MIRA
INFORM REPORT
|
Report Date : |
05.12.2007 |
IDENTIFICATION
DETAILS
|
Name : |
TATA CONSULTANCY SERVICES LIMITED |
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Registered Office : |
Bombay House, 1st Floor,24
Homi Mody Street, Mumbai – 400 001, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
09.01.1995 |
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Com. Reg. No.: |
11-84781 |
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CIN No.: [Company
Identification No.] |
L22210MH1995PLC084781 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMT00681C / MUMT11446B |
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PAN No.: [Permanent
Account No.] |
AAACR4849R |
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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 : |
IT Services and Software Development |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 322359600 |
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Status : |
Excellent |
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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 excellent
track. It is a part of Tata group, country’s premier industrial house. Fundamentals
are strong and healthy. Payments are always correct and as per commitments. The company can be considered good for any normal business dealings. It can be regarded as a promising business partner in medium to long
run. |
LOCATIONS
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Registered Office : |
Bombay House, 1st Floor,24
Homi Mody Street, Mumbai – 400 001, Maharashtra, India |
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Tel. No.: |
91-22-56658282 |
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Fax No.: |
91-22-56658080 |
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E-Mail : |
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Website : |
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Corporate Office : |
11th Floor, Air India Building, Nariman Point, Mumbai – 400
021, Maharashtra |
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Tel. No.: |
91-22-67509999 / 67509356 |
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Fax No.: |
91-22-67509344 / 66303672 |
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E-Mail : |
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Area : |
http://www.tcs.com |
DIRECTORS
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Name : |
Mr. S Ramadorai |
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Designation : |
Managing Director |
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Name : |
Mr. Aman Mehta |
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Designation : |
Director |
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Date of Birth/Age : |
01.09.1946 |
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Qualification : |
Bachelors degree in Economics from Delhi University |
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Experience : |
Wide experience in Banking and finance |
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Date of Appointment : |
06.05.2004 |
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Directorship held in other Public Companies (excluding foreign
companies) : |
· Wockhardt Pharmaceuticals Limited · Jet Airways Limited · Max Healthcare Institute Limited · Godrej Consumer · Products limited · Cairn India limited |
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Name : |
Mr. Naresh Chandra |
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Designation : |
Director |
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Date of Birth/Age : |
01.08.1934 |
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Qualification : |
Master of Science in Mathematics from Allahabad University and a
retired IAS officer |
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Experience : |
Retired senior bureaucrat in the government of India |
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Date of Appointment : |
19.08.2004 |
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Name : |
Mr. V Thyagarajan |
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Designation : |
Director |
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Name : |
Mr. Clayton M Christensen |
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Designation : |
Director |
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Name : |
Mr. Ron Sommer |
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Designation : |
Director |
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Date of Birth/Age : |
05.09.2006 |
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Qualification : |
Ph .D in mathematics |
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Experience : |
Wide experience in telecom and Business |
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Date of Appointment : |
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Name : |
Mr. Laura Cha |
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Designation : |
Director |
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Date of Birth/Age : |
05.12.1949 |
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Qualification : |
B A JD (Juris Doctor i.e, doctor of law) |
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Experience : |
Wide experience in Law, Banking and securities markets. |
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Date of Appointment : |
02.11.2006 |
KEY EXECUTIVES
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Name : |
Mr. R N Tata |
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Designation : |
Chairman |
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Name : |
Mr. S H Rajadhyaksha |
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Designation : |
Company secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 30.09.2007:-
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Shareholding of promoter and promoter group2 |
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Bodies corporate |
754137120 |
77.06% |
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Trust |
27199300 |
2.78% |
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Public
shareholding3 |
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Mutual Funds / UTI |
15429016 |
1.58% |
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Financial Institutions / Banks |
1361033 |
0.14% |
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Central Government / state Government |
270 |
---- |
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Insurance companies |
35750081 |
3.65% |
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Foreign Institutional Investors |
79317254 |
8.11% |
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Non
Institutions: |
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Bodies corporate |
8422269 |
0.86% |
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Individual shareholder holding nominal
share capital upto Rs. 0.100 millions |
48079311 |
4.91% |
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Individual shareholder holding nominal
share capital excess of Rs. 0.100
millions |
6878858 |
0.70% |
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Any
others |
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Overseas Corporate Bodies |
1714 |
---- |
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Trust |
20307 |
---- |
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Clearing Member / House |
2016965 |
0.21% |
BUSINESS DETAILS
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Line of Business : |
IT Services and Software Development |
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Products : |
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PRODUCTION STATUS
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Particulars |
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Installed
Capacity |
Actual
Production |
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Documents processing systems |
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2000 |
584 |
GENERAL
INFORMATION
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No. of Employees : |
18000 |
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Bankers : |
v Standard Chartered Grindlays Bank Limited v Citibank N.A. v The National Bank of Bahrain v ABN Amro, U.S.A. v Credit Suisse, Switzerland v Bank Tejarat, Iran v Nepal Arab Bank Limited, Nepal v ABN Amro, Malaysia v UNI Bank, Denmark v CIBC Bank, Canada v DBS, Singapore |
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Facilities : |
Note: Bank overdraft is secured against domestic book debts.
