MIRA
INFORM REPORT
|
Report Date : |
14.02.2014 |
IDENTIFICATION DETAILS
|
Name : |
MAHINDRA HINODAY INDUSTRIES LIMITED (w.e.f.18.11.2010) |
|
|
|
|
Formerly Known
As : |
MAHINDRA CASTINGS LIMITED (w.e.f.17.12.2009) MAHINDRA CASTINGS PRIVATE LIMITED |
|
|
|
|
Registered
Office : |
Mahindra Towers, Dr. P.K. Kurne Chowk, G. M. Bhosale Marg ,Worli,
Mumbai - 400018, Maharashtra |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
30.08.2007 |
|
|
|
|
Com. Reg. No.: |
11-173636 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.465.767
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U27100MH2007PLC173636 |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAFCM2152F |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business
: |
Manufacturing of Castings, Magnet for Vehicles, Coils and Electrode-Less
Lamps. |
|
|
|
|
No. of Employees
: |
2000 [Approximately] |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (47) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 5600000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is part of Mahindra and Mahindra Group. It is well established reputed company having a satisfactory track
record. The company is continuously incurring losses from its operation. However, trade relations are fair. Business is active. Payments are
reported to be usually correct and as per commitments. In view of strong holding the company can be considered normal for
business dealings at usual trade terms and conditions. |
NOTES:
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
INDIAN ECONOMIC OVERVIEW
The worst is over for India’s economy with gross domestic product likely
to expand 5 %to 5.5 % this year and more than 6 % in 2015, according to Moody’s
Analytics. Concerns over the rupee and current account deficit are under
control, said the agency. Ratings firm Crisil has forecast 6 % growth for 2014/15
up from the estimated 4.8 % for 2013/14. Total economic growth,
infrastructure bottlenecks and lack of transparency and consistency in foreign
direct investment policies seem to have taken a toll on India’s attractiveness
as an investment destination, says an Ernst & Young survey. Projects
with FDI component fell 16.4 % across the globe in 2012 from the previous
year. The drop in India was steeper at 21 %. State run carrier Air India
is doling out free tickets to its 24000 employees, even as it expects to incur
a loss of Rs.39000 mn this financial year and has a debt of Rs.350000 mn.
550000 number of jobs generated across India in 2013, a fall of 0.4 % as
compared to with a year earlier. The National Capital Region has a
one-fourth share in total jobs created, according to a study by industry lobby
group Assochem, Banks, real estate, automobile and telecommunications sectors
are showing a rise of job creation. $ 805 mn investments by venture capital
firms in India during 2013, registering a drop of about 18 % over the previous
year. The Information Technology and IT-Enabled Services Industry retained
its status as the favourable venture capital investors in 2013. Pakistan has
temporarily banned gold imports for the second time in six months, as it tries
to stem smuggling into India. India’s import duty on gold is 10 % and curbs on
purchases have dried up legal imports into what used to be the world’s biggest
bullion buyers. The World Gold Council puts the amount smuggled into India at
upto 200 tonnes in 2013. The Reserve Bank of India has proposed that unclaimed
bank deposits estimated to be about Rs.35000 mn be used for education and
awareness among depositors. According to the plan, deposits that have not
been claimed for at least 10 years will be transferred to the scheme.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Long term Fund Based Facility : (BBB-) |
