1. Summary Information

Country

India

Company Name

VE COMMERCIAL VEHICLES LIMITED

Principal Name 1

Mr. Siddhartha Vikram Lal

Status

Good

Principal Name 2

Mr. Bertil John Thoren

Registration #

55-175032

Street Address

3rd Floor, Select Citywalk, A-3 District Centre, Saket, New Delhi – 110017, India

Established Date

07.03.2008

SIC Code

--

Telephone#

91-11-29563724

Business Style 1

Distributor

Fax #

Not Available

Business Style 2

--

Homepage

www.vecv.in

Product Name 1

Automobile Products

# of employees

Not Available

Product Name 2

--

Paid up capital

Rs. 100,000,000/-

Product Name 3

--

Shareholders

Foreign holdings 45.60 %

Bodies corporate 54.40 %

Banking

HDFC Bank Limited

Public Limited Corp.

No

Business Period

5 Years

IPO

No

International Ins.

--

Public Enterprise

No

Rating

A (66)

Related Company

Relation

Country

Company Name

CEO

Subsidiary Company

U.S.A.

Eicher Engineering Solutions, Inc.,

--

Note

-

 

2. Summary Financial Statement

Balance Sheet as of

31.12.2012

(Unit: Indian Rs.)

Assets

Liabilities

Current Assets

18,592,000,000

Current Liabilities

10,185,600,000

Inventories

3,826,900,000

Long-term Liabilities

  189,400,000

Fixed Assets

3,908,400,000

Other Liabilities

2,300,300,000

Deferred Assets

--

Total Liabilities

12,675,300,000

Invest& other Assets

3,976,300,000

Retained Earnings

17,528,300,000

 

 

Net Worth

17,628,300,000

Total Assets

30,303,600,000

Total Liab. & Equity

30,303,600,000

 Total Assets

(Previous Year)

23,545,400,000

 

 

P/L Statement as of

31.12.2011

(Unit: Indian Rs.)

Sales

49,623,300,000]

Net Profit

4,141,100,000

Sales(Previous yr)

39,174,200,000

Net Profit(Prev.yr)

2,595,400,000

 

MIRA INFORM REPORT

 

 

Report Date :

05.04.2013

 

IDENTIFICATION DETAILS

 

Name :

VE COMMERCIAL VEHICLES LIMITED (w.e.f.10.06.2008)

 

 

Formerly Known As :

EICHER MOTORS INDIA LIMITED

 

 

Registered Office :

3rd Floor, Select Citywalk, A-3 District Centre, Saket, New Delhi - 110017

 

 

Country :

India

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

07.03.2008

 

 

Com. Reg. No.:

55-175032

 

 

Capital Investment / Paid-up Capital :

Rs. 100.000 Millions

 

 

CIN No.:

[Company Identification No.]

U74900DL2008PLC175032

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

DELE04799E

 

 

PAN No.:

[Permanent Account No.]

AABCE9378F

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Distributor of Automobile Products and Related Components.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (66)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

USD 70500000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having fine track record. Financial position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments.

 

The company can be considered good for normal business dealings at usual trade terms and condition.

 

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 – June 30, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

INDIAN ECONOMIC OVERVIEW

 

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

ICRA

Rating

AA – ( Long Term)

Rating Explanation

High degree of safety. It carry very low credit risk.

Date

February 2012

 

Rating Agency Name

ICRA

Rating

A1+ (Fund Based Working Capital)

Rating Explanation

Highest degree of safety. It carry lowest credit risk

Date

February 2012

 

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

 

 

LOCATIONS

 

Registered Office :

3rd Floor, Select Citywalk, A-3 District Centre, Saket, New Delhi – 110017, India

Tel. No.:

91-11-29563724

Fax No.:

Not Available

E-Mail :

bdjoshi@eicher.in

Website :

www.vecv.in

 

 

