MIRA INFORM REPORT
|
Report No. : |
334207 |
|
Report Date : |
29.07.2015 |
IDENTIFICATION DETAILS
|
Name : |
|
|
|
|
|
Registered
Office : |
Gateway Building, Apollo Bunder, Mumbai – 400 001,
Maharashtra |
|
Tel No.: |
91-22-22021031 |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2015 |
|
|
|
|
Date of
Incorporation : |
02.10.1945 |
|
|
|
|
Com. Reg. No.: |
11-004558 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 2957.000
Million |
|
|
|
|
CIN No.: [Company Identification
No.] |
L65990MH1945PLC004558 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMM01692F |
|
|
|
|
PAN No.: [Permanent Account No.] |
Not Available |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturer of Light Commercial Vehicles, Agricultural Tractors,
Implements and Utility Vehicles. |
|
|
|
|
No. of Employees
: |
19,836 [Approximately] |
RATING
& COMMENTS
|
MIRA’s Rating : |
Aa (80) |
|
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 |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Exist |
|
|
|
|
Comments : |
Subject is a well-established and reputed company having fine track record. Mahindra and Mahindra Limited is a Public Company incorporated on 02 October 1945. It is classified as Indian Non-Government Company and is registered at Registrar of Companies, Mumbai. Subject is among the leading tractor manufacturers in the world and is the market leader in the UV segment in India. The Mahindra Group, through its subsidiaries and group companies, has a presence in varied sectors such as, information technology, financial services and vacation ownership. In addition, Mahindra enjoys a strong presence in the agribusiness, aerospace, components, consulting services, defense, energy, industrial equipment, logistics, real estate, retail, steel, commercial vehicles and two wheeler industries. Subject has strong financial risk profile marked by healthy liquidity position supported by strong net worth base, good profitability, sizeable cash balance and healthy debt coverage. These rating strengths are partially offset by subject's exposure to inherent cyclicality in tractor and auto segments, increasing competitive intensity in UV (Utility Vehicles) and LCV (Light Commercial Vehicles) segments. However, trade relations are fair. Business is active. Payments are reported to be regular and as per commitments. In view of good and long track record of operations, vast experience of the promoters and well qualified management, the company can be considered for business dealings at usual trade terms and conditions. |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Long term rating: AAA |
|
Rating Explanation |
Highest degree of safety and lowest credit risk. |
|
Date |
26.12.2014 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short term rating: A1+ |
|
Rating Explanation |
Very strong degree of safety and lowest credit risk. |
|
Date |
26.12.2014 |
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
31-03-2013.
INFORMATION DENIED
MANAGEMENT NON COOPERATIVE. (91-22-22021031/ 24901441)
LOCATIONS
|
Registered Office : |
|
|
Tel. No.: |
91-22-22021031 |
|
Fax No.: |
91-22-22028780 / 22875485 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Head Office : |
|
|
Tel No.: |
91-22-24931441 / 24961441 |
|
Fax No.: |
91-22-24975081 |
|
|
|
|
Factory : |
Akurli Road, Kandivali (East), Mumbai, Maharashtra, India |
|
Tel. No.: |
91-22-28849800 |
|
Fax No.: |
91-22-28468523 |
|
|
|
|
Factory : |
Also Located At:
|
|
|
|
|
Branch Office : |
Located At :
|
DIRECTORS
As on 31.03.2015
|
Name : |
Mr. Keshub Mahindra |
|
Designation : |
Chairman Emeritus |
|
|
|
|
Name : |
Mr. Anand G Mahindra |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Mr. Bharat Doshi |
|
Designation : |
Executive Director and Group Chief Financial Officer |
|
|
|
|
Name : |
Dr. Pawan Goenka |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Mr. Deepak S. Parekh |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Nadir B Godrej |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. M. M. Murugappan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. R. K. Kulkarni |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Anupam Puri |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. Vishakha N Desai |
|
Designation : |
Director |
|
Date of Appointment : |
30.05.2012 |
|
|
|
|
Name : |
Mr. Vikram Singh Mehta |
|
Designation : |
Director |
|
Date of Appointment : |
30.05.2012 |
|
|
|
|
Name : |
Mr. S. B. Mainak |
|
Designation : |
Nominee of Life Insurance Corporation of India |
KEY
EXECUTIVES
|
Name : |
Narayan Shankar |
|
Designation : |
Company Secretary |
|
|
|
|
Committees of The Board : |
Audit Committee :
Stakeholders
Relationship Committee
Governance,
Remuneration and Nomination Committee
Corporate Social
Responsibility Committee
Strategic
Investment Committee
Loan And Investment
Committee
Research and
Development Committee
Risk Management
Committee
|
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2015
|
Category of
Shareholder |
Total No. of
Shares |
Total Shareholding
as a % of total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
3998552 |
0.68 |
|
|
71128386 |
12.13 |
|
|
83235423 |
14.20 |
|
|
29369339 |
5.01 |
|
|
2030870 |
0.35 |
|
|
51835214 |
8.84 |
|
|
158362361 |
27.01 |
|
|
|
|
|
|
605772 |
0.10 |
|
|
605772 |
0.10 |
|
Total shareholding of Promoter and Promoter Group (A) |
158968133 |
27.11 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
16063222 |
2.74 |
|
|
1278448 |
0.22 |
|
|
742168 |
0.13 |
|
|
95813983 |
16.34 |
|
|
204925367 |
34.95 |
|
|
27006987 |
4.61 |
|
|
27006987 |
4.61 |
|
|
345830175 |
58.98 |
|
|
|
|
|
|
29759248 |
5.08 |
|
|
|
|
|
|
36639830 |
6.25 |
|
|
8794365 |
1.50 |
|
|
6325982 |
1.08 |
|
|
1934517 |
0.33 |
|
|
1607960 |
0.27 |
|
|
1782340 |
0.30 |
|
|
555701 |
0.09 |
|
|
444895 |
0.08 |
|
|
569 |
0.00 |
|
|
81519425 |
13.90 |
|
Total Public shareholding (B) |
427349600 |
72.89 |
|
Total (A)+(B) |
586317733 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
34774651 |
0.00 |
|
|
34774651 |
0.00 |
|
Total (A)+(B)+(C) |
621092384 |
0.00 |
Shareholding of securities (including shares, warrants,
convertible securities) of persons belonging to the category Promoter and
Promoter Group
|
Sl.No. |
Name of the
Shareholder |
No. of Shares held |
As a % of grand
total (A)+(B)+(C) |
No |
As a percentage |
As a % of |
Total shares
(including underlying shares assuming full conversion of warrants and
convertible securities) as a % of diluted share capital |