|
Rating Explanation |
The moderate credit quality it carries
higher than average credit risk. |
|
Date |
January 12, 2012 |
|
Rating Agency Name |
ICRA |
|
Rating |
Short term Fund Based Facility : A3 |
|
Rating Explanation |
The moderate credit quality it carries
higher credit risk. |
|
Date |
January 12, 2012 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION PARTED BY
|
Name : |
Mr. Nitin Sonawane |
|
Designation : |
Finance Officer |
|
Contact No.: |
91-20-27120811 |
|
Date : |
13.02.2014 |
LOCATIONS
|
Registered Office/ Factory : |
Mahindra Towers, Dr. P.K. Kurne Chowk, G. M. Bhosale Marg ,Worli,
Mumbai - 400018, Maharashtra, India |
|
Tel. No.: |
91-20-27120811/ 27128592/ 24905632/ 24931441 |
|
Fax No.: |
91-20-27128592/ 24915890/ 24900833 |
|
E-Mail : |
|
|
Website : |
|
|
Area : |
8 acres |
|
Location : |
Leased |
|
|
|
|
Factory 1 : |
Gat No. 318, Gaon Urse, Taluka Maval, Pune - 410506, Maharashtra,
India |
|
Tel No.: |
91-2114-237061/ 2/ 3, 287068 |
|
Fax No.: |
91-2114-237064 |
|
|
|
|
Factory 2 : |
Bhosari Industrial Estate, Pune - 411026, Maharashtra, India |
|
Tel No.: |
91-20-27120812/ 66120521/ 27120811/ |
|
Fax No.: |
91-20-27121689 |
DIRECTORS
(AS ON 26.07.2013)
|
Name : |
Mr. Hemant Hans Raj Luthra |
|
Designation : |
Chairman |
|
Address : |
Breach Candy Garden, Flat No.6, 2nd Floor, 68 Bhulabhai Desai
Road, Opposite Amarsons, Mumbai – 400026, Maharashtra, India |
|
Date of Birth/Age : |
18.04.1949 |
|
Date of Appointment : |
30.08.2007 |
|
DIN No.: |
00231420 |
|
|
|
|
Name : |
Mr. Zhooben Dosabhoy Bhiwandiwala |
|
Designation : |
Director |
|
Address : |
S-13, Cusrow Baug, Shahid Bhagat Singh Road, Colaba, Mumbai – 400039,
India |
|
Date of Birth/Age : |
09.12.1959 |
|
Date of Appointment : |
22.01.2008 |
|
DIN No.: |
00110373 |
|
|
|
|
Name : |
Mr. Rajan Wadhera |
|
Designation : |
Director |
|
Address : |
1203, Oberai Gardens, ‘C’ Wing, Thakur Village, Kandivali (East),
Mumbai - 400101, Maharashtra, India |
|
Date of Birth/Age : |
10.07.1956 |
|
Date of Appointment : |
30.08.2007 |
|
DIN No.: |
00416429 |
|
|
|
|
Name : |
Mr. Krishnan Ramaswami |
|
Designation : |
Director |
|
Address : |
Flat No. 202, Building H2, Bevedere Rachna Housing Society, Opposite
Ozone Mall, Anudh, Pune – 411007, Maharashtra, India |
|
Date of Birth/Age : |
08.06.1954 |
|
Date of Appointment : |
31.08.2012 |
|
DIN No.: |
00517598 |
|
|
|
|
Name : |
Mr. Sanjay Narendrakumar Arte |
|
Designation : |
Director |
|
Address : |
501, Ashoka-1, 15th Road, Khar (West), Mumbai – 400052,
Maharashtra, India |
|
Date of Birth/Age : |
05.12.1958 |
|
Date of Appointment : |
22.01.2008 |
|
DIN No.: |
01000716 |
|
|
|
|
Name : |
Mr. Vikram Nirula |
|
Designation : |
Director |
|
Address : |
704, Gypsy Rose, Shastri Nagar, Ajmera Complex, Andheri (West),
Mumbai-400053, Maharashtra, India |
|
Date of Birth/Age : |
28.08.1972 |
|
Date of Appointment : |
22.01.2008 |
|
DIN No.: |
01655115 |
KEY EXECUTIVES
|
Name : |
Mr. Nitin Sonawane |
|
Designation : |
Finance Officer |
|
Email : |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 26.07.2013)
SHAREHOLDING DETAILS FILE ATTACHED
(AS ON 30.09.2013)
Equity Shares Break – up
|
Category |
|
Percentage |
|
|
|
|
|
Bodies
corporate |
|
99.93 |
|
Others |
|
0.07 |
|
|
|
|
|
Total
|
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of Castings, Magnet for Vehicles, Coils and
Electrode-Less Lamps. |
||||||||||
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|
||||||||||
|
Products : |
|
GENERAL INFORMATION
|
No. of Employees : |
2000 [Approximately] |
||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||
|
Bankers : |
Ø Bank of Baroda Corporate Financial Services Branch, Mantri Court, 39, Ramabai
Ambedkar Road, Pune - 411001, Maharashtra, India (Tel No.: 91-20-26058284) Ø IDBI Bank
