1. Summary Information
|
|
|
Country |
|
|
Company Name |
Mahindra And
Mahindra Limited |
Principal Name 1 |
Mr. Keshub Mahindra |
|
Status |
Good |
Principal Name 2 |
Mr. Anand G. Mahindra |
|
|
|
Registration # |
11-4558 |
|
Street Address |
|
||
|
Established Date |
02.10.1945 |
SIC Code |
-- |
|
Telephone# |
91-22-22021031 |
Business Style 1 |
Manufacturing |
|
Fax # |
91-22-22028780
/ 22875485 |
Business Style 2 |
-- |
|
Homepage |
Product Name 1 |
Light Commercial Vehicles |
|
|
# of employees |
15147
Approximately |
Product Name 2 |
Agricultural Tractors |
|
Paid up capital |
Rs.2,936,200,000/- |
Product Name 3 |
Implements and Utility Vehicles |
|
Shareholders |
Shareholding of
Promoter and Promoter Group (26.80%) Public
Shareholding (73.20%) |
Banking |
Standard Chartered Bank |
|
Public Limited Corp. |
YES |
Business Period |
66 Years |
|
IPO |
YES |
International Ins. |
- |
|
Public |
YES |
Rating |
A
(69) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Associates
|
-- |
Mahindra Composites Limited |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2012 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
60,959,800,000 |
Current Liabilities |
61,942,700,000 |
|
Inventories |
23,583,900,000 |
Long-term Liabilities |
31,742,200,000 |
|
Fixed Assets |
42,860,200,000 |
Other Liabilities |
23,724,000,000 |
|
Deferred Assets |
0,000 |
Total Liabilities |
117,408,900,000 |
|
Invest& other Assets |
111,715,900,000 |
Retained Earnings |
118,765,700,000 |
|
|
|
Net Worth |
121,710,900,000 |
|
Total Assets |
239,119,800,000 |
Total Liab. & Equity |
239,119,800,000 |
|
Total Assets (Previous Year) |
198,406,200,000 |
|
|
|
P/L Statement as of |
31.03.2012 |
(Unit: Indian Rs.) |
|
|
Sales |
318,535,200,000 |
Net Profit |
28,788,900,000 |
|
Sales(Previous yr) |
227,575,100,000 |
Net Profit(Prev.yr) |
26,621,000,000 |
MIRA
INFORM REPORT
|
Report Date : |
14.01.2013 |
IDENTIFICATION DETAILS
|
Name : |
|
|
|
|
|
Registered
Office : |
Gateway Building, Apollo Bunder, Mumbai – 400 001,
Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of Incorporation
: |
02.10.1945 |
|
|
|
|
Com. Reg. No.: |
11-004558 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.2945.200 millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L65990MH1945PLC004558 |
|
|
|
|
TAN No.: [Tax Deduction & Collection
Account No.] |
MUMM01692F |
|
|
|
|
Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on
the Stock Exchange. |
|
|
|
|
Line of Business
: |
Manufacturer of Light Commercial Vehicles, Agricultural Tractors,
Implements and Utility Vehicles. |
|
|
|
|
No. of Employees
: |
15147 [Approximately] |
RATING & COMMENTS
|
MIRA’s Rating : |
A (69) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 486800000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Exists |
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|
|
|
Comments : |
Subject is a Mahindra group company. It is a well established and a reputed company having good track record. Financial position appears to be sound. Directors are respectable and experienced businessmen, having satisfactory means of their own. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions. It can be regarded as promising business partner in medium to long run. |
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 – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
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 |
CRISIL |
|
Rating |
AA+ (Working Capital Demand Loans) |
|
Rating Explanation |
High degree of safety and very low credit risk |
|
Date |
10.10.2011 |
|
Rating Agency Name |
CRISIL |
|
Rating |
A1+ (Short term loan) |
|
Rating Explanation |
Very strong degree of safety and lowest credit risk. |
|
Date |
10.10.2011 |
|
Rating Agency Name |
CRISIL |
|
Rating |
A1+(Bank Guarantee and letter of credit) |
|
Rating Explanation |
Very strong degree of safety and lowest credit risk. |
|
Date |
10.10.2011 |
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.
LOCATIONS
|
Registered Office : |
|
|
Tel. No.: |
91-22-22021031 |
|
Fax No.: |
91-22-22028780 / 22875485 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Head Office : |
|
|
Tel No.: |
91-22-24931441 / 24961441 |
|
Fax No.: |
91-22-24975081 |
|
|
|
|
Factory : |
Akurli Road, Kandivali (East), Mumbai, Maharashtra, India |
|
Tel. No.: |
91-22-28849800 |
|
Fax No.: |
91-22-28468523 |
|
|
|
|
Factory : |
Also Located At: · Nashik · Nagpur · Zaheerabad · Rudrapur · Haridwar · Pune |
|
|
|
|
Branch Office : |
Located At : · Chennai · Kolkata · New Delhi ·
Bangalore
|
DIRECTORS
As on 31.03.2012
|
Name : |
Keshub Mahindra |
|
Designation : |
Chairman Emeritus |
|
|
|
|
Name : |
Anand G Mahindra |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Nadir B Godrej |
|
Designation : |
Director |
|
|
|
|
Name : |
M M Murugappan |
|
Designation : |
Director |
|
|
|
|
Name : |
Narayanan Vaghul |
|
Designation : |
Director |
|
|
|
|
Name : |
A S Ganguly |
|
Designation : |
Director |
|
|
|
|
Name : |
R K Kulkarni |
|
Designation : |
Director |
|
|
|
|
Name : |
Anupam Puri |
|
Designation : |
Director |
|
|
|
|
Name : |
Bharat Doshix |
|
Designation : |
Executive Director and CFO |
|
|
|
|
Name : |
A K Nanda |
|
Designation : |
Director |
|
|
|
|
Name : |
Vikram Singh Mehta |
|
Designation : |
Director |
|
Date of Appointment : |
30.05.2012 |
|
|
|
|
Name : |
Vishakha N Desai |
|
Designation : |
Director |
|
Date of Appointment : |
30.05.2012 |
KEY EXECUTIVES
|
Name : |
Narayan Shankar |
|
Designation : |
Company Secretary |
|
|
|
|
Committees of The Board : |
Audit Committee : ·
Deepak S. Parekh ·
Nadir B. Godrej ·
M. M. Murugappan ·
R. K. Kulkarni Share Transfer
and Shareholders/ Investors Grievance Committee ·
Keshub Mahinda ·
Anand G. Mahindra ·
Bharat Doshi ·
A.K. Nanda ·
R.K. Kulkarni Governance,
Remuneration and Nomination Committee ·
Narayanan Vaghul ·
Keshub Mahinda ·
Nadir B. Godrej ·
M. M. Murugappan ·
R.K. Kulkarni Strategic
Investment Committee ·
Keshub Mahinda ·
Anand G. Mahindra ·
Bharat Doshi ·
Deepak S. Parekh ·
Nadir B. Godrej ·
A S Ganguly Loan And Investment
Committee ·
Keshub Mahinda ·
Anand G. Mahindra ·
Bharat Doshi ·
A.K. Nanda ·
R.K. Kulkarni Reserch and
Development Committee ·
A S Ganguly ·
Anand G. Mahindra ·
Bharat Doshi ·
Nadir B. Godrej ·
M. M. Murugappan |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2012
|
Category of
Shareholder |
Total No. of Shares
|
Total
Shareholding as a % of total No. of Shares |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
3934552 |
0.68 |
|
|
70354386 |
12.11 |
|
|
80636500 |
13.88 |
|
|
51835214 |
8.92 |
|
|
2167310 |
0.37 |
|
|
26633976 |
4.59 |
|
|
154925438 |
26.67 |
|
|
|
|
|
|
731772 |
0.13 |
|
|
731772 |
0.13 |
|
Total
shareholding of Promoter and Promoter Group (A) |
155657210 |
26.80 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
12161680 |
2.09 |
|
|
825041 |
0.14 |
|
|
523256 |
0.09 |
|
|
100674978 |
17.33 |
|
|
184213540 |
31.71 |
|
|
298398495 |
51.37 |
|
|
|
|
|
|
52647743 |
9.06 |
|
|
|
|
|
|
39883437 |
6.87 |
|
|
9062033 |
1.56 |
|
|
25242775 |
4.35 |
|
|
1962745 |
0.34 |
|
|
972 |
0.00 |
|
|
1607628 |
0.28 |
|
|
370901 |
0.06 |
|
|
1944774 |
0.33 |
|
|
19355755 |
3.33 |
|
|
126835988 |
21.83 |
|
Total Public
shareholding (B) |
425234483 |
73.20 |
|
Total (A)+(B) |
580891693 |
100.00 |
|
(C) Shares held
by Custodians and against which Depository Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
33089063 |
0.00 |
|
|
33089063 |
0.00 |
|
Total
(A)+(B)+(C) |
613980756 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Light Commercial Vehicles, Agricultural
Tractors, Implements and Utility Vehicles. |
||||||||
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||||||||
|
Products : |
|
PRODUCTION STATUS (As on 31.03.2011)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
1. A.
On Road Automobiles having four or more wheels such as light, medium and
heavy commercial vehicles, jeep type vehicles and passenger cars |
Nos. |
372000 |
304000 |
250906 |
|
b. Three Wheelers |
Nos. |
84000 |
72000 |
65203 |
|
2. Agricultural tractor |
Nos. |
255300 |
256000 |
216388 |
|
3. Manufactured and purchased parts and accessories for sale |
Nos. |
- |
These are manufactured against spare capacity under 1 and 2above |
764299 |
|
4. Internal Combustion Piston Engines |
Nos. |
225000 |
225000 |
196630 |
|
5. Diesel Genset |
Nos. |
24000 |
Assembly at 3rd Party Locations |
11786 |
|
6. Engines |
Nos. |
-- |
These are manufactured against spare capacity under 2 |
15559 |
|
7. Forklifts |
Nos. |
300 |
180 |
118 |
|
8. Harvester Combines |
Nos. |
300 |
540 |
267 |
Note:
(i) (a) The
installed capacity has been certified by President/Chief Executives, which the auditors
have relied on without verification as this is a technical matter.
(b) The licensed
capacities include/represent, as the case may be, registrations granted and
Industrial Entrepreneur Memorandum filed with, and duly acknowledged by, the
Government pursuant to the schemes of de-licensing.
(c) Within the
overall licensed capacity in item 1 above, the Company is permitted to
manufacture for outside sale 10,000 petrol/diesel engines and 4,000 tonnes grey
iron castings.
(d) The installed capacity
mentioned against item no. (A) 1(a) above includes 48,000 (2010 : 48,000) for production of vehicles for third
parties.
(ii) Actual
Production includes production for captive consumption.
(iii) (a) The
actual production disclosed against manufactured
components/sub-assemblies/steel blanks is the number of such components
transferred during the year to the Marketing Unit/Spare Parts Stores for sale
or sold otherwise.
(b) The Opening
and Closing Stocks and Sales of goods shown under item 3 above consist of
manufactured and purchased parts. The bifurcation of stocks/sales into
manufactured and bought-out parts is not practicable.
