MIRA
INFORM REPORT
|
Report Date : |
17.11.2008 |
IDENTIFICATION
DETAILS
|
Name : |
VOLKSWAGEN INDIA PRIVATE LIMITED |
|
|
|
|
Registered Office : |
Vaklis House, 18, Sprott Road, Ballard Estate, Mumbai -400001,
Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2008 |
|
|
|
|
Date of Incorporation : |
06.02.2007 |
|
|
|
|
Com. Reg. No.: |
11-167607 |
|
|
|
|
CIN No.: [Company
Identification No.] |
U70102MH2007FTC167607 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
MUMV14433G |
|
|
|
|
Legal Form : |
Private Limited Liability Company |
|
|
|
|
Line of Business : |
Manufacturer of Four Wheelers |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
|
|
|
|
|
Maximum Credit Limit : |
USD 53000000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
The company is implementing car project in India in technical and
financial collaboration with Volkswagen AG Germany. Available information indicates high financial responsibility due to
the support of Volkswagen. Trade relations are fair. Payments are correct as per commitments. The company can be considered as a promising business partner in a
medium to long run. |
INFORMATION PARTED
BY
|
Name : |
Mr. Ritesh |
|
Designation : |
Account Department |
|
Contact No.: |
91-2135-661000/ 063 |
|
Date : |
02.07.2008 |
LOCATIONS
|
Registered Office : |
Vaklis House, 18, Sprott Road, Ballard Estate, Mumbai -400001,
Maharashtra |
|
Tel No.: |
91-21-35661058 |
|
|
|
|
Corporate Office |
110-111/10, Baner Road, Off National Highway 4, Pune-411045,
Maharashtra, India |
|
Tel No.: |
91-20-30614400 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory : |
E-1, MIDC Industrial Area, Phase III, Village Nigoje, Mahalulnge
Kharabwadi, Taluka Khed, Chakan, Pune-415001, Maharashtra, India |
|
Tel. No.: |
91-2135-661070 |
|
Fax No.: |
91-2135-661047 |
DIRECTORS
|
Name : |
Mr. Jorg Johannes Muller |
|
Designation : |
Managing Director |
|
Address : |
Hinterm Stadttor 10, Wolfsburg NA, Germany |
|
Date of Birth/Age : |
13.04.1962 |
|
Date of Appointment : |
30.06.2008 |
|
|
|
|
Name : |
Mr. Krishnaswamy K |
|
Designation : |
Managing Director |
|
Address : |
Mathrushree, 723, 8th Main, Sarakki Ext. J P Nagar, 3rd
Phase, Bangalore – 560078, Karnataka, India |
|
Date of Birth/Age : |
28.05.1955 |
|
Date of Appointment : |
21.07.2008 |
|
|
|
|
Name : |
Mr. Wallapura John Chacko |
|
Designation : |
Director |
|
Address : |
Alte Dorfstrabe 25, Waltingpfunz – 85137, NA |
|
Date of Birth/Age : |
26.03.1962 |
|
Date of Appointment : |
06.02.2007 |
|
|
|
|
Name : |
Mr. Tobias Ernst Wolfgang Busch |
|
Designation : |
Director |
|
Address : |
AM PLAN 2A, Konigsuter –
38154, NA 54 |
|
Date of Birth/Age : |
06.03.1958 |
|
Date of Appointment : |
06.02.2007 |
|
Date of Ceasing : |
03.05.2007 |
|
|
|
|
Name : |
Mr. Rainer Gehrke |
|
Designation : |
Alternate Director |
|
Address : |
Maronenweg 7, 38518, Gifriorn |
|
Date of Birth/Age : |
03.02.1949 |
|
Date of Appointment : |
18.07.2007 |
KEY EXECUTIVES
|
Name : |
Mr. Suresh Devendra Malegaonkar |
|
Designation : |
Secretary |
|
Address : |
Flat No. 6, Muktai Housing Society, Suncity Road, Saikwadi,
Wadgaonsheri, Pune – 411014, Maharashtra, India |
|
Date of Birth/Age : |
08.02.1980 |
|
Date of Appointment : |
13.12.2007 |
|
|
|
|
Name : |
Mr. Ritesh |
|
Designation : |
Account Depatment |
|
Tel. No.: |
91-2135-661000/ 063 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 29.07.2007
|
Names of Shareholders |
No. of Equity
Shares |
No. of Preference Shares |
|
Volkswagen International Finance N.V. |
96,256,931 |
-- |
|
Volkswagen AG |
1 |
971,724,552 |
|
Total |
96,256,932 |
971,724,552 |
AS ON
02.08.2008
|
Equity Share
Breakup |
|
Percentage of Holding |
|
Category |
|
|
|
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Four Wheelers |
|
|
|
|
Terms : |
|
|
Selling : |
Credit |
|
|
|
|
