Annual Report 2014-2015

Total Page:16

File Type:pdf, Size:1020Kb

Annual Report 2014-2015 Annual Report 2014–2015 Corporate Information Board of Directors A K Nanda Chairman Cyrus J Guzder Vineet Nayyar Rohit Khattar Sridar Iyengar Sanjeev Aga V S Parthasarathy Radhika Shastry Kavinder Singh Managing Director & CEO (w.e.f. November 3, 2014) S Krishnan Chief Financial O!cer & Executive Director (w.e.f. January 22, 2015) Head Legal & Company Secretary Dinesh Shetty Auditors Deloitte Haskins & Sells Chartered Accountants ASV N Ramna Tower 52, Venkatnarayana Road T. Nagar, Chennai - 600 017 Bankers YES Bank Limited HDFC Bank Limited Registered O!ce Mahindra Towers, 2nd Floor, No.17/18, Patullos Road, Chennai – 600 002. Tamil Nadu, India T: +91 44 3988 1000 F: +91 44 3027 7778 E:[email protected] w: www.clubmahindra.com Registrar and Share Transfer Agents CIN: L55101TN1996PLC036595 Karvy Computershare Private Limited Karvy Selenium, Tower B, Plot 31-32, Corporate O!ce Gachibowli, Financial District, Mahindra Towers, 1st Floor Nanakramguda, ‘A’ Wing, Dr. G M Bhosale Marg, Hyderabad - 500 032 P.K. Kurne Chowk, Worli, Ph : 040 6716 2222 Fax : 040 2300 1153 Mumbai-400 018 Toll free no : 1800 345 4001 T: +91 22 3368 4722 F: +91 22 3368 4721 E-mail: [email protected] 1 Mahindra Holidays & Resorts India Limited Contents Statutory Reports Directors’ Report ..................................................................................................................................................................................................................... 3 Management Discussion and Analysis ......................................................................................................................................................................... 31 Corporate Governance Report ........................................................................................................................................................................................ 41 Financial Section Independent Auditors’ Report on Standalone Financial Statements............................................................................................................. 58 Standalone Financial Statements.................................................................................................................................................................................... 62 Independent Auditors’ Report on Consolidated Financial Statements ........................................................................................................ 97 Consolidated Financial Statements ............................................................................................................................................................................... 101 Financial Highlights for Last 5 Years ............................................................................................................................................................................ 136 2 Annual Report 2014–2015 Directors’ Report Directors’ Report to the Shareholders Your Directors are pleased to present their Nineteenth Report together with the audited accounts of your Company for the year ended March 31, 2015. 1. Operations / State of the Company’s A#airs During 2014-15, your Company performed creditably in a challenging macroeconomic environment. It added around 12,800 new members to its vacation ownership business, taking the total membership to around one lakh eighty three thousand at the end of the year. The new member addition was marginally higher as compared to the previous year, and reflects successful execution of Company’s strategy to focus on quality ‘pull’ leads from referrals and digital channels. During the year, the pace of room inventory expansion was commendable. It added another 409 units to its inventory, taking the total room inventory to 2,816 units at the end of the year. In another important development, your Company through its subsidiary Covington S.a.r.l, Luxembourg, acquired 23.32 per cent equity stake of Holiday Club Resorts Oy, Finland, Europe’s leading vacation ownership company with around 50,000 members and 30 resorts — of which 22 are in Finland, 2 in Sweden and 6 in Spain. Your Company also has a right to increase its ownership within a period of two years. This investment allows your Company to o*er member exchange opportunities and opens up growth opportunities in Europe and other international destinations. Your