|
1 |
Keshub Mahindra |
3,73,644 |
0.06 |
0 |
0.00 |
0.00 |
0.06 |
|
2 |
Keshub Mahindra |
68,652 |
0.01 |
0 |
0.00 |
0.00 |
0.01 |
|
3 |
Anand Gopal Mahindra |
7,15,004 |
0.12 |
0 |
0.00 |
0.00 |
0.12 |
|
4 |
Anjali Mehra |
85,000 |
0.01 |
0 |
0.00 |
0.00 |
0.01 |
|
5 |
Anjali Kumari Mehra |
57,604 |
0.01 |
0 |
0.00 |
0.00 |
0.01 |
|
6 |
Anuja P Sharma |
34,259 |
0.01 |
0 |
0.00 |
0.00 |
0.01 |
|
7 |
Anuradha Mahindra |
2,28,545 |
0.04 |
0 |
0.00 |
0.00 |
0.04 |
|
8 |
Deveshwar Jagat Sharma |
12,000 |
0.00 |
0 |
0.00 |
0.00 |
0.00 |
|
9 |
Dhruv S Sharma |
12,000 |
0.00 |
0 |
0.00 |
0.00 |
0.00 |
|
10 |
Gautam P Khandelwal |
300 |
0.00 |
0 |
0.00 |
0.00 |
0.00 |
|
11 |
Leena S Labroo |
3,93,092 |
0.06 |
0 |
0.00 |
0.00 |
0.06 |
|
12 |
Leena S Labroo |
3,93,100 |
0.06 |
0 |
0.00 |
0.00 |
0.06 |
|
13 |
Radhika Nath |
46,808 |
0.01 |
0 |
0.00 |
0.00 |
0.01 |
|
14 |
Sanjay Labroo |
72,720 |
0.01 |
70000 |
96.26 |
0.01 |
0.01 |
|
15 |
Sudha K Mahindra |
71,164 |
0.01 |
0 |
0.00 |
0.00 |
0.01 |
|
16 |
Sudha K Mahindra |
1,07,728 |
0.02 |
0 |
0.00 |
0.00 |
0.02 |
|
17 |
Sudha K Mahindra |
1,60,000 |
0.03 |
0 |
0.00 |
0.00 |
0.03 |
|
18 |
Sudha K Mahindra |
1,73,792 |
0.03 |
0 |
0.00 |
0.00 |
0.03 |
|
19 |
Sudha Keshub Mahindra |
2,13,332 |
0.03 |
0 |
0.00 |
0.00 |
0.03 |
|
20 |
Uma R Malhotra |
2,59,932 |
0.04 |
0 |
0.00 |
0.00 |
0.04 |
|
21 |
Uma R Malhotra |
2,59,932 |
0.04 |
0 |
0.00 |
0.00 |
0.04 |
|
22 |
Uma R Malhotra |
2,59,944 |
0.04 |
0 |
0.00 |
0.00 |
0.04 |
|
23 |
Kema Services International Private Limited |
3,67,416 |
0.06 |
0 |
0.00 |
0.00 |
0.06 |
|
24 |
Prudential Management And Services Private Limited |
2,28,95,790 |
3.69 |
0 |
0.00 |
0.00 |
3.69 |
|
25 |
Prudential Management And Services Private Limited |
1,62,40,766 |
2.61 |
0 |
0.00 |
0.00 |
2.61 |
|
26 |
Prudential Management And Services Private Limited |
1,24,88,463 |
2.01 |
0 |
0.00 |
0.00 |
2.01 |
|
27 |
Prudential Management And Services Private Limited |
90,81,984 |
1.46 |
2475000 |
27.25 |
0.40 |
1.46 |
|
28 |
Prudential Management And Services Private Limited |
66,01,156 |
1.06 |
3810000 |
57.72 |
0.61 |
1.06 |
|
29 |
Prudential Management And Services Private Limited |
23,14,815 |
0.37 |
2314815 |
100.00 |
0.37 |
0.37 |
|
30 |
Prudential Management And Services Private Limited |
10,17,900 |
0.16 |
0 |
0.00 |
0.00 |
0.16 |
|
31 |
Prudential Management And Services Private Limited |
1,20,096 |
0.02 |
0 |
0.00 |
0.00 |
0.02 |
|
32 |
Anand Mahindra, Bharat Doshi, A.K. Nanda - Trustees, Mahindra And Mahindra Employees Stock Option Trust |
2,19,47,074 |
3.53 |
0 |
0.00 |
0.00 |
3.53 |
|
33 |
Anand Mahindra, Bharat Doshi, A.K. Nanda - Trustees, Mahindra And Mahindra Employees Stock Option Trust |
35,10,637 |
0.57 |
0 |
0.00 |
0.00 |
0.57 |
|
34 |
Anand Mahindra, Bharat Doshi, A.K. Nanda - Trustees, Mahindra And Mahindra Employees Stock Option Trust |
20,00,000 |
0.32 |
0 |
0.00 |
0.00 |
0.32 |
|
35 |
Anand Mahindra, Bharat Doshi, A.K. Nanda - Trustees, Mahindra And Mahindra Employees Stock Option Trust |
19,11,628 |
0.31 |
0 |
0.00 |
0.00 |
0.31 |
|
36 |
A M Choksey, M A Nazareth - Trustees - M And M Employees Welfare Fund |
12,63,156 |
0.20 |
0 |
0.00 |
0.00 |
0.20 |
|
37 |
A M Choksey, M A Nazareth - Trustees- M And M Farm Equipment Sector Employees Welfare Fund |
6,82,914 |
0.11 |
0 |
0.00 |
0.00 |
0.11 |
|
38 |
A M Choksey, M A Nazareth - Trustees - Msl Employees Welfare Fund |
84,800 |
0.01 |
0 |
0.00 |
0.00 |
0.01 |
|
39 |
Bharat N Doshi, A.K. Nanda - Trustees - M&M Benefit Trust |
5,18,35,214 |
8.35 |
0 |
0.00 |
0.00 |
8.35 |
|
40 |
Yuthica Keshub Mahindra |
6,05,772 |
0.10 |
0 |
0.00 |
0.00 |
0.10 |
|
|
Total |
15,89,68,133 |
25.59 |
8669815 |
5.45 |
1.40 |
25.59 |
(*) 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
|
Sl. No. |
Name of the
Shareholder |
No. of Shares held |
Shares as % of
Total No. of Shares |
Total shares
(including underlying shares assuming full conversion of warrants and convertible
securities) as a % of diluted share capital |
|
|
1 |
Life Insurance Corporation Of India |
78181359 |
12.59 |
12.59 |
|
|
2 |
Dodge And Cox International Stock Fund |
16522808 |
2.66 |
2.66 |
|
|
3 |
Aranda Investments (Mauritius) Pte Limited |
11915039 |
1.92 |
1.92 |
|
|
4 |
National Westminster Bank Plc As Depositary Of First State Asia Pacific Fund Of First State Investments Icvc Leaders Fund A Sub |
11607861 |
1.87 |
1.87 |
|
|
5 |
Government Of Singapore |
11504326 |
1.85 |
1.85 |
|
|
6 |
Icici Prudential Life Insurance Company Limited |
11482670 |
1.85 |
1.85 |
|
|
7 |
Europacific Growth Fund |
10840000 |
1.75 |
1.75 |
|
|
8 |
General Insurance Corporation Of India |
7935400 |
1.28 |
1.28 |
|
|
|
Total |
159989463 |
25.76 |
25.76 |
|
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 |
Total shares
(including underlying shares assuming full conversion of warrants and
convertible securities) as a % of diluted share capital |
|
|
1 |
Life Insurance Corporation Of India |
65922316 |
10.61 |
10.61 |
|
|
2 |
Lic Of India Money Plus Growth Fund |
4308643 |
0.69 |
0.69 |
|
|
3 |
Life Insurance Corporation Of India P & Gs Fund |
2593670 |
0.42 |
0.42 |
|
|
4 |
Lic Of India Market Plus Non Unit Fund |
1879600 |
0.30 |
0.30 |
|
|
5 |
Life Insurance Corporation Of India -Ulif004200910Licend+Grw512 |
999409 |
0.16 |
0.16 |
|
|
6 |
Lic Of India Samridhi Plus Fund |
849804 |
0.14 |
0.14 |
|
|
7 |
Lic Of India Wealth Plus Fund |
366568 |
0.06 |
0.06 |
|
|
8 |
Lic Of India Profit Plus Growth Fund |
246359 |
0.04 |
0.04 |
|
|
9 |
Lic Of India Profit Plus Non Unit Fund |
161155 |
0.03 |
0.03 |
|
|
10 |
Lic Of India Market Plus Growth Fund |
160612 |
0.03 |
0.03 |
|
|
11 |
Lic Of India Future Plus Growth Fund |
137188 |
0.02 |
0.02 |
|
|
12 |
Lic Of India Jeevan Plus Non Unit Fund |
102000 |
0.02 |
0.02 |
|
|
13 |
Lic Of India Pension Plus Mixed Fund |
82000 |
0.01 |
0.01 |
|
|
14 |
Lic Of India Jeevan Plus Growth Fund |
75629 |
0.01 |
0.01 |
|
|
15 |
Lic Of India Market Plus 1 Non Unit Fund |
60000 |
0.01 |
0.01 |
|
|
16 |
Lic Of India Health Plus Non Unit Fund |
41508 |
0.01 |
0.01 |
|
|
17 |
Lic Of India Bima Plus Risk Fund |
31943 |
0.01 |
0.01 |
|
|
18 |
Lic Of India Future Plus Non Unit Fund |
25500 |
0.00 |
0.00 |
|
|
19 |
Lic Of India Health Plus Fund |
25400 |
0.00 |
0.00 |
|
|
20 |
Lic Of India Money Plus 1 Growth Fund |
23716 |
0.00 |
0.00 |
|
|
21 |
Lic Of India Health Protection Plus Fund |
23303 |
0.00 |
0.00 |
|
|
22 |
Lic Of India Fortune Plus Growth Fund |
21131 |
0.00 |
