MIRA
INFORM REPORT
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Report Date : |
20.05.2011 |
IDENTIFICATION DETAILS
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Name : |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
02.08.1996 |
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Com. Reg. No.: |
08-24176 |
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Capital
Investment / Paid-up Capital : |
Rs.104.669 Millions |
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CIN No.: [Company
Identification No.] |
U50101KA1996PTC024176 |
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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 : |
Manufacturers of Tractors, Tippers, Trailers and Bus Chassis. |
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No. of Employees
: |
210 [Approximately] |
RATING & COMMENTS
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MIRA’s Rating : |
Aa (73) |
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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 27000000 |
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Status : |
Very 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 partners in a medium to long run. |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
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Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
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Registered Office : |
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Tel. No.: |
91-80-66914000 [080] |
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Fax No.: |
91-80-27965280 |
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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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Website : |
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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 |
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Factory 2 : |
7 and 8 Phase I, Peenya Industrial Area, |
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Regional Sales Offices : |
Located at: ·
· Kolkata ( Eastern Region) ·
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· Mumbai (Western Region) |
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Branches : |
Located at: ·
·
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Ahmedabad, |
DIRECTORS
As on 03.08.2010
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Name : |
Mr. Wedekind Eberhard Engelbert |
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Designation : |
Director |
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Address : |
6, Ewart Park, Singapore-279738 |
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Date of Birth/Age : |
01.05.1958 |
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Date of Appointment : |
27.11.2007 |
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DIN : |
01996929 |
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Name : |
Mr. Mrityunjaya Singh |
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Designation : |
Director |
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Address : |
D 606, Prestige St. Johns Woods Apartments, No. 80, St. John Cross Roads, Tavarekere Main Road, Bangalore-560029, Karnataka, India |
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Date of Birth/Age : |
28.02.1965 |
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Qualification : |
BE (Mechanical) PGD (Marketing) |
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Experience : |
21 Years |
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Date of Appointment : |
01.08.2008 |
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DIN : |
02289657 |
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Name : |
Mr. Narsim Shenoy |
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Designation : |
Director |
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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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DIN : |
00021373 |
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Name : |
Mr. Bo Lennart Nilson |
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Designation : |
Director |
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Address : |
Fjallbruden 136, Angered, Gothenburg-42450, |
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Date of Birth/Age : |
28.06.1955 |
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Date of Appointment : |
27.11.2007 |
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DIN : |
02004596 |
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Name : |
Mr. Giorgio Paris |
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Designation : |
Director |
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Address : |
Via Varses 40,21047, |
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Date of Birth/Age : |
16.10.1957 |
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Date of Appointment : |
13.04.2006 |
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DIN : |
00139205 |
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Name : |
Mr. Rolf Bertil Agren |
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Designation : |
Director |
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Address : |
East Gate International Apartment, 19/39, |
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Date of Birth/Age : |
06.05.1950 |
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Date of Appointment : |
17.07.2009 |
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DIN : |
02402806 |
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Name : |
Mr. Harald Jens Wergeland |
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Designation : |
Director |
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Address : |
Kullavikas Angsvag 10, |
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Date of Birth/Age : |
21.03.1963 |
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Date of Appointment : |
17.07.2009 |
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DIN : |
02362224 |
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Name : |
Mr. Jonas Casper Fogelberg |
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Designation : |
Director |
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Address : |
Onsala Pilvag, 5B, |
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Date of Birth/Age : |
02.10.1962 |
