MIRA
INFORM REPORT
|
Report Date : |
18.01.2011 |
IDENTIFICATION DETAILS
|
Name : |
MAHINDRA GEARS AND TRANSMISSIONS PRIVATE LIMITED |
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Formerly Known
As : |
SAR TRANSMISSION PRIVATE LIMITED |
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Registered
Office : |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
27.08.2004 |
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Com. Reg. No.: |
11-168150 |
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CIN No.: [Company Identification
No.] |
U29130MH2004PTC168150 |
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Legal Form : |
Private Limited Liability Company |
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Line of Business
: |
Manufacturer of Auto Components Comprising of Automobile Gears like Spur
Gear, Helical Gear, Straight Bevel Gear, Sprockets along with Transmission
Spline Shafts, Couplings and Power Takeoff Clutches which are used for
Transmission, Engine and Differential Gear Boxes. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (45) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 1130000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having satisfactory track. Trade
relations are reported as fair. Business is active. Payments are reported to be
usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INFORMATION PARTED BY
|
Name : |
Mr. Kaushik Damani |
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Designation : |
Marketing Manager |
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Date : |
15.01.2011 |
LOCATIONS
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Registered Office : |
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Tel. No.: |
91-22-24916683 |
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Fax No.: |
91-22-24900833 |
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E-Mail : |
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Website : |
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Area : |
5000 sq.ft |
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Location : |
Owned |
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Factory : |
Plot No.1, 31 To 34, Galaxy Industrial Estate, Shapar, Kotada Sangani,
Rajkot 360024, Gujarat, India |
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Tel. No.: |
91-2827-252590 / 253162 |
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Fax No.: |
91-2827-252962 |
DIRECTORS
AS ON 26.07.2010
|
Name : |
Mr. Zhooben D Bhiwandiwala |
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Designation : |
Director |
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Date of Birth/Age : |
09.12.1959 |
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Date of Appointment : |
24.12.2007 |
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Name : |
Mr. Romesh Kaul |
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Designation : |
Director |
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Date of Birth/Age : |
08.09.1957 |
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Date of Appointment : |
21.08.2006 |
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Name : |
Mr. Hemant Hansraj Luthra |
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Designation : |
Director |
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Date of Birth/Age : |
18.04.1949 |
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Date of Appointment : |
18.01.2007 |
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Name : |
Mr. Sanjay Vasant Joglekar |
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Designation : |
Director |
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Date of Birth/Age : |
09.10.1955 |
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Date of Appointment : |
23.07.2009 |
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Name : |
Mr. Prashant Purker |
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Designation : |
Director |
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Date of Birth/Age : |
05.07.1962 |
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Date of Appointment : |
26.07.2010 |
KEY EXECUTIVES
|
Name : |
Ms. Payal Ashok Vyas |
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Designation : |
Secretary |
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Date of Birth/Age : |
10.09.1980 |
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Date of Appointment : |
27.04.2009 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 26.07.2010
|
Names of Shareholders |
No. of Shares |
|
Mahindra and Mahindra Limited, Mumbai |
4030706 |
|
Mahindra and Mahindra Limited Joint with Mr. Narayan Shankar |
100 |
|
IDBI Trusteeship Services Limited ( |
3526094 |
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Total |
7556900 |
AS ON 26.07.2010
|
Equity Share
Breakup |
|
Percentage of
Holding |
|
Category |
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Bodies corporate |
|
100.00 |
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Total
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Auto Components Comprising of Automobile Gears like
Spur Gear, Helical Gear, Straight Bevel Gear, Sprockets along with Transmission
Spline Shafts, Couplings and Power Takeoff Clutches which are used for
Transmission, Engine and Differential Gear Boxes. |
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Products : |
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Exports : |
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Products : |
Auto Components |
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Countries : |
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Terms : |
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Selling : |
L/C, Cash, Credit (30-60-90 Days) |
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Purchasing : |
Cash, Credit (30-60-90 Days) |
GENERAL INFORMATION
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Customers : |
Export:
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No. of Employees : |
350 Approximately |
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Bankers : |
IDBI Bank Limited, |
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Facilities : |
Cash Credit Rs. 421.000 millions (IDBI Bank Limited) Rs. In Millions
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Deloitte Haskins and Sells Chartered Accountant |
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Address : |
12, |
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Tel. No.: |
91-22-66679000 |
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Fax No.: |
