MIRA INFORM REPORT
|
Report Date : |
15.05.2013 |
IDENTIFICATION DETAILS
|
Name : |
MAHINDRA COMPOSITES LIMITED (w.e.f. 17.01.2007) |
|
|
|
|
Formerly Known
As : |
SIRO PLAST LIMITED |
|
|
|
|
Registered
Office : |
145, Mumbai-Pune Road, Pimpri, Pune-411018, Maharashtra |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
18.08.1982 |
|
|
|
|
Com. Reg. No.: |
11-028040 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 44.139 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L24117PN1982PLC028040 |
|
|
|
|
Legal Form : |
Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturer of Sheet Moulding Compound (SMC), Dough
Moulding Compound, Distributor Box, etc. |
|
|
|
|
No. of Employees
: |
120 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (44) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 624000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a part of Mahindra and Mahindra Group. It is a well established company having a satisfactory track record. Trade relations are reported as fair. Net profit at the company has
seen a dip. Payments are reported to be usually correct and as per commitment
due to the strong financial and managerial support at the holding company. The company can be considered for normal business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – 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 |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Long term banking loan BBB+ |
|
Rating Explanation |
Moderate degree of safety and moderate
credit risk. |
|
Date |
October 17, 2012 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION PARTED BY
|
Name : |
Mr. Ravi Girisagar |
|
Designation : |
Marketing Manager |
|
Contact No.: |
91-9011762929 |
|
Date : |
08.05.2013 |
LOCATIONS
|
Registered Head Office / Factory 1 : |
145, |
|
Tel. No.: |
91-20- 27425265
/ 66 / 66300946 |
|
Mobile No.: |
91- 9011762929 (Mr.
Ravi Girisagar) |
|
Fax No.: |
91-
20-27425272 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory 2 : |
Survey No. 178/0, Village |
|
Tel. No.: |
91-2140-263128/112 |
|
Fax No.: |
91-2140-263145 |
DIRECTORS
As on 31.03.2012
|
Name : |
Mr. Hemant Luthra |
|
Designation : |
Chariman |
|
|
|
|
Name : |
Mr. B M Kataria |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. R R Krishnan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. C S Devale |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. M R Joshi (Deceased on 05.12.2011) |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Dhananjay Mungale |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Rajiv Satoore |
|
Designation : |
Chief Executive Officer |
|
|
|
|
Name : |
Mr. Ajit Lele |
|
Designation : |
Advisor |
|
|
|
|
Name : |
Mr. Vijayendra Kolambkar |
|
Designation : |
Chief Financial Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2012
|
Category of
Shareholder |
Total No. of Shares
|
Total
Shareholding as a % of total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
|
|
|
|
1977203 |
44.79 |
|
|
1977203 |
44.79 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
1977203 |
44.79 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
2050 |
0.05 |
|
|
1600 |
0.04 |
|
|
3650 |
0.08 |
|
|
|
|
|
|
183166 |
4.15 |
|
|
|
|
|
|
1538893 |
34.86 |
|
|
668830 |
15.15 |
|
|
42182 |
0.96 |
|
|
42182 |
0.96 |
|
|
2433071 |
55.12 |
|
Total Public shareholding (B) |
2436721 |
55.21 |
|
Total (A)+(B) |
4413924 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.000 |
|
|
0 |
0.000 |
|
|
0 |
0.000 |
|
|
0 |
0.000 |
|
Total (A)+(B)+(C) |
4413924 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Sheet Moulding Compound (SMC), Dough
Moulding Compound, Distributor Box,etc. |
|
|
|
|
Exports : |
|
|
Products : |
Finished Goods |
|
Countries : |
|
|
|
|
|
Imports : |
|
|
Products : |
Raw Material |
|
Countries : |
|
|
|
|
|
Terms : |
|
|
Selling : |
Cash / Credit |
|
|
|
|
Purchasing : |
Cash / Credit |
PRODUCTION STATUS AS ON 31.03.2011
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Sheet Moulding Compound |
MT |
1200 |
4000 |
1997 |
|
Dough Moulding Compound |
MT |
400 |
1000 |
1943 |
|
Moulded Components |
MT/Nos |
5000 |
3000 |
458025 |
|
Moulds |
MT |
NA |
NA |
11 |
NOTES:
1.
