MIRA INFORM REPORT
|
Report Date : |
26.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
MAHINDRA CIE AUTOMOTIVE LIMITED |
|
|
|
|
Formerly Known
As : |
MAHINDRA FORGINGS LIMITED (w.e.f. 31.11.2006) MAHINDRA AUTOMOTIVE STEELS LIMITED |
|
|
|
|
Registered
Office : |
Mahindra Towers, P.K. Kurne Chowk, Worli, Mumbai – 400 018,
Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
13.08.1999 |
|
|
|
|
Com. Reg. No.: |
11-121285 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.921.733 Millions |
|
|
|
|
CIN No.: [Company
Identification No.] |
L27100MH1999PLC121285 |
|
|
|
|
TAN No.: [Tax Deduction
& Collection Account No.] |
MUMM26971A |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AABCM6632J |
|
|
|
|
Legal Form : |
A Public Limited Liability Company.
The Company’s Shares are Listed on the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturer of Forging Parts and Axle Beam. |
|
|
|
|
No. of Employees
: |
877 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (54) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 36100000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a Mahindra Group Company. It is a well-established and a reputed company having satisfactory
track. Financial position of the company seems to be decent. Trade relations are reported as fair. Business is active. Payment terms
are reported to be usually correct and as per commitments. In view of strong promoters, the company can be considered normal for
business dealings at usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
INDIAN ECONOMIC OVERVIEW
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.2453.2 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
|
Rating Agency Name |
CARE |
|
Rating |
Long Term Bank Facilities = BBB |
|
Rating Explanation |
Have moderate degree of safety and carry
moderate credit risk |
|
Date |
10.04.2014 |
|
Rating Agency Name |
CARE |
|
Rating |
Short Term Bank Facilities = A3 |
|
Rating Explanation |
Have moderate degree of safety and carry
higher credit risk |
|
Date |
10.04.2014 |
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 Co-operative (Tel No.: 91-22-24901441)
LOCATIONS
|
Registered Office : |
Mahindra Towers, P.K. Kurne Chowk, Worli, Mumbai – 400 018,
Maharashtra, India |
|
Tel. No.: |
91-22-24901441 |
|
Fax No.: |
91-22-24915890 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory : |
Gat No. 856 to 860, Chakan Ambethan Road, Taluka: Khed, District
Pune - 410 501, Maharashtra, India |
|
Tel. No.: |
91-2135-252677/252886 Ext. 307 |
|
Fax No.: |
91-2135-252277 |
DIRECTORS
As on 31.03.2013
|
Name : |
Mr. Hemant Luthra |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. K. Ramaswami |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. Zhooben Bhiwandiwala |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. V. K. Chanana |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Mohit Burman |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Fali P. Mama |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Nikhilesh Panchal |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Harald Korte |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Oliver Scholz |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Daljit Mirchandani |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Ajay Mantry |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Mr. Krishnan Shankar |
|
Designation : |
Company Secretary and Head
Legal |
|
|
|
|
Committees
of the Board : |
|
|
|
|
|
Audit
Committee : |
Mr. V. K. Chanana Mr. Mohit Burman Mr. Zhooben Bhiwandiwala Mr. Nikhilesh Panchal Mr. Fali P. Mama Mr. Daljit Mirchandani |
|
|
|
|
Remuneration/
Compensation Committee : |
Mr. Mohit Burman Mr. Hemant Luthra Mr. V. K. Chanana Mr. Nikhilesh Panchal Mr. Daljit Mirchandani |
|
|
|
|
Share
Transfer and Shareholders’/ Investors’ Grievance
Committee : |
Mr. Daljit Mirchandani Mr. V. K. Chanana Mr. Fali P. Mama |
SHAREHOLDING PATTERN
As on 31.03.2014
|
Category of
Shareholder |
No. of Shares |
Percentage
of Holding |
|
(A)
Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
