MIRA
INFORM REPORT
|
Report Date : |
25.10.2006 |
IDENTIFICATION
DETAILS
|
Name : |
MASCON
GLOBAL LIMITED |
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Registered Office : |
"Sri Rama Building", 1st
Floor, New No. 38 (Old No. 159), Creams Road, Chennai - 600 006 |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
03.01.2001 |
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Com. Reg. No.: |
18-46402 |
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CIN No.: [Company
Identification No.] |
U45202TN2001PLC046402 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHEM02489E |
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Legal Form : |
A public limited liability company. The company's shares are listed on the
Stock Exchanges |
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Line of Business : |
Subject
act as Global Provider of Information Technology and Telecom Support Services
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RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
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Maximum Credit Limit : |
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Status : |
Moderate
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Payment Behaviour : |
Slow but
Correct |
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Litigation : |
Clear |
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Comments : |
Subject
is an established software development company having moderate track. Profit
margin is under pressure. Payments are reported as slow and delayed. The
company can be considered for small to mediocre business dealings at usual
trade terms and conditions. |
LOCATIONS
|
Registered Office : |
"Sri Rama Building", 1st
Floor, New No. 38 (Old No. 159), Creams Road, Chennai - 600 006 |
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Tel. No.: |
91-44-42113407/42113401/43084068 |
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Fax No.: |
91-44-24349330/28295972 |
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E-Mail : |
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Website : |
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Corporate Office |
B - 8/ 10, Vasant Vihar, New
Delhi 110057 Tel: 91-11-26154991 Fax:91-11-26153441 |
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Americas |
US 1699 E. Woodfield Road, Suite
200, Schaumburg,
IL 60173, USA Tel: +1-(847)-619-5005 Fax: +1-(847)-969-9097 Email: mascon@masconit.com New Jersey 1405
Route 18S, St# 106, Old Bridge, NJ, 08857 Tel:
+1-(732) - 679 – 0770 Fax:
+1-(732) - 679 – 0979 Email:
mascon@masconit.com Mexico S de R.L. de C.V.3ER. Piso Local
1, Pabellon Tec. Av. Eugenio Garza Sada, # 427 Sur.,
Col. Alta Vista,
Monterrey N.L. 64849, Mexico Tel: +52-(818)-387-5909 Fax: +52-(818)-387-5945 Email: mascon@masconit.com |
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Europe |
London Devlin
House, 4TH Floor, 36 St. George Street, Mayfair, London, W1S 2FW Tel: +44-20-7629
9724/+44-20-7491 9567 (two lines) Fax: +44-20-7629 3604 |
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Asia |
New Delhi B - 8/ 10, Vasant Vihar, New
Delhi 110057 Tel: 91-11-26154991 Fax:91-11-26153441 Bangalore #59/2 100 ft Ring Road , Banashankari
II Stage , Bangalore 560070 Tel: 91-80-66601500(30 lines) Fax: 91-80-26796231 Chennai Rishab Info Park, 14-17,A Super,
Thiru-Vi-Ka Industrial Estate, Guindy, Chennai – 600032 Tel:91-44-43913400 Hyderabad A1 & A2, Quadrant 3, Cyber Towers, Hitech City, Madhapur, Hyderabad - 500 081 Tel: 91-40-4003 0511 |
DIRECTORS
|
Name : |
Mr. K. Chandra |
|
Designation : |
Chairman |
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Name : |
Dr. Nandu N Thondavadi |
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Designation : |
Director
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Name : |
Mr. K. R. Paramesvar |
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Designation : |
Director
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Name : |
Mr. V Prakash |
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Designation : |
Director
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Name : |
Mr. Shiv Kumar Jatia |
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Designation : |
Director
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Name : |
Mr. Kiishore Son! |
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Designation : |
Director
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Name : |
Mr. K. N. Bhat |
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Designation : |
Director
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Name : |
Mr. R. Gowri Shanker |
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Designation : |
Director