Licenced capacity in respect of ‘Moulded Components’ is as disclosed in the prescribed memoranda filed
with the Secretariat for Industrial Approvals (SIA), Department of Industrial Development,
in terms of notification no.S.O.577(E) dated July 25, 1991.
2.
Installed capacity is certified by management and not verified by the
auditors as it is a technical matter.
3.
Including production used for
captive consumption.
4.
Although the licenced and
installed capacities in respect of ‘Moulded Components’ above are stated in
tonnes, the actual production etc. has been stated in numbers as this is the
form of measurement in which these are normally produced / sold. It has not
been possible to indicate the licenced and installed capacities in numbers as
the same will depend on product mix from year to year.
5.
The actual production disclosed against moulds manufactured is the
number of such moulds sold during the yearas the company considers a mould as ‘meant
for sale’ only when it is actually sold. Actual production of moulds includes
moulds produced by third parties on behalf of the company.
GENERAL INFORMATION
|
Customers : |
·
Retailers ·
L and T ·
Tata Engineering and Locomotive Company Limited ·
Ashok Leyland Limited ·
TVS Suzuki Limited ·
Swaraj Mazda Limited ·
Mahindra and Mahindra Limited ·
Volvo ·
ABB ·
Siemens ·
GE Power Control ·
Havells |
||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
No. of Employees : |
120 (Approximately) |
||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
(Rs.
In Millions)
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
Address : |
706, B Wing , 7th Floor, ICC Trade Tower, Senapati Bapat
Road, Pune - 411016, India |
CAPITAL STRUCTURE
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
15000000 |
Equity Shares |
Rs.10/- each |
Rs. 150.000 Millions |
|
|
|
|
|
Issued, Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
4414974 |
Equity Shares |
Rs.10/- each |
Rs. 44.149
Millions |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
4413924 |
Equity Shares (excluding 1,050 shares not allotted but held in
abeyance) |
Rs.10/- each |
Rs. 44.139
Millions |
|
|
|
|
|
NOTE :
Reconciliation of the no. of shares outstanding at the beginning and at
the end of the year
|
Particulars |
31st March, 2012 |
|
|
|
Number of shares |
Amount |
|
No of shares outstanding at the beginning of the year |
4,404,009 |
44.040 |
|
Add: Additional
shares issued during the year under Employee stock option scheme |
9,915 |
0.099 |
|
Number of shares outstanding at the end of the year |
4,413,924 |
44.139 |
Number of shares held by each shareholder holding
more than 5% shares in the company are as follows:
|
Particulars |
31st March, 2012 |
|
|
|
Number of shares |
% holding in that class of shares |
|
Mahindra & Mahindra Limited |
1,341,203 |
30.39% |
|
Azrael Investments Limited |
416,000 |
9.42% |
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 |
44.139 |
44.040 |
43.882 |
|
|
2)
Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3)
Employee Stock Options Outstanding |
0.000 |
0.000 |
1.346 |
|
|
4)
Reserves & Surplus |
111.969 |
120.691 |
104.657 |
|
|
5)
(Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
156.108 |
164.731 |
149.885 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
59.371 |
55.634 |
55.668 |
|
|
2] Unsecured Loans |
25.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
84.371 |
55.634 |
55.668 |
|
|
DEFERRED TAX LIABILITIES |
4.100 |
2.700 |
2.000 |
|
|
|
|
|
|
|
|
TOTAL |
244.579 |
223.065 |
207.553 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
103.919 |
92.065 |
77.441 |
|
|
Capital work-in-progress |
0.130 |
1.778 |
4.772 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
38.367
|
40.150
|
41.736
|
|
|
Sundry Debtors |
180.347
|
149.885
|
132.191
|
|
|
Cash & Bank Balances |
2.965
|
6.762
|
8.915
|
|
|
Other Current Assets |
0.628
|
0.896
|
0.000
|
|
|
Loans & Advances |
25.111
|
26.247
|
18.521
|
|
Total
Current Assets |
247.418
|
223.940 |
201.363 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
63.604
|
64.063 |
51.408
|
|
|
Other Current Liabilities |
14.642
|
13.861 |
6.802
|
|
|
Provisions |
28.642
|
16.794 |
17.814
|
|
Total
Current Liabilities |
106.888
|
94.718 |
76.024 |
|
|
Net Current Assets |
140.530
|
129.222 |
125.340 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