91-22-66679025 |
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Fellow Subsidiaries: |
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Holding Company : |
Mahindra and Mahindra Limited, Mumbai CIN No.: L65990MH1945PLC004558 |
CAPITAL STRUCTURE
AS on 26.07.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
15000000 |
Equity Shares |
Rs. 10 each |
Rs.150.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
7556900 |
Equity Shares (Out of the above
4,030,806 equity shares of Rs. 10 each, fully paid up, are held by Mahindra
and Mahindra Limited the holding company.) |
Rs. 10 each |
Rs.75.569 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
75.569 |
75.569 |
75.569 |
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|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
207.248 |
198.401 |
181.031 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
282.817 |
273.970 |
256.600 |
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LOAN FUNDS |
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1] Secured Loans |
233.706 |
260.666 |
278.228 |
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2] Unsecured Loans |
54.697 |
68.181 |
81.817 |
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TOTAL BORROWING |
288.403 |
328.847 |
360.045 |
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DEFERRED TAX LIABILITIES |
18.585 |
20.533 |
9.089 |
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TOTAL |
589.805 |
623.350 |
625.734 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
337.732 |
361.271 |
383.386 |
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Capital work-in-progress |
9.283 |
13.589 |
32.653 |
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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 |
162.644
|
150.266 |
156.213 |
|
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Sundry Debtors |
147.889
|
160.344 |
158.549 |
|
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Cash & Bank Balances |
2.732
|
2.287 |
1.910 |
|
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Other Current Assets |
0.000 |
0.000 |
0.000 |
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|
Loans & Advances |
55.908
|
66.832 |
67.724 |
|
Total
Current Assets |
369.173
|
379.729 |
384.396 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
118.769
|
120.275 |
172.773 |
|
|
Other Current Liabilities |
0.000 |
0.000 |
0.000 |
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|
Provisions |
7.614
|
10.964 |
1.928 |
|
Total
Current Liabilities |
126.383
|
131.239 |
174.701 |
|
|
Net Current Assets |
242.790
|
248.490 |
209.695 |
|
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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|
|
|
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TOTAL |
589.805 |
623.350 |
625.734 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
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SALES |
|
|
|
|
|
|
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Sales |
727.861 |
722.462 |
616.909 |
|
|
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Other Income |
8.741 |
14.336 |
11.229 |
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TOTAL (A) |
736.602 |
736.798 |
628.138 |
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|
|
|
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Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials |
408.335 |
393.754 |
334.994 |
|
|
|
Personnel |
70.089 |
62.881 |
42.703 |
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|
|
Administrative Expenses |
168.157 |
152.358 |
163.349 |
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TOTAL (B) |
646.581 |
608.993 |
541.046 |
|
|
|
|
|
|
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
90.021 |
127.805 |
87.092 |
|
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|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
24.411 |
35.582 |
30.381 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
65.610 |
92.223 |
56.711 |
|
|
|
|
|
|
|
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|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
50.265 |
49.403 |
41.935 |
|
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|
|
|
|
|
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|
PROFIT BEFORE
TAX (E-F) (G) |
15.345 |
42.820 |
14.776 |
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|
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|
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Less |
TAX (H) |
2.078 |
16.609 |
7.086 |
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|
|
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|
PROFIT AFTER TAX
(G-H) (I) |
13.267 |
26.211 |
7.690 |
|
|
|
|
|
|
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|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
27.536 |
10.166 |
2.476 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
NA |
NA |
NA |
|
|
|
Dividend |
3.778 |
7.556 |
NA |
|
|
|
Tax on Dividend |
0.641 |
1.285 |
NA |
|
|
BALANCE CARRIED
TO THE B/S |
36.384 |
27.536 |
10.166 |
|
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|
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|
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|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
119.984 |
105.931 |
34.511 |
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
1.76 |
3.47 |
1.03 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010
|
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
1.80
|
3.55 |
1.22 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
2.10
|
5.92 |
2.39 |
|
|
|
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|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
2.17
|
5.77 |
1.92 |
|
|
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|
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|
Return on Investment (ROI) (PBT/Networth) |
|
0.05
|
0.15 |
0.05 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.53
|
1.75 |
2.11 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.92
|
2.89 |
2.20 |
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITORS
DETAILS
|
Particulars
|
31.03.2010
|
31.03.2009 |
31.03.2008 |
|
|
|
|
|
|
Total outstanding Dues of Micro ,Small and
Meduim Enterprises |
7.911
|
24.262 |
3.191 |
|
Total outstanding Dues of creditors other than micro and small enterprises |
110.858
|
96.013 |
114.846 |
|
Inland Outwards and Drawer bill
Discounting with IDBI Bank |
0.000
|
0.000 |
54.736 |
|
Sundry
Creditors |
118.769
|
120.275 |
172.773 |
* There are no amounts due and outstanding to be credited to
the Investor Education and Protection Fund.
