MIRA INFORM REPORT

Report Date :

18.02.2013

IDENTIFICATION DETAILS

Name :	MAHINDRA HINODAY INDUSTRIES LIMITED (w.e.f. 18.11.2010)
Formerly Known As :	MAHINDRA CASTINGS LIMITED (w.e.f.17.12.2009) MAHINDRA CASTINGS PRIVATE LIMITED
Registered Office :	Mahindra Towers, P.K. Kurne Chowk, Worli, Mumbai - 400018, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	30.08.2007
Com. Reg. No.:	11-173636
Capital Investment / Paid-up Capital :	Rs. 465.767 Millions
CIN No.: [Company Identification No.]	U27100MH2007PLC173636
PAN No.: [Permanent Account No.]	AAFCM2152F
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Magnets and Iron Casting.
No. of Employees :	2000 [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

Maximum Credit Limit :	USD 6290000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is part of Mahindra and Mahindra Group. It is well established reputed company having satisfactory track record. The company is continuously incurring losses from its operation. However, trade relations are fair. Business is active. Payments are reported to be usually correct and as per commitments. In view of strong holding the company can be considered normal for business dealings at usual trade terms and condition.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Long term Fund Based Facility : (BBB-)
Rating Explanation	The moderate credit quality it carries higher than average credit risk.
Date	January 12, 2012

Rating Agency Name	ICRA
Rating	Short term Fund Based Facility : A3
Rating Explanation	The moderate credit quality it carries higher credit risk.
Date	January 12, 2012

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION PARTED BY (GENERAL DETAILS)

Name :	Ms. Priya
Designation :	Accounts Department
Contact No.:	91-20-66120400
Date :	15.02.2013

LOCATIONS

Registered Office/ Factory :	Mahindra Towers, P.K. Kurne Chowk, Worli, Mumbai - 400018, Maharashtra, India
Tel. No.:	91-20-27120811/ 27128592/ 24905632
Fax No.:	91-20-27128592
E-Mail :	chinchore@anish@hinoday.com vs.ramesh@mahindra.com
Website :	http://www.hinoday.com
Area :	8 acres
Location :	Leased
Factory 1 :	Gat No. 318, Gaon Urse, Taluka Maval, Pune - 410506, Maharashtra, India
Tel No.:	91-20-66120400
Factory 2 :	Bhosari Industrial Estate, Pune-411026, Maharashtra, India
Tel No.:	91-20-27120812
	91-20-27121689

DIRECTORS

AS ON 31.08.2012

Name :	Mr. Hemant Hans Raj Luthra
Designation :	Chairman
Address :	Breach Candy Garden, Flat No.6, 2^nd Floor, 68 Bhulabhai Desai Road, Opposite Amarsons, Mumbai – 400026, Maharashtra, India
Date of Birth/Age :	18.04.1949
Qualification :	B. Tech., PGM (Harvard)
Date of Appointment :	30.08.2007
DIN No.:	00231420
Name :	Mr. Ajit Prabhakar Lele
Designation :	Managing Director
Address :	Building ‘L, ‘ Flat No. 11, Suyog Nagar, Co-Operative, Behind Shivaji Housing Society, Pune - 411016, Maharashtra, India
Date of Birth/Age :	04.09.1950
Qualification :	IIT (Mech.), IIM
Date of Appointment :	04.08.2009
PAN No.:	ABJPL2420M
DIN No.:	00194831
Name :	Mr. Zhooben Dosabhoy Bhiwandiwala
Designation :	Director
Address :	S-13, Cusrow Baug, Shahid Bhagat Singh Road, Colaba, Mumbai – 400039, India
Date of Birth/Age :	09.12.1959
Qualification :	Chartered Accountant
Date of Appointment :	22.01.2008
DIN No.:	00110373
Name :	Mr. Rajan Wadhera
Designation :	Director
Address :	1203, Oberai Gardens, ‘C’ Wing, Thakur Village, Kandivali (East), Mumbai - 400101, Maharashtra, India
Date of Birth/Age :	10.07.1956
Qualification :	B.Tech, M.Tech.
Date of Appointment :	30.08.2007
DIN No.:	00416429
Name :	Mr. Krishnan Ramaswami
Designation :	Whole-time director
Address :	Flat NO. 202, Building H2, Bevedere Rachna Housing Society, Opposite Ozone Mall, Anudh, Pune – 411007, Maharashtra, India
Date of Birth/Age :	08.06.1954
Qualification :	B.E. Mech., MBA MBA Miltonkeans Unniversity UK
Date of Appointment :	29.03.2012
DIN No.:	00517598
Name :	Mr. Sanjay Narendrakumar Arte
Designation :	Director
Address :	501, Ashoka-1, 15^th Road, Khar (West), Mumbai – 400052, Maharashtra, India
Date of Birth/Age :	05.12.1958
Qualification :	B.E. Mech -IIT, Masters in Management
Date of Appointment :	22.01.2008
DIN No.:	01000716
Name :	Mr. Vikram Nirula
Designation :	Director
Address :	704, Gypsy Rose, Shastri Nagar, Ajmera Complex, Andheri (West), Mumbai-400053, Maharashtra, India
Date of Birth/Age :	28.08.1972
Qualification :	B.E. Computers, PGDBM IIM
Date of Appointment :	22.01.2008
DIN No.:	01655115