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
S B Billimoria and Company Chartered Accountants |
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Address : |
12 Dr. Annie Besant Road, Opposite Shiv Sagar Estate, Worli Mumbai – 400018, Maharashtra |
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Tel. No.: |
91-22-56679000 |
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Fax No.: |
91-22-56679025 |
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E-Mail : |
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Holding Company: |
· Sitel India Limited · Tata Sons Limited |
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Associates/Subsidiaries : |
· The Tata Engineering and Locomotive Company Limited · Tata Infomedia Limited · Tata Investment Corporation Limited · The Tata Iron and Steel Company Limited · Tata Power Company Limited · Trent Limited · Tata AIG Risk Management Services Limited · Tata TD Waterhouse Asset Management Private Limited · Tata Trustee Company Limited · Tata Industries Limited · Associated Building Company Limited · Tata International Limited · Niskalp Investment and Trading Company Limited · Videsh Sanchar Nigam Limited · Voltas Limited · Technopolis Knowledge Park Limited · Rentbazaar (India) Limited · Tata Consultancy Services, Belgium SA · Tata Consultancy Services, Deutschland GmbH · Tata Consultancy Services, Netherlands BV · Tata Consultancy Services, Sverige AB · Tata Consultancy Services. France SA · Titan Marketing International Limited · Titan International Investments · TKM Overseas Transport Limited · TKM Overseas Transport Inc · TKM Overseas Transport (Europe) GmbH · TKM Logistic Pte Limited · Tata Consulting Engineers International AG · Tata Precision Industries (Pte) Limited · Airline Financial Support Services Limited · Aviation Software Development Consultancy India Limited · Conscripti (Pty) Limited · Engineering Analysis Centre of Excellence Private Limited · Intelenet Global Services Private Limited · CMC Limited · CMC Americas Inc. · Tata Housing Development Company Limited · Tata Information Technology (Shanghai) Company Limited · Tata Consultancy Services Japan Limited · Tata consultancy services Malaysia Sdn Bhd · Tata Consultancy Services (China) Company limited (W.e.f 16.11.2006) · PT Tata Consultancy Services Indonesia (w.e.f 05.10.2006) · TCS ·
TCS Solution Center S.A.,
Uruguay ·
TCS Argentina S.A. ·
Tata Consultancy Services
Do Brasil ·
Desenvolvimento De
Servicos Limited ·
(formerly TCS Brazil S/C
Limited) ·
Tata Consultancy Services
De Mexico S.A. De C.V. ·
TCS Inversiones Chile
Limiteda ·
Tata Consultancy Services
De Espana S.A. ·
Tata Consultancy Services
Do Brasil S.A. ·
Tata Consultancy Services
Chile S.A. ·
Tata Consultancy Services
BPO Chile, S.A. * ·
Comicrom S.A. * ·
Sisteco S.A. * ·
Tata Consultancy Services
Chile Limited * ·
Syscrom S.A. ·
Pentacrom S.A. ·
Pentacrom Servicios S.A. ·
Custodia De Documentos
Intres Limited ·
Tatasolution Center S.A.
(w.e.f. 28-12-2006) ·
Tata Consultancy Services
Portugal ·
Unipessoal Limited ·
Tata Consultancy Services
Netherlands B.V. ·
Tata Consultancy Services
Luxembourg S.A. ·
KS – Teknosoft S.A.
(w.e.f. 31-10-2006) ·
TKS Services S.A. (w.e.f.
31-10-2006) ·
Quartz Software
Technology S.A. (w.e.f. 31-10-2006) ·
TKS Banking Solutions
S.A. (w.e.f. 31-10-2006) ·
TKS Teknosoft (France)
SAS (w.e.f. 31-10-2006) ·
TCS Italia SRL ·
TCS FNS Pty Limited i)
Financial Network Services (Holdings) Pty ·
Limited ·
Financial Network
Services Pty Limited ·
Financial Network
Services (Facilities ·
Management) Pty Limited ·
Financial Network
Services Europe Plc ·
PT Financial Network
Services ·
Financial Network
Services (Africa) (Pty) Limited ·
Financial Network
Services (H.K.) Limited ·
Financial Network
Services Malaysia Sdn Bhd ·
TCS Management Pty
Limited (w.e.f. 08-11-2006) ·
Financial Network
Services (Beijing) Company Limited (w.e.f. 29-12-2006) ·
Chong Wan Investments Limited (Dissolved on 08-09-2006) ·
APONLINE Limited ·
Tata America
International Corporation ·
Tata Consultancy Services
Belgium S.A. ·
Tata Consultancy Services
Deutschland GmbH ·
Tata Consultancy Services
France SAS ·
WTI Advanced Technology
Limited ·
Tata Infotech Deutschland
GmBH ·
Tata Infotech (Singapore)
Pte Limited ·
Exegenix Canada Inc. ·
Diligenta Limited ·
C-Edge Technologies
Limited ·
MP Online Limited ·
Tata AIG General
Insurance Company Limited ·
Tata AIG Life Insurance Company Limited ·
TCE Consulting Engineers Limited ·
E2E Serwiz Solutions Limited ·
Tata Sky Limited (formerly Space TV
Limited) ·
THDC Limited (formerly Tata Housing
Development Company Limited) ·
Tata Teleservices Limited ·
Tata Teleservices (Maharashtra) Limited ·
Tata Internet Services Limited ·
Tata Limited, London ·
Ewart Investment Limited ·
Primal Investment and Finance Limited ·
Concept Marketing and Advertising
Limited ·
Tata International AG, ZUG ·
Tata AG., ZUG ·
Panatone Finvest Limited ·
Tata Asset Management Limited ·
Tata Petrodyne Limited ·
Wireless-TT Infoservices Limited ·
Infiniti Retail Limited (formerly Value
Electronics Limited) ·
Tata Asset Management
(Mauritius) Limited ·
Ewart Investment Private Limited
(Mauritius) (w.e.f. 30-08-2006) ·
Tata Pension Management Limited (w.e.f.
31-08-2006) ·
Computational Research Laboratories
Private Limited (w.e.f. 12-07-2006) ·
Tata Realty and Infrastructure Limited
(w.e.f. 02-03-2007) ·
Conscripti (Pty) Limited ·
Exegenix Research Inc. ·
Firstech Solution Company Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1200000000 |
Equity shares |
Rs. 1/- each |
Rs. 1200.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
978610498 |
Equity shares |
Rs. 1/- each |
Rs. 978.610
millions |
Notes:
a) Equity Shares
of Rs. 10 each have been sub-divided into ten equity shares of Re. 1 each
pursuant to the resolution passed by the shareholders at the Annual General
Meeting on May 5, 2004.
b) The Authorised Share
Capital was increased to 1200000000 equity shares of Re. 1 each pursuant to a
shareholders’ resolution passed at the Annual General Meeting on June 29, 2006.
c) The Company
allotted 91100009 equity shares as fully paid up bonus shares by capitalisation
of profits transferred from General Reserve, pursuant to a shareholders’
resolution passed at the Annual General Meeting on May 5, 2004.
d) The Company
allotted 489305249 equity shares as fully paid up bonus shares on July 31, 2006
by utilisation of Securities Premium Account.
e) 9190440 equity
shares of Re. 1 each had been allotted in 2005-06 as fully paid up to the
Shareholders of erstwhile Tata Infotech Limited pursuant to the Scheme of
Amalgamation
f) 758556921
(March 31, 2006: 389242225) equity shares are
held by Tata Sons Limited, the
holding company.
