MIRA INFORM REPORT
|
Report Date : |
13.02.2007 |
IDENTIFICATION DETAILS
|
Name : |
I-FLEX SOLUTION LIMITED |
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Formerly Known As : |
CITICORP INFORMATION
TECHNOLOGY INDUSTRIES LIMITED |
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Registered Office : |
Unit
No. 10-11, SDF 1, SEEPZ, Andheri (East), Mumbai- 400096, Maharashtra |
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Country : |
India
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
27.09.
1989 |
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Com. Reg. No.: |
11-53666 |
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CIN No.: [Company Identification No.] |
L72200MH1989PLC053666 |
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Legal Form : |
Public
Limited Liability Company. The company’s shares are listed on the Stock
Exchanges. |
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Line of Business : |
Providers of information
technology solutions. The company develops software, undertakes software
project assignments and software products management. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
RATING
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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 54500000 |
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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 well established and reputed company engaged in the business as
providers of information technology solutions. The company develops software,
undertakes software project assignments and software products management. It
has been making good progress in its performance over the years. Financial
position of the company is comfortable. It is one of the few reputed
information technology companies in India. The company’s trade relations are
fair. Payments
are correct and as per commitments. It can be considered good for business
dealings at usual trade terms and conditions. |
LOCATIONS
|
Registered Office : |
No.
11, SDF 1, SEEPZ, Andheri (East), Mumbai- 400 096, Maharashtra, India |
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Tel. No.: |
91-22-28290170/28291020 |
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Fax No.: |
91-22-28292767 |
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E-Mail : |
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Website : |
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Corporate Office : |
I-Flex
Center, 399 Subhash Road, Vile Parle (East), Mumbai – 400 057, Maharashtra,
India |
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Overseas Offices : |
·
Niderlassung
Deutschaland, Mainzer Landstrabe 49 60329 Frankfurt Am Main, Germany ·
Unit 121, Meridian Place,
Off Marsh Wall, South Quary, London E149FE, United Kingdom ·
27, International
Business Park, #04-05 Primefield Landmark Building, Singapore 609 924 ·
I-Flex Solution Pte.
Limited, 6, 17th Floor, Fukoku Seimei Building, 2-22
Uchisaiwaicho, Chiyoda-Ku Tokyo 100 0011, Japan ·
I-Flex Solutions Inc,
99 Park Avenue Suite 1530, New York, NY 10016 ·
I-Flex Solutions Inc,
60 State Street, Suite 700 Boston, MA 02109 ·
I-Flex Solutions Inc,
10340 Viking Drive, Suite 150 Eden Prairie, MN 55344-7255 ·
I-Flex Solutions Inc,
510 Thomall Street, Suite 380 Edison, NJ 08837, U.S.A. ·
I-Flex Solutions Inc,
9 East, 37 Street, 12t Floor, New York, NY 10016 ·
I-Flex Solutions Inc,
4040 Civic Center Drive Suite 200, San Rafael, CA 94903 ·
I-Flex Solutions Inc,
Office Suite G15, Building No. 9, P O Box 500053, Dubai Internet City, Dubai,
UAE ·
Room 806, Central
Plaza, No. 227 HuangPi Road, North Shanghai, China ·
Level 10, Margaret
Street, Sydney, NSW 2000, Australia ·
I-Flex Solutions Inc.,
5805 Blue Lagoon Drive, Suite 295, Miami, FL 33126, U.S.A. ·
Castek Software Inc.,
1 Yonge St, Suite 2300, Toronto, Ontario, Canada ·
Equinox Corporation 10,
Corporate Park, Suite 130, Irvine, CA 92606, U.S.A. ·
Equinox Global
Services Private Limited DLF
Infinity Tower A, 3rd Floor, DLF Cyber City, Phase II, Gurgaon
122002, Haryana, India |
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Branches : |
·
2nd Floor,
Marchon House, J. B. Nagar, Andheri-Kurla Road, Andheri (East), Mumbai – 400
059, Maharashtra ·
I-Flex Park, Nirlon
Compound, Western Express Highway, Pahadi Village, Goregaon (East), Mumbai –
400 063, Maharashtra ·
I-Flex Annexe, Nirlon
Compound, Western Express Highway, Pahadi Village, Goregaon (East), Mumbai –
400 063, Maharashtra ·
I-Flex Park, Embassy
Business Park, C. V. Raman Nagar, Bangalore – 560 093, Maharashtra ·
4th Floor,
Shankar Narayan Building, 25, M. G. Road, Bangalore – 560 001, Karnataka ·
26.27, Raheja Towers,
9th Floor, M. G. Road, Bangalore – 560 001, Karnataka ·
I-Flex Center, 333,
Kundalahalli Mahadevapura, Bangalore – 560 037, Karnataka ·
2nd Floor,
Pride Silicon Plaza, Senapati Bapat Road, Pune – 411 053, Maharashtra ·
Block 9, Ambrosia-I,
Bhavdhan Khurd, Taluka Mulshi, Pune – 411 021, Maharashtra ·
Block 9A, Ambrosia-II,
Bhavdhan Khurd, Taluka Mulshi, Pune – 411 021, Maharashtra ·
143/1, Uttamar Gandhi
Salai, 4th Floor, Nungambakkam, Chennai – 600034, Tamilnadu ·
Corporate Center A 3rd
to 6th Floor, Andheri Kurla Road, Andheri [East], Mumbai – 400059,
Maharashtra, India ·
Marchon House, 2nd
Floor, J. B. Nagar, Andheri Kurla Road, Andheri [East], Mumbai – 400059,
Maharashtra, India ·
I-Flex Center of
Learning, Plot No. 13, Doddanekundi Industrial Area, Phase II, Whitefield
Road, Mahadevapura Post, Bangalore- 560048, Karnataka, India ·
Pride Silicon Plaza, 2nd
Floor, Next to Chatushringi Senapati Bapat Road, Pune – 411053, India ·
Millennium House, 12,
Trubnaya Street, Moscow 103045, Russia ·
I-Flex Solutions
Limited, Office G – 15, Building 9, P. O. Box 500053, Dubai Internet City,
Dubai, United Arab Emirates [UAE] |
DIRECTORS
|
Name : |
Mr.
