MIRA
INFORM REPORT
|
Report Date : |
23.11.2011 |
IDENTIFICATION DETAILS
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Name : |
MAHINDRA FORGINGS LIMITED (w.e.f. 31.11.2006) |
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Formerly Known
As : |
MAHINDRA AUTOMOTIVE STEELS LIMITED |
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Registered
Office : |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
13.08.1999 |
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Com. Reg. No.: |
11-121285 |
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Capital
Investment / Paid-up Capital : |
Rs.878.698 Millions |
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CIN No.: [Company Identification
No.] |
L27100MH1999PLC121285 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMM26971A |
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PAN No.: [Permanent Account No.] |
AABCM6632J |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacturer of Forging Parts and Axle Beam. |
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No. of Employees : |
589 (Approximately) |
RATING & COMMENTS
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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 32000000 |
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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 Mahindra Group Company. It is a well established and a
reputed company having satisfactory track. There appears some accumulated
losses recorded by the company. However trade relations are reported as fair.
Business is active. Payments are reported to be usually correct and as per
commitments. In view of strong promoters 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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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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 : |
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Tel. No.: |
91-22-24901441 |
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Fax No.: |
91-22-24915890 |
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E-Mail : |
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Website : |
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Factory : |
Gat No. 856 to 860, |
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Tel. No.: |
91-2135-252677/252886 Ext. 307 |
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Fax No.: |
91-2135-252277 |
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. Hemant Luthra |
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Designation : |
Chairman |
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Name : |
Mr. Deepak Dheer |
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Designation : |
Managing Director |
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Name : |
Mr. Zhooben Bhiwandiwala |
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Designation : |
Director |
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Name : |
Mr. V. K. Chanana |
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Designation : |
Director |
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Name : |
Mr. Mohit Burman |
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Designation : |
Director |
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Name : |
Mr. Fali P. Mama |
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Designation : |
Director |
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Name : |
Mr. Nikhilesh Panchal |
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Designation : |
Director |
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Name : |
Mr. Harald Korte |
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Designation : |
Director |
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Name : |
Mr. Oliver Scholz |
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Designation : |
Director |
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Name : |
Mr. Daljit Mirchandani |
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Designation : |
Director |
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Name : |
Mr. Piyush Mankad |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Krishnan Shankar |
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Designation : |
Company Secretary and Head - Legal |
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COMMITTEES OF
THE BOARD |
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Audit Committee
: |
Mr. V. K. Chanana Mr. Mohit Burman Mr. Zhooben Bhiwandiwala Mr. Nikhilesh Panchal Mr. Fali P. Mama Mr. Daljit Mirchandani |
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Remuneration/
Compensation Committee : |
Mr. Mohit Burman Mr. Hemant Luthra Mr. V. K. Chanana Mr. Nikhilesh Panchal Mr. Daljit Mirchandani |
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Share Transfer
and Shareholders’/ Investors’ Grievance
Committee : |
Mr. Daljit Mirchandani Mr. V. K. Chanana Mr. Fali P. Mama |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2011
|
Category of Shareholder |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
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|
48825609 |
52.97 |
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|
48825609 |
52.97 |
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Total shareholding of Promoter and Promoter Group (A) |
48825609 |
52.97 |
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(B) Public Shareholding |
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|
8919966 |
9.68 |
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|
68270 |
0.07 |
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|
23949 |
0.03 |
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1014914 |
1.10 |
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10027099 |
10.88 |
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14512754 |
15.75 |
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5431758 |
5.89 |
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4445492 |
4.82 |
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8926344 |
9.68 |
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|
