MIRA
INFORM REPORT
|
Report Date : |
03.12.2011 |
IDENTIFICATION DETAILS
|
Name : |
MAHINDRA AND MAHINDRA FINANCIAL SERVICES LIMITED |
|
|
|
|
Registered
Office : |
Gateway Building, Apollo Bunder, Mumbai-400001, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
01.01.1991 |
|
|
|
|
Com. Reg. No.: |
11-059642 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs.1024.529
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L65921MH1991PLC059642 |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The company’s shares are listed on the
Stock Exchange. |
|
|
|
|
Line of Business
: |
Providing Finance for Utility Vehicles (UVS) Tractors and Cars. |
|
|
|
|
No. of Employees
: |
5000 [Approximately] |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (80) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 99000000 |
|
|
|
|
Status : |
Excellent |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is one of Subject is a well established company having excellent track.
Financial position is good. Trade relations are fair. Business is active.
Payments are regular and as per commitments. Nothing adverse reported. Company can be considered good for normal business dealings under
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.
INFORMATION PARTED BY
|
Name : |
Mr. Rakesh |
|
Designation : |
Manager |
|
Contact No.: |
91-22-22021031 |
|
Date : |
02.12.2011 |
LOCATIONS
|
Registered Office : |
Gateway Building, Apollo Bunder, Mumbai-400001, Maharashtra,
India |
|
Tel. No.: |
91-22-66526000 |
|
Fax No.: |
91-22-66423800 |
|
E-Mail : |
|
|
Location: |
Owned |
|
|
|
|
Corporate
Office: |
Mahindra Towers, 4th Floor, Dr. G.M. Bhosale Marg, P.K.
Kurne Chowk, Worli, Mumbai-400018, Maharashtra, India |
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. Bharat Doshi |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Uday Y. Phadke |
|
Designation : |
Vice Chairman |
|
|
|
|
Name : |
Mr. Pawan Goenka |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Dhananjay Mungale |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. M. G. Bhide |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Piyush Mankad |
|
Designation : |
Director |
|
|
|
|
Name : |
Mrs. Rama Bijapurkar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Ramesh Iyer |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. V. Ravi |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Mr. Arnavaz M. Pardiwala |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. Rakesh |
|
Designation : |
Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2011
|
Category of
Shareholder |
Total No. of
Shares |
Total
Shareholding as a % of total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
58,241,532 |
56.00 |
|
|
1,461,166 |
1.40 |
|
|
1,461,166 |
1.40 |
|
|
59,702,698 |
57.40 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
59,702,698 |
57.40 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
4,634,253 |
4.46 |
|
|
21,000 |
0.02 |
|
|
35,697,140 |
34.32 |
|
|
40,352,393 |
38.80 |
|
|
|
|
|
|
543,135 |
0.52 |
|
|
|
|
|
|
2,402,658 |
2.31 |
|
|
795,044 |
0.76 |
|
|
206,807 |
0.20 |
|
|
153,517 |
0.15 |
|
|
2,181 |
- |
|
|
51,109 |
0.05 |
|
|
3,947,644 |
3.80 |
|
Total Public shareholding (B) |
44,300,037 |
42.60 |
|
Total (A)+(B) |
104,002,735 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
104,002,735 |
- |
SHAREHOLDING BELONGING TO THE CATEGORY:
"PROMOTER AND
PROMOTER GROUP"
|
Name of the
Shareholder |
Total Shares
held |
|
|
|
Number |
As a % of |
|
Mahindra and Mahindra Limited |
58,241,532 |
56.00 |
|
Ramesh Iyer |
969,005 |
0.93 |
|
Mahindra and Mahindra Financial
Services Limited Employees Stock Option Trust |
492,161 |
0.47 |
|
Total |
59,702,698 |
57.40 |
SHAREHOLDING
BELONGING TO THE CATEGORY
"PUBLIC"
AND HOLDING MORE THAN 1% OF THE TOTAL NO.OF SHARES
|
Name of the
Shareholder |
No. of Shares |
Shares as % of
Total No. of Shares |
|
Cophthall Mauritius Investment
Limited |
3,522,695 |
3.39 |
|
PCA India Equity Open Limited |
2,445,453 |
2.35 |
|
Tigar Global Mauritius Fund |
1,700,000 |
1.63 |
|
Valliant Mauritius Partners Limited |
2,187,885 |
2.10 |
|
Mirae Asset Korchindia Focus 7
Equity Investmnet Trust No 1 |
1,110,312 |
1.07 |
|
Tree Line Asia Master Fund
(Singapore) Pte Limited |
1,367,000 |
1.31 |
|
Dragaon Peacock Investments Limited |
1,288,838 |
1.24 |
|
Taib Securities Mauritius Limited |
1,076,027 |
1.03 |
|
Valiant Maurtitius Partners Offshore
Limited |
1,458,590 |
1.40 |
|
Fidelity Investment Trust-Fidelity
Diversified International Fund |
2,226,876 |
2.14 |
|
Credit Suisse Singapore Limited |
1,783,284 |
1.71 |
|
Cartica Capital Limited |
2,180,824 |
2.10 |
|
Total |
22,347,784 |
21.49 |
BUSINESS DETAILS
|
Line of Business : |
Providing Finance for Utility Vehicles (UVS) Tractors and Cars. |
|
|
|
|
Terms : |
|
|
Selling : |
L/C / Cash and Credit |
|
|
|
|
Purchasing : |
L/C / Cash and Credit |
GENERAL INFORMATION
|
Customers : |
Retailers and End Users |
||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
No. of Employees : |
5000 [Approximately] |
||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
·
Bank of America ·
Bank of Baroda ·
Bank of India ·
Bank of Maharashtra ·
Barclays Bank PLC ·
BNP Paribas Limited ·
Canara Bank ·
Central Bank of India ·
Chinatrust Commercial Bank ·
Citibank NA ·
Corporation Bank ·
Dena Bank ·
Deutsche Bank AG ·
Federal Bank Limited ·
FirstRand Bank Limited ·
HDFC Bank Limited ·
HSBC Limited ·
ICICI Bank Limited ·
IDBI Bank Limited ·
IndusInd Bank Limited ·
ING Vysya Bank Limited ·
Kotak Mahindra Bank Limited ·
Punjab National Bank ·
Standard Chartered Bank ·
State Bank of India ·
State Bank of Bikaner and Jaipur ·
Syndicate Bank ·
The Bank of Novascotia ·
The Dhanlakshmi Bank Limited ·
The Jammu and Kashmir Bank Limited ·
The Royal Bank of Scotland ·
UBS AG ·
Yes Bank Limited ·
Axis Bank, Mumbai, Maharashtra, India |
||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
B.K. Khare and Company Chartered Accountants |
|
Address : |
706/708, Sharda Chambers, Mumbai-400020, Maharashtra, India |
|
|
|
|
Solicitors |
|
|
Name : |
Khaitan and Company Chartered Accountants |
|
Address : |
One Indiabulls Centre, 13th Floor, 841, Senapati Bapat
Marg, Elphinstone Road, Mumbai-400013, Maharashtra, India |
|
|
|
|
Holding Company: |
Mahindra and Mahindra Limited |
|
|
|
|
Joint Ventures |
Mahindra Finance USA, LLC |
|
|
|
|
Subsidiary Companies: |
·
Mahindra Insurance Brokers Limited ·
Mahindra Rural Housing Finance Limited ·
Mahindra Business and Consulting Services Private
