MIRA
INFORM REPORT
|
Report Date : |
13.02.2007 |
IDENTIFICATION
DETAILS
|
Name : |
IBM
INDIA PRIVATE LIMITED |
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Registered Office : |
No.12,
Subramanya Arcade, Bannergatta Road, Bangalore-560029, Karnataka |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
13.06.1997 |
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Com. Reg. No.: |
08-22382 |
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CIN No.: [Company
Identification No.] |
U72200KA1997PTC022382 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BLRI00560A |
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PAN No.: [Permanent
Account No.] |
AAACI4403L |
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Legal Form : |
Private
Limited Liability Company |
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Line of Business : |
Manufacturers, Importers, Exporters and Traders of All Types of Computer Systems, Hardware, Software, Display Systems, Computer Accessories and Peripherals. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD
30000000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a part of well known multi-national IBM. It is an ultimate subsidiary of IBM, USA. Available information indicates high financial responsibility of the company although Indian subsidiary incurres heavy losses. Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
No.12,
Subramanya Arcade, Bannergatta Road, Bangalore-560029, Karnataka, India |
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Tel. No.: |
91-80-22063000 |
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Fax No.: |
91-80-22063871 |
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E-Mail : |
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Website : |
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Area : |
5000 Sq.ft. |
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Location : |
Rented |
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Head
Office : |
TISL Towers, Golden Enclave, Airport Road, Bangalore – 560 017,
Karnataka, India |
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Tel.
No.: |
91-80-25267117 / 25269299 / 25262355 |
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E-Mail
: |
91-80-25277991/25265556 |
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Area : |
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Website : |
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Factory
1 : |
Shed No. 1 & 2, Survey No. 135/1, Hoodi Village, Whitefield Bangalore – 560 017, Karnataka |
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Tel.
No.: |
91-80-28410812 / 28410228 |
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Area : |
25000 Sq.ft. |
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Location : |
Rented |
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Factory
2 : |
201, Villianoor Road, 45A, National Highway, Moolakulam Pondichery – 605 010 |
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Tel.
No.: |
91-413-22371707, 22372026 / 28 |
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Fax
No.: |
91-413-22372014 |
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Area : |
10000 Sq.ft. |
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Location : |
Rented |
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City
Office : |
Prestige Towers, 99, Residency Road, Bangalore – 560025, Karnataka, India |
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Tel.
No.: |
91-80-22079999 |
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Fax
No.: |
91-80-22079010 / 22079011 |
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Software/ Technical Centres : |
v Bangalore (Solution partnership centre for porting of software by independent software providers on IBM platforms, this centre is one among only 10 such IBM centres, worldwide) v Pune v Gurgaon (E-Business Software) v Hyderabad (“School for enterprise wide computing”, C/O. Indian Institute of Information Technology, Hyderabad) |
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Branches : |
Located at New
Delhi, Mumbai, Chennai and Kolkata |
DIRECTORS
|
Name : |
Mr. Abraham Thomas |
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Designation : |
Managing Director |
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Address : |
239, Embassy Woods, 6/A, Cunningham Road, Bangalore – 560 056, Karnataka |
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Date of Birth/Age : |
29/11/1962 |
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Date of Appointment : |
05/03/2001 |
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Name : |
Mr. K. S. Ranganathan |
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Designation : |
W T Director |
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Address : |
25, 8th Main Road, Shankarnagar, Bangalore – 560 096, Karnataka |
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Date of Birth/Age : |
21/07/1966 |
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Date of Appointment : |
05/03/2001 |
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Name : |
Dr. Uday Shukla |
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Designation : |
Director |
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Address : |
3739, 11th Cross, 13-B, Main HAL II Stage, Bangalore – 560 008, Karnataka |
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Date of Birth/Age : |
13/06/1951 |
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Date of Appointment : |
16/07/2001 |
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Name : |
Ms. Sylvia Wong |
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Designation : |
Director |
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Address : |
2, Lenoic Hill Road, Singapore |
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Date of Birth/Age : |
25/05/1961 |
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Date of Appointment : |
27/09/1999 |
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Name : |
Mr. Kenneth W. Hermann |
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Designation : |
Director |
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Address : |
