MIRA
INFORM REPORT
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Report Date : |
04.07.2007 |
IDENTIFICATION DETAILS
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Name : |
VOLVO INDIA PRIVATE LIMITED |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
02.08.1996 |
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Com. Reg. No.: |
08-24176 |
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CIN No.: [Company
Identification No.] |
U85110KA1996PTC024176 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BLRV03081B |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
The company is engaged in manufacturing of heavy
commercial vehicles with gross vehicles weight of 16 tons & upward |
RATING & COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 17094576 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a part
of The company can
be considered good for any normal business dealings. It can be regarded as a
promising business partner in a medium to long run. |
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LOCATIONS
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Registered Office : |
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Tel. No.: |
91-80-56914000 |
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Fax No.: |
91-80-7965280 |
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E-Mail : |
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Website : |
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Area : |
10 acres |
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Location : |
Owned |
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Corporate Office : |
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Tel. No.: |
91-80-22266426-28 / 22228446 |
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Fax No.: |
91-80-22284448 / 22250721 |
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E-Mail : |
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Area : |
2000 sq. fts |
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Location : |
Rented |
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Factory 1 : |
Yalachahally, Tavarekere P.O., |
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Tel. No.: |
91-80-27965251/58/59 |
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Fax No.: |
91-80-27965233 |
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E-Mail : |
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Area : |
10 acres |
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Location : |
Owned |
DIRECTORS
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Name : |
Mr. Claes Svedberg |
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Designation : |
Chairman |
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Address : |
Odensvagen 43362,
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Date of Birth/Age : |
25.10.1957 |
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Date of Appointment : |
13.03.2002 |
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Name : |
Mr. Narsim Shenoy |
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Designation : |
Vice Chairman |
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Address : |
No. 33, |
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Date of Birth/Age : |
26.04.1931 |
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Date of Appointment : |
09.04.1997 |
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Name : |
Mr. Eric Leblanc |
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Designation : |
Managing Director |
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Address : |
Villa No. 20, Phase I, Adarsh Palm, Meadows, Airport Whilefield Road, Ramagondanahalli, Bangalore – 560 066. |
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Date of Birth/Age : |
28.04.1958 |
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Qualification : |
MBA |
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Experience : |
16 Years |
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Date of Appointment : |
02.02.2005 |
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Name : |
Mr. Bo Vilhelm Gustavsson |
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Designation : |
Director |
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Address : |
Kutterspaansgatan, 20 416 80, |
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Date of Birth/Age : |
08.10.1952 |
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Date of Appointment : |
13.03.2002 |
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Name : |
Mr. Lars Lidman |
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Designation : |
Director |
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Address : |
Corta Sawdelswagatan 412 73, Gothenburg, |
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Date of Birth/Age : |
17.09.1954 |
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Date of Appointment : |
04.08.1998 |
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Name : |
Mr. Rune Lund Berg |
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Designation : |
Director |
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Address : |
Fastningsvagen 1, SE 405 08, |
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Date of Birth/Age : |
25.11.1950 |
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Date of Appointment : |
14.03.2005 |
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Name : |
Mr. Ake Niklasson |
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Designation : |
Director |
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Address : |
Bokskogsbacken 66, S – 42256, |
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Date of Birth/Age : |
12.05.1953 |
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Date of Appointment : |
14.03.2005 |
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Name : |
Mr. Vincent Tan Sin Tiah |
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Designation : |
Director |
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Address : |
5, Siak, |
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Date of Birth/Age : |
30.09.1961 |
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Date of Appointment : |
16.09.2004 |
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Name : |
Mr. Orvar Malte Lundberg |
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Designation : |
Director |
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Address : |
Lovstigen 3, S – 433, 60 Savedalen, |
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Date of Birth/Age : |
02.09.1943 |
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Date of Appointment : |
09.04.1997 |
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Name : |
Mr. Glorgio Paris |
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Designation : |
Director |
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Address : |
Via Varses 40,21047, |
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Date of Birth/Age : |
15.10.1967 |
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Date of Appointment : |