Limited (formerly known as Mahindra IT Consulting Private Limited) |
|
|
|
|
Fellow Subsidiaries: |
·
Mahindra Navistar Automotives Limited (formerly
known as Mahindra International Limited) ·
Mahindra USA, Inc ·
Mahindra Holidays and Resorts Limited ·
Mahindra Auto Developers Private Limited
(formerly known as Mahindra Renault Private Limited) ·
Mahindra Intertrade Limited ·
Mahindra First Choice Wheels Limited ·
NBS International Limited ·
Mahindra First Choice Services Limited ·
Mahindra Retail Private Limited ·
Mahindra Two Wheelers Limited ·
Mahindra Life Space Developers Limited |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
140000000 |
Equity Shares |
Rs.10/- each |
Rs.1400.000 Millions |
|
5000000 |
Redeemable Preferences Shares |
Rs.100/- each |
Rs.500.000 Millions |
|
|
Total |
|
Rs.1900.000
Millions |
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
104002735 |
Equity Shares |
Rs.10/- each |
Rs.1040.027
Millions |
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
104002735 |
Equity Shares |
Rs.10/- each |
Rs.1040.027
Millions |
|
|
Less: Shares issued to ESOP Trust but not allotted by it to employees (15,49,771
shares (Previous year : 9,19,048) issued to ESOS Trust) |
|
Rs.15.498
Millions |
|
|
Total |
|
Rs.1024.529 Millions |
Note: Mahindra and
Mahindra Limited, the Holding Company holds 5,82,41,532 shares as on March 31,
2011
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
1024.529 |
959.815 |
957.109 |
|
|
2] Employees Stock option Outstanding |
20.808 |
11.995 |
12.934 |
|
|
3] Reserves & Surplus |
23855.605 |
16313.837 |
13721.578 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
24900.942 |
17285.647 |
14691.621 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
83006.527 |
53259.309 |
44668.332 |
|
|
2] Unsecured Loans |
13743.617 |
11318.211 |
7461.822 |
|
|
TOTAL BORROWING |
96750.144 |
64577.520 |
52130.154 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
121651.086 |
81863.167 |
66821.775 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
717.486 |
407.895 |
371.065 |
|
|
Capital work-in-progress |
100.237 |
68.112 |
3.336 |
|
|
|
|
|
|
|
|
INVESTMENT |
6745.545 |
2159.294 |
1097.110 |
|
|
DEFERREX TAX ASSETS |
2167.296 |
2069.287 |
1787.508 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
0.000
|
0.000 |
0.000
|
|
|
Sundry Debtors |
38.406
|
42.559 |
7.784
|
|
|
Cash & Bank Balances |
2976.199
|
2419.916 |
2763.127
|
|
|
Other Current Assets |
145.892
|
37.664 |
25.390
|
|
|
Loans & Advances |
124649.886
|
87945.069 |
68383.358
|
|
Total
Current Assets |
127810.383
|
90445.208 |
71179.659 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
2765.019
|
2292.935 |
2549.573 |
|
|
Other Current Liabilities |
5036.933
|
3705.988 |
2945.697
|
|
|
Provisions |
8087.909
|
7287.706 |
2121.633
|
|
Total
Current Liabilities |
15889.861
|
13286.629 |
7616.903
|
|
|
Net Current Assets |
111920.522
|
77158.579 |
63562.756
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
121651.086 |
81863.167 |
66821.775 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
19739.335 |
15307.696 |
13648.234 |
|
|
|
Other Income |
386.499 |
380.345 |
198.385 |
|
|
|
TOTAL (A) |
20125.834 |
15688.041 |
13846.619 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Employee cost |
1515.049 |
1280.749 |
1172.846 |
|
|
|
Other Expenses |
3259.269 |
1870.036 |
1407.760 |
|
|
|
Provisions and Write Off’s |
1252.757 |
2215.218 |
2823.904 |
|
|
|
General Provision on Standard Assets |
314.300 |
0.000 |
0.000 |
|
|
|
TOTAL (B) |
6341.375 |
5366.003 |
5404.510 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
13784.459 |
10322.038 |
8442.109 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
6602.097 |
5017.324 |
5098.619 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
7182.362 |
5304.714 |
3343.490 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
157.880 |
99.029 |
87.281 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
7024.482 |
5205.685 |
3256.209 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
2393.390 |
1761.821 |
1111.003 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
4631.092 |
3443.864 |
2145.206 |
|
|
|
|
|
|
|
|
|
Less |
Short/(Excess)
Provision for Income Tax-earlier years (net) |
0.000 |
16.791 |
0.000 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
5106.559 |
3558.063 |
2680.096 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
General Reserve |
463.200 |
342.800 |
214.600 |
|
|
|
Statutory Reserve |
926.300 |
685.500 |
429.100 |
|
|
|
Proposed Dividend on Equity Shares |
1040.036 |
726.763 |
532.962 |
|
|
|
Corporate Dividend Tax on Equity Shares |
172.738 |
123.514 |
90.577 |
|
|
BALANCE CARRIED
TO THE B/S |
7135.377 |
5106.559 |
3558.063 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) (Basic) |
47.85 |
35.78 |
22.46 |
|
|
|
Earnings Per
Share (Rs.) (Diluted) |
44.53 |
35.37 |
22.14 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2011 |
30.09.2011 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
5476.990 |
6491.140 |
|
Total Expenditure |
|
1923.180 |
1995.140 |
|
PBIDT (Excl OI) |
|
3553.810 |
4496.000 |
|
Other Income |
|
162.650 |
158.820 |
|
Operating Profit |
|
3716.460 |
4654.820 |
|
Interest |
|
2159.710 |
2589.390 |
|
PBDT |
|
1556.750 |
2065.430 |
|
Depreciation |
|
44.020 |
49.360 |
|
Profit Before Tax |
|
1512.730 |
2016.070 |
|
Tax |
|
490.700 |
660.800 |
|
Profit After Tax |
|
1022.020 |
1355.270 |
|
Net Profit |
|
1022.020 |
1355.270 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
23.01
|
21.95 |
15.49 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
35.59
|
34.00 |
23.86 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
5.47
|
5.73 |
4.55 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.28
|
0.30 |
0.22 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
4.52
|
4.50 |
4.07 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
8.04
|
6.80 |
9.34 |
LOCAL AGENCY FURTHER INFORMATION
DETAILS OF SUNDRY CREDITORS:
|
Particulars |
31.03.2011 (Rs. in millions) |
31.03.2010 (Rs. in millions) |
31.03.2009 (Rs. in millions) |
|
Sundry Creditors |
2765.019
|
2292.935 |
2549.573 |
|
Check List by
Info Agents |
Available in
Report (Yes / No) |
|
1) Year of Establishment |
Yes |
|
2) Locality of the firm |
Yes |
|
3) Constitutions of the firm |
Yes |
|
4) Premises details |
Yes |
|
5) Type of Business |
Yes |
|
6) Line of Business |
Yes |
|
7) Promoter’s background |
-- |
|
8) No. of employees |
Yes |
|
9) Name of person contacted |
Yes |