296109 |
0.32 |
|
|
296109 |
0.32 |
|
|
|
|
|
|
73031693 |
79.09 |
|
|
73031693 |
79.09 |
|
Total
shareholding of Promoter and Promoter Group (A) |
73327802 |
79.41 |
|
(B)
Public Shareholding |
|
|
|
|
|
|
|
|
3696693 |
4.00 |
|
|
9397 |
0.01 |
|
|
3145175 |
3.41 |
|
|
6851265 |
7.42 |
|
|
|
|
|
|
3946483 |
4.27 |
|
|
|
|
|
|
4530920 |
4.91 |
|
|
1958283 |
2.12 |
|
|
1725713 |
1.87 |
|
|
441476 |
0.48 |
|
|
63924 |
0.07 |
|
|
1198063 |
1.30 |
|
|
22250 |
0.02 |
|
|
12161399 |
13.17 |
|
Total
Public shareholding (B) |
19012664 |
20.59 |
|
Total
(A)+(B) |
92340466 |
100.00 |
|
(C)
Shares held by Custodians and against which Depository Receipts have been
issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total
(A)+(B)+(C) |
92340466 |
0.00 |
Individual shareholders holding nominal
share capital up to Rs.0.100 million
Shareholding of securities (including shares, warrants, convertible
securities) of persons belonging to the category Promoter and Promoter Group
|
Particulars |
No. of Shares |
Percentage
of Holding |
|
Mahindra
and Mahindra Limited |
296109 |
0.32 |
|
Participaciones
Internacionales Autometal, Dos S.L |
73031693 |
79.09 |
|
Total |
73327802 |
79.41 |
Shareholding of securities (including shares, warrants, convertible
securities) of persons belonging to the category Public and holding more than
1% of the total number of shares
|
Particulars |
No. of Shares |
Percentage
of Holding |
|
Sundaram
Mutual Fund A/c Sundaram Select Midcap |
1564642 |
1.69 |
|
Blackrock
India Equities Fund (Mauritius) Limited |
1531902 |
1.66 |
|
Nainesh
Trading and Consultancy LLP |
1832299 |
1.98 |
|
Total |
4928843 |
5.34 |
Details of Locked-in Shares
|
Particulars |
No. of Shares |
Percentage
of Holding |
|
Participaciones
Internacionales Autometal, Dos S.L |
42,99,270 |
4.66 |
|
Total |
42,99,270 |
4.66 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Forging Parts and Axle Beam. |
PRODUCTION STATUS (As on 31.03.2011)
|
Particulars |
31st
March, 2010 |
|
Forging |
|
|
Unit |
M.T |
|
Installed Capacity (3 shifts basis) |
85545 |
|
Production |
31794 |
GENERAL INFORMATION
|
Customers : |
·
Maruti Suzuki ·
Tata Motors ·
Renault ·
Benteler Automotive USA ·
FIAT ·
Mahindra Reva Ashok Leyland ·
Piaggio ·
Daimler India ·
Eicher Motors ·
Force Motors ·
Jaguar Land Rover ·
Mahindra and Mahindra ·
Mahindra Navistar ·
Tata Motors ·
Volvo ·
ZF ·
Mahindra Tractors ·
International Tractors ·
Escorts ·
Tractor and Farm Equipment (TAFE) ·
Same Deutz Fahr ·
V M Motori ·
Deutz ·
Electro Motive Diesel USA, ·
Diesel Locomotive Works ·
BEML |
||||||||||||
|
|
|
||||||||||||
|
No. of Employees : |
877 (Approximately) |
||||||||||||
|
|
|
||||||||||||
|
Bankers : |
|
||||||||||||
|
|
|
||||||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
B.K. Khare and Company Chartered Accountants |
|
Address : |
706/ 708, Sharda Chambers, Mumbai – 400 020, Maharashtra, India |
|
|
|
|
Holding Company : |
·
Mahindra and Mahindra Limited |
|
|
|
|
Subsidiary
Companies : |
· Stokes Group Limited · Mahindra Forgings International Limited · Mahindra Forgings Europe AG · JECO-Jellinghaus GmbH · Mahindra Forgings Global Limited |
|
|
|
|
Fellow Subsidiaries
( With whom the company has entered into transactions during the current /
previous year) : |
· Mahindra Ugine Steel Company Limited · Mahindra Navistar Automotives Limited · Mahindra Logistics Limited · Mahindra Hinoday Industries Limited. · Mahindra Engineering Services Limited · Mahindra Vehicle Manufacturers Limited · Mahindra Reva Electric Vehicles Private Limited. · Mahindra Conveyor Systems Private Limited · Mahindra Integrated Business Solutions Private Limited (formerly known as Mahindra BPO Services Private Limited) · Mahindra Sanyo Special Steels Private Limited · (formerly known as Navyug Special Steel Private Limited) · Defence Land System India Private Limited (formerly known as Mahindra Defence Land Systems Private Limited) |
CAPITAL STRUCTURE
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
122000000 |
Equity shares |
