MIRA
INFORM REPORT
|
Report Date : |
19.07.2011 |
IDENTIFICATION DETAILS
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Name : |
MAHINDRA TWO WHEELERS 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 : |
05.08.2008 |
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Com. Reg. No.: |
11-185462 |
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Capital Investment
/ Paid-up Capital : |
Rs1475.000
Millions |
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CIN No.: [Company Identification
No.] |
U35911MH2008PLC185462 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMM34881A |
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PAN No.: [Permanent Account No.] |
AAFCM6870J |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business
: |
Manufacturer of Two Wheelers |
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No. of Employees
: |
125 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (45) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 1100000 |
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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 a part of Mahindra Group. It is a company having
satisfactory track. Trade relations are reported as fair. Business is active.
Payments are reported to be usually correct and as per commitments. In view of strong holding company, 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.
INFORMATION PARTED BY
|
Name : |
Mr. Santosh Katre |
|
Designation : |
Head of Accounts |
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Contact No.: |
91-9823300822 |
|
Date : |
19.07.2011 |
LOCATIONS
|
Registered Office : |
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Tel. No.: |
91-22-24931441/ 24961441/24916833 |
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Fax No.: |
91-22-24983696 / 24900833 |
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E-Mail : |
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Website : |
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Area : |
10000 Sq.ft. |
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Location : |
Owned |
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Factory 1 : |
D-1, Block, Plot No. 18/2, M.I.D.C, Chinchwad, Pune - 411019, |
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Tel. No.: |
91-20-27602222 |
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Fax No.: |
91-20-27470562 |
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E-Mail : |
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Factory 2 : |
Plot No.2, Industrial Area 1, Pitampur Dhar, Pithampur-454775, |
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Tel. No.: |
91-7292-253009/100 |
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Fax No.: |
91-7292-253087 |
DIRECTORS
As On: 23.07.2010
|
Name : |
Mr. Anoop Krishna Mathur |
|
Designation : |
Additional Director |
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Address : |
Flat No. 13, Om Ratan 70/71, |
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Date of Birth/Age : |
22.10.1947 |
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Date of Appointment : |
29.09.2008 |
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Name : |
Mr. Parag C Shah |
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Designation : |
Additional Director |
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Address : |
7 Kailas, |
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Date of Birth/Age : |
25.11.1975 |
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Date of Appointment : |
29.09.2008 |
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Name : |
Mr. Pawan Kumar Goenka |
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Designation : |
Director |
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Address : |
Flat No. 602, 9 JVPD, |
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Date of Birth/Age : |
23.09.1954 |
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Date of Appointment : |
29.09.2008 |
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Name : |
Mr. Anand G Mahindra |
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Designation : |
Chairman |
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Address : |
Goolestan, 65, |
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Date of Birth/Age : |
01.05.1955 |
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Date of Appointment : |
12.12.2008 |
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Name : |
Mr. Zhooben Dossabhoy |
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Designation : |
Director |
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Address : |
S-13, Cusrow Baug, |
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Date of Birth/Age : |
09.12.1959 |
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Date of Appointment : |
12.12.2008 |
KEY EXECUTIVES
|
Name : |
Mr. Santosh Katre |
|
Designation : |
Head of Accounts |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 23.07.2010
|
Names of Shareholders |
|
No. of Shares |
|
Mahindra and Mahindra Limited, |
|
117999994 |
|
Mahindra and Mahindra Limited Jointly with Mr. Narayan Shankar |
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1 |
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Mahindra and Mahindra Limited Jointly with Mr. S Venkatraman |
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1 |
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Mahindra and Mahindra Limited Jointly with Mr. K Chandrasekhar |
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1 |
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Mahindra and Mahindra Limited Jointly with Mr. V S Parthasarathy |
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1 |
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Mahindra and Mahindra Limited Jointly with Mr. Anoop Mathur |
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1 |
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Mahindra and Mahindra Limited Jointly with Mr. V R Krishanan |
|
1 |
|
Kinetic Motors Company Limited, |
|
29500000 |
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|
|
|
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Total |
|
147500000 |
As On 30.09.2010
|
Category |
Percentage |
|
Bodies corporate |
100.00 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Two Wheelers. |
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Products : |
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Exports : |
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Products : |
Two Wheelers |
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Countries : |
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Imports : |
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Products : |
Components |
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Countries : |
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Terms : |
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Selling : |
L/C / Cash / Credit |
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Purchasing : |
Advance |
PRODUCTION STATUS (As on 31.03.2010)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Two Wheelers Scooters, Motor Cycles and Mopeds |
|
|
|
|
|
Manufactured |
Nos. |
NA |
175000 |
69,775 |
|
Traded |
Nos. |
NA |
NA |
NA |
|
Spare Parts and Others ** |
(See note 2) |
NA |
NA |
(See note 6) |
Notes:
1) Installed capacity is as certified by the management and relied on by the auditors as this is a technical matter.