0.00 |
|
|
23 |
Lic Of India Market Plus 1 Growth Fund |
9605 |
0.00 |
0.00 |
|
|
24 |
Life Insurance Corporation Of India -Ulif003200910Licend+Bal512 |
9000 |
0.00 |
0.00 |
|
|
25 |
Lic Of India Bima Plus Non Unit Fund |
5500 |
0.00 |
0.00 |
|
|
26 |
Lic Of India Gratuity Plus Growth Fund |
4850 |
0.00 |
0.00 |
|
|
27 |
Lic Of India Jeevan Saathi Plus Growth Fund |
2600 |
0.00 |
0.00 |
|
|
28 |
Lic Of India Profit Plus Balanced Fund |
2000 |
0.00 |
0.00 |
|
|
29 |
Lic Of India Future Plus Balanced Fund |
1550 |
0.00 |
0.00 |
|
|
30 |
Lic Of India Money Plus Balanced Fund |
1500 |
0.00 |
0.00 |
|
|
31 |
Lic Of India Future Plus Income Fund |
1050 |
0.00 |
0.00 |
|
|
32 |
Lic Of India Health Protection Plus Non Unit |
1000 |
0.00 |
0.00 |
|
|
33 |
Lic Of India Money Plus 1 Balanced Fund |
800 |
0.00 |
0.00 |
|
|
34 |
Lic Of India Jeevan Plus Balanced Fund |
600 |
0.00 |
0.00 |
|
|
35 |
Lic Of India Profit Plus Secured Fund |
600 |
0.00 |
0.00 |
|
|
36 |
Lic Of India Money Plus Secured Fund |
500 |
0.00 |
0.00 |
|
|
37 |
Lic Of India Gratuity Plus Balance Fund |
500 |
0.00 |
0.00 |
|
|
38 |
Lic Of India Fortune Plus Balanced Fund |
500 |
0.00 |
0.00 |
|
|
39 |
Lic Of India Money Plus 1 Secured Fund |
450 |
0.00 |
0.00 |
|
|
40 |
Lic Of India Money Plus 1 Non Unit Fund |
300 |
0.00 |
0.00 |
|
|
41 |
Lic Of India Fortune Plus Secured Fund |
300 |
0.00 |
0.00 |
|
|
42 |
Lic Of India Jeevan Plus Secured Fund |
300 |
0.00 |
0.00 |
|
|
43 |
Lic Of India Jeevan Saathi Plus Secured Fund |
150 |
0.00 |
0.00 |
|
|
44 |
Lic Of India Jeevan Saathi Plus Balanced Fund |
150 |
0.00 |
0.00 |
|
|
45 |
Lic Of India Child Fortune Plus Balanced Fund |
100 |
0.00 |
0.00 |
|
|
|
Total |
78181359 |
12.59 |
12.59 |
|
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Light Commercial Vehicles, Agricultural
Tractors, Implements and Utility Vehicles. |
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Products : |
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Brand Names : |
Not Divulged |
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Agencies Held : |
Not Divulged |
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|
Exports : |
Not Divulged |
||||||||
|
|
|
||||||||
|
Imports : |
Not Divulged |
||||||||
|
|
|
||||||||
|
Terms : |
Not Divulged |
PRODUCTION STATUS NOT AVAILABLE
GENERAL INFORMATION
|
Suppliers : |
|
|||||||||||||||||||||
|
|
|
|||||||||||||||||||||
|
Customers : |
|
|||||||||||||||||||||
|
|
|
|||||||||||||||||||||
|
No. of Employees : |
19,836 [Approximately] |
|||||||||||||||||||||
|
|
|
|||||||||||||||||||||
|
Bankers : |
|
|||||||||||||||||||||
|
|
|
|||||||||||||||||||||
|
Facilities : |
(Rs.
In Million)
NOTE: LONG TERM
BORROWING Debentures/Bonds : Debentures/Bonds include Secured Non Convertible debentures carrying an interest rate of 11.95% for a period of seven years and are repayable in three equal annual installments from December, 2013. These debentures are secured by tangible assets of the Company at certain locations including immovable items therein and by way of a first pari-passu charge on the movable plant and machinery, machinery spares, tools and accessories and other movables, both present and future (save and except book debts) situated at certain locations of the Company. Rs. 1333.400 Million payable in December, 2015 is shown under current maturities of long term borrowings. Term loans from banks were secured by way of first ranking pari-passu charge on certain immovable and movable properties both present and future, relating to Medium and Heavy Commercial Vehicle (MHCV) project as well as second charge on certain current assets, relating to MHCV project. These loans were carrying floating rate of interest ranging from 11.00% to 11.80%. The loans have been fully repaid during the year. SHORT TERM
BORROWING Loans and Advances on cash credit accounts from the Company’s bankers are secured by a first charge on a pari-passu basis on the whole of the current assets of the Company namely inventories, book debts, outstanding monies, receivables, claims etc. both present and future. |
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Deloittee Haskins and Sells Chartered Accountants |
|
Address : |
Tower 3, 27th – 32nd Floor, Indiabulls Finance Centre, Elphinstone Mill Compound, Senapati Bapat Marg, Elphinstone (West), Mumbai 400 013, Maharashtra, India |
|
Tel No.: |
91-22-61854000 |
|
Fax No.: |
91-22-61854501/4601 |
|
|
|
|
Advocate : |
|
|
Name : |
Khaitan and Company |
|
Address : |
One Indiabulls Centre, 13th Floor, 841, Senapati Bapat Marg, Elphinstone Road, Mumbai 400 013, Maharashtra, India |
|
|
|
|
Memberships : |
-- |
|
|
|
|
Collaborators |
-- |
|
|
|
|
Subsidiaries : |
1 Mahindra Engineering and Chemical Products Limited 2 Mahindra Steel Service Centre Limited 3 Mahindra First Choice Wheels Limited 4 Mahindra USA Inc. 5 Mahindra Gujarat Tractor Limited 6 Mahindra Shubhlabh Services Limited 7 Mahindra and Mahindra South Africa (Proprietary) Limited 8 Mahindra Engineering Services Limited (upto 8th December, 2014) 9 Mahindra Gears and Transmissions Private Limited (upto 10th December, 2014) 10 Mahindra Overseas Investment Company (Mauritius) Limited 11 Mahindra Europe S.r.l. 12 Jiangxi Mahindra Yueda Tractor Co. Limited (upto 17th June, 2014) 13 Mahindra-BT Investment Company (Mauritius) Limited 14 Mahindra Intertrade Limited 15 Mahindra MiddleEast Electrical Steel Service Centre (FZC) 16 Mahindra Consulting Engineers Limited 17 Mahindra Holidays and Resorts India Limited 18 Mahindra Holidays and Resorts USA Inc (upto 19th May, 2014) 19 Mahindra Hotels and Residences India Limited 20 Mahindra Holdings Limited 21 NBS International Limited 22 Mahindra Ugine Steel Company Limited (upto 10th December, 2014) 23 Mahindra and Mahindra Financial Services Limited 24 Mahindra Insurance Brokers Limited 25 Mahindra Rural Housing Finance Limited 26 Bristlecone Limited 27 Bristlecone Inc. 28 Bristlecone UK Limited 29 Bristlecone India Limited 30 Bristlecone (Singapore) Pte. Limited 31 Bristlecone GmbH 32 Bristlecone (Malaysia) Sdn.Bhd. 33 Mahindra Automobile Distributor Private Limited 34 Mahindra Trucks and Buses Limited 35 Mahindra Engineering Services (Europe) Limited (upto 8th December, 2014) 36 Mahindra Engineering GmbH (upto 8th December, 2014) 37 Mahindra Lifespace Developers Limited 38 Mahindra Infrastructure Developers Limited 39 Mahindra World City (Jaipur) Limited 40 Mahindra Integrated Township Limited 41 Mahindra Residential Developers