MIRA
INFORM REPORT
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Report Date : |
14.06.2014 |
IDENTIFICATION DETAILS
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Name : |
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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 : |
02.10.1945 |
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Com. Reg. No.: |
11-004558 |
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Capital
Investment / Paid-up Capital : |
Rs.2951.600
Millions |
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CIN No.: [Company Identification
No.] |
L65990MH1945PLC004558 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMM01692F |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacturer of Light Commercial Vehicles, Agricultural
Tractors, Implements and Utility Vehicles. |
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No. of Employees
: |
15147 [Approximately] |
RATING & COMMENTS
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MIRA’s Rating : |
A (69) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 580000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Exist |
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Comments : |
Subject is a well-established and reputed company having good track. The company possesses a strong financial profile marked by healthy debt coverage and liquidity indicators derived from the liquid investments, favourable working capital cycle with strong accruals from its opeerations during FY 13. The rating also take into consideration the high exposure to its group companies, most of which are incurring losses and prevalling slow down in the automobile sector with stiff competition. Trade relations are fair. Business is active. Payments are reported as regular and as per commitments. In view of vast experience of the promoters and well educated management, the company can be considered for business dealings at usual trade terms and conditions.
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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 31, 2014
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Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
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India |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
US investment bank Goldman
Sachs has upgraded its outlook on Indian markets as it expects positive
impact of the election cycle.
India’s economy may
grow 4.7 % in the current financial year, lower than the official estimate of
4.9 %, Fitch Rating said. The global rating agency expects the economy to pick
up in the next two financial years.
Global ratings
agency Standard & Poor said increasing focus by India Inc on lowering debt
is likely to improve their credit profiles.
Singapore (1.1 million
Indian tourists in 2012), Thailand (one million), the United Arab Emirates
().98 million) and Malaysia ().82 million) emerged as the preferred holidays
hotspots for Indians. The total figure is expected to increase to 1.93 million
by 2017, according to the latest Eurmonitor international report.
There is a $29.34 bn
outward foreign direct investment by domestic companies between April and
January of 2013/14 which has seen some signs of recovery according to a Care
Ratings report.
There are 264 number
of new companies being set up every day on average during 2014. Most of them
are registered in Mumbai. India had 1.38 million registered companies at the
end of January, 2014.
Twitter like
messaging service Weibo Corporation has filed to raise $ 500 million via a US
initial public offering. Alibaba, which owns a stake in Weibo is expected to
raise about $ 15 billion New York this year in the highest profile Internet IPO
since Facebook’s in 2012.
Bharti Airtel has
raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at
a coupon rate of three per cent and maturing in 2020. This is the largest ever
bond offering by an Indian company in Swiss Francs. Bharat Petroleum
Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98
% coupon rate in February.
Indian Oil
Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex
at its almost complete Paradip refinery in Odhisha in three to four years. The
company board is set to consider the setting up of a 700000 tonne per annum
polypropylene plant at an estimated cost at Rs.3150 crore.
Global chief
information officers at gathering in Bangalore in April to meet Indian startups
at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in
the making.
EXTERNAL AGENCY RATING
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Rating Agency Name |
CARE |
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Rating |
AA+ [Long Term Bank Facilities] |
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Rating Explanation |
High degree of safety and very low credit risk. |
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Date |
16.04.2014 |
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Rating Agency Name |
ICRA |
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Rating |
A1+ [Short Term Bank Facilities] |
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Rating Explanation |
Very strong degree of safety and lowest credit risk. |
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Date |
16.04.2014 |
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 DENIED
Management Non Cooperative. (91-22-22021031/ 24901441)
LOCATIONS
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Registered Office : |
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Tel. No.: |
91-22-22021031 |
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Fax No.: |
91-22-22028780 / 22875485 |
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E-Mail : |
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Website : |
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Head Office : |
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Tel No.: |
91-22-24931441 / 24961441 |
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Fax No.: |
91-22-24975081 |
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Factory : |
Akurli Road, Kandivali (East), Mumbai, Maharashtra, India |
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Tel. No.: |
91-22-28849800 |
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Fax No.: |
91-22-28468523 |
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Factory : |
Also Located At: · Nashik · Nagpur · Zaheerabad · Rudrapur · Haridwar · Pune |
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Branch Office : |
Located At : · Chennai · Kolkata · New Delhi ·
Bangalore
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DIRECTORS
As on: 31.03.2013
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Name : |
Mr. Keshub Mahindra |
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Designation : |
Chairman Emeritus (Ceased to be Chairman and Director at the conclusion of the AGM held on 8th August 2012) |
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Name : |
Mr. Anand G Mahindra |
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Designation : |
Chairman and Managing Director |
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Name : |
Mr. Bharat Doshi |
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Designation : |
Executive Director and Group Chief Financial Officer |
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Name : |
Mr. Deepak S. Parekh |
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Designation : |
Director |
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Name : |
Mr. Nadir B Godrej |
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Designation : |
Director |
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Name : |
Mr. M. M. Murugappan |
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Designation : |
Director |
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Name : |
Mr. A .K. Nanda |
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Designation : |
Director |
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Name : |
Mr. Narayanan Vaghul |
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Designation : |
Director |
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Name : |
Dr. A. S. Ganguly |
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Designation : |
Director |
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Name : |
Mr. R. K. Kulkarni |
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Designation : |
Director |
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Name : |
Mr. Anupam Puri |
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Designation : |
Director |
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Name : |
Dr. Vishakha N Desai |
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Designation : |
Director |
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Date of Appointment : |
30.05.2012 |
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Name : |
Mr. Vikram Singh Mehta |
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Designation : |
Director |
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Date of Appointment : |
30.05.2012 |
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Name : |
Mrs. D. Vijayalakshmi |
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Designation : |
Nominee of Life Insurance Corporation of India (Ceased to be a Director with effect from 5th June 2013) |
KEY EXECUTIVES
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Name : |
Narayan Shankar |
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Designation : |
Company Secretary |
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Committees of The Board : |
Audit Committee : ·
Mr. Deepak S. Parekh (Chairman) ·
Mr. Nadir B. Godrej ·
Mr. M. M. Murugappan ·
Mr. R. K. Kulkarni Share Transfer
and Shareholders/ Investors Grievance Committee ·
Mr. A.K. Nanda (Chairman) ·
Mr. Keshub Mahinda ·
Mr. Anand G. Mahindra ·
Mr. Bharat Doshi ·
Mr. R.K. Kulkarni Governance,
Remuneration and Nomination Committee ·
Mr. Narayanan Vaghul (Chairman) ·
Mr. Keshub Mahinda ·
Mr. Nadir B. Godrej ·
Mr. M. M. Murugappan ·
Mr. R.K. Kulkarni Corporate Social
Responsibility Committee · Mr. Anand G. Mahindra (Chairman) · Mr. Bharat Doshi · Mr. A. K. Nanda · Mr. R. K. Kulkarni · Dr. Vishakha N. Desai Strategic
Investment Committee · Mr. Anand G. Mahindra (Chairman) ·
Mr. Keshub Mahinda ·
Mr. Bharat Doshi ·
Mr. Deepak S. Parekh ·
Mr. Nadir B. Godrej ·
Mr. A S Ganguly · Mr. Vikram Singh Mehta · Mr. Anupam Puri Loan And Investment
Committee · Mr. Anand G. Mahindra (Chairman) ·
Mr. Keshub Mahinda ·
Mr. Bharat Doshi ·
Mr. A.K. Nanda ·
Mr. R.K. Kulkarni · Mr. Vikram Singh Mehta Reserch and
Development Committee · Mr. A S Ganguly (Chairman) ·
Mr. Anand G. Mahindra ·
Mr. Bharat Doshi ·
Mr. Nadir B. Godrej ·
Mr. M. M. Murugappan |
SHAREHOLDING PATTERN
AS ON: 31.03.2014
|
Category of
Shareholder |
Total No. of
Shares |
Total
Shareholding as a % of total No. of Shares |
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(A) Shareholding of Promoter and Promoter Group |
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|
3998552 |
0.68 |
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71128386 |
12.16 |
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79965989 |
13.67 |
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51835214 |
8.86 |
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26099905 |
4.46 |
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2030870 |
0.35 |
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155092927 |
26.50 |
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651772 |
0.11 |
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651772 |
0.11 |
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Total shareholding of Promoter and Promoter Group (A) |
155744699 |
26.62 |
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(B) Public Shareholding |
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|
7893492 |
1.35 |
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|
872086 |
0.15 |
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|
711055 |
0.12 |
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88350619 |
15.10 |
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|
227380077 |
38.86 |
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325207329 |
55.58 |
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31620593 |
5.40 |
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37996180 |
6.49 |
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9002999 |
1.54 |
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75 |
0.00 |
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25589134 |
4.37 |
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1946706 |
0.33 |
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|
597 |
0.00 |
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|
1607960 |
0.27 |
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|
920279 |
0.16 |
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|
1767939 |
0.30 |
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19345653 |
3.31 |
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104208981 |
17.81 |
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Total Public shareholding (B) |
429416310 |
73.38 |
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Total (A)+(B) |
585161009 |
100.00 |
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(C) Shares held by Custodians and against which Depository Receipts have
been issued |
0 |
0.00 |
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0 |
0.00 |
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|
30731375 |
0.00 |
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30731375 |
0.00 |
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Total (A)+(B)+(C) |
615892384 |
0.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Light Commercial Vehicles, Agricultural
Tractors, Implements and Utility Vehicles. |
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Products : |
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PRODUCTION STATUS (As on 31.03.2011)
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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1. A.
On Road Automobiles having four or more wheels such as light, medium and
heavy commercial vehicles, jeep type vehicles and passenger cars |
Nos. |
372000 |
304000 |
250906 |
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b. Three Wheelers |
Nos. |
84000 |
72000 |
65203 |
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2. Agricultural tractor |
Nos. |
255300 |
256000 |
216388 |
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3. Manufactured and purchased parts and accessories for sale |
Nos. |
- |
These are manufactured against spare capacity under 1 and 2above |
764299 |
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4. Internal Combustion Piston Engines |
Nos. |
225000 |
225000 |
196630 |
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5. Diesel Genset |
Nos. |
24000 |
Assembly at 3rd Party Locations |
11786 |
|
6. Engines |
Nos. |
-- |
These are manufactured against spare capacity under 2 |
15559 |
|
7. Forklifts |
Nos. |
300 |
180 |
118 |
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8. Harvester Combines |
Nos. |
300 |
540 |
267 |
Note:
(i) (a) The
installed capacity has been certified by President/Chief Executives, which the
auditors have relied on without verification as this is a technical matter.
