1. Summary Information

 

 

Country

India

Company Name

VOLVO INDIA PRIVATE LIMITED

Principal Name 1

Mr. Lars Ingvar Thoren

Status

Satisfactory

Principal Name 2

Mr. Ingrid Susanne Jannesson

 

 

Registration #

08-024176

Street Address

Yalachahally Village, Tavarekere Post, Hosakote Taluka, Bangalore – 560122, Karnataka

Established Date

02.08.1996

SIC Code

--

Telephone#

91-80-66914000/ 080/ 66912000

Business Style 1

Manufacturer

Fax #

91-80-27965280

Business Style 2

--

Homepage

http://www.volvo.co.in

Product Name 1

Volvo Construction

# of employees

3,000 [Approximately]

Product Name 2

--

Paid up capital

Rs.104,700,000/-

Product Name 3

--

Shareholders

Foreign holdings - 100.00%

Banking

The Vysya Bank Limited

 

Public Limited Corp.

YES

Business Period

18 Years

IPO

YES

International Ins.

--

Public Enterprise

YES

Rating

Ba (50)

 

Relation

Country

Company Name

CEO

Ultimate Holding Company

Sweden

AB Volvo

--

Note

 

 

2. Summary Financial Statement

Balance Sheet as of

31.03.2013

(Unit: Indian Rs.)

Assets

Liabilities

Current Assets

8,953,300,000

Current Liabilities

6,876,300,000

Inventories

5,163,600,000

Long-term Liabilities

2,086,400,000

Fixed Assets

3,036,600,000

Other Liabilities

322,300,000

Deferred Assets

556,800,000

Total Liabilities

 9,285,000,000

Invest& other Assets

395,000,000

Retained Earnings

8,715,600,000

 

 

Net Worth

8,820,300,000

Total Assets

18,105,300,000

Total Liab. & Equity

18,105,300,000

 Total Assets

(Previous Year)

17,881,600,000

 

 

P/L Statement as of

31.03.2013

(Unit: Indian Rs.)

Sales

23,357,700,000

Net Profit

(126,800,000)

Sales(Previous yr)

22,291,600,000

Net Profit(Prev.yr)

498,700,000


MIRA INFORM REPORT

 

 

Report Date :

06.01.2014

 

IDENTIFICATION DETAILS

 

Name :

VOLVO INDIA PRIVATE LIMITED

 

 

Registered Office :

Yalachahally Village, Tavarekere Post, Hoskote Taluk, Bangalore – 560 122, Karnataka

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

02.08.1996

 

 

Com. Reg. No.:

08-024176

 

 

Capital Investment/ Paid-up Capital :

Rs.104.700 Millions

 

 

CIN No.:

[Company Identification No.]

U50101KA1996PTC024176

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

BLRV03081B

 

 

PAN No.:

[Permanent Account No.]

AAACV6747N

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer of Volvo Construction.

 

 

No. of Employees :

3,000 [Approximately]

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (50)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 35000000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a part of Volvo Group, Sweden.

 

It is a well-established and reputed company having a satisfactory track record. There appears a huge loss incurred by the management during 2013.

 

However, general financial position of the company appears to be strong. Liquidity position is good. Performance capacity is high. Trade relations are reported to be fair. Business is active. Payments are reported to be regular and as per commitments.

 

In view of strong technical, financial and managerial support from the parent company, the company can be considered for normal business dealings at usual trade terms and conditions.

 

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, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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’s current account deficit narrowed in the quarter ended September as government measures to curb imports, especially gold, kicked in.  The current account deficit, the excess of a country’s imports of goods and services over exports, narrowed to $ 5.2 billion from $ 21 billion in the year ago period, according to provisional Reserve Bank of India data. Finance Minister P. Chidambaram said the CAD for the year will be less than $ 60 billion or 3 per cent of GDP and the latest data suggests the government may achieve the target.

 

India was ranked 94th among the world’s most corrupt nations list. Denmark and New Zealand topped as the cleanest while Somalia emerged as the most corrupt.

 

India’s services sector activity witnessed a moderate improvement in November over the previous month, even while indicating the fifth successive monthly contraction, according the HSBC survey.