Rajesh Hukku |
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Designation : |
Chairman
and Managing Director |
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Name : |
Mr.
Joseph P. Kennedy |
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Designation : |
Director |
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Name : |
Mrs. Tarjani Vakil |
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Designation : |
Director |
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Name : |
Mr.
William T. Comfort, Jr |
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Designation : |
Director |
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Name : |
Mr.
Y. M. Kale |
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Designation : |
Director |
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Name : |
Mr.
Ajay Relan |
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Designation : |
Director
(Alternate to Mr. William T. Comfort, Jr) |
KEY EXECUTIVES
|
Name : |
Mr. Deepak Ghaisas |
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Designation : |
Company
Secretary |
Senior
Management Team:-
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Name : |
Mr.
R. Ravishankar |
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Designation : |
Chief
Executive Officer – International Operations and Technology |
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Name : |
Mr.
Avadhut (Vinay) Ketkar |
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Designation : |
Chief
Accounting Officer |
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Name : |
Mr.
Deepak Ghaisal |
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Designation : |
Chief
Executive Officer – India Operational CR |
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Name : |
Mr.
A. Srinivasan |
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Designation : |
LATAM
and Caribbean Sales |
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Name : |
Mr.
Anand Phanse |
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Designation : |
Citigroup
Relationship North America |
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Name : |
Mr.
Arul Gupta |
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Designation : |
Process
and Quality Management |
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Name : |
Mr.
Cafo Boga |
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Designation : |
North
American Operations |
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Name : |
Mr.
D. Barath |
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Designation : |
System
Integration Prime Sourcing |
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Name : |
Mr.
Darshan KArki |
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Designation : |
President
and Chief Operating Officer (Super Solutions) |
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Name : |
Mr.
Dennsi Roman |
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Designation : |
Japan
and Americas Marketing |
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Name : |
Mr.
Dilip Kulkarni |
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Designation : |
Chief
Compliance Officer |
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Name : |
Mr.
Dinesh Shetty |
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Designation : |
Administration |
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Name : |
Mr.
G. Narasimhan |
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Designation : |
Customer
Fulfilment Europe, Africa |
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Name : |
Mrs.
Gayathri Parthasarathy |
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Designation : |
Development
and Integration Services Prime Sourcing |
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Name : |
Mr.
George Thomas |
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Designation : |
Customer
Fulfilment and Solutions Architecure, North America |
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Name : |
Mr.
Gratian Perez |
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Designation : |
Corporate
Accounts and MicroBanker Developmetn/Support |
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Name : |
Mr.
Joseph John |
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Designation : |
Banking
Products Division |
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Name : |
Mr.
Kishore Kapoor |
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Designation : |
Asia-Pacific
Sales, Chief Executive Officer, I-Flex Solutiosn Private Limited |
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Name : |
Mr.
Makarand Padalkar |
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Designation : |
Chief
of Staff and Investor Reveleus |
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Name : |
Mr.
Manmath Kulkarni |
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Designation : |
Flexcube
Technology and Architecture |
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Name : |
Mr.
NRK Raman |
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Designation : |
Global
Sales |
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Name : |
Mr.
Nandkumar Kulkarni |
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Designation : |
Payment
Systems Group and Pune Operations |
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Name : |
Mr.
R. Mahesh |
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Designation : |
Reveleus
Product Engineering |
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Name : |
Mr.
R. NArasimhan |
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Designation : |
Customer
Fulfilment, Asia Pacific, Middle East and India |
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Name : |
Mr.
R. Ramamurthi |
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Designation : |
Pre-Sales
Consulting and Middle East Sales |
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Name : |
Mr.
R. Ramnarayanan |
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Designation : |
Prime
Sourcing Operations, North America |
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Name : |
Mr.
Rakesh Khanna |
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Designation : |
Flexcube
Product Marketing |
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Name : |
Mr.
S. Haribaran |
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Designation : |
Infrastructure
and Support Services |
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Name : |
Mr.
S. Ramakrishnan |
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Designation : |
Chief
Executive Officer, Reveleus Division |
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Name : |
Mr.
Sajal Mukherjee |
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Designation : |
North
America, Sales and Chief Executive Officer, Super Solutions |
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Name : |
Mr.
Swati Srinivasan |
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Designation : |
Software
Quality Assurance |
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Name : |
Mr.
Thomas Mathew |
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Designation : |
Knowledge
Management |
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Name : |
Mr.
V. Sentil Kumar |
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Designation : |
Europe
Sales and Chief Executive Officer – I Flex Solutions B.V. |
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Name : |
Mr.
B. Shankar |
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Designation : |
Prime
Sourcing Division |
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Name : |
Mr.
V. Srinivasan |
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Designation : |
Corporate
Development |
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Name : |
Mr.
Venkata Subramanian |
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Designation : |
Customer
Fulfilment, Retail Banking |
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Name : |
Mr.