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Name : |
Mr. Shiv Vikram Kemka (w.e.f. 12.05.2006) |
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Designation : |
Director
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Name : |
Mr. Dinesh Sood (w.e.f. 12.05.2006) |
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Designation : |
Director
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Name : |
Mr. Pankaj Sehgal (w.e.f. 12.05.2006) |
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Designation : |
Director
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KEY EXECUTIVES
|
Name : |
Mr. S. Sivakumar |
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Designation : |
Company Secretary |
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Committees of the Board |
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Audit Committee |
Mr. K. R. Paramesvar Chairman Mr. Kiishore Soni Mr. Shiv Kumar Jatia Mr. K. N. Bhat Mr. V. Prakash |
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Compensation Committee |
Mr. Shiv Kumar Jatia Chairman Mr. K. R. Paramesvar Mr. Kiishore Soni Mr. K. N. Bhat |
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Share Transfer / Investor
Grievance Committee |
Mr. K. R. Paramesvar Chairman Mr. Shiv Kumar Jatia Mr. Kiishore Soni |
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Investment Committee |
Mr. K. Chandra Dr. Nandu N Thondavadi Mr. Kiishore Soni Mr. Dinesh Sood |
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GDR Committee |
Mr. K. Chandra Mr. Kiishore Soni Mr. K.N. Bhat Mr. Shiv Kumar Jatia |
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Preferential Issue
Committee |
Mr. K. Chandra Chairman Mr. V. Prakash Mr. K.N. Bhat Mr. Shiv Kumar Jatia Mr. Kiishore Soni |
MAJOR SHAREHOLDERS
|
Names
of Shareholders |
No. of Shares |
Percentage of Holding |
|
Promoters |
|
|
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Foreign Promoters |
1,763,200 |
0.68 |
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Non- Promoters |
|
|
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Institutional Investors |
|
|
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Banks/Financial
Institutions |
16,495,990 |
6.36 |
|
FIIS |
8,975,514 |
3.46 |
|
Others |
|
|
|
Private Corporate
Bodies |
31,596,109 |
12.18 |
|
Indian Public |
25,691,902 |
9.91 |
|
NRIs/OCBs |
26,305,818 |
10.14 |
|
Directors &
their relatives |
62,750 |
0.02 |
|
Present Employees |
66,400 |
0.03 |
|
GDRs- underlying
shares |
148,352,724 |
57.21 |
|
Total |
259,310,407 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject
act as Global Provider of Information Technology and Telecom Support Services
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|
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Product.: |
Computer
Software – 852423.01 |
GENERAL
INFORMATION
|
Bankers : |
v
ICICI Bank Limited, Chennai v
IDBI Bank Limited, Chennai v
Oriental Bank of Commerce, Chennai v Jammu & Kashmir Bank Limited, New Delhi |
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Facilities : |
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Banking Relations : |
Unknown
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Auditors : |
Statutory Auditors G. Balu Associates Chartered Accountant Legal Advisors HSB Partners Chennai |
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Associates/Subsidiaries : |
Nil |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
360000000 |
Equity
Shares |
Rs. 10/- Each |
Rs. 3600.000 Millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
259310407 |
Equity
Shares |
Rs. 10/- Each |
Rs. 2593.104 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
2593.104 |
1765.131 |
1239.200 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
2212.968 |
1511.223 |
408.600 |
|
|
4] (Accumulated Losses) |
(224.899) |
(434.419) |
0.000 |
|
|
NETWORTH |
4581.173 |
2841.935 |
1647.800 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
554.262 |
819.636 |
874.200 |
|
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2] Unsecured Loans |
50.050 |
7.500 |
7.500 |
|
|
TOTAL BORROWING |
604.312 |
827.136 |
881.700 |
|
|
DEFERRED TAX LIABILITIES |
0.002 |
0.002 |
0.000 |
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|
|
|
|
|
|
|
TOTAL |
5185.487 |
3669.073 |
881.700 |
|
|
|
|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
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FIXED ASSETS [Net Block] |
88.801 |
97.272 |
98.700 |
|
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Capital work-in-progress |
303.344 |
201.620 |
310.800 |
|
|
|
|
|
|
|
|
INVESTMENT |
2299.564 |
1458.818 |
904.700 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
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Inventories |