244.579 |
223.065 |
207.553 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
562.393 |
523.445 |
459.966 |
|
|
|
Other Income |
4.777 |
6.072 |
2.625 |
|
|
|
TOTAL |
567.170 |
529.517 |
462.591 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
376.657 |
351.769 |
|
|
|
|
Changes in inventories of finished goods and work–in–progress |
0.993 |
(1.482) |
|
|
|
|
Employee benefit expenses |
56.153 |
46.238 |
|
|
|
|
Other expenses |
89.149 |
76.198 |
|
|
|
|
TOTAL |
522.952 |
472.723 |
403.010 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
44.218 |
56.794 |
59.581 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
9.841 |
8.638 |
7.216 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION |
34.377 |
48.156 |
52.365 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
14.535 |
10.668 |
13.685 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE EXCEPTIONAL ITEMS AND TAX |
19.842 |
37.488 |
38.680 |
|
|
|
|
|
|
|
|
|
Less/ Add |
EXCEPTIONAL
ITEMS |
21.400 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT /(LOSS)
BEFORE TAX |
(1.558) |
37.488 |
38.680 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
7.534 |
13.153 |
12.929 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) AFTER TAX |
(9.092) |
24.335 |
25.751 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
94.786 |
82.512 |
68.690 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
0.000 |
1.825 |
8.776 |
|
|
|
Dividend |
0.000 |
8.808 |
1.492 |
|
|
|
Tax on Dividend |
0.000 |
1.428 |
1.931 |
|
|
BALANCE CARRIED
TO THE B/S |
85.694 |
94.786 |
82.512 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(2.06) |
5.53 |
5.51 |
|
|
Particulars |
|
|
31.03.2013 |
|
Sales Turnover (Approximately) |
|
|
510.000 |
|
|
|
|
(Less Due to
slow down in Electrical Sector) |
Expected Sales (2013-14) : Rs. 640.000 Millions
The above information has been parted by Mr. Ravi Girisagar.
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
31.12.2012 |
|
Audited / UnAudited |
1st Quarter |
2nd Quarter |
3rd Quarter |
|
|
|
|
|
|
Net Sales |
126.200 |
137.800 |
122.500 |
|
Total Expenditure |
118.400 |
127.400 |
125.500 |
|
PBIDT (Excl OI) |
7.800 |
10.400 |
(3.000) |
|
Other Income |
0.000 |
0.000 |
0.000 |
|
Operating Profit |
7.800 |
10.400 |
(3.000) |
|
Interest |
2.900 |
2.900 |
3.000 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
4.900 |
7.500 |
(6.000) |
|
Depreciation |
4.000 |
4.300 |
4.500 |
|
Profit Before Tax |
0.900 |
3.200 |
(10.500) |
|
Tax |
0.300 |
0.700 |
(1.000) |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
0.600 |
2.500 |
(9.500) |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
0.600 |
2.500 |
(9.500) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
(1.60)
|
4.59 |
5.57
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(0.28)
|
7.16 |
8.41
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(0.44)
|
11.86 |
13.87
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.01)
|
0.23 |
0.26
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.54
|
0.34 |
0.89
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.31
|
2.36 |
2.62
|
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 |
Yes |
|
10] |
Designation of contact person |
Yes |
|
11] |
Turnover of firm for last Four years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
Yes |
|
14] |
Estimation for coming financial year |
Yes |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
No |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
Yes |
|
20] |
Export / Import details (if applicable) |
Yes |
|
21] |
Market information |
---------------------- |
|
22] |
Litigations that the firm / promoter involved in |
---------------------- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
---------------------- |
|
26] |
Buyer visit details |
---------------------- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
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 |
UNSECURED LOAN :
|
Particulars |
As
on 31.03.2012 |
As
on 31.03.2011 |
|
|
|
|
|
Inter corporate deposit |
25.000 |
0.000 |
|
|
|
|
|
Total |
25.000 |
0.000 |
OPERATIONS:
The Company grew marginally by 7%. This year rising interest costs had
slowed down the construction industry which reflected in the lower than
projected off take of the switch gear industry. This did affect the sale of
compound.
