MIRA
INFORM REPORT
|
Report Date : |
27.03.2012 |
IDENTIFICATION DETAILS
|
Name : |
VOLVO BUSES INDIA PRIVATE LIMITED (w.e.f.30.05.2008) |
|
|
|
|
Formerly Known
As : |
VOLVO BUS BODY TECHNOLOGY INDIA PRIVATE LIMITED |
|
|
|
|
Registered
Office : |
Yalachahally, Tavarekere Post, Hosakote Taluka, Bangalore-562122,
Karnataka |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
28.11.2006 |
|
|
|
|
Com. Reg. No.: |
08-041071 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 388.600 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U34201KA2006FTC041071 |
|
|
|
|
Legal Form : |
Private Limited Liability Company |
|
|
|
|
Line of Business
: |
Manufacturer
of luxury buses,
trucks and construction equipment |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
B (27) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 100000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having moderate track. Profitability
of the company is under pressure. There appears huge accumulated losses
recorded by the company. However, trade relations are reported as fair.
Business is active. Payments are reported to be slow. The company can be considered for business dealings with some caution.
|
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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office / Service
Workshop : |
Yalachahally, Tavarekere Post, Hosakote Taluka, Bangalore-562122,
Karnataka, India |
|
Tel. No.: |
91-80-67121200 / 7965251 – 60 / 7965204 |
|
Fax No.: |
91-80-67121222 / 7965204 |
|
E-Mail : |
DIRECTORS
AS ON 30.09.2011
|
Name : |
Mr. Rune Edvard Lundberg |
|
Designation : |
Director |
|
Date of Appointment : |
28.11.2006 |
|
DIN No.: |
02001613 |
Other Directorship:
|
S.No. |
CIN |
Name
of the Company |
Current
designation of the director |
Date
of appointment at current designation |
Original
date of appointment |
Date
of cessation |
Company
Status |
Defaulting
status |
|
1 |
U50101KA1996PTC024176 |
VOLVO
INDIA PRIVATE LIMITED |
Director |
14-03-05 |
14-03-05 |
09-10-07 |
Active |
NO |
|
2 |
U34201KA2006FTC041071 |
VOLVO
BUSES INDIA PRIVATE LIMITED |
Director |
28-11-06 |
28-11-06 |
- |
Active |
NO |
|
Name : |
Mr. Akash Passey |
|
Designation : |
Managing Director |
|
Address : |
Tjadergatan 27, Vastra Frolunda, Gothenberg, Sweden-42669 |
|
Date of Birth/Age : |
26.11.1967 |
|
Date of Appointment : |
28.11.2006 |
|
DIN No.: |
01198068 |
Other Directorship:
|
S.No. |
CIN |
Name
of the Company |
Current
designation of the director |
Date
of appointment at current designation |
Original
date of appointment |
Company
Status |
Defaulting
status |
|
1 |
U34201KA2006FTC041071 |
VOLVO
BUSES INDIA PRIVATE LIMITED. |
Managing
director |
15-01-08 |
28-11-06 |
Active |
NO |
|
2 |
U91110DL2008NPL177380 |
SWEDISH
CHAMBER OF COMMERCE INDIA |
Director |
17-05-10 |
17-05-10 |
Active |
NO |
|
Name : |
Mr. Anders Mathias Arvidsson |
|
Designation : |
Director |
|
Address : |
Fassbergsgatan 13B, Molndal, Gothernverg, Sweden-043169 |
|
Date of Birth/Age : |
14.03.1971 |
|
Date of Appointment : |
28.11.2006 |
|
DIN No.: |
01759357 |
|
|
|
|
Name : |
Ms. Karl Dan Lerstrom |
|
Designation : |
Director |
|
Address : |
Floravagen 8, Lerum-44331 |
|
Date of Birth/Age : |
17.02.1956 |
|
Date of Appointment : |
21.12.2010 |
|
DIN No.: |
03382712 |
KEY EXECUTIVES
|
Name : |
Mr. Kempalingaiah Ramamurthy |
|
Designation : |
Secretary |
|
Address : |
#132, Studio Udayaravi Kalappa Block, Srinagar, Bangalore-560050,
Karnataka, India |
|
Date of Birth/Age : |
01.10.1968 |
|
Date of Appointment : |
18.09.2007 |
|
Pan No.: |
AGKPR7188Q |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2011
|
Names of Shareholders |
No. of Shares |
|
Volvo Bus Corporation, Sweden |
38859999 |
|
Volvo Holding Corporation, Sweden |
1 |
|
Total |
38860000 |
AS ON 30.09.2011
|
Equity Shares
Break Up |
Percentage |
|
Foreign holdings( Foreign institutional
investor(s), Foreign companie(s) Foreign financial institution(s),
Non-resident Indian(s) or Overseas Corporate bodies or Others |
100.00 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer
of luxury buses,
trucks and construction equipment |
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
31.03.2011 |
|
Installed
Capacity |
Nos. |
1000 |
|
|
|
|
|
Actual
Production |
Nos. |
569 |
NOTES:
i)
The Company is exempt from the licensing provisions
of the Industries (Development and Regulation) Act, 1951
ii)
The Installed Capacity is based on single shift
working and has been certified by the Company’s management and relied upon by
the auditors, this being a technical matter.
