MIRA
INFORM REPORT
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Report Date : |
13.08.2007 |
IDENTIFICATION DETAILS
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Name : |
3I INFOTECH LIMITED |
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Registered Office : |
Tower 5, 3rd to 6th Floors, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
11.10.1993 |
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Com. Reg. No.: |
11-74411 |
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CIN No.: [Company
Identification No.] |
L67120MH1993PLC074411 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMI02122B |
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PAN No.: [Permanent
Account No.] |
AAACI5205Q |
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Legal Form : |
Public Limited Liability Company. The Company’s shares are listed on
Stock Exchanges. |
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Line of Business : |
Provides Technology Solutions |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 18466000 |
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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 well-established and reputed company having fine track.
The company is progressing well. Directors are reported as experienced and
respectable businessmen. Trade relations are reported as fair. Business is
active. Payments are usually correct and as per commitments. Fundamentals are strong and healthy. The company can be considered normal for business dealings at usual
trade terms and conditions. The company can be regarded as a promising business partner in a
medium to long-run. |
LOCATIONS
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Registered Office : |
Tower 5, 3rd to 6th Floors, |
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Tel. No.: |
91-22-67928090 |
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Fax No.: |
91-22-67928094 |
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E-Mail : |
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Website : |
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Corporate Office : |
Akruti Centre Point, 6th Floor,
M.I.D.C Central Road, Next to Marol Telephone Exchange, Andheri (East),
Mumbai - 400 093, India |
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Tel. No.: |
91-22-39145700 |
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Fax No.: |
91-22-39145520 |
DIRECTORS
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Name : |
Mr. Hoshang N. Sinor, |
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Designation : |
Chairman |
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Name : |
Mr. Samir Kumar Mitter |
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Designation : |
Director |
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Name : |
Mr. Bruce Kogut |
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Designation : |
Director |
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Name : |
Mr. Madhabi Puri Buch |
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Designation : |
Director |
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Name : |
Mr. S. Santhanakrishnan |
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Designation : |
Director |
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Name : |
Mr. Suresh Kumar |
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Designation : |
Director |
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Name : |
Mr. V. Srinivasan |
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Designation : |
Managing Director & CEO |
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Name : |
Mr. Hariharan Padmanabhan |
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Designation : |
Deputy Managing Director |
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Name : |
Mrs. Vishakha Mulye |
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Designation : |
Director |
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Name : |
Mr. Ashok Jhunjhunwala |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Shivanand R. Shettigar |
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Designation : |
Compliance Officer and Company Secretary |
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Name : |
Mr. Amar Chintopanth |
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Designation : |
Chief Financial Officer |
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Name : |
Mr. Anirudh Prabhakaran |
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Designation : |
COO - |
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Name : |
Mr. Arvind Joshi |
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COO - |
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Name : |
Mr. Chandrashekar M. S. |
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Designation : |
CEO - Datacons Private. Limited. (100% subsidiary of 3i Infotech) |
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Name : |
Mr. Debneel Mukherjee |
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Designation : |
President - |
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Name : |
Mr. Kalpesh Desai |
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Designation : |
COO - |
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Name : |
Mr. M. B. Battliwala |
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Designation : |
Senior General Manager |
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Name : |
Mr. Suheim
Sheikh |
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Designation : |
MD - SDG Software Technologies Limited. (100% subsidiary of 3i Infotech) |
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Name : |
Mr. Padmanabhan Iyer |
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Designation : |
Senior General Manager |
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Name : |
Mr. Debasis Pal |
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Designation : |
General Manager |
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Name : |
Mr. Jagannath Rao |
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Designation : |
General Manager |
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Name : |
Mr. K. N. Madhava |
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Designation : |
General Manager |
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Name : |
Mr. Manoj Mandavgane |
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Designation : |
General Manager |
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Name : |
Mr. P. V. Sreenath |
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Designation : |
General Manager |
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Name : |
Mr. Rakesh Doshi |
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Designation : |
Senior Vice President - |
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Name : |
Mr. Ramakrishnan V. |
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Designation : |
General Manager |
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Name : |
Mr. Ravi Jagannathan |
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Designation : |
COO - |
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Name : |
Mr. Sanjeev Saxena |
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Designation : |
General Manager |
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Name : |
Mr. Shridhar Kane |
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Designation : |
General Manager |
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Name : |
Mr. Shivaprakash |
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Designation : |
Senior Vice President - |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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(A) Shareholding
of Promoter and Promoter Group |
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1. Indian |
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a. Individual Hindu Undivided Family |
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b. Central Government / State government(s) |
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c. Bodies Corporate |
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d. Financial Institutional Banks – ICICI Bank Limited |
6295859 |
10.17 |
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e. Any other (WITCO A/c ICICI strategic Investment Fund) |
19518095 |
31.53 |
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2. Foreign |
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a. Individual (Non-Resident individuals / Foreign Individuals) |
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b. Bodies Corporate |
