|
|
|
MIRA INFORM REPORT
|
Report No. : |
505977 |
|
Report Date : |
27.04.2018 |
IDENTIFICATION DETAILS
|
Name : |
VOLVO GROUP INDIA PRIVATE LIMITED (w.e.f.10.03.2017) |
|
|
|
|
Formerly Known
As : |
VOLVO INDIA PRIVATE LIMITED |
|
|
|
|
Registered
Office : |
Yalachahally Village, Tavarekere Post, Hoskote Taluk,
Bangalore – 560122, Karnataka |
|
Tel. No.: |
91-80-66914000/66912137 |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2016 |
|
|
|
|
Date of
Incorporation : |
02.08.1996 |
|
|
|
|
Com. Reg. No.: |
08-024176 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
INR 105.010 Million |
|
|
|
|
CIN No.: [Company Identification
No.] |
U50101KA1996PTC024176 |
|
|
|
|
IEC No.: [Import-Export
Code No.] |
Not Divulged |
|
|
|
|
GSTN : [Goods & Service Tax
Registration No.] |
29AAACV6747N1ZK |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
Not Available |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACV6747N |
|
|
|
|
Legal Form : |
Private Limited Liability Company |
|
|
|
|
Line of Business
: |
Providing product design, software services, logistics services. [Registered Activity] |
|
|
|
|
No. of Employees
: |
Information denied by the management |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
|
MIRA’s Rating : |
A+ |
|
Credit Rating |
Explanation |
Rating Comments |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
Status : |
Excellent |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject was incorporated in the year 1996. It is a subsidiary of Volvo
Truck Corporation, Sweden. The company is engaged in manufacturing and sale of construction
equipment, trucks and buses. As per the Registrar of Companies date of balance sheet (i.e.
financial filed) is shown as 31.03.2017 but documents related to the
financial for the year 31.03.2017 are not available from any sources. As per the financial of 2016, the company has achieved a favorable
growth of 38.14% in its revenue as compared to the previous year’s revenue
but has incurred operational loss. The overall financial position of the company seems to be strong
marked by sound net worth base. Rating takes into consideration the subjects long established track
record and the financial and managerial support that the company receives
from its holding company. Business is active. Payment reported to be regular. In view of healthy financial position, 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
|
Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
India Rating |
|
Rating |
Long term loans: AAA |
|
Rating Explanation |
Highest degree of safety and carry lowest
credit risk. |
|
Date |
01.09.2017 |
|
Rating Agency Name |
India Rating |
|
Rating |
Short term loans: A1+ |
|
Rating Explanation |
Very strong degree of safety and carry
lowest credit risk. |
|
Date |
01.09.2017 |
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
31-03-2018.
BIFR (Board for Industrial & Financial Reconstruction) LISTING
STATUS
Subject’s name is not listed as a Sick Unit in
the publicly available BIFR (Board for Industrial & Financial
Reconstruction) list as of 27.04.2018
IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS
Subject’s name is not listed in the publicly
available IBBI (Insolvency and Bankruptcy Board of India) list as of report
date.
