MIRA
INFORM REPORT
|
Report Date : |
12.09.2014 |
IDENTIFICATION DETAILS
|
Name : |
MAHINDRA COMPOSITES LIMITED (w.e.f. 17.01.2007) |
|
|
|
|
Formerly Known
As : |
SIRO PLAST LIMITED |
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Registered
Office : |
145, |
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Country : |
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Financials (as
on) : |
31.03.2013 |
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|
Date of
Incorporation : |
18.08.1982 |
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|
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Com. Reg. No.: |
25-028040 |
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|
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Capital
Investment / Paid-up Capital : |
Rs.44.139 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L24117PN1982PLC028040 |
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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 Electrical Switchgear, Automotive, Medical Equipment,
and also Power Distribution. |
|
|
|
|
No. of Employees
: |
300 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (42) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 585000 |
|
|
|
|
Status : |
Satisfactory |
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|
|
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Exist |
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Comments : |
Subject is a part of MAHINDRA AND MAHINDRA GROUP. It is an established
company having satisfactory track record. The company has incurred loss form its operational activities during the
financial year 2012 and 2013. However, the company gets good financial and managerial support from
its group of companies. Trade relations are fair. Business is active. Payment terms are
reported to be slow but correct. The company can be considered 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.
ECGC Country Risk Classification List – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
N E W S
As per the latest IMF study, the total weigh of emerging markets in the GDP
of the world on a purchasing power parity basis has seen a sizeable shift. It
highlights how as against 51 % in 2005, the emerging economies now account for
close to 56 % of the global purchasing power GDP as per the latest survey. And
with the emerging economies growing at a faster rate than their developed
counterparts, there are every possibility that the their share goes up further
in the coming years. China may surpass the US over the next few years.
Politics and economics are very intricately connected. They tend to
influence each other in ways that could be very complex and far-reaching. The
prospects of the India’s economy have been seriously compromised due to
political corruption. High inflation, poor standard of living are to a great
extent a result of rampant corruption in the country. China on the other hand,
seems to be facing diametrically opposite challenge. American hedge fund
manager Jim Chanos has been keenly following the political and economic
development in the dragon economy and has figured out something that is quite
worrying. He is of the view that the Chinese economy could be heading toward
trouble on account of new Chinese President Xi Jingping’s very aggressive
anti-corruption drive. Chanos believes tat many things such as apartment sales,
luxury products, etc. were largely bought with dirty money. And it is now
beginning to impact consumption. This may indeed be bad news for an economy
that is struggling to transition from an investment-driven export-oriented
economy to a domestic consumption-driven economy.
A study published by Firstpost has revealed that asset classes like real
estate and equities were the biggest beneficiaries of the liberalization
policies. A firm called Ciane Analytics studied returns from assets
including equities, gold, fixed deposits, G-Secs and real estate since 1991.
Real estate outperformed every other asset classes during the 23-year period
with an annualized return of 20 % ! Equities came in second with annualized
return of 15.5 % ! However, while these returns may seem mouthwatering, the
fact is that the return from equities adjusted for inflation came down to just
7.1 %.
Some brief news are as under
. R-Power to buy Jaypee’s hydro assets
. Investors await justice in NSEL case
. India seeks MFN status from Pakistan ahead of meeting
. Ukrain’s clashes with rebels hinder MH17 crash investigation
. India exploring merger of state-owned hydro PSUs
..Higher costs weigh down profit growth to slowest in 9 quarters
..Wal-Mart to expand wholesale business in India
. GMR group moves to strengthen balance sheet
. Central Bank to sell 4 % stake to Life Insurance Corporation
. Tata Chemicals plans to raise up to Rs 10000 mn.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Long Term Rating Loan BBB+ |
|
Rating Explanation |
Moderate degree of safety and moderate
credit risk. |
|
Date |
28.07.2014 |
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
31-03-2014.
INFORMATION PARTED BY (GENERAL DETAILS)
|
Name : |
Mr. Ravi Girisagar |
|
Designation : |
Marketing Manager |
|
Contact No.: |
91-9011762929 |
|
Date : |
06.09.2014 |
LOCATIONS
|
Registered / Head Office / Factory 1 : |
145, Nehru Nagar Road, Off. Mumbai-Pune Road, Pimpri, Pune-411018,
Maharashtra, India |
|
Tel. No.: |
91-20-
27425265 / 66 / 66300946 |
|
Mobile No.: |
91- 9011762929 (Mr.