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c. Institutions |
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d. Any Other (specify) |
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(B) Public
Shareholding (1) |
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1. Institutions |
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a. Mutual Funds UTI |
6970092 |
11.26 |
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b. Financial Institutional / Banks |
45991 |
0.07 |
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c. Central Government / State Government(s) |
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d. Venture Capital Funds |
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e. Insurance Companies |
4672333 |
7.56 |
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f. Foreign Institutional Investors |
2906028 |
4.69 |
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g. Foreign Venture Capital Investors |
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h. Any Other (Foreign Banks) |
2304268 |
3.72 |
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2. Non-Institutions |
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a. Bodies Corporate |
5348220 |
8.64 |
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b. Individuals – i. individual shareholders holding nominal
share capital up to Rs.0.100 million ii. individual shareholders holding nominal
share capital to excess of Rs.0.100 million |
11357493 1789996 |
18.33 2.89 |
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c. Any other (Foreign Companies) |
703986 |
1.14 |
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Total (A) + (B) |
61912361 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Provides Technology Solutions |
GENERAL INFORMATION
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Customers : |
v
Hong Leong Bank v
Deutche Bank v
GSK v
v
Prudential v
Al Ansari v
ICICI Bank v
ICICI v
IDBI Bank v
Pidilite v
National Starch and Chemical v
Pioneer v
Polymers v
AIG v
Standard Chartered v
HP Invent |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Lodha & Company Chartered Accountants |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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100000000 |
Equity Shares |
Rs.10/- each |
Rs.1000.000 millions |
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300000000 |
Cumulative Preference Shares |
Rs.5/- each |
Rs.1500.000 millions |
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Total |
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Rs.2500.000
millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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1563000000 |
Equity Shares |
Rs.10/- each |
Rs.1563.000
millions |
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
1563.000 |
1530.450 |
1810.030 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
3053.500 |
2191.740 |
299.140 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
4616.500 |
3722.190 |
2109.170 |
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LOAN FUNDS |
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1] Secured Loans |
512.800 |
563.480 |
596.190 |
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2] Unsecured Loans |
4947.300 |
2590.290 |
822.370 |
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TOTAL BORROWING |
5460.100 |
3153.770 |
1418.560 |
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DEFERRED TAX LIABILITIES |
0.000 |
8.490 |
0.200 |
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TOTAL |
10076.600 |
6884.450 |
3527.930 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1248.000 |
2071.360 |
1651.450 |
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Capital work-in-progress |
129.900 |
22.460 |
79.110 |
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INVESTMENT |
5917.200 |
1009.410 |
866.480 |
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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 |
0.340 |
0.340 |
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Sundry Debtors |
1096.700 |
1083.510 |
575.890 |
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Cash & Bank Balances |
651.700 |
2494.590 |
93.680 |
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Other Current Assets |
0.000 |
587.160 |
411.020 |
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Loans & Advances |
2308.300 |
527.100 |
595.110 |
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Total
Current Assets |
4056.700 |
4692.700 |
1676.040 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
848.200 |
657.980 |
619.330 |
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Provisions |
427.000 |
253.500 |
134.810 |
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Total
Current Liabilities |
1275.200 |
911.480 |
754.140 |
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Net Current Assets |
2781.500 |
3781.220 |
921.900 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
8.990 |
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TOTAL |
10076.600 |
6884.450 |
3527.930 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
3323.700 |
2760.340 |
2070.280 |
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Other Income |
1906.800 |
59.020 |
34.900 |
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Total Income |
52530.500 |
2819.360 |
2105.180 |
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Profit/(Loss) Before Tax |
659.000 |
410.030 |
198.720 |
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Provision for Taxation |
16.100 |
17.900 |
22.660 |
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Profit/(Loss) After Tax |
642.900 |
392.130 |
176.060 |
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Expenditures : |
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Cost of Goods Sold |
NA |
1444.490 |
1270.470 |
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Manufacturing Expenses |
883.500 |
NA |
NA |
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Administrative Expenses |
576.900 |
661.660 |
359.010 |
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Interest |
222.500 |
66.410 |
106.910 |
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Power & Fuel |
42.900 |
NA |
NA |
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Depreciation & Amortization |
137.700 |
236.770 |
170.070 |
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Other Expenditure |
1352.000 |
NA |
NA |
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Total Expenditure |
3215.500 |
2409.330 |
1906.460 |
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QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2007 1st
Quarter |
|
Sales Turnover |
|
|
1188.100 |
|
Other Income |
|
|
37.200 |
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Total Income |
|
|
1225.300 |
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Total Expenditure |
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|
880.000 |
|
Operating Profit |
|
|
345.300 |
|
Interest |
|
|
83.700 |
|
Gross Profit |
|
|
261.600 |
|
Depreciation |
|
|
40.400 |
|
Tax |
|
|
03.000 |
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Reported PAT |
|
|
214.200 |
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
1.03 |
0.78 |
0.56 |
|
Long Term Debt-Equity Ratio |
0.99 |
0.73 |
0.49 |
|
Current Ratio |
3.24 |
2.78 |
1.76 |
|
TURNOVER RATIOS |
|
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Fixed Assets |
1.32 |
1.01 |
0.98 |
|
Inventory |
16618.50 |
7886.57 |
450.07 |
|
Debtors |
3.05 |
3.33 |
3.70 |
|
Interest Cover Ratio |
2.79 |
5.49 |
2.78 |
|
Operating Profit Margin(%) |
22.83 |
26.74 |
23.19 |
|
Profit Before Interest And Tax Margin(%) |
18.69 |
18.16 |
14.97 |
|
Cash Profit Margin(%) |
15.73 |
22.78 |
16.72 |
|
Adjusted Net Profit Margin(%) |
11.58 |
14.20 |
8.50 |
|
Return On Capital Employed(%) |
7.33 |
9.65 |
9.46 |
|
Return On Net Worth(%) |
10.14 |
18.34 |
13.31 |
STOCK PRICES
|
Face Value |
Rs.10.00/- |
|
High |
Rs.294.90 |
|
Low |
Rs.291.50/- |
LOCAL AGENCY FURTHER INFORMATION
Company Profile:
Subject was promoted by ICICI Bank Ltd (
3i Infotech offers a comprehensive range of software and IT solutions,
including packaged applications for the Banking, Financial Services &
Insurance (BFSI), Manufacturing, Contracting, and Retail & Distribution
industries. In addition, it offers a broad range of software services such as
Custom Software Development, IT Consulting, IS and IT Security Consulting,
Enterprise Application Integration (EAI), and specialized services such as
Product Re-engineering, Compliance Consultancy, Application Rehabilitation and
e-governance, among others.