INFORMATION DENIED
MANAGEMENT NON-COOPERATIVE (91-80-66914000/66912137)
LOCATIONS
|
Registered Office : |
Yalachahally Village, Tavarekere Post, Hoskote Taluk,
Bangalore – 560122, Karnataka, India |
|
Tel. No.: |
91-80-66914000/66912137 |
|
Fax No.: |
Not Available |
|
E-Mail : |
|
|
Website : |
DIRECTORS
AS ON 31.03.2018
|
Name : |
Mr. Kamal Bali |
||||||||
|
Designation : |
Managing Director |
||||||||
|
Address : |
No-247, 4th Main, 4th Cross, 1st Block, Koramangala,
Bangalore -560034, Karnataka, India |
||||||||
|
Date of Birth/Age : |
09.01.1959 |
||||||||
|
Date of Appointment : |
01.04.2014 |
||||||||
|
DIN No.: |
00688141 |
||||||||
|
PAN No.: |
ACTPB3641F |
||||||||
|
Other Directorship:
|
|||||||||
|
|
|
||||||||
|
Name : |
Mr. Ingrid Susanne Jannesson |
||||||||
|
Designation : |
Director |
||||||||
|
Address : |
Andalen 7, Torslanda 42338, Sweden |
||||||||
|
Date of Birth/Age : |
03.08.1965 |
||||||||
|
Date of Appointment : |
11.10.2013 |
||||||||
|
DIN No.: |
06451268 |
||||||||
|
|
|
||||||||
|
Name : |
Mr. Niklas Valdemar Gustafsson |
||||||||
|
Designation : |
Director |
||||||||
|
Address : |
Pilfinksvagen 4, 448 35 Floda Sweden 44835 |
||||||||
|
Date of Birth/Age : |
31.08.1971 |
||||||||
|
Date of Appointment : |
15.09.2014 |
||||||||
|
DIN No.: |
06895419 |
||||||||
|
|
|
||||||||
|
Name : |
Mr. Nina Karin Jenny Aresund |
||||||||
|
Designation : |
Director |
||||||||
|
Address : |
Fjallbackagatan 15 S-416 74 Gothenburg 69138 Sweden |
||||||||
|
Date of Birth/Age : |
05.07.1974 |
||||||||
|
Date of Appointment : |
30.09.2015 |
||||||||
|
DIN No.: |
07040363 |
||||||||
MAJOR SHAREHOLDERS
AS ON 31.03.2018
|
Names of Shareholders |
|
No. of Shares |
|
Volvo Truck Corporation |
|
10466883 |
|
Volvo Holding Sverige Ab |
|
1 |
|
Volvo Bus Corporation |
|
34118 |
|
Total |
|
10501002 |
Equity Share Break up (Percentage of Total Equity)
AS ON 26.09.2017
|
Category |
Percentage |
|
Promoters- Body corporate |
100.00 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business
: |
Providing product design, software services, logistics services. [Registered Activity] |
||||||||
|
|
|
||||||||
|
Products / Services
: |
|
||||||||
|
|
|
||||||||
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Brand Names : |
Not Available |
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|
|
|
||||||||
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Agencies Held : |
Not Available |
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|
|
|
||||||||
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Exports : |
Not Divulged |
||||||||
|
|
|
||||||||
|
Imports : |
Not Divulged |
||||||||
|
|
|
||||||||
|
Terms : |
Not Divulged |
PRODUCTION STATUS – (NOT AVAILABLE)
GENERAL INFORMATION
|
Suppliers : |
|
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|
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|
Customers : |
|
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|
||||||||||||||||||||||
|
No. of Employees : |
Information denied by the management |
||||||||||||||||||||||
|
|
|
||||||||||||||||||||||
|
Bankers : |
|
|
Auditors : |
|
|
Name : |
Price Waterhouse LLP Chartered Accountants |
|
Address : |
5th Floor, Tower D, The Millenia, 1 and 2 Murphy Road, Ulsoor, Bangalore-560008, Karnataka, India |
|
PAN N Income-tax PAN of auditor or auditor's firm : |
AAFFP3698A |
|
|
|
|
Memberships : |
Not Available |
|
|
|
|
Collaborators : |
Not Available |
|
|
|
|
Holding company (AS
ON 31.03.2016): |
|
|
|
|
|
Fellow Subsidiary Company (AS ON
31.03.2016): |
|
CAPITAL STRUCTURE
AS ON 26.09.2017
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
100000000 |
Equity Shares |
INR 10/- each |
INR 1000.000 Million |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
10501002 |
Equity Shares |
INR 10/- each |
INR 105.010 Million |
|
|
|
|
|
FINANCIAL DATA
[all figures are
INR Million]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2016 |