(b) The licensed capacities
include/represent, as the case may be, registrations granted and Industrial
Entrepreneur Memorandum filed with, and duly acknowledged by, the Government
pursuant to the schemes of de-licensing.
(c) Within the overall
licensed capacity in item 1 above, the Company is permitted to manufacture for
outside sale 10,000 petrol/diesel engines and 4,000 tonnes grey iron castings.
(d) The installed
capacity mentioned against item no. (A) 1(a) above includes 48,000 (2010 : 48,000) for
production of vehicles for third parties.
(ii) Actual
Production includes production for captive consumption.
(iii) (a) The
actual production disclosed against manufactured
components/sub-assemblies/steel blanks is the number of such components
transferred during the year to the Marketing Unit/Spare Parts Stores for sale
or sold otherwise.
(b) The Opening
and Closing Stocks and Sales of goods shown under item 3 above consist of
manufactured and purchased parts. The bifurcation of stocks/sales into
manufactured and bought-out parts is not practicable.
GENERAL INFORMATION
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No. of Employees : |
15147 [Approximately] |
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Bankers : |
· Bank of America N.A. · Bank of Baroda · Bank of India · Canara Bank · Central Bank of India · HDFC Bank Limited · Standard Chartered Bank · State Bank of India · Union Bank of India |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Deloittee Haskins and Sells Chartered Accountants |
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Address : |
Tower 3, 27th – 32nd Floor, Indiabulls Finance Centre, Elphinstone Mill Compound, Senapati Bapat Marg, Elphinstone (West), Mumbai 400 013, Maharashtra, India |
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Advocate : |
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Name : |
Khaitan and Company |
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Address : |
One Indiabulls Centre, 13th Floor, 841, Senapati Bapat Marg, Elphinstone Road, Mumbai 400 013, Maharashtra, India |
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Associates : |
· Mahindra Composites Limited · Vayugrid Marketplace Services Private Limited · Swaraj Engines Limited · Tech Mahindra Limited (w.e.f. 31st August, 2012) · Mahindra and Mahindra Contech Limited |
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Joint Venture : |
· Tech Mahindra Limited (upto 30th August, 2012) · Mahindra Sona Limited |
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Joint Venture of a
Subsidiary : |
· Mahindra Solar One Private Limited · Mahindra Water Utilities Limited |
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Welfare Funds : |
· M and M Benefit Trust · M and M Employees’ Welfare Fund · M and M Employees’ Farm Equipment Sector Employees’ Welfare Fund · Mahindra World School Education Trust |
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Subsidiaries : |
· Mahindra Engineering and Chemical Products Limited · Mahindra Steel Service Centre Limited · Mahindra First Choice Wheels Limited · Mahindra USA Inc. · Mahindra Gujarat Tractor Limited · Mahindra Shubhlabh Services Limited · Mahindra & Mahindra South Africa (Proprietary) Limited · Mahindra Engineering Services Limited · Mahindra Gears & Transmissions Private Limited · Mahindra Overseas Investment Company (Mauritius) Limited · Mahindra Europe S.r.l. · Mahindra (China) Tractor Company Limited · (upto 5th September, 2012) · Mahindra-BT Investment Company (Mauritius) Limited Mahindra Intertrade Limited · Mahindra MiddleEast Electrical Steel Service Centre (FZC) · Mahindra Consulting Engineers Limited · Mahindra Holidays & Resorts India Limited · Mahindra Holidays and Resorts USA Inc. · MHR Hotel Management GmbH · Mahindra Hotels and Residences India Limited · Mahindra Holdings Limited · NBS International Limited · Mahindra Ugine Steel Company Limited · Mahindra & Mahindra Financial Services Limited · Mahindra Insurance Brokers Limited · Mahindra Rural Housing Finance Limited · Bristlecone Limited · Bristlecone Inc. · Bristlecone UK Limited · Bristlecone India Limited · Bristlecone (Singapore) Pte. Limited · Bristlecone GmbH · Bristlecone (Malaysia) Sdn.Bhd. · Mahindra Automobile Distributor Private Limited · Mahindra Navistar Automotives Limited · Mahindra Engineering Services (Europe) Limited · Mahindra Engineering GmbH · Mahindra Lifespace Developers Limited · Mahindra Infrastructure Developers Limited · Mahindra World City (Jaipur) Limited · Mahindra Integrated Township Limited · Mahindra Residential Developers Limited · Mahindra World City Developers Limited · Mahindra World City (Maharashtra) Limited · Knowledge Township Limited · Mahindra Vehicle Manufacturers Limited · Mahindra Logistics Limited · Mahindra Forgings Limited · Mahindra Forgings International Limited · Mahindra Forgings Europe AG · Gesenkschmiede Schneider GmbH · JECO-Jellinghaus GmbH · Falkenroth Umformtechnik GmbH · Stokes Group Limited · Jensand Limited (upto 26th March, 2013) · Stokes Forgings Dudley Limited · Stokes Forgings Limited · Mahindra Forgings Global Limited · Schoneweiss & Co. GmbH · Mahindra Hinoday Industries Limited · Mahindra Navistar Engines Private Limited · Mahindra Aerospace Private Limited · Heritage Bird (M) Sdn.Bhd. · Mahindra First Choice Services Limited · Mahindra Graphic Research Design S.r.l. · Mahindra Gears International Limited · Mahindra Gears Global Limited · Mahindra Gears Cyprus Limited · Metalcastello S.p.A. · Mahindra Bebanco Developers Limited · Industrial Township (Maharashtra) Limited · Crest Geartech Private Limited · Mahindra Business & Consulting Services Private Limited · Mahindra Two Wheelers Limited · Mahindra Automotive Australia Pty. Limited · Mahindra United Football Club Private Limited · Defence Land Systems India Private Limited · Mahindra Yueda (Yancheng) Tractor Company Limited · Mahindra Electrical Steel Private Limited · Raigad Industrial & Business Park Limited · Retail Initiative Holdings Limited · Mahindra Retail Private Limited · Mahindra Technologies Services Inc. · Mahindra Punjab Tractors Private Limited · Mahindra Namaste Private Limited (formerly known as Mahindra EcoNova Private Limited) · Mahindra Conveyor Systems Private Limited · BAH Hotelanlagen AG · Mahindra Aerospace Australia Pty. Limited · Aerostaff Australia Pty. Limited · Mahindra Reva Electric Vehicles Private Limited · Bristlecone Consulting Limited · Anthurium Developers Limited · Watsonia Developers Limited · Gipp Aero Investments Pty. Limited · Gippsaero Pty. Limited · GA8 Airvan Pty. Limited · GA200 Pty. Limited · Airvan Flight Services Pty. Limited · Nomad TC Pty. Limited · Mahindra Emirates Vehicle Armouring FZ-LLC · Mahindra Integrated Business Solutions Private Limited (formerly known as Mahindra BPO Services Private Limited) · Mahindra Aerostructures Private Limited · Ssangyong Motor Company · Ssangyong European Parts Center B.V. · Ssangyong Motor (Shanghai) Company Limited · Ssangyong (Yizheng) Auto Parts Manufacturing Company Limited · Mahindra EPC Services Private Limited · Bristlecone International AG · EPC Industrie Limited · Mahindra Telecommunications Investment Private Limited · Mahindra Sanyo Special Steel Private Limited (formerly known as Navyug Special Steel Private Limited) · Bell Tower Resorts Private Limited · Mahindra Racing S.r.l. · Swaraj Automotives Limited · Mahindra Defence Naval Systems Private Limited (w.e.f. 18th May, 2012) · Mahindra Defence Systems Limited (w.e.f. 30th July, 2012) · Divine Heritage Hotels Private Limited (w.e.f. 9th August, 2012) · Gables Promoters Private Limited (w.e.f. 24th August, 2012) · Jiangxi Mahindra Yueda Tractor Company Limited (w.e.f. 5th September, 2012) · 2 X 2 Logistics Private Limited (w.e.f. 22nd October, 2012) · Holiday on Hills Resorts Private Limited (w.e.f. 25th October, 2012) · MH Boutique Hospitality Limited (w.e.f. 2nd November, 2012) · Infinity Hospitality Group Company Limited (w.e.f. 5th November, 2012) · Mahindra Tractor Assembly Inc. (w.e.f. 25th January, 2013) · Mahindra Housing Private Limited (w.e.f. 29th March, 2013) |
CAPITAL STRUCTURE
After 13.08.2013
Authorised Capital : Rs.6250.000
Millions
Issued, Subscribed & Paid-up Capital : Rs.3079.462
Millions
As on: 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1200000000 |
Ordinary (Equity) Shares |
Rs.5/- each |
Rs.6000.000 Millions |
|
2500000 |
Unclassified Shares |
Rs.100/- each |
Rs.250.000 Millions |
|
|
Total |
|
Rs.6250.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
613980756 |
Ordinary (Equity) Shares |
Rs.5/- each |
Rs.3069.900
Millions |
|
23657485 |
Less : Ordinary (Equity) Shares |
Rs.5/- each |
Rs.118.300
Millions |
|
|
Total |
|
Rs.2951.600 Millions |
Reconciliation of
number of Ordinary (Equity) Shares and amount outstanding :
|
|
2013 |
|
|
|
No. of shares |
Rupees in Millions |
|
Issued and
Subscribed : |
|
|
|
Balance as at the beginning of the year |
61,39,74,839 |
3069.900 |
|
Add : |
|
|
|
Shares issued under Schemes of Arrangement |
5,917 |
* |
|
Balance as at the end of the year |
61,39,80,756 |
3069.900 |
|
Less : |
|
|
|
Shares issued to ESOP Trust but not allotted to Employees |
2,36,57,485 |
118.300 |
|
Adjusted : Issued
and Subscribed Share Capital |
59,03,23,271 |
2951.600 |
* denotes amounts less than Rs. 0.050 Million
The Ordinary (Equity) shares of the Company rank pari-passu in all respects including voting rights and entitlement to dividend.