GENERAL INFORMATION
|
No. of Employees : |
15147 [Approximately] |
|||||||||||||||||||||||||||
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|
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|
Bankers : |
·
Bank of America N.A. ·
Bank of Baroda ·
Bank of India ·
Canara Bank ·
Central Bank of India ·
HDFC Bank Limited ·
Standard Chartered Bank ·
State Bank of India ·
Union Bank of India |
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
Facilities : |
Secured Borrowings : Secured Non Convertible Debentures of Rs. 4000.000 Millions carrying an
interest rate of 11.95% are for a period of seven years and are repayable in
three equal yearly installments commencing from December, 2013. These
debentures are secured by tangible assets of the Company at certain locations
including immovable items therein and by way of a first pari- passu charge on
the movable plant and machinery, machinery spares, tools and accessories and
other movables, both present and future (save and except book debts) situated
at certain locations of the Company. Loans and Advances on cash credit accounts from the Company's bankers
are secured by a first charge on a pari- passu basis on the whole of the
current assets of the Company namely inventories, book debts, outstanding
monies, receivables, claims etc. both present and future.
Unsecured Borrowings : Term loans from banks include External Commercial Borrowings of (i) Rs. 15262.500 Millions carrying a margin over three month USD
Libor and are repayable after five years and one day from the date of
respective availment of loan i.e. Rs. 7631.300 Millions in February, 2016,
Rs. 5087.500 Millions in August, 2016 and Rs. 2543.700 Millions in September,
2016. (ii) Rs. 2384.900 Millions carrying a margin over six month JPY Libor
is for a period of five years and one day. This loan is repayable in three
equal annual installments commencing from August, 2012. The installment
payable in August, 2012 is included under current maturities of long term
debts. Fixed deposits are repayable after three years from the date of
deposit and carry an interest rate of 8.00% and 9.75%. Other Loans includes deferred sales tax loan which is interest free
and repayable in five equal installments after ten years from the year of
availment of respective loan. Fixed deposits are for a period of one year and carry an interest rate
of 7.00% and 8.50%. |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Deloittee Haskins and Sells Chartered Accountants |
|
Address : |
12, Dr. Annie Besant Road, Opposite, Shiv Nagar Estate, Worli, Mumbai-400018,
Maharashtra, India |
|
|
|
|
Subsidiaries: |
·
Mahindra Engineering and Chemical Products
Limited ·
Mahindra Steel Service Centre Limited ·
Mahindra First Choice Wheels Limited ·
Mahindra USA Inc. ·
Mahindra Gujarat Tractor Limited ·
Mahindra Shubhlabh Services Limited ·
Mahindra and Mahindra South Africa (Proprietary)
Limited ·
Mahindra Engineering Services Limited ·
Mahindra Gears andTransmissions Private Limited ·
Mahindra Overseas lnvestment Company (Mauritius)
Limited ·
Mahindra Europe S.r.1. ·
Mahindra (China) Tractor Company Limited ·
Mahindra-BT lnvestment Company (Mauritius)
Limited ·
Mahindra Inter trade Limited ·
Mahindra Middle East Electrical Steel Service
Centre (FZC) ·
Mahindra Consulting Engineers Limited ·
Mahindra Holidays & Resorts lndia Limited ·
Mahindra Holidaysand Resorts USA Inc. ·
MHR Hotel Management GmbH ·
Mahindra Hotels and Residences lndia Limited ·
Mahindra Holdings Limited ·
NBS lnternational Limited ·
Mahindra Ugine Steel Company Lirnited ·
Mahindra and Mahindra Financial Services Limited ·
Mahindra Insurance Brokers Limited ·
Mahindra Rural Housing Finance Limited ·
Bristlecone Limited ·
Bristlecone Inc. ·
Bristlecone UK Limited ·
Bristlecone lndia Limited ·
Bristlecone (Singapore) Pte. Limited ·
Bristlecone GmbH ·
Bristlecone (Malaysia) sdn. Bhd. ·
Mahindra Automobile Distributor Private Limited ·
Mahindra Distributor Private Limited ·
Mahindra Navistar Automotives Limited ·
Mahindra Engineering Services (Europe) Limited ·
Mahindra Engineering GmbH ·
Mahindra Lifespace Developers Limited ·
Mahindra Infrastructure Developers Limited ·
Mahindra World City (Jaipur) Limited ·
Mahindra Integrated Township Limited ·
Mahindra Residential Developers Limited ·
Mahindra World City Developers Limited ·
Mahindra World City (Maharashtra) Lirnited ·
Knowledge Township Limited ·
Mahindra Vehicle Manufacturers Limited ·
Mahindra Logistics Limited ·
Mahindra Forgings Limited ·
Mahindra Forgings International Limited ·
Mahindra Forgings Europe AG ·
Gesenkschmiede Schrieider GmbH ·
JECO-Jellinghaus GmbH ·
Falkenroth Urnforrntechnik GmbH ·
Stokes Group Limited ·
Jensand Limited ·
Stokes Forgings Dudley Limited ·
Stokes Forgings Limited ·
Mahindra Forgings Global Limited ·
Schoneweiss and Company GmbH ·
Mahindra Hinoday Industries Limited ·
Mahindra Navistar Engines Private Limited ·
Mahindra Aerospace Private Limited ·
Heritage Bird (M) Sdn.Bhd, ·
Mahindra First Choice Services Limited ·
Mahindra Graphic Research Design S.r.1. ·
Mahindra Gears International Limited ·
Mahindra Gears Global Limited ·
Mahindra Gears Cyprus Limited ·
Metalcastello 5.p.A. ·
Mahindra Bebanco Developers Limited ·
Industrial Township (Maharashtra) Limited ·
Crest Geartech Private Limited ·
Engines Engineering S.r.1. (upto 206thSeptember, 2011) ·
EFF Engineering S.r.1. (upto 26th September, 2011) ·
Mahindra Business and Consulting services Private Limited ·
Mahindra Two Wheelers Limited ·
Mahindra Automotive Australia Pty. Limited ·
Mahindra United Football Club Private Limited ·
Defence Land Systems India Private Limited ·
Mahindra Yueda (Yancheng)Tractor Company Limited ·
Mahindra Electrical Steel Private Limited
(formerly known as ·
Mahindra Electrical Steel Limited) ·
Raigad Industrial and Business Park Limited ·
Retail Initiative Holdings Limited ·
Mahindra Retail Private Limited ·
Mahindra Technologies Services inc. ·
Mahindra Punjab Tractors Private Limited ·
Mahindra EcoNova Private Limited ·
Mahindra Conveyor Systems Private Limited ·
BAH Hotelanlagen AG ·
Mahindra Aerospace Australia Ply. Limited ·
Aerostaff Australia Pty. Limited ·
Mahindra Reva Electric Vehicles Private Limited ·
Bristlecone Consulting Limited ·
Anthurium Developers Limited ·
Watsonia Developers Limited ·
Gipp Aero investments Pty. Limited ·
Gippsaero Pty. Limited ·
GA8 Airvan Pty. Limited ·
GA2OO Pty. Limited ·
Airvan Flight Services Pty. Limited ·
Gipp Aero International Pty. Limited (upto
23rdb March, 2012) ·
Nomad TC Pty. Limited ·
Mahindra Emirates Vehicle Armouring FZ-LLC ·
Mahindra BPO Services Private Limited ·
Mahindra Aerostructures Private Limited ·
Ssangyong Motor Company Limited ·
Ssangyong European Parts Center B.V. ·
Ssangyong Motor (Shanghai) Company Limited ·
Ssangyong (Yizheng) Auto Parts Manufacturing
Company ·
Limited ·
Mahindra EPC Services rivate Limited ·
Bristlecone lnternational AG (w.e.f. 21st June, 2011 ) ·
EPC lndustrie Limited (w.e.f. 8th September, 2011) ·
Mahindra Telecommunications Investment Private
Limited ·
(w.e.f. 29th September, 2011 ) ·
Navyug Special Steel Private Limited (w.e.f. 11thNovember, 2011) ·
Bell Tower Resorts Private Limited (w.e.f. 21st December, 2011) ·
Mahindra Racing S.r.1. (w.e.f. 23rd January, 2012) ·
Swaraj Automotives Limited (w.e.f. 3rd February,
2012) |
|
|
·
|
|
Associates: |
·
Mahindra Composites Limited ·
Swaraj Automotives Limited (upto 2nd February, 2012) ·
Swaraj Engines Limited ·
Mahindra and Mahindra Contech Limited ·
Vayugrid Marketplace Services Private Limited |
|
|
·
|
|
Joint Venture : |
·
Tech Mahindra Limited ·
Mahindra Sona Limited |
|
|
·
|
|
Joint Venture of
a Subsidiary : |
·
Mahindra Solar One Private Limited ·
Mahindra Water Utilities Limited |
|
|
·
|
|
Welfare Funds : |
·
M&M Benefit Trust ·
M&M Employees'Welfare Fund ·
M&M EmployeesJFarm Equipment Sector Employees
'Welfare Fund ·
Mahindra World School Education Trust |
CAPITAL STRUCTURE
After 08.08.2012
Authorised Capital : Rs.6250.000
Millions
Issued, Subscribed & Paid-up Capital : Rs.3069.904 Millions
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1200000000 |
Equity Shares |
Rs.5/- each |
Rs.6000.000 Millions |
|
2500000 |
Unclassified Share |
Rs.100/- each |
Rs.250.000 Millions |
|
|
Total |
|
Rs.6250.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
613974839 |
Equity Shares |
Rs.5/- each |
Rs.3069.900 Millions |
|
24945194 |
Less: Equity Shares of Rs.5 each fully paid up issued to ESOP Trust
but not allotted to employees |
Rs.5/- each |
Rs.124.700 |
|
|
Total |
|
Rs.2945.200
Millions |
A) Reconciliation of number of Ordinary (Equity) Shares and amount
outstanding:
|
|
3.03.2012 |
|
|
|
No. of Shares |
Rs. in Millions |
|
Issued and Subscribed: |
|
|
|
Balance as at the beginning of the year |
613940109 |
3069.700 |
|
Add: Shares issued under Scheme of
Arrangement with Mahindra Shubhlabh Services Limited |
34730 |
0.200 |
|
Balance as at the end of the year |
613974839 |
3069.900 |
|
Less:Shares issued to ESOP Trust but not
allotted to Employees |
24945194 |
124.700 |
|
Adjusted: Issued and Subscribed Share Capital |
589029645 |
2945.200 |
B) The equity shares of the Company have rights
and restrictions as prescribed under law, In particular the Companies Act,
1956.
C) Details of shares held by shareholders
holding more than 5% of the aggregate shares in the company:
|
|
3.03.2012 |
|
|
Name of the Shareholders |
No. of Shares |
Rs. in Millions |
|
Life Insurance Corporation of India |
84714974 |
13.80 |
|
M and M Benefit Trust |
51835214 |
8.44 |
|
The Bank of New York Mellon (for GDR
holders) |
34293405 |
5.59 |
D) Issued and Subscribed Share Capital Includes
an aggregate of 66193634 Ordinary (Equity) Shares of Rs.5 each allotted as
fully paid – up pursuant to schemes of Arrangement without payment having been
received in cash , for a period of five years immediately preceding 31st
March, 2012.