|
10) Designation of contact person |
Yes |
|
11) Turnover of firm for last three years |
Yes |
|
12) Profitability for last three years |
No |
|
13) Reasons for variation <> 20% |
No |
|
14) Estimation for coming financial year |
No |
|
15) Capital in the business |
No |
|
16) Details of sister concerns |
Yes |
|
17) Major suppliers |
No |
|
18) Major customers |
No |
|
19) Payments terms |
Yes |
|
20) Export / Import details (if applicable) |
No |
|
21) Market information |
-- |
|
22) Litigations that the firm / promoter involved in |
-- |
|
23) Banking Details |
Yes |
|
24) Banking facility details |
No |
|
25) Conduct of the banking account |
-- |
|
26) Buyer visit details |
-- |
|
27) Financials, if provided |
No |
|
28) Incorporation details, if applicable |
-- |
|
29) Last accounts filed at ROC |
-- |
|
30) Major Shareholders, if available |
-- |
OPERATIONS
The overall disbursement
registered a growth of 61.7 per cent at Rs. 144199.000 Millions as compared to
Rs. 89154.000 Millions in the previous year. The Company during the year,
continued to diversify its product portfolio within its vehicle financing
business as well as through the introduction and growth of other financial
products and maintained its market leadership position in rural and semi-urban
market. The Company has increased its presence in financing of commercial
vehicle, construction equipment, as well as, pre-owned vehicle while
maintaining aggressive growth in car financing, retaining its leadership
position in financing Mahindra range of vehicles and tractors.
Income grew by
28.3 per cent to Rs. 20125.000 Millions for the year ended 31st March, 2011 as
compared to Rs. 15688.000 Millions for the previous year. Profit before Tax was
34.9 per cent higher at Rs. 7024.000 Millions as compared to Rs. 5206.000
Millions for the previous year. Profit after Tax grew at a healthy rate of 35.1
per cent to Rs. 4631.000 Millions as compared to Rs. 3427.000 Millions in the
previous year.
The Company has
achieved a very important milestone of cumulatively financing over one and a
half million customers since its inception. The number of contracts entered
into by the Company during the year was 3,67,774 as against 2,16,355 in the
previous year.
During the year,
the Assets Under Management have crossed Rs. 150000.000 Millions and stood at
Rs. 151610.000 Millions as at 31st March, 2011.
DISTRIBUTION OF MUTUAL
FUND PRODUCTS
During the year,
the activity of distribution of Mutual Fund Products (MFP) was carried out
across 17 branches covering 10 States.
The amount of
Mutual Fund Products outstanding through the Company’s Advisory Services,
aggregate of institutional and retail segment crossed an amount of Rs. 7000.000
Millions and the number of clients crossed 40,000.
FINANCE
During the year,
the Reserve Bank of India adopted a calibrated approach by hiking the Repo Rate
seven times by 25 basis points each to contain the inflationary pressure and
also introduced the Base Rate system from July 2010 which resulted in
medium/long term interest rate moving up by approximately 175 basis points.
Tight liquidity conditions persisted throughout the year resulting in the short
term money market rate increasing upward of 200 basis points. However, The
Company was able to reduce the impact of increase in interest rate by
continuously monitoring Asset Liability Management and following prudent Asset
Liability Management Guidelines.
During the year,
The Company continued its innovative methods of sourcing funds in addition to
regular borrowings like Secured and Unsecured Debentures, Term loans,
Commercial Paper, etc., and maintained prudential Asset/Liability match throughout
the year. The Company sourced long term loans from consortium banks at
attractive rates and a proportion of the same was eligible for priority sector
lending for banks. The Company also issued subordinated debt amounting to Rs.
2000.000 Millions and successfully assigned receivables to the tune of Rs.
12280.000 Millions.
During the year,
The Company has actively participated in a number of international and domestic
investor meets organised by reputed International Banks and Financial Services
Companies. The Company also periodically conducted analysts’ meets to
communicate details of performance, important developments and exchange
information.
MANAGEMENT DISCUSSION AND ANALYSIS
Subject is one of
India’s NBFCs. The focus of the Company lies in servicing the rural and
semiurban sector of India, and to help them Rise, as 70 per cent of India’s
population comes from those belts. Backed by the parentage of US$ 11.1 billion
Indian Multinational Mahindra Group, the Company started its operations in 1993
by financing the Mahindra range of vehicles.
In January 2011,
Mahindra and Mahindra Limited launched a new brand identity spanning all
industries, companies, and geographies. The new brand positioning, is driven by
the expression, “Rise”. In addition to guiding their product and service
development, this thought currently drives internal business transformation to
help us to consistently deliver on their core purpose and achieve the goal of
becoming a leading global player.
They are also en
route to re-evaluating all their processes from HR policies to brand and
digital architecture to drive positive change in their business success, as
well as their relationships with all their stakeholders.
INDIAN ECONOMY
The Indian economy
has once again emerged as one of the most consistent economies of world post
recession. During 2010-11, the overall gross GDP of India stood at 8.6 per
cent, going beyond the revised growth of 8 per cent according to the Advanced
Estimate 2009-10 of Central Statistics Office (CSO). This rise can be
attributed to agriculture and allied activities, which witnessed a robust
growth of 5.4 per cent in 2010-11, compared to a growth of 0.4 per cent in
2009-10. Industry and service sector has also grown considerably. The index of
six core industries in the Index of Industrial Production (IIP) has increased
by 5.6 per cent during April- January 2010-11. The cumulative FDI inflows from
April 2000 to January 2011 stood at US$ 189.8 billion. The strength of the
economic recovery during FY11, unanticipated by many, has been a revelation of
not only the strong fundamentals of the economy but also the opportunities that
it holds for the future. Timely and aggressive policy responses by the RBI and
the Government have helped overcome challenges to aid the growth process.
