MIRA INFORM REPORT
|
Report No. : |
304444 |
|
Report Date : |
23.01.2015 |
IDENTIFICATION DETAILS
|
Name : |
MAHINDRA AND MAHINDRA FINANCIAL SERVICES LIMITED |
|
|
|
|
Registered
Office : |
Gateway Building, Apollo Bunder, Mumbai - 400001, Maharashtra |
|
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|
Country : |
India |
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|
|
Financials (as
on) : |
31.03.2014 |
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|
Date of
Incorporation : |
01.01.1993 |
|
|
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|
Com. Reg. No.: |
11-059642 |
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|
|
Capital Investment
/ Paid-up Capital : |
Rs. 1137.530 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L65921MH1991PLC059642 |
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|
|
IEC No.: |
Not Available |
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|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
Not Available |
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PAN No.: [Permanent Account No.] |
Not Available |
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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
: |
Subject is engaged in providing finance for new and pre-owned auto and utility vehicles, tractors, cars and commercial vehicles. |
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|
No. of Employees
: |
Information declined by the management. |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (79) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
Status : |
Excellent |
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|
Payment Behaviour : |
Regular |
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Litigation : |
Exist |
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Comments : |
Subject is a subsidiary of Mahindra and Mahindra Limited. It is a
established company having excellent track record. Trade relations are fair. Business is active. Payment terms are
reported as regular and as per commitments. In view of strong percentage, the company can be considered good 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.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Proposed non convertible debenture issue = AAA |
|
Rating Explanation |
Highest degree of safety and lowest credit risk. |
|
Date |
December 24, 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
|
Name : |
Mr. Rodricks |
|
Designation : |
Account Manager |
|
Contact No.: |
91-22-24901441 |
|
Date : |
20.01.2015 |
LOCATIONS
|
Registered Office : |
Gateway Building, Apollo Bunder, Mumbai - 400001, Maharashtra, India |
|
Tel. No.: |
Not Available |
|
Fax No.: |
Not Available |
|
E-Mail : |
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|
Website : |
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|
|
|
Corporate Office : |
Mahindra Towers, 4th Floor, Dr. G.M. Bhosale Marg, P.K. Kurne
Chowk, Worli, Mumbai – 400018, Maharashtra, India |
|
Tel. No.: |
91-22-66526000 |
|
Fax No.: |
91-22-24984170/71 |
DIRECTORS
AS ON 31.03.2014
|
Name : |
Bharat Doshi |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Uday Y. Phadke |
|
Designation : |
Director |
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|
Name : |
Pawan Goenka |
|
Designation : |
Director |
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|
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|
Name : |
Dhananjay Mungale |
|
Designation : |
Director |
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|
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|
Name : |
M. G. Bhide |
|
Designation : |
Director |
|
|
|
|
Name : |
Piyush Mankad |
|
Designation : |
Director |
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|
|
|
Name : |
Rama Bijapurkar |
|
Designation : |
Director |
|
|
|
|
Name : |
Ramesh Iyer |
|
Designation : |
Managing Director |
KEY EXECUTIVES
|
Name : |
V. Ravi |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Arnavaz M. Pardiwala |
|
Designation : |
Company Secretary |
SHAREHOLDING PATTERN
AS ON 31.12.2014
|
Category of
Shareholder |
No. of Shares |
% of Holdings |
|
(A) Shareholding
of Promoter and Promoter Group |
||
|
|
|
|
|
|
291207660 |
51.20 |
|
|
4798480 |
0.84 |
|
|
4798480 |
0.84 |
|
|
296006140 |
52.04 |
|
|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
296006140 |
52.04 |
|
(B) Public
Shareholding |
||
|
|
|
|
|
|
5006910 |
0.88 |
|
|
1906784 |
0.34 |
|
|