28, Scotts Road, Singapore |
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Date of Birth/Age : |
22/08/1948 |
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Date of Appointment : |
23/09/1999 |
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Name : |
Mr. Antorio Jose Romero |
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Designation : |
Director |
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Address : |
4, Rochalic Drive, Singapore – 248 260 |
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Date of Birth/Age : |
13/01/1950 |
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Date of Appointment : |
12/08/1999 |
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Name : |
Mr. Shaker Annaswamy |
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Designation : |
Managing Director |
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Address : |
Flat 5, Prestige Casablaca 2/2, Airport Road, Kodihalli, Bangalore-560017, Karnataka |
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Date of Birth/Age : |
01.08.1955 |
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Qualification : |
B.E.Elec and Comm., Diploma in Business Management |
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Experience : |
26 years |
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Date of Appointment : |
14.07.2004 |
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Name : |
Mr. Amitabh Ray |
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Designation : |
Director |
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Name : |
Mr. Satish Khatu |
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Designation : |
Director |
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Address : |
2, Leonie Hill Road, Apartment 20, 01, Singapore-239192 |
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Date of Birth/Age : |
03.12.1952 |
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Date of Appointment : |
16.01.2002 |
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Name : |
Mr. Amit Sharma |
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Designation : |
Director |
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Address : |
209, Defence Colony, 3rd Main, 5th Cross, Indira Nagar, Bangalore-560038, Karnataka |
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Date of Birth/Age : |
28.08.1970 |
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Date of Appointment : |
10.07.2003 |
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Name : |
Mr. K. M. Ramasubramanian |
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Designation : |
Director |
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Address : |
#311, Embassy Tranquil, #22, 8th Main, Koramangala, Bangalore-560034, Karnataka |
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Date of Birth/Age : |
10.12.1954 |
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Date of Appointment : |
18.08.2004 |
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Date of Ceasing : |
18.03.2005 |
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Name : |
Mr. Ganesh Margabandhu |
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Designation : |
Director |
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Address : |
No.713, 7th Main, 3rd Phase, J.P. Nagar, Bangalore-560078, Karnataka |
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Date of Birth/Age : |
02.10.1959 |
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Date of Appointment : |
18.08.2004 |
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Name : |
Mr. D. C. Chein |
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Designation : |
Director |
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Address : |
3F, # 36 Lane, 16, Ally, 199, Tun Hwa N Road, Taipei, Taiwan |
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Date of Birth/Age : |
23.06.1953 |
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Date of Appointment : |
02.09.2004 |
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Name : |
Mr. Debashish Roy Chowdhury |
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Designation : |
Director |
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Address : |
#5004, Pavan Enclacve, 16th B, Main Hal II Stage, Indira Nagar, Bangalore-560008, Karnataka |
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Date of Birth/Age : |
27.08.1963 |
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Date of Appointment : |
06.01.2005 |
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Name : |
Mr. Yogesh Dayal |
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Designation : |
Director |
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Address : |
#707, Raheja Residency, Koramangala, Bangalore-560034, Karnataka |
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Date of Birth/Age : |
26.05.1958 |
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Date of Appointment : |
18.03.2005 |
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Name : |
Mrs. Kalpana Margabandhu |
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Designation : |
Director |
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Address : |
Venkateshwara Krupa, 1194 V Block, Rajaji Nagar, Bangalore-560010 |
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Date of Birth/Age : |
03.05.1957 |
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Date of Appointment : |
29.09.2005 |
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Date of Appointment : |
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KEY EXECUTIVES
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Name
: |
Mrs. Suhda Madhavan |
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Designation
: |
Company Secretary |
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Address
: |
# 822,
3rd A, Cross, 9th Main Kalyan Nagar I, Block HRBR
Layout, Bangalore-560043 |
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Date
of Birth/Age : |
05.11.1964 |
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Date
of Appointment : |
10.04.2002 |
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Name
: |
Mrs.