325587 |
0.35 |
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|
18217 |
0.02 |
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|
8557290 |
9.28 |
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|
10500 |
0.01 |
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|
14750 |
0.02 |
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|
33316348 |
36.15 |
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Total Public shareholding (B) |
43343447 |
47.03 |
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Total (A)+(B) |
92169056 |
100.00 |
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(C) Shares held by Custodians and against which Depository Receipts
have been issued |
-- |
-- |
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-- |
-- |
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-- |
-- |
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-- |
-- |
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Total (A)+(B)+(C) |
92169056 |
-- |
(1) Indian
Bodies Corporate
Individual shareholders holding nominal
share capital up to Rs. 0.100 MillionBUSINESS DETAILS
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Line of Business : |
Manufacturer of Forging Parts and Axle Beam. |
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Products : |
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PRODUCTION STATUS: (As on 31.03.2011)
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Particulars |
31st
March, 2010 |
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Forging |
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Unit |
M.T |
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Installed Capacity (3 shifts basis) |
85545 |
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Production |
31794 |
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GENERAL INFORMATION
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No. of Employees : |
589 (Approximately) |
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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 Accountants |
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Address : |
706/ 708, Sharda Chambers, Mumbai – 400 020, |
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Holding Company
: |
Mahindra and Mahindra Limited |
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Subsidiary
Companies : |
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Fellow
Subsidiaries : |
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CAPITAL STRUCTURE
As on 02.08.2011
Authorised Capital : Rs.1679.426
Millions
Issued, Subscribed & Paid-up Capital : Rs.921.691 Millions
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
122000000 |
Equity shares |
Rs.10/- each |
Rs.1220.000 millions |
|
14820206 |
4% Non Cumulative Redeemable Non Convertible Preference Shares |
Rs.31/- each |
Rs.459.426 millions |
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Total
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|
Rs.1679.426
millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
87869786 |
Equity shares |
Rs.10/- each |
Rs.878.698
Millions |
a) Of the above shares, 5,53,67,356 are allotted as fully paid up
pursuant to a contract without payments being received in cash
b) 1,62,41,300 equity shares issued to Qualified Institutional Buyers
c) 30,00,000 equity shares issued against conversion of Preferential
Warrants issued to Mahindra and Mahindra Limited. (Holding Company)
d) 14,750 equity shares issued under the Company’s Employees’ Stock
Option Scheme
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
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|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
878.698 |
878.550 |
685.677 |
|
|
2] Share Application Money received for Warrants |
147.250 |
147.250 |
0.000 |
|
|
3] Employee Stock Options outstanding |
48.022 |
40.192 |
32.306 |
|
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4] Reserves & Surplus |
8263.001 |
8239.205 |
6324.494 |
|
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5] (Accumulated Losses) |
(1311.160) |
(1279.401) |
(332.056) |
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NETWORTH |
8025.811 |
8025.796 |
6710.421 |
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LOAN FUNDS |
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|
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|
1] Secured Loans |
1177.609 |
1278.127 |
1790.318 |
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2] Unsecured Loans |
204.550 |
208.640 |
639.465 |
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TOTAL BORROWING |
1382.159 |
1486.767 |
2429.783 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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|
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|
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TOTAL |
9407.970 |
9512.563 |
9140.204 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1796.294 |
1913.541 |
1929.077 |
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Capital work-in-progress |
479.609 |
352.770 |
461.454 |
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INVESTMENT |
6725.647 |
6972.066 |
6685.586 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
530.781
|
451.118
|
246.192 |
|
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Sundry Debtors |
567.924
|
282.803
|
295.268 |
|
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Cash & Bank Balances |
18.609
|
78.425
|
46.781 |
|
|
Other Current Assets |
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances |
139.873
|
424.557
|
64.972 |
|
Total
Current Assets |
1257.187
|
1236.903
|
653.213 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
722.454
|
703.901
|
410.819 |
|
|
Other Current Liabilities |
99.522
|
224.603
|
148.341 |
|
|
Provisions |
28.791
|
34.213
|
29.966 |
|
Total
Current Liabilities |
850.767
|
962.717
|
589.126 |
|
|
Net Current Assets |
406.420
|
274.186
|
64.087 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
9407.970 |
9512.563 |
9140.204 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
3566.690 |
3002.818 |