The Company's quality certifications include SEI CMMI Level 5 for its
Software business and ISO 9001:2000 for its Infrastructure Services and
Business Process Outsourcing (BPO) operations.
The Company's Global Delivery Model provides for the best resources to be
drawn from its vast talent pool across the globe to offer optimal
solutions.
Their list of customers worldwide includes Prudential Assurance, Finansa,
AIG, Emirates Bank, RAK Bank, Hong Leong Bank, SBI Factors, Oriental Insurance
Company Limited, The National Health Insurance Fund, Solidarity Islamic
Insurance & Assurance
3i Infotech integrates its products and services to create customized
solutions to allow you to undertake technology-based business transformation
that allows reorganization in line with today's dynamic digital business
environment.
In April 2005, the company has entered into capital market, the company
has issued 2,00,00,000 Equity shares of Rs.10/-each to the public. Issue price
is Rs.100/- per Equity Share.
In 2007, The company has acquired Datacons Pvt Ltd (a Bangalore based
Software products company for the Mutual Fund Sector), Stex Software Pvt Ltd (a
Software Solutions company offering document imaging and workflow management
solutions), acquired majority stake in Delta Services (India) Pvt Ltd. (a
business process outsourcing and IT enabled services company) and e-enable
Technologies Pvt Ltd.(a company offering business intelligence and data
warehousing services). Apart from domestic acquisitions, the company has
ventured overseas to acquire Rhyme Systems Holdings Ltd., (Rhyme) a
Director’s Report:
FINANCIAL
HIGHLIGHTS:
Consolidated financials of the
Company and its subsidiaries:
The Company recorded a significant growth in its consolidated performance. The
total income grew to Rs. 6707.72 million registering a growth of 58.2% over the
previous year's revenue of Rs. 4240.47 million. The gross margins moved from
43.7% of revenue in the previous year to 46.3 % of revenue in the current year.
The Earnings before Depreciation, Interest and Tenons, (EBDIT) improved by
89.12% to his. 1739.85 million in the current year compared to Rs. 919.97
million in the previous year Consequently, EBDIT margins moved from 20.5% of
revenue in the previous year to 24.2 % of revenue in the current year. The
Company has posted a consolidated profit after tax of Rs. 1044.84 million
(before exceptional item) for the current year whereas it was Rs. 576.64
million in the previous year, thereby recording a growth of 81 % profit after
tax. Basic Earning Per Share (after exceptional item) for the year has grown to
Rs. 17.98 per share, whereas it was Rs. 9.51 in the previous year. The brief
financial highlights are as given below:
Rupees in Million year ended Year ended March 31, March 31, 2007
2006
Total Income 6707.72 4240.47Profit / (Loss) before taxation 1098.29
579.66Provision for taxation (Current and Deferred) 53.45 3.02Profit/ (Loss)
after taxation and before exceptional item 1044.84 576.64Exceptional item
120.06 -Profit after exceptional item 1164.90 576.64 Less provisions for
contingency (120.06) -Profit after provision for contingency 1044.84
576.64Earnings Per Share (Basic in Rs.) (After exceptional item) 17.98
9.51
Financials of
the Company on a standalone basis:
The Profit & Loss Account of the Company on stand alone basis shows a
profit after taxation of Rs. 494.39 million. The disposable profit is Rs.912.26
million, taking into account the balance of Rs.269.62 million brought forward
from the previous year, subject to adjustments pertaining to that year. It was
decided to transfer Rs. 49.44 million to the reserves, out of the current
profit. The brief financial highlights are as given below:
Rupee in Million year ended year
ended March 31, March 31, 2007 2006
Total Income 3479.08 2819.36Profit before tax 510.47 410.03Provision for
taxation (Current and Deferred) 16.08 17.90Profit after tax and before
exceptional item 494.39 392.13Exceptional item 268.59 -Promise for contingency
(120.06) -Profit after exceptional item and contingency 642.92 392.13March
brought forward from Previous year 269.62 187.89Disposable profit 912.26
519.39Transfer to reserves 49.44 30.00Profit available for distribution 862.82
489.39Earning Per Share (Basic in Rupees) 10.63 5.99
TRANSFER
TO RESERVE:
The Company proposes to transfer Rs. 49.44 million to the General
Reserve. An amount of Rs. 592.81 million is proposed to retained in the profit
and loss account.
BUSINESS OVERVIEW:
The Company continues to focus an technology related to the Banking and
Financial Services Industry (BFSI) segment. The Company has its Intellectual
Property Rights (IPR) driven solutions for Banking, Insurance, Mutual Fund and
Capital Markets. The Company also provides Business Process Outsourcing (BPO),
Managed Services, Technology Services, Workflow and Document Imaging, Business
Intelligence and Data Warehousing Services.
The Company has achieved leadership in retail lending solutions,
factoring solutions, end to end offerings in claim processing and Life
Insurance Solutions in
The Company has its presence world wide, with its offices across 10
countries and clients spread in more than 50 countries. The range of services
and wide geographical reach has enabled the Company to become a formidable
player in the global IT field.
