MIRA
INFORM REPORT
|
Report Date : |
27.04.2007 |
IDENTIFICATION
DETAILS
|
Name : |
R SYSTEMS INTERNATIONAL LIMITED |
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Registered Office : |
B 104 A Greater Kailash , Part
-1, New Delhi 110048 |
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Country : |
India |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
14.05.1993 |
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Com. Reg. No.: |
55-53579 |
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CIN No.: [Company
Identification No.] |
U74899DL1993PLC053579 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELR10140E |
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PAN No.: [Permanent
Account No.] |
AABCR9541B |
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Legal Form : |
Public Limited Liability Company. The Company’s Shares are Listed on
The Stock Exchange. |
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Line of Business : |
Subject is a Software product development and BPO services
company |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
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RATING |
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 5000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed company having satisfactory
track. Directors are reported as experience and respectable businessmen.
Trade relations are reported as fair. Business is active. Payments are
usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
B 104 A Geater Kailash , Part-1 New Delhi 110048 India |
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Website : |
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Corporate Office : |
C-40 , Sector -59 Noida Uttar Pradesh -201307 |
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Tel. No.: |
91-120-4303500 |
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Fax No.: |
91-120-2587123 |
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E-Mail : |
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Overseas Office: |
17 Changi Business Park ,Central 1 , No.05-01 Singapore 486073 |
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Tel. No.: |
011-65-67855266 |
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Fax No.: |
011-65-67850525 |
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E-Mail : |
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Overseas Office: |
5000 Windplay Drive El Dorado Hills , CA 95762 |
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Tel. No.: |
800-355-5159 |
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Fax No.: |
916-939-9697 |
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E-Mail : |
DIRECTORS
|
Name : |
Mr. Satinder Singh Rekhi |
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Designation : |
Chairman & Managing Directors |
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Qualification : |
Engineering and Computer Science, California State University. |
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Experience : |
20 years |
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Name : |
Lt. Gen Baldev Singh (Rets.) |
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Designation : |
Senior Executive Directors |
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Qualification : |
Account Management, Marketing and Senior Management |
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Experience : |
40 years |
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Name : |
Mr. Gen Baldev Singh (Retd.) |
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Designation : |
Director Finance & CFO |
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Qualification : |
Commerce and Economics degree |
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Experience : |
20 years |
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Date of Appointment : |
January 2000 |
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Name : |
MR. Raj Swaminathan |
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Designation : |
Directors & Chief Operating officer |
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Qualification : |
MBA |
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Name : |
Mr. Raj Kumar Gogia |
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Designation : |
Non-Executive Independent Director |
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Name : |
Mr. David Richard Sanchez |
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Designation : |
Non-Executive Independent Director |
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Name : |
Mr. Gurbax Singh Bhasin |
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Designation : |
Non Executive Interdependent Director |
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Name : |
Mr. Gurbax Singh Bhasin |
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Designation : |
Non Executive Independent Directors |
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Name : |
Mr.Suresh Paruthi |
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Designation : |
Non Executive Independent Directors |
SHAREHOLDING
PATTERN
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Shareholding of Promoter and Promoter Group |
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|
|
Indian |
|
|
|
Individuals / Hindu Undivided Family |
8246 |
0.06 |
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Bodies Corporate |
1964432 |
14.46 |
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Sub Total |
1972678 |
14.52 |
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Foreign |
|
|
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Individuals (Non-Residents Individuals / Foreign Individuals/ Foreign
Individuals) |
209536 |
1.54 |
|
Bodies Corporate(OBC) |
927200 |
6.83 |
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Any Others (Specify ) (Foreign Trust) |
2430918 |
17.90 |
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Sub Total |
3567654 |
26.27 |
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Total Shareholding of Promoter and Promoter Group |
5540332 |
40.79 |
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Public Shareholding |
|
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Institutions |
|
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Mutual Funds /UTI |
1210000 |
8.91 |
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Foreign Institutional Investors |
150000 |
1.10 |
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Foreign Venture Capital Investors |
20266 |
0.15 |
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Sub – Total |
1380286 |
10.16 |
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Non –Institutions |
|
|
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Bodies Corporate |
2491682 |
18.34 |
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Individuals I. individual Shareholders holding normal share capital up