Company’s total income (including other income) grew marginally from `79,893 lakh in 2013-14 to `80,756 lakh in 2014- 15. Profit after taxes (PAT) declined from `9,453 lakh in 2013-14 to `7,902 lakh in 2014-15 mainly due to increase in depreciation charge by `2,738 lakh, primarily due to change in useful life of the assets, and an exceptional item of `2,188 lakh (pre-tax) written o* consequent to adjustments relating to past periods. Diluted earnings per share (EPS) was `8.98 in 2014-15, down from `10.75 in the previous year. Your Company’s consolidated total income (including other income) during 2014-15 was `82,964 lakh. The consolidated profit after taxes (PAT) was `8,122 lakh and the diluted EPS was `9.23. There are no audit qualifications in the standalone or in the consolidated financial statements by the statutory auditors for the year under review. 2. Financial Highlights (Standalone) (` Lakh) 2015 2014 Income: Income from sale of Vacation Ownership and other services 79,485 77,752 Other Income 1,271 2,141 Total Income 80,756 79,893 Expenditure : Less: Employee Cost & other expenses (61,506) (61,851) Profit before Depreciation, Interest and Taxation 19,250 18,042 Less: Depreciation (6,541) (3,803) Interest (25) (97) Profit for the year before Exceptional Item and Tax 12,684 14,142 Less: Exceptional Item (pre-tax) (2,188) - Profit for the year before Tax 10,496 14,142 Less: Provision for Tax – Current Tax (1,920) (2,910) – Deferred tax (net) (674) (1,779) Net Profit for the year after tax 7,902 9,453 Balance brought forward from earlier years 37,688 33,335 Less : Adjustment on Amalgamation of Bell Tower Resorts Private Limited (BTRPL) (4,560) - Less : Loss of BTRPL for the year 2013-14 (870) - Less : Depreciation adjustment consequent to transition to Schedule II of the Companies Act, 2013 net of deferred tax of `528 lakh (1,026) - 39,134 42,788 Appropriations: General Reserve (790) (945) Proposed Dividend on Equity Shares (3,551) (3,551) Income Tax on Proposed Dividend (723) (604) Surplus carried to Balance Sheet 34,070 37,688 3 Mahindra Holidays & Resorts India Limited 3. Dividend and Reserve Consequent to the above, BTRPL ceased to be subsidiary of the Company and all the assets and liabilities of BTRPL have Your Directors are pleased to recommend a dividend of `4/- been transferred to and vested in the Company pursuant to the per equity share of face value `10 each for the financial year Scheme of Amalgamation and Arrangement (“the Scheme”) ended March 31, 2015. The dividend, if approved at the ensuing with e*ect from April 1, 2013 (“the Appointed Date”). There was Annual General Meeting, will be paid to the shareholders whose no allotment of shares to the BTRPL equity shareholders since names appear on the register of members of the Company the BTRPL was a wholly owned subsidiary of the Company. as on the Book Closure Date. The equity dividend outgo for The amalgamation has been accounted under the ‘pooling of 2014-15, inclusive of tax on distributed profits would absorb a interest method’ referred in Accounting Standard 14 and the sum of `4,274 lakh (as compared to `4,155 lakh comprising the assets and liabilities transferred have been recorded at their dividend of `4/- per equity share paid for the previous year). book values as on the Appointed Date. Further, di*erence of ` The Board of Directors proposes to transfer `790 lakh to the 3,061 lakh between value of assets and liabilities acquired at their book value at the Appointed Date as reduced by carrying General Reserve representing around 10 per cent of the profit value of investment in the books of the Company was adjusted for the year. The balance is proposed to be retained in the in the “Amalgamation and Reserve Account” and the same was Profit & Loss Account. transferred to “Securities Premium Account” on the Appointed 4. Share Capital Date as per the approved Scheme. Further, the loss of `870 The paid up equity share capital as on March 31, 2015 was lakh of BTRPL for the year ended March 31, 2014 has been `88.78 crore. During the year under review, your Company did adjusted against the surplus in the Statement of Profit and Loss not issue shares with di*erential voting rights / sweat equity at the beginning of the year. except fresh grant issued under the Company’s Employee B) Competent Hotels Private Limited, Divine Stock Option Scheme 2014 discussed later in this report. Heritage Hotels Private Limited and Holiday Details of Directors’ shareholding as on March 31, 2015, are on Hills Resorts Private Limited mentioned in the Corporate Governance Report, which forms During the year under review, the Board approved the Scheme a part of this Annual Report. of Amalgamation and Arrangement (“the Scheme”) for merger 5. Institutional Placement Programme of Competent Hotels Private Limited, Divine Heritage Hotels Private Limited and Holiday on Hills Resorts Private Limited, (IPP) wholly owned subsidiaries (collectively referred as “Subsidiary During 2013-14, your Company had successfully carried out Companies”) of the Company with the Company. These an Institutional Placement Programme (IPP) and allotted the Subsidiary