Details of Ordinary
(Equity) shares held by shareholders holding more than 5% of the aggregate
shares in the Company :
|
Name of the
Shareholder |
2013 |
|
|
|
No. of shares |
% shareholding |
|
(i) Prudential Management and Services Private Limited |
6,99,86,970 |
11.40 |
|
(ii) Life Insurance Corporation of India |
6,52,03,016 |
10.62 |
|
(iii) M&M Benefit Trust |
5,18,35,214 |
8.44 |
|
(iv) The Bank of New York Mellon (for GDR holders) |
3,29,49,467 |
5.37 |
Issued and Subscribed Share Capital includes an aggregate of 6,61,99,551 (2012 : 6,61,93,634) Ordinary (Equity) Shares of Rs. 5 each allotted as fully paid-up pursuant to Schemes of Arrangement without payment having been received in cash, for a period of five years immediately preceding the end of the financial year.
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 |
2951.600 |
2945.200 |
2936.200 |
|
(b) Reserves & Surplus |
143637.600 |
118101.700 |
100197.500 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.200 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
146589.200 |
121046.900 |
103133.900 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
31724.400 |
31738.300 |
23119.500 |
|
(b) Deferred tax liabilities (Net) |
6148.500 |
5271.300 |
3543.800 |
|
(c) Other long term liabilities |
4154.000 |
2747.700 |
1872.500 |
|
(d) long-term provisions |
4415.900 |
3634.900 |
4213.800 |
|
Total Non-current Liabilities (3) |
46442.800 |
43392.200 |
32749.600 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
546.300 |
3.900 |
91.500 |
|
(b) Trade payables |
55797.100 |
47363.500 |
39526.700 |
|
(c) Other current
liabilities |
10521.700 |
12267.000 |
7294.500 |
|
(d) Short-term provisions |
14638.800 |
13626.100 |
12601.600 |
|
Total Current Liabilities (4) |
81503.900 |
73260.500 |
59514.300 |
|
|
|
|
|
|
TOTAL |
274535.900 |
237699.600 |
195397.800 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
47510.600 |
40526.100 |
30015.700 |
|
(ii) Intangible Assets |
2068.000 |
2407.400 |
1313.400 |
|
(iii) Capital
work-in-progress |
4955.400 |
5699.300 |
5340.100 |
|
(iv) Intangible
assets under development |
3679.400 |
2248.000 |
2396.700 |
|
(b) Non-current Investments |
105715.000 |
92604.500 |
82053.600 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
20874.700 |
14766.800 |
18681.300 |
|
(e) Other Non-current assets |
298.500 |
364.500 |
1170.200 |
|
Total Non-Current Assets |
185101.600 |
158616.600 |
140971.000 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
12619.600 |
10369.000 |
7202.700 |
|
(b) Inventories |
24197.700 |
23583.900 |
16942.100 |
|
(c) Trade receivables |
22083.500 |
19285.300 |
12603.100 |
|
(d) Cash and cash
equivalents |
17814.100 |
11884.300 |
6146.400 |
|
(e) Short-term loans and
advances |
7634.000 |
9309.900 |
8379.400 |
|
(f) Other current assets |
5085.400 |
4650.600 |
3153.100 |
|
Total Current Assets |
89434.300 |
79083.000 |
54426.800 |
|
|
|
|
|
|
TOTAL |
274535.900 |
237699.600 |
195397.800 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Operations |
404411.600 |
318471.900 |
234602.600 |
|
|
|
Other Income |
5491.700 |
4721.200 |
4341.500 |
|
|
|
TOTAL (A) |
409903.300 |
323193.100 |
238944.100 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
207498.700 |
188045.200 |
198884.500 |
|
|
|
Purchases of Stock-in-Trade |
97526.800 |
52925.800 |
|
|
|
|
Changes in Inventories of Finished Goods, Work-in-Progress, Stock-in-Trade and Manufactured Components |
(873.100) |
(5973.300) |
|
|
|
|
Employee Benefits Expense |
18664.500 |
17017.800 |
|
|
|
|
Other Expenses |
35332.900 |
29547.800 |
|
|
|
|
Cost of Manufactured Products Capitalised |
(831.200) |
(735.300) |
|
|
|
|
Exceptional Item |
(906.200) |
(1082.700) |
|
|
|
|
TOTAL (B) |
356412.400 |
279745.300 |
198884.500 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
53490.900 |
43447.800 |
40059.600 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1911.900 |
1627.500 |
724.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
51579.000 |
41820.300 |
39334.700 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
7108.100 |
5761.400 |
4138.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
44470.900 |
36058.900 |
35196.100 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
10942.700 |
7270.000 |
8575.100 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
33528.200 |
28788.900 |
26621.000 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
79050.000 |
62090.000 |
45880.000 |
|
|
|
|
|
|
|
|
|
Add/ Less |
TRANSFER
FROM/(TO) DEBENTURE REDEMPTION RESERVE (NET) |
150.000 |
140.000 |
360.000 |
|
|
|
|
|
|
|
|
|
|
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
4000.000 |
3000.000 |
2750.000 |
|
|
|
Dividend |
7980.000 |
7680.000 |
7060.000 |
|
|
|
Tax on Dividend |
930.000 |
1010.000 |
960.000 |
|
|
BALANCE CARRIED
TO THE B/S |
99520.000 |
79050.000 |
62091.000 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of goods on F.O.B. basis |
22250.200 |
17024.900 |
10520.600 |
|
|
|
Interest |
179.200 |
143.700 |
97.200 |
|
|
|
Others |
1104.300 |
763.000 |
381.200 |
|
|
TOTAL EARNINGS |
23533.700 |
17931.600 |
10999.000 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
9.600 |
26.000 |
16.600 |
|
|
|
Components, Spare Parts |
7068.600 |
6365.400 |
3683.000 |
|
|
|
Capital Goods |
1418.800 |
1501.100 |
2751.200 |
|
|
|
Items imported for Resale |
462.400 |
724.700 |
241.200 |
|
|
TOTAL IMPORTS |
8959.400 |
8617.200 |
6692.000 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
56.85 |
48.97 |
46.21 |
|
|
|
Diluted |
54.61 |
46.89 |
44.33 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2013 |
|
|
|
|
1st
Quarter |
|
Net Sales |
|
|
100225.200 |
|
Total Expenditure |
|
|
87350.800 |
|
PBIDT (Excl OI) |
|
|
12874.400 |
|
Other Income |
|
|
1642.300 |
|
Operating Profit |
|
|
14516.700 |
|
Interest |
|
|
493.300 |
|
Exceptional Items |
|
|
0.000 |
|
PBDT |
|
|
14023.400 |
|
Depreciation |
|
|
1806.300 |
|
Profit Before Tax |
|
|
12217.100 |
|
Tax |
|
|
2838.000 |
|
Provisions and contingencies |
|
|
0.000 |
|
Profit After Tax |
|
|
9379.100 |
|
Extraordinary Items |
|
|
0.000 |
|
Prior Period Expenses |
|
|
0.000 |
|
Other Adjustments |
|
|
0.000 |
|
Net Profit |
|
|
9379.100 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
8.18
|
8.91 |
11.14
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
10.99
|
11.32 |
15.00
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
27.76
|
26.29 |
33.33 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.30
|
0.30 |
0.34 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.22
|
0.26 |
0.23 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.10
|
1.08 |
0.91 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
2,936.200 |
2,945.200 |
2,951.600 |
|
Reserves & Surplus |
100,197.500 |
118,101.700 |
143,637.600 |
|
Net
worth |
103,133.700 |
121,046.900 |
146,589.200 |
|
|
|
|
|
|
long-term borrowings |
23,119.500 |
31,738.300 |
31,724.400 |
|
Short term borrowings |
91.500 |
3.900 |
546.300 |
|
Total
borrowings |
23,211.000 |
31,742.200 |
32,270.700 |
|
Debt/Equity
ratio |
0.225 |
0.262 |
0.220 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Revenue from operations |
234,602.600 |
318,471.900 |
404,411.600 |
|
|
|
35.750 |
26.985 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Revenue from operations |
234,602.600 |
318,471.900 |
404,411.600 |
|
Profit After Tax |
26,621.000 |
28,788.900 |
33,528.200 |
|
|
11.35% |
9.04% |
8.29% |
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 |
No |
|
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 |
Yes |
|
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
|
LITIGATION DETAILS |
||||||||
|
Bench:- Bombay |
|
|||||||
|
Lodging No:- |
WPST/21943/2010 |
Failing Date:- |
25.08.2010 |
Reg. No.:- |
WP/7472/2010 |
Reg. Date:- |
17.09.2010 |
|
|
|
||||||||
|
Petitioner:- |
MAHARASHTRA STATE ELECRICITY DISTRICT |
Respondent:- |
MAHINDRA AND MAHINDRA LIMITED |
|||||
|
Petn.Adv:- |
DSK LEGAL (0) |
Resp.Adv.:- |
PRAFUL SHAH FOR RESPDT (C AND V.P. FILE) |
|||||
|
District:- |
NASHIK |
|||||||
|
|
||||||||
|
Bench:- |
SINGLE |
|||||||
|
Status:- |
Admitted (Unready) |
Stage:- |
FOR ORDERS |
|||||
|
Last Date:- |
13.06.2011 |
|||||||
|
Last Coram:- |
HON’BLE SHRI JUSTICE S.C. DHARMADHIKARI |
|||||||
|
|
|
|||||||
|
Act:- |
Mah. Electricity Regulatory Commission |
|||||||
UNSECURED LOAN
(Rs.