Limited 42 Mahindra World City Developers Limited 43 Mahindra World City (Maharashtra) Limited 44 Knowledge Township Limited 45 Mahindra Vehicle Manufacturers Limited 46 Mahindra Logistics Limited 47 Mahindra Heavy Engines Private Limited 48 Mahindra Aerospace Private Limited 49 Heritage Bird (M) Sdn.Bhd. 50 Mahindra First Choice Services Limited 51 Mahindra Graphic Research Design S.r.l. 52 Mahindra Gears International Limited (upto 10th December, 2014) 53 Mahindra Gears Global Limited (upto 10th December, 2014) 54 Mahindra Gears Cyprus Ltd (upto 15th September, 2014) 55 Metalcastello S.p.A (upto 10th December, 2014) 56 Mahindra Bebanco Developers Limited 57 Industrial Township (Maharashtra) Limited 58 Crest Geartech Private Limited (upto 10th December, 2014) 59 Mahindra Business and Consulting Services Private Limited 60 Mahindra Two Wheelers Limited 61 Mahindra Automotive Australia Pty. Limited 62 Mahindra Internet Commerce Private Limited (formerly known as Mahindra United Football Club Private Limited) 63 Defence Land Systems India Limited (formerly known as Defence Land Systems India Private Limited) 64 Mahindra Yueda (Yancheng) Tractor Company Limited 65 Mahindra Electrical Steel Private Limited 66 Mahindra Aerospace Australia Pty. Limited 67 Aerostaff Australia Pty. Limited 68 Mahindra Reva Electric Vehicles Private Limited 69 Bristlecone Consulting Limited 70 Anthurium Developers Limited 71 Gipp Aero Investments Pty. Limited 72 Gippsaero Pty. Limited 73 GA8 Airvan Pty. Limited 74 GA200 Pty. Limited 75 Airvan Flight Services Pty. Limited 76 Nomad TC Pty. Limited 77 Mahindra Emirates Vehicle Armouring FZ-LLC 78 Mahindra Integrated Business Solutions Private Limited 79 Mahindra Aerostructures Private Limited 80 Ssangyong Motor Company 81 Ssangyong European Parts Center B.V. 82 Ssangyong Motor (Shanghai) Company Limited 83 Mahindra EPC Services Private Limited 84 Bristlecone International AG 85 EPC Industrie Limited 86 Mahindra Telecommunications Investment Private Limited 87 Mahindra Sanyo Special Steel Private Limited 88 Bell Tower Resorts Private Limited (upto 31st July, 2014) 89 Mahindra Racing S.r.l. 90 Swaraj Automotives Limited 91 Mahindra Defence Naval Systems Private Limited 92 Mahindra Defence Systems Limited 93 Divine Heritage Hotels Private Limited 94 Gables Promoters Private Limited 95 2 X 2 Logistics Private Limited 96 Holiday on Hills Resorts Private Limited 97 MH Boutique Hospitality Limited 98 Infinity Hospitality Group Company Limited 99 Mahindra Tractor Assembly Inc. 100 Industrial Cluster Private Limited (formerly known as Mahindra Housing Private Limited) 101 Mahindra Telephonics Integrated Systems Limited 102 Mahindra Investments (India) Private Limited (upto 10th December, 2014) 103 Mahindra HZPC Private Limited (formerly known as Mahindra Investments (International) Private Limited) 104 Mahindra Offgrid Services Private Limited 105 Mahindra Asset Management Company Private Limited 106 Mahindra Trustee Company Private Limited 107 Cleansolar Renewable Energy Private Limited 108 Brightsolar Renewable Energy Private Limited 109 Mahindra Auto Steel Private Limited Mahindra 'Electoral Trust' Company 111 Mahindra North American Technical Centre, Inc. 112 Raigad Industrial and Business Park Limited 113 Retail Initiative Holdings Limited 114 Mahindra Retail Private Limited 115 Mahindra Technologies Services Inc. (upto 8th December, 2014) 116 Mahindra Punjab Tractors Private Limited 117 Mahindra Namaste Private Limited 118 Mahindra Conveyor Systems Private Limited (upto 31st July, 2014) 119 Competent Hotels Private limited (w.e.f 18th June, 2014) 120 Mahindra Racing UK Limited (w.e.f 22nd May, 2014) 121 Mahindra UNIVEG Private Limited (w.e.f 9th July, 2014) 122 MHR Holdings (Mauritius) Limited (w.e.f. 11th July, 2014) 123 Convington S.á.r.l. (w.e.f. 17th July, 2014) 124 Lords Freight (India) Private Limited (w.e.f. 7th August, 2014) 125 Mriyalguda Farm Solution Limited (w.e.f. 11th August, 2014) 126 Mahindra Two Wheelers Europe Holdings S.á.r.l. (w.e.f. 2nd December, 2014) 127 Mahindra Industrial Park Chennai Limited (w.e.f. 22nd December, 2014) 128 Peugeot Motocycles S.A.S. (w.e.f. 19th January, 2015) 129 Peugeot Motocycles Italia S.p.A (w.e.f. 19th January, 2015) 130 Peugeot Motocycles Deutschland GmbH (w.e.f. 19th January, 2015) |
|
|
|
|
Associates : |
|
|
|
|
|
Joint Venture : |
|
|
|
|
|
Joint Venture of a Subsidiary
: |
|
|
|
|
|
Enterprise over
which KMP is able to exercise significant influence : |
|
|
|
|
|
Welfare Funds : |
|
CAPITAL STRUCTURE
As on 31.03.2015
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1200000000 |
Ordinary (Equity) Shares |
Rs.5/- each |
Rs.6000.000 Million |
|
2500000 |
Unclassified Shares |
Rs.100/- each |
Rs.250.000 Million |
|
|
Total |
|
Rs.6250.000
Million |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
621092384 |
Ordinary (Equity) Shares |
Rs.5/- each |
Rs.3105.500
Million |
|
29700106 |
Less : Ordinary (Equity) Shares |
Rs.5/- each |
Rs.148.500
Million |
|
|
Total |
|
Rs.2957.000 Million |
Reconciliation of number
of Ordinary (Equity) Shares and amount outstanding :
|
|
2015 |
|
|
|
No. of shares |
Rupees in Million |
|
Issued and
Subscribed : |
|
|
|
Balance as at the beginning of the year |
615892384 |
3079.500 |
|
Add : |
|
|
|
Shares issued to ESOP Trust |
5200000 |
26.000 |
|
Balance as at the end of the year |
621092384 |
3105.500 |
|
Less : |
|
|
|
Shares issued to ESOP Trust but not allotted to Employees |
29700106 |
148.500 |
|
Adjusted : Issued
and Subscribed Share Capital |
591392278 |
2957.000 |
The Ordinary (Equity) shares of the Company rank pari-passu in all respects including voting rights and entitlement to dividend.
Details of Ordinary
(Equity) shares held by shareholders holding more than 5% of the aggregate shares
in the Company :
|
Name of the
Shareholder |
2015 |
|
|
|
No. of shares |
% shareholding |
|
(i) Life Insurance Corporation of India |
7,82,03,359 |
12.59 |
|
(ii) Prudential Management and Services Private Limited |
7,07,60,970 |
11.39 |
|
(iii) M&M Benefit Trust |
5,18,35,214 |
8.35 |
|
(iv) The Bank of New York Mellon (for GDR holders) |
3,34,13,833 |
5.38 |
Issued and Subscribed Share Capital includes an aggregate of 40,647 (2014 : 40,647) Ordinary (Equity) Shares of Rs. 5 each allotted as fully paid-up pursuant to schemes of arrangement without payment having been received in cash, for a period of five years immediately preceding the end of the financial year.