Recommended publications
  • Merger of Tech Mahindra and Satyam Computer Services Ltd. with Special Reference to HR Issues
    IOSR Journal of Business and Management (IOSR-JBM) e-ISSN: 2278-487X, p-ISSN: 2319-7668 PP 03-06 www.iosrjournals.org Merger of Tech Mahindra and Satyam Computer Services Ltd. with special reference to HR Issues Rangana Maitra1, M. Phil (Management), M.B.A (NMIMS), M.A. (English Literature), P.G. Diploma in Personnel Management & Ms. Mayuri Asamwar 2, 1Associate Professor,IES’ Management College and Research Centre, Mumbai 2MMS, IES’ Management College and Research Centre, Mumbai Abstract: Satyam Computer Services Ltd is an Indian IT services company based in Hyderabad, India. Tech Mahindra which was ranked #5 in India's software services firms and overall #161 in Fortune India 500 list for 2011, is a is a part of Mahindra Group conglomerate with headquartered at Pune, India. Tech Mahindra Limited is a leading global systems integrator and business transformation consulting organization, focused primarily on the telecommunications industry. Satyam unveiled its new brand identity Mahindra Satyam subsequent to its takeover by the Mahindra Group's IT arm on 13 April 2009. On June 24, 2013 Tech Mahindra and Mahindra Satyam merging process completed and the name of the parent company was retained for the merged entity with a new Logo and motto. Merger was delayed due to various disputes both in India and abroad. There were quite many problems in the areas of legal and judicial issues, diverse expertise of the merged entities and also the culture between two companies. All these problems were successfully handled by the companies even while working is virtually integrated companies before the High court clearance for the merger.
    [Show full text]
  • Mahindra Everyday
    ISSUE 1, 2013 ISSUE 1, 2013 WHAT’S INSIDE? Mahindra e2o Launched: Set to Redefine the Future of Mobility World Class Tractor Plant Inaugurated in Andhra Pradesh MSSSPL’s Golden Journey Of 50 Years 8th Annual Mahindra Excellence in Theatre Awards Announced Special Feature: The Mahindra Institute of Quality Mahindra Everyday 1 ISSUE 1, 2013 CONTENTS CULTURAL COVER STORY 04 OUTREACH 35 Mahindra USA’s exciting and eventful On the art and culture front, initiatives story of growth and success, from showcased old world culture, the world’s 1994 to date. best guitar and music talent, excellence in theatre and more. INTERNATIONAL AWARDS FOR OPERATIONS 11 EXCELLENCE 40 The Mahindra Group’s international A spectrum of awards, including the action stretched from Serbia to Sri first Mahindra Sustainability awards Lanka, South Africa and elsewhere recognising diverse sustainability around the globe. initiatives, was recently presented. SECTOR BRIEFS 13 SUSTAINABILITY 47 As ever there was plenty happening Efforts and initiatives towards across sectors and in all spheres of preserving, safeguarding and sustaining action – new plants, new products, our planet and its precious resources. distinguished visitors, certifications and celebrations. Please write in to [email protected] to give feedback on this issue. ME TEAM Associate Editors: Zarina Hodiwalla, Darius Lam Soumi Rao Chandrika Rodrigues Col. Abhijit Dasgupta AS, Kandivli MLDL Mahindra Management Dev. Center Asha Sabharwal Stella Rozario AS, Nashik MTWL Santosh Tandav Mahindra Partners Shirish Kulkarni Pradeep Zoting AS, Igatpuri FES, Nagpur Vrinda Pisharody Tech Mahindra & K.P. Narsimha Rao Pavitra Kamdadai Mahindra Satyam AS, Zaheerabad MNEPL Rajeev Malik Venecia Paulose Martin Cisneros Preeti Nair MVML, Chakan Mahindra USA Mahindra Navistar Edited and Published by Roma Balwani Nitin Panday Swapnil Soudagar Pooja Thawrani for Mahindra & Mahindra Limited, Gateway Mahindra Swaraj Systech Mahindra Reva Building, Apollo Bunder, Mumbai 400 001.