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||
|
Bankers : |
·
HSBC Limited, MG Road, Bangalore-560001,
Karnataka, India |
||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Price Waterhouse and Company Chartered Accountant |
|
Address : |
Bangalore, Karnataka, India |
|
|
|
|
|
|
|
Ultimate Holding Company : |
AB Volvo, Sweden
(ABV) |
|
|
|
|
Holding Company : |
Volvo Bus
Corporation, Sweden (VBC) |
|
|
|
|
Fellow Subsidiaries : |
·
Volvo Truck Corporation, Sweden (VTC) ·
Volvo India Private Limited (VIPL) ·
VE Commercial Vehicles Limited (VECV) ·
Volvo Polska (VP) ·
Volvo Do BrasilVeiculos Limited (VDBV) ·
Volvo Merchandise AB (VMAB) ·
Volvo BussarSaffle AB (VBAB) ·
Volvo CE GmbH and Company KG (VCEG) ·
Volvo Southern Africa (Pty) Ltd (VSA) |
|
|
|
|
Parties having substantial interest in the Company : |
Jaico Automobile
Engineering Company Private Limited (Jaico) – up to Nov 25, 2010 |
CAPITAL STRUCTURE
AS ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
500000000 |
Equity Shares |
Rs.10/- each |
Rs. 5000.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
38860000 |
Equity Shares |
Rs.10/- each |
Rs. 388.600
Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
388.600 |
388.600 |
388.600 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
0.000 |
0.000 |
0.000 |
|
|
4] (Accumulated Losses) |
(361.790) |
(252.270) |
(109.575) |
|
|
NETWORTH |
26.810 |
136.330 |
279.025 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
3.652 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
8.856 |
8.839 |
29.120 |
|
|
TOTAL BORROWING |
12.508 |
8.839 |
29.120 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
39.318 |
145.169 |
308.145 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
354.019 |
358.182 |
373.670 |
|
|
Capital work-in-progress |
16.348 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
791.245
|
439.359 |
315.660 |
|
|
Sundry Debtors |
445.627
|
577.643 |
225.742 |
|
|
Cash & Bank Balances |
203.046
|
27.942 |
0.246 |
|
|
Other Current Assets |
22.048
|
21.546 |
15.548 |
|
|
Loans & Advances |
13.027
|
7.183 |
15.158 |
|
Total
Current Assets |
1474.993
|
1073.673 |
572.354 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1115.203
|
664.986 |
491.782 |
|
|
Other Current Liabilities |
575.176
|
442.898 |
116.001 |
|
|
Provisions |
115.663
|
178.802 |
30.096 |
|
Total
Current Liabilities |
1806.042
|
1286.686 |
637.879 |
|
|
Net Current Assets |
(331.049)
|
(213.013) |
(65.525) |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
39.318 |
145.169 |
308.145 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Sales and Services |
4248.640 |
4190.133 |
3007.093 |
|
|
|
Other Income |
8.880 |
6.237 |
5.556 |
|
|
|
TOTAL (A) |
4257.520 |
4196.370 |
3012.649 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials |
|
3332.221 |
2554.337 |
|
|
|
Manufacturing and Other Expenses |
|
962.695 |
487.099 |
|
|
|
TOTAL (B) |
4397.620 |
4294.916 |
3041.436 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(140.100) |
(98.546) |
(28.787) |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
41.390 |
11.129 |
8.711 |
|
|
|
|
[Including |
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
Financial Expenses |
(109.675) |
(37.498) |
|
|
|
|
And |
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
Depreciation] |
33.020 |
29.847 |
|
|
|
|
|
|
|
|
|
|
PRIOR PERIOD
ITEMS |
72.080 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
(109.410) |
(142.695) |
(67.345) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(0.110) |
0.000 |
2.143 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
(109.520) |
(142.695) |
(69.488) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
NA |
(109.575) |
(40.087) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
NA |
(252.270) |
(109.575) |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
58.423 |
105.680 |
108.146 |
|
|
|
Capital Goods |
0.050 |
0.007 |
0.216 |
|
|
TOTAL IMPORTS |
58.473 |
105.687 |
108.362 |
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss)
Per Share (Rs.) |
(2.82) |
(3.67) |
(1.79) |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
(2.57)
|
(3.40) |
(2.31) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(2.58)
|
(3.41) |
(2.24) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(5.98)