 

$53 million estimated losses suffered by India due to phishing attacks during the third quarter, according to a study by RSA. India ranks fourth in the list of nations hit by phishing attacks. The US remained at the top of the charts. Phishing is the process of acquiring information such as user names, passwords and credit card details by sending e-mails disguised as official mails.

 

Rs.4080 million worth of mobile-phone-based transactions by July 2013 compared to Rs.260 million in September, 2012, according to Deloitte report. The number of transactions has shot up from 94000 to 701000.

 

India aims to earn Rs.400000 million from the bandwidth auction set for January. The merger and acquisition guidelines, cleared by a group of ministers, will be out before the auction begins so that players can make informed decisions on the auctions.

 

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.


 

INFORMATION PARTED BY

 

Name :

Ms. Shalini

Designation :

Office Executive

Contact No.:

91-80-66912000

 

 

LOCATIONS

 

Registered Office/ Factory 1 :

Yalachahally Village, Tavarekere Post, Hosakote Taluka, Bangalore – 560122, Karnataka, India

Tel. No.:

91-80-66914000/ 080/ 66912000

Fax No.:

91-80-27965280

E-Mail :

info@volvo.com

laxminarayan.hegde@volvo.com

Website :

http://www.volvotrucks.co.in

http://www.volvo.co.in

Area :

10 acres

Location:

Owned

 

 

Corporate Office :

201, Embassy Square, 148, Infantry Road, Bangalore – 560001, Karnataka, India

Tel. No.:

91-80-22266426-28 / 22228446

Fax No.:

91-80-22284448 / 22250721

Website :

http://www.volvotrucks.co.in

Area :

2000 sq. fts.

Location:

Rented

 

 

Factory 2 :

Yalachahally, Tavarekere P.O., Old Madras Road, Hoskote, Bangalore - 562 122, Karnataka, India

Tel. No.:

91-80-27965251/58/59

Fax No.:

91-80-27965233

E-Mail :

infor@volvo.com

Area :

10 acres

Location:

Owned

 

 

Factory 3 :

No. 7 and 8 Phase I, Peenya Industrial Area, Bangalore – 560058, Karnataka, India

 

 

Regional Sales Office  :

Located At:

 

·         Raipur (Central Region)

·         Kolkata ( Eastern Region)

·         Delhi (Northern Region)

·         Bangalore (Southern Region)

·         Mumbai (Western Region)

 

 

Branch Office :

Located At:

 

·         Udaipur, Rajasthan, India

·         Hyderabad, Andhra Pradesh, India

·         Ahmedabad, Gujarat, India

 

 

DIRECTORS

 

As on 11.10.2013

 

Name :

Mr. Lars Ingvar Thoren

Designation :

Whole-time director

Address :

Villa 43, Phase 2, Palm Meadows, airport Road, Whitefield, Ramagondanahall, Bangalore – 560006, Karnataka, India

Date of Birth/Age :

19.03.1952

Date of Appointment :

13.12.2012

DIN No.:

06457629

PAN No.:

AOCPT8009G

 

 

Name :

Mr. Ingrid Susanne Jannesson

Designation :

Director

Address :

Andalen7, Torslanda 42338, Sweden

Date of Birth/Age :

03.08.1965

Date of Appointment :

13.12.2012

DIN No.:

06451268

 

 

Name :

Mr. Kerstin Maria Renard

Designation :

Director

Address :

Haga Kyrkogata 28 B LGH 1401

Date of Birth/Age :

20.02.1961

Date of Appointment :

13.12.2012

DIN No.:

06457633

 

 

Name :

Mr. Fredrik Helge Bengt Ahlberg

Designation :

Director

Address :

Silvertarnegangen, 37, Vastra Forlunda

Date of Birth/Age :

13.03.1965

Date of Appointment :

17.06.2013

DIN No.:

06603363

 

 

Name :

Mr. Muralidharan Angadu Mohanakrishnan

Designation :

Additional Director

Address :

48-AK Block, 11th Main Road, Annanagar, Chennai – 600040, Tamilnadu, India

Date of Birth/Age :

19.05.1960

Date of Appointment :

01.10.2010

DIN No.:

03279284

 


 

KEY EXECUTIVES

 

Name :

Mr. Laxminarayan Hegde

Designation :

Company Secretary

Address :

No.15, Srisoudha, Kvs Layout, Kodigehalli, Bangalore – 560097, Karnataka, India

Date of Birth/Age :

15.04.1964

Date of Appointment :

03.08.2005

Pan No.