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
978.600 |
489.300 |
480.100 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
79611.300 |
55604.000 |
32730.400 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
80589.900 |
56093.300 |
33210.500 |
|
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LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
417.600 |
265.200 |
1110.100 |
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2] Unsecured Loans |
89.800 |
89.800 |
97.300 |
|
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TOTAL BORROWING |
507.400 |
355.000 |
1207.400 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
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TOTAL |
81097.300 |
56448.300 |
34417.900 |
|
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|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
14606.100 |
11697.800 |
9081.600 |
|
|
Capital work-in-progress |
7578.500 |
2800.00 |
1202.800 |
|
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|
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INVESTMENT |
32520.400 |
19635.200 |
14044.200 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
120.600
|
229.400 |
0.000 |
|
|
Sundry Debtors |
27998.000
|
23258.300 |
14680.500 |
|
|
Cash & Bank Balances |
5571.400
|
1711.700 |
1207.400 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
19321.300
|
14975.100 |
7311.500 |
|
Total
Current Assets |
53011.300
|
40174.500 |
23199.400 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
17568.500
|
12453.800 |
7834.300 |
|
|
Provisions |
9050.500
|
5405.400 |
5275.800 |
|
Total
Current Liabilities |
26619.000
|
17859.200 |
13110.100 |
|
|
Net Current Assets |
26392.300
|
22315.300 |
10089.300 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
81097.300 |
56448.300 |
34417.900 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
149420.900 |
112360.100 |
80511.100 |
|
|
Other Income |
2165.500 |
632.600 |
952.200 |
|
|
Stock adjustments |
[27.800] |
41.400 |
0.000 |
|
|
Total Income |
151558.600 |
113034.100 |
81463.300 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
41706.800 |
30743.500 |
21121.800 |
|
|
Provision for Taxation |
4133.900 |
3574.800 |
2807.600 |
|
|
Profit/(Loss) After Tax |
37572.900 |
27168.700 |
18314.200 |
|
|
|
|
|
|
|
|
Export Value |
138024.700 |
101270.800 |
NA |
|
|
|
|
|
|
|
|
Import Value |
3679.500 |
2183.000 |
NA |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Raw Materials |
215.000 |
1603.300 |
0.000 |
|
|
Excise Duty |
21.200 |
55.100 |
0.000 |
|
|
Power and fuel |
938.900 |
668.500 |
445.900 |
|
|
Other manufacturing Expenses |
21981.800 |
15414.700 |
30498.900 |
|
|
Employee cost |
70545.300 |
51088.400 |
18638.600 |
|
|
Selling and administrative Expenses |
10991.500 |
8669.000 |
5783.200 |
|
|
Miscellaneous Expenses |
1689.700 |
2172.900 |
3538.700 |
|
|
Interest and Financial Charges |
34.300 |
44.900 |
104.000 |
|
|
Depreciation |
3434.100 |
2573.800 |
1332.200 |
|
Total Expenditure |
109851.800 |
82290.600 |
60341.500 |
|
QUARTERLY RESULTS
|
Year |
30.09.2007 |
30.06.2007 |
|
Type
|
2nd Quarter
|
1st
Quarter |
|
Sales Turnover |
45768.700 |
41799.900 |
|
Other Income |
1046.200 |
1557.500 |
|
Total Income |
46814.900 |
43357.4 |
|
Total Expenditure |
32775.900 |
30740.800 |
|
Operating Profit |
14039.000 |
12616.600 |
|
Interest |
11.000 |
1.100 |
|
Gross Profit |
14028.000 |
12615.500 |
|
Depreciation |
1078.100 |
1007.900 |
|
Tax |
1392.300 |
912.700 |
|
Reported PAT |
11471.100 |
10738.500 |
KEY RATIOS
|
Year |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
0.01 |
0.02 |
0.15 |
|
Long Term Debt-Equity Ratio |
0.00 |
0.00 |
0.00 |
|
Current Ratio |
2.06 |
1.96 |
1.15 |
|
TURNOVER RATIOS |
|||
|
Fixed Assets |
7.45 |
8.21 |
12.70 |
|
Inventory |
853.83 |
979.60 |
0.00 |
|
Debtors |
5.83 |
5.92 |
10.97 |
|
Interest Cover Ratio |
1216.94 |
685.71 |
204.09 |
|
Operating Profit Margin(%) |
30.23 |
29.69 |
28.02 |
|
Profit Before Interest And Tax
Margin(%) |
27.94 |
27.40 |
26.36 |
|
Cash Profit Margin(%) |
27.44 |
26.47 |
24.40 |
|
Adjusted Net Profit Margin(%) |
25.15 |
24.18 |
22.75 |
|
Return On Capital Employed(%) |
60.69 |
67.77 |
109.87 |
|
Return On Net Worth(%) |
54.98 |
60.85 |
108.75 |
LOCAL AGENCY
FURTHER INFORMATION
DIRECTOR REPORTS:
The Company continued to see strong and profitable growth in
the financial year 2006-07 across all markets driven by good performance in
existing and new areas of business.
For the year ended March 31, 2007, the Company earned a total income of
Rs.151565.200 millions an increase of 34.20% over previous year's Rs.
112937.600 millions. As per the Consolidated Accounts the total income was
Rs.189142.600 millions an increase of 41.38% over the previous year's
Rs.133778.800 millions.
