MIRA
INFORM REPORT
|
Report Date : |
12.04.2007 |
IDENTIFICATION
DETAILS
|
Name : |
HCL INFOSYSTEMS LIMITED |
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Registered Office : |
806, Siddharth, 96, Nehru Place, New Delhi-110 019 |
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Country : |
India |
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Financials (as on) : |
30.06.2006 |
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Date of Incorporation : |
17.04.1986 |
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Com. Reg. No.: |
23955 |
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CIN No.: [Company Identification No.] |
L72200DL1986PLC023955 |
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TAN No.: (Tax Deduction & Collection Account No.) |
DELH03832D |
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Legal Form : |
Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturing of Computer Systems and Computer Peripherals. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
RATING
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STATUS |
PROPOSED
CREDIT LINE |
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|
41-55 |
Ba |
Overall operation is considered normal. Capable
to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 16000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a leading Information Technology Company having satisfactory track. Directors are reported as experienced, respectable and resourceful professionals. Their trade relations are fair. Payments are reported as correct and as per commitments. Information Technology industry and dot.com company has shown downward trend due to recession in U.S.A. and various other reasons. The company can be considered good for normal business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
806, Siddharth, 96, Nehru Place, New Delhi-110 019, India |
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Tel. No.: |
91-11-26444305/26464921/262112941/26489078/ 26418567-69/26430051 |
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Fax No.: |
91-11-26212687 |
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E-Mail : |
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Website : |
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Corporate Office : |
E-4, 5 and 6, Sector XI, Noida - 201 301, Uttar Pradesh |
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Tel. No.: |
91-120-2526490 |
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Fax No.: |
91-120-2525196 |
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E-Mail : |
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Plants : |
CHENNAI
WORKS
UNIT
- I
299, Arcot Road, Vadapalani, Chennai-600026, Tamilnadu Tel. No. 91-44-24800156/24843566/24838316 Fax. No. 91-44-24834563 E-mail. pattabi@help.com/veera@help.com UNIT
- II
Shed 5, 6, Tiru-vi-Ka Industrial Estate, Guindy, Chennai-600032, Tamilnadu Tel. No. 91-44-22342815/16/22340165 Fax. No. 91-44-22340161 E-mail. rs@help.com PONDICHERRY
WORKS
· R.S. No. 34/4 to 34/7 and part of 34/1, Sedarpet, Pondicherry – 605111 · R.S. No. 105/4-5, Sedarpet, Pondicherry-605111 · R.S. No. 107/5,6,7, RS No. 108/10A, RS No : 110/3, 5,11,12 and R.S. No. 108/9 & 12, Sedarpet, Pondicherry – 605 111 · Plot No.78, South Phase, Ambattur Industrial Estate, Chennai-600058 · Plot Nos.1,2, 27 and 28, Sector 5, 11E-Pantnagar, Rudrapur, District U S Nagar, Uttaranchal · 299 (Old No. 158), Arcot Road, Vadapalani, Chennai – 605 111, Tamilnadu · Shed S5 & S6, Tiru-vi-Ka, Industrial Estate, Guindy, Chennai – 600 052, Tamilnadu · J. K. Towers, 100 Feet Road, Pondicherry - 605 013 · Spl-A2, Industrial Estate, Thattanchavadi, Pondicherry - 605 005 Tel. No. 91-413-2248287/2248284 Fax. No. 91-413-2249586 E-mail. sridhar@help.com |
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Sales and Support Centres : |
· Shed 5, 6, Tiru-vi-Ka Industrial Estate, Guindy, Chennai-600032, Tamilnadu Tel. No. 91-44-22342815/22342816/22340165 Telefax. No. 91-44-22340161 E-mail. mktg_chn@help.com Mobile. No. 9840139847 · 306, Tulsani Chambers, Nariman Point, Mumbai - 400021, Maharashtra Tel. No. 91-22-22815471/22815472 Mobile. No. 9820456196 E-mail. mktg_bom@help.com · Building No. 8, Krishna Market, Kalkaji, New Delhi -110019 Tel. No. 91-11-26293957 Mobile. No. 9868150599 E-mail. mktg_del@help.com · No. 7, Race Course Road, Coimbatore - 641018 Tel. No. 91-422-2214933/2200375 Mobile. No. 9843036831 E-mail. mktg_blr@help.com · B-10, Indian Airlines Employees Colony, Begumpet, Secunderabad - 500003, Andhra Pradesh Tel. No. 91-40-27902912 Mobile. No. 9848022078 E-mail. mktg_hyd@help.com · 306, Tulsani Chambers, Nariman Point, Mumbai - 400021, Maharashtra Tel. No. 91-22-22815471/22815472 Mobile No. 9820456196 E-mail. mktg_bom@hclp.com · Building No. 8, Krishna Market, Kalkaji, New Delhi - 110019 Tel. No. 91-11-26293957 Mobile. No. 9868150599 E-mail. mktg_del@help.com Other sales offices located at :- Ahmedabad, Bangalore, Baroda, Bhopal, Chandigarh, Chennai, Cochin, Coimbatore, Guwahati, Hyderabad, Indore, Jaipur, Kanpur, Kolkata, Kozhikode, Lucknow, Madurai, Mumbai, Nagpur, Noida, Patna, Pune. Raipur, Ranchi, Thiruvanathapuram, Trichy, Vijaywada and Vishakapatnam. |
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Branches : |
Located at :- A-10 & 11, Sector III, Noida, District Ghaziabad - 201 301, Uttar Pradesh |
DIRECTORS
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Name : |
Mr. Ajai Chowdhry |
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Designation : |
Chairman and
Chief Executive Officer |
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Date of Birth/Age : |
56 Years |
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Qualification : |
Graduate in
Electronic and Telecommunication Engineering |
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Experience : |
34 Years |
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Date of Appointment : |
01.03.1989 |
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Previous Employment : |
Far East
Computers Pte Limited |
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Name : |
Mr. Ravi Thumboochetty |
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Designation : |
Whole-time Director |
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Date of Birth/Age : |
56 Years |
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Qualification : |
Engineer from BMS College of Engineering – Bangalore |
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Experience : |
28 Years |
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Date of Appointment : |
01.05.1986 |
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Name : |
Mr. T. S. Purushothaman |
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Designation : |
Whole-time Director |
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Date of Birth/Age : |
65 Years |
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Qualification : |
Engineering from Trichur Engineering College, Trichur |
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Experience : |
41 Years |
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Name : |
Mr. Rajinder Pal Khosla |
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Designation : |
Director |
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Date of Birth/Age : |
74 Years |
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Qualification : |
Graduate from Emmanuel College, Cambridge (U. K.) |
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Experience : |
40 Years |
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Name : |
Mr. Subroto Bhattarchaya |
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Designation : |
Director |
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Date of Birth/Age : |
64 Years |
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Qualification : |
Chartered Accountants |
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Experience : |
39 Years |
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Name : |
Mr. D. S. Puri |
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Designation : |
Director |
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Date of Birth/Age : |
55 Years |
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Qualification : |
Commerce Graduate – Kolkata University |
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Experience : |
32 Years |
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Name : |
Mr. E. A. Kshirsagar |
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Designation : |
Director |
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Date of Birth/Age : |
63 Years |
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Qualification : |
Chartered Accountants |
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Experience : |
37 Years |
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Name : |
Mrs. Anita Ramachandran |
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Designation : |
Director |
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Date of Birth/Age : |
49 Years |
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Qualification : |
Management Graduate from Jamnalal Bajaj Institute |
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Experience : |
25 Years |
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Name : |
Mr. J. V. Ramamurthy |
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Designation : |
Whole Time
Director |
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Date of Birth/Age : |
53 years |
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Qualification : |
M.E. |
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Experience : |
27 years |
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Date of Appointment : |
01.07.1998 |
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Previous Employment : |
HCL Office Automation
