MIRA INFORM REPORT
|
Report Date : |
22.01.2013 |
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 |
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|
|
|
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) |
|
|
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
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
AA : Long term rating Fund based working
capital facilities |
|
Rating Explanation |
The high credit quality it carry low credit
risk. |
|
Date |
February 2012 |
|
Rating Agency Name |
ICRA |
|
Rating |
A1+ : Short term rating Fund based working
capital facilities |
|
Rating Explanation |
The highest credit quality 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 : |
|
|
Website : |
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|
|
|
|
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 04.02.2012
|
Name : |
Mr. Siddhartha Vikram Lal |
|
Designation : |
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. Par Ola Ostberg |
|
Designation : |
Director |
|
Address : |
Olof, Wijksgatan 3 Goteborg, Sweden – SE41255 |
|
Date of Birth/Age : |
23.06.1962 |
|
Date of Appointment : |
26.05.2008 |
|
DIN No.: |
02200480 |
|
|
|
|
Name : |
Mr. Bertil John Thoren |
|
Designation : |
Director |
|
Address : |
Thoren, 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 |
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 : |
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 & 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 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 04.02.2012
|
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 |
AS ON 04.02.2012
|
Equity Share Breakup |
|
Percentage of Holding |
|
Category |
|
|
|
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
|
45.60 |
|
Bodies
corporate |
|
54.40 |
|
Total |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Distributor of Automobile Products and Related Components. |
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|
|
||||||
|
Products : |
|
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 |
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|
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|
Bankers : |
Ø HDFC Bank Limited,
Vatika Atrium A Block, Sector 53, Golf Course Road, Gurgaon – 122002,
Haryana, India Ø ICICI Bank
Limited, Landmarkrace Cource Circle, Alkapuri, Baroda – 390015, Gujarat,
India Ø Standard
Chartered Bank, Credit Risk Control, Narain Manzil, 23 Barakhamba Road, New
Delhi – 110001, India Ø State Bank of
India Ø HSBC Bank
Limited Ø Kotak Mahindra
Bank Limited |
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Facilities : |
|
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|
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 |
|
Income-tax
PAN of auditor or auditor's firm : |
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. : |
Ø Hoff Automotive
Design (Beijing) Company Limited Ø Hoff Auto Design
(Shanghai) Company Limited |
CAPITAL STRUCTURE
AS ON 31.12.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
10,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 100.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
10,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 100.000 Millions |
|
|
|
|
|
Note:
(A) 10,000,000
(10,000,000) Equity shares of Rs. 10 each
(B) 10,000,000
(10,000,000) Equity shares of Rs. 10 each
(C) (1) 10,000,000
(10,000,000) Equity shares of Rs. 10 each (2) Includes 1,090,300 (1,090,300)
equity shares of Rs. 10 each allotted as fully paid for consideration other
than in cash pursuant to the Scheme of Arrangement relating to demerger of
'Distribution Undertaking' of Volvo India Private Limited into the Company
which became effective on February 28, 2009 from the appointed date i.e. July
1, 2008. (3) Note: Subscribed and paid up share capital includes
5,440,000(5,440,000) equity shares held by Eicher Motors Limited, the holding
company.
(D) (1) 10,000,000
(10,000,000) Equity shares of Rs. 10 each (2) Includes 1,090,300 (1,090,300)
equity shares of Rs. 10 each allotted as fully paid for consideration other
than in cash pursuant to the Scheme of Arrangement relating to demerger of
'Distribution Undertaking' of Volvo India Private Limited into the Company
which became effective on February 28, 2009 from the appointed date i.e. July
1, 2008. (3) Note: Subscribed and paid up share capital includes 5,440,000(5,440,000)
equity shares held by Eicher Motors Limited, the holding company.
