MIRA INFORM REPORT
|
Report Date : |
24.10.2013 |
IDENTIFICATION DETAILS
|
Name : |
TECH MAHINDRA LIMITED |
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Registered
Office : |
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Country : |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
24.10.1986 |
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Com. Reg. No.: |
11-041370 |
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Capital
Investment / Paid-up Capital : |
Rs.1281.000 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
l64200mh1986plc041370 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
mumm15369E |
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|
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PAN No.: [Permanent Account No.] |
aaacm3484F |
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Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on the
Stock Exchange. |
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Line of Business
: |
Services Provider of Computer Software, Telecom IT Solution. |
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|
No. of Employees
: |
25000 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (81) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 160000000 |
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|
Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a Mahindra Group Company. It is a well established and
reputed company having excellent track record. Financial position of the
company appears to be strong. Fundamentals of the company are strong and
healthy. Further the rating also takes into consideration reputed promoters
and experienced managements. Trade relations are fair. Business is active. Payments terms are
reported to be regular and as per commitment. The company can be considered normal for business dealing at usual
trade terms and condition. The company can be considered promising business partners 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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
The finance ministry
has started preparations for Budget 2014/15. With general elections scheduled
to be held by May next year, there will only be an interim budget. The new
government will present the fiscal Budget.
The Supreme Court has
barred clinical trials for new drugs till a monitoring mechanism is put in
place to protect the lives of people on which the drugs are tested.
Mumbai has been
named the world’s second most honest city according to a survey on 15 cities
worldwide by Readers’ Digest magazine. Finnish capital Helsinki bagged the top
spot for the world’s most honest city while Lisbon, the capital of Portugal,
proved to be the least honest. The survey put hundreds of people to test
in four continents to find out just how honest they were by dropping wallets
and seeing how many would be returned.
3.7 % Growth of the
core sector in August, a seven month high. This takes the overall growth in
April-August this year to 2.3 % compared with 6.3 % in the corresponding period
next financial year.
$19 million
Estimated average spending by companies across the globe including India, on
social media this year, according to a global study by information technology
major Tata Consultancy Services. This will rise to $ 24 million in 2015.
Rising inflation,
fewer employment avenues and dwindling earnings are taking a toll on the
spending capacity in India. Over 72 % respondents from middle and lower middle
income families would be forced to slash their Diwali expenditure by 40 % and
on average spend nearly 25 % of their monthly salary on Diwali, according to a
survey by Assochem.
Analysts believe the
shutdown of the US government would have limited impact in sectors such as IT
or tourism that are dependent on Visa clearances.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long Term Bank Facilities = AAA |
|
Rating Explanation |
Highest degree of safety it carry lowest credit risk |
|
Date |
15.10.2013 |
|
Rating Agency Name |
CARE |
|
Rating |
Short Term Bank Facilities = A1+ |
|
Rating Explanation |
Highest degree of safety it carry lowest credit risk. |
|
Date |
15.10.2013 |
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 : |
Gateway Building, Apollo Bunder, Mumbai – 400 001, Maharashtra, India |
|
Tel. No.: |
91-22-22021031 |
|
Fax No.: |
Not Available |
|
E-Mail : |
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|
Website : |
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Location: |
Owned |
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|
Corporate Office : |
Plot No. 1, Phase III, Rajiv Gandhi Infotech Park,
Hinjewadi, Pune – 411 057
Maharashtra, India |
|
Tel. No.: |
91-20-42250000 |
|
Fax No.: |
91-20-42252501 |
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Branch ffice: |
Located at :
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Overseas
Branches : |
Located at :
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DIRECTORS
As on 31.03.2013
|
Name : |
Mr. Anand G Mahindra |
|
Designation : |
Chairman |
|
|
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|
Name : |
Mr. Vineet Nayyar |
|