The Company has demonstrated entrepreneurial capabilities by achieving 30%
organic growth in the past three years by growing from a revenue of Rs.2346
million in 2002-03 to Rs. 6707.72 million in 2006-07.
a. Inorganic Growth:
To complement and strengthen its product and services offerings and to
meet customer expectations worldwide, the Company continued its acquisitive
growth strategy during the current year. The acquisitive strategy has further
enhanced the strength of the Company. With acquisition in various geographies,
the Company has further consolidated its position as a strong BFSI player in
various geographies.
During the year, the Company acquired Datacons Private Limited (a Bangalore
based software products company for the mutual funds sector), Stex Software
Private Limited (a Software solutions company offering document imaging and
workflow management solutions/, acquired majority stake in Delta Services (India)
Pvt. Ltd. (a business process outsourcing and IT-enabled services company) and
e-enable Technologies Pvt. Ltd. (a company offering business intelligence and
data warehousing services).
Apart from domestic acquisitions, the Company ventured overseas to acquire
Rhyme Systems Holdings Ltd., (Rhyme) a
Having successfully acquired companies and integrated them well, the
Company is well poised for fast track growth. The Company would continue to
explore proposals for acquisitions which would help meet the market demands and
grow its business by meeting gaps in products and solutions offered by the
Company and expanding its reach across geographies
SUBSIDIARY
COMPANIES:
To drive its business globally, the Company has its subsidiaries across various
geographies, which are 3i Infotech Holdings Private Limited, 3i Infotech Inc.,
3i Infotech Consulting Inc., 3i Infotech Investment Services Inc., 3i Infotech
Insurance Solutions Inc., 3i Infotech Factoring Solutions Inc., 3i Infotech
Enterprise Solutions Inc., 3i Infotech Pte. Limited, 31 Infotech SON BHD, 3i
Infotech (Thailand) Limited, Datacons Asia Pacific SON BHD, 1 Infotech (UK)
Limited, Rhyme Systems Holdings Limited, Rhyme Systems Group Limited, Rhyme
Systems Limited, Rhymesis Limited, 3i lnfotech Saudi Arabia LLC, SDG Software
Technologies Limited, SDG Software Technologies Pte. Ltd., Datacons Private
Limited, 3i Infotech Trusteeship Services Limited, Delta Services (India) heads
Limited, Ste, Software Private Limited, Whizinfo Technologies Inc. and e-enable
Technologies Private Limited. Except e-enable Technologies Private Limited and
Delta Services (
As per section 212 of the Companies Act, 1956, your Company is required
to attach the Directors' Report, Balance Sheet and Profit and Loss Account of
the subsidiaries to its Balance Sheet. Your Directors believe that the audited
consolidated accounts, present a full and fair picture of the state of affairs
and financial conditions of the Company and its subsidiaries, as is done globally.
'he Company has obtained an exemption from the Central Government with respect
to the requirement of attaching the Director, Report, Balance Sheet, and Profit
and Loss Account of the subsidiaries to its Balance Sheet vide letter reference
no. 17.7112007-CL-III dated March 6, 2007. Accordingly, the Annual Report of
your Company does not contain separate financial statements of these
subsidiaries, but contains audited consolidated financial statements of the
Company and its subsidiaries.
However, a statement of the Company's interest in the
subsidiaries and a summary of the financials of the subsidiaries is given Al
the consolidated accounts. The annual accounts of the subsidiaries, along with
the related information, would be made available to the Members seeking such
information at any point of time. The annual accounts of the subsidiaries are
also available for inspection during business hours at the Registered Office of
the Company and its respective subsidiaries.
FUTURE OUTLOOK:
As per the Economic Intelligence Unit Foresight 2020, the world economy
would be two-thirds bigger in 2020. The Global GDP would grow at an average
annual rate of 3.5% . US would maintain one of the fastest growth rates in the
industrialized world at a growth rate of 3%. Propelled by fast growth in
The above growth in developed as well as developing markets provides for
significant future growth opportunities for the Company.
UTILISATION
OF THE PROCEEDS OF IPO:
In the Annual Report 2005-06, the Directors had reported that out of
Rs.2,176.68 million raised by the Company through its initial Public Offering
(IPO) of its equity shares, a balance of Rs. 26.30 million was lying
unutilised. Subsequently, the balance amount has been fully utilised and no
amount is lying unutilised as on March 31, 2007.
QUALITY:
The Directors are pleased to report that the Company is continuing on its path
of continuous process improvement. The Company has successfully migrated to the
CMMi model of SEI and has achieved Level 5, the highest level for the model.
This migration strengthens the Company's delivery capabilities, ensuring
delivery of high quality products and services to its clients. This also
enables the Company to strengthen its position in the global markets. As you
are aware, the Company already has ISO 9001:2000accreditation for all its
non-software businesses.
AWARDS AND ACCOLADES:
The efforts of the Company were appreciated globally and as a result, the
Company has won several awards and accolades during the previous year. For the
year 2005-06, the Company was adjudged the 4th largest Indian Software Product
Company and the Fastest growing Indian Software Product Company with respect to
both domestic and overseas Software Product sale as per the survey by
Dataquest. The Company has won the Frost & Sullivan Product Innovation
Insurance Software Awards 2006 in an event held in
DIRECTORS:
During the year under review, the Board had appointed Prof. Dr. Ashok
Jhunjhunwala as an Additional Director, whose term comes to an end at the
ensuing Annual General Meeting. Dr. Jhunjhunwala is a Professor at the
Department of Electrical Engineering, Indian
It was felt that his in-depth IT knowledge and rich experience would
enable the Company in its growth. The Company has received vice from a Member
under Section 257 of the Companies Act, 1956, recommending his appointment as a
Director of the Company. The Board recommends his appointment as a Director
liable to retire by rotation.