    [Show full text]
  • Bio-Ulhas-N-Yargop-Mahindra-19-07
    Ulhas N. Yargop Group President (IT Sector) & Group CTO Member of the Group Executive Board Ulhas joined the Mahindra Group in 1992. He has worked since a director on the board of The United World Colleges then as General Manager – Corporate Planning, General Manager (International), a Trustee of KC Mahindra Education Trust, – Product Planning, General Manager – Mahindra-Ford Project, and Mahindra Foundation and Tech Mahindra Foundation. Treasurer. He was appointed as President, IT Sector in 1999. He assumed additional responsibility as the Group CTO in 2010 and as Ulhas has a Bachelor of Technology degree in Mechanical Chairman of the Group Sustainability Council in 2011. In 2015, he Engineering from IIT, Chennai; and an MBA from Harvard Business was redesignated as Group President for the IT Sector. School. The IT Sector includes Tech Mahindra (the 5th largest IT company in India, which acquired Satyam Computer Services in 2009) and Bristlecone (a leading supply chain consulting and implementation firm). Ulhas previously worked with GKN Automotive Inc., USA as Director of Finance and later with GKN Invel Transmissions Ltd, New Delhi as General Manager – Commercial. He also worked with The Standard Batteries Ltd, Mumbai as Vice President – Industrial. Ulhas is a Director on the boards of Tech Mahindra, Bristlecone, FixStream Technologies Inc, among others. He served on the board of Mahindra Satyam from 2009 to 2013, until it was merged with Tech Mahindra. He is a member of the Managing Committee of Harvard Business School (India) Research Center, a member of the Board of Governors of The Mahindra United World College of India, Connect with Ulhas Yargop @UlhasYargop Thank you Connect with us at www.mahindra.com Disclaimer Mahindra & Mahindra herein referred to as M&M, and its subsidiary companies provide a wide array of presentations and reports, with the contributions of various professionals.
    [Show full text]
  • Club-M-Annual-Report-2016-17.Pdf
    Corporate Information Board of Directors Committees of Board of Directors Arun Nanda, Chairman Audit Committee Corporate Social Cyrus Guzder Sridar Iyengar Responsibility Committee Vineet Nayyar Cyrus Guzder Arun Nanda Rohit Khattar Rohit Khattar Cyrus Guzder Sridar Iyengar Sanjeev Aga V S Parthasarathy Sanjeev Aga V S Parthasarathy Kavinder Singh V S Parthasarathy Radhika Shastry Nomination and Remuneration Stakeholders Relationship Kavinder Singh, Managing Director & CEO Committee Committee S Krishnan, CFO & Executive Director Arun Nanda Arun Nanda [Re-designated as Executive Director w.e.f. May 20, 2017] Vineet Nayyar V S Parthasarathy Chief Financial Officer Cyrus Guzder Kavinder Singh Akhila Balachandar Rohit Khattar Inventory Approval Committee [w.e.f. May 20, 2017] Sridar Iyengar Arun Nanda General Counsel & Strategy Review Committee Cyrus Guzder Company Secretary Arun Nanda Kavinder Singh Dinesh Shetty Cyrus Guzder Risk Management Committee Registered Office Rohit Khattar Arun Nanda Mahindra Towers, 2nd Floor, No. 17/18, Sanjeev Aga Cyrus Guzder Patullos Road, Chennai - 600002 Kavinder Singh V S Parthasarathy Tamil Nadu, India T: +91 44 39881000 F: +91 44 30277778 Investment Committee Kavinder Singh E: [email protected] Arun Nanda Committee of Directors – W: www.clubmahindra.com Cyrus Guzder Investments CIN: L55101TN1996PLC036595 V S Parthasarathy Arun Nanda Corporate Office V S Parthasarathy Loans & Investment Committee Mahindra Towers, 1st Floor, ‘A’ Wing, Cyrus Guzder Arun Nanda Dr. G.M Bhosle Marg, P.K. Kurne Chowk, Sanjeev Aga Worli, Mumbai - 400018 V S Parthasarathy Maharashtra, India Cyrus Guzder T: +91 22 33684722 F: +91 22 33684721 Sanjeev Aga Statutory Auditors Bankers Deloitte Haskins & Sells YES Bank Limited Chartered Accountants HDFC Bank Limited ASV N Ramana Tower Registrar and Transfer Agents 52, Venkatnarayana Road T.