in Millions)
|
Particulars |
As
on 31.03.2013 |
As
on 31.03.2012 |
||||||||||||||||||||||||||||||||||||
|
LONG TERM
BORROWINGS |
|
|
||||||||||||||||||||||||||||||||||||
|
Term Loans from Banks |
17402.000 |
17647.400 |
||||||||||||||||||||||||||||||||||||
|
Fixed Deposits |
479.300 |
148.200 |
||||||||||||||||||||||||||||||||||||
|
Other Loans |
11176.400 |
9942.600 |
||||||||||||||||||||||||||||||||||||
|
SHORT TERM
BORROWINGS |
|
|
||||||||||||||||||||||||||||||||||||
|
Term Loan from Bank |
542.800 |
0.000 |
||||||||||||||||||||||||||||||||||||
|
Fixed Deposits |
3.500 |
2.200 |
||||||||||||||||||||||||||||||||||||
|
Total |
29604.000 |
27740.400 |
||||||||||||||||||||||||||||||||||||
|
NOTES: Term loans from
banks comprise : (i) USD External Commercial Borrowings carrying an average margin of 157 basis points over three month USD Libor and are repayable after five years and one day from the date of respective availment of loan i.e. Rs. 8142.000 Millions in February, 2016, Rs. 5428.000 Millions in August, 2016 and Rs. 2714.000 Millions in September, 2016. (ii) JPY External Commercial Borrowings carrying an average margin of 39 basis points over six month JPY Libor is for a period of five years and one day. The loan is repayable in three equal annual installments from August, 2012. Rs. 111.80 is payable in August, 2014. Fixed deposits are repayable three years from the date of deposit and carry an interest rate of 8.00% and 9.75%. Other Loans
comprise deferred sales tax loans which are interest free and repayable in
five equal installments after ten years from the year of availment of
respective loan. These loans are repayable :
Current maturities in
respect of long term borrowings have been included in Note 10 as under
|
||||||||||||||||||||||||||||||||||||||
INDEX OF CHARGES
|
S. No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10144031 |
03/03/2009 |
4,000,000,000.00 |
Axis Trustee Services Limited |
MAKER TOWERS 'F', 13TH FLOOR, CUFFE PARADE, COLABA, MUMBAI, Maharashtra - 400005, INDIA |
A57476277 |
|
2 |
80017445 |
08/05/2004 * |
20,000,000.00 |
BANK OF BARODA |
INDUSTRIAL FINANCE BRANCH, MUMBAI, Maharashtra - 400001, INDIA |
- |
|
3 |
80017447 |
16/08/2002 * |
500,000,000.00 |
ICICI LIMITED |
BACKBAY RECLAMATION, MUMBAI, Maharashtra - 400020, |
- |
|
4 |
80017449 |
16/08/2002 * |
1,000,000,000.00 |
ICICI LIMITED |
BACKBAY RECLAMATION, MUMBAI, Maharashtra - 400020, |
- |
|
5 |
80017450 |
06/09/2002 * |
700,000,000.00 |
ICICI LIMITED |
BACKBAY RECLAMATION, MUMBAI, Maharashtra - 400020, |
- |
|
6 |
90172400 |
08/01/1996 |
30,000,000.00 |
INDIAN OVERSEAS BANK |
762 ANNA SALAI, MADRAS, Tamil Nadu, INDIA |
- |
|
7 |
80017435 |
28/06/2000 * |
61,600,000.00 |
ICICI LIMITED |
BACKBAY RECLAMATION, MUMBAI, Maharashtra - 400020, |
- |
|
11 |
80017448 |
07/12/2011 * |
6,500,000,000.00 |
State Bank of India |
Neville House, JN Heredia Marg, Ballard Estate, Mumbai, Maharashtra - 400001, INDIA |
B28837565 |
|
12 |
90172388 |
14/03/1983 * |
15,000,000.00 |
INDIAN OVERSEAS BANK |
762 ANNA SALAI, MADRAS, Tamil Nadu, INDIA |
- |
|
13 |
90167781 |
04/06/1982 |
720,000.00 |
INDIAN OVERSEAS BANK |
SECTOR 7, CHANDIGARH, Chandigarh, INDIA |
- |
|
14 |
90172517 |
16/12/1980 |
500,000.00 |
THE GOVERNOR OF PUNJAB CHANDIGARH |
THROUGHG DIRECTOR OF IND. PUNJAB, CHANDIGARH, Chandigarh, INDIA |
- |
|
15 |
90172511 |
12/09/1979 |
500,000.00 |
THE GOVERNOR OF PUNJAB PUNJAB CHANDIGARH |
THROUGH DIRECTOR OF IND. PUNJAB, CHANDIGARH, Chandigarh, INDIA |
- |
|
16 |
90172508 |
28/12/1978 |
500,000.00 |
THE GOVERNOR OF PUNJAB CHANDIGARH |
THROUGH DIRECTOR OF IND. PUNJAB, CHANDIGARH, Chandigarh, INDIA |
- |
|
17 |
90172503 |
15/04/1977 |
350,000.00 |
THE GOVERNOR OF PUNJAB CHANDIGARH |
THROUGH THE DIRECTOR OF IND. PUNJAB, CHANDIGARH, Chandigarh, INDIA |
- |
|
18 |
90167568 |
28/08/1972 |
3,000,000.00 |
INDIAN OVERSEAS BANK |
SECTOR 7 B, CHANDIGARH, Chandigarh, INDIA |
- |
FINANCIAL HIGHLIGHTS:
The Indian economy performed poorly in the Financial Year 2012-13. Faced with economic turbulence abroad and an unsupportive policy environment at home, industrial activity slowed steadily through the year, critical infrastructural projects stalled and private corporate investments lost much of their dynamism. A weak south-west monsoon added further stress. Food prices shot up, keeping inflation and interest rates high through most of the year, while rural incomes lost momentum. Consumer demand, as a result, slowed sharply, impacting business performance and profitability across the board. The country's current account deficit widened significantly, putting severe pressure on the rupee. At the same time, with domestic economic activity slowing, Government revenues lost buoyancy, worsening the already weak state of Government finances.
With the economy under severe pressure and rating agencies threatening a downgrade, the Government finally swung into action in the second half of the year, announcing a series of critical reforms. These measures have, undoubtedly, improved the extant economic environment in the country but deeper structural and administrative reforms are needed for the economy to regain momentum and fully realise its long term potential.
FINANCIAL
PERFORMANCE:
Against the backdrop of this challenging situation, the Automotive and Farm Divisions of the Company have shown good performance during the year, reflecting substantial growth in the net income of the Company by 26.8% from Rs. 323190.000 Millions in the previous year to Rs. 409900.000 Millions in the year.
Consequent to this commendable performance, the profit for the year before Depreciation, Finance Costs, Exceptional items and Taxation recorded an increase of 24.1% at Rs. 52580.000 Millions as against Rs. 4237 Millions in the previous year. Similarly, profit after tax clocked an increase of 16.5% at Rs. 33530.000 Millions as against Rs. 28790.000 Millions in the previous year. The Company continues with its rigorous cost restructuring exercises and efficiency improvements which have resulted in significant savings through continued focus on cost controls, process efficiencies and product innovations thereby enabling the Company to maintain profitable growth in the current economic scenario.
PERFORMANCE REVIEW
Automotive Division:
The Company's Automotive Division recorded total sales of 483734 vehicles and 67735 three-wheelers as compared to 398357 vehicles and 70,988 three-wheelers in the previous year registering a growth of 21.4% in vehicle sales and a de-growth of 4.6% in three-wheeler sales.
On the domestic sales front, the Company sold 3,10,706 Passenger Vehicles [including 2,63,925 Utility Vehicles (UVs), 31,437 Multi Purpose Vehicles (MPVs) and 15,344 Cars] registering a growth of 26.5% over the previous year's volumes of 2,45,700 Passenger Vehicles (including 2,02,217 UVs, 25,644 MPVs and 17,839 Cars). In the commercial vehicle segment, the Company sold 1,42,797 vehicles (including 39,911 vehicles < 2T GVW and 1,02,886 vehicles between 2-3.5T GVW) registering a growth of 12.4% over the previous year's volume of 1,27,029 commercial vehicles (including 53,895 vehicles < 2T GVW and 73,134 vehicles between 2-3.5T GVW). In the three-wheeler segment, the Company sold 65,510 three-wheelers registering de-growth of 2.9% over the previous year's volume of 67,440 three-wheelers.
The Company's UV sales volume grew by 30.5% and the Company continued to maintain its leadership position in the domestic UV market by sales of more than 1,00,000 units for the second consecutive year and the Scorpio also posted sales of over 50,000 units for the second successive year.
After a very successful launch of the XUV500 last year, the Cheetah inspired XUV500 continues to win customer preference. The Company had more than 35,000 Cheetahs on the road within just one year of launch.
Strengthening the UV portfolio, the Company launched two new products - Quanto and Rexton, marking entry into two new product segments. Both the products have been very well received by the market. Rexton is already the second largest selling product in its category.
With the aim of strengthening its product portfolio and entering new segments, the Company has successfully launched many new products over the past three years. As a result, the Com pany's share of the Indian Automotive market stood at 13.2% in 2012-13 as compared to 11.5% in the previous year.
In the overseas market, the Company registered a volume growth of 11.2% over the previous year. This growth was driven by volume growth in SAARC, Chile and South Africa. During the year, the Company sold 30,231 vehicles [including 209 vehicles sourced from Mahindra Navistar Automotives Limited {renamed as Mahindra Trucks and Buses Limited ("MTBL") with effect from 4th June 2013}] and 2,225 three-wheelers in the overseas market as compared to 25,628 vehicles (including 157 vehicles sourced from MTBL) and 3,548 three-wheelers in the previous year.
Spare parts sales for the year stood at Rs. 11903.000 Millions (including exports of Rs. 903.000 Millions) as compared to Rs. 8739.900 Millions (including exports of Rs. 554.700 Millions) in the previous year, registering a growth of 36.2%.
Farm Division:
The Company's Farm Division (including Swaraj Division) recorded sales of 2,24,844 tractors as against 2,36,666 tractors sold in the previous year, recording a decline of 5%. In the Financial Year 2013, there was a 1.7% decline in the domestic tractor industry, after three years of double digit growth. The domestic industry recorded sales of 5,25,970 tractors as compared to 5,35,210 tractors in the previous year.
The industry decline was greater in the Southern States, where the Company commands a comparatively greater market share. Against this background, the Company achieved domestic sales of 2,12,555 tractors as compared to 2,22,944 tractors in the previous year, a decline of 4.7%. The Company continues to enjoy a market share of 40.2% making it the market leader for the 30th consecutive year.
The Company achieved tractor exports of 12,289 tractors as compared to 13,722 tractors exported in the previous year, which is 10.4% lower compared with the previous year. The decline was primarily on account of industry decline in markets of Sri Lanka and Bangladesh, with growing exports to Mahindra USA, Inc. and Africa bridging some of the shortfall.
Beyond agriculture, in the power generation space under the Mahindra Powerol Brand, the Company achieved gross revenue of over Rs. 10000.000 Millions. The last time that Mahindra Powerol crossed this threshold was in 2010, mainly on account of the growth in the telecom segment. This achievement in Financial Year 2013 was despite telecom segment DG sales accounting for only 19% of revenues currently, as compared with 58% in Financial Year 2010. While retaining its leadership position in the genset market catering to the telecom space, the Company has become the No. 2 player in retail for lower kVA.