1855000 |
0.33 |
|
|
1133708 |
0.20 |
|
|
236719225 |
41.62 |
|
|
246621627 |
43.36 |
|
|
|
|
|
|
3515779 |
0.62 |
|
|
|
|
|
|
14002085 |
2.46 |
|
|
7555499 |
1.33 |
|
|
1063830 |
0.19 |
|
|
654439 |
0.12 |
|
|
7475 |
0.00 |
|
|
401916 |
0.07 |
|
|
26137193 |
4.60 |
|
Total Public
shareholding (B) |
272758820 |
47.96 |
|
Total (A)+(B) |
568764960 |
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) |
568764960 |
100.00 |
Shareholding of securities (including shares, warrants, convertible
securities) of persons belonging to the category Promoter and Promoter Group
|
Sl.No. |
Name of the
Shareholder |
Details of Shares held |
|
|
No. of Shares held |
As a % of grand total (A)+(B)+(C) |
||
|
1 |
Mahindra & Mahindra Ltd |
29,12,07,660 |
51.20 |
|
2 |
Ramesh Iyer & R Ravi Trustee - Mahindra & Mahindra Financial
Services Ltd Employees Stock Option Trust |
40,13,205 |
0.71 |
|
3 |
Ramesh Iyer & V Ravi - Trustees - Mahindra & Mahindra Financial
Services Ltd Employees Stock Option Trust |
7,85,275 |
0.14 |
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
|
Sl. No. |
Name of the
Shareholder |
No. of Shares held |
Shares as % of Total No. of Shares |
|
|
1 |
Cartica Capital Ltd |
44640747 |
7.85 |
|
|
2 |
Aranda Investment (Mauritius) Pvt Ltd |
19434290 |
3.42 |
|
|
3 |
Government of Singapore |
6408378 |
1.13 |
|
|
4 |
Franklin Templeton Investment Fund |
6321995 |
1.11 |
|
|
5 |
JP Morgan Sicav Investment Company (Mauritius) Ltd |
6156693 |
1.08 |
|
|
|
Total |
82962103 |
14.59 |
Shareholding of securities (including shares, warrants, convertible
securities) of persons (together with PAC) belonging to the category “Public”
and holding more than 5% of the total number of shares of the company
|
Sl. No. |
Name(s) of the
shareholder(s) and the Persons Acting in Concert (PAC) with them |
No. of Shares |
Shares as % of Total No. of Shares |
|
|
1 |
Cartica Capital Ltd |
44640747 |
7.85 |
|
|
|
Total |
44640747 |
7.85 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in providing finance for new and
pre-owned auto and utility vehicles, tractors, cars and commercial vehicles. |
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|
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|
Products : |
Not Available |
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Brand Names : |
Not Available |
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Agencies Held : |
Not Available |
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Exports : |
Not Divulged |
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Imports : |
Not Divulged |
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Terms : |
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Selling : |
Not Available |
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Purchasing : |
Not Available |
GENERAL INFORMATION
|
Suppliers : |
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Customers : |
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No. of Employees : |
Information declined by the management. |
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Bankers : |
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Facilities : |
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Auditors : |
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|
Name : |
B.K. Khare and Company Chartered Accountants |
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Address : |
706/708, Sharda Chambers, New Marine Lines, Mumbai – 400020,
Maharashtra, India |
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|
|
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Memberships : |
Not Available |
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|
|
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Collaborators : |
Not Available |
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|
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Holding Company: |
Mahindra and Mahindra Limited |
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Subsidiary Companies : |
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Joint Venture : |
Mahindra Finance USA, LLC |
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Fellow Subsidiaries Companies : |
|
CAPITAL STRUCTURE
AS ON 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
70,00,00,000 |
Equity Shares |
Rs. 2/- each |
Rs. 1400.000 Millions |
|
50,00,000 |
Equity Shares |
Rs. 100/- each |