Purchasing : |
Credit |
GENERAL
INFORMATION
|
Bankers : |
HSBC Bank, Near Inox Theater Bangarden Road, Pune, Maharashtra, India |
|
|
|
|
Banking Relations
: |
Satisfactory |
|
|
|
|
Auditors : |
|
|
Name : |
Price Water House Chartered Accountants |
|
Address : |
Sacheta Bhawan, Gate No. 2, 1st Floor, 11-A, Vishnu
Digambar Marg, New Delhi – 110002, India |
|
|
|
|
Volkswagen International Finance N.V. Registered Office : Herengracht 495, 1017 BT Amsterdam, The
Netherlands |
|
|
|
|
|
Ultimate Holding Company : |
Volkswagen AG Registered Office : 38436, Wolfsburg, Deutschland |
CAPITAL STRUCTURE
AS ON 02.08.2008
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
96256932 |
Equity Shares |
Rs. 10/- each |
Rs. 962.569 Millions |
|
971724552 |
Preference Shares |
Rs. 10/- each |
Rs. 9717.246 Millions |
|
|
Total |
|
Rs. 10679.815 Millions
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
96256932 |
Equity Shares |
Rs. 10/-
each |
Rs. 962.569
Millions |
|
|
|
|
|
|
971724552 |
Preference Shares |
Rs. 10/-
each |
Rs. 9717.246
Millions |
|
|
Total |
|
Rs. 10679.815 Millions |
Preference Shares are held by Volkswagen AG,
the ultimate holding company. These shares carry a preferential right to fixed
rate of dividend which shall be determined mutually by the company and the preference
shareholders in accordance with the Articles of Association and will be
redeemed at par at any time before the expiry of twenty years form the date of
allotment.
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
|
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
|
10679.815 |
|
|
2] Share Application Money |
|
|
0.000 |
|
|
3] Reserves & Surplus |
|
|
0.000 |
|
|
4] (Accumulated Losses) |
|
|
[7.610] |
|
|
NETWORTH |
|
|
10672.205 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
|
0.000 |
|
|
2] Unsecured Loans |
|
|
0.000 |
|
|
TOTAL BORROWING |
|
|
0.000 |
|
|
DEFERRED TAX LIABILITIES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
10672.205 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
|
824.375 |
|
|
Capital work-in-progress |
|
|
2009.324 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
0.000 |
|
|
DEFERREX TAX ASSETS |
|
|
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
0.000 |
|
|
Sundry Debtors |
|
|
9.464 |
|
|
Cash & Bank Balances |
|
|
8707.144 |
|
|
Other Current Assets |
|
|
95.728 |
|
|
Loans & Advances |
|
|
117.954 |
|
Total
Current Assets |
|
|
8930.290 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
|
|
1086.438 |
|
|
Provisions |
|
|
5.346 |
|
Total
Current Liabilities |
|
|
1091.784 |
|
|
Net Current Assets |
|
|
7838.506 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
10672.205 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
|
31.03.2008 |
|
|
Technical
Service Income |
|
|
26.009 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
|
|
(7.240) |
|
|
Provision for Taxation |
|
|
0.370 |
|
|
Profit/(Loss) After Tax |
|
|
(7.610) |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Employees Costs |
|
|
12.830 |
|
|
Administrative and Other Expenses |
|
|
20.130 |
|
|
Depreciation & Amortization |
|
|
0.289 |
|
Total Expenditure |
|
|
33.249 |
|
KEY RATIOS
|
PARTICULARS |
|
|
|
31.03.2008 |
|
PAT / Total Income |
(%) |
|
|
(29.26) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
|
|
(27.84) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
|
|
(0.07) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
|
|
0.00 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
|
|
0.10 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
|
|
8.18 |
LOCAL AGENCY
FURTHER INFORMATION
OPERATIONS
During the year, the only revenue was from Interest on fixed deposits
and Income from services rendered which was Rs. 470.190 Millions and Rs. 26.010
Millions. The company has transferred interest income [net of taxes] of Rs.