Vijay Sharma |
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Designation : |
I-Flex
Consulting |
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Name : |
Mr.
Vikram Gupta |
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Designation : |
E-Solutions
Prime Sourcing |
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Name : |
Mr.
Vivek Govilkar |
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Designation : |
Human
Resources and Training |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
Foreign Promoters |
36422788 |
47.74 |
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Mutual Funds and UTI |
2668809 |
3.50 |
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Banks, Financial
Institutions, Insurance Companies, Central / State Government Institution/
Non – Government Institution |
260702 |
0.34 |
|
Foreign Institutional
Investors |
13920383 |
18.25 |
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Private Corporate Bodies |
983788 |
1.29 |
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Indian Public |
17795037 |
23.33 |
|
Non Resident
Indiana/Overseas Corporate Bodies |
4080225 |
5.35 |
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Others
– Cleaning Member |
156635 |
0.20 |
BUSINESS DETAILS
|
Line of Business : |
Providers
of information technology solutions. The company develops software,
undertakes software project assignments and software products management. |
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Products : |
v
Software Development
Services v
Software Project
Assignments v
Software Product
Management |
GENERAL INFORMATION
|
No. of Employees : |
Around
2438 |
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Bankers : |
·
Bank of India ·
Citibank N.A. ·
HDFC Bank Limited ·
Kotak Mahindra Bank
Limited ·
State Bank of
Mauritius Limited ·
YES Bank Limited |
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Banking Relations : |
Satisfactory
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Auditors : |
S. R. Batliboi &
Associates Chartered
Accountants Internal
Auditors
Mukund M. Chitale &
Company Chartered
Accountants |
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Subsidiaries : |
·
I-Flex Solutions B.V. World
Trade Center, B Tower, 12th Floor, Strawinskylaan 1245, 1077 XX
Amsterdam, The Netherlands ·
I-Flex Solutions Pte
Limited 27
International Business Park, # 04-05 Primefield Landmark
Building, Singapore 609 924 ·
I-Flex America Inc
& I-Flex Solutions Inc 99
Park Avenue, Suite 1530, New York 10016, U.S.A. ·
Supersolutions
Corporation 10050
Crosstown Circle, Suite 600, Eden Prairle, MN 55344, U.S.A. ·
I-Flex Processing
Services Limited ·
ISP Internet Mauritius
Company 10, Free Felix de Valois Street, Port Louis,
Mauritius ·
I-Flex Center 399, Subhash Road, Vile Parle [East], Mumbai –
400057, Maharashtra, India |
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Affiliates : |
·
Login SA ·
Orbi Tech Limited ·
OrbiTech Solution
Limited ·
Citigroup Inc ·
Citicorp Technology
Holdings Inc., USA ·
Citicorp Information
Technology, Inc ·
E-Serve International
Limited |
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Joint Venture : |
·
Flexcel International
Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10000000 |
Equity Shares |
Rs. 5/- |
Rs. 500.000 millions |
Issued, Subscribed
& Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
76288367 |
Equity Shares |
Rs. 5/- |
Rs. 381.442 millions |
FINANCIAL
DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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|
SHAREHOLDERS FUNDS |
|
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|
|
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1] Share Capital |
381.442 |
374.400 |
373.700 |
|
|
2] Reserves & Surplus |
13245.866 |
10877.500 |
9291.800 |
|
NETWORTH
|
13627.308 |
11251.900 |
9665.500 |
|
|
LOAN FUNDS |
|
|
|
|
|
1]
Secured Loans |
0.000 |
0.000 |
0.000 |
|
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2]
Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
TOTAL
BORROWING
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
13627.308 |
11251.900 |
9665.500 |
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|
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APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
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FIXED ASSETS [Net Block]
|
1633.951 |
1321.500 |
918.200 |
|
Capital work-in-progress
|
581.356 |
85.600 |
113.600 |
|
|
|
|
|
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INVESTMENT
|
413.536 |
425.400 |
547.900 |
|
DEFERREX
TAX ASSETS
|
70.762 |
0.000 |
0.000 |
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Sundry Debtors
|
7458.015
|
6200.800
|
3957.000 |
|
|
Cash & Bank Balances
|
5579.881
|
5393.900
|
5275.800 |
|
|
Other Current Assets
|
257.437
|
0.000
|
0.000 |
|
|
Loans & Advances
|
2537.839
|
1844.100
|
1352.700 |
Total Current Assets
|
15833.172
|
13438.800 |
10585.500 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
4416.391
|
3558.500
|
2177.700 |
|
|
Provisions
|
489.078
|
460.900
|
322.000 |
Total Current Liabilities
|
4905.469
|
4019.400
|
2499.700 |
|
Net Current
Assets
|
10927.703
|
9419.400
|
8085.800 |
|
|
|
|
|
|
|
TOTAL
|
13627.308 |
11251.900 |
9665.500 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
|
11538.224 |
9319.300 |
7172.300 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
2895.101 |
2471.100 |
2253.900 |
Provision for Taxation
|
487.115 |
494.700 |
495.100 |
Profit/(Loss) After Tax
|
2407.986 |
1976.400 |
1758.800 |
|
|
|
|
|
Export Value
|
22166.106 |
17609.314 |
N.A. |
|
|
|
|
|
Import Value
|
146.928 |
139.733 |
N.A. |
|
|
|
|
|
Total Expenditure
|
8942.331 |
6488.200 |
4918.400 |
QUARTERLY