to Rs.0.1million |
2259675 |
16.64 |
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Individual Shareholders holding nominal share capital in excess of
Rs.0.1million |
1835624 |
13.51 |
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Any Other |
75107 |
0.55 |
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Sub Total |
6662088 |
49.04 |
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Total of Public Share =holding |
8042374 |
59.21 |
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Total |
13582706 |
100.000 |
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Grand Total |
13582706 |
100.000 |
BUSINESS DETAILS
|
Line of Business : |
Subject is a Software product development and BPO services
company |
GENERAL
INFORMATION
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Customers : |
· GE consumer Finance · ABN AMRO Bank · Standard
Chartered Bank |
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Bankers : |
Not Available |
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Facilities : |
-- |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
S R Batlibol & Associates Chartered Accountants |
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Address : |
Delhi |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
20000000 |
Equity Share |
Rs.10/- each |
Rs.200.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1071051 |
Equity Share |
Es.10/- each |
Rs.10.710
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.12.2006 (Consolidated) |
31.12.2005 |
31.12.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
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1] Share Capital |
135.458 |
51.400 |
51.400 |
|
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1146.885 |
647.100 |
552.300 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1282.343 |
698.500 |
603.700 |
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LOAN FUNDS |
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1] Secured Loans |
24.258 |
83.600 |
123.100 |
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2] Unsecured Loans |
0.000 |
15.400 |
36.300 |
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TOTAL BORROWING |
24.258 |
99.000 |
159.400 |
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Deferred
Payments Liability |
16.832 |
0.000 |
0.000 |
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DEFERRED TAX LIABILITIES |
17.693 |
0.000 |
0.000 |
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TOTAL |
1341.126 |
797.500 |
763.100 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
544.238 |
201.700 |
203.500 |
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Capital work-in-progress |
10.613 |
54.500 |
26.100 |
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INVESTMENT |
13.463 |
310.100 |
334.600 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
0.000
|
0.000 |
0.000
|
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Sundry Debtors |
483.371
|
247.500 |
278.200
|
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Cash & Bank Balances |
531.741
|
24.200 |
39.100
|
|
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Other Current Assets |
141.567
|
0.000 |
0.000
|
|
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Loans & Advances |
75.351
|
91.500 |
137.400
|
|
Total
Current Assets |
1232.030
|
454.700
|
363.200 |
|
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Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
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Current Liabilities |
342.821
|
148.800 |
194.000
|
|
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Provisions |
116.397
|
15.500 |
29.500
|
|
Total
Current Liabilities |
459.218
|
223.500
|
164.300 |
|
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Net Current Assets |
772.812
|
231.200
|
198.900 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
1341.126 |
797.500 |
763.100 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.12.2006 (Consolidated) |
31.12.2005 |
31.12.2004 |
|
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Sales Turnover |
2039.458 |
808.600 |
561.200 |
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Other Income |
40.208 |
7.700 |
2.500 |
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Total Income |
2079.666 |
816.000 |
563.700 |
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Profit/(Loss) Before Tax |
154.972 |
139.600 |
21.000 |
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Provision for Taxation |
15.889 |
12.200 |
3.800 |
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Profit/(Loss) After Tax |
139.083 |
127.400 |
17.200 |
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Expenditures : |
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Manufacturing Expenses |
0.000 |
17.200 |
16.700 |
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Interest |
0.000 |
8.500 |
9.500 |
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Depreciation & Amortization |
59.124 |
31.700 |
28.400 |
|
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Other Expenditure |
1865.570 |
236.400 |
224.800 |
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Total Expenditure |
1924.694 |
293.800 |
279.400 |
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SUMMARISED RESULTS
|
PARTICULARS |
31.12.2006 (Full Year ) |
|
Year |
Full
Year |
|
Type |
1175.4 |
|
Sales
Turnover |
49.3 |
|
Other
Income |
1224.7 |
|
Total
Income |
1049.4 |
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Total
Expenditure |
175.3 |
|
Operating
Profit |
04.3 |
|
Interest |
171.0 |
|
Gross
Profit |
45.3 |
|
Depreciation |
19.8 |
|
Tax |
100.5 |
|
Reported
PAT |
120.0 |
KEY RATIOS
|
PARTICULARS |
|
31.12.2006 (Consolidated) |
31.12.2005 |
31.12.2004 |
|
PAT / Total Income |
(%) |
6.68
|
15.61 |
3.20 |
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Net Profit Margin (PBT/Sales) |
(%) |
7.59
|
15.76
|
3.06 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
8.72
|
21.26 |
3.03 |
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Return on Investment (ROI) (PBT/Networth) |
|
11.55
|
19.57
|
2.63 |
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|
Debt Equity Ratio (Total Liability/Networth) |
|
0.35
|
0.20
|
0.16 |
|
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|
Current Ratio (Current Asset/Current Liability) |
|
2.68
|
1.52
|
1.79 |
STOCK PRICES
|
Face Value |
Rs.10/- each |
|
High |
Rs.146.45 |
|
Low |
Rs.135.10 |
LOCAL AGENCY
FURTHER INFORMATION
History
Originally incorporated as R Systems (India) Private
Limited on May 14 1993 under the Companies Act 1956, with registration number
55-053579, with its registered office at CB-104 A, Greater Kailash – I, New
Delhi 110048.Subsequemtly , the name was changed to R Systems(India ) Limited
on April 13,2000 . The name was charged to R Systems International Limited on
August 7, 2000.