KEY EXECUTIVES

Name :	Ms. Priya
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.08.2012

SHAREHOLDING DETAILS FILE ATTACHED

AS ON 31.08.2012

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	99.93
Other top fifty shareholders	0.07
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Magnets and Iron Casting.

Products :

ITC Code	Product Descriptions
85051900	Ceramic magnets
38241000	Prepared binders for moulds
73259910	Cast Articles of Iron

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production [In Qty.]
Magnetic Product Division	(Per Annum)	10000 Tons	5400 Tons	4932
Foundry Division	(Per Annum)	97600 Tons	45000 Tons	35719

GENERAL INFORMATION

No. of Employees :

2000 [Approximately]

Bankers :

Ø Bank of Baroda, Corporate Banking Branch, Mantri Court, Pune - 411001, Maharashtra, India (Tel No.: 91-20-26058284)

Ø IDBI Bank Limited, IDBI Tower, WTC Complex, Cuffe Parade, Mumbai - 400005, Maharashtra, India (Tel No.: 91-22-66937000)

Ø Saraswat Co-operative Bank Limited, C/2, Kohinoor Estate Hosing Society, Plot No. 2, Mula Road, Sangamwadi, Pune - 411003, Maharashtra, India

Ø ING Vyasya Bank

Ø State Bank of India

Facilities :

Secured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Term loans from banks	789.703	873.352
Cash credit loans from banks	115.009	149.357
Loans repayable on demand	0.000	0.000
- Rupee Loans	47.500	0.000
- Foreign Currency Loans	12.993	0.000
Total	965.205	1022.709
Note: * Cash credit and demand loans are secured by first charge of hypothecation on all current assets, Both present and future and second charge (ranking after charges created and/or to be created in favour of term lenders) of hypothecation on all movable fixed assets, both present and future.