The net profit of the Company for the year increased to Rs.37572.900
millions (24.79% of the total income) as compared to Rs.27168.700 millions
(24.06% of total income) in the previous year. As per the Consolidated Accounts
the net profit for the year was Rs.42126.300 millions (22.27% of total income)
as compared to Rs.29667.400 millions (22.18% of total income) in 2005-06.
The Company is amongst the leading IT companies in the world and continues to
retain its leadership position in the Indian IT Industry. The Company has
provided effective business solutions to Global and Indian companies by
leveraging its domain knowledge across industry verticals, excellence in
technology and robust processes. It has continued to win new engagements and
grow existing relationships in the traditional area of Application Development
and Maintenance and is strengthening its presence in areas such as Consulting,
Infrastructure Management Services, Asset Based Solutions, Engineering and
Industrial Services, IT Enabled Services and Business Intelligence Services.
These higher-value businesses, in the opinion of the Company, have significant
potential to scale up in the next five years.
The Company's continued investments in innovation and technology have enabled
it to undertake a number of large, end-to-end, mission critical projects in
diverse business areas and technology domains.
The Company has 148 offices globally. In addition, the Company also has
Delivery Centres in a number of countries. Major Delivery Centres outside India
are in Hungary Brazil, Chile, Uruguay and China. The Company services the needs
of its global clients by linking the clients to one or more of these Delivery
Centres. Through the establishment of Delivery Centres in different parts of
the globe with the same high quality processes and by enabling customers to
make use of a group of these Centres depending on their needs, TCS has
pioneered the Global Network Delivery ModelTM, which the customers see as a key
differentiator.
The USA continued to be the largest market and contributed 52.43% to the
Company's consolidated revenues while other established markets like the UK and
Europe contributed 28.48% of the consolidated revenues. The Company's decision
to invest in emerging markets like Latin America and Asia Pacific is yielding
results with these markets contributing 3.85% and 4.78% respectively to the
consolidated revenues of the Company. India remains a strategic market for the
Company and continues to demonstrate growth in absolute terms.
Diligenta Limited, the subsidiary in the UK, which was set up last year to
focus on services in the life insurance and pensions BPO market in the UK, has
expanded its services and has started work on the complete administration of
policies falling under the closed Life and Pensions of Pearl Assurance. This
operation is being controlled from Peterborough, UK.
Among the industry verticals, the banking, financial services and the insurance
sector contributed 43.89070 of consolidated revenues on the back of large
product-based engagements in core banking and strong demand for the Company's
capital markets and insurance products and solutions. The manufacturing sector,
which contributed 12.72% of the Company's consolidated revenues, is being
driven by demand for enterprise solutions like ERP and engineering services.
Other significant verticals include life sciences and healthcare, retail,
telecom and utilities. A significant number of existing customers are now
engaging the Company for more than one service offering.
International Credit Rating:
The Company continues to have from Moody's Investors
Services, an investment-grade issuer rating of A3 as well as an indicative
foreign currency debt rating of Baa1, with the ratings outlook as stable. The
rating is not for any specific debt issuance by TCS.
The Company has also been rated by Dun and Bradstreet at 5A1
(Condition-Strong).
Branding
Initiative:
In line with its global ambitions, the Company has embarked
on a major brand building initiative in order to articulate and propagate its
new brand positioning. This campaign is intended to increase awareness of the
Company in the global marketplace, as well as differentiate its capabilities
from its competition.
The brand rollout is being carried out both externally, as well as internally
within the Company. The internal rollout is being undertaken to bind the
diverse, global workforce of the Company around a common brand promise.
Strategic Acquisitions and
Alliances:
With the objective of moving towards its goal of being among
the top IT companies in the world, the Company made the following acquisitions
/ alliances during the year either directly or through its subsidiaries:
Strategic Acquisitions:
i) TKS-Teknosoft S.A., Switzerland:
The Company acquired Switzerland-based TKS-Teknosoft S.A.
(TKS). TKS has a track record of successful implementation of large and complex
key technology projects in Europe, including the securities clearing and
settlement system of Switzerland.
The acquisition of TKS has helped TCS expand its product portfolio in the
banking and financial services space in Switzerland and France, not only by
acquiring marketing and distribution rights to QUARTZ(R) but also by adding new
products in the private banking and wealth management space. The acquisition of
TKS which has valuable products, together with the existing TCS products like
FNS' core banking system, the QUARTZ(R) platform for wholesale banks and TCS'
proprietary products in treasury, custody, clearing and settlement will give
TCS' customers access to a comprehensive product portfolio owned and supported
by TCS.
TCS Management Pty Limited,
Australia:
TCS Management Pty Limited (TCSM) (formerly known as 'Total
Communication Solutions'), a privately-owned consulting company in Australia
was acquired in November 2006 as part of the Company's strategy to
substantially grow the Australian business and provide high-end business and IT
consulting to customers in Australia as well as globally. TCSM specializes in
consulting services in the areas of Projects and Programme Management and
therefore its services are complementary to TCS' services.
Strategic Alliances:
i) Tata Consultancy Services (China) Company
Limited (TCS China):
Tata Consultancy Services Asia Pacific Pte Limited. (TCS APAC),
a wholly-owned subsidiary of the Company has established China's first
industrial scale software company, in association with Beijing Zhongguancun
Software Park Development Company, Uniware Company and the Tianjin Huayuan
Software Area Construction and Development Company These companies are
representatives of the National Development and Reform Commission which is a
department of the Chinese Government.
The joint venture company (JVC) was established in November 2006 and will
provide IT outsourcing services and solutions to the Chinese domestic market as
well as the global market. TCS APAC has a majority equity holding in TCS China
with management control. TCS China is located in Beijing and has commenced
operations this year.