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 |
2945.200 |
2936.200 |
2829.500 |
|
|
2] Share Capital Suspense Account |
0.000 |
0.200 |
0.000 |
|
|
3] Employee Stock Options Outstanding |
0.000 |
339.500 |
80.100 |
|
|
4] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
5] Reserves & Surplus |
118765.700 |
99858.000 |
75358.100 |
|
|
6] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
121710.900 |
103133.900 |
78267.700 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
4001.800 |
4072.300 |
6024.500 |
|
|
2] Unsecured Loans |
27740.400 |
19980.600 |
22777.000 |
|
|
TOTAL BORROWING |
31742.200 |
24052.900 |
28801.500 |
|
|
DEFERRED TAX LIABILITIES |
5271.300 |
3543.800 |
2403.300 |
|
|
FOREIGN CURRENCY MONETARY ITEM TRANSLATION DIFFERENCE ACCOUNT |
0.000 |
0.000 |
34.600 |
|
|
|
|
|
|
|
|
TOTAL |
158724.400 |
130730.600 |
109507.100 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
42860.200 |
33859.900 |
27385.200 |
|
|
Capital work-in-progress |
5699.300 |
9858.600 |
9642.000 |
|
|
Intangible Assets Under Development |
2248.000 |
0.000 |
0.0000 |
|
|
|
|
|
|
|
|
INVESTMENT |
103104.600 |
93252.900 |
63980.200 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
FOREIGN CURRENCY
MONETARY ITEM TRANSLATION DIFFERENCE ACCOUNT |
664.00 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
23583.900
|
16942.100 |
11887.800 |
|
|
Sundry Debtors |
19883.600
|
13547.200 |
12580.800 |
|
|
Cash & Bank Balances |
11884.300
|
6146.400 |
17432.300 |
|
|
Other Current Assets |
5115.200
|
1067.400 |
508.700 |
|
|
Loans & Advances |
24076.700
|
23731.700 |
18055.500 |
|
Total
Current Assets |
84543.700 |
61434.800 |
60465.100 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
47961.800
|
45939.700 |
32600.900 |
|
|
Current Liabilities |
13980.900
|
1677.100 |
1399.100 |
|
|
Provisions |
18452.700
|
20058.800 |
17965.400 |
|
Total
Current Liabilities |
80395.400 |
67675.600 |
51965.400 |
|
|
Net Current Assets |
4148.300
|
(6240.800) |
8499.700 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
158724.400 |
130730.600 |
109507.100 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
|
|
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
|
|
318535.200 |
|
|
|
Income from Other Operations |
|
|
0.000 |
|
|
|
Other Income |
|
|
4657.900 |
|
|
|
TOTAL |
|
|
323193.100 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Material Consumed |
|
|
188045.200 |
|
|
|
Purchase of Stock in Trade |
|
|
52925.800 |
|
|
|
Changes in Inventories of Finished Goods, Work in Progress, Stock in
Trade and Manufactured Components |
|
|
(5973.300) |
|
|
|
Employee Benefits Expenses |
|
|
17017.800 |
|
|
|
Cost of Manufactured Products Capitalised |
|
|
(735.300) |
|
|
|
Other Expenses |
|
|
29547.800 |
|
|
|
TOTAL |
|
|
280828.000 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
|
|
42365.100 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
|
|
1627.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION |
|
|
40737.600 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
|
|
5761.400 |
|
|
|
|
|
|
|
|
|
|
Profit Before
Exceptional Items and Tax |
|
|
34976.200 |
|
|
|
|
|
|
|
|
|
Less/ Add |
Exceptional Item |
|
|
1082.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
|
|
36058.900 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
|
|
7270.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX |
|
|
28788.900 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
|
|
61585.400 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Debenture Redemption Reserve |
|
|
142.800 |
|
|
|
General Reserve |
|
|
3000.000 |
|
|
|
Proposed Dividend |
|
|
7674.800 |
|
|
|
Income-tax on Proposed Dividend |
|
|
101.300 |
|
|
BALANCE CARRIED
TO THE B/S |
|
|
79455.400 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of goods on F.O.B. basis |
|
|
17669.500 |
|
|
|
Interest |
|
|
143.700 |
|
|
|
Others (freight etc.) |
|
|
763.000 |
|
|
TOTAL EARNINGS |
|
|
18576.200 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
|
|
26.000 |
|
|
|
Components, Spare Parts |
|
|
6365.400 |
|
|
|
Capital Goods |
|
|
1501.100 |
|
|
|
Items imported for Resale |
|
|
724.700 |
|
|
TOTAL IMPORTS |
|
|
8617.200 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic
|
|
|
48.97 |
|
|
|
Diluted |
|
|
46.89 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Sales |
|
227575.100 |
180380.500 |
|
|
|
Income from Operations |
|
7362.100 |
5640.600 |
|
|
|
Other Income |
|
3095.200 |
1993.500 |
|
|
|
TOTAL (A) |
|
238032.400 |
188014.600 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw Materials, Finished and Semi-finished Products |
|
162639.400 |
123329.200 |
|
|
|
Excise Duty |
|
(6.900) |
132.900 |
|
|
|
Personnel |
|
14455.600 |
11984.700 |
|
|
|
Other Expenses |
|
23796.000 |
21617.400 |
|
|
|
Cost of Manufactured Products Capitalised |
|
(508.700) |
(595.500) |
|
|
|
Exceptional Items |
|
(1174.800) |
(907.500) |
|
|
|
TOTAL (B) |
|
199200.600 |
155561.200 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
|
38831.800 |
32453.400 |
|
|
|
|
|
|
|
|
|
Less |
INTEREST,
COMMITMENT AND FINANCE CHARGES (NET) (D) |
|
(502.900) |
278.100 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
|
39334.700 |
32175.300 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
|
4138.600 |
3707.800 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
|
35196.100 |
28467.500 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
|
8575.100 |
7590.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
|
26621.000 |
20877.500 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
|
45883.700 |
33653.200 |
|
|
|
|
|
|
|
|
|
Add |
AMOUNT
TRANSFERRED ON AMALGAMATION OF MAHINDRA HOLDINGS AND FINANCE LIMITED |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
Add/ Less |
TRANSFER
FROM/(TO) DEBENTURE REDEMPTION RESERVE (NET) |
|
357.100 |
(309.500) |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
General Reserve |
|
2750.000 |
2100.000 |
|
|
|
Credit of income – tax on proposed
dividend of previous year |
|
0.000 |
0.000 |
|
|
|
Proposed Dividend |
|
7060.800 |
5495.200 |
|
|
|
Income-tax on Proposed Dividend |
|
965.600 |
742.300 |
|
|
BALANCE CARRIED
TO THE B/S |
|
62085.400 |
45883.700 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of goods on F.O.B. basis |
|
10520.600 |
7193.700 |
|
|
|
Interest |
|
97.200 |
96.000 |
|
|
|
Others (freight etc.) |
|
381.200 |
324.700 |
|
|
TOTAL EARNINGS |
|
10999.000 |
7614.400 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
|
16.600 |
11.700 |
|
|
|
Components, Spare Parts |
|
3683.000 |
2258.600 |
|
|
|
Capital Goods |
|
2751.200 |
986.100 |
|
|
|
Items imported for Resale |
|
241.200 |
270.100 |
|
|
TOTAL IMPORTS |
|
6692.000 |
3526.500 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) Basic Diluted |
|
46.21 44.33 |
37.97 35.61 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2012 |
30.09.2012 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
93673.900 |
98129.600 |
|
Total Expenditure |
|
82579.600 |
86940.400 |
|
PBIDT (Excl OI) |
|
11094.300 |
11189.200 |
|
Other Income |
|
598.500 |
3228.900 |
|
Operating Profit |
|
11692.800 |
14418.100 |
|
Interest |
|
460.200 |
474.700 |
|
PBDT |
|
11232.600 |
13943.400 |
|
Depreciation |
|
1548.400 |
1783.900 |
|
Profit Before Tax |
|
9684.200 |
12159.500 |
|
Tax |
|
2427.800 |
3141.500 |
|
Profit After Tax |
|
7256.400 |
9018.000 |
|
Net Profit |
|
7256.400 |
9018.000 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
8.91
|
11.18
|
11.10
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
11.32
|
15.47
|
15.78
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
28.30
|
36.93
|
32.40
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.30
|
0.34
|
0.36
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.92
|
0.89
|
1.03
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.05
|
0.91
|
1.16
|
LOCAL AGENCY FURTHER INFORMATION
|
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 |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
No |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
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 |
No |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
No |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
LITIGATION DETAILS:
|
Case Details Bench:-Bombay |
|
Stamp No:- FAST/17071/2012 Filing Date:-27.06.2012 Reg. No.:-FA/1134/2012 Reg. Date:-19/07/2012 |
|
Petitioner:- UNITED INDIA INSURANCE CO. LTD -
Respondent: MR SURESHKUMAR PARASNATH SINGH Petn. Adv:- K.W. VITONDE District:- MUMBAI |
|
Bench:- Single Status:- Pre-Admission Next Date:- 25/10/2012
Stage:- FOR ADMISSION – FRESH [CIVIL SIDE MATTERS] Coram:- ACCORDING TO SITTING LIST Last Date:- 10/08/2012
Stage:- FOR ADMISSION – FRESH [CIVIL SIDE MATTERS] Last Coram:- HON’BLE SMT.JUSTICE
R.P.SONDURBALDOTA |
|
Act:- Workmen’s
Compensation Act Under Section:- 30 |
Outlook:
India's economic
performance in the first quarter of the current fiscal has been weak.
Industrial volumes were virtually flat; more worryingly, capital goods
production witnessed a contraction for the fourth successive quarter,
reflecting the weak investment sentiment prevailing in the economy. Inflation,
at 7.25% in June 2012, was high and is likely to remain so in the near future,
given the poor monsoons this season. Also, despite the 20% drop in the rupee's
value against the US dollar, exports during this quarter were 2.5% lower than
the levels registered in April-June 2011. The risks of a full fledged crisis in
the euro zone are high and rising, the US economic recovery is looking
increasingly more fragile, China is slowing and, given geopolitical tensions in
the Middle East, oil markets remain in flux. The drought-like conditions
prevailing in several states today has only added to the risks facing domestic
companies. Our near term outlook on the economy is cautious and watchful.
FINANCIAL HIGHLIGHTS:
The Financial Year 2011-12 was beset
with challenges. Global macro risks, stemming from sovereign debt issues in the
advanced economies and turmoil in the Middle East, remained high through the
year. At the same time, a weak economic environment at home- rising fiscal and
current account deficits, persistently high inflation, rising interest rates, a
weakening currency and prolonged policy and regulatory uncertainty - added to
the risks facing domestic firms and households. Demand as a consequence, turned
sluggish and the country's economic growth dropped to 6.9% this year (as per
advance estimates put out by the CSO), considerably below the 8.4% growth
registered in the previous two fiscals.
While the agricultural and services
sectors displayed some resilience, the unsettled global outlook and constrained
domestic economic environment took a particularly heavy toll on industrial
activity during the year. Environmental hurdles, corruption charges and slowing
Government approvals brought mining activity to a standstill which severely
constrained power generation and other core infrastructure activities in the
country. Hemmed in by structural impediments and rising input costs on the one
hand and weakening domestic and external demand on the other, manufacturing
activity suffered a severe loss in momentum with volume growth dropping from
7.7% year-on-year in the first quarter of the Financial Year 2012 to 0.2% in
the fourth quarter of the Financial Year 2012. Over all, industrial production
grew a paltry 2.8% in 2011-12, in sharp contrast to the 8.2% increase
registered in the previous fiscal.