0.000
|
0.043 |
0.000 |
|
|
Sundry Debtors |
827.780
|
727.480 |
719.300 |
|
|
Cash & Bank Balances |
302.707
|
30.304 |
23.900 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
1521.095
|
1316.820 |
877.800 |
|
Total Current Assets |
2651.582
|
2074.647 |
1621.000 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
203.570
|
177.556 |
456.000 |
|
|
Provisions |
36.300
|
23.897 |
19.000 |
|
Total Current Liabilities |
239.870
|
201.453 |
475.000 |
|
|
Net Current Assets |
2411.712
|
1873.194 |
1146.000 |
|
|
|
|
|
|
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MISCELLANEOUS EXPENSES |
82.066 |
38.169 |
69.300 |
|
|
|
|
|
|
|
|
TOTAL |
5185.487 |
3669.073 |
2529.500 |
|
PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Sales Turnover [including other income] |
1925.100 |
2264.700 |
1387.500 |
|
|
|
|
|
|
Profit/(Loss)
Before Tax |
212.800 |
253.600 |
(126.700) |
|
Provision
for Taxation |
3.300 |
0.200 |
(71.900) |
|
Profit/(Loss)
After Tax |
209.500 |
253.400 |
(54.800) |
|
|
|
|
|
|
Export
Value |
1791.075 |
2029.237 |
NA |
|
|
|
|
|
|
Total
Expenditure |
449.057 |
448.439 |
1385.800 |
QUARTERLY
|
PARTICULARS |
|
|
30.06.2006 (1ST Quarter) |
|
Sales Turnover |
|
|
259.100 |
|
Other Income |
|
|
69.200 |
|
Total Income |
|
|
328.300 |
|
Total Expenditure |
|
|
241.300 |
|
Operating Profit |
|
|
87.000 |
|
Interest |
|
|
15.000 |
|
Gross Profit |
|
|
72.000 |
|
Depreciation |
|
|
5.300 |
|
Tax |
|
|
0.600 |
|
Reported PAT |
|
|
66.100 |
200606 Quarter 1- The above results were reviewed by the Audit Committee and taken
on record by the Board of Directors in their meeting held on 28.07.2006. 2. The
consolidated results include the quarterly results of newly acquired entities
namely. Mascon Global Consulting Inc., USA (formerly knoun-i as Anthem
Technologies Inc), and Exalt Systems Limited, Hyderabad, which have become the
wholly owned subsidiaries of ; the Company during this quarter. 3. The
provision for deferred tax asset (net} for the current year has not been
recognised on a prudent basis in accordance with the AS-22 issued by ICAL 4. In
term of Clause 41 of the Listing Agreement, there is one investor complaints
and the same is yet to be resolved. 5. Figures have been regrouped /
reclassified wherever necessary, to make them comparable.
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt Equity Ratio |
0.19 |
0.38 |
0.74 |
|
Long Term Debt Equity Ratio |
0.16 |
0.34 |
0.65 |
|
Current Ratio |
7.25 |
4.23 |
1.70 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
7.60 |
9.32 |
6.74 |
|
Inventory |
0.00 |
0.00 |
0.00 |
|
Debtors |
2.34 |
2.84 |
1.76 |
|
Interest Cover Ratio |
3.24 |
3.21 |
(0.11) |
|
Operating Profit Margin (%) |
18.27 |
19.10 |
1.12 |
|
Profit Before Interest and Tax Margin (%) |
16.93 |
17.93 |
(0.90) |
|
Cash Profit Margin (%) |
12.86 |
13.50 |
(1.94) |
|
Adjusted Net Profit Margin (%) |
11.53 |
12.33 |
(3.96) |
|
Return on Capital Employed (%) |
6.55 |
11.30 |
0.00 |
|
Return on Net
Worth (%) |
5.18 |
10.29 |
0.00 |
STOCK PRICES
|
Face
Value |
Rs.10/- |
|
High |
Rs.10.00/- |
|
Low |
Rs.8.14/- |
LOCAL AGENCY
FURTHER INFORMATION
History
Mascon
Global Limited (Mascon), a subsidiary of Martek Holdings Inc a US based
software services and product company with over a decade's presence in the US
IT industry was incorporated in the year 1998. Mascon was formed by taking over
an existing listed company Assan Leasing and Finance Company, and subsequently
changed its name to Mascon Global on Aug 1998. It was promoted by Dr. Nandu
Thondavadi has a development center in Chennai with an area of 35,000 sq ft and
300 employees.
Mascon has an ideal mix of product and services which includes management
consulting, IT projects, IT consulting, products, onsite consultancy etc. The
company is lending its service offering in multiple industry verticals
including manufacturing, financial services, retail, telecommunications and
Healthcare. The company's product, AIMS Advanced Integrated Management Suite,
is a windows based, integrated business management suite. The product is mainly
at the plastic processor industry and the printed circuit board (PCB)
manufacturing industry. Some of the clients for these products include Bruce
Plastics, Matsushita, General Films, Phillips, etc. Mascon is already certified
ISO 9001.
The company has entered into a joint venture with MasterCard
International, USA for creation of to develop and maintain core processing
Software for MasterCard.
The subsidiaries of Mascon are Mascon Global Technologies Inc., (USA),
Mascon International Limited (Mauritius), Mascon Global (Europe) Limited (UK),
Mascon Global Information S.DE.RL.DE.CV. Mexico, Mascon Global Technologies DE
LA Information Limitada, Chile.