Ravi Girisagar) |
|
Fax No.: |
91-
20-27425272 |
|
E-Mail : |
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|
Website : |
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|
Location : |
Owned |
|
|
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Factory 2 : |
Survey No. 178/0, Village |
|
Tel. No.: |
91-2140-263128/112 |
|
Fax No.: |
91-2140-263145 |
DIRECTORS
As on 31.03.2013
|
Name : |
Mr. Hemant Luthra |
|
Designation : |
Chairman |
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|
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|
Name : |
Mr. B M Kataria |
|
Designation : |
Director |
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|
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|
Name : |
Mr. R R Krishnan |
|
Designation : |
Director |
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|
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|
Name : |
Mr. C S Devale |
|
Designation : |
Director |
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|
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|
Name : |
Mr. Dhananjay Mungale |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Romesh Kaul |
|
Designation : |
Director (w.e.f. 6th
February, 2013) |
KEY EXECUTIVES
|
Name : |
Mr. Mahadev Shinde |
|
Designation : |
Chief Operating Officer |
|
|
|
|
Name : |
Mr. Vijayendra Kolambkar |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Mr. Ravi Girisagar |
|
Designation : |
Marketing Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2013
|
Category of
Shareholder |
Total No. of
Shares |
% of Total No.
of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
416000 |
9.42 |
|
|
416000 |
9.42 |
|
|
|
|
|
|
2725819 |
61.74 |
|
|
2725819 |
61.74 |
|
Total shareholding of Promoter and Promoter Group (A) |
3141819 |
71.16 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
1600 |
0.04 |
|
|
2050 |
0.05 |
|
|
3650 |
0.08 |
|
|
|
|
|
|
89998 |
2.04 |
|
|
|
|
|
|
1031349 |
23.36 |
|
|
110436 |
2.50 |
|
|
38016 |
0.86 |
|
|
38016 |
0.86 |
|
|
1269799 |
28.76 |
|
Total Public shareholding (B) |
1273449 |
28.84 |
|
Total (A)+(B) |
4415268 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
|
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
4415268 |
0.00 |
Shareholding of securities (including shares, warrants, convertible
securities) of persons belonging to the category Promoter and Promoter Group
|
Name of the
Shareholder |
Details of Shares held |
|
|
No. of Shares held |
% of grand total |
|
|
Participaciones Internacionales Automel, DOS S L |
27,25,819 |
61.74 |
|
Prudential Management and Services Pvt Ltd |
4,16,000 |
9.42 |
|
Total |
31,41,819 |
71.16 |
(*) The term encumbrance has the same meaning as assigned to it in
regulation 28(3) of the SAST Regulations, 2011.
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
|
Name of the
Shareholder |
No. of Shares held |
% of Total No. of Shares |
|
Dipak Kanayalal Shah |
71735 |
1.62 |
|
Total |
71735 |
1.62 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Electrical Switchgear, Automotive, Medical Equipment,
and also Power Distribution. |
|
|
|
|
Brand Name : |
·
SAROVAR ·
ELECTRA |
|
|
|
|
Exports : |
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|
Countries : |
USA |
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|
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Imports : |
|
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Countries : |
China |
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Terms : |
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|
Selling : |
Credit (60 Days) |
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|
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Purchasing : |
Credit (60 Days) |
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|
|
GENERAL INFORMATION
|
Customers : |
OEMs ·
L and T ·
Tata Engineering and Locomotive Company Limited ·
Ashok Leyland Limited ·
TVS Suzuki Limited ·
Swaraj Mazda Limited ·
Mahindra and Mahindra Limited ·
Volvo ·
ABB ·
Siemens ·
GE Power Control ·
Havells |
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No. of Employees : |
300 (Approximately) |
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Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
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|
|
|
Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
Address : |
706, B Wing , 7th Floor, ICC Trade Tower, Senapati Bapat
Road, Pune - 411016, Maharashtra,
India |
CAPITAL STRUCTURE
After 27.09.2013
Authorised Capital : Rs. 150.000 Million
Issued Capital Subscribed & Paid-up Capital : Rs. 44.153
Million
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
15000000 |
Equity Shares |
Rs.10/- each |
Rs.150.000 Millions |
|
|
|
|
|
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
4414974 |
Equity Shares |
Rs.10/- each |
Rs.44.150 Millions |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
4413924 |
Equity Shares |
Rs.10/- each |
Rs.44.139 Millions |
|
|
|
|
|
Reconciliation of
the no. of shares outstanding at the beginning and at the end of the year:
|
Particulars |
31.03.2013 |
|
|
|
Number of shares |
Rs. In Millions |
|
No of shares outstanding at the beginning of the year |
4413924 |
44.139 |
|
Add: Additional
shares issued during the year under Employee Stock Option Scheme |
-- |
-- |
|
Number of shares outstanding at the end of the year |
4413924 |
44.139 |
NOTE:
(i)
Number of shares
held by each shareholder holding more than 5% shares in the company are as
follows:
|
Particulars |
31.03.2013 |
|
|
|
Number of shares Held |
% holding in that class of shares |
|
Mahindra and Mahindra Limited |
1,341,203 |
30.39% |
|
Prudential
Management and Services Private Limited |
1,341,203 |
9.42% |
|
Azrael Investments Limited |
-- |
-- |
(ii)
The Company has only one class of shares referred
to as equity shares having a face value of Rs.10 per share. Each holder of
equity shares is entitled to one vote per share. The Company declares and pays
dividends to its shareholders which are proposed by the Boards of Directors and
approved by the shareholders at the Annual General Meeting. In the event of
liquidation of Company, the equity shareholders will be entitled to receive any
of the remaining assets of the Company, after distribution of preferential
amounts. However, no such preferential amounts exist currently. The
distribution will be in proportion to the number of equity shares held by the
shareholders.
(iii)
Shares granted and issued under the Employee Stock
Option Scheme.
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 |
44.139 |
44.139 |
44.040 |
|
(b) Reserves & Surplus |
102.183 |
111.969 |
120.691 |
|
(c) Money received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2)
Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
146.322 |
156.108 |
164.731 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
5.725 |
7.482 |
9.386 |
|
(b) Deferred tax liabilities (Net) |
4.400 |
4.100 |
2.700 |
|
(c) Other long term liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term provisions |
0.000 |
1.251 |
4.400 |
|
Total
Non-current Liabilities (3) |
10.125 |
12.833 |
16.486 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short term borrowings |
66.808 |
76.889 |
46.248 |
|
(b) Trade payables |
75.120 |
63.604 |
64.063 |
|
(c) Other current liabilities |
19.798 |
14.642 |
13.862 |
|
(d) Short-term provisions |
23.805 |
27.393 |
12.394 |
|
Total
Current Liabilities (4) |
185.531 |
182.528 |
136.567 |
|
|
|
|
|
|
TOTAL |
341.978 |
351.469 |
317.784 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
93.911 |
102.593 |
91.959 |
|
(ii) Intangible Assets |
0.978 |
1.326 |
0.106 |
|
(iii) Capital work-in-progress |
7.940 |
0.130 |
1.778 |
|
(iv) Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
0.000 |
0.000 |
0.000 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan
and Advances |
2.302 |
6.259 |
3.292 |
|
(e) Other Non-current assets |
0.090 |
0.359 |
0.628 |
|
Total
Non-Current Assets |
105.221 |
110.667 |
97.763 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
57.386 |
38.367 |
40.150 |
|
(c) Trade receivables |
147.326 |
180.347 |
149.885 |
|
(d) Cash and cash equivalents |
3.763 |
2.966 |
6.762 |
|
(e) Short-term loans and advances |
28.013 |
18.853 |
22.955 |
|
(f) Other current assets |
0.269 |
0.269 |
0.269 |
|
Total
Current Assets |
236.757 |
240.802 |
220.021 |
|
|
|
|
|
|
TOTAL |
341.978 |
351.469 |
317.784 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
Income |
503.444 |
562.393 |
523.445 |
|
|
|
Other Income |
0.620 |
4.778 |
6.072 |
|
|
|
TOTAL (A) |
504.064 |
567.171 |
529.517 |
|
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