FINANCIAL PERFORMANCE
In these challenging times, the
Automotive and Farm Divisions of The Company have secured good performance
reflecting in substantial growth in the net income of the Company by 35.3% to
Rs.323190.000 Millions in the year under review from Rs.238940.000 Millions in
the previous year.
Consequent to this commendable
performance, the Profit for the year before Depreciation, Finance Costs,
Exceptional items and Taxation recorded an increase of 9.0% at Rs.42370.000
Millions as against Rs.38880.000 Millions in the previous year. Similarly, Profit
after tax clocked an increase of 8.1% at Rs.28790.000 Millions as against
Rs.26620.000 Millions in the previous year. The Company continues with its
rigorous cost restructuring exercises and efficiency improvements which have
resulted in significant savings through continued focus on cost controls,
process efficiencies and product innovations that exceed customer expectations
in all areas thereby enabling the Company to maintain profitable growth in the
current economic scenario.
PERFORMANCE REVIEW
AUTOMOTIVE DIVISION:
The Company's Automotive Division
recorded total sales of 3,98,357 vehicles (including Verito) and 70,988
three-wheelers as compared to 2,99,342 vehicles (including Verito) and 64,740
three-wheelers in the previous year registering a growth of 33.1% and 9.7% in
vehicle sales and three-wheeler sales respectively.
On the domestic sales front, the
Company sold 2,45,700 Passenger Vehicles [including 2,02,217 Utility Vehicles
(UVs), 25,644 Multi Purpose Vehicles (MPVs) and 17,839 Cars] registering a
growth of 36.4% over the previous year's volumes of 1,80,180 Passenger Vehicles
[including 1,69,205 UVs, 966 MPVs and 10,009 Cars by Mahindra Automobile
Distributor Private Limited] (for a meaningful comparison, sales numbers of
Verito Car is also added in the previous year's sales numbers). In the
commercial vehicle segment, The Company sold 1,27,029 vehicles [including
53,895 vehicles < 2T GVW and 73,134 vehicles between 2-3.5T GVW] registering
a growth of 21.4% over the previous year's volume of 1,04,622 commercial
vehicles [including 43,717 vehicles < 2T GVW and 60,905 vehicles between
2-3.5T GVW]. In the three-wheeler segment, The Company sold 67,440 three-
wheelers registering a growth of 8.5% over the previous year's volume of 62,142
three-wheelers.
The Company's UV sales volume grew
by 19.5% and The Company strengthened its leadership position of the domestic
UV market by posting a market share of 55.1% against the previous year market
share of 53.7%. During this year, Bolero posted record sales and became the
first SUV in India to cross the milestone of 1 lakh sales in a year. Bolero
retains the title of India's largest selling SUV for the 6th consecutive year.
It is also the 7th highest selling passenger vehicle in India. The Scorpio
continues to strengthen its iconic status with sales of over 50,000 units in
the year.
In September, 2011, the Company
launched the XUV5OO. The XUV5OO is loaded with enhanced technology and safety
features, a strong diesel engine, luxurious interiors and unprecedented
refinement, all at a very competitive price. Twenty two awards received from
various Media Groups bear testimony to the mass appeal and acceptance of the
product. The XUV5OO was launched simultaneously in India and South Africa - a
first for the Indian Automotive Industry.
With an aim to strengthen its
product portfolio and enter new segments, the Company successfully launched
many new products over the past two years. As a result, the Company's share of
the Indian Automotive market stood at 11.5% in 2011-12 as compared to 9.6% in
the previous year.
In the Overseas market, The Company
registered a volume growth of 70.2% over the previous year. This growth was
driven by volume growth in the SAARC countries, Chile and South Africa. During
the year, the Company sold 25,628 vehicles [including 157 vehicles sourced from
Mahindra Navistar Automotives Limited ("MNAL")] and 3,548
three-wheelers in the Overseas market as compared to 14,540 vehicles [including
305 vehicles sourced from MNAL] and 2,598 three-wheelers in the previous year.
Spare parts sales for the year stood
at Rs.8739.900 Millions (including Exports of Rs.554.7000 Millions) as compared
to Rs.6669.700 Millions (including Exports of Rs.283.000 Millions) in the
previous year, registering a growth of 31.0%.
FARM DIVISION:
The Company's Farm Division
(including the Swaraj Division) recorded sales of 2,36,666 tractors as against
2,14,325 tractors sold in the previous year, recording a growth of 10.4%.
In the Financial Year 2012, the
Indian tractor industry continued to enjoy double digit growth. The domestic
market recorded sales of around 5,35,210 tractors as compared to 4,80,377
tractors in the previous year, recording a growth of 11.4%.
The Company's performance was in
line with the tractor industry with domestic sales of 2,22,944 tractors as
compared to 2,02,513 tractors in the previous year recording a growth of 10.1%.
The Company's market share now stands at 41.4% as compared to 42% in the
previous financial year, thus completing 29 years of leadership in the Indian
tractor industry. The Company's tractor exports grew by 16.2% to reach 13,722
tractors as compared to 11,812 tractors exported in the previous year.
Beyond agriculture, in the power generation
space under the Mahindra Powerol Brand, the Company sold 29,122 engines in the
current financial year as against 27,748 engines in the previous year. The
growth in volume was achieved inspite of adverse market conditions in the
Telecom Sector. The Company, while retaining its leadership position in the
genset market catering to the telecom space, has focused its presence in the
retail segment. It strengthened its position in the fragmented inverter/Home
UPS market and sold 83,993 units against 47,217 units in the previous year, a
growth of 78%.
FINANCE
The Financial Year 2011-12 witnessed
a period of uncertainty in both the global and Indian economic scenarios. The
year saw the US recovery being slow, Europe under the shadow of a lengthened sovereign
debt crisis and China's growth scaled down. On the domestic front, tight
liquidity conditions prevailed during most of the year, with short term
interest rates on an upsurge. Fiscal and current account deficits and capital
flows dominated financial markets activity bringing volatilities to the fore.
Reserve Bank of India ("RBI") has in the last few months cut the CRR
by 125 bps and also Repo Rate by 50 bps to infuse liquidity and stem the
faltering growth of the Indian economy. Despite the recent monetary actions,
liquidity is expected to remain tight in the short term given the large
Government of India debt programme in the Financial Year 2013 budget proposals.
RBI surprised the market by a larger than expected Repo cut, but indicated they
would be constrained in providing further reductions to boost growth.
To meet the challenges of the
daunting environment, the Company continued to focus on managing cash
efficiently and ensured that it had adequate liquidity and back-up lines of
credit. The Company successfully unlocked about Rs.7500.000 Millions from its
working capital by employing Non-fund based limits of banks to release
statutory refunds under a facility on offer by a State Government. The Company
also actively assisted its business partners including vendors by various
initiatives in channel management and making available an e-enabled structured
payment platform. The vendor initiative will enable freeing up working capital
relating to Rs.30000.000 Millions worth of annual supplies to the Company.
During the year, the Company raised
External Commercial Borrowings of US$ 150 million to finance its growth plans.
The funds were raised for average maturity of 5 years at an opportune time at
bench mark rates.
The Company follows a prudent financial
policy and aims to maintain optimum financial gearing at all times. The
Company's total Debt to Equity Ratio was 0.29 as at 31st March, 2012.
The Company has been rated by
CRISIL, ICRA Limited ("ICRA") and Credit Analysis & Research
Limited ("CARE") for its banking facilities under Basel II norms.
CRISIL, ICRA and CARE have all re-affirmed the highest rating for The Company's
Short Term facilities. During the year,
CRISIL maintained the rating for The
Company's Long Term Banking facilities to "AA+ /Stable", ICRA
maintained the Long Term Rating of "LAA+ /Stable" and CARE also
maintained the rating "CARE AA+ "
The Company's Bankers continue to rate The Company as a prime customer and extend facilities/services at prime rates.
DIRECTORS
At the Meeting of the Board of
Directors of the Company held on 30th May, 2012, the Chairman Mr. Keshub
Mahindra expressed his intention to relinquish his position as Chairman and
Director of the Company and requested the Board to accept this request and make
his retirement as Chairman and Director of the Company effective at the
conclusion of the next Annual General Meeting.
The Board with great reluctance and
utmost regret accepted the Chairman's request to relinquish his office as
Chairman and Director of the Company at the conclusion of the 66th Annual
General Meeting of the Shareholders which is scheduled to be held on 8th
August, 2012. The Board however, requested the Chairman to accept the position
as Chairman Emeritus of the Company so that his advice and guidance would
continue to be available to the Company. The Chairman thanked the Board and
stated that this would indeed be a great honour which he would accept with
humility.
The Board Members unanimously
complimented the Chairman on the illustrious services rendered by him to the
Company, the Industry and the Nation. The Board recalled that Mr. Keshub
Mahindra joined the Board in 1948 and became the Chairman in 1963. His
continued Membership of the Board for a little over six decades and as Chairman
for close to 50 years is unparalleled in the annals of Corporate History.
During this period, the Mahindra
Group grew from a manufacturer of automobiles to a federation of companies operating
in a range of businesses which include automobiles, tractors, auto components,
information technology, real estate, financial services and hospitality. Over
the years, the Company under his leadership successfully created business
alliances with global majors such as the Willys Corporation, Mitsubishi,
International Harvester, United Technologies, British Telecom, Ford, Renault
and many others, laying the foundation for the emergence of the Group as an
Indian multi-national.
While pursuing the growth objectives
of the Company, Mr. Keshub Mahindra never lost sight of the larger interests of
the nation. Even before the buzz word of Corporate Social Responsibility came
into vogue in the Corporate World, the Mahindra Group quietly and unobtrusively
developed a high sense of philanthropy on a wide range of social issues and
more particularly education to benefit diverse sections of the Society.
An important contribution of the
Chairman had been to develop and mentor a broad range of leaders in the Company
to carry on the legacy inherited over six decades of exceptional governance.
The depth of managerial talent that is available in the Company has been a
major factor for the continued growth of the Company.
The Board Members placed on record
their deep sense of gratitude and appreciation for all that Mr. Keshub Mahindra
had given to the Company during the last six decades and wished him continued
good health and active retirement for years to come.
In the light of Mr. Keshub Mahindra
relinquishing his office as the Chairman and Director of the Company, the Board
after due deliberations unanimously decided that Mr. Anand G. Mahindra, Vice-
Chairman and Managing Director of the Company, in recognition of the immense
contribution that he had made to the growth of the Company and the vast
experience that he had gathered during his over two decades of association with
the Company, be elevated to the position of the Chairman. The appointment of
Mr. Anand G. Mahindra as the Chairman would become effective after Mr. Keshub
Mahindra ceases to be the Chairman and Director at the conclusion of the
forthcoming Annual General Meeting scheduled to be held on 8th August, 2012 and
Mr. Anand G. Mahindra would thereafter function as the Chairman and Managing
Director of the Company.
Mr. Anand G. Mahindra commenced his
professional career with Mahindra Ugine Steel Company Limited in 1989 and then
joined the Company in 1991 as Deputy Managing Director. He has been largely
credited for the Company's diversification into new businesses viz. real estate
and hospitality management. In April, 1997, Mr. Anand G. Mahindra was appointed
as Managing Director and in January, 2001 was given additional responsibility
of Vice-Chairman.
Life Insurance Corporation of India
withdrew the nomination of Mr. Arun Kanti Dasgupta, as a Nominee Director with
effect from 9th August, 2011. Consequently, Mr. Dasgupta ceased to be a
Director of the Company.