Corporate Office

Building No. 9A, 16th Floor, DLF Cyber City, DLF Phase-III, Gurgaon - 122002, Haryana, India

Tel. No.:

91-124-6701700

 

 

Plant Location 1 :

Eicher Trucks and Buses

 

102 and 102A, Industrial Area No.1, Pithampur – 454775, District Dhar, Madhya Pradesh, India

 

 

Plant Location 2 :

Eicher Engineering Components

 

(i) S V Road, Ghodbunder Road, Chitalsar Manpada, Thane (West) – 400607, Mumbai, Maharashtra, India

 

(ii) Indonippon Foods Premises No.7, HSIDC Sector-18, Palam-Gurgaon Road, Gurgaon –122015, Haryana, India

 

(iii) 78-86, Industrial Area No.III, AB Road, Dewas – 455001, Madhya Pradesh, India

 

 

DIRECTORS

 

As on 31.01.2013

 

Name :

Mr. Siddhartha Vikram Lal

Designation :

Chairman cum Managing director

Address :

2, Panchsheel Marg, Chanakya Puri, New Delhi – 110021, India

Date of Birth/Age :

14.10.1973

Date of Appointment :

07.03.2008

PAN No.:

AABPL5228J

DIN No.:

00037645

 

 

Name :

Mr. Bertil John Thoren

Designation :

Director

Address :

Arkivgatan 5, Goteborg, Sweden – SE41134

Date of Birth/Age :

17.07.1950

Date of Appointment :

26.05.2008

DIN No.:

02200430

 

 

Name :

Mr. Philippe Divry

Designation :

Director

Address :

Vidblicksgatan 2, Goteborg, Sweden – SE41257

Date of Birth/Age :

31.07.1965

Date of Appointment :

03.02.2012

DIN No.:

05195448

 

 

Name :

Mr. Prateek Jalan

Designation :

Director

Address :

4, Babar Road, New Delhi – 110001, India

Date of Birth/Age :

04.04.1970

Date of Appointment :

26.05.2008

DIN No.:

02170139

 

 

Name :

Mr. Raul Rai

Designation :

Director

Address :

C-447, Defence Colony, New Delhi – 110024, India

Date of Birth/Age :

07.02.1969

Date of Appointment :

26.05.2008

DIN No.:

02202542

 

 

Name :

Mr. Joachim Henry Rasenberg

Designation :

Director

Address :

Kara Blanc 502, 3-5-41, Minami Azabu, Minato Ward, Tokya-1060047

Date of Birth/Age :

07.02.1969

Date of Appointment :

26.05.2008

DIN No.:

02202542

 

 

KEY EXECUTIVES

 

 

Name :

Mr. Praveen Kumar Jain

Designation :

Secretary

Address :

36, Ashoka Park, Main Rohatak Road, New Delhi – 110035, India

Date of Birth/Age :

01.08.1968

Date of Appointment :

29.04.2011

PAN No.:

AAMPJ3073E

 

 

Name :

A K Birla

Designation :

Executive Vice President- Technology

Date of Birth/Age :

57 Years

Qualification :

B.E.

Experience :

32 Years

 

 

Name :

Mr. Amanpreet Singh Bhatia

Designation :

Senior Vice President - Human Resources

Date of Birth/Age :

43 Years

Qualification :

MBA

Experience :

20 Years

 

 

Name :

B. Anil Baliga

Designation :

Senior Vice President - Bus and Application Manufacturing

Date of Birth/Age :

54 Years

Qualification :

B. Tech

Experience :

30 Years

 

 

Name :

Mr. Dinesh K Taneja

Designation :

Vice President - Internal Audit

Date of Birth/Age :

50 Years

Qualification :

CA, CIA, CCSA, CFSA

Experience :

25 Years

 

 

Name :

Gilles Boutte

Designation :

Senior Vice President and Chief Financial Officer

Date of Birth/Age :

55 Years

Qualification :

Commercial/Finance Degree

Experience :

34 Years

 