Cost of Materials Consumed |
357.754 |
376.657 |
351.769 |
|
|
|
Changes in inventories of finished goods, work-in-progress and
Stock-in-Trade |
(9.003) |
0.993 |
(1.482) |
|
|
|
Employees benefits expense |
49.693 |
56.154 |
46.238 |
|
|
|
Exceptional Item |
0.000 |
21.400 |
0.000 |
|
|
|
Other expenses |
86.613 |
89.149 |
76.198 |
|
|
|
TOTAL (B) |
485.057 |
544.353 |
472.723 |
|
|
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (C) |
19.007 |
22.818 |
56.794 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
11.243 |
9.841 |
8.639 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
7.764 |
12.977 |
48.155 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
17.250 |
14.535 |
10.667 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX (E-F) (G) |
(9.486) |
(1.558) |
37.488 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
0.300 |
7.535 |
13.152 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX (G-I)
(J) |
(9.786) |
(9.093) |
24.336 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
85.694 |
94.786 |
82.512 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
0.000 |
0.000 |
1.825 |
|
|
|
Dividend |
0.000 |
0.000 |
8.808 |
|
|
|
Income tax on distributed profit |
0.000 |
0.000 |
1.429 |
|
|
BALANCE CARRIED
TO THE B/S |
75.908 |
85.694 |
94.786 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB value of exports |
43.054 |
45.212 |
30.190 |
|
|
TOTAL EARNINGS |
43.054 |
45.212 |
30.190 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
66.356 |
76.117 |
82.632 |
|
|
|
Components and Spares |
0.000 |
0.477 |
0.937 |
|
|
|
Capital Goods |
-- |
-- |
0.643 |
|
|
TOTAL IMPORTS |
66.356 |
76.594 |
84.212 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
(2.22) |
(2.06) |
5.50 |
|
|
Particulars |
|
|
31.03.2014 |
|
Sales Turnover (Approximately) |
|
|
660.000 |
|
|
|
|
|
Expected Sales (2014-15) : Rs. 720.000 Million
The above information has been parted by Mr. Ravi Girisagar
KEY RATIO
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
(1.94)
|
(1.61) |
4.65 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(1.88)
|
(0.28) |
7.16 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(2.84)
|
(0.45) |
11.86 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.06)
|
(0.01) |
0.23 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.49
|
0.54 |
0.34 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.28
|
1.32 |
1.61 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR
in Mlns.) |
(INR
in Mlns.) |
(INR
in Mlns.) |
|
Share Capital |
44.040 |
44.139 |
44.139 |
|
Reserves & Surplus |
120.691 |
111.969 |
102.183 |
|
Net
worth |
164.731 |
156.108 |
146.322 |
|
|
|
|
|
|
long-term borrowings |
9.386 |
7.482 |
5.725 |
|
Short term borrowings |
46.248 |
76.889 |
66.808 |
|
Total
borrowings |
55.634 |
84.371 |
72.533 |
|
Debt/Equity
ratio |
0.338 |
0.540 |
0.496 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR
in Mlns) |
(INR
in Mlns) |
(INR
in Mlns) |
|
Sales |
523.445 |
562.393 |
503.444 |
|
|
|
7.441 |
(10.482) |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR
in Mlns) |
(INR
in Mlns) |
(INR
in Mlns) |
|
Sales |
523.445 |
562.393 |
503.444 |
|
Profit |
24.336 |
(9.093) |
(9.786) |
|
|
4.65% |
(1.62%) |
(1.94%) |
LOCAL AGENCY FURTHER INFORMATION
CURRENT MATURITIES
OF LONG TERM DEBTS
|
Particulars |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
31.03.2011 (Rs.
In Millions) |
|
Current maturities of long-term debt |
|
|
|
|
Term loans–from banks–Secured |
|
|
|
|
(i) Secured by hypothecation of vehicles purchased out of the said
loan |
1.020 |
1.028 |
1.302 |
|
(ii) Secured by hypothecation of Equipments purchased out of the said
loan |
2.582 |
2.601 |
2.221 |
|
From other parties–Secured |
|
|
|
|
Secured by hypothecation of vehicles purchased out of the said loan |
-- |
0.023 |
0.127 |
|
Interest accrued but not due on borrowings |
1.106 |
0.629 |
0.082 |
|
Unclaimed dividends # |
1.189 |
1.352 |
1.245 |
|
Other payables |
|
|
|
|
Advances from customers |
5.246 |
0.523 |
2.053 |
|
Payables on purchase of fixed assets |
1.548 |
1.697 |
1.079 |
|
Statutory and other dues |
5.183 |
5.211 |
5.752 |
|
Other dues |
1.923 |
1.578 |
0.000 |
|
|
|
|
|
|
Total |
19.797
|
14.642 |
13.861 |
# there is no amounts which are due and payable to the Investor
Education and Protection Fund.