RESULTS
|
PARTICULARS |
30.06.2006 (1st Qtr.) |
30.09.2006 [2nd Qtr.] |
31.12.2006 [3rd Qtr.] |
|
Sales Turnover |
3083.900 |
3968.000 |
3955.600 |
|
Other Income |
103.900 |
129.100 |
78.600 |
|
Total Income |
3187.800 |
4097.100 |
4034.200 |
|
Total Expenditure |
2647.300 |
2839.800 |
2954.200 |
|
Operating Profit |
540.500 |
1257.300 |
1080.000 |
|
Interest |
0.000 |
0.000 |
0.000 |
|
Gross Profit |
540.500 |
1257.300 |
1080.000 |
|
Depreciation |
127.900 |
136.600 |
142.100 |
|
Tax |
57.100 |
111.300 |
27.400 |
|
Reported PAT |
355.500 |
1009.400 |
910.500 |
Notes
200606 Quarter 1
Interest Indicates Interest & Other
Income Depreciation indicates Depreciation & Amortisation EPS is Basic
Status of Investor Complaints for the quarter ended June 30, 2006 Complaints
Pending at the beginning of the quarter 01 Complaints Received during the
quarter 34 Complaints disposed off during the quarter 34 Complaints unresolved
at the end of the quarter 01 1. The above results for the quarter ended June
30, 2006 have been approved by the Audit Committee and taken on record by the
Board at its meeting held on July 28, 2006. There are no qualifications in the
report issued by the Auditors. 2. Details of expenses for the Quarter ended
June 30, 2006 Employee Costs: Rs 1689.723 million Travel related expenses, net
of recoveries: Rs 413.730 million 3. Particulars of interest and other income
(expenses) for the Quarter ended June 30, 2006 Interest on deposit and bonds:
Rs 97.030 million Exchange gain(loss),net: Rs (1.757) million Miscellaneous
Income: Rs 6.939 million Total : Rs 102.212 million 4. Out of the projected
utilization of IPO proceeds or Rs 1780.80 millions, the Company has utilized
funds of Rs 1307.60 million for its infrastructure projects at Mumbai and
Bangalore and other specified purposes. 5. During the quarter ended June 30,
2006, the Company acquired all equity shares of i-flex processing services
limited which now is a 100% subsidiary of the Company. 6. Effective April 01,
2006 the Company adopted Accounting Standard 15 (AS) (Revised), Employee benefits
issued by the Institute of Chartered Accountants of India. Accordingly, the
Company has recorded charge for compensated absence of Rs 27581 for the quarter
ended June 30, 2006. Further, in accordance with the transitional provision of
AS 15 (Revised), the compensated absence obligation pertaining to years prior
to April 01, 2006 amounting to Rs 87763 has been adjusted against general
reserve. 7. Figures have been regrouped/reclassified wherever necessary.
200609 Quarter 2
Expenditure Includes Cost of Revenues
Rs 2149.363 million Selling & Marketing Expenses Rs 187.530 million General
& Administrative Expense Rs 502.847 million Interest Indicates Interest
& Other Income Depreciation indicates Depreciation & Amortisation EPS
is Basic Status of Investor Complaints for the quarter ended September 30, 2006
Complaints Pending at the beginning of the quarter 01 Complaints Received
during the quarter 39 Complaints disposed off during the quarter 37 Complaints
unresolved at the end of the quarter 03 1. The above audited results for the
quarter and half year ended September 30, 2006 have been approved by the Audit
Committee and taken on record by the Board at its meeting held on October 20,
2006. There are no qualifications in the report issued by the Auditors. 2.
Details of expenses for the Quarter ended September 30, 2006 Items exceeding
10% of aggregate expenditure Employee Costs: Rs 1767.985 million Travel related
expenses, net of recoveries: Rs 486.877 million 3. Particulars of interest and
other income (expenses) for the Quarter ended September 30, 2006 Interest
Income: Rs 94.954 million Foreign Exchange gain/(loss),net: Rs 29.161 million
Miscellaneous Income/ (Expenses) : Rs 4.927 million Total : Rs 129.042 million
4. Out of the projected utilization of IPO proceeds or Rs 1780.800 millions,
the Company has utilized funds of Rs 1313.606 million for its infrastructure
projects at Mumbai and Bangalore and other purposes. 5. During the six month
period ended September 30, 2006 the Company acquired all equity shares of
I-flex Processing Services Ltd which now is a 100% subsidiary of the Company.
6. At the Extraordinary General Meeting of the Company held on September 12,
2006 the shareholders approved issue of 4,447,418 equity shares of the Company
of face value of Rs 5/- each, for cash, at a price of Rs 1307.50 per share to
Oracle Global (Mauritius)Ltd (OGM) the Promoter of the Company, on preferential
basis. Thereafter, the Company has, on September 14, 2006, allotted 4,447,418
(5.49%) equity shares to OGM With allotment of these shares, OGM held 55.07% of
the paid-up share capital of the Company as on September 30, 2006. 7. Out of
the funds received from OGM against preferential allotment of equity shares,
the Company has utilised US$ 122.6 million towards acquisition of Mantas Inc.,
USA on October 02, 2006 through one of its subsidiaries. Accordingly, the
Company has not accounted this acquisition in its consolidated financial
statements in the current quarter but will record it in the quarter ended
December 31, 2006. 8. Effective April 01, 2006 the Company adopted Accounting
Standard 15 (AS') (Revised). 'Employee benefits' issued by the Institution of
Chartered Accountants of India. Accordingly the Company has recorded charge for
compensated absence at Rs 36,712 for the six month period ended September 30,
2006. Further, in accordance with the transitional provision of AS 15
(Revised), the compensated absence obligation pertaining to years prior to
April 01, 2006 amounting to Rs 93,378 has been adjusted against general
reserve. 9. Figures have been regrouped / reclassified wherever necessary.