31.03.2015 |
31.03.2014 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
105.010 |
104.669 |
104.700 |
|
(b) Reserves and Surplus |
4162.900 |
6418.800 |
7257.800 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending
allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
4267.910 |
6523.469 |
7362.500 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
1825.800 |
1633.100 |
1328.200 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long-term
liabilities |
66.000 |
50.000 |
38.400 |
|
(d) long-term
provisions |
687.900 |
526.400 |
337.000 |
|
Total Non-current
Liabilities (3) |
2579.700 |
2209.500 |
1703.600 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short-term
borrowings |
8353.600 |
4240.000 |
2929.700 |
|
(b) Trade
payables |
9737.000 |
6205.900 |
4836.100 |
|
(c) Other
current liabilities |
2041.180 |
1246.900 |
1814.700 |
|
(d) Short-term
provisions |
449.552 |
529.400 |
167.500 |
|
Total Current
Liabilities (4) |
20581.332 |
12222.200 |
9748.000 |
|
|
|
|
|
|
TOTAL |
27428.942 |
20955.169 |
18814.100 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
5034.900 |
4129.200 |
3215.400 |
|
(ii)
Intangible Assets |
58.100 |
94.300 |
145.100 |
|
(iii) Tangible assets
capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
(iv)
Intangible assets under development |
144.700 |
240.900 |
598.100 |
|
(b) Non-current Investments |
0.000 |
0.000 |
0.000 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d)
Long-term loans and advances |
2541.900 |
2689.200 |
3021.500 |
|
(e) Other
Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current
Assets |
7779.600 |
7153.600 |
6980.100 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
8821.900 |
5058.600 |
5783.800 |
|
(c) Trade
receivables |
6368.500 |
5842.100 |
3853.100 |
|
(d) Cash and
bank balances |
1031.400 |
962.700 |
974.000 |
|
(e)
Short-term loans and advances |
2152.100 |
1559.900 |
927.700 |
|
(f) Other
current assets |
1275.442 |
378.269 |
295.400 |
|
Total
Current Assets |
19649.342 |
13801.569 |
11834.000 |
|
|
|
|
|
|
TOTAL |
27428.942 |
20955.169 |
18814.100 |
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2016 |
31.03.2015 |
31.03.2014 |
|
|
SALES |
|
|
|
|
|
Income |
35933.200 |
26012.200 |
21877.300 |
|
|
Other Income |
405.500 |
619.600 |
197.300 |
|
|
TOTAL |
36338.700 |
26631.800 |
22074.600 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials
Consumed |
16802.900 |
8856.700 |
8570.600 |
|
|
Purchases of
Stock-in-Trade |
9200.200 |
6409.500 |
5769.800 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
(1894.800) |
1292.000 |
(516.100) |
|
|
Employee benefit expense |
4459.600 |
3562.500 |
3348.900 |
|
|
Other expenses |
7017.400 |
5525.200 |
5326.000 |
|
|
Prior period items |
(207.600) |
(24.400) |
66.200 |
|
|
Exceptional items |
(197.200) |
599.300 |
(198.200) |
|
|
TOTAL |
35180.500 |
26220.800 |
22367.200 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION |
1158.200 |
411.000 |
(292.600) |
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
836.600 |
757.100 |
263.600 |
|
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
321.600 |
(346.100) |
(556.200) |
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
569.200 |
436.600 |
424.500 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX |
(247.600) |
(782.700) |
(980.700) |
|
|
|
|
|
|
|
Less |
TAX |
15.100 |
56.300 |
477.100 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX |
(262.700) |
(839.000) |
(1457.800) |
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
F.O.B. Value of Exports |
8984.400 |
7963.700 |
NA |
|
|
TOTAL EARNINGS |
8984.400 |
7963.700 |
NA |
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
Raw Materials |
12603.000 |
4646.500 |
NA |
|
|
Components and spare
parts |
7159.300 |
4971.800 |
NA |
|
|
Capital Goods |
48.500 |
44.700 |
NA |
|
|
TOTAL IMPORTS |
19810.800 |
9663.000 |
NA |
|
|
|
|
|