|
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 |
Yes |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
No |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
Yes |
|
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 |
|||||||
|
Bench:- Bombay |
|||||||
|
Lodging No. : |
OLRL/315/2014 |
Failing Date:- |
03/09/2014 |
Reg. No :- |
OLR/315/2014 |
Reg. Date :- |
03/09/2014 |
|
|
|||||||
|
Petitioner:- |
THE OFFICIAL LIQUIDATOR HIGH COURT E |
Respondent:- |
MAHINDRA COMPOSITES LIMITED |
||||
|
Petn.Adv:- |
THE OFFICIAL LIQUIDATOR |
Resp. Adv.: |
0 (0) |
||||
|
District:- |
MUMBAI |
||||||
|
|
|||||||
|
Bench:- |
SINGLE |
Category:- |
AMALGAMATION (SCHEME) u/s 391 to 395 |
||||
|
Status:- |
Pre-Admission |
Stage:- |
OLR FOR APPOINTMENT FOR C.A. |
||||
|
Last Date:- |
05/09/2014 |
|
|||||
|
Last Coram:- |
HON’BLE SHRI JUSTICE S.J. KATHAWALLA |
||||||
|
|
|
||||||
|
Act. : |
Income Tax Act,1956 |
|
|||||
UNSECURED LOANS
|
PARTICULAR |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
|
SHORT TERM
BORROWINGS |
|
|
|
From other than related parties |
|
|
|
Inter corporate deposit |
50.000 |
25.000 |
|
|
|
|
|
Total |
50.000 |
25.000 |
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge Creation/Modification
|
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10464740 |
20/11/2013 |
20,000,000.00 |
HDFC BANK LIMITED |
HDFC Bank Housesenapati Bapat Marg, Lower Parel West, Mumbai- 400013, Maharashtra,
India |
B91361451 |
|
2 |
10254503 |
27/11/2010 |
65,000,000.00 |
HDFC BANK LIMITED |
HDFC Bank Housesenapati Bapat Marg, Lower Parel West, Mumbai- 400013,
Maharashtra, India |
B01148154 |
|
3 |
10220915 |
12/05/2010 |
12,500,000.00 |
THE KARUR VYSYA BANK LTD |
Building No. 5, Bakre Apartments, Near Shivaji Chowk, Kothrud, Pune,
Maharashtra - 411038, India |
A86659471 |
|
4 |
90088819 |
03/09/2010 * |
50,000,000.00 |
CITIBANK N. A. |
2413 Kumar Capital, East Street, Pune-
411001, Maharashtra, INDIA |
A95293221 |
* Date of charge modification
OPERATIONS:
Sales of the
Company were lower by 11% in F13. The continued slowdown in Construction,
Engineering, Infrastructure, Automobile, Electrical Switchgear industries
impacted both the compound and component sales.
Company produces SMC/DMC compounds and sells them to Electrical
Switchgear OEMs and their moulding vendors. The Company itself moulds a portion
of these compounds to produce automotive components and own products like
‘Electra’ and ‘Sarovar’. Component business was down by 19% and the compound
business by 6%. However Company could retain the overall market share in the
business.
Though the
component business was significantly lower than the previous year, Electra
received better orders and as a result its sales grew by 16%. Last year’s
investment to increase product range is giving results. However some of the
orders received have been postponed to next year due to slow movement in
infrastructural development in the country. Electra is being used in 8 states
and is reaching the mark of 300,000 units sold.
Company has
launched new product, SMC Panel Water Tank with brand name ‘Sarovar’ on Mahindra
Group’s founder day 2nd October, 2012. During Q4, they bagged substantial
orders which will fructify into sales next year.
Rising input cost
and rupee depreciation continue to reduce margins. Although initiatives of
using alternative materials and sources resulted in limiting this impact,
reduced volumes in market did not allow passing on all the cost increase to
customers. The precision dispensing system has been commissioned for reducing
waste and increasing consistency of product performance.
The Company has
emphasized sustainability and both the plants have been certified for ISO 14001
and OHSAS 18001. This is helping to control wastages.
SCHEME OF
AMALGAMATION:
As a part of
Mahindra Group Strategy to consolidate the auto components business and
formation of global alliance with CIE Automotive, Spain, the Board of Directors
of the Company at their meeting held on June 15, 2013, duly considering the
recommendation of the Audit Committee and subject to regulatory approvals, have
approved a Scheme of Amalgamation under Section 391 to 394 of the Companies
Act, 1956, involving the Company, the Mahindra Forgings Limited
("Transferee Company"), with effect from 1st October,
2013.("The Scheme").