AACPH2986G

 

 

Name :

Ms. Shalini

Designation :

Office Executive

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 11.10.2013

 

Names of Shareholders

 

 

No. of Shares

 

 

 

Volvo Truck Corporation, Sweden

 

10466883

Volvo Holding Sverige AB, Sweden

 

1

 

 

 

Total

 

 

10466884

 

Equity Share Break up (Percentage of Total Equity)

 

As on 11.10.2013

 

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

100.00

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Volvo Construction.

 

 

Products :

Product Description

 

ITC Code

Road Machines

8430

Tractors

8701

Bus Chassis

8706

 

 

Exports :

 

Countries :

Sweden

 

 

Imports :

 

Products :

Spares Parts, Components

Countries :

Sweden

 

PRODUCTION STATUS [AS ON 31.03.2011]

 

Licensed Capacity: Not Available

 

Installed Capacity:

 

Particulars

Units

Installed Capacity (on single shift basis)

 

 

 

Tractor/ Bus chassis

Nos.

2000

Road Machines

Nos.

1400

 

 

Actual Production:

 

Particulars

Units

Actual Production

 

Tractor

Nos.

1085

Bus Chassis

Nos.

631

Road Machines

Nos.

724

 

 

GENERAL INFORMATION

 

No. of Employees :

3,000 [Approximately]

 

 

Bankers :

·         The Vysya Bank Limited

M.G. Road Branch, M.G. Road, Bangalore – 560 001, Karnataka, India

 

·         Standard Chartered Grindlays Bank

M. G. Bangalore, Karnataka, India

 

·         ANZ Grindlays Bank

PLC, Bangalore Branch, Raheja Towers, M. G. Road, Bangalore – 560018, Karnataka, India

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Price Waterhouse and Company

Chartered Accountants

Address :

Bangalore, Karnataka, India

PAN N Income-tax PAN of auditor or auditor's firm :

AAHFP0187A

 

 

Ultimate Holding Company:

·         AB Volvo, Sweden (ABV)

 

 

Holding Company:

·         Truck Corporation, Sweden (VTC)

 

 

Fellow Subsidiary

company:

·         Volvo Group Belgium NV, Belgium

·         Volvo Construction Equipment S.A., Belgium

·         Volvo do Brasil Veiculos Ltda, Brazil

·         Volvo China Investment Company Limited, China

·         Volvo Parts Shanghai Company Limited, China

·         Shandong Lingong Construction China

·         Dongfeng Nissan Diesel China

·         Volvo Penta Shanghai Trade. Company Limited, China

·         Volvo Logistics Shanghai Company Limited, China

·         Volvo Construction Equipment, Germany

·         ABG Allgemeine Baumaschinen-Gesells, Germany

·         Volvo Compact Equipment SAS, France

·         Renault Trucks - (RT), France

·         Volvo Buses India Private Limited -(VBIPL), India

·         CIN: U34201KA2006FTC041071

·         Ve Commercial Vehicles Limited - (VECV), India

·         CIN: U74900DL2008PLC175032

·         Volvo Logistics Corporation Japan (VLC), Japan

·         UD Trucks Corporation, Japan

·         Volvo Construction Equipment Korea -(VGK), South Korea

·         Volvo Polska Sp. z o.o.. Poland

·         Volvo Powertrain Corporation, Sweden

·         Volvo Bus Corporation - (VBC), Sweden

·         Volvo Penta Corporation, Sweden

·         Volvo Information Technology AB - (VITS), Sweden

·         Volvo Construction Equipment China, China

·         Volvo Business Services AB - (VBS), Sweden

·         Volvo Logistics Corporation AB, Sweden

·         Volvo Parts AB - (VPC), Sweden

·         Volvo CE AB - Holding Division - (VCE - AB), Sweden

·         Volvo Merchandise Corporation, Sweden

·         Volvo East Asia Pte Limited, - (VEAS), Singapore

·         Volvo Group Thailand Company Limited, Thailand

·         Thai-Swedish Assembly Company Limited, Thailand

·         TMBP Limited Thailand

·         Volvo Group Otomotiv Tic. Limited, Sti Turkey

·         Volvo IT North America Limited, United States

·         Volvo Penta of the Americas, LLC, United States

·         Volvo CE North America LLC, United States

·         Volvo Construction Equipment North America, LLC, United States

 