    [Show full text]
  • SATYAM COMPUTER SERVICES LTD. SECURITIES LITIGATION This
    UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK In re: 09 MD 2027 (BSJ) (Consolidated Action) SATYAM COMPUTER SERVICES LTD. SECURITIES LITIGATION JURY TRIAL DEMANDED This Document Applies to: All Cases CONSOLIDATED CLASS ACTION COMPLAINT BERNSTEIN LITOWITZ BERGER & GRANT & EISENHOFER P.A. GROSSMANN LLP Jay W. Eisenhofer Max W. Berger Keith M. Fleischman Steven B. Singer Deborah A. Elman Noam Mandel 485 Lexington Ave., 29th Floor Michael Petrusic New York, New York 10017 1285 Avenue of the Americas, 38th Floor Tel: (646) 722-8500 New York, NY 10019 Fax: (646) 722-8501 Tel: (212) 554-1400 Fax: (212) 554-1444 Co-Lead Counsel for Plaintiffs Co-Lead Counsel for Plaintiffs BARROWAY TOPAZ KESSLER LABATON SUCHAROW LLP MELTZER & CHECK, LLP Lawrence A. Sucharow David Kessler Christopher J. Keller Sean M. Handler Louis Gottlieb Sharan Nirmul 140 Broadway 280 King of Prussia Road New York, NY 10005 Radnor, PA 19087 Tel: (212) 907-0700 Tel: (610) 667-7706 Fax: (212) 818-0477 Fax: (610) 667-7056 Co-Lead Counsel for Plaintiffs Co-Lead Counsel for Plaintiffs TABLE OF CONTENTS Page I. SUMMARY OF THE ACTION ......................................................................................... 2 II. JURISDICTION & VENUE............................................................................................... 6 III. PARTIES AND RELEVANT NON-PARTIES.................................................................. 7 A. Lead Plaintiffs....................................................................................................................
    [Show full text]
  • Tech Mahindra (TECMAH) | 529 Target : | 570 Target Period : 12 Months Potential Upside : 16% Core Communication – on Path to Recovery
    Result Update August 2, 2016 Rating matrix Rating : Buy Tech Mahindra (TECMAH) | 529 Target : | 570 Target Period : 12 months Potential Upside : 16% Core communication – on path to recovery... What’s changed? • Tech Mahindra (TechM) reported Q1FY17 earnings, which were Target Changed from | 600 to | 570 largely in line with our estimates EPS FY17E Changed from | 36 to | 34 EPS FY18E Changed from | 40 to | 38.1 • US$ revenues grew 0.9% QoQ to $1,031.5 million, largely in line with Rating Unchanged our 1% growth and $1,033 million estimate. In constant currency, revenues grew 0.4% QoQ Quarterly performance • Rupee revenues grew 0.5% QoQ to | 6,921 crore and were above Q1FY17 Q1FY16 YoY (%) Q4FY16 QoQ (%) our 0.3% QoQ growth and | 6,907 crore estimate Revenue 6,921 6,294 10.0 6,884 0.5 • At 14.9%, EBITDA margins declined 200 bps QoQ and were below EBITDA 1,029 907 13.5 1,153 (10.7) our 15.7% and 120 bps decline estimate led by higher visa fees EBITDA (%) 14.9 14.4 48 bps 16.7 -180 bps (down 100 bps) and seasonality of Comviva (down 170 bps) PAT 750 624 20.2 860 (12.8) • Reported PAT of | 750.1 crore was marginally above our | 731 crore Key financials estimate despite lower-than-expected EBITDA margin mainly due to | Crore FY15 FY16 FY17E FY18E higher other income (| 246 crore vs. | 166 crore in Q4FY16) Net Sales 22,621 26,494 29,256 32,710 Core communication reports marked improvement… EBITDA 4,192 4,277 4,740 5,397 TechM’s revenues grew 0.9% in dollar terms and 0.4% in constant Net Profit 2,628 3,073 3,265 3,660 currency terms.
    [Show full text]
  • Indian IT Firm Tech Mahindra Completes Satyam Takeover 25 June 2013
    Indian IT firm Tech Mahindra completes Satyam takeover 25 June 2013 Indian IT outsourcer Tech Mahindra on Tuesday The scandal nearly pushed Satyam into bankruptcy completed a takeover of its partly-owned unit as clients and staff exited, but Tech Mahindra, part Mahindra Satyam, creating a new force in the of Indian auto and farm equipment manufacturer sector with annual revenues of $2.7 billion. Mahindra and Mahindra, came to the rescue. The new entity will retain the name Tech Raju, once a star of India's software boom, is Mahindra—with a new logo—and be amongst India'sawaiting trial for conspiracy, cheating and forgery. top five locally-listed IT outsourcers with 540 clients, a Tech Mahindra statement said. © 2013 AFP Tech Mahindra bought a 42.7 percent stake in Hyderabad-based Satyam in April 2009 when it was on the verge of collapse following an accounting scandal. The company has since operated under the name Mahindra Satyam and has emerged from the crisis profitable, posting a net profit of 9.01 billion rupees ($152 million) for the last financial year ended March 2013. The two companies approved a full merger in March 2012. The takeover of the remaining stake involves an exchange of stocks, with Satyam shareholders receiving one Tech Mahindra share for every 8.5 Satyam shares. "Today we have fulfilled the commitment made in 2009, when we acquired Satyam, to jointly become one of the largest diversified players," said a statement from Anand Mahindra, chairman of parent group Mahindra and Mahindra. The merger comes as many of India's IT outsourcing firms are going through a rough patch, with the outlook for the industry difficult due to uncertainty in key US and European markets.