But the component business grew by 13% YoY and “Electra” had a major
contribution. “Electra” sales grew by 65% over previous year. “Electra” is now
being sold in over 7 states in India. MCL’s “Electra” sales are a small % of
the market and the Company has invested in additional moulds to increase reach
and volumes in these markets. The production and procurement teams are geared
up to deliver “Electra” with minimum inventory and low lead time.
Rising input costs and forex fluctuation continue to pose a threat to
margin but the Company had taken the initiative to develop alternatives for
local and foreign suppliers. This will help them sustain the competitive
environment. The precision dispensing
MANAGEMENT DISCUSSION AND ANALYSIS :
OVERVIEW :
Subject is one of India's leading players in
the field of composites supplying SMC/DMC compounds and components to the
electrical switchgear, power distribution, automotive and medical equipment
industry. MCL operates out of two
plants, one at Mangaon and the other in Pimpri, Pune. The plant at Mangaon has
a capacity of 15,000 MT of SMC/DMC compound manufacturing based on technology
acquired from Menzolit Fibron. The SMC/DMC component manufacturing plant at the
same location has 6 compression moulding presses ranging from 100 MT to 500 MT
capacity. There are also 3 RTM stations and hand-layup setup to manufacture
components. The plant at Pimpri houses additional compression moulding capacity
along with an innovation lab which focuses on product concept, design and
engineering.
They sell SMC/DMC compounds to OEMs like
L&T, Schneider, Legrand, Siemens, ABB etc. who in turn sell switchgears
largely to the construction industry. The electrical switchgear industry is the
key end user of the company’s products and accounts for almost 60% of MCL’s
revenue. They sell moulded components to the power distribution industry, under
the brand name "Electra" and
to auto & tractor OEMs for whom they make body parts. The component
business for both the electrical and automotive market has been developed in the
last few years.
INDUSTRY OUTLOOK :
F12 saw a slow down in the Electrical Switch
Gear Industry influenced mainly by the slow down in the Construction Industry
and new industrial projects getting stalled postponed. This phenomenon is expected
to reduce growth of the domestic switchgear market in the coming years. The
leading electrical switchgear OEMs have projected flat sales in F13. There is
also increasing competition in this market with the entry of new manufacturers
of SMC/DMC compounds with the latest
manufacturing know-how. The power
distribution market has grown and is further expected to grow in the future as
the central and state governments push the implementation of rural
electrification programs. The turnkey contractors who implement these programs
have also accepted the "Electra" products vis-a-vis existing metal
products. On the other hand, the automotive market is growing but the
acceptance of composites products by auto OEMs has been slow.
PERFORMANCE :
Due to the slowdown in the switchgear
industry, there was negligible growth in the Compound business in F12. On the
other hand, component sales grew by 13%. “Electra” increased its market
presence and grew 65% compared to the last year. The available capacity on the 2,000 T moulding
press has helped to get the business of large parts from one of the truck
OEMs. As a diversification exercise, the
Company had obtained the approval of both the Board and the Shareholders for an
investment in GRP Pipes to meet the anticipated demand of composite pipes in
infrastructure projects. Given the current
slowdown in the approval of infrastructure projects, the GRP Pipe
Project is being put on hold and as a matter of abundant precaution the expected expenses as a result
of holding of the same are being provided for.