According to the UNCTAD World Investment Report 2010, India will emerge as the
second most attractive location for FDI for 2010-12. The Indian economy is
expected to drive positivity in reaching the US$ 3.5 trillion mark by 2020, despite
rising inflation being a significant concern. (Source: Indian Brand Equity
Foundation)
CONSUMER CREDIT
MARKET
The Indian
consumer credit market has undergone robust changes, as it relies on the
growing consumer sales in last few years. According to The Confederation of
Indian Industry, the rural consumer market size stands approximately at US$ 425
billion in the current fiscal with a customer base of 720—790 million
customers. The market today is double the size of the US$ 220 billion market in
2004-05. CRISIL expects the increased growth to boost the consumer credit
market of NBFCs by 50 per cent during 2010-13.
INDIAN HOUSING
FINANCE MARKET
India has a
shortage of approximately 26.53 million houses, especially in rural areas. The
Union budget 2010-11 has increased rural housing fund to Rs. 30000.000
Millions, compared to Rs. 20000.000 Millions in 2009-10. Growth in agriculture
and rural economy is expected to report a growth of 24 per cent in housing loan
in the next fiscal (Source: moneycontrol.com). Housing development in rural and
semi-urban areas will catalyse the growth of NBFCs.
GROWING MUTUAL
FUND AND INSURANCE SECTOR
Increased per
capita income of India (17.3 per cent in 2010-11 compared to 10.5 per cent in
the previous year) resulted in a growth of household savings from around US$
100 billion to US$ 260 billion in last 10 years, out of which 60 per cent was
held in financial assets. According to KPMG, these positive reinforcements will
result in an approximate 22-25 per cent growth in Indian Mutual Fund Industry
during 2010-15.
Again, the
insurance sector accounts for US$ 33-38 billion household savings. The
Associated Chamber of Commerce and Industry of India expect the total insurance
business to reach the benchmark of Rs. 2000 billion in the next two years from
the current level of Rs. 500 billion.
JOINT VENTURE
During the year,
The Company has entered into a joint venture with De Lage Landen Financial
Services Inc., (DLLFS) a whollyowned subsidiary of the Rabobank Group, for
setting up a joint venture company viz. Mahindra Finance USA LLC., a State of
Delaware limited liability company, to inter alia, provide wholesale inventory
financing to US based dealers, to finance dealer purchases of Mahindra Products
and to provide retail financing to end-user customers to finance their lease or
purchase of Mahindra products or used products from dealers, in USA. The
Company holds 49 per cent of the equity capital of Mahindra Finance.
SUBSIDIARY COMPANIES
MAHINDRA INSURANCE
BROKERS LIMITED
The business of
direct insurance broking for Life and Non-Life products is carried out by The
Company’s wholly-owned subsidiary, Mahindra Insurance Brokers Limited (MIBL).
The year represents the seventh year of MIBL’s insurance broking operations.
During the year MIBL has received its insurance broking license duly renewed
with effect from 18th May, 2010 for a period of three years, from the Insurance
Regulatory and Development Authority.
During the year,
MIBL crossed the 5,00,000 mark in terms of policies serviced, with a total of
5,08,878 polices for both Life and Non- Life retail business lines. The
customised Life insurance cover “Mahindra Loan Suraksha” (MLS) continued to
receive an encouraging response and grew by 87.7 per cent from 1,47,154 lives
covered with a Sum Assured of Rs. 35184.000 Millions in the Financial Year
2009-10 to 2,76,198 lives covered with a Sum Assured of Rs. 6,2718.000 Millions
in the Financial Year 2010-11, with a substan
MIBL achieved a
growth of 55.2 per cent in Net Premium generated for the Corporate and Retail
business lines, increasing from Rs. 1863.000 Millions (Gross Premium Rs.
2027.000 Millions) in the Financial Year 2009-10 to Rs. 2892.000 Millions
(Gross Premium Rs. 3186.000 Millions) in the Financial Year 2010-11, crossing a
milestone of Rs. 3000.000 Millions Gross Premium.
The Income
increased by 65.0 per cent from Rs. 314.000 Millions in the Financial Year 2009-10
to Rs. 518.000 Millions in the Financial Year 2010-11. The Profit Before Tax
increased by 95.8 per cent from Rs. 168.000 Millions to Rs. 329.000 Millions,
and the Profit After Tax increased by 96.4 per cent from Rs. 111.000 Millions
to Rs. 218.000 Millions during the same period.
MAHINDRA RURAL HOUSING FINANCE LIMITED
Mahindra Rural
Housing Finance Limited (MRHFL) in the fourth year of its operations disbursed
loans aggregating Rs. 2036.000 Millions previous year Rs. 906.000 Millions),
covering over 21,000 families. The profit after tax for the year ended 31st
March, 2011 was Rs. 89.000 Millions (previous year Rs. 22.000 Millions). The
outstanding loan portfolio as at 31st March, 2011 stood at Rs. 3153.000
Millions.
The housing loans
sanctioned during the year ended 31st March, 2011 were to the extent of Rs.
2631.000 Millions as against Rs. 1072.000 Millions sanctioned during the
previous year. The cumulative loans sanctioned by MRHFL as at the end of
Financial Year 2010-11 was Rs. 4263.000 Millions as compared to Rs. 1632.000
Millions in the previous year. The cumulative loan disbursement at the end of
the year stood at Rs. 3406.000 Millions as compared to Rs. 1370.000 Millions in
the previous year.
MRHFL has been
successful in establishing its presence in the rural and semi-urban areas by
leveraging the branch network of The Company. During the year, operations were
strengthened in the states of Maharashtra, Gujarat, Rajasthan, Tamil Nadu,
Andhra Pradesh, Kerala, Karnataka and Madhya Pradesh. During the year, MRHFL was able to secure a
great deal of support and guidance from National Housing Bank.
COMPANY OVERVIEW
BUSINESS OVERVIEW
The innovative and
customised financial service offerings by MMFSL, with expertise in serving
rural India, helped tap into India’s rural financing needs and overcome the
challenges that the rural and semi-urban class faces, to fulfil their
aspirations and thus helping them to Rise.