 

Entities in which Key

Management personnel can influence decisions:

·         Resource Center for Asphalt and Soil Training Academy Trust (RASTA)

 

 

CAPITAL STRUCTURE

 

As on 31.03.2013

 

Authorised Capital :

No. of Shares

Type

 

Value

Amount

 

 

 

 

35000000

Equity Shares

Rs.10/- each

Rs.350.000 Millions

15000000

Preferences Shares

Rs.10/- each

Rs.150.000 Millions

 

Total

 

Rs.500.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

10466884

Equity Shares

Rs.10/- each

Rs.104.700 Millions

 

 

 

 

 


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

31.03.2013

31.03.2012

I.        EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

 

104.700

104.700

(b) Reserves & Surplus

 

8715.600

8842.400

(c) Money received against share warrants

 

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

 

0.000

0.000

Total Shareholders’ Funds (1) + (2)

 

8820.300

8947.100

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

 

620.100

29.800

(b) Deferred tax liabilities (Net)

 

0.000

0.000

(c) Other long term liabilities

 

52.700

122.000

(d) long-term provisions

 

257.500

171.000

Total Non-current Liabilities (3)

 

930.300

322.800

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

 

1466.300

0.200

(b) Trade payables

 

5364.300

6936.900

(c) Other current liabilities

 

1459.300

1513.700

(d) Short-term provisions

 

64.800

160.900

Total Current Liabilities (4)

 

8354.700

8611.700

 

 

 

 

TOTAL

 

18105.300

17881.600

 

 

 

 

II.      ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

 

2797.800

2743.600

(ii) Intangible Assets

 

238.800

339.400

(iii) Capital work-in-progress

 

395.000

29.800

(iv) Intangible assets under development

 

0.000

0.000

(b) Non-current Investments

 

0.000

0.000

(c) Deferred tax assets (net)

 

556.800

486.000

(d)  Long-term Loan and Advances

 

2332.200

2123.400

(e) Other Non-current assets

 

0.000

0.000

Total Non-Current Assets

 

6320.600

5722.200

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

 

0.000

0.000

(b) Inventories

 

5163.600

6353.200

(c) Trade receivables

 

5308.200

4882.100

(d) Cash and cash equivalents

 

627.100

343.100

(e) Short-term loans and advances

 

685.800

581.000

(f) Other current assets

 

0.000

0.000

Total Current Assets

 

11784.700

12159.400

 

 

 

 

TOTAL

 

18105.300

17881.600

 

SOURCES OF FUNDS

 

 

 

31.03.2011

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

 

 

104.669

2] Share Application Money

 

 

0.000

3] Reserves & Surplus

 

 

8343.746

4] (Accumulated Losses)

 

 

0.000

NETWORTH

 

 

8448.415

LOAN FUNDS

 

 

 

1] Secured Loans

 

 

0.000

2] Unsecured Loans

 

 

21.998

TOTAL BORROWING

 

 

21.998

DEFERRED TAX LIABILITIES

 

 

0.000

 

 

 

 

TOTAL

 

 

8470.413

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

 

2193.188

Capital work-in-progress

 

 

111.224

 

 

 

 

INVESTMENT

 

 

0.000

DEFERREX TAX ASSETS

 

 

364.384

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

 

 

5646.027

 

Sundry Debtors

 

 

3309.803

 

Cash & Bank Balances

 

 

1937.248

 

Other Current Assets

 

 

262.969

 

Loans & Advances

 

 

1449.996

Total Current Assets

 

 

12606.043

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Current Liabilities

 

 

4876.391

 

Sundry Creditors

 

 

1625.357

 

Provisions

 

 

302.678

Total Current Liabilities

 

 

6804.426

Net Current Assets

 

 

5801.617

 

 

 

 

MISCELLANEOUS EXPENSES

 

 

0.000

 

 

 

 

TOTAL

 

 

8470.413

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Income

23357.700

22291.600

21439.000

 

 