Rs.10/- each |
Rs.1220.000 Millions |
|
14820206 |
4% Non-Cumulative Redeemable Non-Convertible Preference Shares |
Rs.31/- each |
Rs.459.426 Millions |
|
|
Total |
|
Rs.1679.426
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
92173306 |
Equity Shares |
Rs.10/- each |
Rs.921.733 Millions |
Reconciliation of
the number of shares
|
Equity Shares |
Number
of Shares |
Rs In Millions |
|
Balance as at
the beginning of the year |
92169056 |
921.691 |
|
Add: issued under
the employees stock option scheme |
4250 |
0.042 |
|
Add: issued
during the year on conversion of preferential warrants issued to holding
company (Mahindra and Mahindra Limited) |
- |
- |
|
Balance at the
end of the year |
92173306 |
921.733 |
Rights, preferences and restriction attached to shares
Equity shares:
·
The Company has one class of equity shares having a
par value of Rs.10 per equity share held.
·
Each shareholder is eligible for one vote per share
·
If any dividend is proposed by the board of
directors, then the same is subject to approval of the shareholders in the
ensuing annual general meeting except in the case of interim dividend.
·
In the unlikely event of the liquidation of the
Company the equity shareholders are eligible to receive the residual value of
assets of the Company if any after all secured and unsecured creditors of the
company are paid off, in the proportion of their shareholding in the Company.
Shares held by holding company and their subsidiaries and associates
|
Name of
Shareholder |
Number
of Shares |
% holding |
|
|
|
|
|
Mahindra and Mahindra Limited (Holding
company) |
48825609 |
52.67% |
Details of shares held by shareholders holding more than 5% of the aggregate
shares in the company
|
Name of
Shareholder |
Number
of Shares |
% holding |
|
|
|
|
|
Mahindra and Mahindra Limited (Holding
company) |
48825609 |
52.67% |
|
Scholz AG |
6298843 |
6.83% |
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 |
921.733 |
921.691 |
878.698 |
|
(b) Reserves & Surplus |
8,096.784 |
7,672.696 |
6,999.862 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
147.250 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
9,018.517 |
8,594.387 |
8,025.810 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
170.152 |
186.218 |
526.987 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long term liabilities |
7.461 |
6.002 |
21.996 |
|
(d) long-term provisions |
0.000 |
0.000 |
0.000 |
|
Total Non-current Liabilities (3) |
177.613 |
192.220 |
548.983 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
140.317 |
176.901 |
444.175 |
|
(b) Trade payables |
901.233 |
760.847 |
739.930 |
|
(c) Other current
liabilities |
101.913 |
421.255 |
497.737 |
|
(d) Short-term provisions |
7.099 |
1.637 |
3.584 |
|
Total Current Liabilities (4) |
1,150.562 |
1,360.640 |
1,685.426 |
|
|
|
|
|
|
TOTAL |
10,346.692 |
10,147.247 |
10,260.219 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
1,923.116 |
2,014.775 |
1,790.900 |
|
(ii) Intangible Assets |
7.012 |
9.464 |
5.394 |
|
(iii) Capital
work-in-progress |
110.447 |
159.792 |
428.442 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
6,844.442 |
6,834.083 |
6,725.648 |
|
(c) Deferred tax assets (net) |
33.291 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
62.223 |
80.477 |
67.143 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current Assets |
8,980.531 |
9,098.591 |
9,017.527 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
390.834 |
0.000 |
0.000 |
|
(b) Inventories |
467.271 |
483.620 |
530.782 |
|
(c) Trade receivables |
420.398 |
438.065 |
560.395 |
|
(d) Cash and cash
equivalents |
23.731 |
66.233 |
18.608 |
|
(e) Short-term loans and
advances |
61.125 |
55.350 |
114.466 |
|
(f) Other current assets |
2.802 |
5.388 |
18.441 |
|
Total Current Assets |
1,366.161 |
1,048.656 |
1,242.692 |
|
|
|
|
|
|
TOTAL |
10,346.692 |
10,147.247 |
10,260.219 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
4,403.581 |
4,325.193 |
3,572.509 |
|
|
|
Other Income |
41.953 |
21.621 |
27.720 |
|
|
|
TOTAL (A) |
4,445.534 |
4,346.814 |