Limited, President and CEO |
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Name : |
Mr. Narasimhan
Jegadeesh |
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Designation : |
Director |
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Date of Appointment
: |
24.01.2006 |
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Name : |
Mr. V N Koura |
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Designation : |
Director |
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Date of Appointment
: |
24.01.2006 |
KEY EXECUTIVES
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Name : |
Mr. Sushil Kumar Jain |
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Designation : |
Company Secretary |
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Name : |
Mr. T. S. Purushothaman |
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Designation : |
Chief Operating
Officer – India Operations |
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Name : |
Mr. Ravi J. Thumboochetty |
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Designation : |
Chief Operating
Officer – International Operations |
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Date of Birth/Age : |
58 YEARS |
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Qualification : |
BE, B. Tech |
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Experience : |
33 years |
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Date of Appointment : |
01.05.1986 |
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Previous Employment : |
HCL Limited,
Regional Manager |
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Name : |
Mr. Sandeep Kanwar |
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Designation : |
CFO &
Executive Vice President |
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Date of Birth/Age : |
45 years |
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Qualification : |
F.C.A. |
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Experience : |
23 years |
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Date of Appointment : |
01.03.1988 |
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Previous Employment : |
Oriental Carbon
and Chemicals Limited, Accounts Officer |
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Name : |
Mr. George Paul |
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Designation : |
Executive Vice
President |
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Date of Birth/Age : |
46 years |
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Qualification : |
B. Tech. |
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Experience : |
24 years |
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Date of Appointment : |
18.07.1983 |
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Previous Employment : |
Larsen &
Toubro |
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Name : |
Mr. Yuvraj Bahadur |
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Designation : |
Executive Vice
President |
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Name : |
Mr. Amanpreet Singh Bedi |
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Designation : |
Associate Vice
President |
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Date of Birth/Age : |
41 years |
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Qualification : |
B.E. |
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Experience : |
20 years |
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Date of Appointment : |
07.07.1986 |
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Name : |
Mr. D Baskar |
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Designation : |
Vice President |
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Date of Birth/Age : |
44 years |
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Qualification : |
B.E. |
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Experience : |
22 years |
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Date of Appointment : |
27.08.1984 |
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Name : |
Mr. Adhikari, Saurav |
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Designation : |
President |
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Name : |
Mr. Mohan U. V. |
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Designation : |
General Manager |
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Name : |
Mr. Subodh Kumar Sharma |
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Designation : |
Area Customer
Engineer Manager |
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Name : |
Mr. C. D. Murthy |
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Designation : |
Associate Vice
President |
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Name : |
Mr. M. P. Singh |
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Designation : |
Deputy General
Manager |
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Name : |
Mr. A. K. Jain |
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Designation : |
General Manager |
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Name : |
Mr. Manohar Lal
Taneja |
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Designation : |
Executive Vice
President |
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Date of Birth/Age : |
60 years |
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Qualification : |
B.E., M.B.A. |
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Experience : |
38 years |
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Date of Appointment : |
30.05.1986 |
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Previous Employment : |
IDM |
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|
Name : |
Mr. Hari Baskaran |
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Designation : |
Executive Vice
President |
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Date of Birth/Age : |
57 years |
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Qualification : |
B.E. |
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Experience : |
33 years |
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Date of Appointment : |
18.08.2003 |
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Previous Employment : |
Xerox Modi
Corporation Limited, Executive Director |
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|
Name : |
Mr. Padiyal
Naresh |
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Designation : |
Vice President |
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Date of Birth/Age : |
45 years |
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Qualification : |
B.E. |
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Experience : |
22 years |
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Date of Appointment : |
27.08.1984 |
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|
Name : |
Mr. Rajeev Asija |
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Designation : |
Executive Vice
President |
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Date of Birth/Age : |
44 years |
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Qualification : |
B.E. |
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Experience : |
23 years |
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Date of Appointment : |
01.05.1986 |
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Previous Employment : |
HCL Limited,
Senior Customer Engineer |
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|
Name : |
Mr. Rakesh Mehta |
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Designation : |
Executive Vice
President |
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Date of Birth/Age : |
50 years |
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Qualification : |
I.E.T.E. |
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Experience : |
27 years |
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Date of Appointment : |
29.12.1988 |
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Previous Employment : |
ORG Systems,
Customer Engineer Specialist |
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|
Name : |
Ms. Suman Ghose
Hazra |
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Designation : |
Executive Vice
President |
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Date of Birth/Age : |
53 years |
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Qualification : |
B.Com, C.A., ICWA |
|
Experience : |
24 years |
|
Date of Appointment : |
15.06.1995 |
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Previous Employment : |
Network Limited |
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|
Name : |
Mr. Rajendra
Kumar |
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Designation : |
Executive Vice
President |
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Date of Birth/Age : |
49 years |
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Qualification : |
B.Com |
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Experience : |
31 years |
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Date of Appointment : |
01.05.1986 |
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Previous Employment : |
HCL Limited,
Deputy Purchase Manager |
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|
Name : |
Mr. Pattabiraman
S. |
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Designation : |
Executive Vice
President |
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Date of Birth/Age : |
51 years |
|
Qualification : |
B.Sc., A.C.A. |
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Experience : |
27 years |
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Date of Appointment : |
01.07.1998 |
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Previous Employment : |
HCL Peripherals
Limited, Senior Manager |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
Category
|
No.