|
|
|
Earnings / (Loss) Per
Share (INR) |
(25.02) |
(80.19) |
(139.23) |
CURRENT MATURITIES
OF LONG TERM DEBT DETAILS
|
Particulars |
31.03.2016 |
31.03.2015 |
31.03.2014 |
|
Current Maturities of Long term debt |
200.400 |
23.600 |
0.000 |
|
|
|
|
|
|
Cash generated from operations |
NA |
NA |
NA |
|
|
|
|
|
|
Net cash flows from (used in) operations |
(2463.500) |
52.600 |
(720.200) |
|
|
|
|
|
|
Net cash flows from (used in) operating activities |
(2583.000) |
(47.600) |
(637.700) |
KEY
RATIOS
EFFICIENCY RATIOS
|
PARTICULARS |
31.03.2016 |
31.03.2015 |
31.03.2014 |
|
Average Collection Days (Sundry
Debtors / Income * 365 Days) |
64.69 |
81.98 |
64.28 |
|
|
|
|
|
|
Account Receivables Turnover (Income / Sundry Debtors) |
5.64 |
4.45 |
5.68 |
|
|
|
|
|
|
Average Payment Days (Sundry Creditors / Purchases * 365 Days) |
136.68 |
148.38 |
123.09 |
|
|
|
|
|
|
Inventory Turnover (Operating Income / Inventories) |
0.13 |
0.08 |
(0.05) |
|
|
|
|
|
|
Asset Turnover (Operating Income / Net Fixed Assets) |
0.22 |
0.09 |
(0.07) |
LEVERAGE RATIOS
|
PARTICULARS |
31.03.2016 |
31.03.2015 |
31.03.2014 |
|
Debt Ratio ((Borrowing
+ Current Liabilities) / Total Assets) |
0.82 |
0.66 |
0.59 |
|
|
|
|
|
|
Debt Equity Ratio (Total Liability / Networth) |
2.43 |
0.90 |
0.58 |
|
|
|
|
|
|
Current Liabilities to Networth (Current Liabilities / Net Worth) |
4.82 |
1.87 |
1.32 |
|
|
|
|
|
|
Fixed Assets to Networth (Net Fixed Assets / Networth) |
1.23 |
0.68 |
0.54 |
|
|
|
|
|
|
Interest Coverage Ratio (PBIT / Financial Charges) |
1.38 |
0.54 |
(1.11) |
PROFITABILITY RATIOS
|
PARTICULARS |
|
31.03.2016 |
31.03.2015 |
31.03.2014 |
|
Net Profit Margin ((PAT / Sales) * 100) |
% |
(0.73) |
(3.23) |
(6.66) |
|
|
|
|
|
|
|
Return on Total Assets ((PAT / Total Assets) * 100) |
% |
(0.96) |
(4.00) |
(7.75) |
|
|
|
|
|
|
|
Return on Investment (ROI) ((PAT / Networth) * 100) |
% |
(6.16) |
(12.86) |
(19.80) |
SOLVENCY RATIOS
|
PARTICULARS |
31.03.2016 |
31.03.2015 |
31.03.2014 |
|
Current Ratio (Current
Assets / Current Liabilities) |
0.95 |
1.13 |
1.21 |
|
|
|
|
|
|
Quick Ratio ((Current Assets – Inventories) / Current
Liabilities) |
0.53 |
0.72 |
0.62 |
|
|
|
|
|
|
G-Score Ratio Financial (Networth / Total Assets) |
0.16 |
0.31 |
0.39 |
|
|
|
|
|
|
G-Score Ratio Debt (Debts / Equity Capital) |
98.85 |
56.34 |
40.67 |
|
|
|
|
|
|
G-Score Ratio Liquidity (Total Current Assets / Total Current Liabilities) |
0.95 |
1.13 |
1.21 |
Total
Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term
debts
FINANCIAL ANALYSIS
[all figures are INR
Million]
DEBT EQUITY RATIO
|
Particular |
31.03.2014 |
31.03.2015 |
31.03.2016 |
|
|
(INR
In Million) |
(INR
In Million) |
(INR
In Million) |
|
Share Capital |
104.700 |
104.669 |
105.010 |
|
Reserves & Surplus |
7257.800 |
6418.800 |
4162.900 |
|
Money received against share
warrants |
0.000 |
0.000 |
0.000 |
|
Share Application money
pending allotment |
0.000 |
0.000 |
0.000 |
|
Net
worth |
7362.500 |
6523.469 |
4267.910 |
|
|
|
|
|
|
Long-term borrowings |
1328.200 |
1633.100 |
1825.800 |
|
Short term borrowings |
2929.700 |
4240.000 |
8353.600 |
|
Current maturities of
long-term debts |
0.000 |
23.600 |
200.400 |
|
Total
borrowings |
4257.900 |
5896.700 |
10379.800 |
|
Debt/Equity
ratio |
0.578 |
0.904 |
2.432 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2014 |
31.03.2015 |
31.03.2016 |
|
|
(INR
In Million) |
(INR
In Million) |
(INR
In Million) |
|
Sales |
21877.300 |
26012.200 |
35933.200 |
|
|
|
18.900 |
38.140 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2014 |
31.03.2015 |
31.03.2016 |
|
|
(INR
In Million) |
(INR
In Million) |
(INR
In Million) |
|
Sales |
21877.300 |
26012.200 |
35933.200 |
|
Profit/ (Loss) |
(1457.800) |
(839.000) |
(262.700) |
|
|
(6.66
%) |
(3.23
%) |
(0.73
%) |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check list by
info agents |
Available in
Report (Yes/No) |
|
1 |