 

Name :

G Sekar

Designation :

Senior Vice President - Sales and Marketing

Date of Birth/Age :

55 Years

Qualification :

BE and PGDM

Experience :

30 Years

 

 

Name :

G V Rao

Designation :

Senior Vice President - Strategic Planning

Date of Birth/Age :

44 Years

Qualification :

BE (Mech), MBA-Marketing

Experience :

21 Years

 

 

Name :

Mr. Rajesh Mittal

Designation :

Senior Vice President – Manufacturing Operations

Date of Birth/Age :

48 Years

Qualification :

B.E., ICWA

Experience :

27 Years

 

 

Name :

Mr. Rajinder Singh Sachdeva

Designation :

Senior Vice President - Product Development

Date of Birth/Age :

50 Years

Qualification :

M.Tech

Experience :

28 Years

 

 

Name :

S R Mukherjee

Designation :

Vice President-Eec Operations

Date of Birth/Age :

50 Years

Qualification :

BSC ( Engg.)

Experience :

27 Years

 

 

Name :

Mr. Shyam Maller

Designation :

Vice President – Product Planning

Date of Birth/Age :

52 Years

Qualification :

B.E and PDGM

Experience :

29 Years

 

 

Name :

Mr. Somnath Bhattacharjee

Designation :

Executive Vice President - Sales & Marketing

Date of Birth/Age :

49 Years

Qualification :

BE (Mechanical)

Experience :

27 Years

 

 

Name :

Mr. Sreerama Rao

Designation :

Senior Vice President -After Market

Date of Birth/Age :

43 Years

Qualification :

BE

Experience :

22 Years

 

 

Name :

Mr. Vinod Aggarwal

Designation :

Chief Executive Officer

Date of Birth/Age :

52 Years

Qualification :

FCA , AICWA

Experience :

31 Years

 

 

Name :

Mr. Ravi Sikka

Designation :

Vice President – Group Affairs and Taxation

Date of Birth/Age :

65 Years

Qualification :

BE (Mechanical)

Experience :

39 Years

 

 

Name :

Takashi Fukuo

Designation :

Head- Quality Management Office

Date of Birth/Age :

65 Years

Qualification :

BE (Mechanical)

Experience :

39 Years

 

 

Name :

Arne Stig Sevensson

Designation :

Senior Vice President and Chief Technology Officer

Date of Birth/Age :

53 Years

Qualification :

BE (Mechanical)

Experience :

31 Years

 

 

Name :

Ryoji Ono

Designation :

Vice President-Head Of Quality

Date of Birth/Age :

58 Years

Qualification :

BE (Mechanical)

Experience :

37 Years

 

 

Name :

Tomoichi Katsumata

Designation :

Vice President-Head Of Productivity

Date of Birth/Age :

56 Years

Qualification :

BE (Mechanical)

Experience :

37 Years

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.03.2013

 

Names of Shareholders

 

No. of Shares

 

Eicher Motors Limited, India

 

5439993

Siddhartha Vikram Lal

 

1

Vinod Aggarwal

 

1

Ravi Sikka

 

1

Rajesh Kumar

 

1

Rohit Srivastava

 

1

Dinesh Kumar Taneja

 

1

Akticbolaget Volvo, Sweden

 

3469700

Volvo Truck Corporation, Sweden

 

1090300

Praveen Kumar Jain

 

1

Total

 

10000000

 

Equity Share Break up (Percentage of Total Equity)

 

As on 31.01.2013

 

Category

Percentage

Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others

45.60

Bodies corporate

54.40

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Distributor of Automobile Products and Related Components.

 

 

Products :

ITC Code

Product Descriptions

87060042

Commercial Vehicles

846140

Components

 

 

PRODUCTION STATUS (AS ON 31.12.2011)

 

Particulars

Unit

Licensed Capacity

Installed Capacity*

Actual Production

Commercial Vehicles

Nos.