200612 Quarter 3
Expenditure Includes Cost of Revenues
Rs 2293.50 million Selling & Marketing Expenses Rs 160.00 million General
& Administrative Expense Rs 464.40 million Interest Indicates Interest
& Other Income Depreciation indicates Depreciation & Amortisation EPS
is Basic Status of Investor Complaints for the quarter ended December 31, 2006
Complaints Pending at the beginning of the quarter 03 Complaints Received during
the quarter 11 Complaints disposed off during the quarter 13 Complaints
unresolved at the end of the quarter 01 1. The above audited results for the
quarter and nine months ended December 31, 2006 have been approved by the Audit
Committee and taken on record by the Board at its meeting held on January 19,
2006. There are no qualifications in the report issued by the Auditors. 2.
Details of expenses for the Quarter ended December 31, 2006 Items exceeding 10%
of aggregate expenditure Employee Costs: Rs 1848.50 million Travel related
expenses, net of recoveries: Rs 468.90 million 3. Particulars of interest and
other income (expenses) for the Quarter ended December 31, 2006 Interest
Income: Rs 78.60 million Foreign Exchange gain/(loss),net: Rs (36.30) million
Total: Rs 42.30 million 4. Out of the projected utilization of IPO proceeds of
Rs 1780.80 millions, the Company has utilized funds of Rs 1394.30 million for
its infrastructure projects at Mumbai and Bangalore and other purposes. 5.
i-flex is a subsidiary of Oracle Global (Mauritius) Ltd (OGM) which held 54.80%
ownership interest in the Company as at December 31, 2006. During December
2006, OGM made an open offer to the shareholders of the Company offering to buy
the shares held by them. OGM is in the process of finalizing the modalities and
a report on the number of shares accepted by OGM is awaited. 6. Effective April
01, 2006 the Company adopted Accounting Standard 15 (AS) (Revised). Employee
benefits issued by the Institution of Chartered Accountants of India.
Accordingly the Company has recorded charge for compensated absence at Rs
540.19 for the nine months period ended December 31, 2006. Further, in
accordance with the transitional provision of AS 15 (Revised), the compensated
absence obligation pertaining to years prior to April 01, 2006 amounting to Rs
933.78 has been adjusted against general reserve. 7. Figures have been
regrouped / reclassified wherever necessary.
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt
Equity Ratio |
0.00 |
0.00 |
0.00 |
|
Long
Term Debt Equity Ratio |
0.00 |
0.00 |
0.00 |
|
Current
Ratio |
3.29 |
3.69 |
4.88 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
4.67 |
4.87 |
5.55 |
|
Inventory
|
0.00 |
0.00 |
0.00 |
|
Debtors |
1.69 |
1.78 |
2.12 |
|
Interest
Cover Ratio |
0.00 |
0.00 |
0.00 |
|
Operating
Profit Margin (%) |
28.11 |
30.31 |
33.46 |
|
Profit
Before Interest and Tax Margin (%) |
24.75 |
27.37 |
32.93 |
|
Cash
Profit Margin (%) |
24.23 |
24.84 |
26.22 |
|
Adjusted
Net Profit Margin (%) |
20.87 |
21.89 |
25.70 |
|
Return
on Capital Employed (%) |
22.96 |
23.63 |
25.27 |
|
Return
on Net Worth (%) |
19.36 |
18.90 |
19.72 |
STOCK PRICES
|
Face
Value |
Rs.
5/- |
|
High |
Rs.
1960.00/- |
|
Low |
Rs.
1901.50/- |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Subject
was incorporated on 27th September, 1989 at Mumbai in Maharashtra
under the name and style of Citicorp Information Technology Industries Limited
having Company Registration Number 53666.
The
name of the company has been changed to the present.
I-flex solutions is a provider
of information technology solutions to the financial services industry
worldwide through a comprehensive range of products and customized service
offerings.
I-flex's portfolio of offerings comprise the FLEXCUBE product suite for
consumer, corporate, investment and internet banking, asset management, and
investor servicing; custom application software development and deployment,
maintenance and support services (both onsite and offshore) and business and IT
consulting.
I-flex has provided IT solutions and services to 345 customers in over 80
countries. I-flex's flagship product, FLEXCUBE is the choice of 111 customers
worldwide. FLEXCUBE has been ranked among the world's top-two largest selling
wholesale back-office banking systems in International Banking Systems (IBS) UK
Sales League Tables for 1999, 2000 and 2001. FLEXCUBE first achieved this
ranking in 1999 within two years of its launch. FLEXCUBE has also been ranked
among the top-two retail back office banking systems by the London based Retail
Banking Systems (RBS) for 2001.
The FLEXCUBE suite includes: FLEXCUBE, a banking back office and transaction
processing system, FLEXCUBE @, a multi channel e-finance platform that delivers
services over the Internet and FLEXCUBE Information Center, a Business
Intelligence solution with a set of specialized analytical applications.
The company also offers financial institutions customized solutions through its
domain and technology Centers of Excellence, which encompass areas such as
Business Intelligence, CRM, Development & Integration Services, e-services,
Insurance and Payment Systems. Supported by a mature, quality led process
assessed at SEI CMM Level 5, i-flex draws on its rich functional and technology
expertise to offer services to customers in the financial services world.
i-flex Consulting, the consulting arm, offers Strategic and Business consulting
to customers in the financial services industry.