Year of establishment |
Yes |
|
2 |
Constitution of the entity -Incorporation
details |
Yes |
|
3 |
Locality of the entity |
Yes |
|
4 |
Premises details |
No |
|
5 |
Buyer visit details |
-- |
|
6 |
Contact numbers |
Yes |
|
7 |
Name of the person contacted |
No |
|
8 |
Designation of contact person |
No |
|
9 |
Promoter’s background |
Yes |
|
10 |
Date of Birth of Proprietor / Partners /
Directors |
Yes |
|
11 |
Pan Card No. of Proprietor / Partners |
No |
|
12 |
Voter Id Card No. of Proprietor / Partners |
No |
|
13 |
Type of business |
Yes |
|
14 |
Line of Business |
Yes |
|
15 |
Export/import details (if applicable) |
No |
|
16 |
No. of employees |
No |
|
17 |
Details of sister concerns |
Yes |
|
18 |
Major suppliers |
No |
|
19 |
Major customers |
No |
|
20 |
Banking Details |
No |
|
21 |
Banking facility details |
No |
|
22 |
Conduct of the banking account |
-- |
|
23 |
Financials, if provided |
Yes |
|
24 |
Capital in the business |
Yes |
|
25 |
Last accounts filed at ROC, if applicable |
No |
|
26 |
Turnover of firm for last three years |
Yes |
|
27 |
Reasons for variation <> 20% |
-- |
|
28 |
Estimation for coming financial year |
No |
|
29 |
Profitability for last three years |
Yes |
|
30 |
Major shareholders, if available |
Yes |
|
31 |
External Agency Rating, if available |
No |
|
32 |
Litigations that the firm/promoter
involved in |
-- |
|
33 |
Market information |
-- |
|
34 |
Payments terms |
No |
|
35 |
Negative Reporting by Auditors in the
Annual Report |
No |
MARKET AND ECONOMIC SCENARIO
Indias gross
domestic product (GDP) grew by 7.6% in the last fiscal (April 2015- March
2016), powered by an improvement in farm output (after two consecutive years of
low growth), an improvement in electricity generation and mining production in
the fourth quarter of the fiscal. The economic growth is estimated between at
7.3% and 7.6% during the current fiscal 2016-2017, trimmed down by 0.2% points
only on account of growing global uncertainties. The growth numbers for the
last fiscal, which reinforces Indias position as the worlds fastest-growing
large economy, came on the back of a strong 7.9% growth in the last quarter
(Jan-Mar 2016) of the last quarter of the financial year 2015-2016.
The passage of the
Constitutional Amendment Bill for the GST marks a historic point in India's
reforms journey, and this will open up several opportunities for business, once
fully and successfully implemented. Meanwhile, the central government has
implemented and is in the process of pushing through several key policy measures
which are poised to boost investment and resultant job creation in the coming
months and the years.
The economic
growth, especially in the industrial sector, remains relatively subdued while
consumption is strong and is likely to remain so through the rest of 2016. The
impact of previously enacted policy measures to ease the operating environment
for business is beginning to show through in the form of a surge in the
completion rate of investment projects.
Overall, by most
estimates, the Indian economy is poised for a sustainable growth (GDP growth
band of 7.5% to 8.5%) over the next few years, on the back of compelling growth
drivers and reforms, despite global headwinds. This is seen achievable on
account of several measures and initiatives of the government, including large
public spend on infrastructure creation (power, roads, highways, railways,
ports, dedicated freight corridors, inland water ways), education and skills
development, easing rural stress and improving rural infrastructure and ushering
in banking reforms and public health.
OTHER UPDATE ON FINANCIAL STATEMENTS
The Company would
like to place on record that the outstanding receivables against the total
Extra Duty Deposit (EDD) as on 31st March 2016 is INR 723.544 Million. Out of this,
the complete backs up customs documents are available for INR 663.057 Million.