26.11.2003 |
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Name : |
Mr. Edvard Carleson |
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Designation : |
Director |
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Name : |
Mr. Ulf Nordqvist |
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Designation : |
Director |
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Name : |
Mr. J. V. Thakker |
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Designation : |
Directors |
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Name : |
Mr. Bijesh Thakker |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Laxminarayan Hegde |
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Designation : |
Company Secretary |
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Address : |
No. 26/51, 8th Cross-, Swimming Pool Extension,
Malleswaram, |
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Date of Birth/Age : |
15.04.1964 |
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Date of Appointment : |
03.08.2005 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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Volvo Truck Corporation, |
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104668 |
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Volvo Holding |
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1 |
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Volvo Truck Corporation |
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106241 |
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Mr. Biesh Thakker |
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1 |
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Mr. J. V. Thakker |
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1 |
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Total |
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2 |
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Category |
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Percentage of Holding |
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Foreign Holding (Foreign institutional investors Foreign companies(S), foreign financial institution, Non- resident(s) or Overseas corporate bodies |
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100.00 |
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Total |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
The company is engaged in manufacturing of heavy
commercial vehicles with gross vehicles weight of 16 tons & upward |
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Products : |
"VOLVO" |
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Imports : |
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Countries : |
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Terms : |
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Selling : |
Advance against Bookings terms |
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Purchasing : |
Credit
upto 90 days + Documents thru’ Banks |
PRODUCTION STATUS
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Particulars |
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Installed
Capacity |
Actual
Production |
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Tractors |
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500 Nos. |
347 Nos. |
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Trailers |
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500 Nos. |
101 Nos. |
GENERAL INFORMATION
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Suppliers : |
Ø
Volvo Truck Corporation, Ø
Sundaram Clayton Limited, Chennai, Tamil Ø
Radials International Limited, Ø
Brakes ( Ø
Z. F. Steering Gears Limited, Ø
ELF Ø
ELF Lubricants, |
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Customers : |
Ø
Transport Corporation of India Limited,
Secunderabad, Ø
ACT India Limited, Chennai, Tamil Ø
Kondapallai Transports Private Limited, Ø
Mittal Road Carriers Private Limited, Mumbai, Ø
Karnataka State Road Transport Corporation
Limited, |
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No. of Employees : |
210 |
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Bankers : |
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Vysya Bank, Overseas Branch, v
Standard Chartered Grindlays Bank, M. G.
Bangalore, [The company is reported to enjoy substantial facilities amounted to Rs.75 millions from
its banker] |
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Facilities : |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
M/s Chartered Accountants |
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Address : |
Mittal Towers, 10th Floor, C Wing, 47/6, M |
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Memberships : |
Confederation of Indian Industry |
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Holding
Company : |
v
Volvo Truck Corporation, v
AB |
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Associates/Subsidiaries : |
v Volvo Truck India Private Limited v Volvo Bus India Private Limited v Volvo Car India Private Limited v Volvo Penta India Private Limited v PSC Electronics India Private Limited v
Volvo Truck Australia Private Limited, v
Volvo v
Volvo Motor Graders Limited, v Volvo Information Technology GB Limited, Great Britian v
Volvo Construction Equipment, v
Volvo Information Technology , v
Volvo Trucks North America Inc., v
Volvo Construction Equipment, v
Volvo East Asia Pte Limited, v
Volvo Parts Corporation, v
Volvo Bus Corporation, v
Volvo Information v
Celero v
Volvo Wheel Loaders AB, v
Volvo Logistics AB v
Volvo Penta Corporation, v
Volvo Powertrain Corporation, v
Volvo Europa v
Renult Vehicules Industries, v
Volvo IT v
Volvo Parts North America Inc., v
Volvo East Asia Sdn. Bhd. |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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35000000 |
Equity Shares |
Rs.10.00 each |
Rs. 350.000 Millions |
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15000000 |
Redeemable Preference Shares (Note) |
Rs.10.00 each |
Rs. 150.000 Millions |
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TOTAL |
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Rs. 500.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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10466884 |
Equity Shares [Note (c) |
Rs.10.00 each |
Rs. 104.668 Millions |
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10624000 |
0% Optionally Convertible/ Redeemable
Preference Shares [Note (a) & (b)] |
Rs.10.00 each |
Rs. 106.240 Millions |
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TOTAL |
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Rs. 210.908 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.12.2006 |
31.12.2005 |
31.12.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
104.669 |
210.910 |
210.909 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
4168.975 |
2735.194 |
1843.537 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
4273.644 |
2946.104 |
2054.446 |
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LOAN FUNDS |