Other Income

259.900

146.400

267.000

 

 

TOTAL                                     (A)

23617.600

22438.000

21706.000

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of materials

8899.300

6936.600

15500.000

 

 

Manufacturing and Other Expenses

--

--

3695.000

 

 

Purchases of stock in trade

6642.200

8935.600

--

 

 

Employee benefit expenses

2995.400

2295.500

--

 

 

Other expenses

4564.200

3765.000

--

 

 

Changes in inventories

350.800

(737.500)

--

 

 

TOTAL                                     (B)

23451.900

21195.200

19195.000

 

 

 

 

 

Less

PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

165.700

1242.800

2511.000

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

75.200

18.200

7.000

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                (E)

90.500

1224.600

2504.000

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

404.900

376.100

342.000

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX (E-F)                (G)

(314.400)

848.500

2162.000

 

 

 

 

 

Less

TAX                                                                  (H)

(441.200)

349.800

469.000

 

 

 

 

 

 

PROFIT / (LOSS) AFTER TAX (G-H)                  (I)

(126.800)

498.700

1693.000

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

NA

5686.000

4243.000

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

NA

NA

250.000

 

BALANCE CARRIED TO THE B/S

NA

NA

5686.000

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

FOB Value of Exports

NA

NA

44.826

 

 

Software Services

NA

NA

758.698

 

 

Product Design Services

NA

NA

1218.007

 

TOTAL EARNINGS

NA

NA

2021.531

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Components / Kits

NA

NA

5798.767

 

 

Capital Goods

NA

NA

77.937

 

 

Traded Items

NA

NA

4320.313

 

 

Spare Parts (Traded)

NA

NA

2425.921

 

TOTAL IMPORTS

NA

NA

12622.938

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

(12.11)

47.63

161.75

 

 KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)

(0.54)

2.22

7.80

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

(1.35)

3.81

10.08

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

(1.83)

4.87

14.61

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

(0.04)

0.09

0.26

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

0.24

0.00

0.00

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.41

1.41

1.85

 

 

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

Yes

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

Yes

8]

No. of employees

Yes

9]

Name of person contacted

Yes

10]

Designation of contact person

Yes

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

No

 

MARKET AND ECONOMIC SCENARIO

 

The Company is affected by the Indian economy slowdown, inflation, currency fluctuation and higher borrowing cost. The current account deficit has increased and capital inflow for investments has been falling and investors are cautious which has a negative impact on many businesses.

 

The Volvo market share for truck has decreased for 2013 compared to 2012. That is primarily due to the weak market for tractors. The market share is expected to improve based on the order book that VE Commercial Vehicles Limited (A Volvo Group and Eicher Motors Joint Venture) holds. Volvo Construction Equipment has increased its market share for excavator and road construction equipment. However, profitability is a concern due to higher product cost and the depreciation of the INR. The slowdown in the Indian bus industry is now worse than the financial downturn of 2008-09. Private market remains depressed and institutions have delayed purchases awaiting fund support. Customers are facing high operational costs and declining occupancies.

 

The Company continues to develop the service businesses from India as strategic initiatives.

 

OPERATIONS

 

The Company had completed its sixteenth year of operations. The revenue has been increased by only 6.4% compared to previous year. The other income of the Company has increased by 77.53 % compared to previous year. However, the operations have resulted in a loss before tax of Rs. 172.400 Millions for the year as against a profit before tax of Rs. 848.500 Millions during the previous year. Decreased operating result is due to mainly increase in purchase cost, employee benefit and other expenses.

 

UNSECURED LOAN

 

PARTICULARS

31.03.2013

(Rs. in Millions)

31.03.2012

(Rs. in Millions)

Long-term Borrowings

 

 

Rupee term loans from banks

38.200

29.800

Term loans from others

581.900

0.000

Short-term borrowings

 

 

Term loans from banks

1466.300

0.200

 

 

 

Total

2086.400

30.000

 

INDEX OF CHARGES

 

S.NO.