of shares
|
%
of shareholding
|
PROMOTERS'
HOLDINGS
|
|
|
|
Indian Promoters |
|
|
|
Individuals/ Hindu Undivided Family |
575613 |
0.34 |
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Bodies Corporate |
91860304 |
54.44 |
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NON
PROMOTER'S HOLDINGS
|
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Institutional Investors |
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Mutual Funds and UTI |
7249404 |
4.30 |
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Banks, Financial Institutions and Insurance Companies |
4847569 |
2.87 |
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FIIs |
44505556 |
26.38 |
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OTHERS
|
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Bodies Corporate |
4767216 |
2.83 |
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Individual Shareholders holding nominal share capital up to Rs.0.100 million |
13652088 |
8.09 |
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Individual Shareholders holding nominal share capital in excess of Rs.0.100 million |
651600 |
0.39 |
|
NRIs |
547280 |
0.32 |
|
OCBs |
72625 |
0.04 |
|
TOTAL |
168729255 |
100.00 |
BUSINESS DETAILS
|
Line of
Business : |
Manufacturing of
Computer Systems and Computer Peripherals. |
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Products : |
Networking Products ·
Hubs ·
Switches ·
Access
Products ·
Modules/converters Terminal Products ·
Turboterm ·
Graph Term ·
Multilingual
Terminal Structured Cabling ·
Patch Cord ·
Patch Panel ·
Wall Outlet Peripherals ·
Monitor ·
Keyboards ·
Multi Media ·
Touch Screen Monitor/Kiosks Generic Names of
Three Principal Products/Services of Company (As per monetary terms) are :
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Exports to : |
ASEAN, Europe,
Japan and USA |
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Imports from : |
ASEAN, Europe,
Japan and USA |
PRODUCTION STATUS
The company’s production Status for the year ended 30th June 2005 was as under: -
|
Class of Goods |
Units |
Installed Capacity |
Actual Production |
|
Computers/Micro
Processor Based Systems |
Nos. |
600000 |
448121 |
|
Data
Graphic/Display Monitor/Terminals, Hubs, etc |
Nos. |
425000 |
406917 |
GENERAL
INFORMATION
|
No. of Employees : |
7000 |
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Bankers : |
Ř State Bank of India, New Delhi Ř Canara Bank Ř Bank of Baroda, New Delhi Ř UCO Bank, New Delhi Ř Canara Bank, New Delhi Ř State Bank of Patiala, New Delhi Ř Indian Bank, New Delhi Ř State Bank of Saurashtra, New Delhi Ř Standard Chartered Bank, New Delhi Ř Societe Generale, New Delhi Ř ICICI Bank Limited, New Delhi Ř HDFC Bank Limited, New Delhi |
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Facilities : |
Unsecured Loans :
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Banking Relations
: |
Good |
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Auditors : |
Price Waterhouse Chartered Accountants |
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Address : |
New Delhi |
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Associates/Subsidiaries : |
· HCL Technologies (Mumbai) Limited · HCL Global Alliance Limited · HCL Peripherals Limited · HCL Perot Systems Limited · OWNHCL Trust · Shri Sivasubramaniya Nadar Educational and Charitable Trust SUBSIDIARIES Ř HCL Infinet Limited (formerly-HCL Commerce Limited) Ř Infosystems Australia Pty Limited Ř FEC Infosystems Pte Limited, Singapore Ř FEC Distribution Pte Limited Ř Far East Computers (M) Sdn. Bhd, Malaysia Ř HCL Infosystems (Malaysia) Sdn. Bhd Ř Far East Computers Marketing (M) Sdn. Bhd Ř Infosystems (Bermuda) Limited Ř Infosystems (Europe) Limited Ř Infosystems (America) Inc. Ř HCL Corporation Limited Ř Microcomp Limited Ř HCL Comnet Limited Ř HCL Technologies BPO Services Limited Ř DSL Software Limited Ř Shipara Technologies Limited Ř HCL Technologies (Malaysia) Sdn Bhd Ř HCL Singapore Pte Limited Ř HCL Infosolutions Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
40,00,00,000 |
Equity Shares of |
Rs.2/- each |
Rs. 800.000 millions |
|
500,000 |
Preference Shares of |
Rs. 100/- each |
Rs. 50.000 millions |
|
|
TOTAL |
|
Rs. 850.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
168729255 |
Equity Shares |
Rs. 2/- each |
Rs. 337.500 millions |
|
|
TOTAL |
|
Rs. 337.500 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
30.06.2006 |
30.06.2005 |
30.06.2004 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share Capital |
337.500 |
334.400 |
328.960 |
|
|
2] Share
Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves &
Surplus |
3775.900 |
4019.100 |
3655.157 |
|
|
4] (Accumulated
Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH
|
4113.400 |
4353.500 |
3984.117 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
444.900 |
557.500 |
690.370 |
|
|
2] Unsecured
Loans |
1511.500 |
261.000 |
23.187 |
|
TOTAL BORROWING
|
1956.400 |
818.500 |
713.557 |
|
|
DEFERRED TAX
LIABILITIES |
115.400 |
68.100 |
30.773 |
|
|
|
|
|
|
|
TOTAL
|
6185.200 |
5240.100 |
4728.447 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
633.200 |
523.800 |
491.231 |
|
Capital work-in-progress
|
163.800 |
9.100 |
1.262 |
|
|
|
|
|
|
|
INVESTMENT
|
1353.900 |
1227.700 |
2805.988 |
|
DEFERREX TAX ASSETS
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS &
ADVANCES
|
|
|
|
|
|
|
Inventories
|
2403.100
|
1881.000
|
1612.589 |
|
|
Sundry Debtors
|
5112.600
|
3699.200
|
2945.444 |
|
|
Cash & Bank Balances
|
1452.900
|
1463.200
|
446.189 |
|
|
Other Current Assets
|
749.700
|
794.200
|
145.148 |
|
|
Loans & Advances
|
378.700
|
320.800
|
259.601 |
Total Current Assets
|
10097.000
|
8158.400
|
5408.971 |
|
Less :
CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
5566.600
|
4172.200
|
3590.218 |
|
|
Provisions
|
496.100
|
506.700
|
388.787 |
Total Current Liabilities
|
6062.700
|
4678.900
