Attachment 1

 

Report Update On

30th October, 1999

 

 

Report on

ACCURATE COMMUNICATION TECHNOLOGIES (INDIA) PRIVATE LIMITED

 

 

Registered Office

50 Moosa Street, T. Nagar, Chennai – 600 017, Tamilnadu, INDIA

 

 

Secondary Address

24/204 Natesan Street, 11/F Singapore Complex, T. Nagar, Chennai – 600 017, Tamilnadu, INDIA

 

 

Tel. No.

91-44-434 9944

Fax No.

91-44-433 2111

E-Mail

--

Telex

--

 

 

Attachment 2

 

S U M M A R Y

 

 

Incorporated

1996

Status

Satisfactory

 

 

 

 

Registration No.

35800

Chief Executive

Mr. Sriram Visveswaran

 

 

 

 

Capital  (Rs.)

 

Payments

Regular

 

 

 

 

Sales   (Rs.)

 

Litigation

--

 

 

 

 

Net Worth (Rs.)

 

Banking Reputation

Satisfactory

 

 

 

 

No. of Employees

25

Auditors

 

 

 

 

 

Credit Rating

Ba (See attachment 3)

 

 

 

INDUSTRY

 

The Indian Hardware industry, which used to be the main source of revenue for the IT industry has been the hardest hit by the global recession and faced immense competition from the international companies and the grey market. Despite the reduction in the prices of PCs, the demand has been sluggish. The hardware sector showed a negative growth in FY98 due to poor export performance of hardware components.

 

In FY98 industry registered a growth of 19.5% in volume terms whereas it registered negative growth of 7% in terms of value. During the year, prices continued to move downward by the demand was sluggish due to dismal buying from the corporate and government sector. The only sector that have saved the hardware sector from reaching its botton was SME (Small and Medium Enterprises) and SOHO (Small Office & Home Office) segment, which accounted for about 58% of sales in FY98. The PC market grew by 32.75% in unit shipments but only 9.63% in value terms. The prices of the PCs continued to move downwards and the average price of a PC came down to Rs.40,000.

 

The peripherals market, which is linked to the PC market, showed a similar trend. Peripheral market grew by only 18% in FY98 to record a turnover of Rs.8,258.9 millions, out of which printer segment accounted for over 50% of the total revenue. Printer segment achieved a growth of 7.56% in terms of value, whereas the shipments have increased by 15% in FY98. The most impressive performance has been from hard disk drive and tape drives segment, which recorded a growth of 80% and 173% in FY98 over FY97.

 

************************

 

HISTORY

 

The company was incorporated on 19th June, 1996 at Chennai in Tamilnadu having Company Registration Number 35800.

 

LEGAL FORM

 

It is a Private Limited Liability company.

 

DIRECTORS

 

Mr. Sriram Visveswaran

Mr. R. Srinivasan

Mr. Jayaraman Kumar

 

BUSINESS

 

Although, incorporated in June, 1996, the company started its operations in June, 1999.

 

It is engaged in Maintenance of Computers on Annual Contract Basis, as well as Development of Software Packages. It has sold a few assembled computers.

 

It’s main customers are Computer Education Centres, Colleges, etc.

 

Some of the Major Customers of the company are :

 

K                 NIIT Limited, 46 Cathedral Road, and Centres located in Tamilnadu

K                 Christian College, Tambaram, Chennai – 600 045

K                 Kodaikanal Christian College, Kodaikanal, Madurai, Tamilnadu

 

The company employs 25 persons in different positions.

 

SISTER CONCERNS

 

Nil

 

BANKERS

 

K                 State Bank of Travancore, Alwarpet Branch, 4/1 Eldams Road, Chennai – 600 018, Tamilnadu, INDIA

Tel. No.      91-44-433 2505

Only A Current Account

 

FINANCIAL INFORMATION

 

No financials are available from any sources.

 

Mr. Jayaram Kumar was contacted and he stated that their company has not yet entered into any export import trade. They have not contacted any party in Europe for new or any business. He feels that our counterpart in Finland has sought report on this company from prospects other countries.

 

CAPITAL STRUCTURE

 

Authorised Capital :

100,000

Equity Shares of Rs.10/- each

Rs.1.000 million

 

 

 

Issued, Subscribed & Paid-up Capital :

 

Not Available

 

 

COMMENTS

 

The company’s estimated annual revenue is of Rs.5/Rs.6 millions. Directors are reported as experienced and respectable businessmen. Their trade relations are reported as fair. Payments are usually correct and as per commitments.