Designation : |
Vice-Chairman and Managing Director |
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|
Name : |
Mr. C. P. Gurnani |
|
Designation : |
Managing Director |
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|
Name : |
Hon. Akash Paul |
|
Designation : |
Director |
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|
Name : |
Mr. Anupam Puri |
|
Designation : |
Director |
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|
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|
Name : |
Mr. B. H. Wani |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Bharat N. Doshi |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. M. Damodaran |
|
Designation : |
Director |
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|
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|
Name : |
Mr. Paul Zuckerman |
|
Designation : |
Director |
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|
|
|
Name : |
Dr. Raj Reddy |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Ravindra Kulkarni |
|
Designation : |
Additional Director w.e.f. 30th March
2009 |
|
|
|
|
Name : |
Mr. T. N. Manoharan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Ulhas N.Yargop |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Milind Kulkarni |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Mr. G. Jayaraman |
|
Designation : |
Company Secretary and Chief Compliance Officer |
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COMMITTEES OF DIRECTORS |
|
|
Audit Committee |
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Compensation & Nominations
Committee |
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|
Investor
Grievances-cum-Share Transfer Committee |
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Executive Committee |
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|
Securities
Allotment Committee |
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MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2013
|
Particulars |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
60676252 |
26.11 |
|
|
24000000 |
10.33 |
|
|
24000000 |
10.33 |
|
|
84676252 |
36.44 |
|
|
|
|
|
|
60726 |
0.03 |
|
|
60726 |
0.03 |
|
Total shareholding of Promoter and Promoter Group (A) |
84736978 |
36.46 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
16059482 |
6.91 |
|
|
361991 |
0.16 |
|
|
409338 |
0.18 |
|
|
18341485 |
7.89 |
|
|
75733143 |
32.59 |
|
|
110905439 |
47.72 |
|
|
|
|
|
|
4294843 |
1.85 |
|
|
|
|
|
|
24550107 |
10.56 |
|
|
3798141 |
1.63 |
|
|
4105529 |
1.77 |
|
|
846194 |
0.36 |
|
|
2332060 |
1.00 |
|
|
586340 |
0.25 |
|
|
340348 |
0.15 |
|
|
587 |
0.00 |
|
|
36748620 |
15.81 |
|
Total Public shareholding (B) |
147654059 |
63.54 |
|
Total (A)+(B) |
232391037 |
100.00 |
|
(C) Shares held by Custodians and against which Depository
Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
232391037 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Services Provider of Computer Software, Telecom IT Solution. |
GENERAL INFORMATION
|
No. of Employees : |
25000 (Approximately) |
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Bankers : |
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Facilities : |
(Rs.
In Millions)
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Banking
Relations : |
--- |
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Auditors : |
|
|
Name : |
Deloitte, Haskins and Sells Chartered Accountants |
|
Address : |
Mumbai, Maharashtra, India |
|
|
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Promoter/Enterprise
having significant Influence : |
|
|
|
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|
Promoter : |
British Telecommunications Plc. |
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|
Subsidiary Company
: |
Tech Mahindra
(Americas) Inc. and its following 100 % subsidiaries
Comviva Technologies Limited and its following 100 % subsidiaries:
|
|
|
|
|
Associate Company : |
|
CAPITAL STRUCTURE
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
175000000 |
Equity Shares |
Rs.10/- each |
Rs.1750.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
128119023 |
Equity Shares |
Rs.10/- each |
Rs.1281.000
Millions |
|
|
|
|
|
Disclosure pursuant to
Part I of Schedule VI to the Companies Act, 1956 Reconciliation of the number
of shares outstanding at the beginning and at the end of the reporting period
|
Particulars |
March 31, 2013 |
|
|
|
Equity Shares |
|
|
|
Number |
Rs. In Millions |
|
Shares outstanding at the beginning of the year |
127,486,541 |
1274.865 |
|
Shares Issued during the year |
632,482 |
6.325 |
|
Shares outstanding at the end of the year |
128,119,023 |
1281.190 |
No of shares held by each
shareholder holding more than 5 percent equity shares of the Company are as
follows
|
Name of Shareholder |
March 31, 2013 |
|
|
|
No. of Shares held |
% of Holding |
|
Mahindra and Mahindra Limited |
60,676,252 |
47.36 |
|
British Telecommunications PLC |
- |
- |
|
Life Insurance Corporation of India |
13,276,058 |
10.36 |
The Company has only one class of shares referred to as equity shares having a par value of Rs. 10/-. Each holder of equity shares is entitled to one vote per share.