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Date of Appointment : |
17.07.2009 |
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DIN : |
02469104 |
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Name : |
Mr. Lars Arne Carlsson Lidman |
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Designation : |
Director |
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Address : |
Gibraltargatan 4 5 TR, |
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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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DIN : |
01868553 |
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Name : |
Mr. Muralidharan Angadu Mohanakrishnan |
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Designation : |
Additional Director |
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Address : |
48-AK Block, 11th |
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Date of Birth/Age : |
19.05.1960 |
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Date of Appointment : |
01.10.2010 |
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DIN : |
03279284 |
KEY EXECUTIVES
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Name : |
Mr. Laxminarayan Hegde |
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Designation : |
Director |
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Address : |
NO.15, Srisoudha, Kvs Layout, Kodigehalli, |
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Date of Birth/Age : |
15.04.1964 |
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Date of Appointment : |
03.08.2005 |
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PAN : |
AACPH2986G |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 03.08.2010
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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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10466883 |
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Volvo Holding |
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1 |
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Total |
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10466884 |
As on 03.08.2010
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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 : |
Manufacturers of Tractors, Tippers, Trailers, Bus Chassis. |
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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 up
to 90 days + Documents thru’ Banks |
PRODUCTION STATUS As on 31.03.2010
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Particulars |
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Units |
Actual
Production |
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Tractor |
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Nos. |
900 |
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Bus Chassis |
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Nos. |
558 |
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Road Machines |
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Nos. |
642 |
GENERAL INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees : |
210 [Approximately] |
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Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Price Waterhouse and Company Chartered Accountants |
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Address : |
5th Floor, Tower D, The Millenia, 1 and 2 Murphy
Road, UIsoor, Bangalore-560008, Karnataka, India |
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Memberships : |
Confederation of Indian Industry |
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Holding
Company : |
Volvo Truck Corporation, S-40508, |
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Ultimate
Holding Company |
AB |
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Fellow Subsidiaries : |
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CAPITAL STRUCTURE
AS ON 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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35,000,000 |
Equity Shares |
Rs.10/- Each |
Rs. 350.000 Millions |
|
15,000,000 |
Redeemable
Preference Shares (Note) |
Rs.10/- each |
Rs. 150.000 Millions |
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Total |
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Rs. 500.000 Millions |
Note: At the option of
the allotted, the preference shares are converted into equity shares at par or redeemable
at par after 5 year but within 20 years form the dated of issue.
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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10,466,884 |
Equity Shares |
Rs.10/-each |
Rs. 104.669 Millions |
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Note:
Of the above equity shares 10466883 (2008:
10466883) shares are held by Volvo Truck Corporation,
FINANCIAL DATA
[All figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
104.669 |
104.669 |
104.669 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
6650.619 |
5464.150 |
5366.570 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
6755.288 |
5568.819 |
5471.239 |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
0.106 |
1.750 |
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2] Unsecured Loans |
10.060 |
489.053 |
19.345 |
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TOTAL BORROWING |
10.060 |
489.159 |
21.095 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
6765.348 |
6057.978 |
5492.334 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
2397.698 |
2519.272 |
2674.848 |
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Capital work-in-progress |
30.165 |
126.674 |
58.630 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
114.247 |
259.492 |
123.749 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
3796.963 |
3764.626 |
3259.509 |
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Sundry Debtors |
2458.980 |
1986.668 |
2639.576 |
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Cash & Bank Balances |
1091.868 |
133.614 |
2638.944 |
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Other Current Assets |
176.080 |
162.080 |
116.628 |
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Loans & Advances |
2332.451 |
841.376 |
456.037 |
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Total
Current Assets |
9856.342 |
6888.364 |
9110.694 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
2251.662 |
1114.935 |
1018.637 |