FINANCIAL DATA
[all figures are
in Rupees Million]
ABRIDGED
BALANCE SHEET
|
SOURCES
OF FUNDS |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
2957.000 |
2951.600 |
2951.600 |
|
(b) Reserves & Surplus |
189593.900 |
164960.300 |
143637.600 |
|
(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) |
192550.900 |
167911.900 |
146589.200 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
25141.300 |
37444.200 |
31724.400 |
|
(b) Deferred tax liabilities
(Net) |
9797.000 |
8896.500 |
6148.500 |
|
(c) Other long term
liabilities |
6143.400 |
5862.700 |
4154.000 |
|
(d) long-term provisions |
6073.400 |
5103.300 |
4415.900 |
|
Total
Non-current Liabilities (3) |
47155.100 |
57306.700 |
46442.800 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
1062.500 |
7.400 |
546.300 |
|
(b) Trade payables |
53654.500 |
60688.000 |
55797.100 |
|
(c) Other current liabilities |
20411.300 |
11335.600 |
10521.700 |
|
(d) Short-term provisions |
14614.400 |
15636.900 |
14638.800 |
|
Total
Current Liabilities (4) |
89742.700 |
87667.900 |
81503.900 |
|
|
|
|
|
|
TOTAL |
329448.700 |
312886.500 |
274535.900 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
57954.400 |
57063.000 |
47510.600 |
|
(ii) Intangible Assets |
1340.200 |
1706.500 |
2068.000 |
|
(iii) Capital work-in-progress |
7556.700 |
3948.600 |
4955.400 |
|
(iv) Intangible assets under development |
14230.900 |
8335.800 |
3679.400 |
|
(b) Non-current Investments |
113727.400 |
97877.300 |
105715.000 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
32322.600 |
30181.200 |
20874.700 |
|
(e) Other Non-current assets |
1034.400 |
884.900 |
298.500 |
|
Total
Non-Current Assets |
228166.600 |
199997.300 |
185101.600 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
17654.200 |
15921.200 |
12619.600 |
|
(b) Inventories |
24375.700 |
28036.300 |
24197.700 |
|
(c) Trade receivables |
25580.300 |
25098.400 |
22083.500 |
|
(d) Cash and cash equivalents |
20647.700 |
29503.900 |
17814.100 |
|
(e) Short-term loans and
advances |
7731.000 |
9458.300 |
7634.000 |
|
(f) Other current assets |
5293.200 |
4871.100 |
5085.400 |
|
Total
Current Assets |
101282.100 |
112889.200 |
89434.300 |
|
|
|
|
|
|
TOTAL |
329448.700 |
312886.500 |
274535.900 |
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
|
SALES |
|
|
|
|
|
Income |
389454.200 |
405085.000 |
404411.600 |
|
|
Other Income |
8489.400 |
7179.900 |
5491.700 |
|
|
TOTAL
(A) |
397943.600 |
412264.900 |
409903.300 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials Consumed |
202724.800 |
216300.800 |
207498.700 |
|
|
Purchases of Stock-in-Trade |
73593.700 |
80769.200 |
97526.800 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
3236.300 |
(2746.700) |
(780.300) |
|
|
Employees benefits expense |
23169.300 |
21637.200 |
18664.500 |
|
|
Other expenses |
46005.700 |
42942.800 |
35240.100 |
|
|
Cost of Manufactured Products Capitalised |
(1009.900) |
(1030.400) |
(831.200) |
|
|
Exceptional Item |
(3357.200) |
(527.900) |
(906.200) |
|
|
TOTAL
(B) |
344362.700 |
357345.000 |
356412.400 |
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (C) |
53580.900 |
54919.900 |
53490.900 |
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
2143.000 |
2592.200 |
1911.900 |
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
51437.900 |
52327.700 |
51579.000 |
|
|
|
|
|
|
|
Less/
Add |
DEPRECIATION/
AMORTISATION (F) |
9749.000 |
8633.400 |
7108.100 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX (E-F) (G) |
41688.900 |
43694.300 |
44470.900 |
|
|
|
|
|
|
|
Less |
TAX (H) |
8477.800 |
6110.800 |
10942.700 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX (G-H) (I) |
33211.100 |
37583.500 |
33528.200 |
|
|
|
|
|
|
|
|
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
123250.000 |
99520.000 |
79050.000 |
|
|
|
|
|
|
|
|
TRANSFER TO DEBENTURE
REDEMPTION RESERVE |
170.000 |
170.000 |
150.000 |
|
|
|
|
|
|
|
|
REVERSAL
OF INCOME TAX ON DIVIDEND PAID FOR 2013-14 |
30.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
APPROPRIATIONS |
|
|
|
|
|
Transfer to General Reserve |
0.000 |
4000.000 |
4000.000 |
|
|
Proposed Dividends |
7450.000 |
8620.000 |
7980.000 |
|
|
Income-tax on Proposed
Dividend |
1020.000 |
1040.000 |
930.000 |
|
|
Depreciation as per
transitional provision specified in Schedule II of the Companies Act, 2013 – [Net
of Tax of Rs. 182.400 Million |
350.000 |
0.000 |
0.000 |
|
|
Dividend for 2012-13 paid on
shares issued in June, 2013 |
0.000 |
20.000 |
0.000 |
|
|
Balance
Carried to the B/S |
147500.000 |
123250.000 |
99520.000 |
|
|
|
|
|
|
|
|
EARNINGS
IN FOREIGN CURRENCY |
|
|
|
|
|
Export of goods on F.O.B. basis |
22247.900 |
21252.900 |
22250.200 |
|
|
Interest |
156.400 |
199.100 |
179.200 |
|
|
Consultancy fees |
41.900 |
51.500 |
0.000 |
|
|
Others |
913.800 |
1095.800 |
1104.300 |
|
|
TOTAL
EARNINGS |
23360.000 |
22599.300 |
23533.700 |
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
Raw Materials |
52.700 |
47.100 |
9.600 |
|
|
Components, Spare Parts |
4617.600 |
5352.500 |
7068.600 |
|
|
Capital Goods |
2590.900 |
1419.700 |
1418.800 |
|
|
Items imported for Resale |
10.300 |
150.100 |
462.400 |
|
|
TOTAL
IMPORTS |
7271.500 |
6969.400 |
8959.400 |
|
|
|
|
|
|
|
|
Earnings
/ (Loss) Per Share (Rs.) |
|
|
|
|
Basic |
56.23 |
63.67 |
56.85 |
|
|
Diluted |
53.66 |
61.07 |
54.61 |
CURRENT MATURITIES
OF LONG TERM DEBT DETAILS
|
Particulars |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
Current Maturities of Long term debt |
84069.900 |
68943.900 |
54823.100 |
|
Cash generated from operations |
40662.400 |
46218.600 |
50189.400 |
|
Net Cash From Operating Activities |
32194.900 |
37276.400 |
41457.100 |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
Net Profit Margin (PAT / Sales) |
(%) |
8.53 |
9.28 |
8.29 |
|
|
|
|
|
|
|
Operating Profit Margin (PBIDT/Sales) |
(%) |
13.76 |
13.56 |
13.23 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
21.50 |
21.55 |
27.76 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.22 |
0.26 |
0.30 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.57 |
0.63 |
0.59 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.13 |
1.29 |
1.10 |
STOCK
PRICES
|
Face Value |
Rs.5.00/- |
|
Market Value |
Rs.1338.00/- |
FINANCIAL ANALYSIS
[all figures are
in Rupees Million]
DEBT EQUITY RATIO
|
Particular |
31.03.2013 |
31.03.2014 |
31.03.2015 |
|
|
(Rs.
In Million) |
(Rs.
In Million) |
(Rs.
In Million) |
|
Share Capital |
2951.600 |
2951.600 |
2957.000 |
|
Reserves & Surplus |
143637.600 |
164960.300 |
189593.900 |
|
Money received against share
warrants |
0.000 |
0.000 |
0.000 |
|
Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Net
worth |
146589.200 |
167911.900 |
192550.900 |
|
|
|
|
|
|
long-term borrowings |
31724.400 |
37444.200 |
25141.300 |
|
Short term borrowings |
546.300 |
7.400 |
1062.500 |
|
Current maturities of
long-term debts |
54823.100 |
68943.900 |
84069.900 |
|
Total
borrowings |
87093.800 |
106395.500 |
110273.700 |
|
Debt/Equity
ratio |
0.594 |
0.634 |
0.573 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2013 |
31.03.2014 |
31.03.2015 |
|
|
(Rs.