 

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

 

Your proposed business dealings of US$ 162,000 can be considered against safe and secured trade terms and conditions.

 

Attachment 3

 

 

SCORE SHEET

 

SCORE

CREDIT 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. Maybe drawn to slightly difficult position as unfavourable conditions arise. Minimal assurance for timely payment on interest and principal sums

Moderate

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively limited or considered not known. Capability to pay both interest and principal sums is doubtful

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

 

Attachment 4

 

 

INDIA

 

INDIA, a Union of States, is a Sovereign Socialist Secular Democratic Republic with a Parliamentary System of government. It covers an area of 32872631 sq. km. Population, as on 1st March, 1991 (last counted) stood at 846.30 millions.

 

The value of total foreign trade increased to Rs.2,778,392.8 millions in 1997-98. During 1997-98, it’s total exports amounted to Rs.1,262,857.6 millions and imports increased to Rs.1,515,535.2 millions.

 

As on 20th April, 1999, Standard and Poor’s affirmed its ratings for India and said the country’s outlook was stable despite weak coalition governments. S&P affirmed its BB foreign currency and the BBB local currency ratings for India. The B foreign currency and A3 local currency short-term issuer credit ratings were also affirmed. The outlook is stable. Official foreign exchange reserves cover about 165 percent of total government, public sector and private sector external principal-repayment obligations due within the next 12 months. At $32.6 billion as on April 7, 1999, they mitigate the risk of a sudden loss of external confidence even as exports decelerate and the trade gap widens, the agency said.

 

 

LEADING EONOMIC INDICATORS

 

 

Outstanding As On

% Variation Over

Banking, M3 & Forex

(Rs. mlns.)

Feb. 26, 1999

End-March 1998

Financial Year So Far

Year Ago

1997-98

1998-99

 

 

 

 

 

 

Aggregate Deposits

6,983,380

6,054,100

15.3

15.3

19.8

Demand Deposits

1,029,500

1,025,130

0.2

0.4

13.4

Time Deposits

5,953,880

5,028,970

18.7

18.4

20.9

Investments

2,519,660

2,187,050

12.3

15.2

17.7

Government Securities

2,203,170

1,869,570

14.2

17.8

21.4

Other Approved Securities

316,490

317,480

2.7

-0.3

-2.3

Bank Credit

3,547,420

3,240,790

12.4

9.5

13.3

Food Credit

167,320

124,850

62.4

34.0

35.6

Non-food Credit

3,380,110

3,115,940

11.0

8.5

12.4

Money Supply M3 (Feb. 26, 1999)

9,455,060

8,253,890

13.4

14.6

18.8

Net Bank Credit to Government

3,868,200

3,306,190

11.4

17.0

20.3

Reserve Bank Credit to Government

1,543,690

1,351,600

5.1

14.2

18.3

Bank Credit to Commercial Sector

4,651,290

4,321,900

11.8

7.6

10.6

FOREX (US$ mln.) March 19, 1999

312,350

293,670

7.0

6.4

10.5

Foreign Currency Assets

282,560

259,750

11.1

8.8

13.7

 

FOREIGN INSTITUTIONAL INVESTMENT IN INDIA

 

Financial Year

Gross Purchases (Rs. mlns.)

Gross Sales

 

(Rs. mlns.)

Net Investment (Rs. mlns.)

 

 

 

 

1992-93

175

40

135

1993-94

55,927

4,665

51,262

1994-95

76,310

28,354

47,966

1995-96

96,930

27,520

69,420

1996-97

155,540

69,804

85,746

1997-98

186,948

127,373

59,577

1998-99

161,150

176,993

-15,844

Total

732,980

434,749

298,262

 

FOREIGN EXCHANGE RATES

 

Currency

 

Unit

Indian Rupees

US Dollar

1

Rs.43.14

UK Pound

1

Rs.70.34

Euro

1

Rs.45.19

 

Attachment 5

 

ACKNOWLEDGEMENT

 

Dear Sir/Madam,

 

As part of our control system, please fax/email us this note upon receipt of this report. If we do not receive the acknowledgement within 24 hours, we will assume that our report meets your requirement. If you have any suggestion to help us improve our reports and services, please do not hesitate to let us know.

 

Thank you.

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To        : MIRA INFORM PRIVATE LIMITED

From   :

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GOOD

FAIR

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Company’s Stamp & Signature