MIRA INFORM REPORT

 

 

Report Date :

17.04.2007

 

IDENTIFICATION DETAILS

 

Name :

EPSILON EMBEDDED COMPUTING PRIVATE LIMITED

 

 

Formerly Known As :

Spran Technologies Private Limited

 

 

Registered Office :

No. 510 , 1st Stage , IV th Block HBR Layout (ORR) Bangalore

 

 

Country :

India

 

 

Financials (as on) :

31.03.2006

 

 

Date of Incorporation :

26.03.1997

 

 

Com. Reg. No.:

08-22019

 

 

CIN No.:

[Company Identification No.]

U85110KA1997PTC022019

 

 

IEC No.:

07997001263

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

BLRS14113B

 

 

PAN No.:

[Permanent Account No.]

AACCS8865L

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

It is an International Distributor of Microstar Laboratories products in India

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

USD 46000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well-established and reputed company having satisfactory track records. Director are reported as experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are usually correct and as per commitments.

 

The concern can be considered normal for business dealings at usual trade term and conditions.

 

 

LOCATIONS

 

Registered Office :

No. 510 , 1st Stage , IV th Block HBR Layout (ORR) Bangalore India

Tel. No.:

91-80-25435165

Mobile No.:

91-9945223932 (Mr. Raghavendra)

Fax No.:

91-80-25435166

E-Mail :

Raghvendra.tv@epsionembedded.com

Website :

www.esplionendded.com

Area :

4500 Sq. fts.

Location :

Rented

 

 

Corporate Office :

510, 1st Stage, IV Block, HBR Layout (ORR), Bangalore:560 043, Karnataka, India

Tel. No.:

91-80-25435165 / 665 / 666

Fax No.:

91-80-25435166

 

 

Branches :

2-42/6,#103, Vijetha Classic Empire, Above Bata Showroom, Chaitanyapuri Dilshuk nagar, Hyderabad-500 060, India

Tel. No.:

91-40-24140756

 

 

Branches :

D-5, South Extension –I, New Delhi-110 049, India

Tel. No.:

91-9313559120

E-Mail :

info@epsilonembedded.com

 

 

DIRECTORS

 

Name :

Mr. Raman Ajay

Designation :

Director

Address :

Noopur.441 2-c. 1st Stage, 4th Block. HBR Layout. Bangalore:560 043

Date of Birth/Age :

05.07.1973

Qualification :

B.Sc

Experience :

12 Years

Date of Appointment :

26.03.1997

 

 

Name :

Mr. Vasu Sudish

Designation :

Director

Address :

#600, 1stB Main. Domlur Layout, Bangalore-560 071

Date of Birth/Age :

09.01.1968

Qualification :

BE

Experience :

15 Year

Date of Appointment :

26.03.1997

 

 

Name :

Mr. Krishna Praveen

Designation :

Director

Address :

Kempstowe Club, Road, Ooty, Niligiris -643 001

Date of Birth/Age :

16.02.1965

Qualification :

BE

Experience :

12 Years

Date of Appointment :

09.01.2003

 

 

Name :

Mr. Jambunathan

Designation :

Managing Director

Address :

C-401, Ground Floor, Sobhawindfall Apartments, Amruta Halli, Sshakar Nagar.

Date of Birth/Age :

16.02.1965

Qualification :

 

Experience :

 

Date of Appointment :

09.01.2003

 

 

Name :

Mr. Ravinder

Designation :

Director

Address :

1.08.303. Darshak Chambers, P.G. Road, Secunderabad

Date of Birth/Age :

51 Years

Qualification :

PG

Experience :

30 Years

Date of Appointment :

24.12.2004

 

 

Name :

Mr. V. Sudish

Designation :

Directors

Address :

No. 555, II Cross , III Main , R.T. Nagar – B – 32

Date of Birth/Age :

36 Years

Qualification :

BE

Experience :

12 Years

 

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

Names of Shareholders

No. of Shares

Percentage of Holding

Ravinder .M

 

203936

Ajay Raman

 

131430

Sudish V

 

131425

Praveen .K

 

131425

 

 

BUSINESS DETAILS

 

Line of Business :

It is an International Distributor of Microstar Laboratories products in India

 

 

Products :

v      CompactPCI

v      AdvancedTCA

v      PrPMC

v      VMEbus

v      ATX

v      PCI/PCI-X

v      Special Configurations

 

 

Agencies Held :

v      Mercury Computers – USA www.Mc.com

v      Microstar Lab – USA , www.microstor.com

v      V.Metro – USA, www.vmetro.com

 

 

Terms :

 

Selling :

Credit

 

 

Purchasing :

L/C , Cash , Credit

 

 

GENERAL INFORMATION

 

Customers :

End Users

 

 

No. of Employees :

About 37

 

 

Bankers :

v      The United Western Bank Limited

Gandhinagar, Bangalore-560009, Karnataka, India

Uwb10bang@yahoo.co.in

v      IDBI Bank Ltd.

