MIRA INFORM REPORT
|
Report
Date : |
08.02.2007 |
IDENTIFICATION
DETAILS
|
Name : |
FLEXTRONICS
TECHNOLOGIES INDIA PRIVATE LIMITED |
|
|
|
|
Registered
Office : |
88/1,
Electronics City, Bangalore-561 229, Karnataka, India |
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Country: |
India |
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Financials
(as on): |
31.03.2005 |
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Date
of Incorporation : |
12.01.2001 |
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|
|
|
Com.
Reg. No.: |
08-32965 |
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CIN
No.: [Company Identification No.] |
U31909KA2003PTC032965 |
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TAN
No.: [Tax Deduction & Collection Account No.] |
BLRF00406A |
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|
Legal
Form : |
Private Limited Liability Company. |
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Line
of Business : |
The
company is engaged in the business of manufacturing of Printed Circuit Board,
Multiplexers and Set top boxes. |
RATING & COMMENTS
|
MIRA’s
Rating : |
Ba |
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall
operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
|
Maximum
Credit Limit : |
USD
1500000 |
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|
|
|
Status
: |
Good |
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|
|
|
Payment
Behaviour : |
Usually
Correct |
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|
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Litigation
: |
Clear |
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Comments
: |
Subject is a well-established and reputed company of
worldwide Flextronics Group. Trade relations are fair. Payments are usually
correct and as per commitments. The company is doing well. It can be considered good for normal business dealings at
usual trade terms and conditions. It can be regarded as a promising business partner in a
medium to long run. |
LOCATIONS
|
Registered
Office/ Factory: |
88/A ,
Electronics City, Hosur Road, Bangalore – 561 229, Karnataka, India |
|
Tel.
No.: |
91-80-28520022 |
|
Fax
No.: |
91-80-28521030 |
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Email: |
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Website: |
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|
Area : |
18000 sq. ft. |
|
Location : |
Owned |
|
|
|
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Factory
: |
A-380,
Defence Colony, New Delhi-110024, India |
|
Tel.
No.: |
91-80-28530022 |
|
Fax
No.: |
91-80-28521078 |
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|
|
|
Branches
: |
17,
Subhash Marg, Daryaganj, New Delhi – 110002, India |
|
Tel.
No.: |
91-11-23272024/64 |
|
Fax
No.: |
91-11-23287371 |
DIRECTORS
|
Name: |
Mr. Bhardwaj Kumar Ashish |
|
Designation
: |
Director [Foreign] |
|
Date
of Birth: |
20.02.1964 |
|
Date
of Appointment: |
12.01.2001 |
|
Resignation
Date: |
11.10.2001 |
|
Address
: |
139, Palm Drivere Dhill, Hong Kong |
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|
|
|
Name: |
Mr. Manny Al Marimuthu |
|
Designation: |
Director [Foreign] |
|
Date
of Birth: |
11.10.1961 |
|
Date
of Appointment: |
12.01.2001 |
|
Address:
|
Room A, 32/F, Block – 7, Discouery Park,
Tsuenwan, Hong Kong |
|
|
|
|
Name: |
Mr. Veriah Poonnaiah |
|
Designation: |
General Manager & Director [Foreign] |
|
Address:
|
#10+, Delphi 1 Prestige Acropolis, Koramangala,
Bangalore – 560 0061, Karnataka, India. |
|
Date
of Birth: |
11.10.1961 |
|
Qualification: |
B.E. (Mechanical) |
|
Experienced:
|
20 Years |
|
Date
of Appointment: |
23.09.2004 |
|
|
|
|
Name: |
Mr. A Ven Kateswarlu |
|
Designation: |
Director |
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Address:
|
13, 3rd Cross, Muneswar Nagar,
Bangalore – 560061, Karnataka, India |
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|
|
|
Name: |
Mr. Yellore Sanjay |
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Designation
: |
Director |
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Address:
|
611/ 6th Floor, Chitrapur Apartments,
15th Cross Malleswaram, Bangalore – 560 061, Karnataka, India. |
|
Date
of Birth: |
02.12.1973 |
|
Date
of Appointment: |
23.09.2004 |
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|
|
|
Name: |
Mr. Sridhar S |
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Designation
: |
Secretary |
|
Address:
|
Falt 104, Keerthi Ornatta Cvraman Nagar, Main
Road, Nagavarapalya, Bangalore – 560 093, Karnataka, India. |
|
Date
of Birth: |
15.08.1968 |
|
Date
of Appointment: |
10.06.2004 |
|
|
|
|
Name: |
Mr. Gururaj A |
|
Designation
: |
Director |
|
Address:
|
449 Amarjyothi Layout, Intermediate Ring Road,
Bangalore – 560 071, Karnataka, India. |
|
Date
of Birth: |