The Scheme is the
second step in the formation of the global alliance and will be filed post the
completions of the conditions precedents to the relevant agreements and the
closing of the share transfer of three companies viz. Mahindra Forgings
Limited, Mahindra Hinoday Industries Limited and Mahindra Composites Limited by
Mahindra and Mahindra Limited to CIE Group. The Scheme once filed will be
subject to the requisite approvals. M/s. N M Raiji and Company, Chartered
Accountants and M/s. S R Batliboi and Company LLP have recommended a share
exchange ratio of 90 Equity shares of Rs.10/- each in Mahindra Forgings Limited
for every 100 Equity shares of Rs.10/- each held by the shareholders of
Mahindra Composites Limited. SBI Capital Markets, Merchant Bankers have
provided the fairness opinion on the share exchange ratio.
MANAGEMENT
DISCUSSION AND ANALYSIS
OVERVIEW
Subject is one of
India's leading players in the field of composites supplying SMC/DMC compounds
and components to the electrical switchgear, power distribution, automotive and
medical equipment industry. MCL operates out of two plants, one at Mangaon,
Dist. Raigad and the other in Pimpri, Pune. The plant at Mangaon has a capacity
of 15000 MT of SMC/DMC compound manufacturing. The SMC/DMC component
manufacturing plant at the same location has 6 compression moulding presses
ranging from 100 MT to 500 MT capacities. There are also 3 RTM stations and
hand-lay-up setup to manufacture components. The plant at Pimpri houses
additional 6 compression moulding presses along with an innovation lab which
focuses on product concept, design and engineering.
They sell SMC/DMC
compounds to electrical switchgear OEMs like L and T, Schneider, Legrand,
Siemens and ABB etc. who in turn sell switchgears largely to the construction
industry. The electrical switchgear industry is the key end user of the
company’s products and accounts for almost 70% of MCL’s revenue.
They sell moulded
components to the power distribution industry, under the brand name ‘Electra’.
They sell moulded
body parts with and without painting to Auto and Tractor OEMs. The component
business for both the electrical and automotive market has been developed in
the last few years.
INDUSTRY OUTLOOK
F13 saw a slow
down as it was in F12 in the Electrical Switch Gear Industry influenced mainly
by the slowdown in the Construction Industry and new industrial projects
getting stalled or postponed. This phenomenon is expected to reduce growth of
the domestic switchgear market in the coming years. The sales of leading
electrical switchgear OEMs have also been impacted. There is also increasing
competition in this market with the entry of new manufacturers of SMC/DMC
compounds with the latest manufacturing know-how.
The power
distribution market remained flat during the year. Consequently, the implementation
of power infrastructure projects is slowing down.
The automotive
market is accepting new applications of composites products but as an industry
it also slowing down resulting in postponement of development and new launches
by OEMs.
PERFORMANCE
Due to slowdown in
our target industries (electrical switchgear, power distribution and automotive
industries) our compound and component volumes were low as compared to F12.
However, Company has retained overall market share in-spite of increased
competition. They have launched new product panelled water tank named “Sarovar”
in Indian market and bagged good orders for F14.
OUTLOOK F-14
The Company has
taken up a modest target for growth.
Electrical Switch
Gear OEMs have predicted almost flat sales as F13 and they will focus on
optimising profitability in this segment. However there are new entrants in
this market whom MCL had approached for product approvals and successfully
obtained and it will ensure that there is growth in the medium term.
In F14 we will
ensure that the “Electra”
orders in hand are pushed to the market in the power distribution segment. The
“Channel Partner” network to sale “Sarovar” will be increased to cover the
sales in country and significant revenue will be added during F14.Given the
current and expected slowdown in the approval of infrastructure projects, the
GRP Pipe Project was put on hold and as a matter of abundant precaution the
expected expenses as a result of holding of a project were already provided for
in F12. Since there is no change in market situation, they will continue with
our decision.
FIXED ASSETS
·
Leasehold Land
·
Improvements to Leasehold
Premises
·
Buildings
·
Plant and Machinery
·
Furniture and Fixture
·
Vehicles
·
Office equipment
·
Computers
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No 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.60.82 |
|
|
1 |
Rs.98.14 |
|
Euro |
1 |
Rs.78.65 |
INFORMATION DETAILS
|
Information
Gathered by : |
DIP |
|
|
|
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
ART |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
-- |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
42 |
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.