The Board has placed on record its
sincere appreciation of the valuable services rendered by Mr. Dasgupta during
his tenure as a Director of the Company.
Mr. Deepak S. Parekh, Mr. A. K.
Nanda, Mr. Narayanan Vaghul and Mr. R. K. Kulkarni retire by rotation and,
being eligible, offer themselves for re-appointment.
The Board of Directors at its
Meeting held on 20th March, 2012 have pursuant to the approval of the
Governance, Remuneration and Nomination Committee of the Board and subject to
the approval of the Members to be obtained at the ensuing Annual General
Meeting of the Company, re-appointed Mr. Anand G. Mahindra as the Managing
Director for a period of 5 years with effect from 4th April, 2012 to 3rd April,
2017 and Mr. Bharat Doshi as the Executive Director for a period with effect
from 28th August, 2012 to 31st March, 2015.
Pursuant to the recommendation of
the Governance, Remuneration and Nomination Committee, Dr. Vishakha N. Desai
and Mr. Vikram Singh Mehta were appointed as Additional Directors of the
Company with effect from 30th May, 2012 at the Meeting of the Board of
Directors of the Company held on 30th May, 2012.
Dr. Vishakha N. Desai is President
and CEO of Asia Society, a leading global organisation committed to
strengthening partnerships among the people, leaders and institutions of Asia
and the United States. Dr. Desai holds a B.A. in Political Science from Bombay
University and an M.A. and Ph.D. in Asian Art History from the University of
Michigan.
Mr. Vikram Singh Mehta is the
Chairman of the Shell Group of Companies in India since 1994. Mr. Mehta
completed his Bachelors' Degree in Mathematics (Hons.) from St. Stephens
College, Delhi University. He also has a Master's Degree in Politics and
Economics (Hons.) from Magdalen College, Oxford University, UK and a Master's
Degree in Energy Economics from the Fletcher School of Law and Diplomacy, Tufts
University in USA.
Dr. Desai and Mr. Mehta hold office
upto the date of the ensuing Annual General Meeting of the Company.
The Company has received a Notice
from a Member signifying his intention to propose Dr. Desai and Mr. Mehta for
the office of Directors at the forthcoming Annual General Meeting.
SUBSIDIARY COMPANIES
The subsidiary companies of the
Company continue to contribute to the overall growth of the Company. Major subsidiaries
such as Mahindra and Mahindra Financial Services Limited with a 30.6% growth in
its consolidated profits and Mahindra Lifespace Developers Limited with a 10.1%
growth in its consolidated profits deserve special mention. The consolidated
Group Profit for the year after exceptional items, prior period adjustments and
tax and after deducting minority interests is Rs.31266.600 Millions as against
Rs.30797.300 Millions earned in the previous year.
During the year, Bristlecone
International AG, EPC Industrie Limited, Mahindra Telecommunications Investment
Private Limited, Navyug Special Steel Private Limited, Bell Tower Resorts
Private Limited, Mahindra Racing S.r.l. and Swaraj Automotives Limited became
subsidiaries of The Company.
During the year, Engines Engineering
S.r.l., Eff Engineering S.r.l. and Gipp Aero International Pty. Limited ceased
to be subsidiaries of the Company.
Subsequent to the year end, Mahindra
Defence Naval Systems Private Limited was formed as a wholly owned subsidiary
of the Company.
The Statement pursuant to section
212 of the Companies Act, 1956 containing details of the Company's subsidiaries
is attached.
In accordance with the General
Circular issued by the Ministry of Corporate Affairs, Government of India, the
Balance Sheet, Profit and Loss Account and other documents of the subsidiary
companies are not being attached with the Balance Sheet of the Company. The
Company will make available the Annual Accounts of the subsidiary companies and
the related detailed information to any Member of the Company who may be
interested in obtaining the same. Further, the Annual Accounts of the
subsidiaries would also be available for inspection by any Member at the Head
Office of the Company and at the Office of the respective subsidiary companies,
during working hours upto the date of the Annual General Meeting.
MANAGEMENT DISCUSSION AND ANALYSIS:
Mahindra and Mahindra Limited
("M&M") or ("Mahindra") is the flagship brand of the
Mahindra Group which consists of 132 companies with diverse businesses across
the globe and aggregate revenues of US $ 15.4 billion. The year 201112was a
challenging one with many shocks in the global and domestic environment. The
Company was undeterred by these difficulties, and fortified by its Rise
philosophy of accepting no limits, thinking innovatively and driving positive
change in the lives of others has raised the bar for itself in its global
ambitions. In December 2011, the Group articulated its aspiration statement to
make Mahindra one of the world's 50 most admired brands by 2021, by helping
people everywhere to Rise.
The Automotive and Farm Equipment
Sectors of M&M continued to work together with distinct and strong customer
focus at the front end and structured synergy at the backend. In Financial Year
2011-2012, The Company sold 4,69,345 vehicles (a growth of 28.9%over the
previous year) while tractor sales added up to 2,36,666 tractors (a growth
of10.4% over the previous year).
The Automotive and Farm Equipment
Sectors, along with their subsidiary companies and joint ventures, achieved
global sales of 8,73,646 vehicles and tractors (5,98,370 vehicles and 2,75,276
tractors).
The Automotive and Farm Equipment
Sectors, along with their subsidiary companies and joint ventures, achieved
global sales of 8,73,646 vehicles and tractors (5,98,370 vehicles and 2,75,276
tractors).
Industry Structure
The Indian automotive industry
comprises of a number of Indian-origin and multinational players with varying
degree of presence in different segments. Today, nine of the top ten global
automotive manufacturers have a presence in India which clearly points to its
importance as a strategic market.
Similarly, the domestic tractor
market also has a mix of Indian-origin and international manufacturers and is
segmented by horsepower into the sub 30 HP segment, the30-40 HP segment, the
40-50 HP segment and the higher segment of above 50 HP.
Industry Overview and Trends Global
Automotive Industry
After witnessing robust growth during
Calendar Year 2010, the global automotive industry once again hit a rough patch
in Calendar Year 2011. This was due to economic uncertainty in various parts of
the world, as well as the natural disasters that took place in Japan and
Thailand. During Calendar Year 2011, global automotive industry production grew
by just 3.2%, as compared to about 25.8% in Calendar Year 2010. Source:OICA
(Organization Internationale des Constructeurs d'Automobiles).
China, the growth engine of the
global automotive industry, slowed down to just 0.8% growths as against 32.4%
in the previous year. Also, during the year, USA overtook Japan as the world's
second largest automobile producer. This was the result of demand picking up in
the US market as well as the adverse impact on Japan's production due to the
earthquake in Fukushima. USA posted 11.5% growth in automotive production which
is the highest among the top five auto producing nations and second only to
Mexico, among the top ten auto producing nations.
India maintained its rank as the
world's 6th largest automobile producing country but its growth
slowed down to 10.7% in Calendar Year 2011, as compared to 34.7% in the
previous year.
Indian Automotive Industry
In spite of the challenging macroeconomic
environment -both domestic and global – the Indian automotive industry
(excluding two wheelers) crossed the 3.9 million mark and registered a growth
of 6.2% during Financial Year 2011-12. The passenger vehicle segment grew by
4.7%, with domestic sales crossing 2.6 million vehicles. Within this segment,
the passenger car segment grew by 2.2%, the multipurpose vehicle (MPV) segment
grew by 10.0%and the utility vehicle (UV) segment registered a growth of 16.5%.
The Commercial Vehicle (CV) segment
grew by 18.2%. This growth was principally driven by an increase of 27.4% in
the Light Commercial Vehicle (LCV) segment. The Medium and Heavy Commercial
Vehicles (MHCV) segment grew by 7.9%. Within the LCV segment, the growth was
greatest in the less than 2 tonne segment (growth of 31.3%) and the 2-3.5 tonne
segment (growth of 34.8%).
The three wheeler segment de-grew
2.4% during the year. The three wheeler goods segment grew by 6.3%, while the
three wheeler passenger segment witnessed a de-growth of 4.5%.
During Financial Year 2011-12, the
two-wheeler segment grew by 14.2%. Within two wheelers, scooters / scooterettes
grew by 24.5%, motorcycles / step-throughs by 12.01% and mopeds by 11.4%.
The growth across several segments
of the Indian Automotive Industry was significantly lower than projected by
SIAM (Society of Indian Automobile Manufacturers) at the beginning of the year.
This was due to factors such as uncertainty over economic growth, high vehicle
financing rates, high inflation leading to less discretionary expenses, rise in
commodity prices leading to increase in vehicle prices and hike in fuel costs.
The adverse impact on industry
growth was also because of short supply of vehicles due to prolonged labour
unrest at a major automotive manufacturer as mentioned in several media
reports, capacity shortage in various links of the automotive supply chain and
disruption of components supply from Thailand which suffered the onslaught of
floods.
Indian Tractor industry
The Indian tractor market, the world's
largest, continued on its upward trajectory to touch 5,35,210 tractors, a
growth of 11.4% over the previous year. This was on the back of two years of
high growth of 32% and 20%, respectively. While increasing cost and scarcity of
farm labour, normal monsoons and continued government support for agriculture
and rural India continued to fuel this growth, the bumper agri production from
November onwards resulted in a correction in prices of agri produce, impacting
liquidity and slowing demand in most states across the country.
Looking at the various tractor
segments, volume growth has been led mainly by two segments, namely the <30
HP segment and the >50 HP segment. In the <30 HP segment, the Mahindra
Yuvraj 215 created a space of its own, single handedly driving growth in a
category which was otherwise witnessing a decline. At the other end of the
spectrum, >50 HP - the segment of the future - grew over 15%.
Across the country, tractor growth
was concentrated around a few major states like Rajasthan with over 50% and
Gujarat and Tamil Nadu with around 25-30%. Karnataka, Uttar Pradesh, Bihar and
Maharashtra recorded single digit growth rates.
The Company's performance
Automotive Sector - towards new
frontiers
During the year under review, The Company
achieved many milestones and landmarks on its journey to becoming a globally
recognised automotive brand. The Sector launched several new products in
various segments and also received numerous awards and accolades.
In September 2011, the Sector launched
the eagerly awaited XUV500. Inspired by the world's most agile animal, the
Cheetah, the XUV500 received an overwhelming response from both customers as
well as the automotive fraternity. Designed and developed in-house by Mahindra,
it is The Company's first global SUV platform, with significant inputs on
styling and development from customers across the globe. The Mahindra XUV500
offers benefits such as aspirational style, technologically advanced features,
safety, comfortand convenience at a very competitive price. These features have
hitherto been seen only in high-end SUVs. Within just a few months of its
launch, it received 22 awards -testimony to its mass appeal and value for money
proposition. The XUV500 was launched simultaneously in India and South Africa,
a first for the Indian Automotive Industry.
The Sector - including Mahindra
Navistar Automotives Limited (MNAL), a subsidiary of the Company - achieved
overall volumes of 4,53,987 vehicles in the domestic market, a significant
growth of 26.8%. Healthy growth in UV volumes, entry into newer segments and
good growth across the entire product range are some of the major factors that
contributed to this growth.
As a result of this good
performance, The Company's market share increased to 11.5% in Financial Year
2011-12 as compared to 9.6% in the previous year.