The Company’s
strategy is to provide a range of financial products and services to its
customers through its nationwide distribution network. The Company seeks to
position itself between the organised banking sector and local money lenders,
offering its customers competitive, innovative, and speedy lending services.
Through its universally relevant rebranding, key strengths of the Company is
its strong relationship with dealers, in-depth understanding of the market, its
wide network of branches, a large locally recruited employee force and
management of asset quality risks have become drivers of business success. The
debt offering of MMFSL are extremely well recognised by credit rating agencies
like CRISIL (AA+), FITCH (AA ind) and Brickworks Credit Ratings (AA+). The
Fixed Deposit Programme of the Company has been rated ‘FAAA/Stable’ by CRISIL.
PRODUCT BASKET
·
Vehicle loans (Utility vehicles, Commercial
·
Vehicles, Tractors, Cars, Two-wheelers)
·
Used Vehicle Financing
·
Housing Finance
·
Personal Loan
·
Fixed Deposits
·
Mutual Fund Distribution
·
Insurance Broking
·
Loan against Gold
·
Construction Equipment Loan
The housing
finance and insurance broking businesses are provided by its two subsidiaries,
Mahindra Rural Housing Finance Limited and Mahindra Insurance Brokers Limited
respectively.
OPERATIONAL
OVERVIEW
·
Acquired a considerable market share in the New
vehicle market of India
·
The value of assets financed registered a growth of
61.7 per cent to Rs. 144199.000 Millions in 2010-11 as compared to Rs.
89154.000 Millions in 2009-10
·
The Company’s total assets increased by 44.6 per
cent from Rs. 95150.000 Millions on 31st March, 2010 to Rs. 137541.000 Millions
on 31st March, 2011
·
Total income registered 28.3 per cent growth, from
Rs. 15688.000 Millions in 2009-10 to Rs. 20125.000 Millions in 2010-11, in
tandem with the 62 per cent increased business volume
·
Total borrowing stands at Rs. 96750.000 Millions,
with a diversified and balanced funding
·
Number of offices increased to 547 in the current
year, spreading across 25 states and 4 Union Territories
·
On a cumulative basis, number of customer contracts
increased by 30.9 per cent from 11,89,848 as at 31st March, 2010 to 15,57,622
as at 31st March, 2011
·
Number of employees engaged stands at 8,723 in
2010-11
·
Net NPA to Total Assets reduced to 0.6 per cent in
2010-11, compared to that of 0.9 per cent in the previous fiscal
FINANCIAL OVERVIEW
The financial
statements have been prepared in compliance with the requirements of the
Companies Act, 1956, and Generally Accepted Accounting Principles (GAAP) in
India. The abridged financials of MMFSL for 2010-11 including revenue,
expenditure and profits.
During the year,
the growth in cumulative contracts was at 30.9 per cent with 15,57,622
customers acquired, surpassing the benchmark of 1.5 million customers. The
Company’s total assets grew by 44.6 per cent from Rs. 95150.000 Millions in
2009-10 to Rs. 137541.000 Millions in 2010-11. As a result, total revenues grew
by 28.3 per cent from Rs. 15688.000 Millions in 2009-10 to Rs. 20125.000
Millions in 2010-11.
The net spread on
its assets was maintained at 6.2 percentage points in 2010-11 as against 6.3
percentage points in 2009-10.
Profit before tax
(PBT) of the Company grew at 34.9 per cent from Rs 5206.000 Millions in 2009-10
to Rs. 7024.000 Millions in 2010-11, whereas profit after tax (PAT) grew by
35.1 per cent from Rs. 3427.000 Millions to Rs. 4631.000 Millions during the
same period.
Consequently,
basic earnings per share has increased from Rs. 35.8 in 2009-10 to Rs. 47.9 in
2010-11.
FUTURE OUTLOOK
In the long run,
the growth in vehicle financing would be driven by the demand arising from
changing demographics and income patterns and financial results by improved
portfolio health on account of stringent credit norms and reduction in
delinquency level.
The Company sees
huge potential for the housing finance business in the rural and semiurban
markets, which till date remains untapped to a large extent. Even as the
Company takes these initiatives forward, the main focus will be on expanding
the branch network systematically. The main challenge as the Company grows will
be to maintain the strong levels of operational performance by introducing
innovative products with local relevance, giving priority to customer focus and
convenience, and simultaneously maintaining strong processes and prudent risk
management.
Nevertheless, the
Company is positive about the growth scenario and confident to leverage this
opportunity with its strategic moves. The Tie-ups with automobile giants like
Maruti and Hyundai Motors will gradually extend the presence of MMFSL in the
vehicle market. On the other hand, tie-up with National Housing Bank will
extend the horizon of housing finance. The outlook for 2011- 12 continues to be
cautiously optimistic subject to a normal monsoon and stable fuel prices.
INFORMATION TECHNOLO GY (IT)
Information
Technology support systems aids the Company in performing the processes
involved in a loan transaction. The information technology system is controlled
from the Company’s head office in Mumbai, allowing
senior management
to receive operational data on a prompt basis. As of 31st March, 2011, more
than 90 per cent of the offices were connected to the centralized data centre
in Mumbai. Further, the Company’s field executives use more than 4,000
hand-held GPRS devices to collect loan installments at the customer’s home or
business locations. The Company is also in the process of rolling out handheld
machines, which will be used to conduct origination of business by the
employees in the field. The Company’s production servers also maintain a daily
automated backup. The Company currently has the technology and facilities in
place to back up its systems and has established a disaster recovery procedure
in Mumbai.
CONTINGENT LIABILITY NOT PROVIDED FOR: [As on 31.03.2011]
1.
Taxation matters : Demands against the Company not
acknowledged as debts and not provided for, in respect of which the Company is in
appeal and exclusive of assessments remaining to be completed: Income Tax: Rs.
556.924 Millions. These demands are met to the extent of Rs. 336.949 Millions,
partly by payment and partly by adjustment against refunds due to the Company.
2.
Estimated amount of contracts remaining to be
executed on Capital account Rs. 59.916 Millions.
3.
Corporate undertaking on assignment Rs. 7325.329
Millions.
4.
Legal Suits filed by the customers in Consumer
Forums and Civil courts claiming compensation against Company amounting to Rs.
