MIRA
INFORM REPORT
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Report Date : |
31.03.2011 |
IDENTIFICATION DETAILS
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Name : |
MAHINDRA HINODAY INDUSTRIES LIMITED (w.e.f. 18.11.2010) |
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Formerly Known
As : |
MAHINDRA CASTINGS 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 : |
30.08.2007 |
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Com. Reg. No.: |
11-173636 |
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CIN No.: [Company Identification
No.] |
U27100MH2007PLC173636 |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business
: |
Manufacturer of Magnets, Serrites and Foundaries. |
RATING & COMMENTS
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MIRA’s Rating : |
B (31) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 4700000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is a part of Mahindra and Mahindra Group, In view of strong holding, 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 |
LOCATIONS
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Registered Office/ Factory : |
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Tel. No.: |
91-20-27120811/27128592 |
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Fax No.: |
91-2027128592 |
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E-Mail : |
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Website : |
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Area : |
8 acres |
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Location : |
Leased |
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Factory: |
Gat no. 318, Gaon Urse, Taluka Maval, Pune, |
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Correspondence Address: |
Bhosari Industrial Estate, Pune-411026, |
DIRECTORS
AS ON 10.08.2010
|
Name : |
Mr. Hemant Luthra |
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Designation : |
Chairman |
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Address : |
Breach Candy Garden, Flat No.6, 2nd Floor, |
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Date of Birth/Age : |
18.04.1949 |
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Date of Appointment : |
30.08.2007 |
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Name : |
Mr. Rajan Wadhera |
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Designation : |
Director |
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Address : |
1203, |
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Date of Birth/Age : |
10.07.1956 |
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Date of Appointment : |
30.08.2007 |
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Name : |
Mr. Zhooben Dossabhoy Bhiwandiwala |
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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 : |
22.01.2008 |
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Name : |
Mr. Sanjay Arte |
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Designation : |
Director |
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Address : |
501, Ashoka-1, 15th road, Khar (West), Mumbai-400 052, |
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Date of Birth/Age : |
05.12.1958 |
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Date of Appointment : |
22.01.2008 |
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Name : |
Mr. Vikram Nirula |
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Designation : |
Director |
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Address : |
704, Gypsy Rose, Shastri Nagar, Ajmera Complex, Andheri (West),
Mumbai-400 053, |
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Date of Birth/Age : |
28.08.1972 |
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Date of Appointment : |
22.01.2008 |
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Name : |
Mr. Ajit Prabhakar Lele |
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Designation : |
Managing Director |
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Address : |
Building ‘L, ‘ Flat No. 11, Suyog Nagar, Co-Operative,
Behind Shivaji Housing Society, Pune-411016, |
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Date of Birth/Age : |
04.09.1950 |
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Date of Appointment : |
29.01.2009 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 10.08.2010
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Names of Shareholders |
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No. of Shares |
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Mahindra and Mahindra Limited, |
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21440052 |
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IVF Trustee Company Private Limited, |
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11544640 |
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Gurjar Ravindra Gangadhar |
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2250 |
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Tilloo Sudheer Bhaskar |
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15000 |
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Kulkarni Shrikant Keshav |
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300 |
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Saraf Arvind Madhukar |
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2250 |
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Kulkarni Dattatraya Dinkar |
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300 |
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Phatak Vishnu Mahadeo |
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300 |
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Gandhi Kanhailalal Dwarkads |
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300 |
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Lele Ajit Prabhakar |
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2250 |
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Kulkarni Dileep Pandurang |
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300 |
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V. Ranganathan |
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300 |
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Nene Arvind Bhalchandra |
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300 |
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Sulakhe Ashok Vishwanath |
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300 |
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Rahane Naresh Vasant |
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300 |
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K. Gangadharan |
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2250 |
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Khekale Sharad Raojipant |
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300 |
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Ds Parimal Nibarancha |
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300 |
AS ON 10.08.2010
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Equity Share Breakup |
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Percentage of Holding |
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Category |
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Bodies
corporate |
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99.90 |
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Directors
or relatives of directors |
|
0.01 |
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Other
top fifty shareholders |
|
0.09 |