In Million) |
(Rs.
In Million) |
(Rs.
In Million) |
|
Sales |
404411.600 |
405085.000 |
389454.200 |
|
|
|
0.167 |
-3.859 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2013 |
31.03.2014 |
31.03.2015 |
|
|
(Rs.
In Million) |
(Rs.
In Million) |
(Rs.
In Million) |
|
Sales |
404411.600 |
405085.000 |
389454.200 |
|
Profit |
33528.200 |
37583.500 |
33211.100 |
|
|
8.29% |
9.28% |
8.53% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check list by
info agents |
Available in
Report (Yes/No) |
|
1 |
Year of establishment |
Yes |
|
2 |
Constitution of the entity -Incorporation
details |
Yes |
|
3 |
Locality of the entity |
Yes |
|
4 |
Premises details |
No |
|
5 |
Buyer visit details |
-- |
|
6 |
Contact numbers |
Yes |
|
7 |
Name of the person contacted |
No |
|
8 |
Designation of contact person |
No |
|
9 |
Promoter’s background |
Yes |
|
10 |
Date of Birth of Proprietor / Partners /
Directors |
Yes |
|
11 |
Pan Card No. of Proprietor / Partners |
No |
|
12 |
Voter Id Card No. of Proprietor / Partners |
No |
|
13 |
Type of business |
Yes |
|
14 |
Line of Business |
Yes |
|
15 |
Export/import details (if applicable) |
No |
|
16 |
No. of employees |
No |
|
17 |
Details of sister concerns |
Yes |
|
18 |
Major suppliers |
No |
|
19 |
Major customers |
No |
|
20 |
Banking Details |
Yes |
|
21 |
Banking facility details |
Yes |
|
22 |
Conduct of the banking account |
-- |
|
23 |
Financials, if provided |
Yes |
|
24 |
Capital in the business |
Yes |
|
25 |
Last accounts filed at ROC, if applicable |
Yes |
|
26 |
Turnover of firm for last three years |
Yes |
|
27 |
Reasons for variation <> 20% |
-- |
|
28 |
Estimation for coming financial year |
No |
|
29 |
Profitability for last three years |
Yes |
|
30 |
Major shareholders, if available |
Yes |
|
31 |
External Agency Rating, if available |
Yes |
|
32 |
Litigations that the firm/promoter
involved in |
Yes |
|
33 |
Market information |
-- |
|
34 |
Payments terms |
No |
|
35 |
Negative Reporting by Auditors in the
Annual Report |
No |
LITIGATION DETAILS
|
LITIGATION DETAILS |
|
Bench:- Bombay |
|
Presentation
Date : 12/05/2014 |
|
Lodging No.:- |
ITXAL/1005/2014 |
Filing Date:- |
12/05/2014 |
Reg. No.:- |
ITXA/1148/2014 |
Reg. Date:- |
22/07/2014 |
|||
|
Petitioner:- |
COMMISSIONER OF INCOME TAX-2 |
|||||||||
|
Respondent:- |
M/S. MAHINDRA AND MAHINDRA LTD. |
|||||||||
|
Petn.Adv.:- |
Suresh Kumar (I2100) |
|||||||||
|
District:- |
MUMBAI |
|||||||||
|
Bench:- |
DIVISION |
|||||||||
|
|
|
|||||||||
|
Status:- |
Pre-Admission |
Category:- |
TAX APPEALS |
|||||||
|
Next Date:- |
31/07/2015 |
Stage:- |
|
|||||||
|
Coram:- |
ACCORDING TO SITTING LIST ACCORDING TO SITTING LIST |
|||||||||
|
Act :- |
Income Tax Act, 1961 |
Under Section:- |
260A |
PERFORMANCE REVIEW
AUTOMOTIVE DIVISION:
The Company’s
Automotive Division recorded total sales of 3,96,534 vehicles and 59,404
three-wheelers as compared to 4,34,505 vehicles and 64,510 three-wheelers in
the previous year registering a decline of 8.7% in vehicle sales and a decline
of 7.9% in three-wheeler sales.
On the domestic
sales front, the Company sold 223,968 Passenger Vehicles [including 2,06,837
Utility Vehicles (UVs), 13,947 Multi Purpose Vehicles (MPVs) and 3,184 Cars]
which is a decline of 11.9% over the previous year’s volumes of 2,54,344
Passenger Vehicles [including 2,19,421 UVs, 25,189 MPVs and 9,734 Cars]. In the
commercial vehicle segment, the Company sold 1,45,010 vehicles [including
15,255 vehicles < 2T GVW and 1,29,755 vehicles between 2-3.5T GVW]
registering a decline of 4.8% over the previous year’s volume of 1,52,398
commercial vehicles, [including 29,223 vehicles < 2T GVW and 1,23,175
vehicles between 2-3.5T GVW]. In the three-wheeler segment, the Company sold
56,764 three-wheelers registering a decline of 9.3% over the previous year’s
volume of 62,614 three-wheelers.
For the year, the
Passenger Vehicle (PV) industry has shown signs of revival, but this has been patchy.
The Car industry growth is largely driven by new launches. The Company’s volume
decline in the UV segment is a reflection of the UV market shift towards
compact UVs attracting lower excise rates. The < 2T Light Commercial Vehicle
(LCV) industry continues to shrink and the 2 to 3.5T LCV industry (Pik-
Ups) suffered due
to slowdown in Agri incomes and finance availability.
The Company’s UV
sales volume declined by 5.7%, but the Company continued to maintain its
leadership position in the domestic UV market by posting a market share of
37.4%. During this year, Bolero sales once again crossed the milestone of 1
lakh sales in a year. This is the fourth consecutive year that Bolero has
achieved this milestone. Also, Bolero retained the title of India’s largest
selling Sports Utility Vehicle (SUV) for the 9th consecutive year. It is also
the 5th highest selling passenger Stabilisation and recovery are the two words
that best characterise India’s economic performance in the Financial Year
2014-15. Supported by benign prices across the commodity complex – food, metals
and crude oil, the country’s macros witnessed a sharp and reassuring
consolidation. The centre’s fiscal deficit dropped to 4.1% from 4.4% a year ago
and is set to consolidate further in the current Financial Year. The country’s
balance of payments registered a healthy surplus, while the current account
deficit came in below 2% of GDP for the second year in succession. Furthermore,
consumer price inflation is currently trending around the 5% mark, a sharp drop
from the entrenched double digit price acceleration experienced during the last
couple of years and considerably below the 8% target that the RBI had set for
itself a year ago. The latter’s monetary stance has, consequently, eased
considerably and may ease further in the coming months. Economic activity, at
the same time, witnessed a steady, albeit slow, recovery through the year.
While the regulatory and procedural reforms undertaken by the new Government
since taking office in June last year did help improve the business climate
prevailing in the country, weak demand continued to constrain private sector
activity for the second year in succession. With global growth across developed
and emerging markets remaining below par in 2014, external demand remained
tepid and uninspiring through the year. At the same time, a poor monsoon season
coupled with benign food prices severely constrained rural incomes and domestic
demand. The one bright spot was the turnaround in investment plans and
expenditures signalled by the sharp pick up in capital goods production and new
project announcements in the second half of 2014-15, which portends well for
future growth.
However, even
amidst this scenario, the Company demonstrated resilience to economic cycles
with a decline of only 3.47% in net income at Rs. 397940.000 Million in the
year as against Rs. 412260.000 Million in the previous year. The Profit for the
year before Depreciation, Finance Costs, Exceptional items and Taxation
recorded a decrease of 7.67% at Rs. 5,0220.000 Million as against Rs.
5,4390.000 Million in the previous year. Similarly, Profit after tax declined
by 11.62% at Rs. 3,3210.000 Million as against Rs. 3,7580.000 Million in the
previous year. Vehicle in India. In September, 2014, the Company launched the
New Generation Scorpio. The New Generation Scorpio is built on an all new
platform and comes with contemporary styling and advanced technology features.