Mahindra Defence
Systems (MDS) Division:
The Company, through Mahindra Defence Systems Division ("MDS"), is engaged in two businesses - a) Mahindra Defence Naval Systems ("MDNS") and b) Mahindra Special Services Group ("MSSG").
Mahindra Defence
Naval Systems:
The MDNS provides weapons, sub-systems and components to the Navy, Ordnance Factories and the Defence Research & Development Organisation and Defence Public Sector Undertakings viz. Bharat Electronics Limited/Bharat Dynamics Limited. Among the major products being supplied are (i) the Triple Tube Torpedo Launcher which is fitted on board Indian Naval ships to counter attacking submarines by firing a torpedo at them, (ii) Anti Torpedo Decoy Launcher which launches a decoy to deceive an attacking torpedo and (iii) other components for the Ordnance Factories which go into Naval and Army weapon systems.
Pursuant to an approval accorded by the Shareholders by way of Postal Ballot on 4th April 2009, this business has been hived off into a wholly owned subsidiary viz. Mahindra Defence Naval Systems Private Limited with effect from 1st June 2012.
Mahindra Special
Services Group:
The Special Services Group business of the Company provides Corporate Security Risk Management Consultancy services, assisting organisations to maintain their competitive edge by protecting information, physical and personnel assets. During the year, the Special Services Group has posted growth in the areas of Governance & Fraud Risk Management vertical and also launched its training services vertical by setting up the Information Assurance and Homeland Security Academy which aims at providing functional training in these areas.
Finance
The headwinds of the previous year continued to slow global growth during the Financial Year 2012-13. The recovery was tentative in US and Europe continued to be under the overhang of recession, with a new banking crisis in Cyprus adding to the Eurozone troubles. The emerging markets also slowed down, causing concerns about a protracted low growth environment.
On the domestic front, tight liquidity conditions prevailed throughout the year. Despite RBI cutting the Repo rate by 100 bps in several instalments, short term interest rates remained at elevated levels in view of shortfall in liquidity.
Weak exports and Current Account Deficit worsened the situation, impacting the exchange rate scenario. As a result, the Indian Rupee continued to remain volatile during the period. In these difficult financial conditions, the Company, with its good credit standing and strong underlying Corporate Governance principles, enjoyed privileged access to liquidity and competitive pricing.
The Company continued to focus on managing cash efficiently and ensured that it had adequate liquidity in its books at all times, along with strong back up lines of credit. During the course of the year, the Company repaid long term loan instalments amounting to Rs. 380.73 Millions on due dates from internal accruals. The Consortium of Bankers continues to rate the Company as a prime customer and extends facilities/ services at prime rates.
The Company follows a prudent financial policy and aims to maintain optimum financial gearing at all times. The Company's total Debt to Equity Ratio was 0.24 as at 31st March 2013.
In an environment of financial stress and rating downgrades, the Company continues to enjoy prime credit rating with CRISIL Limited ("CRISIL"), ICRA Limited ("ICRA") and Credit Analysis & Research Limited ("CARE"). These organisations have all re-affirmed the highest safety rating of A1+ for the Company's Short Term facilities and high safety rating for its Long Term Banking facilities. CRISIL maintains a rating of "CRISIL AA+/Stable", ICRA maintains a rating of "[ICRA] AA+ (stable)" and CARE maintains a rating of "CARE AA+".
MANAGEMENT DISCUSSION
ANALYSIS
Mahindra & Mahindra Limited ("M&M") or ("Mahindra") is the flagship brand of the Mahindra Group which consists of 141 companies with diverse businesses across the globe and aggregate revenues of US $ 16.2 billion. The Financial Year 2012-13 was a challenging one with several shocks in the global and domestic environment. The Company however, fortified by its Rise philosophy of accepting no limits, thinking innovatively and driving positive change in the lives of others, successfully took on the challenge of performing in a very volatile environment.
The Automotive and Farm Equipment Sectors of M&M worked together, as always, with distinct and strong customer focus at the front end and structured synergy at the back end. In the Financial Year 2012-13, the Company sold 551,469 vehicles (a growth of 17.5% over the previous year) while tractor sales added up to 224,844 tractors (a drop of 5.0% in comparison to the previous year).
The Automotive and Farm Equipment Sectors, along with their subsidiary companies and joint ventures, achieved global sales of 944,902 vehicles and tractors (685,371 vehicles and 255,531 tractors).
Industry Structure
The Indian automotive industry comprises of a number of Indian-origin and multinational players with varying degrees of presence in different segments. Today, nine of the top ten global automotive manufacturers have a presence in India which clearly points to its importance as a strategic market.
Similarly, the domestic tractor market also has a mix of Indian-origin and international manufacturers and is segmented by horsepower into the sub 30 HP segment, the 30-40 HP segment, the 40-50 HP segment and the higher segment of above 50 HP.
Industry Overview and
Trends
Global Automotive
Industry
In the calendar year (CY) 2012, global automotive sales registered a growth of 4.9%, compared to 4.4% in the previous year. This was a moderate pace of growth considering that CY 2010 had a very high growth of 14.1% on the back of the slowdown in CY 2009 (when growth dropped by 3.9%). Source: OICA (Organisation Internationale des Constructeurs d'Automobiles).
China became the world's largest automotive market in CY 2009 with very high growth of ~ 39% CAGR for the period 2008-2010. In CY 2012, China retained its crown as the world's largest automotive market with sales of 19.3 million vehicles, but the growth slowed down to 4.3%.
The US market has shown some signs of recovery, posting 13.4% growth in CY 2012. In terms of size, the US market still lags behind China by around 4.5 million vehicles. Automotive sales in Europe continue to slide. In CY 2012, sales were down by 5.5%, the lowest in the last seven years. Key markets like France, Italy and Spain posted the lowest sales in the last seven years.
Sales in Japan were the highest in five years in 2012, posting a growth of 27.5% as the country bounced back from the effects of the economic slow down and the 2011 earthquake.
Indian Automotive
Industry
The Financial Year 2012-13 was a very challenging one for the Indian auto industry. The performance of the Indian automotive industry was significantly lower than the 10-12% growth projected by SIAM (Society of Indian Automobile Manufacturers) at the beginning of the year. The year ended with a growth of just 2.6%. This below potential industry performance was due to factors such as uncertainty over economic growth, high vehicle financing rates, high inflation leading to less discretionary expenses and hike in fuel prices.
Industry volumes (excluding two wheelers) grew just 1.7% over the previous year. Seven of twelve industry sub segments witnessed de-growth during the Financial Year 2012-13.
The Passenger Vehicle segment grew overall by a mere 2.2%, with domestic sales hovering at about 2.6 million vehicles for the second consecutive year. Within this segment, the Utility Vehicle (UV) segment registered a record growth of 52.2%, the
Multipurpose Vehicle (MPV) segment grew by just 1.1%, while the passenger car segment registered a drop of 6.7%. The record growth in the UV segment was driven by new launches, the entry of two MNCs into this segment and the petrol-diesel price gap. This also indicates a possible shift in the choice for type of vehicles. The share of UVs to total passenger vehicles improved to 21% from 14% in the Financial Year 2011-12.
In the Commercial Vehicle (CV) segment, the Light Commercial Vehicle (LCV) segment posted a growth of 14.0%. Driving the growth of the LCV segment was the expansion of the 2-3.5T segment, posting a growth of 72.9%. All other segments within the LCV category posted de-growth. LCV passenger (de-growth of 1.5%), LCV < 2T GVW (de-growth of 1.4%) and LCV >3.5T GVW (de-growth of 22.7%).
The Medium and Heavy Commercial Vehicles (MHCV) segment also de-grew by 23.2%. Overall, the CV segment shrank by 2%.
The LCV Goods Segment witnessed a de-growth in the <2T segment for the first time in 4 years. There was also heightened competition in the 2-3.5T Pick-Up segment on the back of new product launches.
The three wheeler segment posted a modest growth of 4.9% during the year. The three wheeler passenger segment grew by 8.6%, while the three wheeler goods segment posted de-growth of 9.2%.
During the Financial Year 2012-13, the two-wheeler segment grew by just 2.9%. Within two wheelers, scooters/scooterettes grew by 14.2%, motorcycles/step-throughs by 0.1% and mopeds by 1.5%.
Indian Tractor
industry
The Indian tractor market, the world's largest, marginally declined to 525,970 tractors, 1.7% lower than the previous year. This was on the back of three years of high growth of 32%, 20% and 11%, respectively. A deficient and delayed South West monsoon and North East rains impacted Indian agriculture, especially in the southern states, already reeling under the impact of consecutive preceding deficient monsoons. This, together with the slowdown on infrastructure spending and ban on quarrying operations in parts of the country resulted in lower sales of new tractors as compared to the previous year.
The result was a drop in excess of 20% in the tractor market in Gujarat and Maharashtra, and the southern states of Andhra Pradesh, Karnataka and Tamil Nadu. The northern and central parts of the country fared better with Madhya Pradesh, Bihar and Chattisgarh clocking over 19% growth, the highest tractor industry growth rates in the country. Uttar Pradesh retained the mantle of the state with the largest tractor sales with over 86,000 units sold in the state alone. This constitutes 16% of the national market, a growth of 2% over the previous year.
The only segments of the Indian tractor Industry that witnessed growth over the previous year were the 30-40 HP segment (the second largest segment by volume) and the <20 HP segment.
THE COMPANY'S
PERFORMANCE
Automotive Sector -
Towards New Horizons
During the year, the Company continued its steady progress on its journey to becoming a globally recognised automotive brand. The automotive sector launched several new products and also received numerous awards and accolades.
In the financial year 2012-13, the company strengthened its UV portfolio by launching two new products - the Quanto and the Rexton. The Quanto is a compact SUV which offers consumers aspirational and distinctive style, space and convenience, along with best-in-class features, all of which make it attractive to the younger buyer who leads an active lifestyle. The Rexton global SUV is the first Ssangyong product launched in India. This is a powerful, plush and premium SUV with a host of class-leading technology, comfort and safety features and is a perfect combination of refinement, style and performance. Both products have been very well received by the market and have enabled the Company to enter two new segments. The Rexton is already the second largest selling product in its category.
In March 2013, the Company, through its subsidiary Mahindra Reva, launched the Mahindra e2o, the next generation all-electric, zero emission vehicle. The Mahindra e2o is a manifestation of the Company's vision of the Future of Mobility, expressed by the 5C's framework - Clean, Convenient, Connected, Clever and Cost Effective. This fully automatic EV with boost mode for quick acceleration is ideal for city driving, easy to charge from any 15 Ampere power socket available in every home and has unique connected car technologies that allow customers to remotely access their car from a smart phone app which enables the owner to control several functions, including switching on the AC remotely, locking or unlocking the car from anywhere, etc.