Banking Relations :	--
Auditors :
Name :	B K Khare and Company Chartered Accountants
Address :	706/708, Sahrda Chambers, New Marine Lines, Mumbai - 400020, Maharashtra, India
Tel. No.:	91-22-22000607/ 7318/ 6360/ 56315835/ 36
Fax No.:	91-22-22003476
E-Mail :	info@bkkhareco.com
Income-tax PAN of auditor or auditor's firm :	AAAFB0265E
Holding company :	Mahindra and Mahindra Limited [L65990MH1945PLC004558]
Fellow Subsidiary companies :	Ø Mahindra SAR Transmission Private Limited Ø Mahindra Ugine Steel Company Limited Ø Mahindra Vehicle Manufacturing Limited Ø Mahindra Engineering Services Limited Ø Mahindra Engineering and Chemicals Private Limited Ø Mahindra Logistics Limited Ø Mahindra Forgings Limited Ø Mahindra First Choice Wheels Limited Ø Mahindra Navistar Engines Private Limited Ø Mahindra Navistar Automotives Limited Ø Mahindra Spares Business Ø Mahindra Steel Service Centre Limited
Subsidiary :	Mahindra Casting Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
57,000,000	Equity Shares	Rs. 10/- each	Rs. 570.000 Millions
15,000,000	Preference Shares	Rs. 10/- each	Rs. 150.000 Millions
	Total		Rs. 720.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
46,576,717	Equity Shares	Rs. 10/- each	Rs. 465.767 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		465.767	430.167	330.167
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1107.143	1041.069	1340.954
4] (Accumulated Losses)		0.000	0.000	(416.731)
NETWORTH		1572.910	1471.236	1254.390
LOAN FUNDS
1] Secured Loans		965.205	1022.709	670.857
2] Unsecured Loans		163.418	286.676	463.634
TOTAL BORROWING		1128.623	1309.385	1134.491
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		2701.533	2780.621	2388.881
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2631.090	2273.369	1908.305
Capital work-in-progress		117.455	219.945	38.668
INVESTMENT		40.025	40.025	40.025
DEFERRED TAX ASSETS		64.804	108.530	135.226
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	639.036	489.939	353.506
	Sundry Debtors	637.175	493.286	445.331
	Cash & Bank Balances	11.797	22.783	22.376
	Other Current Assets	33.110	47.965	78.370
	Loans & Advances	111.584	211.617	187.370
Total Current Assets		1432.702	1265.590	1086.953
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	996.773	710.187	424.274
	Other Current Liabilities	458.731	263.231	181.928
	Provisions	129.039	153.420	214.094
Total Current Liabilities		1584.543	1126.838	820.296
Net Current Assets		(151.841)	138.752	266.657
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2701.533	2780.621	2388.881

NOTE (A): Includes: Capital work in progress: Ferrite Division: 6430, Ductile Iron Casting Division: 32238

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	4972.519	3751.699	2969.969
		Other Income	29.749	10.729	23.370
		TOTAL (A)	5002.268	3762.428	2993.339
Less	EXPENSES
		Cost of materials consumed	2486.538	1842.028
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(120.849)	(105.757)
		Employee benefit expense	478.354	399.706
		Other expenses	1839.837	1427.126
		TOTAL (B)	4683.880	3563.103	2811.511
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		318.388	199.325	181.828
Less	FINANCIAL EXPENSES (D)		164.688	91.390	133.639
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		153.700	107.935	48.189
Less/ Add	DEPRECIATION/ AMORTISATION (F)		218.128	155.652	140.995
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(64.428)	(47.717)	(92.806)
Less	TAX (H)		43.728	26.696	(14.436)
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(108.156)	(74.413)	(78.370)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(569.515)	(495.102)	(416.732)
	BALANCE CARRIED TO THE B/S		(677.671)	(569.515)	(495.102)
	EARNINGS IN FOREIGN CURRENCY
		Exports at F.O.B. Value	1118.361	694.483	559.814
		Commission Income	1.232	0.000	0.000
	TOTAL EARNINGS		1119.593	694.483	559.814
	IMPORTS
		Raw Materials	181.435	118.333	76.979
		Components and spare parts	33.512	26.321	21.479
		Capital Goods	90.567	139.805	34.805
	TOTAL IMPORTS		305.514	284.459	133.263
	Earnings/ (Loss) Per Share (Rs.)		(2.41)	(1.91)	(2.37)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	(2.16)	(1.98)	(2.62)
Net Profit Margin (PBT/Sales)	(%)	(1.30)	(1.27)	(3.12)
Return on Total Assets (PBT/Total Assets}	(%)	(1.59)	(1.35)	(3.10)
Return on Investment (ROI) (PBT/Networth)		(0.04)	(0.03)	(0.07)
Debt Equity Ratio (Total Debt/Networth)		0.72	0.89	0.91
Current Ratio (Current Asset/Current Liability)		0.90	1.12	1.33

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2012	31.03.2011	31.03.2010
	(Rs. In Millions)
Sundry Creditors	996.773	710.187	424.274

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	Yes
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

UNSECURED LOANS

Unsecured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Sales Tax Deferral loan from SICOM under Package Scheme of Incentives 1993	163.418	186.676
Inter Corporate Deposits	0.000	100.000
Total	163.418	286.676

CORPORATE INFORMATION:

Mahindra Hinoday Industries Limited (the company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The company is engaged in the manufacturing of castings, magnet for vehicles, coils and electrode-less Lamps. The company caters both domestic and international markets.