2370.954 |
|
|
|
Other Income |
17.686 |
17.815 |
53.610 |
|
|
|
TOTAL (A) |
3584.376 |
3020.633 |
2424.564 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Material Consumption |
2046.263 |
1599.568 |
1503.646 |
|
|
|
Personnel Expenses |
250.762 |
219.795 |
216.836 |
|
|
|
Other Expenses |
955.946 |
725.679 |
589.226 |
|
|
|
Exceptional items |
0.000 |
901.859 |
0.000 |
|
|
|
Prior Period Expenses |
0.000 |
7.104 |
13.279 |
|
|
|
TOTAL (B) |
3252.971 |
3454.005 |
2322.987 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
331.405 |
(433.372) |
101.577 |
|
|
|
|
|
|
|
|
|
Less |
INTEREST &
FINANCIAL EXPENSES (D) |
142.173 |
298.719 |
253.916 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
189.232 |
(732.091) |
(152.339) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
220.991 |
215.079 |
195.351 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
(31.759) |
(947.170) |
(347.690) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
0.000 |
0.175 |
66.319 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
(31.759) |
(947.345) |
(414.009) |
|
|
|
|
|
|
|
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|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(1279.401) |
(332.056) |
(388.162) |
|
|
|
|
|
|
|
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Add |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer from Securities Premium Account |
0.000 |
0.000 |
470.115 |
|
|
BALANCE CARRIED
TO THE B/S |
(1311.160) |
(1279.401) |
(332.056) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Exports (F.O.B. Value) |
92.481 |
65.946 |
84.198 |
|
|
TOTAL EARNINGS |
92.481 |
65.946 |
84.198 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Stores & Spares |
36.870 |
37.673 |
31.581 |
|
|
|
Capital Goods |
35.211 |
66.480 |
164.752 |
|
|
|
Raw Materials |
0.000 |
0.210 |
32.506 |
|
|
TOTAL IMPORTS |
72.081 |
104.363 |
228.839 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
(0.36) |
(13.82) |
(6.04) |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2011 (1st
Quarter) |
30.09.2011 (2nd
Quarter) |
|
Net Sales |
|
951.930 |
1123.190 |
|
Total Expenditure |
|
864.500 |
998.750 |
|
PBIDT (Excl OI) |
|
87.430 |
124.440 |
|
Other Income |
|
1.350 |
6.570 |
|
Operating Profit |
|
88.780 |
131.01 |
|
Interest |
|
38.910 |
31.060 |
|
Exceptional Items |
|
0.000 |
0.000 |
|
PBDT |
|
49.870 |
99.950 |
|
Depreciation |
|
565.460 |
58.500 |
|
Profit Before Tax |
|
(6.590) |
41.450 |
|
Tax |
|
0.000 |
0.000 |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
(6.590) |
41.450 |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
(6.590) |
41.450 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
(0.89)
|
(31.36)
|
(17.08)
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(0.089)
|
(31.54)
|
(14.66)
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(1.04)
|
(30.06)
|
(13.46)
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.00
|
(0.12)
|
(0.05)
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.28 |
0.31
|
0.45 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.48 |
1.28
|
1.11 |
LOCAL AGENCY FURTHER INFORMATION
Financials
During the year, the Company
registered a Total income of Rs.3584.400 Millions as against Rs.3020.600
Millions in the previous year and Profit before Interest, Depreciation,
Exceptional Items and tax of 331.400 Millions as against Rs.475.700 Millions in
the previous year. The net Loss before Exceptional Items, Taxes and prior
period expenses stood at Rs.31.800 Millions. The Total Income of the Company
has grown by 19 % over the previous year.
Operations
During the year, the Company
focused on enhancing operational efficiencies - improving yields, lowering
rejections and enhancing capacity utilisation and are implementing projects to
reduce machine downtime and improve die management. In implementing some of the
above projects, there was an initial increase in costs which was compounded by
operational problems in heat treatment during Financial Year 2010-11. This has
led to inconsistencies in operational performance reflected in quarterly
margins for the Indian operations. In order to give a fillip to these efforts,
the ‘mentorship’ program, which endeavours to improve the Indian operations to
European operational standards, has been strengthened. Joint teams across
The Company’s European operations
have substantially optimised costs and considerable success has been achieved
in reducing the breakeven.
Management
Discussion and Analysis
Company
Overview:
Subject is
a global forging company with plants in
The Company has created a listed
entity that aligns all shareholder interests and makes the structure friendlier
to minority shareholders, allowing them to participate in a global business.
The consolidated entity is well positioned to make decisions on efficient
utilization of resources without any conflict of interests. The present MFL
structure is shown in Figure 2 from which it can be observed that the Promoter
shareholding stands at 50.67 %.
A large part of the revenues of MFL,
In
In
Industry
Outlook and Structure: Better Times Ahead
The global economic downturn seems to be behind us
with growth returning to all major economies of the world. The developed
economies are recovering gradually but the emerging economies are accelerating
ahead. The auto industry is also following a similar pattern - the triad
markets of North America, Western Europe and
Production of heavy trucks
(relevant segment for MFL Europe) recovered in FY11 to ~60-65% of the
pre-crisis levels (Figure 3). Both exports and the domestic market contributed
to the recovery of German heavy truck production. Exports accounted for ~60% of
the 115,954 heavy trucks produced in Germany in the calendar year 2010
increasing by 68% over calendar year 2009. In contrast, new registrations grew
at a slower rate of ~20% in 2010. Data on heavy truck production for Jan-Mar’11
is yet not available but figures of new registrations suggest that the growth
trajectory will be maintained in calendar year 2011 - heavy truck registrations
in the first three months of 2011 increased by ~57% over the corresponding
period in 2010.