|
3979.005 |
|
Net Current Assets
|
4034.300
|
3479.500
|
1429.966 |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
6185.200 |
5240.100 |
4728.447 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
30.06.2006 |
30.06.2005 |
30.06.2004 |
|
|
Sales Turnover |
22947.000 |
|
15441.652 |
|
|
Other Income |
170.100 |
322.500 |
|
|
|
Total Income |
23117.100 |
19639.100 |
15441.652 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
1315.200 |
1488.700 |
1284.837 |
|
|
Provision for Taxation |
(17.000) |
161.000 |
75.873 |
|
|
Profit/(Loss) After Tax |
1332.200 |
1327.700 |
1208.964 |
|
|
|
|
|
|
|
|
Earnings in
Foreign Currency : |
|
|
|
|
|
|
Export Earnings |
627.800 |
331.700 |
|
|
|
Commission Earnings |
1.300 |
6.400 |
422.736 |
|
|
Other Earnings |
156.900 |
132.000 |
|
|
Total Earnings |
786.000 |
470.100 |
422.736 |
|
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
|
Raw Materials |
9840.400 |
7513.800 |
|
|
|
Stores & Spares |
26.700 |
31.600 |
6297.819 |
|
|
Capital Goods |
6.600 |
13.200 |
|
|
|
Others |
3147.300 |
1717.700 |
|
|
Total Imports |
13021.000 |
9276.300 |
6297.819 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Cost of Goods Sold |
19191.100 |
15981.700 |
|
|
|
Administrative Expenses |
1185.300 |
1009.100 |
|
|
|
Salaries, Wages, Bonus, etc. |
1272.200 |
1044.900 |
|
|
|
Finance Charges |
45.700 |
9.600 |
14156.815 |
|
|
Depreciation & Amortization |
67.500 |
65.000 |
|
|
|
Other Expenditure |
40.100 |
40.100 |
|
|
Total
Expenditure |
21801.900 |
18150.400 |
14156.815 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.09.2006 [1st
Quarter] |
31.12.2006 [2nd
Quarter] |
|
Sales Turnover |
|
5243.000 |
6096.400 |
|
Other Income |
|
80.600 |
127.500 |
|
Total Income |
|
5323.600 |
6223.900 |
|
Total Expenditure |
|
4964.200 |
5740.700 |
|
Operating Profit |
|
359.400 |
483.200 |
|
Interest |
|
33.700 |
50.200 |
|
Gross Profit |
|
325.700 |
433.000 |
|
Depreciation |
|
24.600 |
17.100 |
|
Tax |
|
37.100 |
51.100 |
|
Reported PAT |
|
257.400 |
347.600 |
200609 Quarter 1
Notes
Other
Income includes Other Income Rs 59.00 million Exchange Fluctuation
Gain/(Loss)(Net) Rs 21.60 million Expenditure Includes (Increase) / Decrease in
Stock in Trade Rs (454.00)million Cost of Sales (Net) Rs 4790.10 million Staff
Cost Rs 338.80 million Administration, Selling, Repairs & Others Rs 289.30
million Tax Includes Provision for Current Tax Rs 33.40 million Deferred Tax Rs
6.60 million Fringe Benefit Rs 3.70 million EPS is Basic Status of Investor
Complaints for the quarter ended September 30, 2006 Complaints Pending at the
beginning of the quarter Nil Complaints Received during the quarter Nil
Complaints disposed off during the quarter Nil Complaints unresolved at the end
of the quarter Nil 1. The above results have been taken on record at the
meeting of the Board of Directors of the Company held on October 18, 2006. 2.
The Board of Directors at the above meeting has declared interim dividend of Rs
2/- per fully paid up equity share of Rs 2/- each for the Financial Year
2006-07. 3. During the quarter ended September 30, 2006, 82675 equity shares of
Rs 2/- each fully paid up were issued and allotted pursuant to the exercise of
stock options under HCL Infosystems Limited. - Employee Stock Option Scheme. 4.
The composite Scheme of Arrangement for merging the subsidiary HCL Infinet
Limited., comprising of Telecommunication and Office Automation segment, with
the company w.e.f. April 01, 2006 has been filed with the Hon'ble High Court of
Delhi. As directed by the Hon'ble High Court, the meeting of unsecured
creditors of HCL Infinet Limited. is scheduled to be held on October 28, 2006.
5. Consequent to the revised Accounting Standard 15 issued by The Institute of
Chartered Accountants of India, applicable to the Company effective July 01,
2006, the Company has revised its provision for retirement and other benefits
as at July 01, 2006. As per the transitional provisions contained in AS 15, the
net additional opening liability as on July 01, 2006 towards liability for
retirement and other benefits amounting to Rs 15.70 million and Rs 20.40
million has been adjusted against the opening balance of revenue reserves in
the Standalone and Consolidated accounts respectively. 6. The auditors of the
Company have carried out a 'Limited Review' of the standalone unaudited
financial results for the quarter ended September 30, 2006 in terms of Clause
41 of the Listing Agreement with Stock Exchanges. 7. Tax expense for the
current quarter has been estimated subject to audit and final computation of
various tax adjustments. It does not take into account tax issues disputed by
the Company. 8. Consolidated results include results of HCL Infinet Limited.,
the wholly owned subsidiary of the Company and Microcomp Limited., the wholly
owned subsidiary of HCL Infinet Limited. 9. The Company on a standalone basis
operates in a single segment. 10. Figures for previous periods have been
regrouped and rearranged to conform with the relevant current period
classification.
200612 Quarter 2
Notes
Other
Income includes Other Income Rs 28.30 million Exchange Fluctuation Gain/(Loss)(Net)
Rs 99.20 million Expenditure Includes (Increase) / Decrease in Stock in Trade
Rs (355.70)million Cost of Sales (Net) Rs 5402.70 million Staff Cost Rs 381.40
million Administration, Selling, Repairs & Others Rs 312.30 million Tax
Includes Provision for Current Tax Rs 46.10 million Deferred Tax Rs 17.20
million Fringe Benefit Rs 5.00 million EPS is Basic Status of Investor
Complaints for the quarter ended December 31, 2006 Complaints Pending at the
beginning of the quarter Nil Complaints Received during the quarter 03
Complaints disposed off during the quarter 03 Complaints unresolved at the end
of the quarter Nil 1. The above results have been taken on record at the
meeting of the Board of Directors of the Company held on January 24, 2007. 2.