172.199 Millions.
AUDITED
STANDALONE FINANCIAL RESULTS FOR THE HALF YEAR AND QUARTER ENDED 30TH
SEPTEMBER, 2011
Rs.
in Millions
|
PARTICULAR |
QUARTER ENDED |
HALF YEAR ENDED |
|
|
30.09.2011 |
30.09.2011 |
|
|
|
|
|
Income from operations |
6491.135 |
11968.124 |
|
Total |
6491.135 |
11968.124 |
|
|
|
|
|
Financial
expenses |
2589.387 |
4749.093 |
|
Staff
cost |
510.159 |
1029.509 |
|
Other
expenses |
961.759 |
1804.221 |
|
Provision
and write off |
523.228 |
1084.604 |
|
Depreciation
and amortization |
49.359 |
93.375 |
|
Total |
4633.892 |
8760.802 |
|
Profit
from operation before other income |
1857.243 |
3207.322 |
|
Other
income |
158.824 |
321.469 |
|
Profit from ordinary activities before tax |
2016.067 |
3528.791 |
|
Tax expenses |
660.800 |
1151.500 |
|
Net
profit after tax for the period / year |
1355.267 |
2377.291 |
|
Paid
up equity share capital (Face value of Rs.10/- per share) |
-- |
1025.415 |
|
Reserves
excluding revaluation reserves as per balance sheet of previous accounting
year |
|
|
|
Earning
per share (EPS) |
|
|
|
(a) Basic and diluted
EPS before Extraordinary items for the period, for the year
to date and for the previous year (not to be
annualised) |
13.22 |
23.19 |
|
(a) Basic and diluted EPS
before Extraordinary items for the period, for the year
to date and for the previous year (not to be
annualised) |
13.03 |
22.86 |
|
Public
shareholding |
|
|
|
Number of shares |
44300037 |
44300037 |
|
Percentage of shareholding |
42.60 |
42.60 |
|
|
|
|
|
Promoters
and Promoters group Shareholding- |
|
|
|
a)
Pledged /Encumbered |
|
|
|
Number
of shares |
Nil |
Nil |
|
Percentage
of shares (as a % of total shareholding of the promoter and promoter group) |
Nil |
Nil |
|
Percentage
of shares (as a % of total share capital of the company) |
Nil |
Nil |
|
|
|
|
|
b)
Non Encumbered |
|
|
|
Number
of shares |
59702698 |
59702698 |
|
Percentage
of shares (as a % of total shareholding of the promoter and promoter group) |
100.00 |
100.00 |
|
Percentage
of shares (as a % of total share capital of the company) |
57.40 |
57.40 |
STATEMENT OF ASSETS
AND LIABILITIES AS ON 30TH SEPTEMBER, 2011
|
|
|
Rs in Millions |
|
Particulars |
Half Year Ended |
|
|
As on 30.09.2011 |
||
|
|
||
|
|
|
|
|
SHAREHOLDERS FUNDS |
|
|
|
Share Capital |
1025.415 |
|
|
Employees Stock Options Outstanding |
56.038 |
|
|
Reserves & Surplus |
26237.919 |
|
|
|
|
|
|
LOAN FUNDS |
124226.230 |
|
|
|
|
|
|
DEFERRED TAX
LIABILITIES |
0.000 |
|
|
|
|
|
|
TOTAL |
151545.602 |
|
|
|
|
|
|
FIXED ASSETS |
946.686 |
|
|
|
|
|
|
INVESTMENT |
2576.352 |
|
|
|
|
|
|
DEFERRED TAX
ASSETS |
2237.496 |
|
|
|
|
|
|
CURRENT ASSETS,
LOANS & ADVANCES |
|
|
|
Inventories |
0.000 |
|
|
Sundry Debtors |
38.406 |
|
|
Cash & Bank
Balances |
2540.235 |
|
|
Other Current
Assets |
166.815 |
|
|
Loans &
Advances |
158587.465 |
|
|
|
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
Other Current
Liabilities |
8428.974 |
|
|
Provisions |
7118.879 |
|
|
|
|
|
|
Net
Current Assets |
145785.068 |
|
|
|
|
|
|
TOTAL |
151545.602 |
|
NOTES:
1.
The above results have been reviewed by the audit
committee and subsequently approved by the board of directors of the company at
its meeting held on 24th October, 2011.
2.
The consolidated results includes the audited
financial results for the subsidiaries Mahindra Insurance Brokers Limited
(100%), Mahindra Rural Housing Finance Limited (87.50%), Mahindra Business and
Consulting Services Private Limited (100%), and financial results of a 49%
joint venture company. Mahindra Finance USA, LLC, in the United States which
were neither audited nor reviewed.
3.
The company has a single reportable segment, namely
financial services for the purpose of accounting standard 17 on segment
reporting.
4.
The company has complied with the prudential
guidelines issued by the Reserve Bank of India in respect of Income Recognition
and Provision for Non-Performing Assets.
5.
During the
quarter, the company has made an investment of Rs.140.000 millions in Mahindra
Rural Housing Finance Limited. Its subsidiary by paying further amount of
Rs.4/- per share (face value of RS.10/- each) as final call money.
6.
Income from operation for the quarter included
income from fresh assignment transactions (net of upfront provision for
loss/expenses) of Rs. Nil (September 2010: Rs.149.215 millions.)
7.
Income from operation for the half year includes
income from fresh assignment transitions
(net of upfront provision for loss/expenses) of Rs. Nil (September 2010
RS.255.988 millions, March 11 Rs.532.214 millions) and a write back of
provision on earlier assignment transaction of rs.73.140 millions (September
2010 Rs.157.825 millions, March 11 SR.364.800 millions) no longer required.
8.
In the standalone results other expenses for the
quarter includes Rs.227.761 millions(September 2010 Rs.123.753 millions) and
for the half year include Rs.409.175 millions (September 2010 Rs.224.970
millions, March 11 Rs.562.622 millions) incurred towards professional fees for
manpower services provided by Mahindra Business and Consulting Services Private
Limited, a wholly owned subsidiary company.
9.
Information on investor complaints pursuant to
clause 41 of the listing agreement for the quarter ended 30th
September 2011.
|
Particular |
Opening Balance |
Additions |
Disposal |
Closing Balance |
|
Number of
complaints |
0 |
58 |
58 |
0 |
10.
Previous period / year figures are regrouped,
wherever found necessary.