At the forefront of the industry
• The Company strengthened its leadership position in
the domestic Utility Vehicle (UV) market by selling a record 2,02,217 UVs,
posting a growth of 19.5% over the previous year. M&M's market share in the
domestic UV market stood at 55.1 % for the Financial Year 2011 -12, as against
53.7%> in the previous year.
• During this year, the Bolero
became the first Sports Utility Vehicle (SUV) in India to cross the 1 lac
milestone. This tough and rugged UV thus retains the title of India's largest
selling SUV for the 6th consecutive year. It is also the 7thhighest
selling passenger vehicle in India.
• The Scorpio continues to
strengthen its iconic status with sales of over 50,000units in 2011-12.
• In the MPV segment, The Company
has garnered market share of 10.9%> with in the last one year. In the highly
competitive < 2 tonne Light Commercial Vehicle (LCV)segment, the Company's
market share stands at 21.5%.
• The Company is the market leader
in the 2-3.5 tonne LCV segment with a market share of 66.5%>.
• During the previous year, the
Company had bought over the shareholding of its joint venture partner in
Mahindra Automobile Distributor Private Limited. This led to the Logan being
re-launched under the Mahindra badge as the Verito. The new Verito retains the
famed strengths of the Logan, while adding a new style with some key changes.
The sales for the Verito have since been continuously improving with 17,839 units
sold in 2011-12 -a growth of 78.2% over the previous year.
• In the MHCV segment, MNAL's range
of sturdy yet stylish trucks have received encouraging customer feedback with
its market share standing at 1.2%.
Delighting the customer
At Mahindra, customers are at the
core of its business. All products and initiative scater to the diverse needs
of its varied customers. In addition to the highly acclaimedXUV500, all new
products and initiatives launched in 2011-12 received an excellent response.
• In February, 2012, Mahindra
unveiled the Stylish New Xylo which sports 50 new changes and features. The new
version includes five variants powered by three distinct engine options,
including the powerful 120 BHP mHawk engine. The Stylish New Xylo also boasts
of a pioneering Voice Command Technology which allows the driver to control
over thirty features in the car, merely by talking to it! This makes the Xylo
convenient and very enjoyable to drive.
• In September 2011, Mahindra
launched the New Bolero with better drive ability and excellent fuel
efficiency, powered by the refined and peppy new m2DiCR engine. It incorporates
new technology features like Digital Cluster with Driver Information
System(DIS) and a digital Engine Immobilizer. India's most popular UV also
sports a stylish new dashboard, wood-finish central console and all-new seats
and upholstery.
• In April 2011, Mahindra launched
the Maxximo Mini Van, a next generation passenger carrier developed on the
technologically superior Maxximo platform. This stylish people mover is set to
redefine the entry-level contract carriage and stage carriage segments in
India. Equipped with best-in-class comfort and safety features and powered by
the advanced C2 CRDe fuel-efficient diesel engine, the Maxximo Mini Van is
competitively priced.
• During the year, MNAL launched the
MN31 cowl which received an enthusiastic response in the market. With its pan
India commercial launch in December 2011 which saw it emerge as a full range
Commercial Vehicle (CV) player, MNAL is a force to reckon with in the
Commercial Vehicle segment.
Automotive Sector - Overseas
Operations
• During this year, The Company launched the Genio
double cab for oversea smarkets at a special event in Mumbai which was also
attended by global media.
The Automotive Sector of The Company
exported a total of 29,176 vehicles during the year 2011-12, posting an
impressive growth of 70.2% over the previous year. This growth was
predominantly on account of favourable market response in neighbouring
countries for Mahindra's range of products. Since 2006, the Company has been
working on the development of a vehicle for the US market. However, The Company
recently decided not to proceed further with the project due to changes in the
US regulatory and market situation. The Company will continue to monitor the US
situation and remain flexible with its approach to this market.
Future ready
• During the previous year, the Automotive Sector of
The Company took two significant steps on its journey towards becoming a
globally recognised automotive manufacturer. It acquired a majority stake in
Reva Electric Car Company Private Limited(since rechristened as Mahindra Reva
Electric Vehicles Private Limited) and in March 2011,it completed the
acquisition of a majority shareholding and management control in South Korea's
Ssangyong Motor Company Limited (SYMC).
• Mahindra Reva displayed the
prototype of its all new electric car, the NXR, at the Delhi Auto show in
January 2012 which attracted considerable interest from both the media and
visitors. The car is expected to be launched in the second half of Financial
Year 2012-13.
• The acquisition of SYMC is a
significant step towards realising The Company's global ambitions. Over the
last 12 months, satisfactory progress has been made in creating synergy in the
areas of product development, sourcing and channel sharing. Work on development
of new vehicle and engine platforms has been initiated and is progressing well.
• In March 2010, Mahindra Vehicle
Manufacturers Limited (MVML), a 100% subsidiary of The Company, set up its
manufacturing plant in Chakan near Pune. Spread over 700 acres with capacity to
manufacture 3,00,000 vehicles in phase one, the facility will cater to future
demand for new products, making it a critical component of the Company's
business.
This state-of-the-art facility has
the capability to manufacture a wide variety of vehicles, ranging from small
commercial vehicles and heavy commercial vehicles to modern SUVs and
construction equipment. Products manufactured here include the XUV500, the
Genio Pick Up and the Maxximo range of vehicles, as well as the Mahindra
Navistar range of trucks and the Mahindra Earth Master range of construction
equipment. In its second year of operation, MVML Chakan manufactured 1,16,502
vehicles, a substantial increase as compared to 40,954 vehicles manufactured in
the previous year.
• In April 2012, the Company
inaugurated its world class engineering and research and development centre, Mahindra
Research Valley (MRV), in Chennai. Spread over 125 acres in Mahindra World
City, MRV bears testimony to the Mahindra Group's commitment to
technology-driven innovation and is the cradle of its future. It houses
automobile as well as tractor engineering research and product development
divisions under one roof and enables close and creative collaboration between
engineers and researchers. This facility was created at an investment of over Rs. 6500.000 Millions. Home to over 1,500 employees, it
has experts who are leading various technology and product development
projects.
Farm Equipment Sector
With its quest to deliver 'Farm Tech
Prosperity' to the Indian farmer, Financial Year 2012 saw numerous initiatives
by the Sector in the area of farm mechanisation and across the agriculture
value chain.
Tractor and Farm Mechanisation
Business
In Financial Year 2012, Mahindra
retained its leadership in the domestic tractor market for the 29th
consecutive year, with a 41.4% market share. In this period, the Company sold
2,36,666 tractors under the Mahindra and Swaraj brands, as against
2,14,325tractors sold in the previous year - a 10.4%) increase.
In the less than 30 HP segment, the
Mahindra Yuvraj 215, which aims to provide the vast number of small and marginal
farmers with affordable mechanisation, practically double dits volumes over the
last year, with sales of 10,760 units this year. Strengthening the Swaraj
presence in this segment was the Swaraj 724 Orchard, which also focused on this
niche but growing segment.
In the 30-40 HP segment, the largest
segment in the tractor industry, customer options were further enhanced with
the launch of the 35 HP Mahindra 265 Power Plus in March 2012.This product will
gradually be rolled out across the country in Financial Year 2013. This launch
was accompanied by the introduction of 'Rob lift' hydraulics which deliver
superior precision, better uniformity and the ability to optimise performance
in a range of agricultural applications.
In the 40-50 HP segment, the Swaraj
855 XM series with side shift was also launched.
As far as the over 50 HP segment is
concerned, the Arjun Multi Application Tractor(MAT) launched last year has been
well accepted in the market, contributing to the 50%>market share of the
Farm Equipment Sector in this segment.
Bolstering this leadership was the
introduction of the Arjun International 8085. This product represents a quantum
leap in technology and comfort, giving the affluent and often demanding Indian
farmer a world class experience.
The Company was also among the first
manufacturers in the country to prepare itself for the advent of Trem III A
norms in this segment by not only meeting these stringent emission norms but
also by retaining an edge over competition in terms of fuel efficiency. The
product's superiority, coupled with unmatched service quality and reach have
resulted in the highest customer satisfaction in the industry.
Global Footprint
The Sector continued to expand its
global footprint with a focus on the key markets of USA and China, amongst
other regions.
China
In China, the second largest tractor
market in the world, Mahindra volumes from the two Joint Ventures, Mahindra
(China) Tractor Company Limited (MCTCL) and Mahindra Yueda Yancheng Tractor
Company Limited (MYYTCL), crossed the 30,000 mark for the first time. Mahindra
retained its position amongst the top five brands in this market. While
domestic volumes grew to 26,444 tractors, an increase of 11%>, exports from
China grew by a healthy 20%> to 5,244 units. Amongst many highlights was the
inauguration of MYYTCL's integrated manufacturing facility which has the
capacity to produce over 40,000 tractors.
USA
Mahindra USA crossed the 10,000 volume
mark for the second time in its history. This represents a strong growth of 35%
and a gain in market share. Compact and Cabin tractor models introduced in the
last couple of years, combined with high customer and dealer satisfaction
levels for both products and service have been major contributors to this
success. The 4025 4WD was also launched in this market and received a good
response from customers, strengthening the Mahindra portfolio in the USA.
Rest of the World
The growth story for Financial Year
2012 was characterised by the success of the Sector's African operations, with
77% increase seen in this market over the last year. The introduction of the
90HP tractor to the Sector's portfolio contributed to this performance. The
Sector's nascent presence in South America and Turkey were the other key areas
of growth. Turkish operations saw strengthening of the distribution network,
together with product portfolio augmentation due to the launch of a number of
models from the '30 series' of tractors. The Company continued its strong
performance in the SAARC region with over 40% market share in both Nepal and
Bangladesh, though with limited volumegrowth due to a challenging business
environment in these markets.
Mechanisation (Mahindra AppliTrac) -
Towards Agri Prosperity
With labour scarcity becoming an
ever increasing challenge for farmers across the country, mechanisation of most
agricultural operations is the way forward. This has fuelled demand for better
and more efficient equipment across the spectrum of operations. AppliTrac
continued to grow the market for mechanisation in the country, playing its part
in boosting agricultural productivity.
• Mahindra Gyrovator-The pride of
the rotavation range of equipment in the AppliTrac stable, this product has
been well accepted by the Indian farmer by virtue of its sheer performance,
placing it in a league of its own. As a result, overall sales of rotavation
equipment grew by over 30% over last year.
• New mechanisation solutions - Due
to increasing labour scarcity, more and more agri operations are moving towards
mechanisation. To meet emerging needs in this segment, AppliTrac introduced
three new products this year - sprayers, shredders and mulchers, thus expanding
the range of options available to the Indian farmer.
Construction Equipment - Mahindra
Earth Master creates an impact
This nascent business has made rapid
strides in the last one year, with the Mahindra Earth Master well accepted by
the customer, both for its performance and unmatched value. With expansion of
the sales network gathering steam, the construction equipment business as
achieved sales of over 800 Mahindra Earth Master backhoe loaders, making its
way into the list of top six players for backhoe loaders in the country.
Agriculture - sowing the seeds for
India's future Agriculture Inputs
The Sector offers a whole range of
crop care solutions, especially seeds, herbicides,pesticides, fungicides and
micro nutrients. Eight new products were launched this year, creating a great
deal of excitement and aiding in its best ever performance.