Subhashree Sridharan |
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Designation
: |
Company
Secretary |
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Address
: |
T-3,
Sri Mahalajkshmi Apartments, 30-31, 5th Main, 8th
Cross, Malleswaram, Bangalore-560003, Karnataka, India |
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Date
of Birth/Age : |
29.05.1973 |
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Date
of Appointment : |
05.01.2007 |
MAJOR SHAREHOLDERS
|
Names
of Shareholders |
No. of Shares |
|
IBM World Trade Organisation |
92143688 |
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Mr. K. S. Raghunandan |
2 |
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Mr. R.
Ravikumar |
2 |
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Mr.
Anjiv Agarwal |
2 |
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Mr.
Girish Vasudevan |
2 |
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Mr. K.
Ramaseshan |
2 |
|
Mr. K.
M. Ramasubramanian |
1 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers, Importers, Exporters and Traders of All Types of Computer Systems, Hardware, Software, Display Systems, Computer Accessories and Peripherals. |
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Imports from : |
USA, Singapore, Australia and Japan |
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Terms : |
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Selling : |
contract or credit (30 days) terms |
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Purchasing : |
Credit (60 days) terms |
GENERAL
INFORMATION
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Suppliers : |
Some of its major suppliers are as follows: v IBM, USA/ Singapore v IBM Global Services (India) Private Limited, Bangalore v IBM World Trade Corporation, USA v J. R. Packaging Private Limited v K. K. Nag Limited v Intel India Limited, USA v American Power Conversion, Bangalore v Yojna Inc., USA v Adaptec Inc., USA v Asian Pacaging |
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Customers : |
Some of its major customers are as follows: v Asea Brown Boveri Limited, Bangalore v Reserve Bank of India, India v Ballarpur Industries Limited (BILT), India v Ingram Micro India Limited, India v Bharati Televenture, India v Whirlpool, India v American Power Conversion, Bangalore |
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No. of Employees : |
1150 |
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Bankers : |
v Canara Bank Overseas Branch, M. G. Road, Bangalore – 560 001, Karnataka Tel. No. 91-80-25596949, 25584119 v Hongkong Bank Manipal Centre, Bangalore – 560 001, Karnataka Tel. No. 91-80-25585444, 25586367 v Deutsche Bank Raheja Towers, M. G. Road, Bangalore – 560 001, Karnataka Tele No. 91-80-25594488, 25594446 v Citi Bank N A Dickenson Road, Bangalore – 560 042, Karnataka v Bank of Baroda Corporative Banking Branch, Bangalore, Karnataka v Corporation Bank Industrial Finance Branch, Bangalore, Karnataka v State Bank of Mysore Industrial Finance Branch, Bangalore, Karnataka v Standard Chartered Grindlays Raheja Towers, M. G. Road, Bangalore – 560001 v Fleet Bank, USA |
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Banking Relations : |
Good |
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Auditors : |
Price Waterhouse & Company Chartered Accountants Mittlal Tower, 10th Floor, C Wing, 47/6, M.G. Road, Bangalore, Karnataka, India |
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Parent Company : |
IBM World Trade Corporation, USA |
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Group Companies : |
v
IBM Global
Services (India) Private Limited, Bangalore (Software Development and
Services) v
IBM Group
Companies Worldwide -
International
Business Machines Corporation, USA -
IBM World
Trader corporation, USA -
IBM Argentina -
IBM Japan -
IBM Malaysia -
IBM Taiwan -
IBM Australia -
IBM Canada -
IBM Singapore -
IBM Thailand -
IBM Hongkong -
IBM China -
IBM Denmark -
IBM Germany -
IBM Italy -
IBM United Arab
Emirates -