Till the year ended March, 31 2011, the company was using pre-revised Schedule VI to the Companies Act 1956, for preparation and presentation of its financial statements. During the year ended March, 31 2012, the revised Schedule VI notified under the Companies Act 1956, has become applicable to the company. The company has reclassified previous year figures to conform to this year’s classification. Except accounting for dividend on investments in subsidiaries, the adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it significantly impacts presentation and disclosures made in the financial statements, particularly presentation of balance sheet.

PERFORMANCE REVIEW

During the year, the Company registered revenue of Rs. 5002.300 Millions as compared to revenue of Rs. 3762.400 Millions in the previous year registering an increase of 33%. EBIDTA during the year increased to Rs. 318.400 Millions from Rs. 199.300 Millions in the previous year. However, losses increased from Rs. 47.700 Millions to Rs.64.500 Millions as the expenses for expanding foundry Facility were incurred during the year and the benefit of the same is expected to be available only in the next year.

FOUNDRY DIVISION (FD):

Sales for this Division increased to Rs.3779.400 Millions during the year from Rs. 2719.100 Millions in the previous year. The turnover is expected to grow further in the coming year on successful utilisation of the new lines. This will also increase profits from this Division.

Both the second phases of capacity expansion were completed during the year. The commissioning of the third line (NL3) was done in August, 2011. The capacity utilization for this new line along with the line commissioned in December, 2010 was quickly raised to 60%in the fourth quarter of the year.

With the commissioning of new lines, the customer delivery performance improved satisfactorily.

New products were added with customers such as Hyundai, Honeywell, Mahindra & Mahindra Limited and CTT.

MAGNETIC PRODUCTS DIVISION (MPD):

For the first time, the Division crossed the billion rupees mark in sales. With a 19% increase over the last year, the Division recorded sales of Rs.1095.200 Millions. Some of the significant actions taken during the year were improvement in price realization, enhancements in critical bottleneck capacities, significant output increase to meet high demand in specific export products and reduction in receivables. As a result of these actions, the Division could make a turn around and made profits and continued to be cash positive.

Magnetic induction lighting in its first year of commercial sales, has gained in market reach with good feedback from its initial customers.

MARKET SCENARIO

Markets started slowing down in the second half of the year and the uncertainty continues to haunt the industry. While the two wheeler industry is expected to continue to grow, growth in passenger cars, commercial vehicles and more importantly tractor industry is likely to slow down. The Company has already diversified its product portfolio and will work further to de-risk.

BANKERS CHARGES REPORT AS PER REGISTRY

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 India of the company	Mahindra Towers, P.K. Kurne Chowk, Worli, Mumbai - 400018, Maharashtra, India Email: vs.ramesh@mahindra.com
This form is for	Modification of charge
Charge identification number of the modified	90084191
Type of charge	Book debts Movable property (not being pledge) Floating charge
Particular of charge holder	Bank of Baroda, Corporate Banking Branch, Mantri Court, Pune - 411001, Maharashtra, India Email: corpun@bankofbaroda.com
Nature of description of the instrument creating or modifying the charge	Supplemental joint deed of hypothecation. Supplemental inter se agreement. Both constituting single charge.
Date of instrument Creating the charge	17.09.2012
Amount secured by the charge	Rs. 780.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per original agreement as amended from time to time and sanction letters of each bank Terms of Repayment As per original agreement as amended from time to time and sanction letters of each bank Margin As per original agreement as amended from time to time and sanction letters of each bank Extent and Operation of the charge By current modification limits are revised and restructured making the total working capital facility to Rs. 780.000 Millions. The above facility is secured by first pari passu charge by way of hypothecation on borrower's current assets and also second pari passu charge of hypothecation on borrowers all movable plant and machinery and other movable assets, both present and future. Others The revised and restructured limits are BOB IVBL IDBI SBI SCB Total FUND BASED WC 212.500 115.000 95.000 100.000 77.500 600.000 NON FUND BASED WC 80.000 20.000 40.000 10.000 30.000 180.000
Short particulars of the property charged	Current Assets (First pari passu charge in joint favour of the said banks and each of them severally for securing working capital facilities)- Whole of Current Assets of the borrower namely, stocks of raw material stocks in process, semi finished and finished goods, stores and spares not relating to plant and machinery, bills receivables and book debts and all other movables, both present and future whether now lying loose or in cases or which are now lying or stored in or about or shall hereafter from time to time during the continuance of the security Movable Plant and Machineries and other Movable Assets- (Second Pari passu charge in joint favour of the said banks and each of them severally for securing working capital facilities.) The whole of Movable Plant and Machineries and other Movable Assets- (excluding those forming the part of current assets and certain movable assets exclusively charged in favour of State Bank of India) of the borrower, both present and future and whether lying loose or in cases or shall during the continuance of the said facilities be brought into and upon or be stored or be in or about of the borrower factories, premises and godowns situated at Bhosari, Pune and Urse, Tal. Maval, District Pune in state of Maharashtra or anywhere else
Date of Modification	30.05.2008
Particulars of the present modification	By current modification limits are revised and restructured making the total working capital facility to Rs. 780.000 Millions.