With more than 2000 employees and eight development centers in India, i-flex is
ranked among the top 20 software exporters in India (Source- NASSCOM report
2001). i-flex has a strong global reach, with sales, marketing and support
presence covering over 16 overseas locations including 3 subsidiaries (i-flex
solutions inc. in the US, i-flex solutions b.v in the Netherlands, and i-flex
solutions pte. ltd. in Singapore). In addition, i-flex is represented in over
50 countries through more than 30 corporate business partners. i-flex also has
strong alliance and implementation relationships with industry leaders
including Accenture, Compaq, Hewlett Packard, IBM, Intel, Microsoft, Oracle,
and Sun Microsystems.
The company went for IPO through Book Building route in 2001-02.It had allotted
3360000 fresh equity shares of Rs.5 each at Rs.530 per share and had
facilitated an Offer for Sale of the existing shareholders 6,01,700 shares of
Rs.5 each during its IPO. The SDC were opened in India-The Chennai Development
Center covering an area of 30,687 Sq. ft. which can accommodate 326 people and
Bangalore Development Center to set 309 people were opened during
2001-02.
The year 2003-04 was an year of "Pour of Awards" to the company as it
has received several awards including the prestigeous "Golden Peacock
National Quality Award 2003" from the World Congress on Total quality. The
company has also bagged an award "Emerging Company of the year" from
The Economic Times. The company was ranked among the top 250 companies in
Asia-Pacific by Deloitte Touche Tohmatsu for the second year in a row.
The company has acquired SuperSolutions Corp (USA) during the year 2003-04 and
added a consumer lending solution, the Daybreak Lending Suite, to the company's
portfolio.
The company has opened its office in Mascow during December 2004 and this is an
important milestone in company's plan to grow its customer engagements in the
Commonwealth of Independent States (CIS) region, which currently comprising 12
countries including Russian Federation, Ukraine & Belarus. The company has
also plans to use the region as a base for talented software development
resources.
Performance:
On an unconsolidated basis, the Company's revenue grew to Rs. 11,538.22 million
during the financial year 2005-06 from Rs. 9,028.60 million last year, a growth
of 28%. The net income before taxes and prior period item stood at Rs. 2,895.11
million during the year against Rs. 2,471.11 million last year, translating
into a growth of 17%. The Company's net income after taxes and before prior
period item increased to Rs. 2,447.54 million this year from Rs. 1,976.40
million last year, a growth of 24%.
Revenue as per Indian GAAP Consolidated financials were Rs. 14,823 million this
year, an increase of 30% as compared to Rs. 11,385.93 million last year. The
Earnings before taxes on a consolidated basis were Rs. 3,028.46 million this
year as compared to Rs. 2,952.22 million last year, an increase of 2.6%. The
Company's net income before prior period items increased to Rs. 2,473.93
million this year as compared to Rs. 2,324.33 million last year, an increase of
6.4%.
Dividend:
The Directors are pleased to recommend a dividend of Rs. 5/- per share (100% on
par value of Rs.5/-). The dividend, if approved at the forthcoming Annual
General Meeting, will be paid out of the profits of the Company to those
shareholders whose names appear on the Register of Members as on the Record
Date.
The total amount of dividend payable is Rs. 381.44 million this year against
Rs. 374.40 million for the previous year. Under the current provisions of the
Indian Income Tax Act, 1961, receipt of dividend is tax-free in the hands of
the shareholders.
Oracle's acquisition of i-flex's shares:
In August 2005, Oracle announced that it would buy Citigroup's equity interest
in i-flex held through OrbiTech Limited, and make an open offer to purchase up
to an additional 20 percent ownership from existing i-flex shareholders. In
November 2005, OrbiTech Limited sold 32,236,000 shares representing 42.41% paid
up capital of the Company to Oracle Global (Mauritius) Limited
('Oracle').
Oracle also acquired 517,375 shares (0.68%) from the shareholders in the open
offer. Accordingly, in November 2005, Oracle's holding in the Company was
32,753,375 shares (43.08% of paid up capital of the Company).
By March, 2006, Oracle further acquired 3,450,141 shares of the Company.
Accordingly, its shareholding increased to 36,422,788 shares (47.74% paid up
capital of the Company).
By April 13, 2006, Oracle acquired 2,424,632 additional shares of the Company
taking its total to 38,628,148 shares (50.6% paid up capital of the Company).
By virtue of Oracle's acquisition of 50.6% of paid up capital of the Company,
i-flex has become a subsidiary of Oracle Global (Mauritius) Limited.
As of date, Oracle holds 40,148,312 equity shares of the Company (52.47% of
paid up capital of the Company) and i-flex is a majority owned subsidiary of
Oracle.
The Company's relationship with Oracle gives i-flex better access to leading
financial institutions around the world and gives those financial institutions
access to an unequalled set of IT solutions and capabilities. In addition,
Oracle will re-sell and jointly market the Reveleus Basel II Solution which
enables financial institutions to address key emerging regulatory requirements.
Share capital:
In September 2004, your Company had issued and allotted 91,347 warrants/options
to IBM Global Services India Private Limited ('IBM') with an option to convert
them into equal number of equity shares of face value of Rs. 5/- each within a
period of 18 months. On February 9, 2006, IBM exercised its option to convert
these warrants/options into equity shares. After completing the necessary
formalities, the Company in turn allotted 91,347 equity shares to IBM on
February 28, 2006.