FIXED ASSETS:
·
·
Premises
·
Office Equipments
·
Vehicles
·
Furniture
·
Computers
WEBSITE DETAILS:
BUSINESS
DESCRIPTIONS:
Subject is an India-based, non-banking finance company. The Company is a subsidiary of Mahindra and Mahindra Limited (M and M). The Company’s financing solutions include vehicle financing, refinancing, housing finance, personal loans, fixed deposits, insurance broking and mutual fund distribution. The Company is focusing primarily on rural and semi-urban India through personalized financing of utility vehicles, tractors, cars, home loans and personal loans. The Company offerings in vehicle finance includes tractor loans, utility vehicle loans, car loans, three-wheeler loans, commercial vehicle loans, two-wheeler loans and loans for construction equipment. MMFSL provides loans against existing four wheelers of the customers. During the fiscal year ended March 31, 2011, the Company had a joint venture in the United States with De Lage Landen Financial Services Inc., a wholly owned subsidiary of Rabobank for financing tractors. For the nine months ended 31 December 2010, Mahindra and Mahindra Financials Service Limited's revenues increased 31% to RS14.53B. Net income increased 54% to RS3.27B. Revenues reflect an increase in income from operations. Net income also reflects a decrease in provisions and write off expenses and a rise in operating profit margin. The company operates with its two subsidiaries namely Mahindra Insurance and Mahindra Rural Housing Finance Limited
BOARD OF DIRECTORS:
BHARAT N. DOSHI
NON-EXECUTIVE
NON-INDEPENDENT CHAIRMAN
Mr. Bharat N. Doshi is Non-Executive Non-Independent Chairman of the Board of Subject .Mr. Bharat Doshi is a fellow member of both, the Institute of Chartered Accountants of India and the Institute of Company Secretaries of India and has a Master’s Degree in Law from the University of Bombay. He has participated in the Program for Management Development at the Harvard Business School. He was also a Fellow of the Salzburg Seminar on Asian Economies: Regional and Global Relationships held in December 2000. Mr. Bharat Doshi joined Mahindra and Mahindra Limited (M and M) in the year 1973. He is presently the Executive Director and Group Chief Financial Officer (Group CFO), M and M. He is actively involved with the work of several Chambers of Commerce and Industry in India and is a member of Expert Committees, which influence economic and business policies of the Government. He was a member of the High Powered Expert Committee constituted by the Ministry of Finance, Government of India, on Making Mumbai an International Financial Centre. He is a member of the SEBI (Securities and Exchange Board of India) Committee on Disclosures and Accounting Standards (SCODA). Mr. Bharat Doshi was the Chairman of Expert Committee on Economic Affairs of Bombay Chamber of Commerce and Industry (BCCI) during 1996-97. He was a member of the Managing Committee of Bombay Chamber of Commerce and Industry from May 2005 to May 2007. Mr. Bharat Doshi was the Vice President of Bombay Chamber of Commerce and Industry (BCCI) in 2008-09. Presently, he is the President of BCCI for the year 2009-2010. Mr. Doshi has spoken at several international and domestic fora on economic and management topics over the years. His Qualifications is B. Com., FCA, FCS, LLM, participated in the programme for Management Development at the Harvard Business School.
MANOHAR G. BHIDE
NON-EXECUTIVE
INDEPENDENT DIRECTOR
Mr. Manohar G. Bhide is Non-Executive Independent Director of Subject. He is a Master of Arts and CAIIB and Expertises in Banking and Finance. His other Direstorships include, Finolex Industries Limited, Mahindra Shubhlabh Services Limited, J. P. Morgan Securities India Private Limited, Global Trade Finance Limited IOT Infrastructure and Energy Services Limited, Asset Reconstruction Company (India) Limited and J. P. Morgan Mutual Fund India Private Limited
RAMA BIJAPURKAR
NON-EXECUTIVE INDEPENDENT DIRECTOR
Mrs.. Rama Bijapurkar is Non-Executive Independent Director of Subject. She holds a B. Sc. (Hons.) degree in Physics from the University of Delhi and a Post Graduate Diploma in Management from the Indian Institute of Management, Ahmedabad. She is a voice on India’s consumer economy and has an independent market strategy consulting practice. She has 30 years of experience in market research and market strategy consulting. Her work experience prior to setting up her independent market strategy consulting practice includes employment with McKinsey and Co., MARG Marketing and Research Group and full time consulting with Hindustan Unilever Limited. She is a dominant public voice on India’s Consumer Economy and author of We are like that only- Understanding the logic of Consumer India.
PAWAN KUMAR GOENKA
NON-EXECUTIVE NON-INDEPENDENT DIRECTOR
Dr. Pawan Kumar Goenka Ph.D. is Non-Executive Non-Independent Director of Subject. Dr. Goenka is a Mechanical Engineer with a B. Tech from the Indian Institute of Technology, Kanpur, and a Ph. D from Cornell University, USA. He has also done an Advanced Management Programme (AMP) at the Harvard Business School. Dr. Goenka is an internationally acknowledged scientist manager with several citations to his credit. He has received the Distinguished Alumni Award from the Indian Institute of Technology, Kanpur in 2004 and is a Fellow of the Society of Automotive Engineers (SAE) and of the Indian National Academy of Engineers. He has been honoured by General Motors through the Charles L. McCuen Achievement Award twice and the Extraordinary Accomplishment Award. Dr. Goenka is the President of the Society of Indian Automobile Manufacturers. He is a Member of the American Society of Mechanical Engineers and a Member of the Governing Council of National Automotive Testing and R and D Infrastructure Project. He is the past-President of both, the Automotive Research Association of India (ARAI) Governing Council and SAE India. He is also on the Board of several Mahindra Group Companies. Dr. Goenka has published over fifteen Research papers in Technical journals.
PIYUSH GUNWANTRAI
MANKAD
NON-EXECUTIVE
INDEPENDENT DIRECTOR
Mr. Piyush Gunwantrai Mankad is Non-Executive Independent Director of Subject. Mr. Mankad did his post graduation in History from St. Stephens College, University of Delhi, and obtained a post graduation diploma in Development Studies with Distinction from Cambridge, U. K. Mr. Mankad is a retired civil servant. He was the Managing Director, State Industrial Development and Investment Corporation and ex- officio Secretary to the State Government. He has also held important positions including those of Counsellor Economic, Embassy of India - Tokyo, Controller of Capital Issues - Ministry of Finance, Director General - National Productivity Council of India, Secretary - Departments of Industrial Development and Public Enterprises, Secretary - Industrial Policy and Planning, Chairman - Foreign Investment Promotion Board, Secretary - Information and Broadcasting, Finance Secretary - Government of India and Executive Director (India) and Board Member Asian Development Banlç Manila. He was also a member of Telecom Commission, Space Commission and Atomic Energy Commission and is on the Board of IIM Ahmedabad, IIM Calcutta and IIM Bangalore. He was a Member of the Investment Advisory Committee of the Army Group Insurance Fund, India.
DHANANJAY N. MUNGALE
NON-EXECUTIVE
INDEPENDENT DIRECTOR
Mr. Dhananjay N. Mungale is a Non-Executive Independent Director of Subject. Mr. Dhananjay Mungale is a Chartered Accountant and a Law graduate. He has spent a part of his career in corporate and investment banking in India and Europe with Bank of America and DSP Merrill Lynch Limited He is presently acting as advisor to corporations in India and Europe. He is on the Board of public and private limited companies.