Limited IDBI Tower, WTC Complex, Cuffe Parade, Mumbai - 400005, Maharashtra,
India (Tel No.: 91-22-66937000) Ø Saraswat
Co-operative Bank Limited C/2, Kohinoor Estate Hosing Society, Plot No. 2, Mula Road,
Sangamwadi, Pune - 411003, Maharashtra, India Ø ING Vyasya Bank Ø State Bank of
India Industrial Finance Branch – Pune, Tara chambers, Wakdewadi, Pune –
411003, Maharashtra, India |
||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||
|
Facilities : |
|
||||||||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
B K Khare and Company Chartered Accountants |
|
Address : |
706/708, Sahrda Chambers, New Marine Lines, Mumbai - 400020, Maharashtra, India |
|
Tel. No.: |
91-22-22000607/ 7318/ 6360/ 56315835/ 36 |
|
Fax No.: |
91-22-22003476 |
|
E-Mail : |
|
|
PAN
No.: |
AAAFB0265E |
|
|
|
|
Holding Company : |
Mahindra and
Mahindra Limited, India [L65990MH1945PLC004558] |
|
|
Ty+-+ |
|
Fellow
Subsidiary companies : |
·
Mahindra Navistar Automotives Limited, India · Mahindra Navistar Engines Private Limited, India · Mahindra Vehicle Manufacturing Limited, India · Mahindra Ugine Steel Company Limited, India · Mahindra Steel Service Centre Limited, India · Mahindra Engineering and Chemicals Products Limited, India · Mahindra Forgings Limited, India · Mahindra First Choice Wheels Limited, India · Mahindra Two Wheelers Limited, India · Mahindra Sanyo Special Steel Private Limited, India · Mahindra World City Developers Limited, India · Mahindra Gujarat Tractor Limited, India · Mahindra Aero Structures Private Limited, India · Mahindra Logistics Limited, India · Bristlecone India Limited, India · Mahindra Gears and Transmissions Private Limited, India · Mahindra First Choice Services Limited, India |
CAPITAL STRUCTURE
(AS ON 26.07.2013)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
57,000,000 |
Equity Shares |
Rs.10/- each |
Rs.570.000 Millions |
|
15,000,000 |
8% Cumulative Redeemable Preference Shares |
Rs.10/- each |
Rs.150.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs.720.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
46,576,717 |
Equity Shares |
Rs.10/- each |
Rs.465.767
Millions |
|
|
|
|
|
FINANCIAL DATA
[All figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
465.767 |
465.767 |
430.167 |
|
(b) Reserves & Surplus |
925.009 |
1,107.143 |
1,041.069 |
|
(c) Money received against
share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money
pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
1,390.776 |
1,572.910 |
1,471.236 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
910.165 |
953.121 |
1,060.028 |
|
(b) Deferred tax liabilities
(Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long term
liabilities |
7.038 |
9.906 |
3.626 |
|
(d) long-term provisions |
98.704 |
96.060 |
74.135 |
|
Total
Non-current Liabilities (3) |
1,015.907 |
1,059.087 |
1,137.789 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
58.938 |
227.804 |
249.357 |
|
(b) Trade payables |
1,116.472 |
1,024.522 |
710.187 |
|
(c) Other current liabilities |
483.181 |
402.863 |
259.605 |
|
(d) Short-term provisions |
21.508 |
32.979 |
79.285 |
|
Total
Current Liabilities (4) |
1,680.099 |
1,688.168 |
1,298.434 |
|
|
|
|
|
|
TOTAL |
4,086.782 |
4,320.165 |
3,907.459 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
2,591.832 |
2,620.692 |
2,261.211 |
|
(ii) Intangible Assets |
12.133 |
10.398 |
12.158 |
|
(iii) Capital work-in-progress |
36.605 |
117.454 |
219.945 |
|
(iv) Intangible assets under
development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
38.584 |
40.025 |
40.025 |
|
(c) Deferred tax assets (net) |
0.000 |
64.804 |
108.530 |
|
(d) Long-term Loan and Advances |
17.264 |
10.592 |
90.030 |
|
(e) Other Non-current assets |
12.029 |
7.212 |