New Generation Scorpio is all set to take the Scorpio brand to new heights.
The Scorpio posted
record sales since launch and strengthened its iconic status with sales of over
50,000 units for the fourth successive year. The XUV500 continued to be the
customer’s choice in the premium UV segment with sales of over 34,000 units in
the year.
In the Pik-Up
segment of commercial vehicles (LCV 2 to 3.5T), the Company strengthened its
leadership position with a market share of 73.3% (a gain of 9.5% points). The
Company recorded total sales of 8,912 commercial vehicles [including 5,413 LCVs
in the LCV > 3.5T segment and 3,499 HCVs (Heavy Commercial Vehicles)] which
is a growth of 9.2% over the previous year’s volumes of 8,161 commercial
vehicles [including 5,876 LCVs in the LCV > 3.5T segment and 2,285 HCVs].
In the Overseas
market, the Company’s volume grew 1.8% over the previous year. While the
markets of Sri Lanka, Nepal, Bangladesh and Bhutan witnessed good growth, there
was a decline in Chile and South Africa. During the year, the Company sold
27,556 vehicles and 2,640 three-wheelers in the overseas market as compared to
27,763 vehicles [including 452 vehicles sourced from the erstwhile “Trucks and
Bus Division of Mahindra Trucks and Buses Limited” which subsequently got
demerged into the Company] and 1,896 three-wheelers in the previous year.
Spare parts sales
for the year stood at Rs. 1,6099.000 Million (including exports of Rs. 1040.400
Million) as compared to Rs. 1,4278.100 Million (including exports of Rs.
929.800 Million) in the previous year, registering a growth of 12.8%.
MANAGEMENT DISCUSSION
AND ANALYSIS
Mahindra and
Mahindra Limited (MandM) or (Mahindra) is the flagship company of the Mahindra
Group, which consists of 137 companies with diverse business interests across
the globe and aggregate revenues of around US $ 16.9 billion. The Financial
Year 2014-15 was characterised by an economic environment that was lukewarm. A
below par monsoon affected domestic demand even while global demand remained
sluggish. While, as compared to the previous year, the automotive industry was
in better shape overall it is still some distance away from full recovery.
During the year, the tractor industry also faced strong headwinds and steep
industry slowdown. Impact of this sluggish economic environment was felt by the
Company as well, with the Automotive Sector registering a decline of 8.3% in
vehicle sales and tractor sales declining by 12.6%, respectively, compared to
the previous year. Even amidst this scenario, the Company demonstrated its
resilience, with a Net Income for the year of Rs. 39,7940.000 Million, a
decline of only 3.5%, as compared to the previous year and Profit Before Tax of
Rs. 4,1690.000 Million, a decline of only 4.6% over the previous year.
INDUSTRY
STRUCTURE, OVERVIEW AND TRENDS
The Indian
automotive industry comprises of a number of players, both Indian and
multinational, with varying degrees of presence in different segments.
Currently, nine of the top ten global automotive manufacturers have a presence
in India, which clearly points to India’s importance as a strategic automotive
market. After more than a decade of establishing a manufacturing base in India,
MNC OEMs have garnered an 84.9% share of the domestic Passenger Vehicles (PV)
market and are also increasingly using India as an export base. Currently,
22.1% of MNC production is exported from India. However, in the Commercial
Vehicle (CV) space, Indian OEMs continue to dominate the industry with 96.1%
market share.
Global Automotive
Industry
In the calendar
year (CY) 2014, global automotive sales stood at a record 88.2 million
vehicles, a growth of around 3% over the previous year. This growth was
primarily driven by China, USA and Japan, which collectively account for 52% of
the global automotive market. Source: OICA (Organisation International des
Constructeurs d’Automobiles). China retained the distinction of being the
world’s largest automotive market for the 6th consecutive year with total sales
of 23.5 million vehicles, a growth of around 7%. The US market
which had hit a
low in 2008 has been on a slow recovery path registering a growth of 6% in CY
2014. However, the China- US market size gap widened to 6.6 million vehicles
from 4.5 million vehicles in CY 2012.
European auto
sales turned positive after two years of decline. Growth was seen in key markets
like Germany (3%), France (0.2%) and Italy (5.1%). However, the UK market
posted 9.5% growth on the back of stronger consumer confidence. The automotive
markets in Brazil and Russia continued to decline for the second consecutive
year. In CY 2014, the Brazilian automotive market was down 7.1% while the
Russian automotive market registered a decline of 15.1%.
OUTLOOK –
AUTOMOTIVE and FARM SECTORS
Both the
Automotive and Farm Sectors strive to maintain their leadership position in the
domestic market and at the same time explore global opportunities.
Simultaneously, the Company continues its focus on achieving cost leadership
through focused cost optimisation, productivity improvements, value
engineering, improved efficiency measures like supply chain management and
exploiting synergies between its sectors. The mid-term outlook for the Indian
auto industry is very positive. SIAM (Society of Indian Automobile
Manufacturers) has forecasted that the potential size of the Indian vehicle
market (PV + CV) by the Financial Year 2018-19 will be as large as ~5.8 million
vehicles (current size 3.8 million) which is an annual growth rate of 11%.
In the Financial
Year 2015-16, growth in the automotive industry will be driven by economic
recovery, overall positive sentiment in the country and increased investment in
infrastructure. However, some challenges do exist in the short term, in the
form of a low agri sentiment that impacts rural India in general. This aspect
has to be carefully watched in the coming months when the monsoon will act as
an important driver of sentiment.
The cost of
ownership of vehicles is likely to see a marginal increase due to a rise in
both fuel and commodity prices. However, interest rates are likely to soften
from current levels. For the Financial Year 2015-16, SIAM forecasts single
digit growth for the Indian auto industry. The Passenger Vehicle segment is
expected to grow by 5-7%, LCV Goods by 3-5%, MHCV Goods by 12-14%, three
wheelers by 2-4% and two wheelers by 7-9%.
On the export front,
they see some opportunity for growth which will be aided by an upswing in the
global auto industry, especially in the European Union and Africa. On the
tractor front, the unseasonal rains in Q4F15, resulting in lower Rabi crop
production, coupled with subdued crop prices, is expected to have a negative
effect on agri incomes. This is also likely to have an adverse impact on
domestic tractor demand in the early part of the Financial Year 2015-16.
However, a timely and near normal monsoon has the potential to help improve the
sentiment and lead to industry growth.
The impact of this
is likely to be felt only in the latter part of the Financial Year 2015-16. On
the international front, the Company plans to strengthen its presence in
existing markets of USA, South and Central America, China, Africa and South
East Asia and at the same evaluate opportunities in new geographies.
UNSECURED LOAN
(Rs.
In Million)
|
Particulars |
As
on 31.03.2015 |
As
on 31.03.2014 |
|||||||||||||||||||||||||||||||||
|
LONG TERM
BORROWING |
|
|
|||||||||||||||||||||||||||||||||
|
Debentures |
5000.000 |
5000.00 |
|||||||||||||||||||||||||||||||||
|
Term Loans from Banks |
9375.000 |
17974.500 |
|||||||||||||||||||||||||||||||||
|
Fixed Deposits |
216.900 |
587.100 |
|||||||||||||||||||||||||||||||||
|
Other Loans |
10549.400 |
10942.100 |
|||||||||||||||||||||||||||||||||
|
SHORT TERM
BORROWING |
|
|
|||||||||||||||||||||||||||||||||
|
Term Loan from Bank |
1062.500 |
0.000 |
|||||||||||||||||||||||||||||||||
|
Fixed Deposits |
0.000 |
6.900 |
|||||||||||||||||||||||||||||||||
|
Total |
26203.800 |
34510.600 |
|||||||||||||||||||||||||||||||||
|
NOTE: LONG TERM
BORROWING Debentures are Senior Redeemable Non-Convertible Debentures carrying an interest rate of 9.55% with a tenure of 50 years, repayable in July, 2063. Term loans from banks comprise of : USD External Commercial Borrowings carrying an average margin of 157 basis points over three month USD Libor and are repayable after five years and one day from the date of respective availment of loan i.e. Rs. 6250.000 Million in August, 2016 and Rs. 3125.000 Million in September, 2016. Rs. 9375.000 Million payable in February, 2016 is shown under current maturities of long term borrowings. Fixed deposits are repayable three years from the date of deposit and carry an interest rate of 9.75%. Other loans comprise deferred sales tax loans which are interest free and repayable in five equal installments after ten years from the year of availment of respective loan. These loans are repayable : (Rs.