Gandhinagar , Bangalore 560009 , Karnataka India

Limit 7.500 million Cash , Credit

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

Mohan and Sridhar

Chartered Accountant

Address :

128,2nd Floor,11th Cross Sampige Road, Malleswarm, Bangalore  ;560003, Karanataka

Tel No.:

91-80-2315335

 

 

CAPITAL STRUCTURE

 

Authorised Capital:

No. of Shares

Type

Value

Amount

1000000

Equity Shares

Rs.10/- each

Rs.10.000 Million

 

Issued, Subscribed & Paid-up Capital:

No. of Shares

Type

Value

Amount

679,786

Equity Shares

Rs.10/-(each)

Rs.6.797 Millions

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2006

31.03.2005

SHAREHOLDERS FUNDS

 

 

1] Share Capital

6.797

0.951

2] Share Application Money

0.000

0.000

3] Reserves & Surplus

4.451

3.819

4] (Accumulated Losses)

0.000

0.000

NETWORTH

11.248

4.770

LOAN FUNDS

 

 

1] Secured Loans

9.571

3.306

2] Unsecured Loans

4.162

3.735

TOTAL BORROWING

13.733

7.041

DEFERRED TAX LIABILITIES

0.000

0.000

 

 

 

TOTAL

24.981

11.811

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

FIXED ASSETS [Net Block]

7.701

1.005

Capital work-in-progress

0.000

0.000

 

 

 

INVESTMENT

0.000

0.000

DEFERREX TAX ASSETS

0.000

0.000

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

Inventories

7.357

4.791

 

Sundry Debtors

7.152

10.318

 

Cash & Bank Balances

9.529

1.152

 

Other Current Assets

0.178

0.229

 

Loans & Advances

1.523

0.889

Total Current Assets

25.739

17.379

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

Current Liabilities

7.623

5.698

 

Provisions

0.836

0.877

Total Current Liabilities

8.459

6.575

Net Current Assets

17.280

10.804

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.002

 

 

 

TOTAL

24.981

11.811

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2006

31.03.2005

Sales Turnover

26.162

17.882

Other Income

0.399

0.380

Total Income

26.561

18.262

 

 

 

Profit/(Loss) Before Tax

1.466

2.892

Provision for Taxation

0.493

0.495

Profit/(Loss) After Tax

0.972

2.396

 

 

 

Imports :

 

 

 

Raw Materials

6.939

9.013

 

Capital Goods

7.898

1.422

Total Imports

14.837

10.435

 

 

 

Expenditures :

 

 

 

Cost of Goods Sold

7.415

8.865

 

Administrative Expenses

15.264

6.860

 

Interest

0.569

0.454

 

Depreciation & Amortization

1.202

0.434

Total Expenditure

24.450

16.613

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2006

31.03.2005

PAT / Total Income

(%)
3.65

13.12

 

 
 

 

Net Profit Margin

(PBT/Sales)

(%)
5.60

16.17

 

 
 

 

Return on Total Assets

(PBT/Total Assets}

(%)
4.38

15.73

 

 
 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.13

0.60

 

 
 

 

Debt Equity Ratio

(Total Liability/Networth)

 
0.75

1.37

 

 
 

 

Current Ratio

(Current Asset/Current Liability)

 
3.04

2.64

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

Constant change and where yesterday is synonymous with Obsolosence – that’s a description of their market place. Since its humble inception in March 1997, from a room in a residential colony to a team 50+ talented engineers, the driving factor has been adaptation to technology and a never say die attitude. The culture and values at Epsilon enables this adaptation and conquering them with ultimate goal of bringing value to their customers and be part of their success.

Their offerings include COTS (Commercially Off The Shelf) products based on ADI, TI and Freescale processors, Signal Processing Algorithms expertise, FPGA technologies coupled with services from Board level products, Firmware and application software to make it a end-end solution.

 

Vision

Twenty-Oh-Seven: To be amongst the first three top-of-the-mind-recall companies in the embedded computing space in India.