12.377 |
|
Total
Non-Current Assets |
2,708.447 |
2,871.177 |
2,744.276 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
567.120 |
639.036 |
489.939 |
|
(c) Trade receivables |
660.404 |
637.175 |
493.286 |
|
(d) Cash and cash equivalents |
57.975 |
64.099 |
22.783 |
|
(e) Short-term loans and
advances |
75.753 |
82.779 |
121.587 |
|
(f) Other current assets |
17.083 |
25.899 |
35.588 |
|
Total
Current Assets |
1,378.335 |
1,448.988 |
1,163.183 |
|
|
|
|
|
|
TOTAL |
4,086.782 |
4,320.165 |
3,907.459 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Operations |
4787.798 |
4972.519 |
3751.699 |
|
|
|
Other Income |
21.706 |
29.749 |
10.729 |
|
|
|
TOTAL |
4809.504 |
5002.268 |
3762.428 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
2208.358 |
2486.538 |
1842.028 |
|
|
|
Changes in
inventories of finished goods, work-in-progress and stock-in-trade |
75.794 |
(120.849) |
(105.757) |
|
|
|
Employee benefit expense |
526.019 |
480.994 |
399.706 |
|
|
|
Other expenses |
1720.247 |
1837.198 |
1427.126 |
|
|
|
TOTAL |
4530.418 |
4683.881 |
3563.103 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
279.086 |
318.387 |
199.325 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
158.815 |
164.688 |
91.390 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION |
120.271 |
153.699 |
107.935 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
237.601 |
218.128 |
155.652 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX |
(117.330) |
(64.429) |
(47.717) |
|
|
|
|
|
|
|
|
|
Less |
TAX |
64.804 |
43.727 |
26.696 |
|
|
|
|
|
|
|
|
|
|
PROFIT (LOSS)
AFTER TAX |
(182.134) |
(108.156) |
(74.413) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(677.671) |
(569.515) |
(495.102) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(859.805) |
(677.671) |
(569.515) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Exports at F.O.B. Value |
1372.418 |
1118.361 |
694.483 |
|
|
|
Commission Income |
3.363 |
1.232 |
0.000 |
|
|
TOTAL EARNINGS |
1375.781 |
1119.593 |
694.483 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
238.429 |
181.435 |
118.333 |
|
|
|
Components and spare parts |
32.683 |
33.512 |
26.321 |
|
|
|
Capital Goods |
9.677 |
90.567 |
139.805 |
|
|
TOTAL IMPORTS |
280.789 |
305.514 |
284.459 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(3.91) |
(2.41) |
(1.91) |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
(3.79)
|
(2.16) |
(1.98) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(2.45)
|
(1.30) |
(1.27) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(2.92)
|
(1.57) |
(1.35) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.08)
|
(0.04) |
(0.03) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.70
|
0.75 |
0.89 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.82
|
0.86 |
0.90 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR
in Mlns.) |
(INR
in Mlns.) |
(INR
in Mlns.) |
|
Share Capital |
430.167 |
465.767 |
465.767 |
|
Reserves & Surplus |
1,041.069 |
1,107.143 |
925.009 |
|
Net
worth |
1,471.236 |
1,572.910 |
1,390.776 |
|
|
|
|
|
|
long-term borrowings |
1,060.028 |
953.121 |
910.165 |
|
Short term borrowings |
249.357 |
227.804 |
58.938 |
|
Total
borrowings |
1,309.385 |
1,180.925 |
969.103 |
|
Debt/Equity
ratio |
0.890 |
0.751 |
0.697 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR
in Mlns) |
(INR
in Mlns) |
(INR
in Mlns) |
|
Sales |
3,751.699 |
4,972.519 |
4,787.798 |
|
|
|
32.540 |
-3.715 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR) |
(INR) |
(INR) |
|
Sales |
3,751.699 |
4,972.519 |
4,787.798 |
|
Profit |
-74.413 |
-108.156 |
-182.134 |
|
|
-1.98% |
-2.18% |
-3.80% |
LOCAL AGENCY FURTHER INFORMATION
CURRENT MATURITY
OF LONG TERM BORROWINGS DETAIL:
|
Particulars |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