Rs. 500.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs. 1900.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
56,87,64,960 |
Equity Shares |
Rs. 2/- each |
Rs. 1137.530
Millions |
|
|
Less: Shares issued to ESOS Trust but not allotted
to employees |
|
Rs. 10.480
Million |
|
|
(52,39,841 equity shares of Rs. 2/- each
[March 2013 : 57,44,785 equity shares of Rs. 2/- each]) |
|
|
|
|
Total |
|
Rs. 1127.050 Millions |
(A) Reconciliation of number of equity shares:
|
Particulars |
March 2014 |
|
|
No. of shares |
Rs. In Millions |
|
|
Balance at the beginning of the year |
56,87,64,960 |
1137.530 |
|
Add: Fresh allotment of shares / adjustment for sub-division of equity shares during the year : |
|
|
|
1) Private placement to Qualified Institutional Buyers (QIBs) through Qualified Institutional Placement (QIP) (Equity shares of face value Rs.10/- each) |
-- |
-- |
|
2) Addition on account of sub-division of
equity shares of Rs.10/- face value into equity shares of Rs.2/- face value |
-- |
-- |
|
Balance at the end of the year |
56,87,64,960 |
1137.530 |
(B) Number of equity shares held by holding company or ultimate holding
company including shares held by its
subsidiaries / associates:
|
Particulars |
March 2014 |
|
|
No. of Shares |
Rs. In Millions |
|
|
Holding company : Mahindra and Mahindra
Limited |
29,12,07,660 |
582.415 |
|
Percentage of holding (%) |
51.20 |
51.20 |
(C) Shareholders holding more than 5 percent shares:
|
Particulars |
March 2014 |
|
|
No. of Shares |
Rs. In Millions |
|
|
Mahindra and Mahindra Limited |
29,12,07,660 |
582.415 |
|
Percentage of holdings (%) |
51.20 |
51.20 |
(D) Terms / rights attached to equity shares
The Company has only one class of equity shares having a par value of Rs.2/- per share. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the board of directors and approved by the shareholders in the annual general meeting is paid in Indian rupees. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
(E) Shares issued to
ESOS Trust
The Guidance note issued by The Institute of Chartered Accountants of India on accounting for employee share-based payment requires that shares allotted to a trust but not transferred to the employees can be reduced from share capital and reserves. Accordingly, the company has reduced the share capital by Rs. 10.480 Millions (March 2013: Rs. 11.490 Millions), Securities premium reserve by Rs. 8.683 Millions (March 2013 : Rs. 11.270 Millions) in respect of 52,39,841 equity shares of face value of Rs. 2/- each (March 2013 : 57,44,785 equity shares of face value of Rs. 2/- each (March 2013 : 57,44,785 equity shares of face value of Rs. 2/- each) held by the trust as at the year end pending allotment of shares to eligible employees
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
1127.050 |
1126.040 |
1026.875 |
|
(b) Reserves & Surplus |
49815.110 |
43419.748 |
28483.231 |
|
(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) |
50942.160 |
44545.788 |
29510.106 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
169031.888 |
130153.269 |
92907.395 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long term
liabilities |
2764.182 |
2429.719 |
780.435 |
|
(d) long-term provisions |
3180.127 |
3103.895 |
3537.124 |
|
Total Non-current
Liabilities (3) |
174976.197 |
135686.883 |
97224.954 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
12442.836 |
13012.423 |
14491.351 |
|
(b) Trade payables |
4378.576 |
4788.432 |
3765.368 |
|
(c) Other
current liabilities |
64911.491 |
50372.146 |
36005.968 |
|
(d) Short-term
provisions |
9005.968 |
6518.498 |
4617.835 |
|
Total Current
Liabilities (4) |
90738.871 |
74691.499 |
58880.522 |
|
|
|
|
|
|
TOTAL |
316657.228 |
254924.170 |
185615.582 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
1143.625 |
1040.979 |
961.447 |
|
(ii)
Intangible Assets |
49.410 |
15.032 |
9.511 |
|
(iii)
Capital work-in-progress |
2.299 |
11.757 |
18.272 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
5262.759 |
3451.143 |
2131.304 |
|
(c) Deferred tax assets (net) |
3150.664 |
2382.072 |
2012.103 |
|
(d) Long-term Loan and Advances |
157794.552 |
129197.898 |
92577.091 |
|
(e) Other
Non-current assets |
1359.300 |
1705.650 |
151.700 |
|
Total Non-Current
Assets |
168762.609 |
137804.531 |
97861.428 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
3428.913 |
2158.534 |
2893.755 |
|
(b)
Inventories |
0.000 |
0.000 |
0.000 |
|
(c) Trade
receivables |
143.536 |
98.130 |
76.840 |
|
(d) Cash