The joint venture will leverage the complementary strengths of the partners in
technology, software development, management, talent acquisition and training,
including the world-class processes and practices of TCS as well as TCS'
experience of handling large and industrial scale technology projects. The
Company expects to grow the sales and servicing capability of this venture in
China. The Joint Venture will leverage the capability of the partners in China
to grow in scale as well as make inroads into the domestic market in
China.
ii) MP Online Limited:
The Company entered into a Joint Venture Agreement with the
Madhya Pradesh State Electronics Development Corporation Limited (MPSEDC)
pursuant to which a subsidiary company, MP Online Limited (MP Online), has been
set up in India with equity participation from TCS and MPSEDC. MP Online will
be engaged in the development, maintenance and management of a portal for
providing e-governance services to the citizens of Madhya Pradesh.
Interface with
Academia:
Continuous interaction with educational institutions remains a central plank of the Company's strategy to attract the best scientific and engineering talent and engage in cutting-edge research and development in partnership with universities across the world.
To bridge the campus-corporate gap, the Company has been conducting Student and
Faculty Development Programs across the country. Over 460 workshops were held,
with more than 38,000 participants from educational institutes.
Moreover, 1,080
students were provided with project internships during the year and the Company
sponsored 189 academic events.
Quality
Initiatives:
Reinforcing its commitment to high standards of quality, service management and robust information security practices, TCS attained a number of quality-related milestones during the year.
In addition to the domain specific certifications TL 9000, AS 9100 and ISO
13485, the Company was recommended for ISO 9001:2000, ISO 27001:2005 and ISO
20000:2005 certifications.
TL 9000 is the telecom industry's quality standard that expands the
requirements of ISO 9001:20000. The certification provides an opportunity to
compare performance with similar organisations, to learn and share best
practices in the telecom domain, and strengthen relationships with customers on
a competitive scale. AS 9100:Rev B is a Quality Management System designed
specifically for the Aerospace industry. Developed by the Society of Automotive
Engineers (SAE), it is based around the ISO 9001:2000 standard and is being
implemented across the international aerospace industry. TCS is the first
company in India to be certified for design of airframe structures. ISO
13485:2003 specifies requirements for a quality management system in the
regulatory domain, where organisations need to demonstrate their ability to
provide medical devices and related services that consistently meet applicable
customer and regulatory requirements.
TCS received the prestigious CII-EXIM Bank Award for Business Excellence this
year. This award, based on the EFQM of Europe, evaluates Indian companies for
their Business Excellence. TCS joins a select band of Excellent Companies who
have so far won the coveted award.
All these certifications are testimony to TCS' unstinting commitment to achieve
the highest standards of quality and the expertise that the Company brings to
global clients. The cornerstone of these certifications is the integrated
Quality Management System (iQMS) which was developed in-house and is today
providing strong support to the Global Network Delivery ModelTM.
Innovation is an important aspect of the Company's business operations and a
Corporate Technology Office headed by a Chief Technology Officer and supported
by a Corporate Technology Board was established to provide a thrust to Innovation
by institutionalizing the governance processes and by establishing a
collaborative innovation ecosystem that extends beyond TCS.
The Company now has 18 innovation labs across the world.
Corporate Social Responsibility:
Corporate Social Responsibility (CSR) in TCS is aligned with the Tata tradition of creating wealth in the community with a twin focus on Education and Society.
CSR in TCS continues around the '3-Generation' approach of philanthropy,
stakeholder engagement and the use of the Company's core competencies to
address societal problems. Volunteering is an integral part of CSR and has
attracted more than 1,000 employees at TCS offices in India and abroad.
TCS' computer based functional Adult Literacy Programme (ALP) has served over 1,00,000
learners all over India in eight languages. Further enhancements to the
existing interface as well as functionalities have also been initiated. The ALP
has been commended as an innovation in the Corporate Social Responsibility area
under the EMPI-Indian Express awards.
The MS Swaminathan Research Foundation and the NASSCOM Foundation are
partnering with TCS for the Mission 2007 National Alliance covering about
6,00,000 Indian villages. Simultaneously, the programme has also been scaled up
along with the Tata Council for Community Initiatives to work with government
agencies.
The Company is actively supporting the cause of rebuilding the Children's
Hospital of the Society for Rehabilitation of Crippled Children (SRCC) in
Mumbai which aims at providing world-class medical facilities to
children.
'Maitree' an association of employees and their families across the
globe, is a key vehicle of CSR within the organisation. Maitree has conducted
Right to Information Act Awareness sessions, HIV/AIDS Awareness sessions,
Environment Awareness outings for the employees as well as the community, Green
Audits to check consumption of paper, water and electricity at various TCS
offices and has promoted vermicomposting, rain water harvesting and paper
recycling. One of Maitree's key successes has been in the village community of
Wazapur, near Panvel, 60 km from Mumbai, which it has adopted and where teams
of TCS volunteers help the residents in women's self employment, literacy
classes, AIDS awareness and functional computer literacy.
Other CSR activities of TCS which were carried out in several cities in India
included support for restoration of heritage buildings, involvement in
educational causes, assistance in building hospitals, sponsoring of sports
events, creating computer databases for NGOs, re-uniting children from remand
homes with their parents using telephone and e-mail contacts, computer training
at orphanages, organizing blood donation camps, participating in clean-up of
localities and beaches, etc.
In the UK, a significant campaign has been the work done with underprivileged
youth, initially through sponsoring of Stepney Football Club, and moving on to
teaching. In the US, TCS supports many health causes such as construction of
Habitat for Humanity houses and the Salvation Army initiatives. In Europe, over
700 TCSers joined activists of the UN World Food Programme to raise awareness
and funds to fight child hunger.
TCS won global recognition for its CSR activities in February 2007 as the winner
of the Golden Peacock Global Award for CSR, leading other international
corporates. TCS also won the same award at the national level in January 2007
at a competition organised by the Institute of Directors.
Awards/Recognition:
·
During the year, the Company received various awards
and recognitions, significant amongst which are the following:
Company of the Year - 2006 from the Economic Times
· Dataquest Best IT Employer for 2006
· Frost and Sullivan Company of the Year Award - 2006
· Most Admired Knowledge Enterprise (MAKE) Award 2006
· Maplnfo Asia Partner of the Year Award
· CII-EXIM Bank Award for Business Excellence 2006
· Golden Peacock Global Award for Corporate Social Responsibility
· Top position in 'Top 10 Best Performing IT Services providers' category in the 2007 Global Services 100 listing
· Ranked among the Top 10 US application management services vendors
· Dataquest Pathbreaker Award 2006 for the MCA-21 project, India's largest e-governance initiative of the Ministry of Company Affairs, which is implemented by TCS.
