MIRA
INFORM REPORT
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Report Date : |
02.07.2007 |
IDENTIFICATION DETAILS
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Name : |
HUAWEI TECHNOLOGIES INDIA PRIVATE LIMITED |
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Registered Office : |
Level 3, Leela Galleria, Leela Palace, # 23 Airport Road, Bangalore – 560008,
Karnataka |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
04.09.2000 |
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Com. Reg. No.: |
08-27722 |
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CIN No.: [Company
Identification No.] |
U27200KA2000PTC027722 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BLRH00723C |
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Legal Form : |
Private Limited Liability Company.
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Line of Business : |
Subject is engaged in Providing Software Development Services. |
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 3700000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed company having satisfactory
track records. Directors are reported as experienced and respectable businessmen.
Trade relations are reported as fair. Business is active. Payments are
usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
Level 3, Leela Galleria, Leela Palace, # 23 Airport Road, Bangalore –
560008, Karnataka |
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Tel. No.: |
91-80-5217152 / 41781770 |
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Fax No.: |
91-80-5278248 / 25216824 |
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E-Mail : |
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Website : |
DIRECTORS
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Name : |
Mr. Wenwei Xu |
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Designation : |
Director |
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Address : |
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Date of Birth/Age : |
23.08.1957 |
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Date of Appointment : |
06.09.2000 |
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Name : |
Mr. Tian Feng Hong |
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Designation : |
Director |
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Address : |
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Date of Birth/Age : |
18.06.1966 |
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Date of Appointment : |
06.09.2000 |
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Name : |
Mr. Huang Ji |
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Designation : |
Director |
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Address : |
M 35, Diamond District, |
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Date of Birth/Age : |
13.05.1969 |
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Date of Appointment : |
15.09.2005 |
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Name : |
Mr. Fei Min |
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Designation : |
Director |
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Address : |
23D, Building B, |
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Date of Birth/Age : |
07.11.1964 |
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Date of Appointment : |
30.10.2006 |
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Name : |
Mr. Meng Wanzhou |
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Designation : |
Additional Director |
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Address : |
Flat D, 35/F, Blk 1 Island Harbourview, Hoi Fai Road, Tai Kok Tsui Kln,
Shenzhen, China |
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Date of Birth/Age : |
13.02.1972 |
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Date of Appointment : |
30.10.2006 |
KEY EXECUTIVES
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Name : |
Mr. Nagosh Hegde |
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Designation : |
Company Secretary |
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Address : |
184, 3rd Cross, 1st Phase, Girinagar, |
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Date of Birth/Age : |
15.07.1965 |
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Date of Appointment : |
01.03.2002 |
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Name : |
Mr. Manila Bhatia |
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Designation : |
Company Secretary |
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Address : |
G-10, Madhuban Colony, Tonk Phatak, Jaipur – 302015, |
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Date of Birth/Age : |
19.12.1978 |
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Date of Appointment : |
15.03.2007 |
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Name : |
Ms. Richa Saxena |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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Huawei Tech Investment Company Limited |
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2686800 |
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Skycom Tech Company Limited |
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2 |
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Equity Share
Breakup |
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Category |
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Percentage of Holding |
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Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Subject is engaged in Providing Software Development Services. |
GENERAL INFORMATION
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Bankers : |
HSBC Limited |
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Facilities : |
-- |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
BSR and Company Chartered Accountants |
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Address : |
Maruthi Info Tech Centre, 11/1 & 12/1 East Wing II, Kormangala
Inner Ring Road, Bangalore – 560071, Karnataka, India |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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34500000 |
Equity Shares |
Rs. 10/- each |
Rs. 345.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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34119616 |
Equity Shares |
Rs. 10/- each |
Rs. 341.196
Millions |
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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341.196 |
26.868 |
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2] Reserves & Surplus |
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598.196 |
492.602 |
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NETWORTH |
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939.392 |
519.470 |
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LOAN FUNDS |
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1] Secured Loans |
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0.000 |
0.000 |
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2] Unsecured Loans |
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0.000 |
0.000 |
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TOTAL BORROWING |
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0.000 |
0.000 |
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DEFERRED TAX LIABILITIES |
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TOTAL |
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939.392 |
519.470 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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788.972 |
94.781 |
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Capital work-in-progress |
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20.076 |
17.087 |
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DEFERREX TAX ASSETS |
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14.308 |
10.717 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Sundry Debtors |
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81.109 |
389.922 |
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Cash & Bank Balances |
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31.222 |
47.930 |
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Loans & Advances |
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118.425 |
61.910 |
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Total
Current Assets |
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230.756 |
499.762 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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54.671 |
62.029 |
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Provisions |
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60.049 |
40.848 |
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Total
Current Liabilities |
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114.720 |
102.877 |
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Net Current Assets |
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116.036 |
396.885 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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939.392 |
519.470 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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Sales Turnover |
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1141.380 |
771.820 |
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Profit/(Loss) Before Tax |
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184.970 |
142.730 |
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Provision for Taxation |
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80.680 |
68.820 |
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Profit/(Loss) After Tax |
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104.290 |
73.910 |
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Earnings in Foreign Currency : |
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Total Earnings |
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1141.388 |
771.579 |
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Imports : |
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Total Imports |
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106.666 |
67.554 |
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Expenditures : |
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Depreciation & Amortization |
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81.210 |
72.330 |
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Other Expenditure |
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875.200 |
556.760 |
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Total Expenditure |
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956.410 |
629.090 |
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KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
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9.14 |
9.58 |
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Net Profit Margin (PBT/Sales) |
(%) |
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16.21 |
18.49 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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18.14 |
24.00 |
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Return on Investment (ROI) (PBT/Networth) |
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0.20 |
0.27 |
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Debt Equity Ratio (Total Liability/Networth) |
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0.12 |
0.20 |
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Current Ratio (Current Asset/Current Liability) |
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2.01 |
4.86 |
LOCAL AGENCY FURTHER INFORMATION
AS PER WEBSITE
Set up in the year 2001 in Bangalore, subject is a
100% export oriented company, and a wholly owned subsidiary of Huawei
Technologies Company Limited, a fast growing global telecom company providing
customized network solutions for telecom carriers across the world.
A CMMi level 5 organization, Huawei Technologies India is engaged in
developing cutting-edge software products/platforms in the areas of Next
Generation Networks, Intelligent Networks, Datacommunication, Network
Management, Telecom Middleware and Mobile Handset Software for worldwide
market. As an innovation driven organisation, HTIPL has filed over 200 patents
in the above areas.
Having invested over 100 million USD in the Indian
operations, Huawei has its long-term strategy and commitment, and has embarked
on strengthening its human resource base in
Being the largest overseas R&D center, Huawei Technologies India
plays a key role in the pioneering R&D efforts of Huawei Technologies in
becoming a global leader in network solutions.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON DESIGNATED
PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or investigation
registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.40.75 |
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1 |
Rs.81.63 |
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Euro |
1 |
Rs.54.79 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
5 |
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PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
5 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
7 |
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--PROFITABILIRY |
1~10 |
4 |
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--LIQUIDITY |
1~10 |
6 |
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--LEVERAGE |
1~10 |
6 |
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--RESERVES |
1~10 |
5 |
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--CREDIT LINES |
1~10 |
5 |
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--MARGINS |
-5~5 |
- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
NO |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
YES |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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48 |
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
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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