With several countries in the
European Union facing fiscal crisis, questions are raised about the
sustainability of German manufacturing revival. They are optimistic about the
industrial economy in
In
The growth trajectory in the Indian auto industry
continued to follow an upward trend in FY11. Compared to FY10, passenger cars
and UV production grew by 27%, LCVs by 29% and M/HCVs by 38%. This comes on top
of similar growth rates seen last year. There was a slight decrease in growth
rates in Q411 with q-o-q growth rates of cars and UVs being 27%, LCVs 17% and
M/HCVs 15%. The hike in fuel prices announced recently is also expected to
contribute to the slowing down of the growth rates. But all segments are still
expected to grow further in FY12 by 10-15%.
The growing domestic auto market is
expected to spur the auto components industry in
Operations:
They have diverse and
complementary manufacturing facilities at ten locations across three countries,
with seven plants in
Their facilities include a range
of press and hammer lines, hot extrusion presses, upsetters, rotary swaging and
friction welding machines. They have presses ranging from 630MT to 12800MT,
hammers ranging from 31.5 to 250KJ, extrusion machines ranging from 630 to
1000MT and horizontal upsetters ranging from 900 to 1600MT. The machine shop
set up supports customer specific requirements and more than a third of the
forged parts are supplied in machined conditions.
The Company’s plants in
The Indian operations have presses ranging from 1000 to
6300MT which can forge parts in the weight range of 0.5 to 50kg. The wide range
of forging presses helps us to provide complementary backup to their customers
many of whom depend on us as a single source supplier. They have capability to
provide crankshafts and steering knuckles in machined condition to their
customers and are in the process of increasing their machining capacity.
The Indian operations continue on their journey to become
world class. The die-shop consisting of CNC, EDM, hydraulic and electric
discharge die shrinking capacities and the design centre equipped with CAD/CAM
facilities have been developed over the years to improve operational
capabilities.
The Indian operations aim to improve rejection levels, yield
and productivity and are implementing projects to reduce machine downtime and
improve die management. Die setup time is sought to be reduced by standardizing
tooling, dies and packing plates, rationalizing components and redesigning dies
and cassettes. Die welding technology has been introduced with help of their
German colleagues. This will help in reducing die cost, increasing die life and
improving die block machining. They also plan to increasingly use hard dies as
against soft dies to increase die life and reduce rejections.
In implementing some of the above
projects, there was an initial increase in costs which was compounded by
operational problems in heat treatment during FY11. This has led to
inconsistencies in operational performance reflected in quarterly margins for
the Indian operations. These problems have been corrected. In order to have a
more structured approach towards operational excellence, the Indian plant has
adopted a program called the
As reported last year, the Company
has a strong focus on new product development. It developed new crankshafts and
knuckles both for existing and new auto customers as well as components for the
railway, defence and construction equipment industry. The Company won new
product development awards from some of its key customers during the year.
Sales
and Marketing:
Most of their customers are OEMs or
Tier 1 suppliers. They are setting up a business development structure that
covers all Mahindra Systech companies and that will facilitate service to their
key customers. Under this structure, key customers dealing with more than one
Systech company will have a Systech-wide key account manager. This will enable
Systech to take advantage of cross-selling opportunities and establish a
stronger relationship with the customers. They also plan to harmonise the
efforts of all Systech companies around web presence, collaterals, event
planning etc. There are specific initiatives to enhance the capabilities and
knowledge of business development associates within Systech. In this regard, a
new program management process is being defined which seeks to integrate good
project management practices with Advanced Product Quality Planning (APQP)
requirements.
They believe that their sales and
marketing capacity enables us to enhance their customer relationships by
leveraging their global strengths in the areas of technology, cost and
manufacturing capabilities.
Financial
performance with respect to operational performance:
On a standalone basis, the total income of the Company
increased by 19% while profits before interest, depreciation, exceptional items
and tax (EBITDA) decreased to 9%. This was on account of the operational issues
described earlier in the report.
But on a consolidated basis, the total income of the Company
increased by 45% in FY11. The EBITDA% on a consolidated basis was at 9%, a big
positive swing from negative EBITDA in the previous year mainly on account of
sharp economic recovery in
Looking Ahead:
As they begin FY12, they are buoyed
by the turnaround in their European operations and challenged by inconsistency
in their Indian plant. They will continue the good work in
Systech is driven by the aim to
provide the best returns to all stakeholders. They have created an integrated,
commonly aligned international management team which can leverage synergies
across the different locations. The intent is to fully utilise their wide
product portfolio to secure larger orders from clients across different
geographies and execute them in the most optimal, cost competitive manner. They
are focused on extracting the maximum synergies among their verticals through
cross selling, best practice exchange and optimization of production. They
provide a diverse range of components and ‘art to part’ promise to their
customers along with the highest standard of governance characteristic of the Mahindra
Group. Thus they aim to fully unlock the potential of their business and rise to the opportunities that are
available to us.