Micro-irrigation business
The Company acquired a 38% stake in
EPC Industrie Limited, one of India's leading micro-irrigation companies, in
February last year, to gain a foothold in this space. This year, the focus was
on growth, with a nearly 50% increase in top line. Micro- irrigation offers
tremendous benefits to the farmer which include over 25% water savings, reduced
expenditure on labour and fertiliser and higher productivity. By virtue of this
development, The Company will be able to help the farmer to better utilise
scarce water resources and thereby contribute to overall water conservation in
the country.
Mahindra Samriddhi
By the end of the previous financial
year, over 155 Mahindra Samriddhi centres became operational. Each Samriddhi
Centre offers innovative farming technologies that transform the lives of
farmers by helping them to improve productivity. The Mahindra Samriddhi India
Agri Awards continues to be the premier event in the field of agriculture for
the second consecutive year. The event, which was graced by the Honourable
Union Minister for Agriculture, Mr. Sharad Pawar, and other leading luminaries
from the field of agriculture, honoured the torch bearers of farm prosperity
from across the nation.
Mahindra Powerol - powering
India
For Mahindra Powerol,
FinancialYear2012wasan inflection point. In spite of continued challenging
circumstances, the business focussed on expanding markets. A quantum leap in
exports and growth in DG (Diesel Genset) sales in the retail space enabled a
reversal of fortune, getting Powerol back onto the path of top line growth.
Despite a subdued marketfor engines and DGs for the telecom sector, Mahindra
Powerol has further strengthened its dominance with market share crossing 50%
in powergen for telecom.
On the product front, the DG range
has been widened with the introduction of 2.5kVA and5kVA DG sets, extending the
range right from 2.5kVA to 500kVA. In addition, Mahindra Powerol's focus on
customer centricity has been applauded and has won the Company industry-wide
recognition.
Outlook - Automotive & Farm
Equipment Sectors
Both the Automotive and Farm
Equipment Sectors with their updated product portfolios and continued exploration
of global horizons will strive to maintain their leadership position in their
respective markets. Simultaneously, The Company will continue its focus on
achieving cost leadership through focused cost optimisation, value engineering,
improved efficiency measures like supply chain management, countrywide
connectivity of allits suppliers and dealers and exploiting synergies between
its Sectors. The long term outlook for the automotive industry is bright and
robust, though in the near term there are some challenges relating to the
external environment. Inflation, interest rates, fuelprices and commodity
prices could dampen consumer confidence and sentiment which has always been a
key determinant of automobile sales.
In the long term, the Indian economy
is projected to grow rapidly and demand conditions are expected to remain
strong. According to SIAM long term forecasts, the Indian automobile industry
is expected to grow at an annual average rate of 10-15%. However, in the near
term, there are challenges as outlined above which will have a bearing on
demand and OEM profitability.
For Financial Year 2012-13, SIAM has
projected a growth of 10-12% for the personal vehicle segment and 9-11% for the
commercial vehicle segment.
Similarly, in the case of tractors,
the long term outlook continues to be positive with the tractor industry
expected to continue to grow with a CAGR ranging between 7% and 10%.
UNAUDITED STANDALONE FINANCIAL RESULTS FOR
THE QUARTER ENDED 30TH SEPTEMBER, 2012
|
PARTICULARS |
30.09.2012 |
30.06.2012 |
30.09.2012 |
|
|
Quarter Ended |
Half Year Ended |
|
|
|
(Unaudited) |
(Unaudited) |
|
|
1
Gross Sales/Income from Operations |
104147.000 |
99365.000 |
203512.000 |
|
Less Excise Duty on sales |
7555.000 |
6885.600 |
14440.600 |
|
(a)
Net Sales/Income from Operations |
96592.000 |
92479.400 |
189071.400 |
|
(b)
Other Operating Income |
1537.600 |
1194.500 |
2732.100 |
|
Total |
98129.600 |
93673.900 |
191803.500 |
|
2 Expenditure |
|
|
|
|
a.
Cost of materials consumed |
52850.700 |
47907.200 |
100757.900 |
|
b
Purchases of stock-in-trade |
25378.000 |
22710.400 |
48088.400 |
|
c.
(Increase)/Decrease in Inventories of finished goods, work-in-progress
& stock-in- trade |
(4685.300) |
(264.100) |
(4949.400) |
|
d.
Employee benefits expense |
4743.000 |
4516.000 |
9259.000 |
|
e.
Depreciation and Amortisation expense |
1783.900 |
1548.400 |
3332.300 |
|
f.
Other expenses (Net of cost of manufactured products capitalised) |
8654.000 |
7710.100 |
16364.100 |
|
g Total expenses (a+b+c+d+e+f) |
88724.300 |
84128.000 |
172852.300 |
|
3
Profit from operations before Other Income, Finance Costs and
Exceptional Items (1-2) |
9405.300 |
9545.900 |
18951.200 |
|
4.
Other Income (Note 1) |
3228.900 |
598.500 |
38273.400 |
|
5.
Profit from ordinary activities before Finance Costs and Exceptional
Items (3 + 4) |
12634.200 |
10144.400 |
22778.600 |
|
6
Finance costs |
474.700 |
460.200 |
934.900 |
|
7.
Profit from ordinary activities after Finance Costs but before
Exceptional Items (5 - 6) |
12159.500 |
9684.200 |
21843.700 |
|
8
Exceptional Items |
-- |
-- |
-- |
|
9.
Profit from Ordinary Activities Before Tax (7 + 8) |
12159.500 |
9684.200 |
21843.700 |
|
10
Provision for Tax Expenses |
3141.500 |
2427.800 |
5569.300 |
|
11.
Net Profit from Ordinary Activities after Tax (9 - 10) |
9018.000 |
7256.400 |
16274.400 |
|
12
Paid-up Equity Share Capital (Face value Rs 5 per share) |
2949.600 |
2946.700 |
2949.600 |
|
13 Reserves
and Surplus excluding Revaluation Reserve |
|
|
|
|
14 a Basic Earnings per Share on Net Profit
from Ordinary Activities after Tax Rs |
15.30 * |
12.32 * |
27.61 * |
|
14 b. Diluted Earnings per Share on Net Profit
from Ordinary Activities after Tax Rs. |
14.69 * |
11.82 * |
26.51 * |
|
* not annualised |
|
|
|
|
A
PARTICULARS OF SHAREHOLDING |
|
|
|
|
1.
Aggregate of public shareholding #: |
|
|
|
|
Number of Shares |
425234483 |
422480634 |
425234483 |
|
Percentage of Shareholding |
69.26% |
68.81% |
69.26% |
|
2.
Promoters and promoter group Shareholding # : |
|
|
|
|
a. Pledged/Encumbered |
|
|
|
|
-Number of Shares |
13751000 |
13751000 |
13751000 |
|
-Percentage of Shares (as a % of the total
shareholding of promoter and promoter group) |
8.83% |
8.80% |
8.83% |
|
-Percentage of Shares (as a % of the total
share capital of the company) |
2.24% |
2.24% |
2.24% |
|
b. Non-encumbered |
|
|
|
|
-Number of Shares |
141906210 |
142504034 |
141906210 |
|
-Percentage of Shares (as a % of the total
shareholding of promoter and promoter group) |
91.17% |
91.20% |
91.17% |
|
-Percentage of Shares (as a % of the total
share capital of the company) |
23.11% |
23.21% |
23.11% |
|
# Excludes shares represented by Global
Depository Receipts |
|
|
|
|
@ Excludes shares purchased by entities of
promoter group but not credited to their respective demat accounts |
|
|
|
|
Particulars |
|
|
|
|
B
INVESTOR COMPLAINTS |
|
|
|
|
Pending at the beginning of the quarter |
0 |
|
|
|
Received during the quarter |
4 |
|
|
|
Disposed of during the quarter |
4 |
|
|
|
Remaining unresolved at the end of the
quarter |
0 |
|
|
|
|
|
|
|
|
SEGMENT WISE REVENUES,
RESULTS AND CAPITAL EMPLOYED : |
|||
|
A.
Segment Revenue : ( Net Sales / Income from Operations & Other
Operating Income) |
|
|
|
|
Automotive Segment |
71498.400 |
62786.500 |
134284.900 |
|
Farm Equipment Segment |
26534.400 |
30782.900 |
57317.300 |
|
Other Segments |
151.000 |
169.600 |
320.600 |
|
Total |
98183.800 |
93739.000 |
191922.800 |
|
Less: Intersegment Revenues |
54.200 |
65.100 |
119.300 |
|
Net Sales / Income from Operations &
Other Operating Income |
98129.600 |
93673.900 |
191803.500 |
|
B.
Segment Results (After Exceptional Items) |
|
|
|
|
Automotive Segment |
6717.700 |
5527.600 |
12245.300 |
|
Farm Equipment Segment |
3920.500 |
4824.200 |
8744.700 |
|
Other Segments |
33.600 |
39.800 |
73.400 |
|
Total Segment Results |
10671.800 |
10391.600 |
21063.400 |
|
Finance Cost |
474.700 |
460.200 |
934.900 |
|
Other un-allocable expenditure net off
un-allocable income |
(1962.400) |
247.200 |
(1715.200) |
|
Total Profit before Tax |
12159.500 |
9684.200 |
21843.700 |
|
C.
Capital Employed :( Segment assets - Segment liabilities) |
|
|
|
|
Automotive Segment |
37641.600 |
32802.800 |
37641.600 |
|
Farm Equipment Segment |
28191.400 |
23545.100 |
28191.400 |
|
Other Segments |
177.500 |
117.500 |
177.500 |
|
Total Segment Capital Employed |
66010.500 |
56465.400 |
66010.500 |
STATEMENT OF ASSETS AND LIABILITIES
(Rs. In Millions)
|
PARTICULARS |
30.09.2012 |
|
|
(Unaudited) |
|
EQUITY AND
LIABILITIES |
|
|
SHAREHOLDERS' FUNDS |
|
|
(a) Share Capital |
2949.600 |
|
(b) Share Capital Suspense |
- |
|
(c) Reserves and Surplus |
135961.600 |
|
Sub-total -
Shareholders' Funds |
138911.200 |
|
* denotes amount less than Rs. 50000 |
|
|
NON CURRENT
LIABILITIES |
|
|
(a) Long Term Borrowings |
32075.500 |
|
(b) Deferred Tax Liabilities (Net) |
5157.600 |
|
(c) Other Long Term Liabilities |
2866.900 |
|
(d) Long Term Provisions |
5625.400 |
|
Sub-total - Non Current
Liabilities |
45725.400 |
|
CURRENT LIABILITIES |
|
|
(a) Short Term Borrowings |
3.900 |
|
(b) Trade Payables |
55515.300 |
|
(c) Other Current Liabilities |
14499.800 |
|
(d) Short Term Provisions |
6042.600 |
|
Sub-total - Current
Liabilities |
76061.600 |
|
|
|
|
TOTAL - EQUITY AND
LIABILITIES |
260698.200 |
|
ASSETS |
|
|
NON CURRENT ASSETS |
|
|
(a) Fixed Assets |
54372.000 |
|
(b) Non Current Investments |
93894.500 |
|
(c) Long Term Loans and Advances |
17260.200 |
|
(d) Other Non Current Assets |
318.900 |
|
(e) Foreign Currency Monetary Item Transalation Difference Account |
661.000 |
|
Sub-total - Non
Current Assets |
166506.600 |
|
CURRENT ASSETS |
|
|
(a) Current Investments |
7479.500 |
|
(b) Inventories |
29196.700 |
|
(c) Trade Receivables |
26773.700 |
|
(d) Cash and Bank balances |
10366.500 |
|
(e) Short Term Loans and Advances |
13270.500 |
|
(f) Other Current Assets |
6903.700 |
|
(g) Foreign Currency Monetary Item Translation Difference Account |
201.000 |
|
Sub-total - Current
Assets |
94191.600 |
|
|
|
|
TOTAL - ASSETS |
260698.200 |
Note:
1.