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1] Secured Loans |
7.922 |
16.152 |
18.677 |
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2] Unsecured Loans |
22.360 |
12.856 |
0.000 |
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TOTAL BORROWING |
30.282 |
29.008 |
18.677 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
4303.926 |
2975.112 |
2073.123 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
690.625 |
744.624 |
772.015 |
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Capital work-in-progress |
0.000 |
7.428 |
8.723 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
46.786 |
0.734 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
2412.864
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1641.563 |
678.372 |
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Sundry Debtors |
1811.865
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786.277 |
477.010 |
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Cash & Bank Balances |
2031.548
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2780.083 |
320.850 |
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Other Current Assets |
70.040
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58.827 |
0.000 |
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Loans & Advances |
508.568
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1332.467 |
78.574 |
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Total
Current Assets |
6834.885
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6599.217 |
1554.806 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
3180.149
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3537.715 |
855.051 |
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Provisions |
88.221
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839.176 |
88.143 |
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Total
Current Liabilities |
3268.370
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4376.891 |
943.194 |
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Net Current Assets |
3566.515
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2222.326 |
1292.387 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
4303.926 |
2975.112 |
2073.123 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.12.2005 |
31.12.2004 |
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Sales Turnover |
9675.585 |
5770.898 |
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Other Income |
175.720 |
133.776 |
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Total Income |
9851.305 |
5904.765 |
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Profit/(Loss) Before Tax |
2446.745 |
1254.740 |
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Provision for Taxation |
1608.748 |
811.982 |
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Profit/(Loss) After Tax |
837.997 |
442.758 |
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Earnings in Foreign Currency : |
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Export Earnings |
0.000 |
0.000 |
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Total Earnings |
0.000 |
0.000 |
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Imports : |
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Raw Materials |
0.000 |
0.000 |
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Total Imports |
0.000 |
0.000 |
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Expenditures : |
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Raw Material Consumed |
2688.990 |
1402.394 |
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Purchases made for re-sale |
2738.007 |
1835.988 |
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Salaries, Wages, Bonus, etc. |
202.132 |
145.524 |
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Managerial Remuneration |
8.288 |
3.219 |
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Payment to Auditors |
2.108 |
1.991 |
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Interest |
5.758 |
2.711 |
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Insurance Expenses |
10.453 |
10.644 |
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Power & Fuel |
16.764 |
13.708 |
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Other Expenditure |
1733.258 |
1232.772 |
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Total Expenditure |
7405.758 |
4648.951 |
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KEY RATIOS
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PARTICULARS |
|
31.12.2006 |
31.12.2005 |
31.12.2004 |
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PAT / Total Income |
(%) |
NA |
8.50 |
7.49 |
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Net Profit Margin (PBT/Sales) |
(%) |
NA |
25.28 |
21.74 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
NA |
0.33 |
28.30 |
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Return on Investment (ROI) (PBT/Networth) |
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NA |
0.83 |
2.87 |
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Debt Equity Ratio (Total Liability/Networth) |
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0.77 |
1.45 |
1.15 |
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Current Ratio (Current Asset/Current Liability) |
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2.09 |
1.51 |
1.54 |
LOCAL AGENCY FURTHER INFORMATION
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Name of the company |
M/s. Volvo India
Private Limited |
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Presented By |
The Vysya Bank
Limited. M/s. Volvo India
Limited |
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1) Date and description of instrument creating the change |
15.05.2002 Deed of assignment of receivables. |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs.82.088
Millions |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
Charge by way of
Assignments of Receivables belonging to the Company and Receivables from
Persons as detailed in Schedule I to the Agreement. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Rate of Interest
and Other Terms and Conditions as Specified by the Bank. Assignor will be
holding all such Original documents and Materials for the Benefits of the
Assignee in trust. |
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5) Name and Address and description of the person entitled to the charge. |
The Vysya Bank
Limited M.G. road Branch,
M.G. Road, Bangalore-50 001. (A Banking Company) |
HISTORY
Subject was incorporated on
The Registered Office of the company has been shifted to
The Company became deemed public limited liability company w.e.f. 31st March, 2000 and subsequent to the Company Act, 1956 amendments the company converted itself into a private limited liability company w.e.f. 8th March, 2001.
BUSINESS
The company is engaged in manufacturing of heavy commercial vehicles with gross vehicles weight of 16 tons & upward.
The company started its commercial production from July, 1998.
The company imports critical components & machinery from
Subject sells its products under the brand name "VOLVO".