FIXED ASSETS:
·
·
Building
·
Plant and Machinery
·
Furniture and Fittings
·
Vehicles
·
Software
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER ENDED SEPTEMBER 30, 2011
(Rs.
in millions)
|
Particulars |
Quarter Ended |
Half Year Ended |
|
30.09.2011 (Unaudited) |
30.09.2011 (Unaudited) |
|
|
|
|
|
|
1. Gross Sales/ Income from Operations |
1239.699 |
2286.291 |
|
Less: Excise Duty |
116.513 |
214.257 |
|
Net sales/ Income from Operations |
1123.186 |
2072.034 |
|
2. Other operating income |
0.000 |
3.084 |
|
3. Total Income
(1+2) |
1123.186 |
2075.118 |
|
4. Expenditure |
|
|
|
a) (Increase)/decrease in stock in trade and work in progress |
4.961 |
57.672 |
|
b) Consumption of raw materials |
624.753 |
1124.610 |
|
c) Purchase of Traded Goods |
0.000 |
0.000 |
|
d) Employee cost |
74.634 |
142.258 |
|
e) Depreciation |
58.500 |
114.961 |
|
f) Power and Fuel |
110.379 |
203.925 |
|
g) Other expenditure |
184.016 |
334.789 |
|
Total
Expenditure |
1057.243 |
1978.215 |
|
5. Profit/ (Loss) from operations before other income, interest and
Exceptional items (3-4) |
65.943 |
96.903 |
|
6. Other income |
6.566 |
7.917 |
|
7. Profit / (Loss) before interest and Exceptional items (5+6) |
72.509 |
104.820 |
|
8. Interest |
31.060 |
69.965 |
|
9. Profit / (Loss) after interest but before Exceptional items (7-8) |
41.449 |
34.855 |
|
10. Exceptional items |
0.000 |
0.000 |
|
11. Profit before Depreciation, Interest and Exceptional Items and Tax
(3)-(4)+(4e) |
124.443 |
211.864 |
|
12. Profit (+)/ Loss(-) from ordinary activities before tax
(3+6)-(4+8+10) |
41.449 |
34.855 |
|
13. Tax expenses |
0.000 |
0.000 |
|
14. Profit (+)/ Loss(-) from ordinary activities after tax (12-13) |
41.449 |
34.855 |
|
15. Extraordinary Items |
0.000 |
0.000 |
|
16. Net Profit (+)/ Loss(-) for the period |
41.449 |
34.855 |
|
17. Paid-up Equity Share Capital of Rs. 10 each |
921.691 |
921.691 |
|
18. Reserves (excluding revaluation reserves as per Balance Sheet of
previous accounting year) |
0.000 |
0.000 |
|
(a)
Basic and Diluted EPS before Extraordinary Items for the period, for year to
date and for the previous year |
0.46 |
0.39 |
|
(b)
Basic and Diluted EPS after Extraordinary Items for the period, for year to
date and for the previous year |
0.46 |
0.39 |
|
19. Public shareholding |
|
|
|
- Number of shares |
43343447 |
43343447 |
|
- Percentage of shareholding |
47.03% |
47.03% |
|
20. Promoter and
Promoter Group Shareholding |
|
|
|
a) Pledged /
Encumbered |
|
|
|
- Number of
Shares |
-- |
-- |
|
- Percentage of
Shares (as a % of total shareholding of promoter & promoter group) |
-- |
-- |
|
- Percentage of
Shares (as a % of total share capital of the Company) |
-- |
-- |
|
b)
Non-Encumbered |
|
|
|
- Number of
Shares |
48825609 |
48825609 |
|
- Percentage of
Shares (as a % of total shareholding of promoter & promoter group) |
100% |
100% |
|
- Percentage of
Shares (as a % of total share capital of the Company) |
52.97% |
52.97% |
Notes:
- The above results
are standalone results of Mahindra Forgings Limited.
- The Company
operates only in one business segment, viz. Forging Companies.
- during the
quarter, the company received subscription of Rs.441.750 Millions representing
the balance 75% of 42,99,270 warrants issued @Rs.137 per warrant to the
promoter Mahindra and Mahindra Limited. The said warrants were converted
into 42,99,270 equity shares of Rs.10 each with share premium of Rs.127
per equity share.