3,600.229 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
2,426.225 |
2,336.801 |
2,089.411 |
|
|
|
Changes in inventories of finished goods, work-in-progress
and Stock-in-Trade |
(94.700) |
103.298 |
(43.148) |
|
|
|
Employees benefits expense |
306.330 |
293.069 |
250.762 |
|
|
|
Other expenses |
1,101.084 |
1,177.690 |
969.556 |
|
|
|
Exceptional Items |
0.000 |
15.589 |
0.000 |
|
|
|
TOTAL (B) |
3,738.939 |
3,926.447 |
3,266.581 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
706.595 |
420.367 |
333.648 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
56.783 |
113.368 |
144.416 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
649.812 |
306.999 |
189.232 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
274.442 |
239.189 |
220.991 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
375.370 |
67.810 |
(31.759) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(33.291) |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
408.661 |
67.810 |
(31.759) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(1243.350) |
(1311.160) |
(1279.401) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(834.689) |
(1243.350) |
(1311.160) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Exports (F.O.B. Value) |
181.624 |
136.730 |
92.481 |
|
|
TOTAL EARNINGS |
181.624 |
136.730 |
92.481 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Stores & Spares |
24.489 |
43.999 |
36.870 |
|
|
|
Capital Goods |
1.896 |
51.784 |
35.211 |
|
|
TOTAL IMPORTS |
26.385 |
95.783 |
72.081 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
4.43 |
0.75 |
(0.36) |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
9.19 |
1.56 |
(0.88) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
8.52 |
1.57 |
(0.89) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
11.18 |
2.15 |
(1.02) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.04 |
0.01 |
0.00 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.03 |
0.04 |
0.12 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.19 |
0.77 |
0.74 |
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 |
878.698 |
921.691 |
921.733 |
|
Reserves & Surplus |
6999.862 |
7672.696 |
8096.784 |
|
Money received against share
warrants |
147.250 |
0.000 |
0.000 |
|
Net
worth |
8025.810 |
8594.387 |
9018.517 |
|
|
|
|
|
|
long-term borrowings |
526.987 |
186.218 |
170.152 |
|
Short term borrowings |
444.175 |
176.901 |
140.317 |
|
Total
borrowings |
971.162 |
363.119 |
310.469 |
|
Debt/Equity
ratio |
0.121 |
0.042 |
0.034 |
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 |
|
Sales |
3,572.509 |
4,325.193 |
4,403.581 |
|
|
|
21.069 |
1.812 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
Rs.
In Millions |
Rs.
In Millions |
Rs.
In Millions |
|
Sales
|
3,572.509 |
4,325.193 |
4,403.581 |
|
Profit |
(31.759) |
67.810 |
408.661 |
|
|
(0.89%) |
1.57% |
9.28% |
LOCAL AGENCY FURTHER INFORMATION
CURRENT MATURITIES
OF LONG TERM DEBT DETAILS
Rs.
In Millions
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
Current
maturities of long term debt |
|
|
|
|
From bank |
0.000 |
312.794 |
403.625 |
|
Sales tax deferral loan |
16.066 |
10.958 |
7.373 |
|
Total |
16.066 |
323.752 |
410.998 |
|
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 |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
----------- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
Yes |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
---------- |
|
22] |
Litigations that the firm
/ promoter involved in |
---------- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
---------- |
|
26] |
Buyer visit details |
---------- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director,
if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
UNSECURED LOAN:
|
Particulars |
31.03.2013 Rs.
In Millions |
31.03.2012 Rs.
In Millions |
|
Long Term
Borrowings |
|
|
|
Sales Tax Deferral Loan |
170.152 |
186.218 |
|
Total |
170.152 |
186.218 |
Notes:
Rate of Interest: Base Rate plus 4.75% for all Term Loans of State Bank
of India & Base Rate plus 4% for Term Loans from Axis Bank.