 

Mission

To be a global leader in embedded computing domain providing quality cutting-edge technologies by a team of highly talented professionals who adhere to the highest level of business ethics working in an environment fostering growth for the individual and the company by practicing the best of HR policies and thus giving back to the society citizens with the highest morale and morals.

 

Radar

Today's most advanced radar technologies include space-time adaptive processing (STAP) solutions that filter interference and jamming to reveal targets, and synthetic aperture radar (SAR) systems that create images of the ground from moving aerial or space-borne platforms.

These solutions provide rich information, but require exceptional computational power to execute their sophisticated processing algorithms. SAR is critical for many tactical operations such as weapon targeting, and formation of a SAR image can require billions of arithmetic operations.

Epsilon Embedded Computing is a pioneer and the worldwide leader in producing real-time multicomputing systems that satisfy the most demanding radar signal processing challenges, including SAR.

 

Sonar

Sonar systems use acoustic energy to detect objects of interest in water, such as submarines, surface ships, torpedoes, mines, or features of ocean topography.

The broad array of sonar missions and platforms results in a wide range of computational requirements, from high-frequency beamforming to low-frequency adaptive processing and automated detection.

Epsilon Embedded Computing has provided the sonar-processing computers for sonar platforms in submarines, ships, airplanes, and shore installations over many generations of computer technologies.

They remain on the cutting edge today with high-performance, cost-effective solutions that anticipate the needs well into the future.

 

 

 

Corporate identity number of the company

U32109KA1997PTCC022019

Name of the company

SPARN TECHNOLOGIES PRIVATE LIMITED

Address of the registered office or of the principal place of  business in India of the company

Himani Complex, 2nd Floor. #326/A, 80 Feet Road, Judges Colony, R T Nagar, Bangalore, Karanataka India

This form is for

Creation of Charge

Type of charge

Hypothecation

Particular of charge holder

The United Western Bank Limited

Gandhinagar, Bangalore:560009, Karnataka

Uwb10bang@yahoo.co.in

Nature of instrument creating charge

Agreement fo Hypothication fo Book Debts, Receivable Debtors and Stock in Trade.

Date of instrument Creating the charge

29/07/2006

Amount secured by the charge

Rs.11.500 Millions

Brief of the principal terms an conditions and extent and operation of the charge

Interest @ 12.75%(Plr+0.25%) on Cash Credit

Description of the property charged

Stock in trade

Book Debts

Particulars of the property charged

Books Debts, Debtors and Stock in Trade Epsilon Embedded Computing Private Limited No:510, 1st Stage VIth Block, HBR Layout

Bangalore:560043

 

Name of the company

Spran Technologies Private Limited

Presented By

Ajay Raman(Managing Director)

1) Date and description of instrument creating the change

12.02.2005

Agreement of Hypothecation of Book debts, Receivables, Debtors

2) Amount secured by the charge/amount owing on the securities of charge

Agreement of Hypothecation Dated 12.02.2005

Rs.2.500 Millions

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

  • All those tangible movable properties and assets of whatsoever nature of the borrower both present and future and including but without prejudice to the generality of the foregoing words all stocks plant and machinery, Vehicles of the borrower wheresoever situated and or in transit now belonging to or that may at any time during the continuance of the security belong to the borrower or the order and dispostionf of the borrower
  • All the present and future book debts, outstanding monies,receivables, claims and demand and bills which are now due and owing or which may at any time hereafter during the continuance of this security become due and owing to the borrower in course its business by any person firm company or body corporate or by the government of India any state government  or any municipal local or public or semi-government body or project whatsoever in the public sector or any other sector to the intent that the security and charges hereby created shall be security by way of first charge on all the said hypothecated goods and the said debts

4) Gist of the terms and conditions and extent and operation of the charge.

Interest at the rate of 6.5% over the bank rate minimum 12.5% p.a

5) Name and Address and description of the person entitled to the charge.

The United Western Bank Limited

Gandhinagar Branch Bangalore

6) Date  and brief description of instrument modifying the charge

--

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

--

 

Trade References –

 

1.       Bharath Electronics Ltd. Bangalore

2.       Space Application Group (SAG) New Delhi (Drdo – Government  of India )

3.       LRDE Drdo – min of Defence Government of India – Bangalore                        

 

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.42.30

UK Pound

1

Rs.84.11

Euro

1

Rs.57.33

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

4

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--CREDIT LINES

1~10

5

--MARGINS

-5~5

 

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

45

 

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

 

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