- No Provision
for income tax has been made in view of availability of brought forward
losses and unabsorbed depreciation.
- Figures for
the previous year have been regrouped and rearranged wherever necessary.
- The result
have been reviewed by the audit committee and approved by the board of
directors of the company at its meeting held on 20th October,
2011.
- During the
quarter, there were no investors complaints (previous quarter Nil)
- Results of
Mahindra Forgings Limited can be found on the company website.
WEBSITE DETAILS:
Mahindra and Mahindra Limited, a $ 3 billion Company, had set up a new
division called Mahindra Systems and Automotive Technologies Division (MSAT) in
September 2004 to create
Bringing to life the 'Design-to-Delivery' concept, MSAT establishes
itself as one of
MSAT operates in the entire value-chain from Component to System supply
and in achieving this it pays meticulous attention to the services provided to
its clients. On these grounds MSAT has established its fundamental principle of
reserving 75% of its plant capacities for external customers.
With the vision of achieving USD 1 billion by year 2010, MSAT is racing
towards the future - bolstered by the multitude resources being developed.
Mahindra Engineering Services (MES)
ME
is one of the few companies in the world to provide innovative design solutions
- from product concept to development.
Strategic Sourcing Business Unit (SSBU)
SSBU
comprises of skills acquired by Mahindra for sourcing quality components at
competitive prices from their strategically developed 400 strong vendor base.
These skill sets are available to their global customers to meet their sourcing
requirements from
Auto Component Business Unit (ACBU)
ACBU
consists of manufacturing plants, under MSAT, to manufacture steel, forgings,
gears and shafts, stampings, and in the near future - castings.
Mahindra Automotive Steels Limited ( MASL), a group Company
of Mahindra and Mahindra Limited (erstwhile a wholly owned subsidiary of M and
M), has recently acquired Chakan unit of Amforge Industries Limited, a public
company listed on the Bombay Stock Exchange, under the scheme of arrangement
(demerger). The said Scheme was sanctioned by the Bombay High Court by its
order dated March 21, 2006 .The acquired unit is the third largest manufacturer
of closed die forgings in India having manufacturing facility at Chakan near
Pune in Maharashtra . It manufactures Crank shaft, Connecting rod and Stub axle
forgings. MASL has set up a world class machining facility, which has been
commissioned in middle of APRIL 2006.
Stokes Group Limited,
PROFILE:
The Company was incorporated under the name Mahindra Automotive Steels
Limited on 13th August, 1999. The Certificate for commencement of
Business was obtained on 5th October, 1999. The Company was a non operating
company. Pursuant to a Scheme of Arrangement between Amforge Industries Limited
and Mahindra Automotive Steels Limited, the entire Chakan unit of Amforge
Industries Limited as a going concern together with all the assets and
liabilities relating to the Chakan unit has been transferred to and vested in
Mahindra Automotive Steels Limited with effect from 1st April 2005. It is
expected that the demerger will improve capacity utilisation and productivity
of the Chakan unit and shall enhance the synergies between Chakan unit and
Mahindra Automotive Steels Limited’s plans in the automotive component sector
and the forging business.
Mahindra's forging and machining facility is one of the finest and amongst the
top 3 forging companies in India, with an installed capacity of 42,000 MT.
Mahindra Forgings is the largest supplier of forged components (like
crankshafts and steering knuckles) to the Indian Automotive market, commanding
a 40% market share. Their presses churn out approximately 1 million crankshafts
and 0.5 million steering knuckles per annum.
With capabilities of developing new parts in the shortest period of
time, MASL consistently offers the best forging solutions in the market.
Already being accredited with ISO/TS 16949, MSAT's Indian forging facility has
now challenged the ISO 14001 status for end of 2006.
MASL further strives to continually deliver the best to its clients by
creating a Continuous Improvement Culture. On a quest to offer better solutions
to their valued customers they have embarked on a quality drive and adopted
various initiatives like TPM, SPC, MSA, VRT and POKAYOKE. In addition, they
have formed an energy conservation team to make their processes
environment-friendly.
MSAT has in-place an elaborate expansion and growth plan for Mahindra
Forgings to widen its existing range of capabilities and capacities. This is
being implemented in a phased manner, the most recent of which includes the
commissioning of a 100,000 nos. capacity crankshaft machining line.
Furthermore, they have already committed their investments towards the
connecting rod and steering knuckle machining lines that are scheduled to start
operations within this year.
History and Major Milestones
2005
TS 16949 Certification obtained. Amforge, Chakan Unit becomes a part of
the Mahindra and Mahindra Group.