UDAY Y. PHADKE
NON-EXECUTIVE
DIRECTOR
Mr. Uday Y. Phadke is Non-Executive Director of Subject. He resigned as Non-Executive Non-Independent Vice Chairman of the Board of the company effective October 24, 2011. Mr. Phadke holds Bachelor of Commerce, A.C.A., A.C.S. and an LL.B (Gen). His other directorships include: Mahindra and Mahindra Financial Services Limited, Mahindra World City Developers Limited, Mahindra Gujarat Tractor Limited, Mahindra Gesco Developers Limited, Mahindra Holdings and Finance Limited, Mahindra Holidays and Resorts India Limited and Mahindra World City (Jaipur) Limited.
PRESS RELEASES:
Mahindra Finance
F-2012 H1 PAT up by 25%
F-2012 H1 Income up by 40%
F-2012 H1 Disbursement up by 33%
Mumbai, October 24, 2011: The Board of Mahindra and Mahindra Financial Services Limited (Mahindra Finance), a leading provider of financial services in the rural and semi-urban markets today announced its financial results for the half year ended 30th September 2011.
F-2012 H1 Standalone Results
The Total Income increased by 40% at Rs.12290.000 Millions during the half year ended 30th September 2011 as against Rs.8800.000 Millions in the corresponding period last year. The Profit After Tax (PAT) was at Rs.2380.000 Millions during the half year ended 30th September 2011 registering a growth of 25% as compared to Rs. 1910.000 Millions during the corresponding period last year.
F-2012 Q2 Standalone Results
The Total Income increased by 39% at Rs. 6650.000 Millions during the quarter ended 30th September 2011 as against Rs.4790.000 Millions in the corresponding period last year. The Profit After Tax (PAT) was at Rs. 1360.000 Millions during the quarter ended 30th September 2011 registering a growth of 17% as compared to Rs. 1160.000 Millions during the corresponding period last year.
Operations
MMFSL was able to register a disbursement growth of 33% by maintaining its leadership position as the largest retail financier for semi urban and rural markets. The Company has significantly improved its performance as a car financier and has increased its presence in Heavy Commercial Vehicles and Construction Equipment.
The borrowing cost of the company increased due to the increase in policy rates announced by the Reserve Bank of India from time to time.
The company has not entered into any assignment transaction in the half year ended 30th September 2011, pending certain clarifications from the regulators on priority sector lending guidelines.
The company maintained growth in its profitability in spite of increased borrowing cost absence of assignment transaction and additional standard asset provision, by its focus on NPA reduction and cost rationalization.
M and MFSL currently has a network of 570 offices and total assets under
management of Rs.177050.000 Millions as on 30th September 2011.
The Company was able to broad base its consortium by bringing in new banks.
SUBSIDIARIES
Mahindra Insurance Brokers Limited (MIBL)
During the half year ended September 30, 2011, MIBL registered income at Rs.161.900 Millions as against Rs.233.500 Millions in the same period previous year. The Profit After Tax (PAT) registered was Rs.26.200 Millions as against Rs.94.100 Millions registered for the same period previous year. The reduction is primarily on account of the impact of the regulatory clarification on Guidelines on Group Insurance Policies issued by the IRDA.
Mahindra Rural Housing Finance Limited (MRHFL)
MRHFL has disbursed Rs.1214.600 Millions during the half year ended 30th September 2011 as against Rs.847.700 Millions disbursed during the same period previous year, registering a growth of 43.28 % over the same period previous year. The Profit After Tax (PAT) registered a growth of 4.16 % at Rs. 37.600 Millions as against Rs. 36.100 Millions registered for the same period previous year. During the period, NHB has issued notification on providing 0.40% provision on all standard assets and increased provisioning requirements on non- performing assets with immediate effect. The amount of Rs. 13.100 Millions is debited to profit and loss account on account of above notification.
F-2012 H1 Consolidated Results
The Total Income increased by 40% at Rs.12710.000 Millions during the half year ended 30th September 2011 as against Rs.9060.000 Millions in the corresponding period last year. The Profit After Tax (PAT) was at Rs. 2420.000 Millions during the half year ended 30th September 2011 registering a growth of 19% as compared to Rs. 2030.000 Millions during the corresponding period last year.
FY-2012 Q2 Consolidated Results
The total income increased by 39% at Rs.6860.000 Millions during the quarter ended 30th September 2011 as against Rs.4930.000 Millions during the corresponding period last year. The PAT increased by 11% at Rs.1360.000 Millions for the quarter ended 30th September 2011 as compared to Rs.1230.000 Millions during the same period last year.
About Mahindra and Mahindra Financial Services Limited
Mahindra and Mahindra Financial Services Limited (M and MFSL), part of the US $12.5 billion Mahindra Group, is one of India’s leading non-banking finance companies with a pan India presence. Focused on the rural and semi-urban sector, it provides finance for utility vehicles, tractors and cars and has the largest network of branches amongst NBFCs operating in these areas.
About The Mahindra Group
The Mahindra Group focuses on enabling people to rise. Mahindra operates in the key industries that drive economic growth, enjoying a leadership position in tractors, utility vehicles, information technology, vacation ownership, rural and semi-urban financial services, etc. Mahindra has a significant and growing presence amongst others, in the automotive industry, agribusiness, aerospace, automotive components, consulting services, defence, energy, industrial equipment, logistics, real estate, retail, steel and two wheelers.
A US $12.5 billion multinational group based in Mumbai, India, Mahindra employs more than 1,37,000 people in over 100 countries. In 2011, Mahindra featured on the Forbes Global 2000 list, a listing of the biggest and most powerful listed companies in the world. For four years in a row, Mahindra has featured in the Forbes Asia’s Fab 50 List of the 50 best publicly traded companies in the Asia-Pacific regions. Dun and Bradstreet also ranked Mahindra at No. 1 in the automobile sector in its list of India’s Top 500 Companies.
In 2010, Mahindra featured in the Credit Suisse Great Brands of Tomorrow. Its flagship company Mahindra and Mahindra Limited is the only Indian automobile manufacturer to feature in the top 10 list of the Carbon Disclosure Leadership Index in India - 2010, created by the Carbon Disclosure (CDP). In 2011, Mahindra acquired a majority stake in Korea’s Sang Yong Motor Company.
For further information, please visit www.mahindra.com
Connect with us on www.facebook.com/mahindragroup
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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.51.35 |
|
|
1 |
Rs.80.50 |
|
Euro |
1 |
Rs.69.14 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
80 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.