The Automotive Sector, including Mahindra Navistar Automotives Limited (MNAL), a subsidiary of the Company - achieved overall volumes of 530,915 vehicles in the domestic market, a significant growth of 16.9%. Healthy growth in UV and Pick-Up volumes and entry into newer segments are some of the major factors that have contributed to this growth.
In the Passenger Vehicle segment, the Company posted the highest growth rate of 26.5% among the top seven PV players in India. In the Commercial Vehicle segment, the Company recorded sales of 154,699 vehicles, in the process becoming the second largest CV player in India.
As a result of this good performance, the Company's market share of the total Indian automotive market increased to 13.2% in the Financial Year 2012-13 as compared to 11.5% in the previous year.
At the forefront of
the industry
· The Company maintained its leadership position in the domestic Utility Vehicle (UV) market by selling a record 263,925 UVs, posting a growth of 30.5% over the previous year. M&M's market share in the domestic UV market stood at 47.7% for the Financial Year 2012-13.
· During this year, the Bolero continued its stellar performance for the second successive year with sales of more than 100,000 units. This tough and rugged UV thus retains the title of India's largest selling UV for the 7th consecutive year. It is also the 5th highest selling passenger vehicle in India and the only UV to feature on the list of Top 10 selling PVs in India.
· The Scorpio continues to strengthen its iconic status with sales crossing 50,000 units for the second consecutive year.
· After a spectacular launch two years ago, the Cheetah inspired XUV500 continued to capture the attention of customers. The XUV500 which was designed and developed entirely in-house by Mahindra, is perhaps the most awarded Car/SUV in India, winning 22 awards in 2011-12 alone. The XUV500 also emerged on top in various rallies and endurance tests including Dakshin Dare, Desert Storm and the eight country' ASEAN-India Car Rally 2012'.
· In the MPV segment, the Company launched the Maxximo minivan VX to expand its portfolio and its market share in the MPV segment stands at 13.2%. The Company also launched the CNG version of the Maxximo during the year.
· In the highly competitive small load carriage segment (Sub 3.5T) the Company's market share stands at 32.6%. Specifically, in the Pick-Up segment, the Company continues to be the market leader with a share of 54.0%
· For the year 2012-13, sales of the Verito stood at 15,344 cars.
· In the HCV segment, MNAL's range of trucks sold 2,977 vehicles and posted a market share of 2.6% (an increase of 0.6% over the previous year).
Farm Equipment Sector
With its quest to deliver 'Farm Tech Prosperity' to the Indian farmer, the Financial Year 2012-13 saw numerous initiatives by the Farm Equipment Sector in the area of farm mechanisation and across the agriculture value chain
Tractor and Farm
Mechanisation Business
Mahindra & Mahindra Limited. is the largest tractor company in the world, by volume.
The Financial Year 2012-13 saw the completion of 30 years of M&M leadership in the domestic tractor market, and a domestic market share of 40.2%. In addition, the Swaraj and Mahindra brands enjoyed the distinction of being No. 1 & No. 2 in Customer Satisfaction in the country* (TNS survey).
In this period, the Company sold 224,844 tractors, both domestic and export taken together, under the Mahindra and Swaraj brands, as against 236,666 tractors sold in the previous year. The industry decline in southern strongholds was a key contributor to lower volumes compared to the previous year.
The year was made memorable by some landmark events.
The Swaraj Division was awarded the Deming Application Prize, a huge achievement for this team, given that Swaraj embarked on the TQM journey only very recently. With this, the Swaraj Division became the second tractor company in the world after the Farm Division to win this coveted honour.
Five plants across the Farm Equipment Sector achieved TPM honours this year. Kandivali, Nagpur and Rudrapur under the Farm Division achieved the TPM Consistency Awards, while Swaraj Plants 1 and 2 achieved the TPM Excellence Awards.
March 2013 saw the inauguration of the Farm Equipment Sector's largest tractor plant at Zaheerabad, which incidentally is also the largest tractor manufacturing facility in Asia, with potential capacity of over 100,000 units on a three shift basis. The event was graced by the presence of the Honourable Chief Minister of Andhra Pradesh, Mr. N. Kiran Kumar Reddy and Dr. J. Geeta Reddy, Minister for Major Industries, Sugar, Commerce and Export Promotion. Spread over 80 acres, this state-of-the-art facility has been designed to meet the future tractor production needs for both Mahindra and Swaraj tractors for the southern markets.
In the <30 HP segment market, the Mahindra Yuvraj 215, which is making affordable mechanisation possible for the vast number of small and marginal farmers, faced a difficult environment, with the tractor industry downturn in the strong markets of Maharashtra and Gujarat. The team countered this by expanding into newer markets, thereby exceeding last year's sales with 2% growth. The 255 Power Plus was launched as an upgrade in this category with superior engine and haulage characteristics, and has been well accepted in the market. Strengthening the Swaraj presence in this segment was the Swaraj 724 XM which was launched in September 2012.
In the 30-40 HP segment, the 265 Power Plus introduced in March 2012, made major inroads during the year. Mahindra's competitiveness in this segment was bolstered by the launch of the 395 DI, in the middle of the year. These two products
together led to a gain in market share in this segment. The Swaraj brand was supported by two refreshes of the very popular 735 model, giving the customer more choices in terms of features.
In the 40-50 HP segment, the Swaraj brand introduced the 841 XM, the 744 XM and a refresh version of the 855 FE. The Swaraj 841 XM has been optimised for sandy soil operations. The model has been a key tool for making inroads into this challenging segment of the tractor industry, with SensiLift Hydraulics and optimised tractor geometry together delivering unmatched performance version of the 855 FE. The Swaraj 841 XM has been optimised for sandy soil operations. The model has been a key tool for making inroads into this challenging segment of the tractor industry, with SensiLift Hydraulics and optimised tractor geometry together delivering unmatched performance. In the same segment, Mahindra introduced a refresh of the 595 DI, packaging the superior performance of the 595 in a traditional envelope which the customer has grown to trust.
The >50 HP segment, is the segment most impacted by de-growth in the Southern markets and changes in emission norms to TREM IIIA. In the Arjun range, the Arjun Multi Application Tractor (MAT) continues to do well, contributing to over 50% of Farm Equipment Sector volumes in this segment.
Global Footprint
The Sector continued to expand its global footprint with a focus on the key markets of USA and China, amongst other regions.
China
China is the second largest tractor market in the world. The Financial Year 2012-13 was a difficult year in the Chinese tractor market as well. Mahindra volumes from the two Joint Ventures, Jiangxi Mahindra Yueda Tractor Co. Limited. (JMYTCL) and Mahindra Yueda Yancheng Tractor Company Limited (MYYTCL), declined to 20,867 units in the domestic market, compared to 26,444 units sold in the same period last year. At the same time, exports from China also declined to 2,548 units, a 51% decline compared with the previous year.
USA
Mahindra USA once again crossed the 10,000 volume mark, achieving a market share of 7.6% in the 0-80 HP segment in which it operates, a formidable achievement in one of the most competitive and demanding tractor markets in the world. It is even more heartening that the business ended the year with a Q4 Market Share of 8%, taking Mahindra USA into the bracket of top 3 tractor manufacturers in the 0-80 HP segment. In addition, Mahindra USA moved to the Number 2 spot in the 2013 North American Equipment Dealers Association (NAEDA) Annual Dealer/Manufacturer Relations Survey for Overall Satisfaction for Major Tractor Manufacturers.
A significant effort has gone into the strengthening of the Mahindra brand in this market, which is reflected in the awards it has won including the American Marketing Association
Rest of the World
Continuing last year's trend, the growth story for Rest of World operations was in Africa, with 15% increase achieved in this market over the last year. However, the SAARC region was a challenge, with growth in Bangladesh and Sri Lanka declining by 69% and 43% respectively, primarily due to local conditions in these markets. The Nepal market, which is relatively smaller in size, grew by 34% helping reduce some of the large deficit. On a positive note, both in Nepal and Bangladesh, FES has gained Market Share which augurs well for the company in the long run.
Towards Agri
Prosperity - Mahindra AppliTrac
With labour scarcity becoming an ever increasing challenge for farmers across the country, mechanisation of most agricultural operations is the way forward. This has fuelled demand for better and more efficient equipment across the spectrum of operations. AppliTrac continued to grow the market for mechanisation in the country, playing its part in boosting agricultural productivity.
This year, work has been focussed on widening the sales of AppliTrac by reaching customers through the existing Mahindra and Swaraj tractor dealerships in addition to the dedicated AppliTrac distributors and self propelled implement dealers. This is expected to substantially enhance the reach of the AppliTrac footprint.
Rotary Tillage
Equipment
Mahindra Gyrovator - The pride of the rotavation range of equipment in the AppliTrac stable, this product has been well accepted by the Indian farmer by virtue of its sheer performance, placing it in a league of its own. As a result, overall sales of rotavation equipment grew by more than 14% over last year.
Harvesters
AppliTrac offers a range of harvesters from tractor mounted harvesters to Self Propelled units (both track and wheeled version). With deficient monsoons and dampened agri sentiment, the overall market for these products was lower than last year, in line with which AppliTrac sales of harvesters were also lower.
Beyond this, AppliTrac has developed and is in the process of popularising a range of farm machinery including rice transplanters, sprayers, mulchers and balers which will provide the Indian farmer with appropriate and affordable quality mechanisation solutions, thereby helping him increase his productivity.
Construction
Equipment — Mahindra EarthMaster creates an impact
With a slowdown in infrastructure spending in the country, the backhoe loader market was also impacted, declining by 7% compared with the previous year, with sales of around 31,000 units across the country. Ever since the introduction of the Earthmaster in the market, the product has enjoyed the best reviews and high customer satisfaction for the superior value of the offering. In this declining market, the team sold 808 units, the same as last year, gaining 0.2% Market Share points. Significant efforts on the sourcing, channel and marketing front by the company in this year are expected to help the Mahindra Earthmaster become one of the top backhoe loader brands in the coming period.