In terms of the provisions of the Articles of Association of the Company,
Dr. Bruce Kogut and Mr. S. Santhanakrishnan are due to retaire by rotation al
the forthcoming 14th Annual General Meeting of the Company and being eligible,
offer themselves for re-appointment.
Appointment of Mr. Hariharan Padmanabhan as Deputy Managing
Director for a tenure of three years w.e.f. April 1, 2006, was approved by the
Members and the Central Government on July 20, 2006 and December 8, 2006
respectively.
The Directors appointed Mr. Amer Chintopanth as the Executive Director
& Chief Financial Officer for a period of five years with effect from
January 17, 2007, subject to the approval of the Members of the Company. The
Members have approved his appointment vide Postal Ballot dated March 7,
2007.
RESULTS OF OPERATIONS:
An
overview of the Company's consolidated performance over last two years is
summarized below:
Rupees in million For the year For the year ended ended
March 31, 2007 March 31, 2006
IncomeIncome from operations 6,553.17 4,178.14Other Income 154.55
62.33Total Income 6,707.72 4,240.47ExpenditureCost of revenues 3,521.75
2,350.90Gross Profit 3,185.97 1,889.57Gross profit margins- on Operating Income
46.3% 43.7%Selling general 9 administrative expenses 1.446.12 969.60Profit
before Interest, depreciation & taxes 1,739.85 919.97Operating margins- on
Operating Income. 24.2% 20.5%Software Development cost* 263.73 -Interest 208.99
79.78Depreciation 168.84 260.53Profit before tax 1,098.29 579.66Taxation 53.45
3.02Profit after tax 1,044.84 576.64Minority Interest 7.36 2.27Net Profit after
Minority Interest 1,037.48 574.37
* We started writing off the Software Development costs, which till
FY2006 used to be capitalized.
Revenues:
In FY2007 the total revenue was Rs. 6,708 million, an
increase of 58.2% over the previous year's revenues of Rs. 4,240 million. Over
the years the Company has pursued a sales strategy aimed at a healthy mix
between products and services, a balanced distribution among various
geographies and offering a range of products to bring in predictability in the
business model. This strategy has been executed by an aggressive sales force
across the geographies, complemented by a partner network.
In the last seven years the revenues have grown at a CAGR of
48.7% from Rs.417 million in FY2000 to Re. 6,708 million in Fy2007.
Revenue Mix:
Offering - wise:
The Company derives its revenue from sale of software
products and services. This year also we witnessed a balanced growth between
products and services businesses.
Services (including other income) clocked sales of Rs. 3,389 million, an
increase of 48% over the previous year's services revenues of Rs. 2,289
million. Software products contributed Rs. 3,319 million in Fy2007, a 70%
increase over previous year's revenues of Rs. 1,952 million. The growth in
products was widespread in all products and across geographies. Mutual Fund
products, which were added to their suite of products in this year, also
witnessed good growth.
In the last five years we have de-risked their business model by reducing
their dependency on services business from 94 % to the current 4900. This
de-risking has been made possible by working towards the strategy of having a
50:50 mix between products and services.
Revenue Mix (%):
Year Percentage Product ServicesFY02 6 94FY03 15 85FY04 32 68FY05 45
55FY06 47 53FY07 51 49
Not only was the revenue growth in 2006-07 broad based and well distributed
between products and services but even within the products suite with all the
products registered a good growth. The year also witnessed further broad basing
of product revenues with the addition of new product offerings for Capital
Markets (these consist of products for the Broker community, Mutual Funds and
Private Wealth Managers).
Break Up of Product Revenues - FY2007
Particular Percentage
ERP 18%BFSI 82%
Break Up of Product Revenues - FY2006
Particular Percentage
ERP 29%BFSI 71%
Geography-wise:
Overall the geographical operating revenue mix in 2006-07
was broad based and well distributed with
Geographywise Revenue Break Mix (%)
PercentageParticular FY02 FY03 FY04 FY05 FY06 FY07
Cost of Revenues:
Cost of revenues represents the direct cost for each of the
business segments, the major components being payments and provisions for
employees, staff welfare expenses and outsourcing expenses. Cost of revenues as
a percentage of operating revenues has declined over the last couple of years
from 63.1 % in FY2004 to 53.7 % in FY2007. This resulted in gross margins improving
year on year from 36.9 % in FY2004 to 46.3 % in FY2007. This happened due to
improvement in the gross margins in both the business segments: products and
services. Gross margins in the products business improved from 45.8% in FY2004
to 84.30o m FY2007. The gross margins in the services business segment improved
from 32.8% to 38.0% in FY2007. The year on year improvement in margins reflect
the growing brand visibility of 3i Infotech and the increased acceptance level
of its offerings
Gross Margin Trend:
Year Percentage
FY04 36.9%FY05 42.8%FY06 43.7%FY07 46.3%
Selling, General and Administrative (SGA) Expenses:
Selling, General and Administrative Expenses primarily consist of payroll
costs of the sales, marketing and other support service personnel,
advertisement, brand building, provision for doubtful debts, repairs and
maintenance, rent, communication costs, travelling expenses, legal and
professional expenses, office expenses and other miscellaneous expenses.
The selling, general and administrative expenses have declined as a
percentage of operating revenues from 30.8% in FY2004 to 22.1% in FY2007. The
main reason for this improvement has been the good sales growth coupled with
the improvement in average deal size across all the products. Their partner
sales strategy has been another reason for keeping the SGA expenses under
control, whereby the Company is able to sell in multiple geographies without
having a direct local presence in those geographies, thereby moving on a model
of variable costs rather than fixed costs, as partner compensation is
invariably on a ales success fee basis.