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 |
1408.700 |
988.400 |
888.600 |
|
|
|
TOTAL |
51032.000 |
40162.600 |
26120.300 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Consumption materials changes inventories |
37345.300 |
30223.900 |
|
|
|
|
Manufacturing service costs |
1513.200 |
1120.500 |
|
|
|
|
Employee related expenses |
2525.800 |
1889.700 |
|
|
|
|
Administrative selling other expenses |
3498.000 |
2816.300 |
|
|
|
|
TOTAL |
44882.300 |
36050.400 |
24031.000 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
6149.700 |
4112.200 |
2089.300 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
52.200 |
63.000 |
71.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION |
6097.500 |
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 |
5596.000 |
3591.900 |
1406.700 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
1454.800 |
996.500 |
457.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
|
4141.200 |
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 |
(%) |
8.11
|
6.46 |
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 Liability/Networth) |
|
0.68
|
0.62 |
0.56 |
|
|
|
|
|
|
|
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 |
Yes |
|
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 (CY: Rs. 44.500 millions, PY: 36.800 millions) and
(2) Interest free sales tax deferral (CY: Rs.0,PY: Rs. 23.300) which is
Repayable within one year |
||
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 they 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 they 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 49999.8 MINR as against 39398.5 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 5117.4 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 1032.2 MINR (previous year
764.1 MINR), interest expense of 52.2 MINR (previous year 63.0 MINR) and
depreciation of 501.5 MINR (previous year 457.3 MINR), profit before tax
amounts to 5595.9 MINR (previous year 3591.9 MINR). After providing for tax of
1454.8 MINR, profit after tax amounts to 4141.1 MINR (previous year 2595.4
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 456.3 MINR inspite of higher volumes and
significant increase in finished goods inventory to support higher sales
forecast.
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:
- Commercial launch of Eicher Terra- 25 RMC.
- Commercial launch of 11.14, the new 14 ton truck.
- Upgraded new "E2 Plus" series trucks in the LMD range.
- Introduction of built up Buses on the medium duty and heavy duty
platforms.
- Introduction of 25 seater CNG Buses.
- Commercial launch of the Skyline Limo ? the air conditioned tourist
and staff bus.
- Investments in aftermarket network including company owned
dealerships.
- Initiatives toward building the Eicher brand.
- 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
BANKERS CHARGES
REPORT AS PER REGISTRY
|
Corporate
identity number of the company |
U74900DL2008PLC175032 |
|
Name of the
company |
VE COMMERCIAL
VEHICLES LIMITED |
|
Address of the
registered office or of the principal place of business in |
12, Commercial
Complex, Greater Kailash-II (Masjid Moth), New Delhi - 110048, India Email: bdjoshi@eicher.in |
|
This form is for |
Creation of charge |
|
Type of charge |
Book debts Movable property (not being pledge) Floating charge |
|
Particular of
charge holder |
HDFC Bank Limited, Vatika Atrium A Block, Sector 53, Golf Course Road,
Gurgaon – 122002, Haryana, India Email: aastha.kharia@hdfcbank.com
|
|
Nature of description
of the instrument creating or modifying the charge |
Letter of
Hypothecation of stocks and book debts for creation of pari-passu first
charge on stocks & book debts of
the Company. |
|
Date of
instrument Creating the charge |
09.04.2011 |
|
Amount secured by
the charge |
Rs. 160.000
Millions |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest To be mutually
discussed and agreed before draw down. This interest rate is subject to revision
by the Bank plus interest tax and any other statutory levy, if and when
applicable. Terms of Repayment As per sanction
letter dated October 18, 2010 of HDFC Bank Limited. Margin 25% on stock and
book debts or as mutually agreed. Extent and Operation of the charge Hypothecation on
stocks and book debts by way of first pari-passu charge both present and
future. |
|
Short particulars
of the property charged |
Hypothecation on stocks
and book debts by way of first pari-passu charge both present and future. |
|
|
|
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.
FIXED ASSETS:
Ø Land
Ø Buildings
Ø Plant and
Machinery
Ø Furniture and
Fixture
Ø Office equipment
Ø Vehicles
Ø 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,
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. 53.87 |
|
|
1 |
Rs. 85.53 |
|
Euro |
1 |
Rs. 71.78 |
INFORMATION DETAILS
|
Report Prepared
by : |
BVA |
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 |
|
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 |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.