The Board of Directors at the above meeting has declared second interim
(quarterly) dividend of Rs 2/- per fully paid up equity share of Rs 2/- each
for the Financial Year 2006-07. The 'Record Date' for payment of the dividend
will be January 30, 2007. The aggregate of interim (quarterly) dividends
represents 200% for the half year. 3.During the quarter ended December 31,
2006, 134660 equity shares of Rs 2/- each fully paid up were issued and
allotted pursuant to the exercise of stock options under HCL Infosystems
Limited. - Employee Stock Option Scheme. 217335 Equity shares have been
allotted under stock options during the half year 2006-07. 4. The composite
Scheme of Arrangement for merging the subsidiary HCL Infinet Limited,
comprising of Telecommunication and Office Automation segment, with the company
w.e.f April 01, 2006 has been approved by the unsecured creditors of HCL
Infinet Limited The matter is fixed for hearing before the Hon'ble High Court
of Delhi on January 29, 2007. 5. The auditors of the Company have carried out a
'Limited Review' of the standalone unaudited financial results for the quarter
ended December 31, 2006 in terms of Clause 41 of the Listing Agreement with
Stock Exchanges. 6. Tax expense for the current quarter has been estimated subject
to audit and final computation of various tax adjustments. It does not take
into account tax issues disputed by the Company. 7. The Company on a standalone
basis operates in a single segment. 8. Consolidated results include results of
HCL Infinet Limited., the wholly owned subsidiary of the company, Microcomp
Limited., the wholly owned subsidiary of HCL Infinet Limited. and Stelmac
Engineering (P) Limited., a wholly owned subsidiary acquired by HCL Infinet
Limited. during the quarter ended December 31, 2006. The results of Microcomp
Limited. and Stelmac Engineering Pvt Limited. are not material. 9. Figures for
previous periods have been regrouped and rearranged to conform with the
relevant current period classification.
KEY RATIOS
|
PARTICULARS |
30.06.2006 |
30.06.2005 |
30.06.2004 |
|
Debt-Equity Ratio |
0.33 |
0.19 |
0.26 |
|
Long Term Debt-Equity Ratio |
0.01 |
0.06 |
0.16 |
|
Current Ratio |
1.32 |
1.36 |
1.31 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
23.77 |
19.84 |
14.93 |
|
Inventory |
11.12 |
11.28 |
12.16 |
|
Debtors |
5.40 |
5.93 |
5.92 |
|
Interest Cover Ratio |
7.23 |
11.69 |
10.07 |
|
Operating Profit Margin(%) |
6.69 |
8.59 |
10.04 |
|
Profit Before Interest And Tax Margin(%) |
6.41 |
8.26 |
9.37 |
|
Cash Profit Margin(%) |
5.04 |
7.07 |
8.61 |
|
Adjusted Net Profit Margin(%) |
4.75 |
6.74 |
7.94 |
|
Return On Capital Employed(%) |
27.30 |
33.19 |
31.42 |
|
Return On Net Worth(%) |
26.93 |
32.08 |
33.64 |
STOCK PRICES
|
Face Value |
Rs. 2/- |
|
High |
Rs. 129.95 |
|
Low |
Rs. 128.60 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
Subject was incorporated on 17th April 1986 in New Delhi having Company Registration Number 23955.
Subject was previously known as HCL Hewlett-Packard and was promoted by a group of technocrats. In May 1986, the company took over Hindustan Computers, Hindustan Reprographics, Hindustan Instruments and Indian Computer Software Company.
In 1991, the company entered into a joint venture with Hewlett-Packard Company, USA, for combining the computer manufacturing, marketing and servicing activities of the company and Hewlett Packard India Private Limited.
Subject has been accredited with ISO 9001 certification for its manufacturing processes and it has also received SEI CMM Level IV accreditation for its software development processes. It has recently been awarded the MAIT Level II recognition for business excellence.
The company manufactures computer
systems at Noida, Uttar Pradesh and computer peripherals at Chennai. It also
manufactures multi-user super-minis and engineering workstations, the
technology for which is being provided by Hewlett-Packard Company, USA. It came
out with a rights issue in November, 1992 to meet the cost of setting up a test
and repair centre; acquire the computer division from Hewlett-Packard India
Private Limited and to modernise the computer manufacturing facilities.
In 1997-98, the company acquired
the business of HCL Infosolutions, HCL Peripherals, and the customer support
activities of HCL office Automation Limited. In 1998-99, it entered into a
relationship with Samsung, Korea to market and support their range of key
telephone systems. It also tied up with Novell to become the largest Novell
authorised support centre.
In 1999-2000, the most significant development has been the formation of its internet subsidiary, HCL Infinet a value added B2B and B2C internet services provider.
The company had received SEI CMM Level IV accreditation for its software
development processes and the ISO 9001 certification for its manufacturing
processes. It has recently been awarded the MAIT Level II recognition for
business excellence.
The company also expanded its
distribution network to become the largest hardware vendor with more than 75
distributors in 42 point of purchase (POP)/locations and more than 1000 sales
outlets. The company also expanded its operations internationally, launching
operations in Bangladesh in September 2000.
During the year 2000-2001, the
company bagged a major networking order from Indian Overseas Bank involving
implementation of Wide Area Network in 11 cities covering 200 branches.
The company has won the MAIT award for Excellence in Exports-Technical Services
for the year 2001-02.
The company has tied-up with Pitney Bowes, a Fortune 500 company and global
provider of integrated mail messaging and document management solutions, to
provide world class mass mailing solutions.
The company being a premier house
for hi-tech support in the filed of information technology had understandably
transformed into a 'home name' for corporate servicing a large clientele in the
country.
The alliance with Sun Microsystems India Private Limited forged during 2002, to
distribute the complete line of Sun Enterprises Products, would surely enhances
the spectrum of services provided by the company to the customer.
Subject is one of the pioneers in the Indian IT market , with its origins in 1976. For over quarter of a century, they have developed and implemented solutions for multiple market segments, across a range of technologies in India. They have been in the forefront in introducing new technologies and solutions. The highlights of the HCL saga are summarised below:
Milestone
Year Highlights
1976
1976 - Foundation of the Company laid
- Introduces
microcomputer-based programmable calculators with wide
acceptance in the scientific / education community
1977
1977 - Launch of the first microcomputer-based commercial
computer with a ROM -based Basic interpreter
- Unavailability of programming skills with customers results in HCL developing
bespoke applications for their customers
1978 - Initiation of application development in diverse segments such as textiles,
sugar, paper, cement , transport
1980 - Formation of Far East Computers Limited., a pioneer in the Singapore IT market,
for SI (System Integration) solutions
1981
1981 - Software Export Division formed at Chennai to support the bespoke
plication development needs of Singapore
- HCL launches an aggressive advertisement campaign with the theme ' even a typist can operate' to make the usage of computers popular in the SME (Small & Medium Enterprises) segment. This proposition involved menu-based application for the first time, to increase ease of operations. The response to the advertisement was phenomenal.
1983 - HCL develops special program generators to speed up the development of applications
- Bank trade unions allow computerisation in banks. However, a computer can only run one application such as Saving Bank Current account, Loans etc.