During the year the Company also allotted 1,317,370 equity shares to its
employees who exercised their options under the Employee Stock Options Plan of
the Company.
As a result, the paid-up equity share capital of the Company increased to
76,288,367 equity shares of face value of Rs. 5/- each as on March 31,
2006.
Acquisitions, alliances and joint
ventures:
i-flex America Inc., a Wholly Owned Subsidiary of the Company, acquired a
76.77% stake in Castek Software Inc. ('Castek') during the year. Castek
specializes in core-business processing systems for large and mid-size property
and casualty insurance carriers which include insurance product and process
configuration, policy administration, customer management, billing and claims
management.
The Company strengthened its solutions offering by buying the intellectual
property rights for the Operational Risk Tool Suite (ORTOS) from Capco, a
consulting firm in Europe. i-flex also established an alliance with EDB
Business Partners ASA in the Nordic region to jointly offer retail banking
solutions. These alliances help i-flex broaden its portfolio and fortify its
positioning as the leading, specialized IT solutions provider to the financial
institutions worldwide.
Subsidiaries:
As you are aware, the Company has subsidiaries in the USA, Singapore and the
Netherlands which are strengthening marketing and sales efforts in their
respective regions. The Company also has operating subsidiaries -
SuperSolutions and Equinox - which are in the advanced investment stage.
i-flex Processing Services Limited ('IPSL') became a subsidiary of the Company
in April 2006. IPSL will have KPO businesses under its fold in future.
Pursuant to Section 212 of the Companies Act, 1956, the Company is required to
attach to its Annual Report, the Directors' Report and financial statements of
its subsidiaries. Since the Company presents audited consolidated financial
statements under Indian GAAP and US GAAP in its Annual Report, the Company had
applied to the Central Government of India for an exemption from attaching the
Directors' Report, Balance Sheet and Profit and Loss Account of its
subsidiaries to the Annual Report. The Central Government has vide its letter
no. 47/162/2006-CL-III dated June 28, 2006 granted the exemption for the year
ended March 31, 2006. Accordingly, the financial statements of the subsidiaries
of the Company are not attached to the Annual Report of the Company. The
Company undertakes that the financial statements of the subsidiary companies
for the year ended March 31, 2006 will be made available to the members on
request at the Registered Office/Corporate office of the Company and same will
be kept open for inspection by any member during the office hours of the
Company.
Fixed Assets
Tangible Assets, Land,
Buildings, Computer Equipments, Electrical and Office Equipments, Furniture and
Fixtures, Leased Vehicles, etc.
AS PER WEBDETAILS
I-Flex®
solutions (Reuters: IFLX.BO & IFLX.NS) is a world leader in providing IT
solutions to the financial services industry. i-flex has serviced over 540
customers in more than 110 countries.
I-Flex's
range of products and customized services enable financial institutions to cut
costs, respond rapidly to market needs, enhance customer service levels and
mitigate risk.
I-Flex's portfolio of offerings comprise FLEXCUBE®, a
complete product suite for retail, consumer, corporate, investment and internet
banking, asset management, and investor servicing. Since its launch in 1997,
more than 225 financial institutions in over 90 countries have chosen FLEXCUBE.
FLEXCUBE has been ranked the world's No. 1 selling banking solution for three
consecutive years, 2002, 2003, and 2004 by the UK-based International
Banking Systems (IBS). FLEXCUBE was also named the "Core Banking Solution
of the Year" and "Application of the Year" (2003) by the Banker
(published by the Financial Times Group, London).
Daybreak™ is a comprehensive lending system that automates all
aspects of financing for the consumer lending industry. Daybreak is designed to
handle specialized lending requirements, enabling lending institutions to
create new revenue streams and increase profits. Daybreak can be implemented as
a specialized point solution or as part of a core banking solution such as
FLEXCUBE.
Reveleus™, the industry's only metadata-driven information
management infrastructure, coupled with a suite of integrated analytical
applications, is a business intelligence solution. Reveleus improves quality
and consistency of information, thereby helping organizations reduce risk and
improve efficiencies in information gathering, analysis and distribution.
PrimeSourcing™ is i-flex's customized application software
development and deployment methodology. Prime Sourcing allows financial
institutions to cut costs and reduce risk because it is fuelled by SEI-CMM
Level 5 processes and research from Centers of Excellence that remain focused
on domain and technology areas such as Business Intelligence, CRM, Client
Server and IBM Mainframe technologies, Enterprise Application Integration,
Insurance and Payment Systems, and e-services.
I-Flex
Consulting and System
Integration group offers an end-to-end consulting partnership. It provides
comprehensive business and technology solutions that enable financial services
enterprises to create new business models, enhance competitive advantage in the
digital marketplace, and implement efficient ways to transact business. It
provides business and IT strategy consulting, business and technology
consulting and process and quality consulting.
i-flex's
Technology Deployment & Management
Services (TDMS) Group designs,
develops, deploys and manages Information Technology (IT) infrastructure for
financial institutions. i-flex's TDMS services are based on the COBIT (Control
Objectives for Information and related Technology) model, a globally accepted
standard for IT services delivery, and incorporate best practices from other
standards such as ITIL (IT Infrastructure Library), SAS 70 (Statement on
Auditing Standards No.70), and BS7799 (ISO17799).