The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
The Board of Directors in their meeting on May 21, 2013 proposed a final dividend of Rs.5 per equity share. The proposal is subject to approval of shareholders at the Annual General Meeting.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
1281.000 |
1275.000 |
1260.000 |
|
(b) Reserves & Surplus |
40544.000 |
33157.000 |
32580.000 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending
allotment |
3.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
41828.000 |
34432.000 |
33840.000 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
3000.000 |
6000.000 |
6400.000 |
|
(b) Deferred tax liabilities (Net) |
2270.000 |
4309.000 |
3931.000 |
|
(c) Other long term
liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term
provisions |
1692.000 |
1706.000 |
1338.000 |
|
Total Non-current
Liabilities (3) |
6962.000 |
12015.000 |
11669.000 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
8045.000 |
5266.000 |
5427.000 |
|
(b) Trade
payables |
5644.000 |
4684.000 |
3034.000 |
|
(c) Other
current liabilities |
8046.000 |
5831.000 |
5324.000 |
|
(d) Short-term
provisions |
2060.000 |
1388.000 |
1510.000 |
|
Total Current
Liabilities (4) |
23795.000 |
17169.000 |
15295.000 |
|
|
|
|
|
|
TOTAL |
72585.000 |
63616.000 |
60804.000 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
7133.000 |
6463.000 |
5970.000 |
|
(ii)
Intangible Assets |
68.000 |
63.000 |
30.000 |
|
(iii)
Capital work-in-progress |
284.000 |
1627.000 |
608.000 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
38075.000 |
31332.000 |
31149.000 |
|
(c) Deferred tax assets (net) |
944.000 |
820.000 |
532.000 |
|
(d) Long-term Loan and Advances |
4496.000 |
3341.000 |
4103.000 |
|
(e) Other
Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current
Assets |
51000.000 |
43646.000 |
42392.000 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
1203.000 |
0.000 |
|
(b)
Inventories |
0.000 |
0.000 |
0.000 |
|
(c) Trade
receivables |
13725.000 |
12431.000 |
6.000 |
|
(d) Cash
and cash equivalents |
2711.000 |
1389.000 |
9643.000 |
|
(e)
Short-term loans and advances |
3310.000 |
2747.000 |
1938.000 |
|
(f) Other
current assets |
1839.000 |
2200.000 |
6825.000 |
|
Total
Current Assets |
21585.000 |
19970.000 |
18412.000 |
|
|
|
|
|
|
TOTAL |
72585.000 |
63616.000 |
60804.000 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
60019.000 |
52430.000 |
49655.000 |
|
|
|
Other Income |
(952.000) |
677.000 |
1266.000 |
|
|
|
TOTAL (A) |
59067.000 |
53107.000 |
50921.000 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Employee Benefit Expenses |
25138.000 |
22625.000 |
19438.000 |
|
|
|
Subcontracting Expenses |
15524.000 |
11528.000 |
20927.000 |
|
|
|
Operating and Other Expenses |
7573.000 |
8968.000 |
0.000 |
|
|
|
Exceptional Items |
0.000 |
679.000 |
0.000 |
|
|
|
TOTAL (B) |
48235.000 |
43800.000 |
40365.000 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
10832.000 |
8307.000 |
10556.000 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1090.000 |
1025.000 |
1113.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
9742.000 |
7282.000 |
9443.000 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1570.000 |
1505.000 |
1383.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
8172.000 |
5777.000 |
8060.000 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
1647.000 |
1171.000 |
1093.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
6525.000 |
4606.000 |
6967.000 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
24068.000 |
22412.000 |
17740.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to Debenture Redemption Reserve |
1348.000 |
1353.000 |
702.000 |
|
|
|
Final Dividend |
0.000 |
4.000 |
6.000 |
|
|
|
Proposed Dividend |
641.000 |
510.000 |
504.000 |
|
|
|