Contributing to
Indian Agriculture
Beyond tractors and mechanisation, the Sector offers farmers a whole range of agri input solutions including micro-irrigation, crop care solutions and seeds. In addition, the Sector is making modern agronomy know-how and services accessible to farmers across the country under the Mahindra Samriddhi umbrella. With a 1.4x growth rate, the Agri Business is poised for strong future growth and is making a significant impact on the lives of millions of farmers across the country.
Micro-irrigation
business
The Company made a foray in this space through the acquisition of a stake in EPC Industrie Limited, one of India's leading micro-irrigation companies. By focussing on strengthening its presence in existing markets, the business achieved 29% growth over the previous year.
Micro-irrigation offers tremendous benefits to the farmer, including water savings of more than 25%, reduced expenditure on labour and fertiliser and higher productivity. By virtue of this development, the Company will be able to help the farmer to better utilise scarce water resources and thereby contribute to overall water conservation in the country.
Mahindra Samriddhi
Each Samriddhi Centre offers innovative farming technologies that transform the lives of farmers by helping them to improve productivity. At the end of the previous financial year, over 158 Mahindra Samriddhi centers were operationalised. Through their activities, the Samriddhi centres have together impacted the lives of over 78,000 farmers, by making innovative farming technologies accessible to them, to increase their productivity and price realisation. Of these 158 centres, 66 centres have gone beyond providing agronomy know-how and are making one or more farming inputs available to farmers in their vicinity.
The Mahindra Samriddhi India Agri Awards continues to be the premier event in the field of agriculture for the third consecutive year. The event, which was graced by leading luminaries from the field of agriculture, honoured the torch bearers of farm prosperity from across the nation
Crop Care
Helping farmers grow crops better despite the constant threat of virus, disease and nutrient deficiency are the team from Crop Care who offer a range of herbicides, pesticides and fungicides to farmers across 17 states in the country.
With 9,000 farmer meetings and 3,500 product demonstrations last year, the business has grown 60% over the previous period. This has been aided by the launch of 13 new products, taking the overall portfolio offering to 58.
Seeds
Use of improved seeds, especially hybrids, is one of the key drivers of higher quality produce and superior yield, hence the focus on this part of the agri value chain, which is in its infancy today. With a portfolio of quality seeds spanning field crops, cash crops and vegetables, this business reaches out to farmers across 8 states in the country.
Powerol — Powering
India
For Powerol, the Financial Year 2012-13 marked a return to the Rs. 10000.000 Millions gross revenue mark. The last time the business crossed Rs. 1,000 Millions was in 2010. At that time, Telecom Diesel Generator (DG) sales contributed over 58% of Powerol revenue, while today Telecom DG contributes just 19% of Powerol revenue, thanks to sustained efforts by the team to diversify into newer revenue streams.
Of these newer revenue streams, the retail segment is the largest contributor, especially the lower capacity segment (<82.5 kVa). In this segment, Powerol enjoys a market share of 28.5%, the second largest in this space, and is steadily closing the gap with the market leader.
In collaboration with strategic partners, Powerol is steadily expanding into the higher capacity (kVA) space as well.
Becoming future ready, the business is focusing on offering cutting edge products and services. These include Ultra Super Silent DGs (< 58 dB) launched for telecom, marking a quantum improvement in customer connect by using digital solutions "eFSR" and "eConnect", Energy Management Solutions - bio-mass, solar and fuel cell based energy solutions, amongst many more.
THE UNAUDITED COMBINED RESULTS OF MAHINDRA AND MAHINDRA LIMITED AND
MAHINDRA VEHICLE MANUFACTURERS LIMITED QUARTER AND YEAR ENDED MARCH 31, 2014
(Rs. in Millions)
|
|
|
Quarter Ended |
Year Ended |
||
|
Sr. No. |
Particulars |
31.03.2014 |
%
to Net Sales |
31.03.2014 |
%
to Net Sales |
|
|
Gross sales/income from operations |
111899.900 |
109.55 |
425915.400 |
109.72 |
|
|
Less: Excise duty on sales |
9755.500 |
9.55 |
37744.700 |
9.72 |
|
|
Total
Income from operation (net) |
102144.400 |
100.00 |
388170.700 |
100.000 |
|
2. |
Expenditure
: |
|
|
|
|
|
a. |
Materials Cost |
71088.800 |
69.60 |
269199.100 |
69.35 |
|
b. |
Employee benefits expense |
6539.400 |
6.40 |
23107.600 |
5.95 |
|
c. |
Depreciation and amortisation expense |
3200.200 |
31.300 |
9760.000 |
2.51 |
|
d. |
Other expenses (Net of cost of manufactured products capitalised) |
13912.000 |
13.62 |
43383.200 |
11.18 |
|
e. |
Total expenses |
94740.400 |
92.75 |
345449.900 |
88.99 |
|
3 |
Profit
from operations before other income, finance costs and exceptional items
(1-2) |
7404.000 |
7.25 |
42720.800 |
11.01 |
|
4. |
Other income |
1072.500 |
1.05 |
6648.300 |
1.71 |
|
5. |
Profit
from ordinary activities before finance costs and exceptional items (3 + 4) |
8476.500 |
8.30 |
49369.100 |
12.72 |
|
6. |
Finance costs |
1077.500 |
1.05 |
3611.200 |
0.93 |
|
7. |
Profit from
ordinary activities after finance costs but before exceptional items (5 - 6) |
7399.000 |
7.25 |
45757.900 |
11.79 |
|
8. |
Exceptional items |
527.900 |
0.51 |
527.900 |
0.13 |
|
9. |
Profit
from ordinary activities before tax (7 + 8) |
7926.900 |
7.76 |
46285.800 |
11.92 |
|
10 |
Provision for tax expenses |
(1749.600) |
(1.71) |
7235.200 |
1.86 |
|
11. |
Net
Profit from ordinary activities after tax (9 - 10) |
9676.500 |
9.47 |
39050.600 |
10.06 |
Mahindra Vehicle Manufacturers Limited is a
subsidiary of the company.
Notes: the
Combined Results of Mahindra and Mahindra Limited and Mahindra Vehicle
Manufacturers Limited have not been subjected to limited review.
Previous period's / year's figures have been regrouped wherever necessary, in order to make them comparable.
THE UNAUDITED COMBINED RESULTS OF MAHINDRA AND MAHINDRA LIMITED AND
MAHINDRA VEHICLE MANUFACTURERS LIMITED QUARTER AND YEAR ENDED MARCH 31, 2014
SEGMENT WISE REVENUES, RESULTS AND CAPITAL EMPLOYED
(Rs. in Millions)
|
|
Quarter Ended |
Year Ended |
|
|
|
Particulars |
31.03.2014 |
31.03.2014 |
|
A. |
Segment Revenue :
(Net Sales / income from operations & other operating income) |
|
|
|
|
Automotive Segment |
70565.100 |
246331.800 |
|
|
Farm Equipment Segment |
31878.800 |
143337.100 |
|
|
Other Segments |
62.800 |
251.100 |
|
|
Total |
102506.700 |
389920.000 |
|
|
Less: Intersegment Revenues |
362.300 |
1749.300 |
|
|
Net Sales / income from
operations and other operating income |
102144.400 |
388170.700 |
|
B. |
Segment Results
(After Exceptional item) |
|
|
|
|
Automotive Segment |
3344.400 |
23456.700 |
|
|
Farm Equipment Segment |
5441.700 |
24527.900 |
|
|
Other Segments |
21.100 |
59.000 |
|
|
Unrealized Profit |
(0.400) |
0.800 |
|
|
Total Segment
Results |
8806.800 |
48044.400 |
|
|
Less : |
|
|
|
|
Finance costs |
1077.500 |
3611.200 |
|
|
Other un-allocable expenditure net off un-allocable income |
(197.600) |
(1852.600) |
|
|
Total Profit before
tax |
7926.900 |
46285.800 |
|
C. |
Capital Employed :
(Segment assets - Segment liabilities) |
|
|
|
|
Automotive Segment |
71428.400 |
71428.400 |
|
|
Farm Equipment Segment |
32502.200 |
32502.200 |
|
|
Other Segments |
37.600 |
37.600 |
|
|
Unrealized Profit |
(3.700) |
(3.700) |
|
|
Total Segment
Capital Employed |
103964.500 |
103964.500 |
Mahindra Vehicle Manufacturers Limited is a
subsidiary of the company.
Notes: the Combined
Results of Mahindra and Mahindra Limited and Mahindra Vehicle Manufacturers
Limited have not been subjected to limited review.
Previous period's / year's figures have been regrouped
wherever necessary, in order to make them comparable.
THE UNAUDITED COMBINED RESULTS OF MAHINDRA AND MAHINDRA LIMITED AND
MAHINDRA VEHICLE MANUFACTURERS LIMITED
STATEMENT OF
BALANCE SHEET
|
Particulars |
As at 31.03.2014 |
|
I.
EQUITY
AND LIABILITIES |
|
|
(1)Shareholders' Funds |
|
|
(a) Share Capital |
2951.600 |
|
(b) Reserves & Surplus |
170272.400 |
|
Total
Shareholders’ Funds (1) + (2) |
173224.000 |
|
|
|
|
(3)
Non-Current Liabilities |
|
|
(a) long-term borrowings |
43071.000 |
|
(b) Deferred tax liabilities (Net) |
10511.500 |
|
(c) Other long term liabilities |
5862.700 |
|
(d) long-term provisions |
5571.400 |
|
Total Non-current Liabilities (3) |
65016.600 |
|
|
|
|
(4) Current Liabilities |
|
|
(a) Short term borrowings |
7.400 |
|
(b) Trade payables |
63635.100 |
|
(c) Other current
liabilities |
15778.600 |
|
(d) Short-term provisions |
15784.000 |
|
Total Current Liabilities (4) |
95205.100 |
|
|
|
|
TOTAL |
333465.700 |
|
|
|
|
II.
ASSETS |
|
|
(1) Non-current assets |
|
|
(a) Fixed Assets |
90554.800 |
|
(b) Non-current Investments |
88282.800 |
|
(c) Long-term Loan and Advances |
33457.800 |
|
(d) Other Non-current assets |
884.900 |
|
Total Non-Current Assets |
213180.300 |
|
|
|
|
(2) Current assets |
|
|
(a) Current investments |
16361.200 |
|
(b) Inventories |
31732.900 |
|
(c) Trade receivables |
24016.700 |
|
(d) Cash and cash
equivalents |
31413.900 |
|
(e) Short-term loans and
advances |
10308.900 |
|
(f) Other current assets |
6451.800 |
|
Total Current Assets |
120285.400 |
|
|
|
|
TOTAL |
333465.700 |
Mahindra Vehicle Manufacturers Limited is a
subsidiary of the company.