(Rs. In Millions) |
||
|
Current Maturity of Long Term Borrowings |
368.580 |
319.338 |
NA |
|
Sr. No. |
Check List by Info Agents |
Available in Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
Yes |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
Yes |
|
10] |
Designation of contact person |
Yes |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
----- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm / promoter
involved in |
----- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
----- |
|
26] |
Buyer visit details |
----- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director, if
available |
Yes |
|
33] |
Voter ID No of Proprietor/Partner/Director,
if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
UNSECURED LOANS
|
Particulars |
31.03.2013 |
31.03.2012 |
|
|
(Rs. In Millions) |
|
|
Long Term
Borrowings |
|
|
|
Deferred Payment Liabilities |
131.669 |
163.418 |
|
|
|
|
|
Total |
131.669 |
163.418 |
CORPORATE INFORMATION:
The company is a public
company domiciled in India and incorporated under the provisions of the
Companies Act, 1956. The company is engaged in the manufacturing of castings,
magnet for vehicles, coils and electrode-less Lamps. The company caters both
domestic and international markets.
PERFORMANCE REVIEW
During the year,
the company registered revenue of Rs.4809.500 Millions as compared to revenue
of Rs.5002.300 Millions in the previous year resulting in de-growth of 3.85%.
With this fall in revenues and increased depreciation cost of expansion, the
losses during the year increased from Rs.108.200 Millions to Rs.182.100
Millions.
The management has
taken various actions to improve performance of the Company which resulted in
higher Profit Before Tax of 4.37% in the Fourth Quarter of the financial year.
The Management would continue its efforts to bring turnaround in the coming
years.
FOUNDRY DIVISION (FD):
Sales for the
division declined to Rs.3649.100 Millions during the year from Rs.3779.400
Millions in the previous year. The sales dropped as almost all the segments in
the automotive sector registered a negative growth except Utility Vehicles.
Considering low demand, the company has turned off one of the new lines for
almost one full year.
Responding to this
situation, the management took series of actions to bring down the breakeven
point which led to a turnaround for the division in the fourth quarter.
Necessary actions were taken to increase the value add products (in house turbo
charger production increased during the year by 25%), reduce buying cost,
reduce consumption of material and power, while effectively controlling the
fixed cost.
Various actions
are underway to increase sales which include share increase with customers, new
business from existing customers and new stomers.
MAGNETIC PRODUCTS DIVISION (MPD):
In a year of
depressed demand situation, the division could hold its revenues close to the
last year level. There was a steep increase in electricity tariff and gas
prices. This was compounded by internal issues on the industrial relations
front. Despite these challenges the division continued to remain Profit before
Tax and cash flow positive.
The divisions new
initiative of Induction Lighting is progressing well with a good customer base
developing which will enable the Company to get bigger volume contracts in the
future.
MARKET SCENARIO
Markets tapered
down from Second Quarter of the financial year 2012 - 13 on account of high interest
rates, rising fuel costs and general slowdown. The medium and heavy commercial
vehicles and off-highway markets showed negative growth (15% and 10%
respectively) whereas passenger car also slowed down in the last quarter (12%)
after recording consistent growth for several successive quarters.