(Rs. In Millions)
|
PARTICULARS |
30.09.2012 |
30.06.2012 |
30.09.2012 |
|
|
Quarter Ended |
Half Year Ended |
|
|
|
(Unaudited) |
(Unaudited) |
|
|
Other Income includes dividend received from
subsidiaries/joint ventures |
1771.200 |
0.000 |
1771.200 |
2. The results for the quarter and half year ended September, 2012 are not comparable with those of the quarter and half year ended September, 2011 as the figures in respect of quarter and half year ended September, 2011 do not include the results of the automotive business of Mahindra Automobile Distributor Private Limited which, as sanctioned by Honourable High Court of Bombay vide its order dated 30th March, 2012, got merged with the Company from the appointed date 1st April, 2011. The said order became effective from 23rd April, 2012. The comparision of net sales/income from operations and profit from ordinary activities before exceptional items for the above mentioned periods is however not materially affected by this exclusion.
3. During the current quarter:
a Mahindra Defence Systems Limited, Divine Heritage Hotels Private Limited and Gables Promoters Private Limited became subsidiaries of the Company. In addition Jiangxi Mahindra Yueda Tractor Company Limited , was formed during the quarter, as a subsidiary to carry on the business activities of erstwhile Mahindra China Tractor Company Limited, the Company's subsidiary which ceased to exist during the quarter.
b During the quarter, consequent to the disposal of shares by the joint venture partner, Tech Mahindra Limited, became an associate of the Company.
4. Other Segments include Defence Services, Special Services Group etc.
5. Previous period's / year's figures have been regrouped wherever necessary.
6. The above results were approved by the Board of Directors of the Company at the Board Meeting held on 25th October, 2012.
7. In compliance with Clause 41 of the Listing Agreement with the Stock Exchanges, a limited review of the results for the quarter ended 30th September, 2012 has been carried out by the Statutory Auditors.
FIXED ASSETS:
·
Land
·
Buildings
·
Plant
and Equipment
·
Office
Equipment
·
Furniture
and Fixture
·
Aircraft
·
Vehicles
·
Technical
Knowhow
·
Development
Expenditure
·
Computer
Software
PRESS RELEASE
M AND M TO INVEST $900M
IN MAHINDRA-SSANGYONG
9TH JANUARY, 2013
Mahindra and Mahindra will invest USD 900 million over the next four years in products to be developed jointly with its South Korean unit Ssangyong Motor Co Limited, Mahindra's automotive president said on Wednesday.
The investment is separate from Mahindra's planned spend of Rs 5000 crore on its own products over three years ending in 2014, said Pawan Goenka, who is also chairman of luxury SUV manufacturer Ssangyong.
Auto suppliers' profitability unlikely to improve in 2013
Mahindra, India's biggest utility vehicle manufacturer, also builds tractors, trucks and motorcycles, and bought a majority stake in the South Korean company in 2011 for USD 460 million.
M AND M TO STRENGTHEN
REXTON PRODUCTION TO CUT WAITING PERIOD
2ND JANUARY, 2013
Domestic auto maker Mahindra and Mahindra today said it is ramping up
production of recently launched premium sports utility vehicle (SUV), the
Rexton, by 500 units with an aim to lower waiting period.
"We expect the production to go up by at least 500 units in January.
This will bring down the waiting period for the vehicle to an extent," M
and M chief executive (automotive division) Pravin Shah told reporters here
during an interaction.
Also read: Year 2012 was tough for auto industry: M AND M
The waiting period for vehicles like Quanto is currently around 4-6
weeks, while for Rexton it is four to eight weeks, he said, adding Rexton
bookings stand at 1,300 units by ecember
last year.
"The demand for SUVs like Rexton, Quanto and XUV continues to be
good. We have seen production going up. We increased Quanto production in
December and see that happening in Q4 also so that the waiting period for the
customers comes down," he said.
Launched in October last, Rexton is the first product launched by M and M
from the portfolio of Korean subsidiary Ssangyong. At the time of the launch,
the company had said it was aiming for a capacity of 5,000 units per annum.
Shah said the company would roll out two new products, a sub-4 metre
Verito and Mahindra Reva NXR, the electric car, in the current quarter. On the
sales during the October-December period, he said the passenger vehicle segment
posted a healthy growth of 33 percent on the back of new products being rolled
out during the period. In the four-wheeler commercial segment, the growth in
the quarter stood at over 14 percent, added Shah.
MAHINDRA TO
PURCHASE NAVISTAR'S STAKE IN INDIA JOINT VENTURES
18TH DECEMBER,
2012
Mahindra and Mahindra Limited (M
and M) and Navistar International Corporation (NYSE; NAV) announced today that
Mahindra intends to purchase Navistar Group's stake in Mahindra Navistar
Automotives Limited (MNAL) and Mahindra Navistar Engines Private Limited
(MNEPL). Following the purchase, both MNAL and MNEPL would become wholly owned
subsidiaries of Mahindra. Mahindra would take complete ownership of operations
and continue to sell MNEPL and MNAL products. The sale requires regulatory
approval in India, is subject to the conclusion of definitive agreements, and
is expected to be completed in early 2013.
The terms of the proposed transaction call for Mahindra to pay
approximately Rs. 175 crores or $33 million, for Navistar group's stake in both
ventures. The agreement allows Navistar to continue sourcing components from
India while Mahindra would continue to provide engineering services to
Navistar. Navistar Group would continue to support M and M through a license
agreement and extend necessary support to MNAL and MNEPL for the purposes of
business continuity.
As part of its "Drive to Deliver" turnaround plan launched in
August, Navistar has been conducting an analysis of all of its businesses and
programs to determine their return on invested capital (ROIC) and identify
areas for improvement. Based on this business environment, Navistar has
determined that it needs to redirect its efforts to other initiatives that more
quickly contribute to the company's goal to improve its ROIC.
"Since it was established in 2005, Mahindra Navistar Automotives
Limited has created a niche for itself in the Indian CV industry," said
Dr. Pawan Goenka, president, Automotive and Farm Equipment Sectors, Mahindra
and Mahindra Limited "MNAL has set up a world class dealer and service
network for trucks, which coupled with synergies with Mahindra's dealer network
gives us a significant opportunity to grow our presence in the truck market. In
addition, the product has been well accepted as is evident from our high-ranking
in the TNS customer satisfaction survey. M and M is committed to the success of
the truck business. We acknowledge the contribution made by Navistar to this
venture thus far and appreciate their support for business continuity after
they exit the business."
"While the Indian market has not expanded as we had originally
expected and industry challenges there continue in the near term, we still see
promise in India going forward. But given Navistar's 2013 priorities, our
capital and focus needs to be allocated to other business opportunities in the
near term," said Troy Clarke, president and chief operating officer,
Navistar. "Mahindra has extensive experience and knowledge of the Indian
automotive sector and they are best situated to devote the time and resources
required to capitalize on future opportunities in India."
Navistar and Mahindra entered into the MNAL joint venture in late 2005 to
manufacture trucks and buses in India, source components and provide
engineering services for the design and development of Navistar vehicle
products. The MNEPL joint venture was formed in 2007 and began producing
engines in 2010.
Q1 NET GROWS BY
25.9%.
8TH AUGUST, 2012
The Board of
Directors of Mahindra and Mahindra Limited today approved the unaudited financial
results for the quarter ended 3oth June 2012 for the company.
Mahindra Vehicle
Manufacturers Limited (MVML), located at Chakan near Pune, was set up as a 100%
subsidiary of the company with a view to sourcing contemporary products for
expanding the market offerings of the company. Hence it is a critical part of
its business and only the combined results of the company and MVML can provide
a comprehensive view of company's performance.
Q1 F2013 - M and M +
MVML Results
The Gross Revenues
and other income of Mahindra and Mahindra Limited and MVML (Entity) during the
quarter ended 30th June 2012 is Rs.100039.000
millions as against Rs.74000.000 millions in the previous year - a growth of 35.2%. The Net Profit
before tax for the current quarter is Rs.
10498.0000 millions as against Rs.8363.000 Millions in Q l previous
year. After providing for tax the same is Rs. 7785.000 millions against Rs. 6183.000 millions in Q l last
year - a growth of 25.9%. The
operating margin of the Entity for the current quarter is 13.9%.
The growth in the
profit despite the relentless increase in material costs is due to good volume
performance by Automotive Sector and tight control on expenses.
In the Passenger
Utility Vehicle segment, the Entity sold 58615 vehicles in the current quarter
- a growth of 32% over the numbers sold in Q1 last year. The Entity continued
its strong position with a' market share of 49.8%. In the Cars segment, the
Entity sold 2888 Verito Cars. The Entity also exported 7841 Vehicles in Q1
F2013 registering a growth of 37.2% over 5717 vehicles exported in Q1 last
year. South America and South African markets continued to extend healthy
support to Entity's products.
After three years
of strong growth, the domestic tractor industry witnessed a marginal volume
growth of 2.3% in Q1 of the current financial year. In this period, the Entity
sold 56861 tractors in the domestic market as compared to 57500 tractors in Q1
last year and its domestic market share for the quarter was 41.5%. The Entity's
exports during the quarter at 3020 tractors, grew by 3.9% over 2908 tractors
exported in Q1 F2012.
Q1 F2013 - M and M Standalone results
The Gross Revenues
and Other Income of Mahindra and Mahindra Limited for the quarter ended 30th
June 2012 is Rs.101158.000 millions as
against Rs.73186.000 millions during the corresponding period last year - a growth of 38.2%. The Net Profit
after tax for the quarter is Rs.
7256.000 millions for the current Q1 as against Rs. 6049.000 millions in
the same period last year - a growth of
20%.
The figures of Q l
last year exclude that of the automotive business of Mahindra Automotive
Distributor's Limited which, as per the High Court order dated 3oth March 2012,
merged with the company from the appointed date 1st April, 2011. The
growth percentages stated above are, however, not materially impacted by this
exclusion.
Q1 F2013 - Group
Consolidated Results
The Board meeting
to approve the Q1 F2013 results of Tech Mahindra is being held later in the
month. After the approval and announcement of its results, the company will
separately release the information on Consolidated Group turnover and PAT.
During the current
quarter, some of the major group companies like Mahindra Finance, Mahindra
Satyam, Mahindra Life spaces and Mahindra Holidays significantly improved their
performance over Q1 previous year. The performance of Mahindra Finance with a
52% growth in consolidated revenues and a 64% increase in profits, Mahindra
Satyam with a 31% growth in consolidated revenues and a 56% increase in profits
and that of Mahindra Life space with a 28% growth in revenue and a 72% profit
growth were particularly noteworthy.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No 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.54.54 |
|
|
1 |
Rs.88.05 |
|
Euro |
1 |
Rs.72.29 |
INFORMATION DETAILS
|
Report Prepared
by : |
BSN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--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 |
|
69 |
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.