and cash equivalents |
5532.888 |
3454.275 |
2300.403 |
|
(e)
Short-term loans and advances |
138375.232 |
111186.038 |
82407.707 |
|
(f) Other
current assets |
414.050 |
222.662 |
75.449 |
|
Total
Current Assets |
147894.619 |
117119.639 |
87754.154 |
|
|
|
|
|
|
TOTAL |
316657.228 |
254924.170 |
185615.582 |
PROFIT & LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
49216.321 |
38567.215 |
27681.105 |
|
|
|
Other Income |
313.724 |
379.775 |
264.833 |
|
|
|
TOTAL (A) |
49530.045 |
38946.990 |
27945.938 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Loan provision and write offs |
5057.857 |
2833.434 |
1570.200 |
|
|
|
Employees benefits expenses |
2973.341 |
2234.020 |
1997.707 |
|
|
|
Other expenses |
5918.056 |
4963.286 |
3726.604 |
|
|
|
TOTAL (B) |
13949.254 |
10030.740 |
7294.511 |
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (A-B) (C) |
35580.791 |
28916.250 |
20651.427 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
21880.145 |
16187.650 |
11203.235 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
13700.646 |
12728.600 |
9448.192 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
242.962 |
222.433 |
195.632 |
|
|
|
|
|
|
|
|
|
Add |
EXCEPTIONAL
ITEMS |
0.000 |
285.821 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX |
13457.684 |
12791.988 |
9252.560 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
4585.409 |
3965.070 |
3051.393 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX |
8872.275 |
8826.918 |
6201.167 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
15.60 |
15.52 |
10.90 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
|
|
|
|
Net Profit Margin PAT / Sales |
(%) |
18.03
|
22.89 |
22.40 |
|
|
|
|
|
|
|
Operating Profit Margin (PBDIT/Sales) |
(%) |
72.29
|
74.98 |
74.60 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
4.37 |
5.14 |
5.10 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.26 |
0.29 |
0.31 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
3.56 |
3.21 |
3.64 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.63 |
1.57 |
1.49 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
1026.875 |
1126.040 |
1127.050 |
|
Reserves & Surplus |
28483.231 |
43419.748 |
49815.110 |
|
Net
worth |
29510.106 |
44545.788 |
50942.160 |
|
|
|
|
|
|
long-term borrowings |
92907.395 |
130153.269 |
169031.888 |
|
Short term borrowings |
14491.351 |
13012.423 |
12442.836 |
|
Total
borrowings |
107398.746 |
143165.692 |
181474.724 |
|
Debt/Equity
ratio |
3.639 |
3.214 |
3.562 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
27681.105 |
38567.215 |
49216.321 |
|
|
|
39.327 |
27.612 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
27681.105 |
38567.215 |
49216.321 |
|
Profit |
6201.167 |
8826.918 |
8872.275 |
|
|
22.40% |
22.89% |
18.03% |
LOCAL AGENCY FURTHER INFORMATION
CURRENT MATURITY
OF LONG TERM DEBT
(Rs.
In Millions)
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
|
Secured |
|
|
|
Non-convertible debentures |
18352.000 |
16784.000 |
|
Term loans from banks |
30633.848 |
23629.867 |
|
Foreign currency loans from banks |
1198.300 |
1080.957 |
|
Unsecured |
|
|
|
Unsecured bonds |
0.000 |
310.000 |
|
Loans and advances from related parties |
5.000 |
15.000 |
|
Fixed deposits |
7642.551 |
3737.762 |
|
Interest accrued but not due on borrowings |
2974.521 |
1422.710 |
|
Unclaimed dividends |
5.793 |
6.252 |
|
Deposits/ advances from ESOS trust |
164.704 |
172.860 |
|
Amount received in advance from ESOS trust |
19.163 |
22.760 |
|
Credit balance in current accounts with bank as per books |
724.204 |
943.067 |
|
Deferred subvention income |
262.337 |
185.543 |
|
Unrealized gain on loan transfers under securitization transactions |
1591.053 |
744.722 |
|
Cash profit on loan transfer under assignment transactions pending
recognition |
16.842 |
0.000 |
|
Insurance premium payable |
369.488 |
315.566 |
|
Payable under assignment/ securitization transactions |
615.750 |
759.056 |
|
Tax deducted at source |
233.320 |
152.883 |
|
Others |
102.617 |
89.141 |
|
Total |
64911.491 |
50372.146 |
|
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 |
No |
|
9] |
Name
of person contacted |
Yes |
|
10] |
Designation
of contact person |
Yes |
|
11] |
Turnover
of firm for last three years |
Yes |
|
12] |
Profitability
for last three years |
Yes |
|
13] |
Reasons
for variation <> 20% |
--------- |
|
14] |
Estimation
for coming financial year |
No |
|
15] |
Capital
in the business |
Yes |
|