05.05.1958 |
|
Qualification: |
M Tek (Optical Communication); MS (Electrical
Engineering) |
|
Experienced:
|
|
|
Date
of Appointment: |
04.03.2005 |
|
|
|
|
Name: |
Mr. Ganesh |
|
Designation: |
Director – Business Development- ODM |
|
Qualification: |
B.E. (Electronics & Instrumentations) |
|
Experienced:
|
19 Years |
|
Date
of Appointment: |
01.03.2004 |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
|
No. of Shares |
|
Bhardwaj Kumar Ashish |
|
10010 |
|
Manny Al Marimuthu |
|
10 |
|
Joseph
Devadas |
|
1 |
|
Sanjay
Yellore |
|
1 |
|
Flextronics
International Asia Pacific Limited |
|
26558682 |
|
TOTAL: |
|
26568704 |
BUSINESS DETAILS
|
Line
of Business : |
The
company is engaged in the business of manufacturing of Printed Circuit Board,
Multiplexers and Set top boxes. |
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|
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Products
: |
Alternators, Miscellaneous Machine Tools, Electrical
Components and Devices, Miscellaneous Electrical Equipment, Testing and
Measuring – Medical, Electrical & Electronics, Electronics Test and
Measuring Instruments, power Generator Equipment, Electronics Test and
Measuring Instruments. |
PRODUCTION
STATUS
|
Particulars |
Unit |
Actual Production |
|
Plastic
Assembly |
Quantity |
NIL |
|
PCB
Assembly |
Quantity |
238751 |
|
TV Tuners |
Quantity |
20762 |
|
Routers |
Quantity |
1083 |
|
Set Top
Boxes |
Quantity |
1434 |
|
Telephone
Wall Sets |
Quantity |
154098 |
|
M- Track
System |
Quantity |
165 |
|
M – Track
System – EHTP |
Quantity |
1030 |
|
TOTAL: |
|
417323 |
GENERAL INFORMATION
|
No. of
Employees : |
Around 297 |
|
|
|
|
Bankers
: |
Not Available |
|
Auditors
: |
S. P.
Nagrath and Company Chartered
Accountants |
|
Address
: |
A-380,
Defence Colony, New Delhi – 110024, India |
|
Tel.
No.: |
91-11-2469995 |
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Fax
No.: |
91-11-24649997 |
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|
|
|
Group
Companies: |
Ø Flextronics Enterprise Solution,
Inc (FESI) Ø Flextronics Technologied (Shah
Alam) Sdn. Bhd. Ø Flextronics International USA,
Inc. Ø Flextronics Manufacturing (Hong
Kong) Limited Ø Flextronics International EQTOIS
Serv Limited Ø Flextronics Manufacturing
(Shahghai) Company Limited Ø Flextronics International Technologia
Limited Ø Flextronics International Sweden
AB Ø Flextronics Technologies (Zuhai)
Company Limited Ø Flextronics International Thailand Ø Flextronics International Inc. Ø Flextronics International Latin
America (L) Limited Ø Flextronics Technology (Singapore)
Pte Limited Ø Flextronics Sales & Marketing
(A-P) Limited, Mauritius Ø Flextronics Inter. Amazonia
Limited Ø Flextronics International USA Ø Flextronics International Asia –
Pacific Limited |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
35000000 |
Equity
Shares |
Rs.10/- |
Rs. 350.000 Millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
26568694 |
Equity
Shares |
Rs.10/- |
Rs. 265.686 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES
OF FUNDS |
|
31.03.2005 |
31.03.2004 |
|
SHAREHOLDERS FUNDS |
|
|
|
|
1] Share Capital |
|
265.686 |
58.763 |
|
2] Reserves & Surplus |
|
144.775 |
72.642 |
|
3] Profit and Loss A/c |
|
0.000 |
0.000 |
NETWORTH
|
|
410.461 |
131.405 |
|
LOAN FUNDS |
|
|
|
|
1] Secured
Loans |
|
0.000 |
0.000 |
|
2]
Unsecured Loans |
|
0.000 |
230.815 |
TOTAL
BORROWING
|
|
0.000 |
230.815 |
|
DEFERRED
TAX LIABILITIES |
|
6.137 |
7.895 |
|
|
|
|
|
TOTAL
|
|
416.598 |
370.115 |
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
183.095 |
208.331 |
|
Capital work-in-progress |
|
2.577 |
4.802 |
|
|
|
|
|
|
INVESTMENT |
|
0.000 |
0.000 |
|
DEFERREX
TAX ASSETS |
|
3.484 |
14.720 |
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
Inventories |
|
518.452 |
133.157 |
|
Sundry Debtors |
|
246.541 |
61.468 |
|
Cash & Bank Balances |
|
44.670 |
25.755 |
|
Other Current Assets |
|
0.000 |
0.000 |
|
Loans & Advances |
|
74.425 |
42.039 |
|
Total Current Assets |
|
884.088 |
262.419 |
|
Less: CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
Current Liabilities |
|
645.446 |
120.166 |
Provisions
|
|
11.200 |
0.000 |
Total Current Liabilities
|
|
656.646 |
120.166 |
Net
Current Assets
|
|
227.442 |
142.253 |
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
0.000 |
0.009 |
|
|
|
|
|
TOTAL
|
|
416.598 |
370.115 |
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
|
31.03.2005 |
31.03.2004 |
|
Sales Turnover [including other income] |
|
1153.239 |
421.096 |
|
|
|
|
|
|
Profit/(Loss) Before Tax |
|
51.427 |
(33.403) |
|
Provision for Taxation |
|
20.679 |
11.199 |
|
Profit/(Loss) After Tax |
|
30.748 |
(22.204) |
|
|
|
|
|
Total
Expenditures
|
|
1101.812 |
454.500 |
KEY
RATIOS
|
PARTICULARS |
|
|
31.03.2005 |
31.03.2004 |
PAT / Total Income
|
(%)
|
|
2.67 |
(5.27) |
