MIRA
INFORM REPORT
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Report Date : |
07.08.2008 |
IDENTIFICATION
DETAILS
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Name : |
MANDO INDIA LIMITED |
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Formerly Known As : |
MANDO BRAKE SYSTEMS INDIA PRIVATE LIMITED |
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Registered Office : |
Fagun Mansion, 26 C-IN-C Road, Chennai- 600105, Tamilnadu |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
15.09.1997 |
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Com. Reg. No.: |
18-39028 |
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CIN No.: [Company
Identification No.] |
U35999TN1997PLC039028 |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
Manufacturer of Brake Systems, RR Calipher, FR Calpiher, Master
Booster etc. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 290000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a Indo- Korean Joint Venture having satisfactory track.
General financial position is good. Trade relations are fair. Business is
active. Payments are reported as usually correct and as per commitments. The company can be considered good for normal business dealings. |
LOCATIONS
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Registered Office : |
Fagun Mansion, 26 C-IN-C Road, Chennai- 600105, Tamilnadu, India |
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Tel. No.: |
91-44-28277740 |
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Fax No.: |
91-44-28279921 |
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E-Mail : |
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Website : |
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Factory : |
F-64, Sipcot Industrial Park, Irrungattlottai, Sriperumbuder Taluk,
Kanchipuram – 602105, Tamilnadu, India |
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Tel. No.: |
91-44-27156045/ 48 |
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Fax No.: |
91-44-27156044 |
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Mobile No.: |
91-9444971258 |
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Email : |
DIRECTORS
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Name : |
Mr. Deep C. Anand |
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Designation : |
Chairman and Managing Director |
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Address : |
Anand Farm, 25 3 KM Palm Gurgaon Road, Dundahera Gurgaon – 122001,
Haryana, India |
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Date of Birth/Age : |
26.08.1933 |
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Date of Appointment : |
08.10.1997 |
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Name : |
Mr. K. Mohan |
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Designation : |
Director |
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Address : |
9 Sadhana Enclave, New Delhi – 110017, India |
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Date of Birth/Age : |
17.03.1948 |
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Date of Appointment : |
24.03.2004 |
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Name : |
Mr. Deepak Chopra |
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Designation : |
Director |
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Address : |
Anfilco Colony, 26 3KM Palamgur Gaon Road, Dundahera Gurgaon – 122001,
Haryana, India |
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Date of Birth/Age : |
25.12.1954 |
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Date of Appointment : |
31.01.2000 |
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Name : |
Mr. C. M. Lee |
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Designation : |
Director |
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Address : |
B-2058, Safdurjung Enclave, New Delhi – 110019, India |
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Date of Birth/Age : |
03.12.1951 |
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Date of Appointment : |
23.08.1999 |
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Name : |
Mr. Ju Sin Kim |
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Designation : |
Director |
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Address : |
Sammaual Woobangapt, Kalsan Dong
Dongan Ku AnyanSI Kyunggi Do Korea |
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Date of Birth/Age : |
06.02.1956 |
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Date of Appointment : |
16.03.2005 |
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Name : |
Mr. Y. H. Ham |
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Designation : |
Director |
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Address : |
230-404, Midoapt,Oaechi 2 Dong Kangnam Seoul Korea |
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Date of Birth/Age : |
04.11.1965 |
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Date of Appointment : |
15.03.2005 |
KEY EXECUTIVES
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Name : |
Mr. Vivek Goel |
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Designation : |
Company Secretary |
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Date of Birth/Age : |
04.03.1963 |
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Date of Appointment : |
30.06.2001 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 29.07.2005)
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Names of Shareholders |
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No. of Shares |
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Ansysco Limited |
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7849995 |
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Mando Corporation |
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7850000 |
(As on 31.03.2007)
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Category |
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Percentage |
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Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
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67.00 |
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Bodies
corporate (Not Mentioned above) |
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33.00 |
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Total |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Brake Systems, RR Calipher, FR Calpiher, Master
Booster etc. |
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Products : |
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Products : |
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GENERAL
INFORMATION
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Bankers : |
Not Available |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Pricewater House Chartered Accountant |
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Address : |
PWC Center, 32 Khader Nawaz Khan Road, Nugambakkam – 600006,
Tamilnadu, India |
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Holding Company : |
Mando Corporation, South Korea |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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25000000 |
Equity Shares |
Rs.10/- each |
Rs.250.000 Millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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23787879 |
Equity Shares |
Rs.10/- each |
Rs.237.879 Millions |
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FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
237.879 |
157.000 |
157.000 |
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2] Share Application Money |
0.517 |
0.517 |
0.517 |
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3] Reserves & Surplus |
343.394 |
89.614 |
31.209 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
581.790 |
247.131 |
188.726 |
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LOAN FUNDS |
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1] Secured Loans |
281.024 |
118.886 |
33.333 |
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2] Unsecured Loans |
25.917 |
20.491 |
14.125 |
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TOTAL BORROWING |
306.941 |
139.377 |
47.458 |
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DEFERRED TAX LIABILITIES |
32.939 |
29.383 |
27.213 |
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TOTAL |
921.670 |
415.891 |
263.397 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
518.543 |
269.421 |
247.780 |
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Capital work-in-progress |
872.559 |
145.572 |
13.358 |
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INVESTMENT |
0.000 |
0.000 |
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 |
147.170
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128.839 |
62.333 |
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Sundry Debtors |