Tax on Dividend |
109.000 |
83.000 |
83.000 |
|
|
|
Transfer to General Reserve |
1000.000 |
1000.000 |
1000.000 |
|
|
BALANCE CARRIED
TO THE B/S |
27495.000 |
24068.000 |
22412.000 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Income from Services |
55497 |
47028 |
41657.000 |
|
|
|
Other Income |
3.000 |
0.000 |
0.000 |
|
|
|
Contract Settlement Fees received |
0.000 |
0.000 |
377.000 |
|
|
|
Rent Received |
2.000 |
41.000 |
51.000 |
|
|
|
Interest Received |
7.000 |
5.000 |
2.000 |
|
|
TOTAL EARNINGS |
55509.000 |
47074.000 |
42087.000 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Components and spare parts |
8.000 |
9.000 |
14.000 |
|
|
|
Capital Goods |
293.000 |
637.000 |
736.000 |
|
|
TOTAL IMPORTS |
301.000 |
646.000 |
750.000 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
51.10 |
36.27 |
55.81 |
|
|
|
Diluted |
49.99 |
34.86 |
53.36 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2013 |
|
Type |
|
|
1st
Quarter |
|
Net Sales |
|
|
35528.800 |
|
Total Expenditure |
|
|
28052.700 |
|
PBIDT (Excl OI) |
|
|
7476.100 |
|
Other Income |
|
|
1612.900 |
|
Operating Profit |
|
|
9089.000 |
|
Interest |
|
|
171.500 |
|
Exceptional Items |
|
|
0.000 |
|
PBDT |
|
|
8917.500 |
|
Depreciation |
|
|
1017.200 |
|
Profit Before Tax |
|
|
7900.300 |
|
Tax |
|
|
191.600 |
|
Provisions and contingencies |
|
|
0.000 |
|
Profit After Tax |
|
|
5988.700 |
|
Extraordinary Items |
|
|
0.000 |
|
Prior Period Expenses |
|
|
0.000 |
|
Other Adjustments |
|
|
0.000 |
|
Net Profit |
|
|
5988.700 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
11.05
|
8.67 |
13.68 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
13.62
|
11.02 |
16.23 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
24.55
|
19.36 |
28.27 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.20
|
0.17 |
0.24 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.26
|
0.33 |
0.35 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.91
|
1.16 |
1.20 |
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 |
Yes |
|
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 |
|
LITIGATION DETAILS |
|||||||
|
HIGH COURT OF BOMBAY |
|||||||
|
Bench:- Bombay |
|
||||||
|
Ldging No.: |
CEXAL/288/2013 |
Failing Date:- |
30/10/2013 |
|
|
|
|
|
|
|||||||
|
Petitioner:- |
The Commissioner of Center Excise |
Respondent:- |
TECH MAHINDER LIMITED |
||||
|
Petn.Adv:- |
J.B. MISHRA |
||||||
|
District:- |
PUNE |
||||||
|
|
|||||||
|
Bench:- |
Single |
Category:- |
CENTRAL EXCISE APPEAL (CEXA) |
||||
|
Status:- |
Pre-Admission |
|
|||||
|
|
|
||||||
|
Act:- |
Central Excise and Salt Act Under Section : 35(G) |
||||||
UNSECURED LOAN
Rs. In
Millions
|
Particular |
As
on 31.03.2013 |
As
on 31.03.2012 |
|
SHORT TERM
BORROWINGS |
|
|
|
Working Capital Loan** |
508.000 |
0.000 |
|
Export Packing Credit ** |
4143.000 |
5160.000 |
|
Inter Corporate
Deposits |
|
|
|
Inter Corporate Deposits from related parties |
2850.000 |
0.000 |
|
Total |
7501.000 |
5160.000 |
|
** Due for repayment within 6 months from date of disbursement of loan. |
||
BUSINESS PERFORMANCE
/ FINANCIAL OVERVIEW
The company continues to lead the India IT services and solutions provider space for the Telecom Industry, serving segments such as Telecom Services Providers (TSPs), Telecom Equipment Manufacturers (TEM’s) and Independent Software Vendors (ISV’s) with a wide array of services catering to the changing needs of the Telecom ecosystem.
In fiscal 2012-13 the Company’s consolidated revenues increased to Rs.68731.000 Millions from Rs.54897.000 Millions in the previous year, at a growth rate of 25.2%. It includes revenue of Rs.6561.000 Millions from acquisition business. The geographical split of revenue was quite balanced with 45% share from Europe, 33.2% from Americas and 21.8% from the Rest of the World (ROW).