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Total |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Magnets, Serrites and Foundaries. |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2010)
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Magnetic Product Division |
(Per Annum) |
10000 Tons |
5400 Tons |
4462 |
|
Foundry Division |
(Per Annum) |
57600 Tons |
40000 Tons |
-- |
GENERAL INFORMATION
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Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
B K Khare and Company Chartered Accountant |
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Address : |
706/708, Sahrda Chambers, New Marine Lines, Mumbai-400020,
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Tel. No.: |
91-22-22000607/ 7318/ 6360/ 56315835/ 36 |
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Fax No.: |
91-22-22003476 |
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E-Mail : |
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Holding Company: |
Mahindra and Mahindra Limited (L65990MH1945PLC004558) |
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Fellow Subsidiaries |
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CAPITAL STRUCTURE
AS ON 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
57000000 |
Equity Shares |
Rs.10/- each |
Rs.570.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
33016717 |
Equity Shares |
Rs.10/- each |
Rs.330.167
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
330.167 |
254.683 |
253.655 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1340.954 |
1031.156 |
1428.110 |
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4] (Accumulated Losses) |
(495.101) |
(416.731) |
0.000 |
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NETWORTH |
1176.020 |
869.108 |
1681.765 |
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LOAN FUNDS |
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1] Secured Loans |
661.199 |
958.331 |
0.000 |
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2] Unsecured Loans |
463.634 |
463.591 |
0.000 |
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TOTAL BORROWING |
1124.833 |
1421.922 |
0.000 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
2300.853 |
2291.030 |
1681.765 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1908.305 |
1976.513 |
0.000 |
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Capital work-in-progress |
38.668 |
54.293 |
17.062 |
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INVESTMENT |
40.025 |
0.025 |
1168.683 |
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DEFERREX TAX ASSETS |
135.226 |
120.790 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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|
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Inventories |
353.506
|
337.572 |
0.000 |
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Sundry Debtors |
445.331
|
344.897 |
0.000 |
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Cash & Bank Balances |
12.718
|
13.986 |
411.265 |
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Other Current Assets |
0.000
|
0.000 |
9.258 |
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Loans & Advances |
187.370
|
219.977 |
92.744 |
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Total
Current Assets |
998.925
|
916.432 |
513.267 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Sundry Creditors |
424.274
|
305.577 |
11.744 |
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Other Current Liabilities |
181.928
|
281.171 |
0.809 |
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Provisions |
214.094
|
190.275 |
4.694 |
|
Total
Current Liabilities |
820.296
|
777.023 |
17.247 |
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Net Current Assets |
178.629
|
139.409 |
496.020 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
2300.853 |
2291.030 |
1681.765 |
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PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SALES |
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Income |
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Other Income |
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TOTAL (A) |
2993.340 |
2633.318 |
19.924 |
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Less |
EXPENSES |
|
|
|
|
|
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Consumption Material |
1417.393 |
1643.267 |
|
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Manufacturing and Other Expenses |
1390.036 |
1283.579 |
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Prior Period Adjustment |
4.083 |
3.315 |
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|
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TOTAL (B) |
2811.512 |
2930.161 |
3.541 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
181.828 |
(296.843) |
NA |
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|
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|
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|
Less |
FINANCIAL
EXPENSES (D) |
133.639 |
219.566 |
NA |
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|
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
48.189 |
(516.409) |
NA |
|
|
|
|
|
|
|
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|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
140.995 |
131.613 |
NA |
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|
PROFIT BEFORE
TAX (E-F) (G) |
(92.806) |
(648.022) |
16.383 |
|
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Less |
TAX (H) |
(14.436) |
(218.443) |
4.534 |
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PROFIT AFTER TAX
(G-H) (I) |
(78.370) |
(428.579) |
11.849 |
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Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
0.000 |
0.000 |
NA |
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BALANCE CARRIED
TO THE B/S |
(78.370) |
(428.579) |
NA |
|
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EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
559.814 |
638.178 |
NA |
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IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
76.979 |
128.681 |
NA |
|
|
|
Stores & Spares |
21.479 |
32.791 |
NA |
|
|
|
Capital Goods |
34.805 |
4.771 |
NA |
|
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TOTAL IMPORTS |
133.263 |
166.243 |
NA |
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Earnings Per
Share (Rs.) |
(2.37) |
(1.68) |
0.71 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
(2.62)
|
(16.27) |
59.47 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
(3.19)
|
(22.40) |
3.19 |
|
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Return on Investment (ROI) (PBT/Networth) |
|
(0.07)
|
(0.75) |
0.01 |
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Debt Equity Ratio (Total Liability/Networth) |
|
1.65
|
2.53 |
0.01 |
|
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|
Current Ratio (Current Asset/Current Liability) |
|
1.22
|
1.18 |
29.76 |
LOCAL AGENCY FURTHER INFORMATION
Performance
Review:
During the year, two exceptional debits viz., the pre-operative expenses
of the Blocks and Heads Foundry Project of Rs. 40.69 million and future
liability of the Employees' Early Separation Scheme launched during the year of
Rs. 49.91 million were taken to the Profit and Loss account. Before these two
debits, both the divisions viz. Foundry Division (FD) and Magnetic Products
Division (MPD) of the Company showed remarkable improvement and the Company
recorded a marginal PBT of Rs. 1.88 million against a loss of Rs. 644.71
million in the previous year. This was achieved as a result of various measures
taken by the Company, namely:
- Development
of more than 200 new casting parts in Foundry Division (FD) with existing
and new customers.