2) Spare parts are manufactured out of the capacity for scooters, motorcycles and mopeds.
3) * It is not practicable to furnish quantitative information in view of considerable number of items diverse in size and nature.
4) ** Includes own manufactured components sold as spare parts.
5) Sales of manufactured vehicles exclude2 (31st march 2009 - 4) free of cost (FOC) vehicles.
6) The Company has also manufactured and sold 97214 Nos. components as spares. (31st March, 2009 – 7225 Nos.)
7) Production of vehicles include 292 vehicles returned to factory for rework and 20 vehicles capitalized during the year.
GENERAL INFORMATION
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Customers : |
Dealers |
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No. of Employees : |
125 (Approximately) |
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Bankers : |
ING Vysya Bank Limited Plot C-12, “G” Block, 8th Floor, BKC, Bandra (East),
Mumbai-400051, |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Deloittte Haskins and Sells Chartered Accountant |
|
Address : |
12, |
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Holding Company
: |
CIN No : L65990MH1954PLC004558 Line of Business: Manufacturer of General
Purpose utility vehicles. |
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Fellow
Subsidiary : |
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CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
150000000 |
Equity Shares |
Rs.10/- each |
Rs.1500.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
147500000 |
Equity Shares |
Rs.10/-each |
Rs1475.000
Millions |
Notes:
- Of the above shares, 118,000,000 shares are held by Mahindra and Mahindra Limited, the holding company.
- Of the above shares, 29,500,000 shares have been issued to
Kinetic Motor Company Limited pursuant to an agreement for sale and
purchase of assets without payment having been received in cash.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
1475.000 |
1475.000 |
|
|
2] Share Application Money |
|
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
|
0.000 |
0.000 |
|
|
4] (Accumulated Losses) |
|
(1194.146) |
(225.040) |
|
|
NETWORTH |
|
280.854 |
1249.960 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
0.000 |
0.000 |
|
|
2] Unsecured Loans |
|
1210.000 |
350.000 |
|
|
TOTAL BORROWING |
|
1210.000 |
350.000 |
|
|
DEFERRED TAX LIABILITIES |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
1490.854 |
1599.960 |
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|
|
|
|
|
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APPLICATION OF FUNDS |
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|
|
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|
|
|
|
|
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FIXED ASSETS [Net Block] |
|
1199.775 |
1316.296 |
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Capital work-in-progress |
|
228.539 |
80.000 |
|
|
|
|
|
|
|
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INVESTMENT |
|
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
|
0.000 |
0.000 |
|
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
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Inventories |
|
472.614 |
256.937
|
|
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Sundry Debtors |
|
71.925 |
17.428
|
|
|
Cash & Bank Balances |
|
127.630 |
14.726
|
|
|
Other Current Assets |
|
0.000 |
0.000
|
|
|
Loans & Advances |
|
232.485 |
232.132
|
|
Total
Current Assets |
|
904.654 |
521.223
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
744.849 |
262.500
|
|
|
Other Current Liabilities |
|
62.076 |
2.633
|
|
|
Provisions |
|
35.189 |
52.426
|
|
Total
Current Liabilities |
|
842.114 |
317.559
|
|
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Net Current Assets |
|
62.540 |
203.664
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
1490.854 |
1599.960 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
|
31.03.2010 |
05.08.2008 To 31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
|
2370.352 |
165.300 |
|
|
|
Other Income |
|
5.713 |
1.726 |
|
|
|
TOTAL (A) |
|
2376.065 |
167.026 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw Material, Work in progress and Finished Goods |
|
2025.220 |
117.524 |
|
|
|
Employee Cost |
|
269.346 |
81.041 |
|
|
|
Other Expenses |
|
797.507 |
125.748 |
|
|
|
Amount Capitalised |
|
(0.792) |
0.000 |
|
|
|
TOTAL (B) |
|
3091.281 |
324.313 |
|
|
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|
|
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PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
|
(715.216) |
(157.287) |
|
|
|
|
|
|
|
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|
Less |
FINANCIAL
EXPENSES (D) |
|
87.186 |
7.086 |
|
|
|
|
|
|
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
|
(802.402) |
(164.373) |
|
|
|
|
|
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|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