INNOVATION AND TECHNOLOGY DEVELOPMENT :
The seamless carbon fibre wind mill blade
which won accolades from ICERP-JEC last year has been successfully put into
production and promises to open up a new market. The R&D team has
successfully designed and developed small moulded components for the
construction industry and is establishing initial sales in India and there is
also potential to export these products. They also target to launch large
liquid storage tanks for the construction industry in F13. MCL is an approved
vendor to Philips and has successfully
designed and developed machine covers for their Medical Equipments. These are
now in production at Mangaon.
The formulation R&D continues its
innovation and contributes to protecting margins in a competitive environment.
They will continue their association with the R&Ds of their reputed
suppliers to develop state of art products for their customers.
OUTLOOK F-13 :
The Company has taken up a modest target for
growth.
Electrical Switch Gear OEMs have predicted
almost flat sales and they will focus on optimising profitability in this
segment. However there are new entrants
in this market whom MCL will approach for product approvals and ensure that
there is growth in the medium term.
In F13, they will seek growth in the power
distribution segment through their "Electra" products. They will also
introduce new products in F13 with continued investment to grow.
SUSTAINABILITY :
In the assessment of DNV and the Mahindra
Quality Way, MCL has upgraded its Quality and Environment and Health Management
Systems and will continue to improve and drive excellence in its internal
manufacturing and business processes.
Rain water harvesting system is being rejuvenated to improve its benefit
to the plant by reducing water costs at Mangaon plant. With an eye on
sustainability they will continue to measure and optimize consumption of
resources to stay competitive and promote a green planet. In pursuit of this,
Mangaon plant is certified for ISO 14001 and OHSAS 18001 and Pimpri Plant will
be certified by June, 2012.
SYNERGIES WITH PARENT :
SYNERGIES WITHIN MAHINDRA SYSTECH :
MCL is part of the Mahindra Systech Sector in the
Mahindra Group, which aims to leverage the global competitiveness of Indian
Companies. Companies within Mahindra Systech are present across three groups:
(a) Components – forgings, castings,
stampings, ferrites, composites and gears
(b) Alloy steel and rings manufacturing
(c) Services – engineering and design services
and contract sourcing.
The sector derives significant advantages of
synergies and cross selling because of its presence in multiple component
technologies. The sector is able to provide a basket of products and services
to customers, largely OEMs or tier 1 suppliers, thereby enabling it to
differentiate itself from competitors. A unified business development structure
has been created by which Systech - wide key account managers have been
assigned to large customers. The efforts of all Systech companies around web
presence, collaterals, event planning etc have been harmonized. Systech
companies also regularly explore synergies in areas of procurement, sourcing
and product development. For example, Mahindra Systech made a joint
presentation of abilities to Ordnance Factories and located potential for
composite moulded products for defense. There is a regular exchange of best
practices across Systech companies in areas like Finance, HR and
Administration. The management of
Mahindra Systech is contemplating bringing together all its component
companies to create a large listed multi technology firm.
RELATIONSHIP WITH MAHINDRA GROUP :
Mahindra and Mahindra Limited, subject parent
Company and the flagship Company of the Mahindra group is one of the leading
automotive manufacturers in India. M&M is an anchor customer but there is
an arms-length relationship between M&M and the Systech companies.
Association with the Mahindra Group aids MCL in winning new businesses and
obtaining financial assistance. MCL adheres to the corporate values, principles
and established corporate governance practices of the Mahindra Group.
In January 2011, the Mahindra Group launched a
new brand identity “Rise” which rests on three brand pillars: accepting no
limits, alternative thinking and driving positive change. MCL is using the idea
of “RISE” to invigorate its employees and achieve its long term goals. “RISE”
provides a clear guide for business decisions by catalyzing ambitious and
innovative internal growth.
FIXED ASSETS :
·
Leasehold Land
·
Improvements to Leasehold
Premises
·
Buildings
·
Plant and Machinery
·
Furniture and Fixture
·
Vehicles
·
Office equipment
·
Computers
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. 54.91 |
|
|
1 |
Rs. 84.44 |
|
Euro |
1 |
Rs.71.32 |
INFORMATION DETAILS
|
Information
Gathered by : |
SVA |
|
|
|
|
Report Prepared
by : |
ANK |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
44 |
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.