- Development
of new and innovative product lines in Magnetic Products Division (MPD)
with potential to more than double the division sales and triple the
EBIDTA over the next few years.
- Reduction in
rejections from 11% to 6.5%.
- Organisational
change in casting business to focus on business development and lean
manufacturing.
Cash Control:
Focused actions on receivables, brought down the ratio in terms of
'number of days sales outstanding' in both the businesses by 28%. Likewise
corrective actions on inventory led to no. of days holding coming down for
Finished Goods by 50%, Work in Process by 33% and on Raw Materials by 17%.
These improvements led to a positive Free Cash Flow for the year.
Blocks and Heads
Foundry Project:
Significant new capacities have already come up in the Blocks and Heads
space and no capacity constraint is seen in the near future. At the same time
significant opportunities are available to grow in the existing SG Iron
business. Therefore, this project was shelved and the 'Expenditure Pending
Allocation – B and H Project' of Rs. 40.69 million was charged to the Profit
and Loss Account for the year.
Market Scenario:
All major sectors, in which the Company is serving, have grown
significantly in the year 2009-10 in
Bankers Charges
Report as per Registry
|
This form is for |
Creation of
charge |
|
Corporate
identity number of the company |
U27100MH2007PLC173636 |
|
Name of the
company |
Mahindra Hinoday
Industries Limited |
|
Address of the registered
office or of the principal place of
business in |
|
|
Type of charge |
Movable Property |
|
Particular of
charge holder |
IDBI Bank Limited, |
|
Email |
|
|
Nature of
description of the instrument creating or modifying the charge |
Deed of Hypothecation
dated 28th September, 2010. |
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Date of
instrument Creating the charge |
28.09.2010 |
|
Amount secured by
the charge |
Rs.700.000
Millions |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest BBR (Base rate) +
2% fully floating (Base rate as may be declared by the Bank) Terms of
Repayment In 42 equal
monthly installments Margin Margin - 23.35% Extent and
Operation of the charge The charge
operate as continuing security due repayment by the Company to IDBI Bank
Limited of Interest, Further Interest, Liquidated dameges, repayment of Loans
and all other monies payable in terms of Loan Agreement dated 28/09/2010
entered between IDBI Bank and the
Company. |
|
Short particulars
of the property charged |
Whole of the
fixed assets both present and future
except those specifically charged to SBI. |
Fixed Assets:
- Land Leasehold
- Land Free Hold
- Building
- Plant and Machinery
- Electrical Equipment
- Furniture
- Office Equipment
- Computer
- Vehicles
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. |
|
|
1 |
Rs. |
|
Euro |
1 |
Rs. |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
|
|
PAID-UP CAPITAL |
1~10 |
|
|
OPERATING SCALE |
1~10 |
|
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FINANCIAL CONDITION |
|
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|
--BUSINESS SCALE |
1~10 |
|
|
--PROFITABILIRY |
1~10 |
|
|
--LIQUIDITY |
1~10 |
|
|
--LEVERAGE |
1~10 |
|
|
--RESERVES |
1~10 |
|
|
--CREDIT LINES |
1~10 |
|
|
--MARGINS |
-5~5 |
|
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DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
|
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--LITIGATION |
YES/NO |
|
|
--OTHER ADVERSE INFORMATION |
YES/NO |
|
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
|
|
--EXPORT ACTIVITIES |
YES/NO |
|
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--AFFILIATION |
YES/NO |
|
|
--LISTED |
YES/NO |
|
|
--OTHER MERIT FACTORS |
YES/NO |
|
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TOTAL |
|
|
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.