· 'Most Distinguished Achievement Award in Information Management (APAC) - 2006' from IBM
· IBM Software Group Excellence and IBM WebSphere Awards for TCS Middle East
· Verizon's Supplier Excellence Award for the third consecutive year
· APAC Oracle Partner of the Year 2006 Award
· Avaya Global Connect Customer Responsiveness Award - 2006
Corporate Governance Report and
Management Discussion and Analysis Statement:
A report on Corporate Governance is attached to this Report as also a Management Discussion and Analysis statement.
Subsidiary Companies and Consolidated
Financial Statements:
The Company had 49 subsidiaries at the beginning of the year. The following eleven subsidiaries were set up/acquired during the year:
· MP Online Limited
·
PT Tata Consultancy Services Indonesia (set up by Tata
Consultancy Services Asia Pacific Pte Limited)
·
Tata Consultancy Services (China) Company, Limited.
(set up by Tata Consultancy Services Asia Pacific Pte Limited)
·
TKS - Teknosoft S.A. (acquired along with four of its
subsidiaries viz
·
TKS Services S.A., Quartz Software Technology S.A., TKS
Banking Solutions S.A. and TKS Teknosoft (France) SAS)
·
TCS Management
Pty Limited, (acquired)
·
Tatasolution Center SA (set up by Tata Consultancy
Services BPO Chile SA)
·
Financial Network Services (Beijing) Company Limited. (set up by
Financial Network Services Pty Limited)
·
The following two subsidiaries were de-registered during the year:
·
Chong Wan Investments Limited
·
Financial Network Services
(Facilities Management) Pty Limited.
·
And
the following subsidiaries were merged during the year with other subsidiaries
of the Company:
·
Sisteco
S.A. was merged with
Comicrom S.A. which in turn was merged with Tata Consultancy Services Chile
Limitada, whose name was changed during the year to Tata Consultancy Services
BPO Chile S.A.
Following these actions, the Company has 56 subsidiaries as on March 31, 2007. There has been no material change in the nature of the business of the subsidiaries. A statement containing brief financial details of the subsidiaries is included in the Annual Report.
As required under the Listing Agreements with the Stock Exchanges a
Consolidated Financial Statement of the Company and all its subsidiaries is
attached. The Consolidated Financial Statements have been prepared in
accordance with Accounting Standards 21, 23 and 27 issued by The Institute of
Chartered Accountants of India and show the financial resources, assets,
liabilities, income, profits and other details of the Company, its associate
companies, its joint ventures and its subsidiaries after elimination of
minority interest, as a single entry.
The Company has been granted exemption for the year ended March 31, 2007
by the Ministry of Company Affairs from attaching to its Balance Sheet, the
individual Annual Reports of its subsidiary companies. As per the terms of the
Exemption Letter, a statement containing brief financial details of the
Company's subsidiaries for the year ended March 31, 2007 is included in the
Annual Report. The annual accounts of these subsidiaries and the related
detailed information will be made available to any Member of the Company/its
subsidiaries seeking such information at any point of time and are also
available for inspection by any Member of the Company/its subsidiaries at the
Corporate Office of the Company. The annual accounts of the said subsidiaries
will also be available for inspection, as above, at the head offices of the
respective subsidiary companies.
Fixed Deposits:
The Company has not accepted any public deposits and, as such, no amount on account of principal or interest on public deposits was outstanding on the date of the Balance Sheet.
MANAGEMENT DISCUSSION
AND ANALYSIS:
Industry Structure,
Developments And Outlook:
Growth of Indian
Information Technology Industry and Expected Industry Size:
With estimated revenues of US$ 47.8 billion in FY2006-07, the Indian Information Technology - Business Process Outsourcing (IT-BPO) Industry continues to grow thrice as fast as the global I services industry, clocking a Compounded Annual Growth Rate (CAGR) of 28% since FY 1999-2000.
Global
Technology related spending remained strong in 2006 (estimated at US$ 1.5 trillion).
The world-wide spend on engineering and R and D is estimated at US$ 780 billion
and engineering spend is expected to be US$ 1,100 billion by 2020. Source: IDC,
NASSCOM in 'Strategic Review 2007'.
IT
Exports from India:
The Total Indian IT Exports (including hardware and software
in addition to services) were US$ 24.2 billion in 2005-06 with services exports
at 97.5% of the total IT exports. The major components of Services Exports were
IT Services exports (55%), BPO exports (26%) and software products and
engineering services exports (16.5%). NASSCOM estimates that in FY2006-07
Indian IT exports will grow to US$ 31.9 billion from US$ 24.2 billion in
2005-06.
Source: 'Strategic Review
2007' Domestic IT BPO market:
In FY 2005-06, the domestic IT-BPO market was at US$ 13.2
billion (See Chart 6) and was estimated to grow at 20% to exceed US$ 15.9
billion in FY 2006-07. The IT services segment in the domestic market is
expected to reach US$ 5.6 billion in FY 2006-07, exhibiting a 24.2% growth over
FY 2005-06. The domestic BPO segment is estimated to grow by 29.6 % in 2006-07
and is expected to be about US$ 1.2 billion in FY 2006-07.
Source: IDC, NASSCOM in 'Strategic
Review 2007' Size and Scope of Global Opportunity
Offshore
IT Services Spend Forecasts:
Year Total Offshore IT Services Spend Share of World IT
Services Spend 2004 9.8 2.3%2005 11.9 2.7%2006 14.4 3.1%2007 16.4
3.3%2008 18.2 3.5%2009 19.9 3.6%
Source: IDC, NASSCOM Income from
Operations:
The Company's revenues consist mainly of income from
Information Technology and Consultancy Services and to a lesser extent from
sale of equipment and software licenses. Revenues from software licenses are
derived primarily from sale of third party products. The Company provides
consultancy services either on time and material basis or fixed price fixed
time basis.