1985 - HCL sets up core team to develop the required software - ALPM ( Advanced Ledger Posting Machines ) . The team uses reusable code to reduce development efforts and produce more reliable code . ALPM becomes the largest selling software product in Indian banks
-HCL designs and launches Unix- based computers and IBM PC clones
- HCL promotes 3rd party PC applications nationally Zonal offices of banks and
general insurance companies adopt computerization
1986 - Purchase
specifications demand the availability of RDBMS products on the
supplied solution (Unify, Oracle). HCL arranges for such products to be ported
to its platform.
- HCL assists customers to
migrate from flat-file based systems to RDBMS
-HCL enters into a joint venture with Hewlett Packard
- HP assists HCL
to introduce new services: Systems Integration, IT consulting,
packaged support services ( basicline, teamline )
1991 - HCL establishes a Response Centre for HP products, which is
connected to the HP Response Centre in Singapore.
- There is a vertical segment
focus on Telecom, Manufacturing and
Financial Services
- HCL acquires and executes the first offshore project from IBM Thailand
1994 - HCL sets up core
group to define software development methodologies
-Starts execution of Information System Planning projects
1995 -Execution
projects for Germany and Australia
- Begins Help desk
services
1996 - Sets up the STP ( Software Technology Park ) at Chennai to execute software
projects for international customers
- Becomes national
integration partner for SAP
-Kolkata and Noida STPs set up
1997 - HCL buys back HP
stake in HCL Hewlett Packard
1998 - Chennai and Coimbatore development facilities get ISO 9001 certification
- Acquires and sets up fully owned subsidiaries in USA and UK
1999 - Sets up fully owned
subsidiary in Australia
- HCL ties up with
Broadvision as an integration partner
2000
-Sets up fully owned subsidiary in Australia
- Chennai and
Coimbatore development facilities get SEI Level 4 certification
- Bags Award for
Top PC Vendor In India
2000 - Becomes the 1st IT
Company to be recommended for latest version of ISO 9001
: 2000
- Bags MAIT's
Award for Business Excellence
- Rated as No. 1
IT Group in India
2001
-Launched Pentium IV PCs at below Rs 40,000
2001 -IDC rated HCL
Infosystems as No. 1 Desktop PC Company of 2001
-Declared as Top PC Vendor by Dataquest
-HCL Infosystems
& Sun Microsystems enters into a Enterprise Distribution
Agreement
2002 - Realigns
businesses, increasing focus on domestic IT, Communications &
Imaging products, solutions & related services
2003
- Became the first vendor to register sales of 50,000 PCs in a quarter
- First Indian
company to be numero uno in the commercial PC market
-Enters into partnership
with AMD
-Launched Home PC
for Rs 19,999
2003 - HCL Infosystems'
Info Structure Services Division received ISO
9001:2000 certification
-Launches Infiniti
Mobile Desktps on Intel Platform
- Launched
Infiniti PCs, Workstations & Servers on AMD platform
BUSINESS
Subject is engaged in manufacturing of computer systems and computer peripherals.
It also manufactures multi-user super-minis and engineering workstations, the technology for which is being provided by Hewlett-Packard Company, USA. It came out with a rights issue in November 1992 to meet the cost of setting up a test and repair centre; acquire the computer division from Hewlett-Packard India Private Limited; and to modernise the computer manufacturing facilities.
It exports SUN, ENC, PCs, Motherboards, Hardware Designs, Softwares and Consultancy Services to ASEAN, Europe, Japan and USA.
It imports Desktop Computer System, Keyboard X86 Servers, Moniter, Networking Hubs and Switches, Network Passive Components, KIOSK, Thin Client, Chips, IC’s, Assemblies and Softwares from ASEAN, Europe, Japan and USA.
It is in trade terms with:-
· Cubix control Systems Private Limited
· Esteem Industries
· K. K. Nag Limited
· Acem Tech
· Avon Data Cables Private Limited
· Polyteck Packings (India) Private Limited
· Sri Kaleeswarar Industries
· Divya Automats
· Coromandel Electronics
· Electronic Consultants
· Endura Metal Finishers
· Plastic Coats
· Shakthi Data Cables
· Electronic Fasteners
· Nithya Packaging
Performance
The consolidated net
revenue of the Company was Rs. 114021.600 millions as against Rs. 77885.800
millions in the previous year. The consolidated profit before tax was Rs.
3852.600 millions as against Rs. 2960.100 millions in the previous year.
The net revenue and
profit before tax of the Parent Company were Rs. 23117.100 millions and Rs.
1315.200 millions respectively.
The net revenue and
profit before tax for the previous year were Rs. 19639.100 millions and Rs.
1488.700 millions respectively.
The Directors are
pleased to recommend final Dividend @ 100% on the fully paid-up equity shares
of Rs. 21- each for the financial year ended on 30th June, 2006. During
the first nine months, three interim (quarterly) dividends of 100% each were
declared taking the total dividend for the year 2005-06 to 400%.
During the year,
the company and Nokia jointly announced a long-term distribution strategy for
further developing the rapidly growing Indian mobile phones market. As per the
revised arrangement, Nokia would add certain areas for direct billing by them
so as to ultimately maintain a balanced channel mix, for GSM handsets. As a
part of this announcement, the company's distribution agreement with Nokia has
been extended for the next several years.
Operations
A review of operations
of the businesses of the Company for the year ended June 30, 2006 is provided
in the attached Management Discussion and Analysis Report.
Quality Initiatives
During the year
under review significant achievements have been made in the quality initiatives
front.
The Company has
achieved continuous improvement on Customer Satisfaction Survey. Customer
loyalty has improved with more than 77% customers rating "Very Likely
" to continue to purchase products from the company.
The Company was
awarded the "Department of Electronics & Telecommunications (DET)
Corporate Award" for Performance Excellence in the field of Computer &
Tele-Communication System.
System Support
Organization - Info Structure Services has been re-certified under ISO
9001-2000 by BVQI (Certification Body) during the year for the next 3 years
upto 2009.
Scheme of Arrangement
The Board of
Directors have approved a composite Scheme of Arrangement (Scheme) for
amalgamation of the Office Automation and Telecommunication business (remaining
business) of HCL Infinet Limited, the wholly owned subsidiary with the Company
after demerger of the Networking business of HCL Infinet Limited into Microcomp
Limited. The Scheme is being filed under Sections 391-394 of the Companies Act,
1956 with the Hon'ble High Court of Delhi for necessary directions. The Scheme
on its sanction by Hon'ble High Court shall be effective from April 1, 2006.
The Scheme will
help the Company to address the changing market scenario to take advantage of
increasing convergence in the IT, Telecom and Office Automation technologies by
offering these multifunctional products and services from one Company to cater
the needs of customers and thus help compete better in the market place.