The consolidated Profit before Interest, Depreciation, Tax and Exceptional items was at Rs.13495.000 Millions (19.6% of revenue) against Rs.10164.000 Millions (18.5% of revenue) in the previous year. This improvement in operating profits was driven by revenue growth and cost efficiencies in addition to benefit from depreciation of rupee.
The consolidated Profit after tax, after exceptional items and minority interest amounted to Rs.7914.000 Millions as against Rs.5385.000 Millions in the previous year, an increase of 46.96%.
The consolidated Profit after tax, including share of profit/(loss) in associate company (Mahindra Satyam), amounted to Rs.12878.000 Millions as against Rs.10955.000 Millions in the previous year, a growth rate of 17.6%.
The global technology landscape continues to be shaped by both economic forces and by the emergence of new trends like social media and cloud computing. The lingering crisis in Europe, volatile financial markets and government austerity programs could impact spend on IT in the coming year. Our Customers have to face the twin challenges of optimizing current IT spend and investing in future technologies and trends. The underlying strength of the global delivery model and the significant benefits it offers to global customers could help corporations in achieving both objectives. the Company has been providing solutions, which leverage the global delivery model, to Telecom companies to improve Customer experience, bring in operational efficiencies and improve TSP customer’s Average Revenue Per User (ARPU).
The company serves large global telecom companies as well as green field operators across more than 31 countries. The number of active customers has increased from 130 in the last year to 151 at the end of the Fiscal 2012-13, and the focus for the coming year is broadening their relationships across their customer base leveraging their Six Pillar Strategy.
the company’s services offerings are grouped in six distinct domains based on the areas of customer spend. The six domains which are Applications, Networks, Infrastructure, Value Added Services (VAS), Security solutions and Business Services together covering almost all areas of customers spend in their target markets.
Customer Centricity and enhancing customer experience has always been a focus area for the Company. This year the Company launched a Customer Centricity Office (CCO), with a Chief Customer Centric officer to ensure that the high levels of customer experience are sustained.
the Company continues to invest in new technologies like smart computing products, cloud, analytics and mobility. These investments will help the Company capitalize on the emerging revenue opportunities in these areas. the Company’s domain expertise and leading solutions in the telecom vertical has earned itself a niche in the market place. Voice and Data – India’s leading communication magazine ranked the Company as India’s No. 1 Telecom Software service provider.
the company today, has more than 15 delivery centers worldwide and 17 sales offices. In the year gone by, Tech Mahindra acquired Hutchison Global Services Private Limited and also acquired 51% stake on a fully diluted basis in Comviva Technologies Limited, a Bharti Group Company.
In summary, the Company is well positioned in the markets it serves with a broad range of service offerings and a diversified customer base across geographies.
MANAGEMENT DISCUSSION
AND ANALYSIS
COMPANY OVERVIEW
Subject is a leading provider of IT Services, Networking Technology Solutions and Business Support Services to the global telecommunications industry. Formed in 1986, in partnership with British Telecommunications plc (BT), it is part of the US $15.9 billion Mahindra Group. In the year 2009 it expanded its IT portfolio by acquiring the leading global business and information technology services company, Satyam Computer Services Limited. (re-branded as Mahindra Satyam). In the previous year on 21st March 2012, the merger between Tech Mahindra and Mahindra Satyam was announced thus making way for the creation of a leading services organization in the Indian IT offshore landscape. Tech Mahindra received approval for merger of Mahindra Satyam with it from the Bombay High Court on 28th September 2012. Mahindra Satyam had filed its Petition on 27th June 2012 with the Honorable High Court of Andhra Pradesh, and the said petition was admitted on 9th July 2012. Hearing in the matter is concluded before the Honorable High Court of Andhra Pradesh closed for summer vacation and the order is awaited.
Tech Mahindra has garnered revenues of Rs.68.7 Billion (US$ 1,263 Million) in Financial Year 2012-2013 (FY13). The Company has over 47,500 professionals who provide a unique blend of domain expertise and in-depth technology skill-sets.