Notes: the
Combined Results of Mahindra and Mahindra Limited and Mahindra Vehicle Manufacturers
Limited have not been subjected to limited review.
Previous period's / year's figures have been regrouped
wherever necessary, in order to make them comparable.
SECTOR-WISE DISTRBUTION OF NET REVENUES AND SEGMENT RESULTS
|
|
Year Ended 31.03.2014 |
|
|
Particulars |
Net External Revenue |
Results |
|
Automotive |
448752.600 |
23580.500 |
|
Farm equipment |
168841.600 |
24797.600 |
|
IT services |
2917.200 |
303.500 |
|
Financial services |
53058.700 |
14609.300 |
|
Steel trading and processing |
12977.700 |
953.500 |
|
Infrastructures |
7216.700 |
1606.400 |
|
Hospitality |
8171.400 |
1205.600 |
|
Systech |
38122.400 |
(268.500) |
|
Others |
32082.100 |
(5028.400) |
|
Add/(Less) : |
|
|
|
Inter segment revenue / results |
(32130.400) |
20.400 |
|
Total segment revenue / results |
740009.300 |
61779.900 |
|
|
|
|
|
Net unallocable expenses / gains |
|
(3110.200) |
|
Net unallocable income / expenditure |
|
(6763.600) |
|
Net unallocable interest income |
|
3111.400 |
|
Exceptional items income / expenses |
|
3178.500 |
|
Profit before tax |
|
58196.000 |
|
Current / deferred tax |
|
14962.200 |
|
Profit after tax |
|
43233.800 |
|
Add/(Less) : shares of Associates |
|
8304.200 |
|
|
|
|
|
Add/(Less) : Minority Expenses |
|
(4868.700) |
|
|
|
|
|
Consolidated
PAT after MI |
|
46669.300 |
Notes :
1. Tech Mahindra Limited ceased to be a joint ventures a become an Associates of the Company effective 31st August 2012, hence its segments revenues and segment result are included in this consolidation only upto August 2012.
2. Mahindra CIE Automotive Limited (Formerly known as Mahindra Forgings Limited (MFL)) and Mahindra Hinoday Industries Limited (MHIL) ceased to be subsidiaries effective 04.10.2013, hence its Segment Revenue and Segment Result are included in this consolidation only upto 30.09.2014.
3. Segment Revenue and Segment Result for the current year are not strictly comparable with that of the corresponding period in the previous year.
4. . Previous year's figures have been regrouped wherever necessary.
FIXED ASSETS:
·
Land
·
Buildings
·
Plant
and Equipment
·
Office
Equipment
·
Furniture
and Fixture
·
Aircraft
·
Vehicles
·
Technical
Knowhow
·
Development
Expenditure
·
Computer
Software
AS PER WEBSITE DETAILS
PRESS RELEASES:
MAHINDRA AND MAHINDRA LIMITED
Mumbai, May 30, 2014: The Board of Directors of Mahindra
and Mahindra Limited today announced the financial results for the quarter
ended 31st March 2014
of the company and the audited results for the year ended 31st March 2014 for the company and the
consolidated Mahindra Group.
Mahindra Vehicle Manufacturers
Limited (MVML), located at Chakan near Pune, was set up as a 100% subsidiary of
the company with a view to sourcing contemporary products for expanding the
market offerings of the company. Hence, it is a critical part of its business
and only the combined results of the company and MVML will provide a
comprehensive view of company’s performance.
Q4 F2014 – M&M + MVML Results
The Gross Revenues and other income
of Mahindra and Mahindra Limited and MVML (Entity) during the quarter ended 31stMarch
2014 is Rs.
1129720.000 million as against Rs. 1134230.000 million in the previous year.
During the current quarter, the Scheme of Arrangement for the merger of the
Trucks business of M&M’s subsidiary, Mahindra Trucks and Buses Ltd. (MTBL)
with M&M, was approved by the Honourable High Court of Bombay vide its order
dated 7th March 2014
and as required by the order, it has been given effect to w.e.f. 1st April 2013. In view of this the
financials of the Trucks business of MTBL became a part of the current year
financials of the company. Also due to the merger, the past unabsorbed tax
losses related to the Trucks business of MTBL became available to the company
and there was a onetime tax saving during the current year.
After giving effect to the above,
the Net Profit after exceptional items and tax for the current quarter is Rs.
96770.000 million, against Rs. 96290.000 million in Q4 last year. Excluding the Trucks business of
MTBL, net profit after tax for the quarter is Rs 97560.000 million and the
Operating Margin is 14.0%.
The deceleration in the Gross
Revenues in the quarter is due to the challenging times the Indian auto
industry is currently passing through with volumes shrinking by 11.6% in Q4
F2014. Despite this, the entity could deliver a healthy Operating Margin and a
growth in its profits in the quarter due to a strong sales performance by its
Farm Equipment Sector and a tight control on material costs and all expenses.
In the Passenger Utility Vehicle
segment, the Entity sold 60900 vehicles in the current quarter with a market
share of 43.3%. In the Cars segment, the Entity sold 1633 Veritos. The Entity
also exported 8335 Vehicles in the current quarter.
In the wake of a good monsoon, the
domestic tractor industry continued to show robust growth with sales of 138567
tractors in Q4 F2014, against 123767 tractors sold in Q4 last year - a growth
of 12.0%. In this period, the Company’s domestic sales at 52732 tractors, grew
by 14.4% over the 46107 tractors sold in Q4 last year. Company’s market share
was 37.9% as against 37.1% in Q4 last year. Mahindra Powerol posted net revenue
of Rs. 21750.000 million in Q4 F2014.
Q4 F2014 – M&M Standalone
results
The Gross Revenues and Other Income
of Mahindra and Mahindra Limited for the quarter ended 31st March 2014 is Rs.1176470.000 million as against Rs. 1136580.000 million
during the corresponding period last year. The Net Profit after exceptional
items and tax for the current Q4 is Rs.
89690.000 million as against Rs. 88920.000 million in
the same period. Excluding the impact of the above merger, net profit for the
current Q4 is Rs 90480.000 million.
F2014 – M&M + MVML Results
The Gross Revenues and other income
of Mahindra and Mahindra Limited and MVML during the year ended 31st March 2014 is Rs. 4325640.000 million as against Rs. 4365530.000 million in
the previous year.
The Net Profit after exceptional items and tax for the current year is Rs. 390510.000 million as against Rs.363440.000 million in
the previous year – a growth
of 7.4%. Excluding the impact of the merger, the
net profit for the current quarter is Rs 39130.000 million and the Operating Margin is 14.5%.
F2014 - M&M Standalone results
The Gross Revenues and other income
of Mahindra and Mahindra Limited during the year ended 31st March 2014 is Rs. 4383820.000 million as against Rs. 4396180.000 million in
the previous year. The Net Profit after exceptional items and tax for the
current year is Rs. 375840.000 million, against Rs. 335280.000 million in the
previous year - a growth
of 12.1%. Excluding the impact of the merger, the net profit
for the current quarter is Rs 376630.000 million.
The Board of Directors has
recommended a dividend of Rs.13.50 (270%) per share and a special dividend of
Rs. 0.50 (10%) per share of face value Rs. 5.00 aggregating Rs. 14.00 (280%) which
will absorb a sum of Rs. 9658.100 million inclusive of tax (previous year Rs.
13.00 (260%) per share of face value Rs.5.00 each which absorbed an amount of
Rs. 8911.500 million inclusive of tax) and will be paid to those shareholders
whose names stand registered in the books of the company as on the book closure
date.
F2014 – Group Consolidated Results
The consolidated Gross Revenues and
Other Income for the year ended 31st March 2014 grew by 5.9 % to Rs.
7873570.000 million (USD
13.1 billion) from Rs.7436080.000
million (USD 12.3 billion) in last year. On account of a change in
the status of Tech Mahindra from a Joint Venture to an Associate in F-2013, and
sale of Mahindra Forgings Limited and Mahindra Hinoday Industries Limited as
part of the CIE deal in F-2014, the revenues reported above are not strictly
comparable. On a
comparable basis the growth in the consolidated revenues in the current year is
9.4% over the previous year.
The consolidated profit after tax and after deducting minority interests for
the year is Rs.
46669.000 million (USD 774.2 million) as compared to Rs. 409920.000 million
(USD 680.0 million) in the previous year – a growth
of 13.8%.
During the year some of the major
group companies like Tech Mahindra, Ssangyong Motor Company and Mahindra
Finance improved their performance over the previous year. Tech Mahindra
Limited grew consolidated revenue by 31% and consolidated PAT by 55%. The
group’s Korean subsidiary, Ssangyong Motor Company, turned in a significantly
improved performance with a 20% growth in revenue and posted a profit in F-2014
as compared to a loss in the previous year. Mahindra Finance in a very
challenging environment grew consolidated revenue by 29% and consolidated PAT
by 3%.
The Group at the end of the year
comprised of 118 Subsidiaries, 7 Joint Ventures and 14 Associates. A full
summation of Gross Revenues and other income of all the group companies taken
together for the whole year F2014 is Rs.
9917660.000 Millions (USD 16.5 billion).
Outlook:
Despite a robust monsoon season and
record agricultural output, manufacturing activity witnessed a contraction in
2013-14, its worst performance in over 20 years, and overall GDP growth dropped
below five percent for a second fiscal year in succession. However,
looking forward, the Company believes the economy will witness a decisive,
albeit gradual, turnaround in growth in 2014-15. With economic recovery in
developed countries gaining strength, and the INR more competitively valued
than before, external demand for Indian goods and services is likely to witness
a sharper pick-up in the current year. More importantly, with a strong, stable,
pro-growth government installed at the centre, decisive policy actions aimed at
reviving domestic economic activity are bound to pick up speed. Thus, despite
El Nino risks clouding the outlook for agriculture, we expect to witness a
nascent, infrastructure and manufacturing-led economic recovery in F2015.
Overall, our current outlook is tinged with optimism as we await the economic
policies of the new Government.
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 records 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.59.48 |
|
|
1 |
Rs.100.93 |
|
Euro |
1 |
Rs.80.71 |
INFORMATION DETAILS
|
Information Gathered
by : |
PDT |
|
|
|
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
SNT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
69 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.