    [Show full text]
  • Sustainability and Mahindra
    S u s t a i n a b i l i t y R e v i e w 2 0 1 2 - 13 to H2 Changing the water equation Alternative Thinking has fuelled From operationalising sustainability in day-to-day activities to helping the sustainability journey of Group Companies strategically leverage sustainability for competitive Mahindra. After institutionalising a advantage - over the years, sustainability has been seeded in our business sustainability framework in the first conduct. With sustainability gaining self-momentum among Group year, in subsequent years it has Companies and the successful completion of a 5-year roadmap in just 3 years, successfully spread throughout the time is now ripe for Alternative Thinking to concentrate individually on different hierarchies of businesses. high impact material issues that affect each and every Group Company. 2007-08 Alternative Thinking 2008-09 Alternative Thinking in Action 2009-10 Alternative is Native 2010-11 Alternative is Transformative 2011-12 Alternative Accelerates Results to H2 This year marks the While carbon and energy broadly held centre stage in the sustainability narrative and featured prominently in the maiden roadmap with specific targets, water an start of a focussed equally essential resource was always retained on the radar. Programmes and and accelerated initiatives on water conservation, harvesting, reducing water intensity are now being undertaken in all earnest and are progressing at a steady pace. But rising imbalances effort to change the between availability and demand, inter-societal competition and regional conflicts water equation from will now constantly push water issues to the fore. The drought in Maharashtra brought it right to our doorstep.
    [Show full text]
  • Satyam to Pay $10 Million to Settle SEC Charges 5 April 2011
    Satyam to pay $10 million to settle SEC charges 5 April 2011 Satyam Computer Services has agreed to pay $10 principles, improve its internal audit functions, and million to settle US charges that former top hire an independent consultant to evaluate internal managers inflated the Indian company's revenue, controls. the US Securities and Exchange Commission said Tuesday. "The actions of Indian and US authorities have transformed Satyam into a new company with new The SEC, in a complaint filed in US District Court management, directors and investors and state-of- here, alleged that former top officials at Hyderabad- the art controls, resulted in criminal charges against based Satyam overstated the software firm's seven former executives and given harmed revenue, income and cash balances by more than shareholders the chance to recoup losses," Robert $1 billion over five years. Khuzami, director of the SEC's Division of Enforcement, said in a statement. They used false invoices and forged bank statements to inflate Satyam's cash balances to "This comprehensive and thoughtful response make the company appear more profitable to underscores the ability of regulators across the investors, the SEC said. globe to respond to cross-border misconduct in a coordinated manner," Khuzami said. Satyam shocked India's corporate world in January 2009 when its former chairman and founder B. The SEC action is not the only legal trouble facing Ramalinga Raju admitted he had for years Satyam in the United States. Satyam announced overstated profits and inflated the balance sheet. last month that it has agreed to pay $125 million to settle a US class action suit.
    [Show full text]
  • What Went Wrong with Satyam?
    WHAT WENT WRONG WITH SATYAM? PROFESSOR J. P. SHARMA J.P Sharma, Professor of Law & Corporate governance, Department of Commerce, Delhi School of Economics, University of Delhi WHAT WENT WRONG WITH SATYAM? INTRODUCTION Till about two decades ago corporate governance was relatively an unknown subject. The subject came into prominence in the late 80’s and early 90’s when the corporate sector in many countries was surrounded with problems of questionable corporate policies or unethical practices. Junk Bond fiasco of USA and failure of Maxwell, BCCI and Polypeck in UK resulted in the beginning of codes and standards on corporate governance. The USA, UK and number of other developed countries reacted strongly to the corporate failures and codes & standards on corporate governance came to the centre stage. Enron debacle in 2001 and number of other scandals involving large US companies such as the Tyco, Quest, Global Crossings, the World.Com and the exposure of auditing lacunae, which led to the collapse of the Andersen, triggered the reform process and resulted in the passing of the Public Accounting Reform and Investor Protection Act of 2002 known as Sarbanes- Oxley (SOX) Act, 2002 in USA. BACKGROUND On 24th June 1987, Satyam Computer Services Ltd (Popularly known as Satyam) was incorporated by the two brothers, B Rama Raju and B Ramalinga Raju 1, as a private limited company with just 20 employees for providing software development and consultancy services to large corporations (the company got converted into public in 1991). During the year 1996, company promoted four subsidiaries including Satyam Renaissance Consulting Ltd, Satyam Enterprise Solutions Pvt.