IBM Austria -
IBM South Korea -
IBM Belgium -
IBM Netherlands -
IBM Africa -
IBM Finland,
etc. |
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Associates/Subsidiaries : |
IBM
Business Consulting Services Private Limited |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
100000000 |
Equity Shares |
Rs.10/- each |
Rs.1000.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
92143699 |
Equity Shares |
Rs.10/- each |
Rs.921.437 millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
|
31.03.2006 |
31.03.2005 |
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|
SHAREHOLDERS FUNDS |
|
|
|
|
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1] Share Capital |
|
921.437 |
921.437 |
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2] Share Application Money |
|
0.000 |
0.000 |
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3] Reserves & Surplus |
|
6709.306 |
4302.318 |
|
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4] (Accumulated Losses) |
|
0.000 |
0.000 |
|
|
NETWORTH |
|
7630.743 |
5223.755 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
53.442 |
129.527 |
|
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2] Unsecured Loans |
|
2453.337 |
974.449 |
|
|
TOTAL BORROWING |
|
2506.779 |
1103.976 |
|
|
DEFERRED TAX LIABILITIES |
|
375.000 |
325.000 |
|
|
|
|
|
|
|
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TOTAL |
|
10512.522 |
6652.731 |
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APPLICATION OF FUNDS |
|
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|
|
|
|
|
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|
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FIXED ASSETS [Net Block] |
|
5276.559 |
4064.851 |
|
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Capital work-in-progress |
|
361.647 |
209.801 |
|
|
|
|
|
|
|
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INVESTMENT |
|
1847.008 |
1862.008 |
|
|
DEFERREX TAX ASSETS |
|
0.000 |
0.000 |
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
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Inventories |
|
723.098 |
714.901 |
|
|
Sundry Debtors |
|
7130.694 |
5870.290 |
|
|
Cash & Bank Balances |
|
869.310 |
1096.073 |
|
|
Other Current Assets |
|
1915.570 |
1506.466 |
|
|
Loans & Advances |
|
3216.604 |
2605.686 |
|
Total Current Assets |
|
13855.276 |
11793.416 |
|
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Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
|
10001.058 |
10469.828 |
|
|
Provisions |
|
827.247 |
808.305 |
|
Total Current Liabilities |
|
10828.305 |
11278.133 |
|
|
Net Current Assets |
|
3026.971 |
515.283 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
0.337 |
0.788 |
|
|
|
|
|
|
|
|
TOTAL |
|
10512.522 |
6652.731 |
|
KEY
RATIOS
|
PARTICULARS |
|
|
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
|
NA |
NA |
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|
Net
Profit Margin (PBT/Sales) |
(%) |
|
NA |
NA |
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|
Return
on Total Assets (PBT/Total
Assets} |
(%) |
|
NA |
NA |
|
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|
|
Return
on Investment (ROI) (PBT/Networth) |
|
|
NA |
NA |
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|
|
Debt
Equity Ratio (Total
Liability/Networth) |
|
|
1.75 |
2.37 |
|
|
|
|
|
|
|
Current
Ratio (Current
Asset/Current Liability) |
|
|
1.28 |
1.04 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
The company was incorporated with a name “Tata Information Systems Limited” and the name has been changed to “Tata IBM Limited” with effect from 29th May 1997. Again the name has been changed to “IBM INDIA LIMITED”, with effect from 20.08.1999.
Initially the company was formed under the Joint Venture Agreement entered between IBM & TATAS, with equity proportion of 50:50 basis.
In June, IBM purchased the equity stake of TATAS with the approval of ‘Foreign Investment Promotion Board, subsequently the name of the company has been changed in August 1999.
The company has 13 offices in India.