Tech Mahindra has proven domain expertise in the Telecom domain with differentiated skills, research and development capabilities and innovative delivery models. The Company’s solutions enable its clients to maximize returns on their investments, achieve faster time-to-market, reduce total cost of ownership and provide better customer experience. Its capabilities cover a wide array of services including System Integration (SI), Managed Services (MS), Operations Support Systems (OSS), Business Support Systems (BSS), Infrastructure Management Services (IMS), Network Services, Security Consulting, Product Engineering and Business Support Services (BSG/BPO). The Company has been focusing on delivering comprehensive services to Telecom Service Providers (TSPs), Telecom Equipment Manufacturers (TEMs) and Independent Software Vendors (ISVs) and is best positioned to leverage telecom IT outsourcing opportunities through its service offerings across the Telecom value chain. It has more than 150 active client engagements, predominantly in the Telecom Sector. Tech Mahindra’s achievements have been recognized by various industry analysts, forums and clients. The organization has also won several prestigious awards and accolades. Tech Mahindra has principal offices in the UK, United States, Germany, UAE, Egypt, Singapore, India, Thailand, Taiwan, Malaysia, Philippines, Canada and Australia. The Company has an extensive global foot print with 17 sales offices and 15 delivery centres in more than 31 countries around the world.
INDUSTRY STRUCTURE
AND DEVELOPMENT
As per the NASSCOM Strategic report 2013, the global spend on Technology and related services for Calendar Year (CY) 2012 was US$ 1.9 trillion a growth of 4.8% over CY 2011. IT, BPM services and software products continued to lead, accounting for over USD 1 trillion – 58% of the total IT spend. IT hardware with growth rate of ~7%; touched USD 797 billion and accounted for the remaining 42% of the worldwide technology spend in 2012. With persistent uncertainties the new role of the technology sector in general is to enhance customer capabilities, help open untapped markets, drive transformation and create a positive impact on business outcomes.
Information Technology (IT) is the very essence of the telecommunication industry. New technologies, new business models, new smart phones and increasing data usage have increased the telecom industry’s dependence on IT. All along Telco’s have to deal with increasing competition, investment in Capex and declining margins. The challenge for Telco would be to balance the ever- increasing need for sophisticated IT with the need to help keep the IT costs reasonable. The size of India IT industry including domestic IT and Hardware would be ~USD 108 billion in FY13 of which exports would be ~USD $76 billion. Hi Tech / Telecom would have a share of ~18% of the India IT industry’s exports. Tech Mahindra would be one of the largest Telecom software services company in India.
For Indian IT FY 2013 has been a year of transition and transformation. Strong economic growth, rapid advancement in technology infrastructure, increasingly competitive Indian organizations, enhanced focus by the government and emergence of business models that help provide IT to new customer segments are key drivers for increased technology adoption in India.
The IT BPM sector has been one of the highest impact sector for India and it has increased its share of contribution to India’s GDP by ~3 times in the last 10 years. As a proportion of national GDP, the sector revenues have grown from 1.2% in FY1998 to ~ 8% in FY2013. The total exports share is ~24% which grew more than 5 times in the last 10 years. Expansion in new verticals and geographies, SMAC based services, transformation and innovation and business model restructuring were the key business drivers. Increased acceptance of platform BPM solutions was the key highlight as the focus was on transforming client business through a mix of re-engineering skills, technology enablement and new service delivery models.
Globally, India has been accepted as one of the disruptive forces in the IT BPM market, growing over CAGR of 25% during FY 2000 – 2013, four times higher than the global IT BPM spend during the same period. The Indian IT-BPM industry has maintained its global leadership not only due to its inherent strengths of competitive cost and talent, but also due to the fact that it has kept evolving to suit the rapidly changing client requirements. Pricing models have been shifting from traditional effort based to outcome based, also there has been emphasis on driving non-linearity.
The industry has seen a shift towards smaller deals. The fluctuating economic conditions have an indelible impact on the global IT BPM ecosystem. Client budgets have been under pressure which in turn has led to them signing up for small deals, of lesser duration. Line of business owners are going ahead with their but focused requirements. The trend signifies growing maturity of model and hence higher risk taking initiatives by clients. From around three lakh employee base in FY 2000, the industry presently employs nearly three Million people with over 580 global delivery centers in nearly 75 countries and its differentiated growth trajectory, the industry has become poster child for other sectors.