    [Show full text]
  • Press Release Tech Mahindra Limited (Revised)
    Press Release Tech Mahindra Limited (Revised) July 7, 2021 Ratings Amount Facilities Ratings Rating Action (Rs. crore) CARE AAA; Stable 275.00 Long Term Bank Facilities (Triple A; Outlook: Reaffirmed (Reduced from 375.00) Stable) CARE AAA; Stable / 1,825.00 CARE A1+ Long Term / Short Term Bank Facilities Reaffirmed (Enhanced from 1,425.00) (Triple A ; Outlook: Stable/ A One Plus ) 2,100.00 Total Bank Facilities (Rs. Two Thousand One Hundred Crore Only) Details of instruments/facilities in Annexure-1 Detailed Rationale & Key Rating Drivers The reaffirmation of ratings on the long term and short-term bank facilities of Tech Mahindra Limited (TechM) continues to factor in its strong parentage (Mahindra and Mahindra group, M&M) and qualified & experienced management team with demonstrated execution capabilities. The company continues to operate at a significantly large scale supported by its geographically diversified business operations, diversified product and service offerings with strong market position in the global information technology (IT) space, especially IN communication vertical. Its strong business position has led to consistent generation of large cash accruals leading to robust financial and liquidity metrics. Conventionally, communication vertical has been the major revenue contributor for the company which also leads to customer concentration to some extent. The company’s ability to achieve a broad-based growth through further diversification remains to be seen. Furthermore, TechM also continues to face intense competition from other prominent IT players amidst disruptive technology changes, risk associated with cyclicality in end user industries and regulatory challenges in various geographies. The ratings also factor the performance of subsidiaries.
    [Show full text]
  • Company Name
    22 JAN 2016 Company Report BUY Target Price:Rs 520 CMP : Rs 356 Potential Upside : 46% MARKET DATA No. of Shares : 89 mn Market Cap : Rs 32 bn Free Float : 25% Avg. daily vol (6mth) : 132,319 shares Mahindra Holidays & Resorts India 52-w High / Low : Rs 475 / Rs 232 Bloomberg : MHRL IB Equity MISCELLANEOUS Promoter holding : 75% FII / DII : 8% /5% Cash Machine Price performance 250 Sensex Mahindra Holidays & Resorts 200 150 100 50 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Financial summary (consolidated) Key drivers Y/E Sales PAT (Rs Con. EPS* Change RoCE EV/E FY 15 FY 16 FY 17 FY 18 Mar (Rs mn) mn) (Rs) EPS (Rs) YOY (%) P/E (x) RoE (%) (%) (x) DPS (Rs) Mem. addn. FY15 8,119 803 - 9.2 (6.7) 38.6 10.9 14.7 17.5 4.0 8% 9% 8% 8% growth FY16E 9,839 1,200 13.0 13.8 49.5 25.8 15.9 20.8 12.3 4.8 FY17E 11,514 1,600 15.4 18.4 33.3 19.4 19.0 25.6 10.0 7.4 Mem./Room 65 65 65 65 FY18E 13,423 1,972 17.6 22.7 23.3 15.7 20.9 29.1 8.3 10.2 RoCE 15% 21% 26% 29% Source: *Consensus broker estimates, Company, Axis Capital 22 JAN 2016 Company Report Mahindra Holidays & Resorts India Reminiscences of a member… MISCELLANEOUS I realized the perils of a time-crunched sell-side job when my wife threatened Holiday activities at resorts to go on holidays with the kids without me! And so I signed up for Club Mahindra (CM) after great reviews from common friends who were having enjoyable family holidays, from the smallest of extended weekends to the sacrosanct annual family vacation without fail at new exotic locations each year My first vacation at Varca beach Goa was an eye-opener.
    [Show full text]