CHARGE ID

DATE OF CHARGE CREATION/MODIFICATION

CHARGE AMOUNT SECURED

CHARGE HOLDER

ADDRESS

SERVICE REQUEST NUMBER (SRN)

1

90197586

23/08/1999

75,000,000.00

ANZ GRINDLAYS BANK PLC

BANGALORE BRANCH, RAHEJA TOWERS M G ROAD, BANGAL ORE, KARNATAKA - 560001, INDIA

-

2

90197556

07/06/1999

250,000,000.00

ICICI BANKING CORPORATION

RAHEJA TOWERS 3 FLOOR, M G ROAD, BANGALORE, KARNATAKA, INDIA

-

3

90197472

08/05/1999 *

20,000,000.00

BANQUE NATIONALE DE PARIS

BANGALORE BRANCH, M. G. ROAD, BANGALORE, KARNATA KA - 560001, INDIA

-

4

90196344

08/05/1999 *

200,000,000.00

BANQUE NATIONALE DE PARIS

BANGALORE BRANCH, M G ROAD, BANGALORE, KARNATAKA
- 560001, INDIA

-

5

90199177

18/12/1998

200,000,000.00

BANQUE NATIONALE DE PARIS

THIRD FLOOR; LANDMARK BUILDING, 21/15; M.G. ROAD,
BANGALORE, KARNATAKA - 560001, INDIA

-

6

90197439

30/10/1998

200,000,000.00

THE VYSYA BANK LIMITED

OVERSEAS BRANCH, M.G. ROAD, BANGALORE, KARNATAKA,
INDIA

-

7

90200312

30/10/1998

200,000,000.00

THE VYSYA BANK LIMITED

OVERSEAS BRANCH, M G ROAD, BANGALORE, KARNATAKA,
INDIA

-

 

* Date of charge modification

 

FIXED ASSETS

 

Tangible assets

 

·         Land

·         Buildings

·         Plant and equipment

·         Furniture and fixtures

·         Vehicles

·         Office equipment

·         Computer equipments

·         Leasehold improvements

 

Intangible assets

 

·         Goodwill

·         Know-how

 

PRESS RELEASES

 

VOLVO TEAM TO ADDRESS FEARS AFTER RECENT ACCIDENTS

16, NOVEMBER 2013

 

‘A fuel tank in a bus or in a commercial vehicle does not explode’

 

Global automobile major Volvo Bus Corporation has flown in a team of international safety experts to address public anxiety following two recent accidents involving its luxury buses, which burst into flames near Mahabubnagar in Andhra Pradesh and near Haveri in Karnataka.

 

Akash Passey, senior vice-president and a member of the multinational’s executive management team, told The Hindu that Volvo was the first to introduce the bus chassis concept 12 years ago, at a time when bus bodies in the country were built on chasses meant for trucks.

 

Issues over exits in bus

He admitted that the recent accidents had raised “issues about exits” in the Volvo buses. “We have four emergency exits, instead of two prescribed by the law in India.” He claimed that 10 of the 12 windows in a multi-axle Volvo bus were “breakable either with a hammer or a solid object with reasonable force.”

 

Referring to the speculation that the fire in the accidents could have been caused by the nature and structure of the fuel tank, Mr. Passey said, “A fuel tank in a bus or in a commercial vehicle does not explode.”

 

Could the doors of the buses have jammed after the accident, making it difficult for passengers to exit? “If the electrical system is still functioning,” Mr. Passey said, “the doors would be operable, and if there is no electricity the pneumatic mechanism turns free, which enables the doors to be pushed open. There is no such thing as a central locking system in these buses.”

 

“But if there is a high-impact accident, the doors can get deformed, which can cause them to get jammed.”

 

Mr. Passey admitted that the recent “high-impact accidents” had caused people “to lose a little bit of the trust” they had for the company. He attributed the erosion of trust to “circumstances” beyond the control of the company. “This is why we are also eagerly waiting for the comprehensive investigation into the accidents,” he said.

 

VOLVO INDIA TO SPEED UP DELIVERIES

NOVEMBER 15, 2013

 

Eyes 15% market share by 2020

 

Luxury carmaker Volvo Auto India on Friday began deliveries of the next generation S60 sedan and XC60 sports utility vehicle in Hyderabad.

 

The Indian unit of the Sweden-based automobile giant hopes to bring down the waiting period for the V40 Cross Country car launched earlier this year.

 

Tomas Ernberg, Managing Director, said: “Volvo is working on bringing down the delivery period for the V40 Cross Country, which has been a hit across the globe and in India since its launch. This new offering has become a segment leader in several markets and we hope it will be able to do so in India.”