222.971
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176.750 |
135.639 |
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Cash & Bank Balances |
44.824
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1.421 |
12.716 |
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Other Current Assets |
0.026
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0.000 |
0.000 |
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Loans & Advances |
248.011
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63.423 |
37.327 |
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Total
Current Assets |
663.002
|
370.433 |
248.015 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
1121.008
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361.053 |
195.801 |
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Provisions |
11.498
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18.008 |
50.121 |
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Total
Current Liabilities |
1132.506
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379.061 |
245.922 |
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Net Current Assets |
(469.504)
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(8.628) |
2.093 |
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MISCELLANEOUS EXPENSES |
0.072 |
0.118 |
0.166 |
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Pre-Operative Expenditure Pending Allocation |
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9.408 |
0.000 |
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TOTAL |
921.670 |
415.891 |
263.397 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
1559.470 |
1234.627 |
995.136 |
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Other Income |
33.190 |
28.335 |
25.534 |
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Total Income |
1592.660 |
1262.962 |
1020.670 |
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Profit/(Loss) Before Tax |
26.126 |
132.287 |
116.777 |
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Provision for Taxation |
11.298 |
47.029 |
42.556 |
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Profit/(Loss) After Tax |
14.828 |
85.258 |
74.221 |
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Expenditures : |
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Raw Material Consumed |
1208.659 |
865.304 |
686.236 |
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Increase/(Decrease) in Finished Goods |
(17.661) |
(4.028) |
(0.638) |
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Salaries, Wages, Bonus, etc. |
77.447 |
43.726 |
28.499 |
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Managerial Remuneration |
8.151 |
0.923 |
0.000 |
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Payment to Auditors |
1.450 |
0.580 |
0.000 |
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Interest |
14.942 |
5.566 |
6.093 |
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Insurance Expenses |
2.241 |
1.484 |
1.899 |
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Power & Fuel |
19.377 |
14.769 |
9.304 |
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Depreciation & Amortization |
64.297 |
33.775 |
61.907 |
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Other Expenditure |
187.630 |
168.576 |
110.593 |
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Total Expenditure |
1566.534 |
1130.675 |
903.893 |
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KEY RATIOS
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PARTICULARS |
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31.03.2007 |
31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
0.93
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6.75 |
7.27 |
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Net Profit Margin (PBT/Sales) |
(%) |
1.68
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10.71 |
11.73 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
2.21
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20.67 |
23.55 |
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Return on Investment (ROI) (PBT/Networth) |
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0.04
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0.54 |
0.62 |
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Debt Equity Ratio (Total Liability/Networth) |
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2.47
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2.10 |
1.55 |
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Current Ratio (Current Asset/Current Liability) |
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0.59
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0.98 |
1.01 |
LOCAL AGENCY FURTHER
INFORMATION
Website Details:
Profile:
Subject located at Chennai, was set up in 1997 in collaboration with Mando Machinery Corporation, Korea. Manufacturing state-of-the-art brake systems, strictly to Mando specifications, the Company meets all Hydraulic Brake requirements of Hyundai Motor India.
In 2002, Mando India entered into a Technical License Agreement with
Continental Teves of Germany for brake systems to meet the requirement of
European and US-based car manufacturers like GM, Ford etc.
News:
Mando
India looks to double turnover this year
In talks with four OEMs to supply
braking systems, shock absorbers, struts
On the anvil
Mando India to set up R&D at
plant for new product development
Plans to develop complete module
for anti-lock braking system
T. Murrali
Chennai, June 10 The Chennai-based Mando India Limited, part
of the Rs.25000.000 Millions Anand Group headquartered in Delhi, expects to
double its turnover to Rs.3800.000 Millions this year. The company is in talks
with four OEMs (original equipment manufacturers) to supply braking systems,
shock absorbers and struts.
The Deputy Managing Director of Mando India, Mr. V.
Madhavan, told Business Line, “We
are in the advanced level of negotiations with four MNC passenger car
manufacturers in India and once the deal is finalised, we will set up satellite
assembly plants close to their facility.” The deals have been estimated to
fetch fresh orders for about five lakh vehicle sets of braking system, shock
absorbers and struts, he said.
The objective of setting up satellite assembly operations
was to minimise investment while maintaining ‘just in time’ supplies, he said.
Based on the model and the volumes, Mando India will expand capacity at its
present manufacturing facility in Irrungattukottai (near Hyundai Motor India
Limited facility), he said. Accordingly the investments will be decided, he
added.
It may be noted that Mando India, the 67:33 joint venture
between Mando Machinery Corporation and Anand Group, has recently completed a
Rs.1400.000 Millions- expansion at its plant, which made it to churn out eight
lakh vehicle sets of braking systems and six lakh vehicle sets of shock
absorbers and struts. The expansion was primarily to cater to HMIL, which
recently commissioned its second plant, taking the total capacity to six lakh
cars. Besides supplying to HMIL, it has also been catering to the requirements
of Ford India (Fusion and Fiesta) and Mahindra Renault (Logan). Towards this,
the company entered into a technical licence agreement with Continental Teves
of Germany.
Mando India, which received a five-star award from HMIL, is
developing low cost braking system for ultra low cost cars. “Higher technologies
are required for developing low cost braking systems and so engineers from
Korea and China have joined us in the project. We are also considering
developing complete module for anti-lock braking system,” he said. In order to
give a fillip Mando India is setting up R&D facility at its plant to pursue
new product development besides focussing on value engineering and testing.
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
|
Indian Rupees |
|
US Dollar |
1 |
Rs.42.00 |
|
UK Pound |
1 |
Rs.82.14 |
|
Euro |
1 |
Rs.65.09 |
SCORE & RATING
EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
6 |
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PAID-UP CAPITAL |
1~10 |
7 |
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OPERATING SCALE |
1~10 |
7 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
8 |
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--PROFITABILIRY |
1~10 |
6 |
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--LIQUIDITY |
1~10 |
8 |
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--LEVERAGE |
1~10 |
8 |
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--RESERVES |
1~10 |
8 |
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--CREDIT LINES |
1~10 |
7 |
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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 |
|
65 |
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. |
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 |
|