Sub-division of Equity Shares
The Company has
sub-divided the face value of each equity share of Rs. 10/- into 5 equity
shares of Rs. 2/- each
with effect from July 15, 2005, the Record Date pursuant to the resolution
passed by the shareholders through postal ballot.
SEGMENT PERFORMANCE
Computer Systems
and related products & services, Telecommunication & Office Automation
and Internet & related services are the three primary segments.
Computer Systems and Related Products &
Services:
The segment
operations comprise of sale of computer hardware and system integration
products and providing a comprehensive range of IT services including system
maintenance, facilities management etc in different industries.
Segment revenue
grew by 21% from Rs. 19710 millions in the previous year to Rs. 23810 millions
in the current year. Segment results (PBIT) for the current year is reported at
Rs. 1260 millions. Capital Employed in the segment is Rs. 3870 millions as on
June 30, 2006 as against Rs. 2980 millions as on June 30, 2005.
Return on Capital
Employed is 32%.
Telecommunication & Office Automation:
The segment
operations comprise of distribution of telecommunication products, office
automation products and related comprehensive maintenance services.
Revenue of the segment
for the current year grew by 57% from Rs. 57790 millions in the previous year
to Rs. 90500 millions. The PBIT grew by 66% from Rs. 1470 millions in the
previous year to Rs. 2440 millions in the current year. Capital Employed in the
segment is negative Rs. 12 millions as on June 30, 2006 as against Rs. 390
millions as on June 30, 2005.
PROFILE
Subject was founded in the year 1983 has established itself as a leading manufacturer of computer peripherals in India. Subject is a group company of HCL Infosystems Limited (turnover Rs. 43000 millions), the No. 1 hardware manufacture in India. With a humble turnover of Rs. 20.000 millions in the year of inception nearly 2 decades ago, today subject has established itself as a leading manufacturer of computer peripherals in India and is poised to touch the rupees five thousand millions mark by the year 2002.
Subject being a premier house for hi-tech support in the field of information technology has understandably transformed into a ‘home name’ for corporate, servicing a large clientele in the country.
With such a profile one more attempt to gear up and aggrandise the silhouette of service and success, is made by the launch of a product line of a wide range of modular enclosures and accessories for networking and communication devices under the banner of HCL Peripherals. (A unit of HCL Infosystems Limited).
Company’s fixed assets includes Leasehold and Freehold Land, Buildings, Plant and Machinery and Air Conditioner, Furniture, fixtures and Office Equipments and Vehicles.
PRESS CLIPPINGS
HCL INFOSYSTEMS REPORTS CONSOLIDATED REVENUE OF Rs. 29689 MILLIONS (USD
664.5 Millions) FOR
THE QUARTER ENDED 31st DECEMBER 2006. PAT IS Rs. 760 MILLIONS(USD
17.0 Millions),
GROWS AT 19%.
New Delhi, January 24, 2007: HCL Infosystems Limited, India's premier Information enabling
company today announced its un-audited results for the quarter ended December
31, 2006.
The company has reported consolidated revenue of Rs. 29689 millions (USD 664.5 Millions) during the quarter ended December 31, 2006 as against Rs. 28071 millions (USD 628.3 Millions) in the corresponding quarter of the previous year.
Profit before tax for the quarter was Rs. 1049 millions (USD 23.5 Millions) as against Rs.
880 millions (USD 19.7 Millions) in the corresponding quarter of the
previous year. Profit after tax was Rs. 760 millions (USD 17.0 Millions).
Revenue from the Computer Systems business was Rs. 6528 millions (USD 146.1 Millions) as against Rs. 5570 millions (USD 124.7 Millions) in the corresponding quarter of the
previous year, a growth of 17%. Profit before interest and taxes was Rs. 439 millions (USD 9.8 Millions) as against Rs. 258 millions (USD 5.8 Millions) in the corresponding quarter of the
previous year, a growth of 70%.
Revenue from the Telecommunication and Office Automation business was Rs. 23095
millions (USD 516.9 Millions) as against Rs. 22437 millions (USD 502.2 Millions) in the corresponding quarter of the previous year. Profit before
interest and taxes was Rs. 615 millions (USD 13.8 Millions) as against Rs. 617 millions (USD 13.8 Millions) in the corresponding quarter of the previous year.
Consolidated EPS for the quarter was Rs 45 per share as against Rs. 38 per share in the corresponding quarter of
the previous year, a growth of 18%.
The Board of Directors has declared quarterly Interim dividend of Rs. 2/-
per share (100 % on an equity share of par value of Rs. 2/- each)
Conversion rate: 1 USD= 44.68 INR
Mr. Ajai Chowdhry, Chairman and CEO, HCL Infosystems Limited, commenting on the
results for the quarter ending December 31, 2006 said, "In the last
quarter, HCL consolidated its position on two key frontiers. They commissioned their second state-of-the-art integrated ICT manufacturing facility at
Uttranchal, which not only makes us India's leading PC manufacturer, but also
puts HCL in a strong position to capitalize on the growing opportunities in the
Indian PC market. Reaffirming their focus on PCs as
center of the digital lifestyle, they launched four new
desktop models with truly innovative features for the Indian market. The
distribution arm also sustained its forward momentum by expanding its retail
presence to 29 HCL Digilife outlets across the nation."
Quarter highlights:
This quarter saw HCL the leading PC manufacturer of India, announce its
commercial production in North India at Rudrapur, Uttaranchal. This has
enhanced the overall capacity of HCL. Beginning with the production of desktop
computers and LCD monitors, the plant has the capability to manufacture an
entire spectrum of IT products - including notebooks, servers as well as thin
clients.
The new HCL manufacturing base, which was completed in record eight months, has
already received its ISO 14001, ISO 9001:2000 certifications - ensuring that
all HCL products manufactured here, comply with global quality standards. The
facility has also boosted the development of regional economy with recruitment
of more than 200 local employees.
The new HCL facility is equipped with several state-of-the-art processes
as well as advanced testing techniques. These ensure that the various products
coming out from HCL assembly line are uniquely equipped to face the challenging
weather & extreme operating conditions in India. The unique
'Build-to-order' (BTO) capabilities of the manufacturing plant pioneered by HCL
thirty years ago - enables HCL to manufacture ICT products with specific
configurations - customized to suit the needs of particular customers, in a matter of just few hours.