COMPANY OVERVIEW
The Company is a
global forging company with plants in Germany, UK and India. The Company is
listed on the BSE Limited and National Stock Exchange of India Limited with
fully owned subsidiary in Germany- Mahindra Forgings Europe AG and subsidiary
in UK – Stokes Group Ltd. For purposes of this report, the two European
companies will be collectively referred to as Mahindra Forgings Europe (‘MFE’).
The German
operations are a full range provider of
forging parts for trucks while being one of the top axle beam manufacturers in the world. They are the largest and
account for more than two thirds of the Company’s revenues. The Indian
operations focus on design, development & machining of crankshafts for cars & UVs while
the operations in UK focus on near net
forgings for the car market .The product portfolios of our Indian and
European operations don’t overlap and are complementary in nature.
FINANCIALS
During the year
the Company registered a Total income of Rs.4445.500 Millions as against
Rs.4346.800 Millions in the previous year and Profit before Interest,
Depreciation, Exceptional items and tax of Rs.706.600 Millions as against
Rs.436.000 Millions in the previous year. The net profit for the year stood at
Rs.408.700 Millions as against a net profit of Rs.67.800 Millions over the
previous year. The Total Income of the Company has grown by 2.2% over the
previous year.
OPERATIONS
During the year,
the Company’s operations in Europe were affected by a decline in sales
compounded by significant operational problems at Schoeneweiss and Company,
GmbH, Mahindra Forgings Europe AG’s (MFE) second largest plant. These problems
have been identified and are being addressed. The mixture of market decline and
operational problems has resulted in MFE ending the year with negative EBITDA.
In India, the
Company has focused on increasing profitability by improving plant operations
in the areas of Quality, Service, Cost and Technology with specific bias to enhancing Machining
capabilities. Productivity has increased due to increased utilization of press
shop and increasing output/day. Input costs like power and oil costs have been
reduced while internal rejections have been significantly controlled. The steps
taken above have translated into continuously improving profitability
quarter-wise in the last financial year. The Company will strive to maintain
this performance in the coming year.
CHANGES IN SHARE
CAPITAL AND ISSUE OF SHARES
Pursuant to
exercise of options under the Company’s Employee Stock Option Scheme, the
Company has allotted 4,250 equity shares of face value of Rs.10/- each at an
exercise price of Rs.57/- per equity share. The aforesaid exercise of options
has resulted in issued and subscribed equity capital increasing from Rs.921.691
Millions to Rs.921.733 Millions.
However, the
shareholding of Promoters in the Company as at 31st March, 2013 remains at
52.97%
OPERATIONAL
PERFORMANCE
India
The Company has
focused on increasing profitability by improving plant operations in the areas
of Quality, Service,
Cost and Technology
with specific bias to enhancing Machining capabilities. Productivity has
increased due to increased utilization of press shop and increasing output/day.
Input costs like power and oil costs have been reduced while internal
rejections have been significantly controlled. The steps taken above have
translated into continuously improving profitability quarter wise in the last
financial year. The Company will strive to maintain this performance in the
coming year.
FINANCIAL
PERFORMANCE
On a standalone
basis, the total income of the Company increased by 2% while profits before
interest, depreciation, exceptional items & tax (EBITDA) increased by 60%.
The net profit for the year stood at Rs.408.700 Millions as against a net
profit of Rs.67.800 Millions the previous year. The net profits generated on a
standalone basis by the company are a historical best and were achieved on
account of the improvement in operations described earlier in the report. On a
consolidated basis, the total income of the Company decreased by 9% in FY13.
The EBITDA% on a consolidated basis was at 1.9%, a decline of 6.6% over FY12.
Figure 6 gives the standalone (MFL, India) & consolidated profit and loss
account for Mahindra Forgings for FY 2011-12 (FY12) and FY 2012-13 (FY 13).