Not applicable

48,000

48,520

Manufactured components

for sale

Value

 

 

1,872.2

 

* On multiple shift basis per annum

 

Notes:

 

1. The installed capacities are as certified by the management of the Company on which the auditors have placed reliance without verification.

 

2. Production figures represent gross production.

 

3. The figure of production disclosed against manufactured components is the value (as this is more meaningful than the quantities) of such components transferred for sale or sold to other parties.

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :
  • HDFC Bank Limited, Vatika Atrium A Block, Sector 53, Golf Course Road, Gurgaon – 122002, Haryana, India

 

 

Facilities :

(Rs. In Millions)

Secured Loans

31.12.2011

31.12.2010

 

 

(Rs. In Millions)

Rupee term loans banks secured

59.800

183.100

Rupee term loans others secured

0.000

450.000

Working capital loans banks secured

85.100

0.000

Total

144.900

633.100

 

Note:

 

(A) Includes: (a) Loan amounting to Rs. 59.700 millions (Rs.182.700 millions) secured by a first charge by way of mortgage on immovable properties of the Company and hypothecation of all movable properties of the Company, save and except current assets charged in favour of the banks for securing borrowings for working capital requirements. (b) Rs. 0.100 million (Rs. 0.400 million) secured by hypothecation of the specific assets acquired out of the loan. (c) Repayable within one year Rs. 59.800 millions (Rs.123.400 millions). This Rank Pari passu amongst banks

 

(B) This represents Short term loan and The short term loan from bank is secured by pledge of fixed deposits with the concerned bank. Repayable within one year CY Rs. Nil, PY Rs. 450.000 millions

 

(C) This shows Cash credits, Includes: (a) Rs. 85.100 millions (Rs. Nil) secured by a first charge by way of hypothecation of all current assets of the Company, and a second charge by way of mortgage on immovable properties of the Company located at Thane and Pithampur and hypothecation of movable properties located at Thane and Pithampur. This Rank Pari Passu amongst Bank.

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Deloitte Haskins and Sells

Chartered Accountants

Address :

7th Floor, Building, 10 Tower B, DLF Cyber City Complex, DLF City Phase II, Gurgaon, Haryana - 122002, India

Tel. No.:

91-124-6792000

Fax No.:

91-124-6792012

PAN No.::

AABFD2095B

Holding Company :

Eicher Motors Limited ([L34102DL1982PLC129877)

 

 

Subsidiary Company :

Eicher Engineering Solutions, Inc., U.S.A.

 

 

Investor in respect of which the Company is a joint venture :

AB Volvo, Sweden

 

 

Significant influence of key management personnel :

Eicher Goodearth Private Limited (U35122DL2007PTC170978)

 

 

100% subsidiary company of EES, Inc. :
  • Hoff Automotive Design (Beijing) Company Limited
  • Hoff Auto Design (Shanghai) Company Limited

 

 

 

CAPITAL STRUCTURE

 

As on 31.01.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

10000000

Equity Shares

Rs. 10/- each

Rs. 100.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

10000000

Equity Shares

Rs. 10/- each

Rs. 100.000 Millions

 

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.12.2011

31.12.2010

31.12.2009

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

100.000

100.000

100.000

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

17528.300

14258.900

12246.600

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

17628.300

14358.900

12346.600

LOAN FUNDS

 

 

 

1] Secured Loans

144.900

633.100

584.800

2] Unsecured Loans

44.500

60.100

492.000

TOTAL BORROWING

189.400

693.200

1076.800

DEFERRED TAX LIABILITIES

615.300

235.600

135.000

 

 

 

 

TOTAL

18433.000

15287.700

13558.400

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

3908.400

3113.000

2977.300

Capital work-in-progress

3794.100

638.200

105.300

Expenditure pending allocation, net

181.700

34.500

0.000

 

 

 

 

INVESTMENT

0.500

0.500

0.000

DEFERRED TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
3826.900

2982.900

1969.300

 