312.83 Millions, to Incidental expenditure pending capitalization / Allocation
account.
MARKET / BUSINESS
OVERVIEW
Volkswagen become number one in the European car market decades ago and
continues to do so through exceptional value for money and premium products,
which are reliable and of high quality. Volkswagen is known in Europe for its
extraordinary services and high customer satisfaction.
Volkswagen paved the way for sustainable market activities in India.
With the investment agreement signed at the end of 2006 the brand sets a new
course that unites two success stories – Volkswagen and India – in a common
future.
Subject was formed to build a new production plat in Pune in the Indian
sate of Maharashtra. A full production plant with a press shop, body shop,
paint ship and assembly lines is to be built on the 230 hectare site in the
Chaken Industrial Area near Pune. The German brand and Europe’s largest
automotive manufacturer entered the Indian market to meet the rapidly growing
demand for mobility. Volkswagen India will be developing a vehicle in the
foreseeable future specifically tailored to the needs of the Indian market
offering all the features of a genuine Volkswagen.
FIXED ASSETS
- Leasehold
Land
- Factory
Building
- Computers
- Office
Equipments
- Electrical
Fittings
- Furniture and
Fixtures
- Vehicles
AS PER WEBSITE
History
When in 1937 the company known as "Gesellschaft zur Vorbereitung des Deutschen Volkswagens mbH"
was founded, no one could have guessed that it would
one day be Europe's largest carmaker. The history
of the company - with all its trials and tribulations - is first and foremost a story of
impressive success.
1937-1945
On May 28th, 1937
the "Gesellschaft zur Vorbereitung
des Deutschen Volkswagens mbH" company is founded,
and on September 16th, 1938 it is renamed "Volkswagenwerk GmbH". In
early 1938, in what is today Wolfsburg, work begins on construction of the
Volkswagenwerk plant which is to house production of the new vehicle designed
by Ferdinand Porsche.
During the Second World War Volkswagenwerk's production is switched to
armaments. Some 20,000 forced labourers, prisoners of war, and later also
concentration camp prisoners, work at the plant.
In September 1998, in recognition of the events of that time, VOLKSWAGEN AG
established a humanitarian fund on behalf of the forced labourers compelled to
work at Volkswagen during the Second World War. By the end of 2001 more than
2,050 people in 26 countries had received humanitarian aid from the fund. Furthermore,
a Memorial in remembrance of the forced labour employed at the Volkswagenwerk
plant is currently being established at Wolfsburg, involving contributions from
present-day Volkswagen
apprentices.
1945-1949
After the end of the Second World War, in mid June 1945,
responsibility for Volkswagenwerk is placed in the hands of the British
Military Government. Under the management of Major Ivan Hirst, mass production
of the Volkswagen Beetle is started.
1949-1960
On March 8th, 1950 the Type 2 goes into production,
expanding the company's product range. The Volkswagen Bus, still today known to many as the "VW
Bully", soon creates rising demand thanks to its multifunctional capabilities. In 1956 a separate manufacturing
base for the Transporter is established in Hanover, at the same time setting
down the roots of today's Volkswagen Commercial Vehicles brand.
In 1955 employees and dealers from Germany and abroad celebrate the production
of the one millionth Volkswagen
Beetle in Wolfsburg.
1960-1980
On February 17th, 1972 Volkswagen breaks the world car
production record: with 15,007,034 units assembled, the Beetle surpasses the
legendary mark achieved by the Ford Motor Company's Model T, popularly known as the "Tin Lizzy",
between 1908 and 1927.