UNAUDITED FINANCIAL RESULTS FOR THE THREE QUARTER AND HALF YEAR ENDED 31ST MARCH 2014
(Rs. In Millions)
|
Particulars |
Quarter Ended ( Unaudited) |
Year Ended ( Audited) |
|
|
|
31.03.2014 |
31.12.2013 |
31.03.2014 |
|
1. Income
from operations |
|
|
|
|
a) Net sales/ Income from operation (net of excise duty) |
888.742 |
808.174 |
3512.195 |
|
b) Other operating income |
93.419 |
90.947 |
353.158 |
|
Total
income from Operations(net) |
982.161 |
899.121 |
3865.353 |
|
2.Expenditure |
|
|
|
|
a) Cost of material consumed |
504.428 |
459.008 |
2002.771 |
|
b) Changes in inventories of finished goods,
work-in-progress and stock-in-trade |
(0.773) |
9.455 |
29.101 |
|
c) Employees benefit expenses |
89.339 |
90.476 |
345.124 |
|
d) Depreciation and amortization expenses |
70.854 |
70.706 |
282.949 |
|
e) Power and Fuel |
80.498 |
80.245 |
336.836 |
|
f) Other expenditure |
133.769 |
157.803 |
628.209 |
|
Total expenses |
878.115 |
867.693 |
3624.990 |
|
3. Profit from operations before other income and
financial costs |
104.046 |
31.428 |
240.363 |
|
4. Other income |
6.602 |
11.934 |
64.520 |
|
5. Profit from ordinary activities before finance costs |
110.648 |
43.362 |
304.883 |
|
6. Finance costs |
20.657 |
15.544 |
37.267 |
|
7. Net profit/(loss) from ordinary activities
after finance costs but before exceptional items |
89.991 |
27.818 |
267.616 |
|
8. Exceptional item |
0.000 |
0.000 |
0.000 |
|
9. Profit from ordinary activities before tax
Expense: |
89.991 |
27.818 |
267.616 |
|
10.Tax expenses |
|
|
|
|
(Less): Mat Credit entitlement |
17.589 |
(0.346) |
53.143 |
|
Prior year tax |
(17.589) |
0.346 |
(53.143) |
|
Deferred tax (credit) / charge |
25.305 |
12.789 |
87.881 |
|
11.Net
Profit / (Loss) from ordinary activities after tax (9-10) |
64.686 |
15.029 |
179.735 |
|
12.Extraordinary Items (net of tax expense) |
0.000 |
0.000 |
0.000 |
|
13.Net Profit / (Loss) for the period (11 -12) |
64.686 |
15.029 |
179.735 |
|
14.Paid-up equity share capital (Nominal value Rs.10/- per share) |
923.405 |
922.604 |
923.405 |
|
15. Reserve excluding Revaluation
Reserves as per balance sheet of previous accounting year |
-- |
-- |
8391.724 |
|
16. Earnings per share (after extraordinary items) |
|
|
|
|
Basic |
0.70 |
0.16 |
1.95 |
|
Diluted |
0.70 |
0.16 |
1.95 |
|
Particulars |
Quarter Ended ( Unaudited) |
Year Ended ( Audited) |
|
|
|
31.03.2014 |
31.12.2013 |
31.03.2014 |
|
A. Particulars of shareholding |
|
|
|
|
1. Public Shareholding |
|
|
|
|
- Number of shares |
19012664 |
18932647 |
18916279 |
|
- Percentage of shareholding |
20.59% |
20.52% |
20.51% |
|
2. Promoters and Promoters group Shareholding- |
|
|
|
|
a) Pledged /Encumbered |
|
|
|
|
Number of shares |
- |
- |
- |
|
Percentage of shares (as a % of total shareholding of the promoter
and promoter group) |
- |
- |
- |
|
Percentage of shares (as a % of total share capital of the
company) |
- |
- |
- |
|
|
|
|
|
|
b) Non Encumbered |
|
|
|
|
Number of shares |
73327802 |
73327802 |
73327802 |
|
Percentage of shares (as a % of total shareholding of the
promoter and promoter group) |
100.00% |
100.00% |
100.00% |
|
|
79.48% |
79.48% |
79.48% |
|
Percentage of shares (as a % of total share capital of the
company) |
|
|
|
|
|
|
|
|
|
B. Investor
Complaints |
|
||
|
Pending at the beginning of the quarter |
Nil |
||
|
Receiving during the quarter |
8 |
||
|