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Sundry Creditors |
3113.252 |
1735.594 |
3971.788 |
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Provisions |
268.190 |
885.295 |
1485.162 |
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Total
Current Liabilities |
5633.104 |
3735.824 |
6475.587 |
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Net Current Assets |
4223.238 |
3152.540 |
2635.107 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
6765.348 |
6057.978 |
5492.334 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SALES |
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Sales and Services |
18311.000 |
18384.000 |
21644.000 |
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Other Income |
394.000 |
216.000 |
280.000 |
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TOTAL (A) |
18705.000 |
18600.000 |
21924.000 |
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Less |
EXPENSES |
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Cost of Materials |
13746.000 |
13613.000 |
14926.000 |
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Manufacturing and Other Expenses |
2547.000 |
2706.000 |
2998.000 |
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TOTAL (B) |
16293.000 |
16319.000 |
17924.000 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2412.000 |
2281.000 |
4000.000 |
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Less |
FINANCIAL
EXPENSES (D) |
4.000 |
16.000 |
26.000 |
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2408.000 |
2265.000 |
3974.000 |
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|
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
348.000 |
317.000 |
375.000 |
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PROFIT BEFORE
TAX (E-F) (G) |
2060.000 |
1948.000 |
3599.000 |
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Less |
TAX (I) |
874.000 |
650.000 |
1177.000 |
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|
|
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PROFIT AFTER TAX
(G-I) (J) |
1186.000 |
1298.000 |
2422.000 |
|
|
|
|
|
|
|
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|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
3257.000 |
2701.000 |
1988.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
200.000 |
130.000 |
484.000 |
|
|
|
Proposed Dividend including tax |
0.000 |
612.000 |
1225.000 |
|
|
BALANCE CARRIED
TO THE B/S |
4243.000 |
3257.000 |
2701.000 |
|
|
|
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Earnings in Foreign Currency : |
|
|
|
|
|
|
|
FOB Value of Exports |
58.670 |
2513.925 |
1912.041 |
|
|
|
Software Services |
307.880 |
196.370 |
164.382 |
|
|
|
Product Design Services |
625.413 |
571.923 |
366.695 |
|
|
Total Earnings |
991.963 |
3282.218 |
2443.118 |
|
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|
|
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|
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Imports : |
|
|
|
|
|
|
|
Components / Kits |
5219.559 |
5723.166 |
5104.105 |
|
|
|
Capital Goods |
47.287 |
50.818 |
25.390 |
|
|
|
Traded Items |
3547.769 |
3364.353 |
4542.556 |
|
|
|
Spare Parts (Traded) |
1307.486 |
1367.403 |
1174.668 |
|
|
Total Imports |
10122.101 |
10505.74 |
10846.719 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
113.36 |
123.98 |
-- |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
6.34 |
6.98 |
11.05 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
11.25 |
10.60 |
16.63 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
16.81 |
20.71 |
30.54 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.30 |
0.35 |
0.66 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.84 |
0.76 |
1.19 |
|
Current Ratio (Current Asset/Current Liability) |
|
1.75 |
1.84 |
1.41 |
LOCAL AGENCY FURTHER INFORMATION
Market and
Economic Scenario:
The company is affected by the global slowdown in demand and turmoil in
the financial market. Global recession has impacted the export market for commercial
vehicles including the export demand. However, the performance is improved post
September 2009 on account of various measures taken by the company.
The second half of 2009 saw stability in the company’s political
environment leading to improved investor confidence and the gradual return to
normalcy in the business. The increase in market demand is visible throughout
The strong commitment of the government of
Operations:
The company had successfully completed its thirteenth year of
operations. The sales and other income of the company have slightly decreased
by 1.33% compared to previous year. The operations have resulted in a Profit
before Tax of Rs. 2061 Millions for the years as against a profit before tax of
Rs. 1948 Millions during the previous year. Improved operating result is due to
continued focus on profitability improvement and control on overhead expenses.
Joint Venture with
Eicher Motors Limited in
The directors informed that a Joint venture had been set up in
Contingent
Liabilities:
|
Particulars |
31.03.2010 Rs.
In Millions |
31.03.2009 Rs.
In Millions |
|
Bank Guarantee |
119.385 |
145.588 |
|
Excise Duty matters disputed by the Company |
6.859 |
3.859 |
|
Service Tax Matters disputed by the Company |
16.073 |
7.109 |
|
Transfer Pricing matters disputed by the company |
294.772 |
423.418 |
|
Central Sales Tax and VAT matters disputed by the company |
208.613 |
282.403 |
|
Bonds issued by the company in favour of customs authorities, pending
assessment |
978..400 |
8808.322 |
Bankers Charges
Report as per Registry
|
Name of the company |
M/s. Volvo India
Private Limited |
|
Presented By |
The Vysya Bank
Limited. |
|
1) Date and description of instrument creating the change |
15.05.2002 Deed of
assignment of receivables. |
|
2) Amount secured by the charge/amount owing on the securities of charge |
Rs.82.088
Millions |
|
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. |
|
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. |
|
5) Name and Address and description of the person entitled to the charge. |
The Vysya Bank
Limited |
Fixed Assets:
- Land
Improvement
- Leasehold
Improvements
- Computers
- Vehicles
- Buildings
- Plant and
Machinery
- Free
- Furniture and
Fixtures
- Technical
Know-How
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.44.98 |
|
|
1 |
Rs.72.68 |
|
Euro |
1 |
Rs.64.16 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
|
73 |
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.