Subject has collaboration with Volvo Truck Corporation,
Operations:
The company successfully completed its ninth
year of operations & the directors are pleased to report that the sales
& other income of the company have been extremely god. The operations have
resulted in a profit of Rs. 2445.750 Millions for the year as against a profit
of Rs. 1254.740 Millions during the previous year.
The Board has
recommended a final dividend of Rs. 60 per share. The total payout of dividend
for the year ids Rs. 716.09 Million including dividend tax of Rs. 88.08
Million.
Fixed Assets:
·
Land
·
Land Development
·
Buildings
·
Plant &
Machinery
·
Free
·
Leasehold
Improvement
·
Furniture &
Fixtures
·
Technical
Know-How
As Per Web Site:
It’s been over 75 years since the first Volvo truck was built back in 1928. Today Volvo is the second largest producer of heavy trucks, creating reliable transport solutions for clients all over the world.
On the site, you can learn about our approach to Safety, Quality and Environment, which are the true foundations of the solutions we offer. You can also find out if there’s a job for you at Volvo Trucks in our careers section. And while you’re here, don’t miss our digital giveaways.
DECADES OF DRIVING
PROCESS
The history of the truck is a very exciting one, especially as the importance of truck transportation continues to grow.
When Volvo produced its first truck, back in the late 1920s, trucks were regarded as being just a complement to horse-drawn wagons, the railways and sea transportation. Today, the truck has become the main tool for transportation of goods, essential if modern society is to function properly.
Here is the history of our trucks, decade by decade. We would venture to suggest that, in many respects, it is also the story of how the modern truck has developed.
Press release:
Bilaspur team for Volvo Adventure Global Finals
Volvo in
(http://www.volvoadventure.org 2007 for youngsters in
Bilaspur has won the first prize this year in a closely held competition
among 55 schools all over the
Country. Their project ‘Dissolution of Traffic Chaos’ secured the highest
scores amongst all the Indian
Projects and received accolades from the judges for their analysis,
planning, action and the successful
Outcome. Commenting on the project, Prof Madhav Gadgil mentions, “This is
a very good practical
Project”. This team will represent the country for the Global Finals in
The winning team from
“Volvo initiated this Global environmental award to encourage young people to
proactively participate in environmental education programs and gain
International recognition through their local initiatives. It helps us
reiterate our commitment to the environment and brings us closer to our vision
of approaching problems in a co-operative manner between industry, society and
various associations. This year’s winner focus on a common problem of traffic
chaos in our cities and are proving that simple, but well-co-coordinated
planning, can go a long way in streamlining traffic – which in turn has a
profound impact on our environment and of course safety on the road too. I
would like to congratulate the students from
Runners Up
Following the winning team, there are two joint runners up teams – ‘Waves’ from
Cheriazheekal, Kerala and Team SLAM (
The Volvo Adventure Project
The finalists have been selected by eminent judges of global
standing in the field of environment including Prof Madhav Gadgil in
The national winners get an all expenses paid trip to attend Volvo Adventure Conference
in Sweden, present their environmental project and practical action to a jury
of International experts, show their project to the world by publishing it on
the Volvo Adventure Project/ Website and win a $10,000, $6,000 or $4,000 prize
to fund the environmental project.
The projects have been rated on four criteria: fact-finding and local research,
planning of practical environmental action, describe vision and target for
environmental improvement and involvement of youngsters in the project.
The Volvo Adventure Programme started back in 2002 and is now running for the
sixth consecutive year. It is a joint project run by the Volvo Group, Volvo Car
Corporation and United Nations Environment Programme (UNEP) to recognize and
reward practical environmental action being taken by young people in their
local community. Volvo Adventure is open to young people around the world aged
between 13 and 16 years. Teams must constitute between two to five young people
with one adult as supervisor. The Volvo Adventure Competition culminates with
the Volvo Young Environmentalists Awards.
Earlier winners from
In 2006, the finalist from India TVS HSS School,
In 2002 & 2003, the Volvo Young Environmentalists Award was bagged by the
Indian Team. This is remarkable, considering that there were over 30 contesting
teams from around the world, on both occasions. In 2002, the team representing
India–Team Little Eco-Friends from St. Josephs Indian High School,
In 2004, a team representing
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 records 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. 40.49 |
|
|
1 |
Rs. 81.77 |
|
Euro |
1 |
Rs. 55.18 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
72 |
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 |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average/normal. |
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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|