CONTINGENT LIABILITIES

(Rs. in millions)

Particulars	31.03.2012	31.03.2011
Income tax demands disputed in appellate proceedings	22.633	10.036
Disputed demands in respect of Excise duty (Net of protest money)	4.180	28.088
Cess	10.535	10.535
Bank Guarantees	54.614	37.567
Claims against the company not acknowledged as debt:-Stamp duty	29.007	29.007

FIXED ASSETS:

Ø Land Leasehold

Ø Land Free Hold

Ø Building

Ø Plant and Machinery

Ø Electrical Equipment

Ø Furniture

Ø Office Equipment

Ø Computer

Ø Vehicle

WEBSITE DETAILS:

PRESS RELEASE

M&M TO RAISE STAKE IN SSANGYONG UNIT TO 73%

Thu, Feb 14, 2013 at 15:00

Mahindra and Mahindra will raise its holding in Ssangyong Motor Co to 72.85 percent in a 80 billion Korean won investment, the South Korean carmaker said in a statement on Thursday.

Mahindra and Mahindra will raise its holding in Ssangyong Motor Co to 72.85 percent in a 80 billion Korean won investment, the South Korean carmaker said in a statement on Thursday.

Mahindra, India's biggest sports utility vehicle manufacturer will subscribe to preferential shares issued by Ssangyong to facilitate new product development and strengthen the South Korean company's financials.

The payment is expected to be made on May 22.

Mahindra, the flagship company of the USD 15.9 billion Mahindra Group, bought a controlling stake in the carmaker in March 2011.

M&M TO ACQUIRE 26% STAKE IN DEFENCE JV WITH BAE SYSTEMS

Sat, Feb 09, 2013 at 13:55

Mahindra and Mahindra today said it will acquire 26 percent stake in its defence joint venture with BAE Systems, ending their three-year old partnership.

Mahindra and Mahindra  today said it will acquire 26 percent stake in its defence joint venture with BAE Systems, ending their three-year old partnership.

In a joint statement, they said that they have decided to end their three-year old partnership in the Indian defence sector with M&M set to acquire 26 percent stakes of its partner in the joint venture company Defence Land Systems India (DLSI).

In DLSI, Mahindra Defence Systems- a part of the Mahindra and Mahindra group- has 74 percent stakes while the global defence major holds the remaining 26 percent. The Joint Venture company had plans of supplying artillery howitzers and anti-mine vehicles to the Indian armed forces.

"Since the establishment in 2009 of the Joint Venture, DLSI, there has been significant evolution in the Indian Land Systems market. "Developments in both the industry environment and in customer procurement frameworks and acquisition strategies have led the shareholders to conduct a strategic review of the DLSI business," BAE Systems said in the statement.

"Following that review, it has been jointly agreed that Mahindra & Mahindra will acquire BAE Systems' 26 percent shareholding in the entity. "This decision is a reflection of the shareholders' belief that they can best meet emerging customer requirements and address the opportunities in this dynamic market with a flexible, tailored approach that was not easily facilitated by the structure of the existing Joint Venture entity," it said.

BAE said the decision will enable both companies to consider each opportunity on a case by case basis, including continuing to explore opportunities for co-operating on specific defence projects.