In 1973 the Passat is the first
model of the new generation of Volkswagen vehicles to go into production - with
front-wheel drive, a water-cooled four-cylinder engine and a range of engines
up to 110 bhp. The Passat is built in line with the modular strategy, by which
standardised components usable in a range of different models provide
significant rationalisation.
In January 1974 the first
Golf is built at the Wolfsburg plant. The compact saloon quickly becomes a hit,
and advances to become the legitimate heir to the legendary Beetle. The same
year also sees the launch of the sporty Scirocco, which was to continue in
production until 1981.
In 1976 the first Golf GTI rolls
off the production line. The car, with its110 bhp engine, creates a real furore
on the roads - and lays the foundations for the birth of a legend.
1980-1990
In June 1983 production of the second-generation Golf
begins. The car is designed for a largely automated assembly process, and in
the specially erected final assembly hall, designated Hall 54, robots are
deployed for the first time in
vehicle manufacture.
1990-2000
With the production launch of the Lupo 3L TDI, the first production car to offer fuel
consumption of just three litres per 100 kilometres, in July 1999, Volkswagen once
again makes automotive history.
2000-2003
In August 2002, at Volkswagen Slovakia, a.s. in Bratislava,
mass production of the Touareg, a luxury-class off-road vehicle, is started,
marking the Volkswagen brand's move into an entirely new market segment.
In December 2002 the "Auto 5000 GmbH" company, operating a plant at the
Group's site in Wolfsburg, starts production of the Touran compact van. A
special collective pay model has been developed, aimed at implementing lean
production and involving flat hierarchies, team working, flexible working hours
and the deployment of more process expertise by the workforce.
In 2003 production of the fifth-generation Golf is started,
embodying a new dynamism in its
design and engineering.
PRESS RELEASE
Volkswagen became number one in the European car market decades ago and
continues to do so through exceptional value for money and premium products,
which are reliable and of high quality. Volkswagen is known in Europe for its
extraordinary services and high customer satisfaction.
Recently Volkswagen paved the way for sustainable market activities in India.
With the investment agreement signed at the end of 2006 the brand sets a new
course that unites two success stories – Volkswagen and India – in a common
future.
Volkswagen AG is to build a new production plant in Pune in the Indian
state of Maharashtra. With investment totalling some 410 million euros, a full
production plant with a press shop, body shop, paint shop and assembly lines is
to be built on the 230 hectare site in the Chakan industrial park near Pune.
The German brand and Europe’s largest automotive manufacturer will be entering
the Indian market to meet the rapidly growing demand for mobility. Volkswagen
will be developing a vehicle in the foreseeable future specifically tailored to
the needs of the Indian market offering all the features of a genuine
Volkswagen. It is essential to ensure “Volkswagen quality built in India” as a
genuine unique selling proposition and a symbol of quality.
For the first step the Volkswagen brand will bring locally
produced vehicles to the Indian market
up from the third quarter of 2007. To accompany the growing supply of Volkswagen Passenger Cars, the Group
has established a separate Indian sales company in 2007, initially for Volkswagen as well as for Audi. “Volkswagen Group Sales India Private
Limited” registered in Mumbai will distribute locally manufactured and imported
vehicles in India.
Thus, Volkswagen can bring one of it's upper-premium sedan as the
first locally produced vehicle to the Indian market. In April 2006, Volkswagen
produced the 14 millionth of its bestseller. The Passat has become the very
image of automotive progress, representing what “Made in Germany” means. This
long-term success is confirmed by numerous accolades from experts, journalists
and customers who have put the car
through its paces in recent months. This image is characterized by vehicle
size, drive technologies, safety features such as airbags, ABS and ESP in
addition to quality details including galvanized bodies. Imported vehicles such
as the premium Sports Utility Vehicle Touareg will complement the range.
In addition to the model and production plans, an exclusive dealer network will
be set up in the country's main areas of demand. With an attractive model range
available, Volkswagen is not
only laying the foundation for a substantial increase in sales but also doing
the groundwork for offering a first-class all-round service, taking customer
satisfaction to the highest level.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
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.49.46 |
|
UK Pound |
1 |
Rs.73.17 |
|
Euro |
1 |
Rs.62.96 |
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. |
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 |
|