In this regard, the management is in the process of securing the documents for
the balance amount of INR 60.487 Million and, in the meanwhile, a provision for
the same has been made in the books.
The Land
acquisition process in Hosakote is in progress and the Company now intends to
acquire about 42 acres of land as against initial plan of around 90 Acres, due
to business reasons. The management has accordingly made a provision in the
books for INR 147.000 Million against the land which they do not intend to
acquire at the moment.
Due to the
inverted duty structure, there is a built up of INR 1428.654 Million. The
management shall utilize these duty credits going forward through exports and
domestic sales, as well as due to inverted duty correction on account of
upcoming GST regime. However, for abundant caution and as a measure of good
accounting practice, the management has made an estimated provision of INR
559.948 Million in the books of accounts. The additional provision during the
year is disclosed as exceptional item in the financial statements.
During the year,
Volvo IT division was sold to HCL Technologies on March 31, 2016 and the gain
on such sale is disclosed as exceptional item in the Financial Statements
amounting to INR 197.174 Million. During the current year, the Company has
written back provisions amounting to INR 119.502 Million relating to old
accruals for VCE marketing expenses which mainly accounted for sales
commission, sales incentive, other dealer incentive, provision for doubtful
debts, etc.
During the current
year, the Company has recognized prior period service income aggregating to INR
207.577 Million relating to GTO QEKD (Quality, Engineering, KD) division. The
management is in the process of incorporating robust process to ensure
completeness of services revenue recognized within the financial year.
REVIEW OF BUSINESS OPERATIONS, MAJOR DEVELOPMENTS
AND FUTURE PROSPECTS
The Company has completed
its nineteenth year of operations. The gross revenue has grown by 38% compared
to the previous year. The other income decreased by 53%. The operations have
resulted in a loss before tax of 2476.000 Million for the year as against a
loss before tax INR 7827.000 Million during the previous year. The operating
result has improved to a large extent, mainly due to increase in revenue,
divestment of Volvo IT infrastructure business to HCL Technologies.
The land
acquisition process in Hosakote is in progress and the same is being handled by
M/s. Vestian Global Workplace Services Private Limited, as the aggregator for
the Companyalongwith the support of external law firm, Upasana Associates. The
current decision is to acquire approximately 42 acres with within an overall
budget of 603.000 Million. In the event, the budget of 603.000 Million is to be
exceeded to secure more than currently planned parcel of land to mitigate any
potential legal or financial risks, the additional investment amount shall be requested
separately in a second phase, but only subsequent to successfully progressing
on the ongoing target of 42 acres. This is targeted to be concluded by July
2017. The revised project directives and governance structure has been
established now with project working group meetings, proposed monthly steering
committee meetings, etc.
Regarding the
merger of Volvo Buses India Private Limited with Volvo India Private Limited,
the directors pleased to inform the shareholders that with a view to
simplifying the legal structure of the Volvo Group companies in India, as also
to potentially optimize certain common costs, create higher tax efficiency and
a better financial regime, the merger formalities between Volvo India Private
Limited (VIPL) and Volvo Buses India Private Limited (VBI) has been completed
successfully in December 2015. Accordingly, a project to execute the
side-stream merger of VIPL and VBI during 2015 was undertaken, wherein the
Appointed Date of the legal merger was 1st April 2015 and the Effective Date
was the date when the merger is approved by the Karnataka High Court. M/s. BMR
and Associates were appointed the Tax and Legal Advisors. The type of merger
and legal structure post-merger has been decided together with BMR and
Corporate Tax headquarters. The company has received the order from the
honorable High Court of Karnataka approving this merger during December 2015.
Subsequently, almost all the post-merger formalities covering legal, taxation,
accounting, and operational plan have been completed.
The Directors are
optimistic about company’s business prospects and are hopeful of better volumes
and improved performance in the coming years, on the back of demand growth.
The Company
continues to develop the stream of services business from India as strategic
initiatives.