Earnings before Interest, Tax,
Depreciation and Amortization (Operating Profit or EBITDA):
EBITDA is defined as operating profit before interest, depreciation, and taxes.
EBITDA is a widely accepted valuation indicator for companies in the
Information Technology industry. EBITDA should not be considered in isolation
or a substitute for measures for financial performance or liquidity. EBITDA may
not be comparable to calculations of similarly titled measures presented by
other companies.
The Company earned an operating profit (profit before interest,
depreciation, amortization, tax and other income) of Rs. 1,585 million in FY2007
against Rs. 858 million in FY2006, representing operating margins of 24.2%
during the current year, as compared to 20.5% for the previous year.
In the last three years the operating margins have increased from 6.1% in
FY2004 to 24.2% in FY2007. This increase of 18.1 percentage points between
FY2004 and FY2007 is due to decrease in the cost of revenue by 9.4 percentage
points and decrease in the SGA expenses by 8.7 percentage points.
Operating Margin Trends:
Year Percentage
FY04 6.10%FY05 16.60%FY06 20.50%FY07 24.20%
Interest, Depreciation and Amortization
The interest cost has increased from Rs. 80 million in FY2006 to Rs. 209
million during the year. The increase in the interest costs has been due to
increase in the debt during the year and also due to the rise in the rate of
interest. The total outstanding dent rose to Rs. 3,829 million (excluding FCC13
of Re. 2,646 million) in FY2007 as compared to the debt position of Re. 1.119
million (excluding FCCB of Rs. 2,231 million) at the end of FY2006. Of this
increase, Rs. 729 million pertains to the debt of Rhyme Systems, the Company we
acquired during the year. Rest of the increase in debt was to fund acquisition,
product development and to meet working capital requirements.
The Company has provided Rs.169 million towards depreciation / amortization for
FY2007 as against Rs. 261 million in FY2006. In FY2006-07 the Company changed
its accounting policy in respect of Software development costs. Earlier these
were capitalized and depreciated over a period of 10 years, which now are
expensed off. This, in effect, has reduced the depreciation.
Provision for Taxes:
The Indian corporate tax rate for FY2007 was 33.66 % (comprising a base rate of
30 % and a surcharge of 10 0 on the base rate and Education Cess of 2 % on the
base rate plus surcharge. Export profits from
With respect to the operations of the Company in the
LIQUIDITY AND CAPITAL
RESOURCES:
The cash and cash equivalents as on March 31, 2007 were Rs. 974 million as
against Rs. 2,604 million on March 31, 2006 /including Rs. 2,187 million raised
through FCCB). Cash and cash equivalents include cash, deposits with banks and
liquid investments due on demand or maturing within three months. The reduction
in the Cash in FY2007 is largely due to utilization of cash for acquisitions.
The current ratio, defined as current assets over current liabilities excluding
bank borrowings as on March 31, 2007 was 2.8 as against 4.3 as on March 31,
2006. The reduction in the Current Ratio in FY2007 is largely due to
utilization of cash for acquisitions.
Their Debt (including preference capital) to Equity ratio for the year stands
ate comfortable 1.89. The reaffirming of P7 rating on the commercial paper of
the Company by CRISIL, post the recent FCCB offering of EURO 30 million,
reflects the sound financial position of the Company.
Their Days Sales Outstanding (DSO) in the last quarter of FY2007 was 81
days as compared to 85 days in the last quarter of FY2006.
Press Release:
Buhaleeba Group Selects 3i Infotech’s ORION ERP System
Integrated ERP System to Boost and
Unify Conglomerate’s Business Processes
Dubai
- June 27, 2007 - Buhaleeba Group (BHG), the well-known
business house of UAE, has selected global IT solutions and services provider,
3i Infotech, to implement ORION – an integrated ERP - across its business
units.
BHG will deploy 3i Infotech’s ORION to streamline and integrate its back-office business processes including accounting, inventory, purchasing, human resources and payroll, with customer-related functions such as sales and field service, throughout its diverse business units comprising construction, electromechanical services, real estate, automobile services, wood working, joinery and others.
Commenting on the tie-up, Mutasem Ahmad, Group Finance
Manager, BHG, said, “We have started the processes of streamlining and
centralizing our business procedures to maintain our competitive market edge. For
that purpose, we have an ambitious plan to upgrade our ITC infrastructure and
business environment using the latest technology and applying the best
practices in the industry today.”
“This is in line with the vision of our
group chairman Abdullah Buhaleeba and our management plans to be one of the
UAE’s leading business groups,” added Ahmad.
With more than 15 business units and over
4,000 employees, BHG aims to increase the work efficiency across all operations
in the group and provide quality products and services to its valued customers.
“The new ERP system will ensure automation of transactions
and provide real-time and accurate data analysis which is vital for our
business success and growth. We have selected 3i Infotech’s ORION for this
project because of its integrated nature and its ability to automate all our
business processes across the group,” said Abdullah Buhaleeba.
“Regional economies are currently
experiencing robust growth and local conglomerates such as the Buhaleeba Group
have been quick to realize the importance of process integration capabilities,
and how this impacts overall business development,” said Hari Padmanabhan,
Deputy Managing Director, 3i Infotech.
"ORION is ideally placed to complement
BHG's business ambitions and will help ensure the company meets its operational
objectives," Padmanabhan added.
ORION’s extensive analysis reports are customized decision
support tools that will help streamline BHG’s business.