Milestones
|
1992 |
IBM enters Indian market through a joint
venture with the Tata Group. The JV company is christened Tata Information
Systems Limited (TISL). |
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1995 |
Accredited ISO Tickit 9001 (recertified to
ISO9001:2000 in year 2001). |
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1997 |
TISL Becomes Tata IBM Ltd, IBM Global
Services launched - offers a range of IT services from IBM including
networking services, outsourcing, education, system integration, consulting,
software development and hardware design. |
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Solution Partnership Center is set up in
Bangalore to help Indian ISVs port application onto proven IBM hardware
platforms like AS/400 and RS/6000. |
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1998 January |
IBM School of Enterprise Wide Computing
launched at Indian Institute of Information Technology (IIIT), to offer
short-term courses to the public and credit courses on enterprise-wide
computing to graduate and undergraduate students. |
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April |
IBM India Research Laboratory established
in New Delhi, located in the sprawling campus of Indian Institute of
Technology (IIT). |
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1999 September |
IBM India Limited formally launched -
after government approves Tata's divestment plan. |
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November |
IBM India launches PC manufacturing in
Pondicherry |
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2000 June |
Global e-business software center set up
in Gurgaon to offer IBM’s customers a range of services including technical
consultation, proof of concept and technical presentations, implementation
planning, solution architecture, application design and development,
deployment, and education and training. |
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November |
IBM Global Financing launched in India to
provide flexible and attractive financing and leasing programs to fund
information technology (IT) requirements of Indian customers. |
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2001 |
India Software Development Labs
established in Pune and Bangalore to develop, enhance and support key IBM
products & technologies with a committed investment of US $ 100 Million.
The state-of-the-art facility is playing an important role in IBM’s Linux Strategy,
working closely with the worldwide Linux Technology Centre. |
|
|
|
|
2002 June |
IGSI recognized as the "Top MNC
Software Services Exporter" and "Top Foreign Equity Company"
in Karnataka for Year 2001-02 by Software Technology Parks of India (STPI),
Bangalore Chapter. |
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|
|
July |
IGSI has also been also recognized as
‘Distinguished IT Exporter' for 2001-02 by MAIT. |
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July |
Dataquest, India's leading trade magazine
has also rated IGSI as the Top MNC Software Services Exporter for Year
2001-2002. |
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|
|
November |
IGSI Exports Services has also been
successfully assessed at People Capability Maturity Level 5 (version 2.0) by
SEI, one of the few organisations in the world to gain this achievement. |
|
|
|
|
2003 January |
IBM India Research Labs launches a
"Technology Center" at its facilities to showcase business
applicability of cutting edge technologies to organisations in India and
ASEAN. |
|
|
|
|
May |
IBM Corporation announced the
establishment of a new center in Bangalore, India to provide technology
design services for advanced chips, cards and systems to companies in India
and across Asia. |
|
|
|
|
May |
IBM India announced the launch of the
'India Smart Centre', a virtual toll-free service centre to provide cutting
edge services and support to the small and medium businesses in metros and
small towns. The center, the first one of its kind, will provide easy to use
repair and restoration services for IBM desktops, and notebooks |
It is a 100% subsidiary of IBM, USA.
BUSINESS
Subject is engaged as manufacturers, importers, exporters and traders of all types of Computer Systems, Hardware, Software, Display Systems, Computer Accessories and Peripherals.
It manufactures, imports, markets and distributes “IBM” Computer products such as personal computers, think pads, netfinity services, AS/400 and RS/6000 servers, MF Servers, Workstations, S/390 Enterprise servers, peripherals such as high-end printers etc., and software products such as DB2, Lotus, Tivoli, etc.
The company’s production status for the year ended 31st March, 2003 was as under :-
Subject imports raw materials for own use.
It distributes/ markets financial software, “ACCORD” from Yojna Inc., USA.
It also focuses on solutions developer programme and business education / training services.
It undertakes/renders system integration, software development, consultancy, etc.
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.44.16 |
|
UK
Pound |
1 |
Rs.86.00 |
|
Euro |
1 |
Rs.57.56 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
-- |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
5 |
|
--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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
53 |
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 |
|