Sundry Debtors
3281.500

2512.500

2225.500

 

Cash & Bank Balances
11869.800

12330.800

10558.300

 

Other Current Assets
420.600

352.100

299.400

 

Loans & Advances
3020.100

1580.900

1289.000

Total Current Assets
22418.900

19759.200

16341.500

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
7758.400

5136.100

4076.000

 

Other Current Liabilities
2427.200

1642.700

887.500

 

Provisions
1685.000

1478.900

902.200

Total Current Liabilities
11870.600

8257.700

5865.700

Net Current Assets
10548.300

11501.500

10475.800

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

18433.000

15287.700

13558.400

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.12.2011

31.12.2010

31.12.2009

 

SALES

 

 

 

 

 

Income

49623.300

39174.200

25231.700

 

 

Other Income

376.500

224.300

888.600

 

 

TOTAL                                    

49999.800

39398.500

26120.300

 

 

 

 

 

Less

EXPENSES

 

 

 

Office Expenses

 

 

 

 

 

Administrative Expenses

 

 

 

 

 

Advertising Expenses

 

 

 

 

 

TOTAL                                    

43850.200

35286.300

24031.000

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

6149.600

4112.200

2089.300

 

 

 

 

 

Less

FINANCIAL EXPENSES                                   

52.200

63.000

71.200

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION

6097.400

4049.200

2018.100

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                    

501.500

457.300

377.000

 

 

 

 

 

Less

EXCEPTIONAL ITEM

0.000

0.000

234.400

 

 

 

 

 

 

PROFIT BEFORE TAX

5595.900

3591.900

1406.700

 

 

 

 

 

Less

TAX                                                                 

1454.800

996.500

457.400

 

 

 

 

 

 

PROFIT AFTER TAX

4141.100

2595.400

949.300

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

2480.100

727.400

165.500

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

414.200

259.600

94.900

 

 

Interim Dividend

750.000

500.000

250.000

 

 

Tax on Dividend

121.700

83.100

42.500

 

BALANCE CARRIED TO THE B/S

5335.400

2480.100

727.400

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export of goods (FOB Value)

2778.100

1969.100

2015.400

 

 

Export of engineering services

12.800

9.300

16.500

 

 

Commission income

1.800

2.000

1.900

 

TOTAL EARNINGS

2792.700

1980.400

2033.800

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Components and spare parts

385.500

293.800

150.400

 

 

Capital goods

607.000

162.900

64.900

 

 

Capital goods

4.300

42.900

7.300

 

TOTAL IMPORTS

996.800

499.600

222.600

 

 

 

 

 

 

Earnings Per Share (Rs.)

414.11

259.54

94.93

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.12.2011

31.12.2010

31.12.2009

PAT / Total Income

(%)
8.28

6.59

3.63

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
11.28

9.17

5.58

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
21.26

15.70

7.28

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.32

0.25

0.11

 

 
 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 
0.01

0.05

0.09

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
1.89

2.39

2.79

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check List by Info Agents

Available in Report (Yes / No)

1]

Year of Establishment

Yes

2]

Locality of the firm

Yes

3]

Constitutions of the firm

Yes

4]

Premises details

 No

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

Yes

8]

No. of employees

No

9]

Name of person contacted

No

10]

Designation of contact person

No

11]

Turnover of firm for last three years

Yes

12]

Profitability for last three years

Yes

13]

Reasons for variation <> 20%

----------------------

14]

Estimation for coming financial year

No

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

No

20]

Export / Import details (if applicable)

No

21]

Market information

----------------------

22]

Litigations that the firm / promoter involved in

----------------------

23]

Banking Details

Yes

24]

Banking facility details

Yes

25]

Conduct of the banking account

----------------------

26]

Buyer visit details

----------------------

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

Yes

30]

Major Shareholders, if available

Yes

31]

Date of Birth of Proprietor/Partner/Director, if available

Yes

32]