For the Magnetic
Products Division, domestic motorcycle segment growth for the year fell short
of expectation. However, export demand for Company’s product cores remained
good as more and more products were developed for automotive applications.
The general market
sentiment for financial year 2013 -14 is not very optimistic.
The Foundry
Division has started diversifying into high-volume passenger car parts and is
in the process of acquiring select customers (Original Equipment
Manufacturers/Tier 1) to de-risk itself. It has also started working for next
generation materials and expanding its leadership position in niche products.
Demand for magnets
is expected to come from the localisation pressure on domestic Original
Equipment Manufacturers as imports become expensive. The aggressive work done
in product development during the second half of the year is expected to
contribute significantly to the sales in coming year.
CONTINGENT
LIABILITIES
|
Particulars |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
(Rs. in millions) |
||
|
Income tax demands disputed in appellate proceedings |
21.578 |
22.633 |
10.036 |
|
Disputed demands in respect of Excise duty (Net of protest money) |
2.852 |
4.180 |
28.088 |
|
Cess |
10.535 |
10.535 |
10.535 |
|
Bank Guarantees |
77.011 |
54.614 |
37.567 |
|
Claims against the company not acknowledged as debt:-Stamp duty |
29.007 |
29.007 |
29.007 |
|
Sales Bill Discounting |
42.645 |
-- |
-- |
INDEX OF CHARGES:
|
S. No. |
Charge
ID |
Date
of Charge Creation/ Modification |
Charge
amount secured |
Charge
Holder |
Address |
Service
Request Number (SRN) |
|
1 |
10279485 |
30/04/2011
* |
100,000,000.00 |
Saraswat
Co-Operative Bank Limited |
C/2,
KOHINOOR ESTATE HSG. SOC., PLOT NO.12, MULA |
B13067095 |
|
2 |
10253654 |
30/04/2011
* |
700,000,000.00 |
IDBI
Bank Limited |
IDBI
TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA |
B13059456 |
|
3 |
10240295 |
30/04/2011
* |
350,000,000.00 |
ING
VYSYA BANK LIMITED |
928
MANTRI CENTRE, F. C. ROAD, PUNE, MAHARASHTRA |
B12991345 |
|
4 |
10033623 |
03/09/2013
* |
550,000,000.00 |
State
Bank of India |
INDUSTRIAL
FINANCE BRANCH - PUNE, TARA CHAMBERS, |
B85218113 |
|
5 |
90085580 |
11/07/2002
* |
75,000,000.00 |
INDUSTRIAL
DEVELOPMENT BANK OF INDIA |
IDBI
TOWER, WTC COMPLEX; COLABA, MUMBAI, MAHARASHTRA - 400005, INDIA |
- |
|
6 |
90387081 |
07/08/2004
* |
209,400,000.00 |
BANK
OF BARODA |
CORPORATE
BANKING BRANCH, MANTRI COURT, PUNE, MAHARASHTRA, INDIA |
- |
|
7 |
90084191 |
17/09/2012
* |
780,000,000.00 |
BANK
OF BARODA (CORPORATE FINANCIAL SERVICES BRANCH) (Lead Bank) |
CORPORATE
FINANCIAL SERVICES BRANCH, MANTRI COURT , 39, RAMABAI AMBEDKAR ROAD, PUNE,
MAHARASHTRA - |
|
* Date of charge modification
FIXED ASSETS:
· Land Leasehold
· Land Free Hold
· Building
· Plant and Machinery
· Electrical Equipment
· Furniture and Fixture
· Office Equipment
· Computer
· Vehicle
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.62.27 |
|
|
1 |
Rs.103.47 |
|
Euro |
1 |
Rs.84.87 |
INFORMATION DETAILS
|
Information Gathered
by : |
PDT |
|
|
|
|
Report Prepared
by : |
NIT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
47 |
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.