“We are confident
ORION’s scalable platform coupled with our domain expertise and powerful localized
service capabilities will act as the technology backbone to help BHG seamlessly
manage their diverse businesses,” said Ashish Dass, VP & Business Head
-Enterprise Solutions, 3i Infotech (EMEA).
About 3i Infotech Limited
3i Infotech provides a range of Information Technology
solutions for Insurance, Banking & Finance, Capital Market, Mutual Funds,
e-Governance, manufacturing, retail and distribution. The company is SEI CMMI
Level 5-compliant for its Software Business and ISO 9001:2000-certified for its
IT Infrastructure Services and Business Process Outsourcing Operations.
Using its domain knowledge and through continuous investment
in technologies, 3i Infotech Limited helps corporations in their businesses
through its expertise in enterprise-class software solutions, software
services, information security consulting, IT infrastructure and disaster
recovery solutions. 3i Infotech has a presence across 5 continents and serves
customers in 50 countries.
For almost two decades, 3i Infotech has been serving the
Middle East and
About Buhaleeba Group
Buhaleeba Group is one of
The following
companies are part of Buhaleeba Group:
Buhaleeba Contracting: BHC the group's flagship venture, has
earned an unmatched reputation for creating high quality prestigious engineering
projects such as multistory buildings, classy hotels and elegant commercial and
residential complexes. The company has carved a niche for itself in the
contracting business through its years of operation in the local market
carrying out most important projects like
Buhaleeba Real Estate: BHR the group real estate specializes in property
management and leasing of commercial and residential properties equipped with
modern facilities providing tenants a remarkable & unique experience. BHR
has distinctive signs in construction and investment sectors, which reflects
the spirit of modern architecture and high deluxe finishing. The company sticks
to the high standard of performance and execution.
Buhaleeba Electro Mechanical Services: Buhaleeba Electro Mechanical Services is
a recently established contracting company actively catering to the ever
growing demands of the UAE market segments which cover all types of projects,
viz. Hospitals, spacious hotels, shopping malls, major residential complexes,
military installations and private commercial / residential buildings.
Buhaleeba Electro Mechanical Services cover HVAC, Plumbing, Electrical, Fire
Protection and Fire Alarm Systems.
Grand Service Station: Grand Service Station is one of
Emirates Décor: Specializing in the field of interior decoration and furniture
manufacturing,
Emirates
Décor has an extensive experience in all aspects of Quality and Innovative
decorative work. It has a pool of internationally qualified and trained
professionals to provide design expertise for homes, offices, showrooms,
restaurants, etc.
For more information, please contact:
M.B. Battliwala
Senior General Manager
3i Infotech Limited
Akruti Centre Point, 6th Floor,
M.I.D.C Central Road,
Next to Marol Telephone Exchange,
Andheri (East), Mumbai - 400 093
INDIA.
Tel: + 91.22-39145560
Fax: +91.22-39145520
Email: corporate@3i-infotech.com
Disclaimer
Except for the historical
information contained herein, statements in this release, which contain words
or phrases such as "will", "would", "expect",
"believe", and similar expressions or variations of such expressions
may constitute "forward-looking statements". These forward-looking
statements involve a number of risks, uncertainties and other factors that
could cause actual results to differ materially from those suggested by the
forward-looking statements. These risks and uncertainties include, but are not
limited to, the performance of the Indian economy and of the economies of our
principal international markets, the performance of the industry sectors in
which our clients are based, the performance of the information technology
industry sector world-wide, competition, our ability to obtain statutory and
regulatory approvals and to successfully implement our strategy, future levels
of our growth and expansion in business, technological implementation, changes,
advancements, and redundancies, the actual demand for software products and
services, or the future potential or feasibility thereof, changes in revenue,
income or cash flows, our market preferences and our exposure to market risks,
as well as other risks. 3i Infotech undertakes no obligation to update
forward-looking statements to reflect events or circumstances after the date
thereof.
3i Infotech's revenue grows to Rs 264.2 crores and profit to Rs 40.3
crores in first quarter of fiscal 2008
Mumbai - July 25, 2007 - 3i Infotech, a
global provider of IT solutions and one of
FINANCIAL HIGHLIGHTS
Consolidated results for the quarter ended June 30, 2007:
Revenue for the quarter was Rs. 264.2 crores, a growth of 98.3% over the
corresponding quarter of the previous year.
Profit before depreciation, Interest and Tax (including other income)
for the quarter was Rs. 66.3 crores, a growth of 94.5% over the corresponding
quarter of the previous year.
Profit after tax for the quarter was Rs. 40.3 crores, a growth of 88.9%
over the corresponding quarter of the previous year.
Earnings per share (EPS) increased to Rs. 6.41
from Rs. 3.68 in the same quarter of the previous year.
Commenting on the results, Mr. V.
Srinivasan, Managing Director & CEO, 3i Infotech Limited, said, “Our
strategy of aggressive organic growth complemented by strategic acquisitions is
paying rich dividends by creating a fundamentally strong business model”.
BUSINESS HIGHLIGHTS
During the Quarter, 3i Infotech:
Acquired 50.5% stake in aok In-house BPO Services Limited and aok
In-house Factoring Services Private Limited. These companies were acquired for
their delivery capabilities in the area of credit cards and auto loans
processing for the banking sector and claims processing in the insurance sector
Launched a new global development center in Chennai which will focus on
the enhancement and development of the company’s flagship insurance solution
PREMIA, the KASTLE line of banking solutions and ORION ERP solution, as well as
support the company’s growth in these areas
Was adjudged the winner of Top Contributor in Financial Services &
Insurance (FSI) Sector Award from Oracle for Independent Software Vendor (ISV)
– 2006
Received the ‘Best Software Product` award from the Hyderabad Software
Exporters Association (HYSEA) for its Anti-Money Laundering (AML) and Fraud
Detection software – AMLOCK™
The Board of Directors has accepted the
resignation of Ms. Madhabi Puri Buch with effect from June 1, 2007. The vacancy
caused by her resignation has been filled by the Board by appointing Ms.