Commenting on the development, Brigadier (Retd) Khutub Hai, Chairman and Managing Director, Mahindra Defence Systems, said" "In keeping with the Indian defence acquisition scenario and current market considerations, the managements of Mahindra & Mahindra and BAE Systems have decided that Mahindra's 100 percent subsidiary Mahindra Defence Systems will acquire BAE Systems' 26 percent shareholding in the Defence Land Systems India (DLSI) joint venture."

"This is a strategic decision and will enable both the companies to approach opportunities individually and to offer customised solutions to meet the needs of the Indian defence land systems domain," he said.

Dean McCumiskey, Managing Director and Chief Executive, India, BAE Systems, said, "Building domestic capabilities in partnership with Indian companies will remain a cornerstone of our strategy in India.

"We look forward to opportunities to collaborate with Mahindra and others to enhance the role of the private sector in the defence industry."

As per India's FDI policy, foreign vendors can invest only 26 percent in the Indian defence sector to develop military hardware indigenously.

M&M PROFIT RISES 26%, LAGS STREET ESTIMATES

Fri, Feb 08, 2013 at 14:42

Mahindra and Mahindra Limited, India's biggest utility vehicle manufacturer, posted a 26 percent rise in profit for the three months to end-December but lagged street estimates, as a slide in operating margin offset strong SUV sales growth.

Mahindra and Mahindra Limited , India's biggest utility vehicle manufacturer, posted a 26 percent rise in profit for the three months to end-December but lagged street estimates, as a slide in operating margin offset strong SUV sales growth.

Shares in the company fell as much as 1.4 percent after the results. They were down 0.4 percent before the results were released.

Mahindra, also the world's largest tractor company by sales volume, said profit for the fiscal third quarter was Rs 8360.000 Millions, against Rs 6620.000 Millions a year earlier. Net sales increased 29 percent to Rs 106430.000 Millions.

Analysts, on average, expected profit of Rs 8620.000 Millions, according to data from Thomson Reuters Starmine.

Mahindra's passenger vehicle sales rose an annual 36 percent during the quarter, as its domestic tractor sales inched up 3.9 percent.

M&M GETS CCI NOD FOR STAKE BUY IN MAHINDRA NAVISTAR

Fri, Feb 08, 2013 at 20:29

Fair trade regulator CCI has approved auto major Mahindra and Mahindra's proposal to fully acquire commercial vehicle producer Mahindra Navistar Automotives, saying the deal does not raise anti-competition concerns.

Fair trade regulator CCI has approved auto major Mahindra and Mahindra's proposal to fully acquire commercial vehicle producer Mahindra Navistar Automotives, saying the deal does not raise anti-competition concerns.

Mahindra and Mahindra ( M&M ) would buy the remaining 49 percent stake in the joint venture with US-based Navistar International Corp. The 49 percent stake is held by Navistar's indirect subsidiary International Truck and Engine Mauritius Holding (IMH).

In its order dated February 4, Competition Commission of India (CCI) observed that the proposed deal "is not likely to have an appreciable adverse effect on competition in India".

Following the acquisition, Mahindra Navistar, which is engaged in business of designing, developing and sale of light, medium and heavy commercial vehicles, would become a wholly owned subsidiary of Mahindra and Mahindra (M&M).

CCI observed that both M&M and Mahindra Navistar operate "in different segments of the commercial vehicle market in India" and would therefore not have an adverse impact on competition.

M&M and its affiliates manufacture and sell passenger cars, commercial vehicles and two/three wheelers. While IMH a subsidiary of US-based Navistar is into investment holding activities.

However, other subsidiaries and affiliates of Navistar produce international brand commercial and military trucks, MaxxForce brand diesel engines among others. CCI said that apart from its stake in Mahindra Navistar, Navistar is not engaged in business activities in India and following the deal, "both M&M and Navistar would operate in different geographical territories in manufacturing, designing or sale of light, medium and heavy commercial vehicles".

M&M and Navistar had reached the deal in January last year, following which a notice was filed with CCI for its approval.

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

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 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. 53.99
UK Pound	1	Rs. 83.72
Euro	1	Rs. 72.09

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	BVA

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	6
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	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	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.