As a result of consumerisation of connected smart devices, consumer behaviour has caused an evolution and convergence of four powerful forces: Social Media, Mobility, Analytics and Cloud (SMAC). SMAC has re-oriented the business model of traditional IT-BPM firms, by shifting focus from cutting costs and managing IT infrastructure, to a move towards creative solutions that help clients’ business grow.
OUTLOOK
In the coming year; fiscal consolidation is likely to weigh on growth in the advanced economies. According to IMF the global economy is expected to continue mending gradually. In its April 2013 report, IMF expected the real global GDP growth of 3.3%, which is about the same as the 3.2% growth seen in year 2012. It mentions that for USA the private demand though has been showing strength as credit and housing markets heal; the larger-than-expected fiscal adjustment is projected to keep real GDP growth to about 2% in 2013. In the euro area, IMF expects the real GDP to contract by about 0.25% in 2013. Growth in emerging market and developing economies is expected to remain robust, strengthening from about 5% in 2012 to 5.25% in 2013 and 5.75% in 2014.
On IT spend trend, the budgetary tightening has led to smaller IT budgets translating to smaller deal sizes, and reduction in certain existing business lines and market segments. However, there is a clear delinking of overall IT-BPM spending with respect to economic turmoil in the past few years, and this has been fuelled by rising consumerisation of the enterprise segment, which has in turn, meant a lot for clients – it has led to increased competition, with players leveraging new forms of services to create a differentiating factor. It has also led to change management issues, and both these areas have been effective sources of new business for existing and new IT-BPM organizations. New areas such as mobile, social, cloud and analytics is increasingly driving technology spending, and will emerge as mainstays as this decade progresses further.
The global telecom services market is expected to remain roughly fl at over the several years, with declining spending on voice services and fixed services data counterbalanced by strong growth in spending on mobile data services. Devices remain the fastest-growing segment in the IT industry, as sustained strong demand for Smartphone’s and tablets is expected to overcompensate for stalling PC sales. In 2013, total spending on PCs, tablets, mobile phones and printers is expected to reach $718 billion, up 9% from 2012.
Mobility continues to grow with focus on bandwidth increases (4G/LTE) and complimentary devices. Spectrum availability and capital requirement for advanced technologies is a growing concern. The most important events in 2013 will cluster around growth and innovation, built on mobile devices, cloud services, social technologies and Big Data. IT spend in 2013 is expected to exceed $2.1 trillion, up 5.7% from 2012, driven by double-digit growth in the Three Platform foundations of Mobile, Cloud, Big Data and social technologies – and by emerging markets growth. Mobile devices are the new primary design point for end user access. Sale of smart mobile devices (smart phones and tablets) will surge. The real “PC versus mobile device” battle is between PC software platform and the mobile device platform.
As cloud services become the center of competition in many IT market segments, it is critically important for traditional IT suppliers to get more “cloud DNA” into their organizations and top accelerate growth of cloud service platforms. The industry is trending towards BYOD – Bring the Own Device. BYOD will bring consumerization into enterprise security. Growth is exponential in this area but uncertain tax, legal and security issues are still a concern. Businesses will struggle with enterprise social network sprawl as more businesses move from experimentation to integration — dealing with more enterprise products having embedded ESNs — while employees are increasingly reluctant to give up their favorite consumer and departmental social network tools for the corporate IT sponsored ESN.
Big Data Investment, MandA focus will shift heavily to discovery and prediction. The “digital universe” is expected to expand by almost 50% given the rapid emergence of new data capture and generation technologies and solutions. The growing focus is on technologies that incorporate advanced analytics functionality, including predictive analysis.