2006
Board of Directors of MASL is reconstituted and Mr. Anand Mahindra
becomes the Chairman of the Board.
Business Description
subject is an India-based forging company. The
Company is engaged in supplying of forged components, which include crankshafts
and steering knuckles to the automotive market. The Company manufactures a
range of forgings from 500 grams to 45 kilograms. These include auto and diesel
engine components, crankshafts, connecting rods, crown wheels, pinions, bull
gears, stub axles, spindles, differential cases and covers, valve bodies, track
links, rollers and assemblies, and carbon steel and stainless steel flanges. As
of March 31, 2011, Mahindra Forgings had manufacturing facilities at 10
locations across three countries, with seven plants in
Board of Directors
Mr. Hemant Luthra
Non-Executive Non-Independent Chairman of the Board Chairman
Mr. Hemant Luthra is a graduate of the Indian
Institute of Technology,
Mr. Zhooben Bhiwandiwala
Non-Executive Non Independent Director
He is a Chartered Accountant by qualification,
has over 25 years of experience in the areas of finance, legal, HR, marketing,
strategy and other commercial functions. He is also a Sr. Vice President
Corporate Affairs in Mahindra and Mahindra Limited. He was the CFO of
Bristlecone Inc. in the
Mr. Mohit Burman
Independent Non-Executive Director
He has a Master’s Degree in Business Administration.
Mr. Burman started his career in 1989 in Welbeck Property Partnership in
Mr. Virendra Kumar Chanana
Independent Non-Executive Director
He is a retired IAS officer. He was nominated
by Unit Trust of India as a Director on the Board of Mahindra and Mahindra
Limited in 2002. Mr. Chanana has worked with UNIDO for ten years at its Head
Quarters at
Mr. Harald Korte
Non-Independent
Non-Executive Director
He is an engineer of the
Mr. Fali P. Mama
Independent Non-Executive Director
He has over 43 years experience in the Indian
Automotive and Engineering Industries in the area of Material Management and
Plant Level operation. He has excellent interpersonal skills, is a problem
solver, effective negotiator and communicator. He was with erstwhile TATA
Engineering and Locomotive Company Limited (now TATA Motors Limited) for 32 years
and was General Manager (Materials). He was responsible at Corporate level for
planning, negotiating and buying of components, raw material and consumables
both local and imported for all the Plants. His buying experience largely
related to procurement of steel raw material and components from Indian,
European, Korean and Japanese suppliers. After retirement from TATA Motors
Limited, he joined Anand Group (Auto Components) in September, 1996 as
President and independently managed their Export division for export of Shock
Absorbers and other related auto components to
Mr. Daljit Mirchandani
Non-Executive Independent Director
He is currently Chairman of Ingersoll-Rand (
Mr. Nikhilesh Panchal
Independent Non-Executive Director
He has Master’s Degree in Law and is a
Solicitor and Advocate by profession. He is a partner of Messrs Khaitan and
Company, Advocates and Solicitors. He has been practicing as a Solicitor and
Advocate in
Mr. Oliver Scholz
Non-Independent Non-Executive Director
He is a graduate and holds the qualification
of Master of Business Administration (MBA). Mr. Oliver Scholz joined Scholz AG
in 1993. He was responsible for the development and integration of the newly
acquired operations in
PRESS RELEASES:
MAHINDRA UNVEILS NEW BRAND POSITION - ‘RISE’
Synopsis:
·
Mahindra unveils new brand
position – Mahindra Rise and new Core Purpose
·
To invest Rs.1200.000
Millions over 3 years towards promotion of the new brand position
·
Mahindra Rise to communicate with one brand
voice, one face and one Mahindra core purpose
January 17, 2011, Mumbai:
The US $ 7.1 billion Mahindra Group, one of India’s leading business houses
with a vast global footprint, today announced a new brand position - Rise. The
latter represents a new chapter in the history of this iconic 65 year old brand
and seeks to communicate the new face of this diversified federation of
companies with its increasingly global ambitions.
This is the first time
Mahindra as a Group which spans everything from Aerospace to Automotive, from
farm equipment to IT and logistics, will communicate with one brand voice, one
face and one ‘Mahindra’ core purpose.
The Group intends to invest
Rs.1200.000 Millions 3 years, in activities related to promotion of the new
brand position.
“Rise isn’t just a word – it
is a rallying cry which enables people to unify around shared ideas, values,
principles, a way of life or a common goal. It is a call to see opportunities
where others can’t and to set an example for the world. For Mahindra, Rise means achieving world-class
standards in everything we do, setting new benchmarks of excellence and
conquering tough global markets,” said Mr. Anand Mahindra, Vice Chairman and
Managing Director, Mahindra Group.