In Million)
Current maturities in respect of long term borrowings have been included in Note 10 as under (Rs.
In Million)
SHORT TERM
BORROWING Term loan from bank is an Export credit facility carrying interest rate of 0.58% and is repayable within a year from the date of availment of loan. |
|||||||||||||||||||||||||||||||||||
INDEX
OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE
CREATION/MODIFICATION |
CHARGE AMOUNT
SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST NUMBER
(SRN) |
|
1 |
10144031 |
03/03/2009 |
4,000,000,000.00 |
AXIS TRUSTEE SERVICES LIMITED |
MAKER TOWERS 'F',
13TH FLOOR, CUFFE PARADE, COLAB |
A57476277 |
|
2 |
80017445 |
08/05/2004 * |
20,000,000.00 |
BANK OF BARODA |
INDUSTRIAL FINANCE
BRANCH, MUMBAI, MAHARASHTRA - 4 |
- |
|
3 |
80017447 |
16/08/2002 * |
500,000,000.00 |
ICICI LIMITED |
BACKBAY
RECLAMATION, MUMBAI, MAHARASHTRA -400020, |
- |
|
4 |
80017449 |
16/08/2002 * |
1,000,000,000.00 |
ICICI LIMITED |
BACKBAY
RECLAMATION, MUMBAI, MAHARASHTRA -400020, |
- |
|
5 |
80017450 |
06/09/2002 * |
700,000,000.00 |
ICICI LIMITED |
BACKBAY
RECLAMATION, MUMBAI, MAHARASHTRA -400020, |
- |
|
6 |
90172400 |
08/01/1996 |
30,000,000.00 |
INDIAN OVERSEAS BANK |
762 ANNA SALAI, MADRAS, TAMIL NADU, INDIA |
- |
|
7 |
80017435 |
28/06/2000 * |
61,600,000.00 |
ICICI LIMITED |
BACKBAY
RECLAMATION, MUMBAI, MAHARASHTRA -400020, |
- |
|
8 |
80017433 |
28/06/2000 * |
44,800,000.00 |
ICICI LIMITED |
BACKBAY
RECLAMATION, MUMBAI, MAHARASHTRA - 400020, |
- |
|
9 |
80017432 |
21/09/1998 * |
784,772,330.00 |
ICICI LIMITED |
BACKBAY
RECLAMATION, MUMBAI, MAHARASHTRA - 400020, |
- |
|
10 |
90168101 |
27/04/1987 |
2,100,000.00 |
IND. FINANCE CORP. OF INDIA |
BANK OF BARODA
BUILD ., 16 SANSAD MARG P.O. BOX |
- |
* Date of charge modification
CONTINGENT
LIABILITIES:
(Rs. in Million)
|
PARTICULARS |
31.03.2015 |
31.03.2014 |
|
|
|
|
|
a) Guarantees given by the Company For other companies |
13444.000 |
8965.300 |
|
(b) Claims against the Company not acknowledged as debts comprise of : (i) Excise Duty, Sales Tax and Service Tax claims disputed by the Company relating to issues of applicability and classification aggregating Rs. 2,0032.600 Million before tax (2014 : Rs. 1,7507.700 Million before tax). (ii) Other matters (excluding claims where amounts are not ascertainable): Rs. 285.300 Million before tax (2014 : Rs. 284.900 Million before tax). (c) Taxation matters : (i) Demands against the Company not acknowledged as debts and not provided for, relating to issues of deductibility and taxability in respect of which the Company is in appeal and exclusive of the effect of similar matters in respect of assessments remaining to be completed : – Income-tax : Rs. 5264.900 Million (2014 : Rs. 4955.800 Million). (ii) Items in respect of which the Company has succeeded in appeal, but the Income-tax Department is pursuing/likely to pursue in appeal/reference and exclusive of the effect of similar matters in respect of assessments remaining to be completed : – Income-tax matters : Rs. 1536.500 Million (2014 : Rs. 1552.200 Million). – Surtax matters : Rs. 1.300 Million (2014 : Rs. 1.300 Million). (d) The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) by its order dated 7th December, 2009 has rejected the Company’s appeal against the order dated 30th March, 2005 passed by the Commissioner of Central Excise (Adjudication), Navi Mumbai confirming the demand made on the Company for payment of differential excise duty (including penalty) of Rs. 3041.000 Million in connection with the classification of Company’s Commander range of vehicles, during the years 1991 to 1996. Whilst the Company had classified the Commander range of vehicles as 10-seater attracting a lower rate of excise duty, the Commissioner of Central Excise (Adjudication), Navi Mumbai, has held that these vehicles could not be classified as 10-seater as they did not fulfil the requirement of 10-seater vehicles, as provided under the Motor Vehicles Act, 1988 (MVA) read with Maharashtra Motor Vehicles Rules, 1989 (MMVR) and as such attracted a higher rate of excise duty. The Company has challenged the CESTAT order in the Supreme Court. In earlier collateral proceedings on this issue, the CESTAT had, by an order dated 19th July, 2005 settled the controversy in the Company’s favour. The CESTAT had accepted the Company’s submission that MVA and MMVR could not be referred to for determining the classification for the purpose of levy of excise duty and rejected the Department’s appeal against the order of the Collector, Central Excise classifying the Commander range of vehicles as 10-seater. The Department had challenged the CESTAT order in the Supreme Court. Without prejudice to the grounds raised in this appeal, the Company has paid an amount of Rs. 400.000 Million in January, 2010. The Supreme Court has admitted the Company’s appeal and has stayed the recovery of the balance amount till further orders. Both these orders of the Tribunals were heard and disposed off by the Honourable Supreme Court, in August 2014. Since contrary views were expressed by the Tribunals in two parallel proceedings, the Honourable Supreme Court directed that a larger bench of the Tribunal be constituted to hear the appeals without expressing any opinion on the issues. The Larger Bench of the CESTAT heard the matter in February, 2015 and by an order dated 27 February, 2015, remanded the matter to the Commissioner of Central Excise for consideration of the case afresh keeping all issues open. The company strongly believes, based on legal advice it has received, that it has a good case on merits so as to ultimately succeed in the matter. In another case relating to Armada range of vehicles manufactured during the years 1992 to 1996, by the Company at its Nashik facility, the Commissioner of Central Excise, Nashik passed an order dated 20th March, 2006 confirming a demand of Rs. 247.500 Million, on the same grounds as adopted for Commander range of vehicles. The CESTAT has given an unconditional stay against this order. The final hearing in this matter has been adjourned till the disposal of the appeal by the Supreme Court in the matter relating to Commander range of vehicles. As such, the Company does not expect any liability on this account. However, in view of the CESTAT orders and subsequent proceedings, pending their final outcome, the Company has reflected the above amount aggregating Rs. 3288.500 Million (2014 : Rs. 3288.500 Million) and the interest of Rs. 3414.400 Million (2014 : Rs. 3053.400 Million) accrued on the same upto 31st March, 2015, |
||
FIXED ASSETS:
·
Land
·
Buildings
·
Plant
and Equipment
·
Office
Equipment
·
Furniture
and Fixture
·
Aircraft
·
Vehicles
·
Technical
Knowhow
·
Development
Expenditure
·
Computer
Software
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.64.03 |
|
|
1 |
Rs.99.72 |
|
Euro |
1 |
Rs.70.88 |
INFORMATION DETAILS
|
Information
Gathered by : |
DIP |
|
|
|
|
Analysis Done by
: |
SAN |
|
|
|
|
Report Prepared
by : |
KVT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILITY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--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 |
|
80 |
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.