Plant location:
In view of the nature of the company business
viz, Information Technology (IT) services and IT Enabled services, the company
operates from various offices in India in India and abroad and does not have
any manufacturing plant except that pursuant to the merger of tata infotech
Limited with the company, the company has a manufacturing facility at 17 – B,
Tivim Industrial Estate, Karaswada, Mapusa – Bardez, Goa.
FIXED ASSETS:
· Freehold Lands
· Leasehold lands
· Freehold Buildings
· Leasehold Buildings
· Plant and machinery
· Motors Cars
· Computer equipment
· Office equipments
· Furniture and fixtures
· Electrical installation
OTHER
INFORMATION:
Contingent
liabilities:
|
Particulars |
31.03.2007 |
31.03.2006 |
|
|
( Rs. in millions) |
|
|
Claims against the Company not acknowledged as debt includes |
3202.100 |
2928.500 |
|
Guarantee given by the company on behalf of subsidiaries |
19333.000 |
422.100 |
Claims against the
Company not acknowledged as debt includes:
a) Rs. 862.600 millions (March 31, 2006: Rs. 791.500 millions in respect of claims made by lessors for properties leased
under tenancy agreements. These claims are being contested in the courts by the
Company. The management does not expect these claims to succeed. An amount of
Rs. 11.00 crores (March
31, 2006: Rs. 10.17 crores) has been
accrued under other liabilities.
b) Rs. 2123.600 millions (EUR 36.68 million) (March 31, 2006: Rs. 1979.100
millions, EUR 36.68 million) in
respect of a claim for compensation made by an overseas party. No provision has
been made in these financial statements as management considers the probability
of the claim succeeding to be remote.
ii) The Company has provided guarantees aggregating to Rs.
18526.200 millions (GBP 217.50 million) (March 31, 2006: Rs. Nil) to third parties on behalf of its subsidiary Diligenta Limited.
Management Team:
|
Function Name Corporate CEO and MD S Ramadorai CFO S Mahalingam Corporate Affairs Phiroz
Vandrevala Global Sales and
Operations N Chandrasekaran Global Human Resource |
S Ramodorai S Mahalingam Phiroz Vandrevala N Chandrasekaran S Padmanabhan |
|
Geography
Heads North America United
Kingdom Europe Asia Pacific Iberoamerica MEA India |
Surya Kant A S Lakshminarayanan Girish Ramachandran Girija Pande -
Johnson Lam -
Masahiko Kaji Gabriel Rozman Manoj Sahai |
|
Marketing R and D Human Resources Information Systems Legal Administration Finance Company Secretary |
J V Pendharkar Keith Sharp John Lenzen Jim Thomas K Ananthakrishnan Mathai Joseph K V Nori M Vidyasagar Gautam Shroff Sunil Sherlekar Harrik Vin Ritu Anand Ashok Mukherjee K Ganesan Thomas Simon Jyoti Srivastava Alok Kumar Bandana Sinha Satya Hegde Madhav Anchan G George B Sanyal V Ramakrishnan Pauroos Karkaria Alberto Arana S H Rajadhyaksha |
|
Industry
Practices Banking and Financial
Services Insurance Telecom Government Healthcare and Life
Sciences Energy and Utilities Retail Media Entertainment Travel and Hospitality |
N G Subramaniam J R Bhandari Ravi Shah K Padmanabhan Usha Lakshmanan N Sivasamban Tanmoy Chakrabarty J Rajagopal Ajoyendra Mukherjee Edward Altman Pratik Pal G Srinivasa Raghvan |
|
Service
Practices Engineering and
Industrial Services Business Process
Outsourcing Enterprise Solutions Technology Solutions Infrastructure Services Business Intelligence Consulting Migration/Re-engineering
Solutions Security System Integration/Outsourcing
Assurance Service |
Regu Ayyaswamy Milind Kamat V K Raman Hasit Kaji Raj Agarwal Anita Nanadikar P R Krishnan Santosh Mohanty George Bacon Arun Agarwal V Ramaswamy Sudheer Warrier R K Raghavan Sanjay Bahl B Gopal Satish Thiagarajan |
|
Products |
N G Subramaniam Pradipta Pandit R Vivekanad Sanjay
Bhanot Manoj Govel |
|
Global
Delivery |
Ravi Vishwanathan Susheel Vasudevan Nagraj Ijari Abid Ali Debashis Ghosh Ajoyendra Mukherjee V Rajanna Carol Wilson Satish Varma K Subramaniam |
PRESS RELEASE:
Supercomputer
developed by Tata group ranked 4th fastest in the world and fastest in Asia
Mumbai, 13 November, 2007
The supercomputer
facility at Computational Research Laboratories (CRL), a wholly owned subsidiary
of Tata Sons Ltd, has been ranked as the 4th fastest supercomputer in the world
and fastest supercomputer in Asia, according to the Top500 Supercomputer list
announced at SC07, the International Conference for High Performance Computing,
Networking, Storage and Analysis at Reno, Nevada, USA.
Called EKA (the Sanskrit name for number
one), the supercomputer built at the CRL facility at Pune, India, marks a
milestone in the Tata group’s effort to build an indigenous high performance
computing solution. CRL built the supercomputer facility using dense data
centre layout and novel network routing and parallel processing library
technologies developed by its scientists.
EKA uses nearly 1800
computing nodes and has a peak performance of 170 Teraflops (TFlops or Trillion
Floating Point Operations per Second) and a sustained performance of 120
Teraflops based on the LINPACK benchmarks which are used by the world-wide
community to rank supercomputers based on performance.
EKA, the CRL
supercomputer follows a near-circular layout of the data centre unlike the
traditional Hot Aisle and Cold Aisle rows. This near-circular layout enables
the building of densely packed supercomputers and this is the first time this
architecture has been tried out on this scale.