PAN of Proprietor/Partner/Director, if available

No

33]

Voter ID No of Proprietor/Partner/Director, if available

No

34]

External Agency Rating, if available

Yes

 

 

UNSECURED LOANS

 

Unsecured Loans

31.12.2011

31.12.2010

 

 

(Rs. In Millions)

Other debt unsecured

44.500

60.100

Total

44.500

60.100

 

Note:

 

(A) This includes: (1) Deposits-Others (Current Year: Rs. 44.500 millions, Previous Year:: 36.800 millions) and (2) Interest free sales tax deferral (Current Year: Rs.0,Previous Year: Rs. 23.300) which is Repayable within one year

 

CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF:

[Rs. in millions]

Particulars

31.12.2011

31.12.2010

a) In respect of demands contested by the Company:

 

 

- Sales tax matters

84.600

262.000

- Excise duty matters

46.300

46.300

- Service tax matters

290.300

292.200

- Income tax matters

162.000

--

b) Claims against the Company not acknowledged as debts

25.800

21.500

c) Bills discounted

7.500

15.500

d) Guarantees given:

 

 

(i)to bank for credit facility granted to 100% subsidiary company

159.800

112.000

- Dues outstanding

143.800

88.500

 

Note: All the above matters other than bills discounted and guarantees are subject to legal proceedings in the ordinary course of business. The legal proceedings when ultimately concluded will not, in the opinion of management, have a material effect on the result of operations or the financial position of the Company.

 

BUSINESS ENVIRONMENT :

 

Typical of any fast growing economy, India too is facing concerns due to various environmental factors that have led to a lot of volatility in the economic environment. However, there are some positive indications of lowering of inflation with food inflation showing a negative trend for a couple of weeks in December. There are also strong indications coming from various Government bodies and the Reserve Bank of India, that we may start seeing the cooling off of high interest rate regime.

 

There are now very strong views that economic growth will be around 6 to 7% in 2011-12, largely led by Agriculture and Services sector with low growth in industry. Due to lower growth and other factors, the Government finances are under tremendous strain and it is likely that we may see fiscal deficit at around 5.5 to 6% of GDP as against original estimate of 4.5%. This has put significant strain on various infrastructure investments as well as liquidity in the system as Government borrowings are going up significantly. This combined with uncertainties in the global economy, has certainly pushed economic prospects for next year on a more cautionary path even though long term India story remains intact.

 

 

FINANCIAL RESULTS

 

This year has been a strong year in financial terms both, on profit as well as cash generation. The Company has attained new heights in terms of volume in its major business units with improvement in its market shares across almost all the segments.

 

The Company has posted impressive all time high top line during the financial year 2011 with total operating income at 49999.800 MINR as against 39398.500 MINR during the previous financial year ended December 31, 2010, a phenomenal growth of 26.90%. The operating profit before depreciation and interest amounted to 5117.400 MINR at 10.31% of net sales as against operating profit before depreciation and interest of 3348.1 MINR during the previous year at 8.55% of net sales, a growth of 52.84%. After accounting for interest income of 1032.200 MINR (previous year 764.100 MINR), interest expense of 52.200 MINR (previous year 63.000 MINR) and depreciation of 501.500 MINR (previous year 457.300 MINR), profit before tax amounts to 5595.900 MINR (previous year 3591.900 MINR). After providing for tax of 1454.800 MINR, profit after tax amounts to 4141.100 MINR (previous year 2595.400 MINR).

 

The major improvement in financial results is on account of higher volumes across all product segments and focused cost reductions in all areas.