Reinforcing its leadership positioning, HCL launched the future generation of
digital lifestyle enablers - HCL Beanstalk 2007 Collection, this quarter. An
exquisite range of four new sleek and ultra-portable PCs that promise to
spearhead the transition of desktop PCs from workstations to epicenters of
'digital entertainment'. The range includes:
· HCL Beanstalk Nano - the smallest, ultra-portable premium home
PC in India with height of 42 mm and weight of 1.3 kg.
· HCL Beanstalk Lyfestyle - the first ever desktop PC to feature
digital user interface on its casing, with revolutionary multi-media access
features.
· HCL Beanstalk Dominator - Certified India's most powerful
gaming PC.
· HCL Beanstalk Slim
-
the ultra-slim, ultra-portable desktop.
All HCL Beanstalk PCs in this range are ready for Windows Vista - the new
generation software standard, soon to be launched. This new range of PCs from
HCL uses Intel's Core 2 Extreme processors to deliver immense speed and
responsiveness for digital media creation, high-end gaming and is aimed at
market segments, which crave absolute performance.
With this range - HCL Infosystems Limited., created marketing history in the Indian hardware sector - by becoming
the first-ever PC brand to be pre-launched on select websites - before hitting
the shelves of various stores nationwide.
HCL increased its stronghold in the growing Indian retail industry by emerging
as the number one vendor of 'Point of Sales '(PoS) solutions in India. HCL PoS
offerings saw a boost with launch of 4 new models, including HCL Ambience (XP,
XL & Light) and an Electronic Cash Register for low-end single shop owners.
In partnership with Toshiba, HCL introduced in India the world's first range of
eco-efficient consumer and business notebooks that are compliant with European
Union (EU) RoHS (Restriction of Hazardous Substances) directive.
Redefining standards of digital lifestyle retailing, HCL has expanded its chain
of exclusive Digital Lifestyle showrooms to Delhi, Ahmedabad, Hyderabad,
Ambala, Kanpur, Palwal this quarter, taking the total number of outlets to 29,
all over the nation.
HCL, besides being the "country's first" for concurrent global
launches of the latest computing technologies for the Indian Enterprise,
launched its innovative & groundbreaking 60-second PC restoration
technology EC2 this quarter.
EC2 is a technology primarily designed to minimize a system's downtime by
protecting it from unwanted and unpredictable changes & vulnerabilities of
the system's configuration, operating system, software settings, parameter
settings etc. caused by viruses, user's error, system crashes etc. The new
'non-stop series' of HCL 'Leaptop' notebooks are being shipped out with EC2
technology, a tremendous value-addition for notebook buyers.
In the enterprise segment HCL continued to win orders from leading players
across major industry verticals, enabling them to leverage ICT to enhance their
efficiencies & concentrate on their core business and serve their customers
better.
Large projects completed include Andaman & Nicobar computerization of
schools across 40 locations & 20 islands, Project for a leading bank
involving implementation of core banking hardware & servers in branches
across 18 islands and computerization in all departments of Andaman &
Nicobar administration.
In the SMB segment, HCL partnered with ICICI to provide complete ICT solutions
to small & medium enterprises, with an array of customized finance options.
HCL organized an activity called SME knowledge series to reach out to the SME
segment. Several such events are planned in the next few months.
In the office automation space, HCL continued to bag several orders for MFDs,
copiers & printers from leading Corporates, Govt. & Hospitality
segments. HCL announced a tie-up with Nipson for high-end digital production
printers, with application in book printing, transactional printing and
security printing this quarter.
The overall telecommunication segment witnessed a healthy growth over the
corresponding quarter last year. The quarter saw some of the major wins for
Voice, Video Conferencing & Broadcast solutions from new customers across
diverse verticals coupled with good repeat business from existing customers.
HCL launched new Apple iPod models in the country this quarter; including iPod
Shuffle 1GB in new shapes & sizes, iPod nano with colour variants in 2GB,
4GB and 8GB memory capacity and iPods in 30GB, 80GB. Apple also released the
iPod shuffle 512MB exclusively through HCL at attractive price.
Awards and Recognitions:
· HCL among the Top 50 Fastest
Growing Technology Companies in India & 'Top 500 Fastest Growing Technology
Companies in Asia Pacific by 'Deloitte & Touche'.
· HCL was adjudged & awarded
as the 'Best Distributor Partner in India' for its performance in the last six
months, at the Apple Partners Meet. This speaks volumes of HCL's expertise
& distribution strength, having bagged this award in the first year of its
partnership with Apple.
· 'Best Thin Clients
Technology', Best Projector (for Infocus), Best A-3 Multifunctional Device (for
Toshiba) Awards from VAR India Channel Publication.
· HCL Infosystems Limited was adjudged and awarded as the winner by
'`Dun & Bradstreet' in the computer hardware and peripherals sector for the
year 2006.
· HCL Infosystems Limited was recognized as Top PC Vendor 05-06' by
Dataquest in their DQ Top 20 Annual Survey.
· HCL Infosystems Limited received ELCINA Quality Award 2005-06 for
Technology Leadership and Innovation for India.
· HCL Infosystems Limited was awarded the 'Star Retailer Award' at
the Franchise India Holdings Limited Award Ceremony.
About HCL Infosystems
HCL Infosystems, with revenue (TTM) of US$ 2.7 billion (Rs. 12,155 millions), is India's premier information enabling
and system integration company. HCL offers products and infrastructure
solutions in the fields of computing, communication, networking, office
automation, broadcasting and imaging. It has partnerships with leading global
players like Intel, AMD, Toshiba, Bull, Ericsson, Cisco, Microsoft, Nokia,
Apple, Computer Associates, Casio, Symantec and Konica Minolta among others.
HCL has a direct sales, channel sales and retail sales network pan India. HCL
has a support of 360+ customer service centers and four ISO 9001 certified
state-of-the-art manufacturing facilities. HCL Infosystems has pan India
presence across metros and non-metros. With a mission to provide world-class
information technology solutions and services to enable its customers to serve
their customers better, HCL Infosystems is forever setting new standards of IT
in the country.
About HCL Enterprise:
HCL Enterprise is a leading global technology and IT enterprise with revenues
(TTM) of US $ 3.8 billion (Rs. 17,376 millions). The HCL Enterprise comprises two companies listed in India - HCL
Technologies & HCL Infosystems. The 3-decade-old enterprise, founded in
1976, is India's original IT garage start-up. Its range of offerings span
Product Engineering, Technology and Application Services, BPO, Infrastructure
Services, IT Hardware, Systems Integration, and distribution of ICT products.
The HCL team comprises 43,000 professionals of diverse nationalities, who
operate from 16 countries including 360 points of presence in India. HCL has
global partnerships with several leading Fortune 1000 firms, including leading
IT and Technology firms.
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 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
55 |
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 |
|