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10168762 |
07/05/2013 * |
3,000,000,000.00 |
AXIS TRUSTEE SERVICES LIMITED |
AXIS HOUSE, 2ND FLR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI, MAHARASHTRA - 400025, INDIA |
B75468025 |
|
2 |
10036409 |
25/02/2011 * |
6,500,000,000.00 |
IDBI BANK LIMITED |
DNYANESHWAR PADUKA CHOWK, F.C. ROAD, SHIVAJI NAGAR, PUNE, MAHARASHTRA - 411004, INDIA |
B07344930 |
* Date of charge modification
FIXED ASSETS
·
Vehicle
·
·
·
Leasehold Improvements
·
·
Computers
·
Plant and Machinery
·
Furniture and Fixture
·
Intellectual Property rights
AS PER WEBSITE DETAILS:
PRESS RELEASES
FIIS INVESTMENT LIMIT
IN TECH MAHINDRA RAISED TO 45% READ MORE AT:
October 12, 2013
This limit has been revised from earlier limit of 35 percent of the paid up capital of the company under Portfolio Investment Scheme.
The Reserve Bank today enhanced the limit for foreign institutional investors (FIIs) to purchase shares in Tech Mahindra up to 45 percent of the paid up capital of the company.
The Reserve Bank of India today notified that Tech Mahindra has passed resolutions, agreeing of enhancing the limit for the purchase of its equity shares and convertible debentures by FIIs, through primary market and stock exchanges up to 45 percent," RBI said in a notification.
This limit has been revised from earlier limit of 35 percent of the paid up capital of the company under Portfolio Investment Scheme.
This limit has been revised from earlier limit of 35 percent of the paid up capital of the company under Portfolio Investment Scheme.
FIIs, NRIs and persons of India origin (PIOs) are allowed to invest in the primary and secondary capital markets in India through the PIS.
Under the scheme, FIIs/NRIs can acquire shares/debentures of Indian companies through the stock exchanges in India.
On October 24, 2013, at 13:50 hrs Tech Mahindra was quoting at Rs 1543.10, down Rs 6.7, or 0.43 percent. The 52-week high of the share was Rs 1594.00 and the 52-week low was Rs 865.25.
The company's trailing 12-month (TTM) EPS was at Rs 46.63 per share as per the quarter ended June 2013. The stock's price-to-earnings (P/E) ratio was 33.09. The latest book value of the company is Rs 184.44 per share. At current value, the price-to-book value of the company was 8.37.
TECH MAHINDRA BAGS
OUTSOURCING DEAL FROM VOLVO
September 12, 2013
IT firm Tech Mahindra today said it won a contract from Sweden's Volvo Car Corporation for application maintenance and development. No financial details were disclosed. According to sources, the three-year deal is worth over USD 40 million.
The company will develop, implement and maintain a range of applications for Volvo Cars to help increase efficiency and reduce costs, Tech Mahindra said in a statement. Services will be provided across multiple domains, including manufacturing, product development, marketing and sales and reporting, starting this month, it added.
"We see this contract as an opportunity to increase our contribution to Volvo Cars and further develop our business in the region. Our plans include proactive investment and recruitment from both local universities and the local business domain pool," Tech Mahindra Head-Europe Vikram Nair said.
On October 24, 2013, at 14:01 hrs Tech Mahindra was quoting at Rs 1545.15, down Rs 4.65, or 0.3 percent. The 52-week high of the share was Rs 1594.00 and the 52-week low was Rs 865.25.
The company's trailing 12-month (TTM) EPS was at Rs 46.63 per share as per the quarter ended June 2013. The stock's price-to-earnings (P/E) ratio was 33.14. The latest book value of the company is Rs 184.44 per share. At current value, the price-to-book value of the company was 8.38.
TECH MAHINDRA, BOSCH
SOFTWARE IN GLOBAL SYSTEM INTEGRATOR PARTNERSHIP
October 22, 2013
Tech Mahindra Limited has informed BSE regarding a Press Release dated October 22, 2013 titled " Tech Mahindra and Bosch Software Innovations announces Global System Integrator Partnership". Tech Mahindra and Bosch Software Innovations today announced a global strategic business partnership which will primarily focus on the global manufacturing and transportation industry.
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.61.53 |
|
|
1 |
Rs.99.75 |
|
Euro |
1 |
Rs.84.75 |
INFORMATION DETAILS
|
Report Prepared
by : |
NTH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
81 |
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.