Disposed of during the quarter |
8 |
||
|
Remaining unreserved at the end of the quarter |
Nil |
||
STANDALONE STATEMENT
OF ASSTES AND LIABILITIES AS ON 31.04.2014
Rs. In Millions
|
SOURCES
OF FUNDS |
|
|
31.03.2014 Unaudited |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(a) Share Capital |
|
|
923.405 |
|
(b) Reserves & Surplus |
|
|
8,391.725 |
|
(c) Money received against share warrants |
|
|
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
|
|
0.000 |
|
Total Shareholders’ Funds (1) + (2) |
|
|
9,315.130 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) Long-term borrowings |
|
|
146.094 |
|
(b) Deferred tax liabilities (Net) |
|
|
54.589 |
|
(c) Other long term liabilities |
|
|
8.998 |
|
(d) Long-term provisions |
|
|
0.000 |
|
Total Non-current Liabilities (3) |
|
|
209.681 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
|
|
592.079 |
|
(b) Trade payables |
|
|
816.897 |
|
(c) Other current liabilities |
|
|
146.585 |
|
(d) Short-term provisions |
|
|
16.512 |
|
Total Current Liabilities (4) |
|
|
1,572.073 |
|
|
|
|
|
|
TOTAL |
|
|
11,096.884 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
1,853.324 |
|
(b) Non-current Investments |
|
|
7,552.786 |
|
(c) Deferred tax assets (net) |
|
|
0.000 |
|
(d) Long-term Loan and Advances |
|
|
93.430 |
|
(e) Other Non-current assets |
|
|
0.000 |
|
Total Non-Current Assets |
|
|
9,499.540 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
|
|
556.511 |
|
(b) Inventories |
|
|
443.527 |
|
(c) Trade receivables |
|
|
493.185 |
|
(d) Cash and cash equivalents |
|
|
60.522 |
|
(e) Short-term loans and advances |
|
|
42.657 |
|
(f) Other current assets |
|
|
0.942 |
|
Total Current Assets |
|
|
1,597.344 |
UNAUDITED SEGMENT
WIE REVENUE, RESULTS AND CAPITAL EMPLOYED
(Rs. In
Millions)
|
Particulars |
|
|
Year
Ended (
Audited) |
|
|
|
|
31.03.2014 |
|
1.
Segment Revenue |
|
|
|
|
a. Indian |
|
|
4089.135 |
|
b. overseas |
|
|
22042.430 |
|
Total |
|
|
26131.565 |
|
Less : Inter Segment Revenue |
|
|
223.782 |
|
Net
Sales |
|
|
25907.783 |
|
|
|
|
|
|
2.
Segment Result (Profit
before Interest and Tax) |
|
|
|
|
a. Indian |
|
|
53.600 |
|
b. overseas |
|
|
(148.469) |
|
Total |
|
|
(94.869) |
|
|
|
|
|
|
Less
: (i) Other un-allocable expenditure |
|
|
606.656 |
|
(ii) Net off un-allocable
income. |
|
|
0.000 |
|
Profit
before Tax |
|
|
(701.525) |
|
|
|
|
|
|
3. Capital
Employed |
|
|
|
|
a. Indian |
|
|
1147.280 |
|
b. overseas |
|
|
4176.452 |
|
Total |
|
|
5323.732 |
The company’s operations constitute a single
business segment, namely forging components.
INDEX OF CHARGE:
|
Sr. No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10019138 |
18/04/2013 * |
937,800,000.00 |
STATE BANK OF INDIA |
Commercial Branch (Advances), N.G.N. Vaidya Marg, Bank Street, Horniman Circle, Post Box 10141, Fort, Mumbai, Maharashtra - 400001, India |
B75163998 |
FIXED ASSETS:
·
Freehold Land
·
Building
·
Plant and Machinery
·
Furniture and Fittings
·
Vehicle
·
Software
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
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.58.48 |
|
UK Pound |
1 |
Rs.98.67 |
|
Euro |
1 |
Rs.79.81 |
INFORMATION DETAILS
|
Information
Gathered by : |
SVA |
|
|
|
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
VNT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
|
|
|
|
TOTAL |
|
54 |
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.