITIES

 

 

0.000

 

 

 

 

TOTAL

 

 

397.941

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

 

13.488

Capital work-in-progress

 

 

874.509

 

 

 

 

INVESTMENT

 

 

0.000

DEFERREX TAX ASSETS

 

 

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
 

 

0.099

 

Sundry Debtors
 

 

            1.113

 

Cash & Bank Balances
 

 

63.317

 

Other Current Assets
 

 

0.066

 

Loans & Advances
 

 

8.358

Total Current Assets
 

 

72.953

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
 

 

562.687

 

Provisions
 

 

0.322

Total Current Liabilities
 

 

563.009

Net Current Assets
 

 

(490.056)

 

 

 

 

MISCELLANEOUS EXPENSES

 

 

0.000

 

 

 

 

TOTAL

 

 

397.937

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

 

 

31.03.2006

Sales Turnover

 

 

1.083

Other Income

 

 

8.625

Total Income

 

 

9.709

 

 

 

 

Profit/(Loss) Before Tax

 

 

(112.662)

Provision for Taxation

 

 

0.000

Profit/(Loss) After Tax

 

 

(112.662)

 

 

 

 

Expenditures :

 

 

 

 

Purchases made for re-sale

 

 

0.511

 

Salaries, Wages, Bonus, etc.

 

 

57.369

 

Managerial Remuneration

 

 

1.440

 

Payment to Auditors

 

 

0.169

 

Insurance Expenses

 

 

0.033

 

Power & Fuel

 

 

0.495

 

Other Expenditure

 

 

62.353

Total Expenditure

 

 

122.371

 

KEY RATIOS

 

PARTICULARS

 

 

 

 

31.03.2006

PAT / Total Income

(%)
 

 

(1160.04)

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
 

 

(1160.04)

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
 

 

(130.33)

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
 

 

(0.28)

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
 

 

1.41

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
 

 

0.13

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Nil

 

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.40.73

UK Pound

1

Rs.80.43

Euro

1

Rs.54.74

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

2

PAID-UP CAPITAL

1~10

4

OPERATING SCALE

1~10

2

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

--

--LIQUIDITY

1~10

4

--LEVERAGE

1~10

4

--RESERVES

1~10

3

--CREDIT LINES

1~10

2

--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

TOTAL

 

26

 

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

 

 

 

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