 

He opened a new Volvo Retail Experience concept store in India.

 

Volvo India expressed it would be able to increase its market share in India. “We expect to touch a sales volume of about 20,000 cars by 2020 garnering a market share of about 15 per cent. We expect to cross the 1,000-car mark this year,” he said.

 

He said S60 and XC60 are the best-selling models in India.

 

The new generation cars, priced at Rs 3.100 Millions and Rs 4.2500 Millions, respectively, ex-showroom, are being offered with modern diesel engines.

 

The dealership of Talwar Cars is in the process of opening up another showroom in Visakhapatnam shortly and a new service centre.

 

Close to about 25-30 per cent of the Volvo cars sold in India are from Andhra Pradesh, said Saket Talwar of Talwar Cars.

 

VOLVO LAUNCHES NEW S60, XC60 VERSIONS PRICED UP TO RS. 4.655 MILLIONS

23 OCTOBER 2013

 

NEW DELHI: Luxury carmaker Volvo Auto India is aiming for 20-fold increase in its sales in India at 20,000 units per annum by 2020, for which it will drive in new models and enhance its service network.

 

The company, which today launched upgraded versions of its two top selling models in India --S60 and XC60 -- priced between Rs 2.990 Millions and Rs 4.655 Millions (ex-showroom Delhi), is targeting to sell 1,000 units in 2013.

 

"We are aiming to sell 20,000 units per annum in India by 2020. We plan to enhance our product portfolio as well as service network to achieve the desired results," Volvo Auto India Managing Director Tomas Ernberg told PTI.

 

Last year, the company had sold 811 units in the country. So far, it has sold a cumulative of 2,500 cars since it began selling cars in the country in 2007.

 

On expansion of service network, Ernberg said: "We are planning to have around 40 dealerships by 2020. By the end of this calender year, we will have 15 dealerships in India."

 

When asked if the company would introduce new models to achieve the sales target, Ernberg said: "We plan to have more models by then. We are investigating as which models would fit in the India market".

 

The company currently sells five models in the country, including the S60 and XC60.

 

Commenting on the sales projections for the current year, Ernberg said the company is looking to sell around 1,000 units in the calender year.

 

"S60 and XC60 models would represent roughly 75-80 per cent of the sales. We are also looking to sell around 150-160 units of compact crossover vehicle V40 'Cross Country' during the year," he added.

 

The company has already sold around 650 units in the current year, Ernberg said.

 

When asked about the slowdown in the Indian car industry, Ernberg said: "It has been difficult in the past few months. Negative sentiment is there. But we believe it is a short term phenomenon. In the long term, India presents a fabulous opportunity".

 

The new generation of S60 sedan would be retailed between Rs 2.990 Millions and Rs 3.550 Millions, the crossover SUV, XC60 has been priced between Rs 4.050 Millions and Rs 4.655 Millions (ex-showroom Delhi).

 

"We have focused on quality and attention to details in order to give these models a major boost and sharpen their competitiveness," Ernberg said.

 

He added that the company has been "listening very carefully to its customers" to make improvements and ensure that these cars are even more attractive.

 

VOLVO PLANS TO SELL EICHER TRUCKS IN SE ASIA, AFRICA

3, DECEMBER 2013

INDORE: Swedish commercial vehicle giant Volvo plans to sell Eicher-branded trucks across various markets in south-east Asia and Africa using its sales network and has made India a global hub for sourcing medium-duty engines for trucks and buses.


The company has a 50:50 JV with Eicher's Lal family, Volvo Eicher Commercial Vehicles (VECV), and plans to build up on this further, making products and engines not for only for India but also for its requirements in other countries.

VECV will be the driving force for the push in India and the company has seen investments of Rs 18000.000 Millions over the last few years for expansion and modernization of products as well as for setting up of capacity for engines meant for Volvo.

 

Siddhartha Lal, MD and CEO of Eicher Motors, said the new product line-up of VECV — called the Pro Series — will help the company gain market share, while eating into the customers of top makers Tata Motors and Ashok Leyland. "There has so far been a duopoly in the commercial vehicle space. This duopoly takes customers for granted and does not treat them well," he said, in an apparent reference to Tata Motors and Ashok Leyland, which account for the majority of sales in the heavy vehicles space.