 

Further, there is reduction of working capital of 456.300 MINR inspite of higher volumes and significant increase in finished goods inventory to support higher sales

 

MARKET AND FUTURE PROSPECTS

 

Eicher Trucks and Buses (ETB):

 

There are signs of slowdown in the economy. Reserve Bank of India (RBI) has increased interest rates 13 times since March, 2010 to combat Inflation. Still core inflation remains high and is still above 9%. Euro-zone crisis, US growth data and signs of global slow-down coupled with little progress in the reforms process in India are weighing heavily on high growth prospects. In 2010 -11 GDP grew by 8.5%, in 2011-12 it is estimated between 6-7% and projected at same level of around 7% in 2012-13. Industrial sector grew by 8.2% in 2010-11 and is expected to grow by less than 4% in 2011-12, and projected at 4-6% in the next fiscal year. Manufacturing has averaged 9% in 2010-11 but in 2011-12, the growth has been fluctuating. The CV growth has moderated in 2011 as compared to last year. 12T segment growth has been comparatively high at 27.3%. Among the heavy duty truck segment, the 16T and 25T segments witnessed negative growth in 2011, whereas the 31T segment has grown at a phenomenal rate of 80.1% in 2011. In the heavy duty segment, Tippers have grown by over 45% in 2011 whereas the haulage segment has grown by 3.1% indicating a slowdown in growth of goods movement.

 

Government has reaffirmed its focus on infrastructure development and a substantial investment has been planned in 2012 but the government finances are under strain due to rising subsidies bill resulting in high fiscal deficit of over 5% in 2011-12.

 

All the above is expected to further moderate the growth of Commercial Vehicles Industry sales in the coming months.

 

Inflation is still a concern. Though RBI has indicated no further rise in interest rates which has affected the growth rate, the easing of monetary policy by RBI will depend upon inflation. Core inflation is still very high as international commodity prices are still high. Another challenge is the exchange rate. Rupee has fallen depreciated by around 20% in the last one year which is further adding to high inflation rate.

 

The company has recorded an excellent overall performance in 2011. While light and medium duty vehicles, both trucks and buses, are expected to continue their strong contribution, the continued acceptability and positive customer response the "VE" series of heavy duty trucks in 2011 provide strong evidence of success of ETB's long term strategy to be a significant player in the heavy-duty truck market by 2015.

 

The company has several new projects in the pipeline including new products in its journey towards its ambitious growth plan. Year 2012 will see:

 

  1. Commercial launch of Eicher Terra- 25 RMC.
  2. Commercial launch of 11.14, the new 14 ton truck.
  3. Upgraded new "E2 Plus" series trucks in the LMD range.
  4. Introduction of built up Buses on the medium duty and heavy duty platforms.
  5. Introduction of 25 seater CNG Buses.
  6. Commercial launch of the Skyline Limo ? the air conditioned tourist and staff bus.
  7. Investments in aftermarket network including company owned dealerships.
  8. Initiatives toward building the Eicher brand.
  9. Culmination of a number of initiatives to become number one in quality and customer satisfaction in India.

 

With all the above steps, the potential of achieving significant growth in Eicher Trucks and Buses in 2012 is extremely high.

 

Volvo Trucks India (VTI)

 

As explained in the above Business paragraph, the tipper market is looking up in 2012 and Volvo tippers as well as Total Industry Volume (TIV) would witness substantial surge viz a viz 2011. The buoyancy in Prime Mover segment is poised to sustain due to considerable project equipment movement. The Company has also embarked on new products in 2012 like the FMX tipper and 32 cum coal body tipper. These products will drive additional volumes for the Company.

With improved market and enhanced product portfolio, the Company is confident of meeting business plan for the year 2012.

 

Eicher Engineering Components (EEC)

 

EEC's captive business from ETB is expected to grow on account of further growth in Vehicle sales volumes with 100% gears and crown wheel requirement being met by EEC. The first quarter of 2012 is likely to witness an increase in volumes over Q4-2011 .The trend is likely to continue during the full year.

 

On domestic OEM front, the business is expected to be in line with manufacturing plans of the domestic Original Equipment Manufacturers (OEMs). However, due to higher share of business with OEMs, development of new products, upgradation of technology and meeting the increasing requirements of new strategic customers would be the main contributing factors taking the company's growth to significant levels.