|
166.704 |
60.268 |
|
|
|
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|
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|
PROFIT BEFORE
TAX (E-F) (G) |
|
(969.106) |
(224.641) |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
|
0.000 |
0.399 |
|
|
|
|
|
|
|
|
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|
PROFIT AFTER TAX
(G-I) (J) |
|
(969.106) |
(225.040) |
|
|
|
|
|
|
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EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Sales of goods abroad which were purchased abroad |
|
173.145 |
67.750 |
|
|
|
Export Sales |
|
13.083 |
0.000 |
|
|
|
Freight Charges |
|
5.194 |
3.750 |
|
|
TOTAL EARNINGS |
|
191.422 |
71.500 |
|
|
|
|
|
|
|
|
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IMPORTS |
|
|
|
|
|
|
|
Components and Spare Parts |
|
363.980 |
23.165 |
|
|
|
Capital Goods |
|
8.456 |
|
|
|
TOTAL IMPORTS |
|
372.396 |
23.165 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
(6.57) |
(2.74) |
|
KEY RATIOS
|
PARTICULARS |
|
|
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
|
(40.79) |
(134.73) |
|
|
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|
|
Net Profit Margin (PBT/Sales) |
(%) |
|
(40.88) |
(135.89) |
|
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|
Return on Total Assets (PBT/Total Assets} |
(%) |
|
(67.66) |
(12.22) |
|
|
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Return on Investment (ROI) (PBT/Networth) |
|
|
(3.45) |
(0.17) |
|
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|
|
|
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|
Debt Equity Ratio (Total Liability/Networth) |
|
|
7.31 |
0.53 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
|
1.74 |
1.64 |
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITORS DETAILS:
|
Particulars |
|
Rs. In Millions 31.03.2010 |
Rs. In Millions 31.03.2009 |
|
Total outstanding dues of Micro Enterprises and
small Enterprises |
|
75.885
|
6.706 |
|
Total outstanding dues of creditors other
than Micro Enterprises and Small Enterprises |
|
668.964
|
255.793 |
|
|
|
|
|
|
Total |
|
744.849
|
262.500 |
OPERATIONS
During the year, the
Company recorded total sales of 71,600 scooters. The Company has launched two
new Power Scooters "Mahindra Rodeo" and "Mahindra Duro" in
September 2009. The Company's new scooters are receiving encouraging response
from customers. "Mahindra Duro" has been adjudged as "Scooter of
the year 2010" by NDTV Profit Car and Bike
OUTLOOK FOR THE
CURRENT YEAR
During the year,
the Company's focus on increasing the dealership network, aggressive marketing
through television and other media, developing and launching new products has
started yielding results. The Company will continue to invest significantly for
developing and launching new products to drive its growth efforts in the
challenging environment. The Directors expect to increase the Company's business
potential by continuous monitoring, timely action and implementation of
innovative measures.
Form 8:
|
Corporate
identity number of the company |
U35911MH2008PLC185462 |
|
Name of the
company |
MAHINDRA TWO
WHEELERS LIMITED |
|
Address of the registered
office or of the principal place of
business in |
Mumbai – 400018, |
|
This form is for |
Creation of
charge |
|
Type of charge |
Book Debts Others |
|
Particular of
charge holder |
ING Vysya Bank Limited Plot C-12, “G” Block, 8th Floor, BKC, Bandra (East),
Mumbai-400051, giridharvrn@ingvysybank.com |
|
Nature of
instrument creating charge |
General
Hypothecation Agreement dated 23.09.2010 |
|
Date of
instrument Creating the charge |
23/09/2010 |
|
Amount secured by
the charge |
Rs.250.000
Millions |
|
Brief of the
principal terms an conditions and extent and operation of the charge |
Rate of Interest Mutually agreed rate
at the time of drawdown as per sanction letter dated 22nd July
2010. Terms of Repayment Maximum Tenure of
WCDL – 365 days from the date od disbursement, as per the sanction Letter
dated 22nd July, 2010. Margin 25% Margin on stock
and receivables up to 180 days to be considered. As per sanction letter dated
22nd July, 2010. Extent and Operation of the charge First Pari pasu
charge over stocks and receivables present and future. |
|
Short particulars
of the property charged |
Stocks Book Debts Other Current
Assets |
FIXED ASSETS
- Buildings
- Plant and Machinery
- Furniture and Fixtures
- Vehicles
- Technical Knowhow
- Brand
- Product Development Expenditure
- Software
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 exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l Anti-Money
Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws, regulations
or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.57 |
|
|
1 |
Rs.71.75 |
|
Euro |
1 |
Rs.62.60 |
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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--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.