The new products have been developed using Volvo's technology and processes, while Eicher chips in with its sales and distribution network as well as its strength in frugal engineering. On the engine side, VECV is the sole supplier for Volvo group's medium duty engines (5-litre and 8-litre) having an output between 180hp and 280hp. These engines are used across Volvo's truck brands in various continents, except for the US.


Vinod Aggarwal, CEO of VECV, said the commercial vehicle market in India continues to remain sluggish. Commercial vehicles volumes have fallen by 16% in the April-October 2013 period as the economic slowdown and ban on mining activities in various regions saw buyers pulling out.

 

VE COMMERCIAL, EICHER-VOLVO’S INDIAN JV EYES DOUBLING MARKET SHARE IN THREE YEARS IN THE TRUCK SEGMENT

2, DECEMBER 2013

 

MUMBAI: Unveiling its new range of Eicher 'Pro Series' trucks and buses, India's third largest commercial vehicle maker - VE Commercial Vehicle, a joint venture between Eicher Limited and Swedish truck maker Volvo Group has set its sight to more than double its market share in three years, in the heavy duty truck segment.

 

With the new 'Pro' range of trucks VE Commercial aims to take on the top two players Tata Motors and Ashok Leyland in the Indian market and carve out a market share of 10-15%. The Eicher branded trucks will become the 5th major brand for the Volvo Group and a key engine for the Group's emerging market and will cater to the markets of South East Asia, Middle East and Africa.

 

The company showcased 11 different trucks and buses ranging from 5 tonne to 49 tonne, which was developed with an investment of Rs 18000.000 Millions over the last five years including the expense incurred in setting up the manufacturing facilities.

 

These new trucks and buses company claims to offer 5-10% better fuel efficiency, higher payload and a faster turn around time for the fleet operator, thereby boosting his profits. These products will be launched starting February of 2014 and it will be rolled out across the country in the 18 months time.

 

The company claims, they have spent 3 million man hours of engineering work, 7.7 million kilometres of testing, 50,000 hour of engine development with over Rs 10000.000 Millions of investment and 4,000 components developed from the scratch.

 

Ol of Persson, president and CEO, Volvo Group said "The trucks launched today are the embodiment of our joint efforts over the last five years. The vital combination of the Volvo Group's world class technology and the frugal cost expertise and management of Eicher has created a range that will set new standards amongst customers with high demands on profitability, flexibility and driver effectiveness."

 

In order to bring these new range of trucks in the market, VE Commercial Vehicle brought in the head of quality of 'UD Trucks' (another brand of Volvo Group) to oversee the development, the company revamped and modernised its the entire manufacturing systems, process and product development to bring in relevant features for the Indian and emerging markets.

 

The new heavy duty range of trucks which will take on Tata Motors Prima range and Ashok Leyland's New Gen truck range is powered by new generation engines adapted from Volvo Group technology with power capacity of 180-280 hp with high fuel efficiency, reliability and long life.

 

Siddhartha Lal, MD and CEO, Eicher Motors Limited. said The Volvo Group and Eicher Motors came together five years ago with a vision to modernize the Indian commercial vehicle industry and the Pro Range of trucks is the proof point.

 

"We are here today to present the most professional, holistic and progressive approach to Indian trucking.Our philosophy of "Go Pro" implies that our customers can truly work with and rely on a professional partner. Eicher's products, service and attitude are truly professional, and this enables our customers to become more productive, profitable and prosperous in their work and life," added Lal.

 

Joachim Rosenberg, executive VP, Volvo Group Trucks said, "today, Eicher is considered as the 5th brand in the competitive portfolio of Volvo Group brands. It is an integral part of the Volvo Group's strategy to expand in Asia and other growth markets. With the launch of the Pro series of trucks by Eicher, our strategy in Asia gets further strengthened."

 

 


 

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.62.41

UK Pound

1

Rs.102.54

Euro

1

Rs.85.20

 

 

INFORMATION DETAILS

 

Report Prepared by :

KVT

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

4

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

5

--RESERVES

1~10

6

--CREDIT LINES

1~10

6

--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

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

50

 

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.