“Mahindra has always been
known for its ingenuity and never say die spirit. Whether we’re transforming
the lives of millions of farmers through our agri-prosperity initiatives,
creating green and innovative urban living spaces or investing in new
automotive technologies and factories that leave the lowest carbon footprints,
Mahindra is many companies with just one purpose: Enabling people to Rise,” he
added.
Two years ago, Mahindra’s
Corporate Brand Council mandated StrawberryFrog, a
“Rise is a simple yet
powerful verb which defines our Group and succinctly sums up the aspirations of
our stakeholders and employees. When we spoke to customers across the world,
all of them without exception expressed a strong sense of optimism about the
future and shared a common desire to Rise,
to succeed and create a better future for themselves, their families and their
communities. We strongly believe that the Mahindra brand epitomizes what our
customers want – a company that empowers them to Rise,” said Mr. Ruzbeh Irani, Executive Vice President - Corporate
Strategy, Chief Brand Officer - Mahindra Group and Member of the Group
Executive Board.
Mahindra and Mahindra Limited - Q1 Group Consolidated Gross Revenue
grows by 66.2%
18 August 2011
The Gross Revenue and Other
Income for the quarter ended 30th June 2011 grew by 66.2 % to Rs.14256.000
Millions (USD 3.1 billion) from Rs.85762.000 Millions (USD 1.9 billion) in last
year. The consolidated group profit for the year after deducting minority
interests is Rs.6623.000 Millions(USD 146.0 million) as compared to Rs.6208.000
Millions (USD 136.9 million) earned in the previous year - a growth of 6.7%.
The numbers for the current
quarter as reported above are not strictly comparable with those of Q1 last
year since the previous year Revenue and PAT did not include those of Ssangyong
Motor Company Limited and its subsidiaries and share in PAT of Satyam Computer
Services Limited. On a comparable basis the growth in Group revenue in Q1 F2012
over Q1 F2011 is 31.9% and that in PAT after deducting minority interests,
15.2%.
During the current quarter,
some of the major group companies like Tech Mahindra, Mahindra Finance, Mahindra
Forgings, Mahindra Holidays, Mahindra Lifespaces and Mahindra Satyam
significantly improved their performance over Q1 of the previous year. Mahindra
Finance consolidated revenue grew by 42% to Rs 58460.00 Millions and its profit
at Rs 10550.000 Millions by 32%. The consolidated revenue of Tech Mahindra grew
by 14% to Rs 129250.000 Millions and its profit (excluding share of profit of
Satyam Computer Services Limited) at Rs 18050.000 Millions by 25%. Mahindra
Satyam did exceedingly well recording a growth of 15% in consolidated revenue
at Rs 143390.000 Millions and 131% increase in profit at Rs 22520.000 Millions.
As on 30th June 2011, the
Group comprised of 111 Subsidiaries, 6 Joint Ventures and 13 Associates. A full
summation of Gross Revenues and other income of all the group companies taken
together for the quarter ended 30th June 2011 is Rs 1584421.000 Millions (USD
3.5 billion).
Mr. Bharat Doshi, Executive
Director and Group CFO said, "We are delighted to announce the
consolidated financials of the Mahindra Group which in addition to the Auto and
Farm businesses are a reflection of the robust growth of the various Group
Companies in the IT, Finance, Real Estate, Hospitality and Systech
sectors."
He added, "Mahindra
Satyam's significant growth in margins and profit and SsangYong's improved
sales volume is heartening to note; it is with great satisfaction that we see
the integration of both these companies in the Group."
Note: Translation of rupee
to dollar is a convenience translation at the average exchange rate for the
twelve month period ended 30th June, 2011.
Notes to Editor
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 and vacation ownership. Mahindra has a presence in the
automotive industry, agribusiness, aerospace, components, consulting services,
defence, energy, financial services, industrial equipment, logistics, real
estate, retail, steel and two wheelers.
A US $12.5 billion
multinational group based in
In 2011, Mahindra featured
on the Forbes Global 2000 list, a listing of the biggest and most powerful
listed companies in the world. Dun and Bradstreet also ranked Mahindra at No. 1
in the automobile sector in its list of
In 2011, Mahindra acquired
a majority stake in Korea'sSsangYong Motor Company.
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.52.70 |
|
|
1 |
Rs.82.44 |
|
Euro |
1 |
Rs.71.08 |
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 |
YES |
|
--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.