Vishakha Mulye as a Director pursuant to Section 262 of the Companies Act,
1956.
About 3i Infotech Limited
3i Infotech is one of the top 4 Indian Software Products
Companies.* The company provides software products and IT services (Managed IT
Services, Application Software Development & Maintenance, Payment Services,
Business Intelligence, IT Consulting, BPO, Document Imaging & Digitization
and Data Warehousing) for the Insurance, Banking, Capital Markets, Mutual Funds
and Government verticals. The company services customers in over 50 countries
across 5 continents.
3i Infotech is SEI CMMI Level 5 compliant for its Software
services and ISO 9001:2000 certified for its IT Infrastructure and BPO
services.
* Dataquest July 2006 issue
Disclaimer
Except for the historical
information contained herein, statements in this release, which contain words
or phrases such as "will", "would", "expect",
"believe", and similar expressions or variations of such expressions
may constitute "forward-looking statements". These forward-looking
statements involve a number of risks, uncertainties and other factors that
could cause actual results to differ materially from those suggested by the
forward-looking statements. These risks and uncertainties include, but are not
limited to, the performance of the Indian economy and of the economies of our
principal international markets, the performance of the industry sectors in
which our clients are based, the performance of the information technology
industry sector world-wide, competition, our ability to obtain statutory and
regulatory approvals and to successfully implement our strategy, future levels
of our growth and expansion in business, technological implementation, changes,
advancements, and redundancies, the actual demand for software products and
services, or the future potential or feasibility thereof, changes in revenue,
income or cash flows, our market preferences and our exposure to market risks,
as well as other risks. 3i Infotech undertakes no obligation to update
forward-looking statements to reflect events or circumstances after the date
thereof.
Website Details:
Profile
Subject is a global Information Technology company which
provides technology solutions to over 500 customers in more than 45 countries
across 5 continents, spanning a range of verticals - Banking, Insurance, Manufacturing,
Contracting, Retail & Distribution and Government.
Subject offers a comprehensive range of software and IT
solutions, including packaged applications for the Banking, Financial Services
& Insurance (BFSI), Manufacturing, Contracting, and Retail &
Distribution industries. In addition, it offers a broad range of software
services such as Custom Software Development, IT Consulting, IS and IT Security
Consulting, Enterprise Application Integration (EAI), and specialized services
such as Product Re-engineering, Compliance Consultancy, Application
Rehabilitation and e-Governance, among others.
The Company's quality certifications include SEI CMMI Level
5 for its Software business and ISO 9001:2000 for its Infrastructure Services
and Business Process Outsourcing (BPO) operations.
The Company's Global Delivery Model provides for the best
resources to be drawn from its vast talent pool across the globe to offer
optimal solutions.
Their list of customers worldwide includes Prudential
Assurance, Finansa, AIG, Emirates Bank, RAK Bank, Hong Leong Bank, SBI Factors,
Oriental Insurance Company Limited, The National Health Insurance Fund,
Solidarity Islamic Insurance & Assurance
The Company was promoted by the NYSE-listed ICICI Bank,
Subject integrates its products and services to create
customized solutions to allow you to undertake technology-based business
transformation that allows reorganization in line with today's dynamic digital
business environment.
The Company offers the following range of enterprise
services and solutions to meet varying customer requirements:
Solutions
v
Insurance
v
Banking
v
Capital Market
v
Mutual Funds
v
v
E-Governance
Products
Premia – Insurance Mangagement
Kastle –Secure Banking Solutions
AMLOCK – Anti Money Laundering and Fraud Detection
iBOSS – Integrated Broker Office Solutions Suite
AWACS – Stock Exchange Surveillance
MFund – Mutual Funds
Orion –
XroadZ –
Veda – Recruitment Automation Solution
Data Scan Online – Document Content Management System
Services
v
Managed IT Services
v
IT Outsourcing
v
Custom Software Development
v
Product Re-engineering
v
Application Rehabilitation
v
Compliance Consulting
v
Packaged Application Implementation
v
v
E-Governance
v
Business Process Outsourcing
v
R&T and Fund Accounting
v
Data Warehousing and Business
Intelligence
They cater to customers though their global locations:
Europe, Middle East and
Customers
Subject builds enduring relationships with its customers.
They serve over 500 customers across the globe, which demonstrates their
capabilities and quality of their products and services.
Some of their customers include:
v
Hong Leong Bank
v
Deutche Bank
v
GSK
v
v
Prudential
v
Al Ansari
v
ICICI Bank
v
ICICI
v
IDBI Bank
v
Pidilite
v
National Starch and Chemical
v
Pioneer
v
Polymers
v
AIG
v
Standard Chartered
v
HP Invent
Partners
They combine products/technologies from global technology
leaders and combine them with their best-of-breed professional services to
create and rapidly deploy customized solutions for the unique requirements.
They have forged strategic partnerships with global industry-leading
organizations.
v
Symantec
v
Hp Invent
v
Redhat
v
Oracle
v
IBM
v
Cisco
v
Juniper
v
Microsoft
v
Nexus
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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.40.67 |
|
|
1 |
Rs.82.12 |
|
Euro |
1 |
Rs.55.60 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
|
69 |
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 |
|