16] |
Details
of sister concerns |
Yes |
|
17] |
Major
suppliers |
No |
|
18] |
Major
customers |
No |
|
19] |
Payments
terms |
No |
|
20] |
Export
/ Import details (if applicable) |
No |
|
21] |
Market
information |
--------- |
|
22] |
Litigations
that the firm / promoter involved in |
Yes |
|
23] |
Banking
Details |
Yes |
|
24] |
Banking
facility details |
Yes |
|
25] |
Conduct
of the banking account |
--------- |
|
26] |
Buyer
visit details |
--------- |
|
27] |
Financials,
if provided |
Yes |
|
28] |
Incorporation
details, if applicable |
Yes |
|
29] |
Last
accounts filed at ROC |
Yes |
|
30] |
Major
Shareholders, if available |
Yes |
|
31] |
Date
of Birth of Proprietor/Partner/Director, if available |
No |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter
ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External
Agency Rating, if available |
Yes |
LITIGATION DETAILS:
|
HIGH COURT OF
BOMBAY |
|
CASE DETAILS BENCH: BOMBAY |
|
Presentation
Date:- 09/05/2014 |
|
|
|
|
|
FINANACIAL SERVICES LIMITED Petn. Adv : SINGH SARVANAD R (I6053) District: MUMBAI |
|
Status: PRE-ADMISSION
Last Date: 27/10/2014 Stage:
FOR ORDERS (OFFICE OBJECTIONS) Last Coram: REGISTRAR (JUDICIAL II [FA]) |
|
Act: Motor Vehicles Act, 1939 |
OPERATIONS
The overall disbursement registered a growth of 6.6% at Rs. 254000.000 Millions as compared to Rs. 238386.000 Millions in the previous year. The Company during the year, continued to provide a wide range of financial products and services to its customers through diversification of its product portfolio within its vehicle financing business as well as through the introduction and growth of other financial products in rural and semi-urban markets. Despite moderate growth in disbursement, your Company was able to retain its leadership position in financing Mahindra range of vehicles and tractors in addition to extending its lending to vehicles of other Original Equipment Manufacturers (OEMs)
MANAGEMENT DISCUSSION
AND ANALYSIS
GLOBAL ECONOMY
The global economy witnessed sluggish trade and low investment activity, resulting in a growth of 3% in the financial year 2013-14. Economic uncertainties weighed heavily on market sentiments worldwide. There was continued weakness in the Euro zone and sluggish growth in India and China, along with the dilemma over withdrawal of the US fiscal stimulus. Speculation about the withdrawal of quantitative easing in the US led to capital flight and currency depreciation, hurting developing countries in their financial markets.
The outlook for 2014-15 is more positive as businesses and consumer sentiments have both revived in a changing environment. The European markets have firmed up while China is expected to be a turning point in the financial year 2014-15, shifting from a period of rapid economic development to a stable growth phase of around 7.5%. (Source: IMF World Economic Outlook)
INDIAN ECONOMY
The Indian economy grew at a rate of 4.7% during the financial year 2013-14. Containment of the fiscal and current account deficits in the coming months will provide a cushion to the Indian economy from further volatility. Inflation expectations have moderated and retail inflation stands at 8.31% in March 2014. (Source: CSO data). More than Rs. 60 billion has been allocated to rural housing in the Interim Budget for the financial year 2014-15. Interest subsidies for rural housing are also expected to bolster rural housing demand in the financial year 2014-15. (Source: Interim Budget 2014-15)
The Cabinet Committee on Investment (CCI) and the Project Monitoring Group (PMG) have cleared 296 projects at an estimated project cost of Rs. 6.6 trillion. As at end of March 2014 around 284 projects worth Rs. 15.6 trillion are under the consideration of the PMG. The recovery is likely to be supported by increased investment activity due to execution of stalled projects backed by business and consumer optimism. (Source: RBI Review)
The Manufacturing Purchasing Managers Index (PMI) has registered an increase on account of higher output and new orders in the last quarter of the financial year 2013-14. The rural demand base is likely to accelerate and external demand is expected to improve further during the financial year 2014-15, given the increase in global trade. Better exports, lower inflation and project clearances will translate into higher investments leading to an improved business environment in the coming years.