Web Site Details:
R Systems
International Limited
Subject was founded in 1993, is a software product development and BPO services company. It helps companies bring products and services to market quicker by using its proprietary pSuite execution framework. Customers can choose services specific to their needs from R Systems iPLM suite of services. R Systems rapidly growing customer list includes a variety Fortune 1000, Government and mid-sized organizations across a wide range of industry verticals including Banking and Finance, Government, HealthCare, High Technology and Independent Software Vendors.
R Systems maintains five large Centers for Software Excellence, one
center in El Dorado Hills, CA, one center in Singapore and the other three in
India (Pune, Chennai and Noida). They are also has a significant presence in
the ASEAN area with its local headquarters in Singapore and seven regional
offices. R Systems has multiple delivery centers spread across US (El Dorado
Hills, CA & Salt Lake City, UT), India (Noida, Chennai & Pune) and
Singapore. Singapore is also its Center for Supply Chain Management (SCM)
excellence.
They are three delivery centers in India are ISO 9001:2000 and SEI: CMM
level 5 certified.
R Systems Mission Statement
Subject was committed to building world class
products based on its philosophy that great products help build successful
companies. This is designed to drive customer satisfaction, make the workplace
a fun place for our employees and create significant share holder value.
“Products Foremost -
Inspired by our Customers”
Services
Subject delivers a variety of IT & BPO Services to Global 1000, mid-sized and government organizations worldwide. These services are delivered using the most optimal delivery mechanism and includes services provided on-site, off-site and offshore. They are delivery centers are ISO 9000:2001 and SEI CMM level 5 certified.
The IT Services provided includes iPLM Services
targeted at Software Product Companies and Enterprise Solutions offered to
mid-sized and large organizations.
iPLM Services
This is designed to provide ISV's, service providers and product driven organizations a strategic platform to outsource their product development needs. Designed to help companies across the product lifecycle, customers can either pick a turn key option or decide to enter into a strategic product development agreement using R Systems dedicated facilities. They are excellence in service delivery coupled with its pSuite execution framework ensures that high quality products can be brought to market faster.
Enterprises Application Services
This is designed for businesses that look to improve their
operations by using IT as a strategic tool. This would entail development and
implementation of solutions such as Enterprise Resource Planning, Supply Chain
Management, Business Intelligence, and Knowledge Management applications. More
often then not, these solutions would either need to be customized or custom
built. R Systems in partnership with industry leading vendors provides these
solutions in conjunction with long term offshore based support services.
BPO Services
They are BPO services have enabled our clients to reduce operations cost while enhancing customer satisfaction - Some benefits experienced are reduced wait times, improved response accuracy & turnaround times, increased coverage hours.
There services are focused on the High Technology,
Healthcare and Financial services sectors. The services include customer care,
technical support, revenue cycle management and transaction processing.
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.40.78 |
|
UK Pound |
1 |
Rs.81.79 |
|
Euro |
1 |
Rs.55.66 |
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 |
8 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--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 |
|
51 |
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 |
|