 

The company is making the required investment to increase capacity to meet enhanced demand both internal and external.

 

With US market picking up, there is better inflow of orders both repeat and fresh. This will result in upward trend in export business of the company. However the order visibility for gear box assembly for first half of 2012 is poor, this is likely to be overcome by second half of 2012 after completion of developments of products for few key customers. In the long term, based on new customer acquisition, company expects to grow significantly in all segments especially in aggregate assembly business and outsourcing business. The Company's ability to offer design and build services will add to its ability to attract business.

 

On inputs front, steel, forgings and other raw materials prices are likely to stabilize at current levels due to mixed signals on the economic front, at least for first half of 2012.

 

Eicher Engineering Solutions (EES)

 

There has been a steady improvement in the performance of EES in 2011 and this is likely to accelerate in 2012. Major initiatives are planned to enhance EES's customer acquisition capability from its global locations. Also there are actions initiated related to globalization, acquisition of volume business and integration of all the locations of EES. The above shall enable EES to capitalize on the immense opportunity in the global engineering services industry

 

 

PRESS RELEASE :

 

VE Commercial to invest Rs 1,200 cr by 2014

January 20

New Delhi,:  

 

VE Commercial Vehicles Ltd (VECV), a joint venture between Sweden’s Volvo Group and homegrown Eicher Motors, will invest Rs 12000.000 Millions by 2014 for expanding production capacity and developing new products.

 

In the meantime, the Indian partner will be launching Eicher branded trucks, developed using technology of the Swedish firm by the end of this year.

 

“This year our production capacity of trucks and buses will be 6,500 units per month, up from 5,500 units last year.

 

Our aim is to take it up to 8,000 units per month by 2015,” VECV Chief Executive Officer Vinod Aggarwal told PTI.

 

He said the company has “an aspirational” target of achieving an annual capacity of 1,00,000 units by 2015 but that would depend on market demand. The company is not looking for a fresh location and the planned expansion would be carried out at its existing plant at Pithampur in Madhya Pradesh.

 

Asked about the investment for the expansion, Aggarwal said, “From the beginning of the JV till 2012-end the company has invested Rs 13000.000 Millions and we will invest another Rs 12000.000 Millions on ongoing projects like engine plant, bus body plant, new products and further capacity increase in 2013 and 2014 to meet the requirement for 2015.”

 

VECV began operations in July 2008 and its business includes the complete range of Eicher trucks and buses, VE Powertrain, Eicher’s components and engineering design services businesses as well as the sales and distribution business of Volvo trucks within India.

 

Commenting on the progress of the new engine plant at Pithampur, Aggarwal: “It will become operational by July this year with an initial capacity of 25,000 units per annum. When fully mature by 2015-16, the plant will have a total capacity to produce 1,00,000 units per annum.”

 

Apart from meeting its domestic requirement, the plant will also export medium-duty automotive engine of five and eight-litre capacities to Volvo.

 

About new products, Aggarwal said Eicher branded trucks using Volvo technology in cabin, engine and other driveline would be launched by this year.

 

“It will be for both medium and heavy duty trucks,” he added.

 

Keywords: VE Commercial, Eicher Motors, Volvo Group, VE Commercial capacity, VE Commercial products

 

 

FIXED ASSETS:

 

·         Land

·         Buildings

·         Plant and Machinery

·         Furniture and Fixture

·         Office equipment

·         Vehicles

·         Computer Software

 

 

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.54.39

UK Pound

1

Rs.82.05

Euro

1

Rs.69.59

 

 

INFORMATION DETAILS

 

Report Prepared by :

RSMK

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

7

PAID-UP CAPITAL

1~10

7

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

8

--PROFITABILIRY

1~10

8

--LIQUIDITY

1~10

7

--LEVERAGE

1~10

7

--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

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

66

 

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

-

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.