Mr. Ratan Tata,
Chairman of the Tata group said: “High performance computing solutions have an
ever-increasing role in the scientific and new technological space the world
over. The Tata group has supported this development activity and is extremely
proud of the team that has developed and built this supercomputer, which is now
ranked as the world’s fourth fastest. I am sure this supercomputer and its
successor systems will make a major contribution to India’s ongoing scientific
and technological initiatives.”
“CRL’s
supercomputer, EKA, has put India at the forefront of high performance and
supercomputing technology globally. EKA gives us the ability to address
applications in multiple disciplines including software development and
research,” said Mr. S. Ramadorai, Chairman of CRL and CEO and MD of Tata
Consultancy Services. “The successful launch of the supercomputer has been
driven by an exemplary team at CRL working collaboratively with scientists
across the Tata group.
The CRL
supercomputer has been built using CLOS Architecture with off-the-shelf servers
and Infiniband Interconnect technologies with Linux as the operating system.
This is the first ever site in the world which has used the Dual Data Rate
Infiniband with fibre- optic cable technology for superior performance.
This CRL
supercomputer includes nodes and racks built by Hewlett Packard (HP Cluster
Platform 3000 BL460c system) which uses high speed quad-core Clovertown
processors from Intel Corp. and Dual Data Rate Infiniband switches from
Mellanox Corp. and Voltaire Corp. The CRL team has been actively supported by
scientists and engineers at Tata Consultancy Services.
In the near term,
CRL is targeting and developing applications such as neural simulation,
molecular simulation, computational fluid dynamics, crash simulation, and
digital media animation and rendering. The longer term application areas would
include financial modelling, seismic modelling, geophysical signal processing,
weather prediction, medical imaging, nanotechnology, personalized drug
discovery, real time rendering, and virtual worlds among others. CRL also
intends to offer high performance and supercomputer system integration,
research, applications and software services to its customers around the globe
in the area of high performance computing.
About CRL Limited
Computational
Research Laboratories was incorporated as a fully-owned subsidiary of Tata Sons
with a mandate to achieve global leadership in the area of high-performance
computing systems. With an elite team of 50 researchers and scientists covering
application software, system architecture, system software and hardware design
--- CRL not only builds world-class and globally competitive supercomputer
systems but also delivers application-level scalability.
TCS Wins InfoWorld
100 with Project Ultimatix
Annual Awards Recognize TCS for Most Creative and Cutting-Edge
Implementations of Enterprise Technology
Mumbai, India, November 12, 2007
Tata Consultancy
Services (TCS), (BSE: TCS.BO, NSE: TCS.NS), a leading IT services, business
solutions and outsourcing organization, today announced that it has been
awarded the InfoWorld 100 for
its Project Ultimatix. InfoWorld 100
honors IT projects that demonstrate the most creative use of cutting-edge
technologies to further their business goals.
“Whether ushering
legacy systems into the agile era or revolutionizing how their companies
leverage technology to meaningful ends, this year's winners are both
inspiration and proof that striking a new path in IT can reap deep
organizational rewards,” said InfoWorld
Senior Editor Jason Snyder.
TCS’ nomination for
the InfoWorld 100 Awards was
based on Project Ultimatix, an IT solution that integrated 50 core applications
to streamline operations and internal collaboration for more than 700 business
processes. The result of Ultimatix was a unified network and method for
deploying all internal processes, including HR, finance, and project
management, to support over 100,000 staff in 150 offices in 47 countries. Based
on the ERP suite, Ultimatix included custom applications based on J2EE using
rule engines, workflow services, and SOA.
“The InfoWorld 100 leads credence to TCS’s
established commitment to building innovative and cutting-edge IT solutions for
companies around the world,” said K. Ananth Krishnan, Chief Technology Officer,
Tata Consultancy Services. “With the tremendous success of Ultimatix, TCS now
has plans to extend the project modules to customers as an Extranet, where
project teams and customers can collaborate on problem solving and exchange
vital information.”
"Ultimatix has
now evolved to support TCS’ Global Network Delivery Model (GNDM™), a
collaborative, best-in-class framework of people, processes and infrastructure
that makes it possible to consistently ensure success of customers’
initiatives," said Alok Kumar, VP and Global Head of Internal IT at TCS.
InfoWorld 100 is an
annual award that recognizes 100 companies for best use of technology to
enhance their business. The awards celebrate real-world IT projects that use
technology in smart, innovative, creative ways to meet business and technical
objectives. Entries are judged on innovation and project complexity, as well as
stumbling blocks that were overcome to achieve success.
About Tata
Consultancy Services Ltd (TCS)
Tata Consultancy
Services is an IT services, business solutions and outsourcing organization that
delivers real results to global businesses, ensuring a level of certainty no
other firm can match. TCS offers a consulting-led, integrated portfolio of IT
and IT-enabled services delivered through its unique Global Network Delivery
Model, recognized as the benchmark of excellence in software development.
A part of the Tata
Group, India’s largest industrial conglomerate, TCS has over 100,000 of the
world's best trained IT consultants in 47 countries. The company generated
consolidated revenues of US $4.3 billion for fiscal year ended 31 March, 2007
and is listed on the National Stock Exchange and Bombay Stock Exchange in India
WEBSITE DETAILS:
Subject is one of the world's leading information technology companies.
Through its Global Network Delivery Model™, Innovation Network, and Solution
Accelerators, TCS focuses on helping global organizations address their
business challenges effectively.
Subject continues to invest in new technologies, processes, and people
which can help its customers succeed. From generating novel concepts through
the company Innovation Labs and academic alliances, to drawing on the expertise
of key partners, it keeps clients operating at the very edge of technological
possibility.
Whether subject is envisioning a business advantage, engineering an IT
solution, or executing an outsourcing strategy, it helps its customers
experience certainty in their every day business.
The company reported 2006-07 global revenues of USD 4.3 billion.
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.39.47 |
|
UK Pound |
1 |
Rs.80.09 |
|
Euro |
1 |
Rs.57.65 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
10 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--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 |
YES |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
81 |
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 |
|