In July 2002 the company raised US$ 10 million by way of issuing GDR, which are
listed at the Luxemborg SE. To enhance the US market more visible the company
has set up a Wholly owned subsidiary in US. The subsidiary company will now
focus on Chile,Mexio and Germany and will act as business development and
software development centres. For acquiring International Software Consulting
Inc., the company has issued 2,880,000 equity shares to ISC Holdings Inc., at a
premium of Rs.90 per share as a part consideration. A automated CRM package viz
'Sieble' was rolled out in 2001.
During the first phase the company has expanded its Bangalore facilities and
broken ground at Chennai for a brand new campus that can accommodate over 1000
engineers. Also the company is expecting to be certified for CMMI-Level 5
during 2005-2006.
Company Overview
Mascon is a global
provider of Information Technology and Telecom Support services. Mascon is ISO
9000: 2001 assessed and is certified under the SEI CMMi Level 5 assessment for
its software engineering and support services. Mascon has also achieved the
Microsoft Gold Partnership based on its capabilities in delivering the products
and services using Microsoft platforms. Mascon has evolved into a strong,
reputed global Tier-ll player with development and delivery centers in USA,
Mexico and India. The Company has an excellent global client base ranging from
Fortune 500 companies to start-ups, across diverse industry segments.
Mascon uses a
comprehensive blend of products, services and delivery models to help the
clients to build, deploy and maintain technology based solutions to accomplish
their business strategy. Mascon's focused service offerings in the areas of
manufacturing, financial services, retail, telecom and wireless,
media/publishing and healthcare and life sciences have provided the Company a
strong market differential in attracting and nurturing clients. Across these
vertical offerings, Mascon provides highly specialized technology and practice
centric services such as:
v
Enterprise
Resources Planning (blue printing, implementation, upgrade and maintenance)
covering Oracle, SAP, JD Edwards and PeopleSoft.
v
Product
Outsourcing and Lifecycle Management
v
Telecom and
Wireless technologies (supporting the OEMs and service providers)
v
Java and
Microsoft .NET based application solution services
v
Quality assurance
and compliance solutions offering
v
Life Sciences
practice with product and services offerings in the area of health care and
computational biology
Mascon has developed
deep relationships with its clients by progressively transitioning from people
to projects to partnerships. While it takes two to three years to develop a
collaborative relationship with the clients, Mascon, early on in its
relationship, develops full understanding of its client's challenges and custom
tailors technology solutions for its clients. Mascon's strong ability to
deliver value to its clients makes the client relationship robust and long
lasting. Mascon has embarked on a plan to achieve challenging growth targets,
through both organic and inorganic routes. Organic growth is planned to be
achieved by targeting new clients with a focus on gross margins, nurturing
existing relationships, geographic expansion and product / service enhancement
initiatives. Inorganic growth will be achieved by strategic acquisition of
teams or businesses, which the Directors consider to have strong fundamentals
and synergy with Mascon's values and operating philosophy.
Financial Performance
The Company's
financial statements have been prepared in accordance with Indian Generally
Accepted Accounting Principles (GAAP) and Companies Act, 1956.
Fixed
Assets
v
Computer
Hardware
v
Furniture
& Fixture
v
Office
Equipment
v
Motor
Vehicles
As Per
Website Details
Established in 1981, Mascon Global Limited is a public company listed on the Bombay and the Luxembourg stock exchanges. They have their origins dating back to more than two decades in the form of Mascon Technical Services, a company that specialized in providing enterprise applications under the brand name of IMAS. Over the years, through organic and inorganic processes, Mascon Global has come to be known as a company that provides high value IT services to their global clients
Founded with the vision of becoming one of the most admired IT companies in the world, Mascon is powered by some of the industry's most talented and brightest minds. Their success is attributed to their thought leadership that enables us to spot trends and pick winning technologies well in advance. Their board members and the top executive team cumulatively have hundreds of years of industry and management experience.
They work with a variety of clients,
ranging from large Fortune 500 companies to start-ups, creating and
implementing variety of solutions. They have a strong presence in India, with
operations and well-established software development facilities at Bangalore
and Chennai.
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 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
|
Indian Rupees |
|
US
Dollar |
1 |
Rs.45.02 |
|
UK
Pound |
1 |
Rs.85.56 |
|
Euro |
1 |
Rs.57.24 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
2 |
|
--LEVERAGE |
1~10 |
2 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
34 |
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 |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
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 |
|
NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
|