|
|
|
|
|
|
Net Profit Margin
(PBT/Sales) |
(%) |
|
4.46 |
(7.93) |
|
|
|
|
|
|
Return on Total Assets
(PBT/Total
Assets} |
(%) |
|
4.79 |
(6.81) |
|
|
|
|
|
|
Return on Investment (ROI)
(PBT/Networth) |
|
|
0.13 |
(0.25) |
|
|
|
|
|
|
Debt Equity Ratio
(Total
Liability/Networth) |
|
|
1.60 |
2.67 |
|
|
|
|
|
|
Current Ratio
(Current
Asset/Current Liability) |
|
|
1.35 |
2.18 |
LOCAL AGENCY FURTHER INFORMATION
History
Subject was incorporated on 12.01.2001 at New Delhi in India
having Company Registration Number 109189.
The company’s registered office has been shifted from A-380,
Defence Colony, New Delhi – 110024 to present address with effect from
03.12.2003 and new registration number is 08-32965.
The company is accredited with ISO 9001:2000 and ISO 140001
Certification.
Business
Operations Overview and Outlook:
The company, which is a part of Flextronics Group, the
world’s largest Electronics Manufacturing Services (EMS) Provider, completed
its fourth year of operations in India. In the current year, the company explored
the wonderful opportunity available in the domestic market by entering into
contracts with domestic companies to manufacture products on job work and
turnkey basis, there by enhancing its operational growth by expanding its
business in the domestic market. The company was successful in converting the
job work orders to turnkey in a big way which paved the path for growth and
success.
The company has stretched its wings from manufacturing to
service sector. i.e. Business process Outsourcing. The Service sector of the
company has grown substantially, making its delightful presence felt in the
market, resulting in increased opportunity and wider outlook.
The business Processing Outsourcing segment is presently
operating for the Asian and European sites of the associate group companies. In
view of taking advantage of exciting opportunity available in the market, the
company has recently opened its branch in Chennai to cater to the world wide
requirements of processing functions.
The company has been approached by various customers during
the year for the manufacture of set top boxes, automotive cards, energy meters,
mobile phones, ATM Stations, point of sale equipments, net working base
stations and they are confident of meeting the requirements of their customers.
To diversify their presence in various sectors, the company strategies its presence in Auto Electronics, to win orders in manufacturing “Control Cards for two and four wheelers.
The company got a new order for the mobile phone
manufacturing operations from Motorola. Due to this, the company is expanding
its manufacturing operations in Pondicherry by leasing the building of 45000
sq. ft.
The assurance from new customers and the government of India
on large Telecom expansion in India would result in an increase in sale of set
top boxes and telecom products in the next few years. The proposed New Telecom
Manufacturing and Procurement Policy would make manufacturing in India
mandatory for all Government procurement. This would result in a significant
increase in their domestic turnover and further profitability in the coming
years.
The company continues to focus on Quality and IT Systems.
The company has also invested in building competence of people, both in
technical skill and behavioral skills. With all these activities, they are
positioning their selves as a leader in EMS industry for the Indian market, as
there is in the world market.
The financial year also saw the company focus on key
initiatives like Lean Manufacturing and Six Sigma. The company has achieved a
substantial savings by implementing the six sigma initiatives recommended by
the team.
Fixed
Assets:
Land Freehold, Leasehold Improvements, Building, Plant & Machinery, Office Equipment, Computer, Furniture & Fixtures, Vehicles etc.
Products :
AUTOMOTIVE
Engine
Management Card
Consumer
Ø
TV
Tuners
Ø
Set
Top Box
Industrial
Energy
Meters
Telecommunications
Cellular
Phone
Telecommunications Infrastructure
Ø
Networking
Cards
Ø
WLL
Wallsets
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
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.44.06 |
|
UK Pound |
1 |
Rs.86.34 |
|
Euro |
1 |
Rs.57.46 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP
CAPITAL |
1~10 |
6 |
|
OPERATING
SCALE |
1~10 |
6 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT
LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT
POINTS |
|
|
|
--BANK
CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER
ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT
POINTS |
|
|
|
--SOLE
DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT
ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
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 |
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 |