COMPANY OVERVIEW
BUSINESS OVERVIEW
At Mahindra & Mahindra Financial Services Limited (‘MMFSL’ or ‘Mahindra Finance’ or ‘the Company’), we strongly believe in building a strong financial community. Our ethos and promise of true financial inclusion in the country makes us one of India’s prime NBFCs. We operate across terrains and geographies in our country, covering even the remotest part of rural India. We continue to provide ‘credit with confidence’ to people who do not have access to organised financial services. Having started our journey way back in 1993, as a subsidiary of the renowned Indian tractor and utility vehicle manufacturer Mahindra & Mahindra Limited, today MMFSL has a come a long way.
OPERATIONAL REVIEW
The key operational highlights during the year are as below –
- Income from operations increased to Rs. 49530.000 Millions from Rs. 38947.000 Millions in 2012-13, with an increase of 27%.
- Assets Under Management (AUM) grew to Rs. 341330.600 Millions from Rs. 279131.300 Millions in 2012-13, with an increase of 22%.
- Assets financed grew to Rs. 254000.200 Millions from Rs. 238385.800 Millions in 2012-13, with a modest increase of 7%.
- The customer base crossed a record 3 million people, reaching 31,19,034 from 25,57,172 in 2012-13, an increase of 22%.
- We strengthened our branch network to 893 from 657 in 2012-13, a record 36% increase.
- We also increased our people base to 12,816 from 11,270 in 2012-13, an increase of 14%.
- Gross NPA was affected as it increased to 4% from 3% in 2012-13.
OUTLOOK
Rural India accounts for atleast 50% of India’s gross domestic product (GDP) comprising atleast 70% of the country’s population. With more than 6.5 lac villages in the country, the rural India comprises a mix of rising incomes and growing aspirations. The changing consumption habits of the people in rural regions today resembles to those of the urban areas. Brands and premium products are no longer a dream, but an aspiration for people of the region. The change in the country’s government is expected to usher in significant reforms in policies, which will result in growth of several downstream industries that we address. Going deeper across the country’s unbanked regions, we at MMFSL are optimistic that we would continue to address a wider customer base through our extensive operational network. We shall continue to increase our loan book and monitor our margins to ensure sustainable stakeholder returns
STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS
FOR THE QUARTER ENDED 31ST DECEMBER 2014
(Rs. in millions)
|
Sr. No. |
Particulars |
3 months ended 31.12.2014 (Unaudited) |
3 months ended 30.09.2014 (Unaudited) |
9 months Ended 31.12.2014 (Unaudited) |
|
Part I |
|
|
|
|
|
1. |
Income from
Operations |
13865.543 |
13536.704 |
40153.520 |
|
|
Total
Income from Operations (net) |
13865.543 |
13536.704 |
40153.520 |
|
2. |
Expenditure |
|
|
|
|
|
(a) Employees benefits expenses |
1183.425 |
1174.189 |
3441.804 |
|
|
(b) Depreciation and amortization expenses |
100.285 |
100.775 |
312.632 |
|
|
(c) Loan
provision and write off |
2690.761 |
1841.608 |
6781.890 |
|
|
(d) Other expenses |
1422.464 |
1246.489 |
3742.507 |
|
|
Total Expenses |
5396.935 |
4363.061 |
14278.833 |
|
3. |
Profit from Operations
before Other Income and Finance Costs (1-2) |
8468.608 |
9173.643 |
25874.687 |
|
4. |
Other Income |
89.643 |
152.075 |
320.306 |
|
5. |
Profit
before finance costs (3+4) |
8558.251 |
9325.718 |
26194.993 |
|
6. |
Finance Costs |
6477.968 |
6167.585 |
18594.698 |
|
7. |
Profit/(Loss)
