haliakullakallo.pdf
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|Research
Fixed Deposit
ICICI Securities Limited
MMFSL is a subsidiary of Mahindra and Mahindra Ltd (M&M). Thecompany is one of Indias leading non-bank finance companies focused
on the rural and semi-urban sector. MMFSL finances purchase of utilityvehicles, tractors, cars, commercial vehicles and used vehicles in therural and semi-urban areas of India. The company primarily finance M&MUVs and tractors. The company has 547 branches as on March 2011. Ithas three subsidiaries Mahindra Insurance Brokers Ltd (MIBL), MahindraRural Housing Finance Ltd (MRHFL), Mahindra Business & ConsultingService Private Ltd (MBCSPL). MIBL undertakes direct insurance brokingbusiness, both in the life and non-life insurance segments with a focuson retail and commercial lines of businesses while MRHFL provideshousing loans in rural areas.
Fixed deposit details
The company has started accepting deposits from the public from January1, 2009. Funds that have been mobilised through deposits are to the tuneof | 943 crore from over 80,000 customers. The amount so collected isused for the fulfilment of the company objective.
Crisil Limited has upgraded the credit rating on fixed deposits to FAAA
from FAA. The FAAA credit rating by Crisil also assures high level ofsafety on the deposits.
Exhibit 1:Interest Rates OfferedNon Cumulative scheme
Period (Months)Interest p.a.*
(half Yearly)
Interest p.a.*
(Quaterly)
12 9.00% 8.90%
24 9.75% 9.65%
36 10.00% 9.90%
48,60 9.50% 9.40%
Minimum Amount (`) 25000 50000
Cumulative Scheme:
Minimum AmountPeriod
(Months)Amount Payable (`) Interest * p.a.
`10,000 12 10,925 9.25%
18 11,510 9.75%
24 12,100 10.00%
36 13,401 10.25%48 14,508 9.75%
60 15,923 9.75% * Senior Citizens / Shareholders / Employees will get an additional rate of 0.25% per annum
Source: Company, ICICIdirect.com
Company Operations
The companys disbursement registered a growth of 62% at | 14420 crorefor the year ended March 31, 2011 as compared to | 8915 crore during thesame period of the previous year. M&MFSL currently has a network of 547offices and total asset under management crosses US$3 billion. On acumulative basis, the number of customer contracts increased by 30.9%from 11,89,848 as on March 31, 2010 to 15,57,622 as at March 31, 2011.
Mahindra & Mahindra Financial Services Ltdting matrix
isil Rating : FAAA
sue Detailstions Non Cumulative
Cumulative
erest Payments Half Yearly
mature Withdrawal Not before 3 Months
3-6 Months Nil
After 6 Months
Interest Rate will be
less by 2% for which
the deposit is run.
an against deposit Up to 75% of the
deposit amountcarrying interest@2%
per annum (at half
yearly rests), provided
such deposits has run
for a minimum period
of three months.
bjects of the Issue
filment of company objective to finance purchase of utility
hicles, tractors, cars, commercial vehicles and used vehicles in
rural and semi-urban areas of India
nancial Summary
Crore FY08 FY09 FY10
ome From
erations
1205 1364 1530
her income 21 19 38
tal Net Income 1226 1384 1569
T 272 325 520
T 177 214 343
nalysts namechin Jain
eetal Ashar
eetal.ashar@icicisecurities,com
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ICICIdirect.com|ResearchPage 3
CICI Securities Limited
Pankaj Pandey Head Research [email protected] Research Desk,ICICI Securities Limited,7th Floor, Akruti Centre Point,MIDC Main Road, Marol NakaAndheri (East)Mumbai 400 [email protected]
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