|
(9.97) |
(7.12) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(4.08)
|
(1.05) |
(0.24) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
67.83
|
9.50 |
2.39 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.82
|
0.83 |
0.90 |
LOCAL AGENCY FURTHER INFORMATION
FINANCIAL RESULTS AND APPROPRIATIONS
There was marginal
improvement in the revenues generated by the company, an increase of 1.4% as
compared to the period ended 31st March 2010. However, the operation
of the Company has resulted in a pretax loss of 109.41 MINR. While the Company had
better operational results the losses are mainly attributed to lost production
due to adverse industrial relations situation. As the Company is stabilizing
its operations and increased the product range, the Directors are confident of
profitable operations in the near future.
PRODUCTION PERFORMANCE
The period the
company witnessed adverse industrial relations situation and significant amount
of productive hours was lost in handling the issues. The company had to undergo
slow rate of production, a strike for 22 days and stage managed petty issues in
the shop floor targeted to reduce the output to pressurize the management.
Inspite of the adverse conditions the Company managed to run the production
program to a reasonably good extent and achieved an output of 569 units as
against 591 units in the previous reporting period. The Directors place on
record sincere appreciation for the Management team for handling the situation.
CONTINGENT LIABILITIES:
(Rs. In Millions)
|
Particulars |
31.03.2011 |
31.03.2010 |
|
i) Bank
Guarantees |
139.742 |
108.795 |
|
ii) Sales Tax
matters under dispute |
4.181 |
-- |
Note:
The Company has
paid Rs. 2.091 Millions under protest subsequent to the year end.
FIXED ASSETS
·
Building
·
Plant and Machinery
·
Computer systems
·
Office Equipments
·
Furniture and Fixtures
·
Motor Vehicles
·
Computer Software
WEBSITE DETAILS
PROFILE
Subject has been in
India for 10 years and has the richest experience when it comes to
high-performing bus applications. This, coupled with its state-of-the-art
factory and overall profile of being a complete transport solutions provider,
gives it a unique ability to be in the best position to understand the needs of
the Indian market and configure products accordingly.
Subject plant at Hosakote, Bangalore is one-of-its-kind facility which has
incorporated the best practices from the Subject Corporation plants in Mexico,
Poland and Finland. With over seven decades of experience, Subject have
globally developed the principles of bus building. This includes:
- Methods and
Processes for bus body building
- Training of
people on specialized skills
- Production
management that incorporates Visual Management, 5 S Processes, Safety and
Ergonomic Work Environment
- Material
handling practices
The success story of
Subject in India would not have been possible without the support of customers
over the last 10 years. From the latest global concepts to class-defining
technologies – at each stage we took the initiative to incorporate technology
that enhanced the quality of life for scores of passengers in India keeping in
mind their expectations of comfort, safety and luxury.
Today, the Volvo intercity coaches traverse all major routes in India. In the
city bus segment, Subject operate across 12 cities in India. Subject in India
also exports to South Africa, Bangladesh and Sri Lanka. At present, there are
about 5,000 Subject operating in the SAARC region, both in the city and
inter-city segments.
The company recently unveiled its New Range of Buses. With this Subject has
become the only bus manufacturer in India with the largest range of
high-performing buses comprising 10 models and variants. Customers now have the
Power of Choice in high-performing buses like never before.
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 records 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. 51.30 |
|
|
1 |
Rs. 81.36 |
|
Euro |
1 |
Rs. 67.97 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
-- |
|
--LIQUIDITY |
1~10 |
-- |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
-- |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
|
27 |
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.