from ordinary activity before tax (5-6) |
2080.283 |
3158.133 |
7600.295 |
|
8. |
Tax Expenses |
716.186 |
1087.203 |
2616.489 |
|
9. |
Net profit after tax for the period (7-8) |
1364.097 |
2070.930 |
4983.806 |
|
10. |
Minority
interest |
-- |
-- |
-- |
|
11. |
Net
profit after taxes and minority interest (9-10) |
1364.097 |
2070.930 |
4983.806 |
|
12. |
Paid-up equity
share capital (face value of Rs. 2/-each) |
|
|
|
|
13. |
Reserves |
|
|
|
|
14. |
Earnings per
share (Face value of Rs. 10/- each) -
Basic – in Rs. -
Diluted – in Rs. |
2.42 2.40 |
3.67 3.64 |
8.84 8.76 |
|
Part II |
|
|
|
|
|
A. |
PARTICULARS OF SHAREHOLDING |
|
|
|
|
|
Public
Shareholding |
|
|
|
|
|
- Number of Shares |
272758820 |
272679771 |
272758820 |
|
|
- Percentage of Shareholding |
47.96% |
47.94% |
47.96% |
|
|
Promoters and Promoter
Group Shareholding |
|
|
|
|
|
a)
Pledged/Encumbered |
|
|
|
|
|
- Number of Shares |
-- |
-- |
-- |
|
|
- Percentage of Shares (as a % of the Total Shareholding of promoter
and promoter group) |
-- |
-- |
-- |
|
|
- Percentage of Shares (as a % of the Total Share Capital of the
Company) |
-- |
-- |
-- |
|
|
b) Non
Encumbered |
|
|
|
|
|
- Number of Shares |
296006140 |
296085189 |
29606140 |
|
|
- Percentage of Shares (as a % of the Total Shareholding of Promoter
and Promoter Group) |
100.00% |
100.00% |
100.00% |
|
|
- Percentage of Shares (as a % of the Total Share Capital of the
Company) |
52.04% |
52.06% |
52.04% |
|
PARTICULARS |
For the quarter ended 31st December
2014 |
|
B INVESTORS COMPLAINTS |
|
|
Pending at the beginning of the quarter |
Nil |
|
Received during the quarter |
4 |
|
Disposed during the quarter |
4 |
|
Remaining unresolved at the end of the quarter |
Nil |
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number (SRN) |
|
1 |
10536152 |
27/11/2014 |
30,000,000,000.00 |
Axis Trustee Services Limited |
Axis House, 2nd
Flr, Bombay Dyeing Mills Compound, Maharashtra - 400025, INDIA |
C36127868 |
|
2 |
10532927 |
31/10/2014 |
1,550,000,000.00 |
Barclays Bank PLC |
First Floor, Eros Corporate Tower, Nehru Place, New Delhi, Delhi - 110019, INDIA |
C34660993 |
|
3 |
10526767 |
30/09/2014 |
5,000,000,000.00 |
Punjab National Bank |
BO Shivaji Park Branch, Gopi Tank Road,, Behind Citilite Cinema, Mahim,, Mumbai, Maharashtra - 400016, INDIA |
C30369805 |
|
4 |
10525325 |
07/11/2014 * |
1,800,000,000.00 |
Axis Trustee Services Limited |
Axis House, 2nd Flr,
Bombay Dyeing Mills Compound, Maharashtra - 400025, INDIA |
C32568131 |
|
5 |
10526104 |
29/09/2014 |
2,500,000,000.00 |
HDFC BANK LIMITED |
HDFC Bank House,, Lower Parel,, Mumbai, Maharashtra - 400018, INDIA |
C29822780 |
|
6 |
10526358 |
25/09/2014 |
2,000,000,000.00 |
DENA BANK |
Corporate Business
Branch, C-10, G Block, Bandra Maharashtra - 400051, INDIA |
C30015895 |
|
7 |
10508276 |
27/06/2014 |
2,000,000,000.00 |
Punjab and Sind Bank |
Large Corporate
Bank, J K Somani Building,, British Hotel Lane, Fort, Mumbai, Maharashtra -
400023, |
C10737435 |
|
8 |
10509526 |
27/06/2014 |
2,000,000,000.00 |
Andhra Bank |
Specialized Corporate
Finance Branch,16th Floor,, INDIA |
C11687548 |
|
9 |
10500649 |
24/03/2014 |
2,000,000,000.00 |
Indian Bank |
United India Building,, Sir P.M. Road,Fort, Mumbai, Maharashtra - 400001, INDIA |
C05404496 |
|
10 |
10487212 |
14/03/2014 |
1,750,000,000.00 |
Deutsche Bank |
New Delhi Branch, 4h Floor,, DLF Square, Jacaranda Marg, DLF Phase II, Gurgaon, Haryana - 122002, INDIA |
C01226489 |
* Date of charge modification
UNSECURED LOANS
|
PARTICULAR |
31.03.2014 (Rs.
in Millions) |
31.03.2013 (Rs.