I-Flex
has over 4,700 employees operating from 14 development centers across India,
Singapore and New York . The company has a strong global reach with a sales,
marketing and support presence covering 22 overseas location with 3 subsidiaries
(I-Flex solutions inc. in the USA, I-Flex Solutions B.V. in the Netherlands,
I-Flex Solutions Pte. limited in Singapore and Super Solutions Corporation in
the USA). In addition, I-Flex is represented in over 50 countries through 30
corporate business partners. I-Flex also has strong alliance and/or
implementation relationships with industry leaders such as Hewlett Packard,
IBM, Intel, Microsoft and Oracle.
I-Flex
and FLEXCUBE are registered trademarks of I-Flex Solutions. Reveleus, Daybreak
and PrimeSourcing are trademarks of I-Flex Solutions and are registered in
several countries.
All company and product names are trademarks of the respective companies with which they are associated.
Press Releases :
Oberbank Bank
chooses IBM and I-Flexto launch new branches in Hungary
08-Feb-07
Bank chooses IBM System p running FLEXCUBE® for greater
scalability and faster ROI
Vienna, Austria, February 8, 2007 - IBM (NYSE:IBM) and i-flex®
solutions (Reuters: IFLX.BO & IFLX.NS) today announced that Oberbank, an
Austrian bank focused on international expansion and a member of the "3
Banken Gruppe" (3 banks group), has selected IBM's System p570 running
i-flex's flagship product, FLEXCUBE, for its core banking operations in
Hungary. The technology will support Oberbank's globalization efforts in
Hungary.
Oberbank is currently transforming from a regional to a multinational bank to
benefit from the economic opportunities that are emerging in Eastern Europe. In
an effort to gain flexibility, agility and improve customer service, Oberbank
is moving away from its previous banking application in Eastern Europe to
FLEXCUBE from I-Flex- an IBM Business Partner, and the world's leading provider
of technology solutions to the global financial services industry.
FLEXCUBE will become the core banking solution for both commercial and personal
accounts at several new branches opening in Hungary in the next 12 months. One
of several advantages of the new application is real-time updates of deposit
and withdrawal data at ATM's, which will improve customer service. FLEXCUBE
also provides reduced total cost of ownership, a fast deployment time for new
products and sales channel strategies, as well as high flexibility and
scalability. The functional blocks of FLEXCUBE are based on the concept of
Service Oriented Architecture (SOA) allowing easy integration with legacy
systems.
IBM Global Technology Services and IBM Global Business Services
will install FLEXCUBE on an IBM System p570.
Once the project is completed, and pending the decision of local branches, IBM
will have the opportunity to implement the infrastructure in other countries -
reusing the same assets and skills. The first branch is expected to be ready
for business in April 2007.
"As part of Austria's 3 Banken
Grouppe, they focus on customer satisfaction, growth and profitability
in both existing and new markets. With this growth comes challenges, which is
why they selected IBM and I-Flex both experienced partners that understand
their needs and the needs of their customers", said Bernhard Reiter-
Senior General Manager, Information Technology, Oberbank.
"IBM is deeply committed to developing innovative solutions to help its
clients expand to new, emerging markets," said Johannes Koch- Global
Technology Services, IBM Austria. "IBM's collaboration with Oberbank, one
of the leaders in the banking industry, will enable the bank to quickly respond
to new market opportunities and challenges."
The contract was signed in the fourth quarter of 2006.
About Oberbank
Oberbank AG was established in 1869. Tradition and progress - these are the
twin factors which have characterized the Oberbank's growth to become Austria's
principal regional bank outside Vienna. Besides their long-standing commitment
to their private customers, the Oberbank has always been an effective and
dynamic partner of local business - both of large-scale industrial concerns and
of small and medium-sized enterprises in one of the most important economic
areas. Moreover, their 2500 correspondent banks all around the world make them
an important partner for international business. They are where their customers
need them - 114 branches spread in Austria over Upper Austria, Salzburg
Provinces, Vienna, Lower Austria, Burgenland, Styria and in Germany/Bavaria as
well as in the Czech Republic are the proof. In Budapest/Hungary and
Bratislava/Slovakia lease finance companies with nationwide sales units
supplement Oberbank's regional expansion.
About IBM
I-Flexstays
upbeat on Oracle effect
Bureau
Bangalore
, Nov. 30
Contrary
to expectations, Oracle's acquisition of 55 per cent stake in I-Flex Solutions
Limited has not yet translated into significant business growth for the latter.
However, I-Flex Solutions remains optimistic.
The
CEO of I-Flex's Indian operations, Mr Deepak Ghaisas, told newspersons that he
saw strong traction coming from the sales team of Oracle.
Oracle
had acquired Citigroup's 42.41 per cent stake in I-Flexlast year and had
subsequently increased its stake through open market purchases. At present,
Oracle owns around 55 per cent stake in I-Flex and has made an open offer for
20 per cent more at Rs 1,475 per share, which has been delayed.
"Oracle
hasn't started showing that impact on the core-banking side of the business.
But in the case of Reveleus, Oracle has helped us clinch Wachovia Bank as a
customer," he said. Reveleus is I-Flex's risk management solutions
portfolio.
Training programmes
Further,
Mr Ghaisas said the training programmes were still going on. "They are
still going through the programme of `go to market'. But clearly they are
seeing strong traction of sales team from Oracle," Mr Ghaisas said.
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.44.09 |
|
UK
Pound |
1 |
Rs.86.59 |
|
Euro |
1 |
Rs.57.92 |
SCORE
& RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP
CAPITAL |
1~10 |
6 |
|
OPERATING
SCALE |
1~10 |
5 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT
LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT
POINTS |
|
|
|
--BANK
CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER
ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT
POINTS |
|
|
|
--SOLE
DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT
ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
52 |
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 |
|