AMALGAMATION
Regarding the merger of Volvo Buses India Private Limited with Volvo India Private Limited, the directors pleased to inform the shareholders that with a view to simplifying the legal structure of the Volvo Group companies in India, as also to potentially optimize certain common costs, create higher tax efficiency and a better financial regime, the merger formalities between Volvo India Private Limited (VIPL) and Volvo Buses India Private Limited (VBI) has been completed successfully in December 2015. Accordingly, a project to execute the side-stream merger of VIPL and VBI during 2015 was undertaken, wherein the Appointed Date of the legal merger was 1st April 2015 and the Effective Date was the date when the merger is approved by the Karnataka High Court. M/s. BMR & Associates were appointed the Tax and Legal Advisors. The type of merger and legal structure post-merger has been decided together with BMR and Corporate Tax headquarters. The company has received the order from the honorable High Court of Karnataka approving this merger during December 2015. Subsequently, almost all the post-merger formalities covering legal, taxation, accounting, and operational plan have been completed.
UNSECURED LOANS:
(INR
In Million)
|
Particulars |
As
on 31.03.2017 |
As
on 31.03.2016 |
|
LONG TERM
BORROWING |
|
|
|
Rupee term loans from banks |
48.900 |
42.000 |
|
Other external commercial borrowings |
1776.900 |
1591.100 |
|
SHORT TERM
BORROWING |
|
|
|
Rupee term loans from banks |
8353.600 |
4240.000 |
|
Total |
10179.400 |
5873.100 |
INDEX OF CHARGE:
|
SNO |
SRN |
CHARGE ID |
CHARGE HOLDER NAME |
DATE OF CREATION |
DATE OF MODIFICATION |
DATE OF SATISFACTION |
AMOUNT |
ADDRESS |
|
1 |
Y10302211 |
90200312 |
THE VYSYA BANK
LIMITED |
30/10/1998 |
- |
- |
200000000.0 |
OVERSEAS BRANCHM G
ROADBANGALOREKAIN |
|
2 |
Y10299338 |
90197439 |
THE VYSYA BANK
LIMITED |
30/10/1998 |
- |
- |
200000000.0 |
OVERSEAS BRANCHM.G.
ROADBANGALOREKAIN |
|
3 |
C64312291 |
90197472 |
BANQUE NATIONALE
DE PARIS |
18/12/1998 |
08/05/1999 |
20/08/2015 |
20000000.0 |
BANGALORE BRANCHM.
G. ROADBANGALOREKA560001IN |
|
4 |
B41910027 |
90199523 |
THE VYSYA BANK LTD |
15/05/2002 |
- |
13/06/2012 |
82088000.0 |
M G RAOD BRANCHM G
ROADBANGALOREKA560001IN |
|
5 |
Y10299455 |
90197556 |
ICICI BANKING
CORPORATION |
07/06/1999 |
- |
18/12/2003 |
250000000.0 |
RAHEJA TOWERS 3
FLOORM G ROADBANGALOREKA560001IN |
|
6 |
Y10299485 |
90197586 |
ANZ GRINDLAYS BANK
PLC |
23/08/1999 |
- |
11/07/2003 |
75000000.0 |
BANGALORE
BRANCHRAHEJA TOWERS M G ROADBANGALOREKA560001IN |
|
7 |
Y10298243 |
90196344 |
BANQUE NATIONALE
DE PARIS |
18/12/1998 |
08/05/1999 |
18/11/1999 |
200000000.0 |
BANGALORE BRANCHM G
ROADBANGALOREKA560001IN |
|
8 |
Y10301076 |
90199177 |
BANQUE NATIONALE
DE PARIS |
18/12/1998 |
- |
18/11/1999 |
200000000.0 |
THIRD FLOOR;
LANDMARK BUILDING21/15; M.G. ROADBANGALOREKA560001IN |
FIXED ASSETS:
Tangible assets
- Land
- Buildings
- Plant and equipment
- Furniture and fixtures
- Vehicles
- Ships vessels
- Office equipment
- Leasehold improvements
Intangible assets
- Goodwill
- Computer software
- Know-how
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
INR |
|
US Dollar |
1 |
INR 66.83 |
|
|
1 |
INR 93.17 |
|
Euro |
1 |
INR 81.38 |
INFORMATION DETAILS
|
Information
Gathered by : |
GYT |
|
|
|
|
Analysis Done by
: |
NYT |
|
|
|
|
Report Prepared
by : |
KVT |
SCORE FACTORS
|
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 |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on
secured terms only |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
|
NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.