in Millions) |
|
LONG TERM
BORROWINGS |
|
|
|
Unsecured bonds |
7941.000 |
5941.000 |
|
Term loan from banks |
1000.000 |
0.000 |
|
Loans and advances from related parties |
72.500 |
77.500 |
|
Fixed deposits |
27786.314 |
19205.319 |
|
SHORT TERM
BORROWINGS |
|
|
|
Loans from banks : Term loans Overdraft facilities |
220.000 0.000 |
0.000 201.979 |
|
Loans and advances from related parties |
356.500 |
421.500 |
|
Fixed deposits |
593.115 |
336.241 |
|
Commercial papers |
0.000 |
500.000 |
|
Total |
37969.429 |
26194.539 |
FIXED ASSETS
- Premises
- Computers
- Furniture and
Fixture
- Vehicles
- Office
Equipments
- Computer
Software
PRESS RELEASE
MANHINDRA AND
MAHINDRA FINANCIAL SERVICES NET DROP 14%
Loan Provision and Write offs Rose 51%
Year-On-Year to Rs. 2760.000 Million
Mahindra and Mahindra
Financial Services, a subsidiary of Mahindra and Mahindra has posted a 14%
decline in consolidated net profit to Rs. 1570.000 Millions in quarter ended
December 31 due to higher loan provision and write offs.
The loan
provisions and write offs rose 51% year-on-year to Rs. 2760.000 Millions while
the total income grew by 12% to Rs. 15220.000 Millions during the quarter.
“The overall rural
economy was on the low head and therefore, cash flows have been impacted or
delayed. We do believe that some of this could get corrected in the fourth
quarter once cash flows comes in from crop sales. But we believe it continues
to be pressuring as far as the overall activities are concerned at the rural
level. Their cash flow cycles are getting stretched and delayed. That impacts
the collections and the provisions and therefore profits get impacted,” said
Ramesh Iyer, managing director of the company.
On a standalone
basis the net profit declined 17% to Rs. 1360.000 Millions.
The gross
non-performing assets (NPA) to total assets stood at 7.1% as on December 31,
2014 compared with 4.8% a year ago while the net NPA to total assets was at
3.4% compared with 2.2% a year ago.
The provisioning
coverage ratio stood at 54.3% compared with 55.5% a year ago.
M AND M FINANCIAL SERVICES FALLS OVER 8% POST Q3 RESULTS; MS CUTS
TARGET PRICE
NEW DELHI: Mahindra and Mahindra Financial Services Limited
slipped as much as 8.3 percent in trade on Monday after its consolidated net
profit for the quarter ended December 2014, slipped 13.7 per cent to Rs 157
crore, weighed down by higher loan provisions and write offs.
At 10:10 a.m.; M and M Financial Services was trading 5.3
per cent lower at Rs 291.50. It hit a low of Rs 282.20 and a high of Rs 293.45
in trade today.
The loan provisions and write offs rose 51% year-on-year to Rs 276 crore while
the total income grew by 12% to Rs 15220.000 Millions during the quarter.
Asset quality deterioration was unabated in Q3FY15 and valuation still remain expensive - the NPA ratio is up 300bp to 7% in just five quarters. The outlook remains very uncertain and depends on rural economic recovery - unlikely to happen soon, say analysts.
Management attributed business weakness to multiple factors
- weak monsoon with little help from minimum support prices, sluggish rural
economic activity, weak vehicle resale prices and state-specific issues
Morgan Stanley remain 'underweight' on the stock, but
slashed its target price to Rs 250 from Rs 320 earlier, given weak outlook and
expensive valuation
Weak monsoon and cyclical pressures in the rural economy
have affected both AUM growth and asset quality. NPLs have risen sharply (from
4.1% to 7.1% in a span of 5 quarters), and AUM growth has slowed meaningfully,
said the report.
The timing of growth recovery for the rural economy remains uncertain, unlike
the urban economy, which has been gradually improving.
Morgan Stanley expects ROE to average 16% in F16-17 and 22% EPS CAGR in F15-17
after 2 years of 8% average decline. Valuation in this context at 2.8x F16e BV
and 19x P/E (2.4x and 16.6x adjusted for subsidiaries) is expensive.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 61.61 |
|
|
1 |
Rs. 93.49 |
|
Euro |
1 |
Rs. 71.37 |
INFORMATION DETAILS
|
Information Gathered
by : |
DIP |
|
|
|
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
JYO |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILITY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
79 |
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.