CHANGE OF NAME
During the year under review, the name of the Company was changed from Mahindra
SAR Transmission Private Limited to Mahindra Gears and Transmissions Private
Limited with effect from 6th May, 2009.
REVIEW OF
OPERATIONS
The Company registered a turnover of Rs.736.600 millions during the year
under review as compared to Rs. 736.800 millions in the previous year. In terms
of number of gears sold during the year, the Company has sold 2.408 millions as
compared to 2.094 millions gears in the previous year, an increase of 14%.
However, with steel prices going down, the sales value has remained the same
(sales value being a function of product mix and steel prices). Exports have
grown from Rs.105.900 millions to Rs.120.000 millions i.e. an increase of
around 13% as compared to exports of previous year. The main contribution in
exports was due to improved realization from
During the year under review, the Company invested in R&D /
capability up-gradation and in a WENZEL make Gear Tester aggregating around
Rs.11.200 millions. This investment will help your Company in augmenting its
business further.
Gear business
growth plans:
Due to slowdown in
NOTE:
Registered office of the company has been shifted from 50-E Bhaktinagar
Industrial Estate
TRADE REFERENCE:
- Lister Petter
(
- Metal
- New
- Global
FIXED ASSETS:
- Land Free
Hold
- Building
- Plant and
Machinery
- Furniture and
Fixture
- Vehicles
- Electric
Fittings
- Computers
- Office
Equipments
FORM 8
|
Corporate
identity number of the company |
U29130MH2004PTC168150 |
|
Name of the
company |
MAHINDRA GEARS AND TRANSMISSIONS PRIVATE LIMITED |
|
Address of the
registered office or of the principal place of business in |
|
|
This form is for |
Modification of
charge |
|
Type of charge |
Immovable property
Book debts Movable property
(not being pledge) Floating charge |
|
Particular of
charge holder |
IDBI Bank Limited, Email: mirtunjay.kumar@idbi.co.in
|
|
Nature of
instrument creating charge |
Extension for
Memorandum of deposit of title deeds dated 10th August, 2010 Supplementary
deed of hypothecation dated 10th August, 2010 |
|
Date of
instrument Creating the charge |
10.08.2010 |
|
Amount secured by
the charge |
Rs. 421.091
millions |
|
Brief of the
principal terms an conditions and extent and operation of the charge |
Terms of repayment Term Loan of Rs.
62.500 millions, 53.000 millions, Term Loan of Rs. 57.000 millions , Term
Loan of Rs. 40.000 millions and Term Loan of Rs. 90.000 millions is reviewed
on existing terms. Other Facility
are valid for 12 Months and will be renewed after that. Extent and operation of the charge 100% in favour of
charge holder. |
|
Date of
instrument modifying the charge |
15.09.2009 |
|
Particulars of
the present modification |
Credit facility
of Rs. 371.089 millions has been revised to Rs. 421.091 millions w.e.f.
10/08/2010 as per the sanction letter attached. |
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.45.59 |
|
|
1 |
Rs.72.31 |
|
Euro |
1 |
Rs.60.73 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
45 |
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.