MIRA
INFORM REPORT
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Report Date : |
25.07.2007 |
IDENTIFICATION DETAILS
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Name : |
NETSOL TECHNOLOGIES LIMITED |
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Registered Office : |
Netsol IT Village, |
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Country : |
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Date of Incorporation : |
1996 |
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Com. Reg. No.: |
L - 08804/19960802 |
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Legal Form : |
Public Limited Company. The Company has been listed on Karachi Stock Exchange of Pakistan. |
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Line of Business : |
Engaged in Export of Computer Software and its related
services developed in |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
Business Name
NETSOL TECHNOLOGIES LIMITED
Full Address
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Registered Address |
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Netsol IT Village, |
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Tel |
92 (42) 111-448-800, 5727096 |
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Fax |
92 (42) 5726740 |
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Short Description Of
Business
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Nature of Business |
Engaged in Export of Computer Software and its related services
developed in |
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Year Established |
1996 |
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Registration # |
L - 08804/19960802 |
Branches
In
Auditors
Saeed Kamran Patel & Co.
(Chartered
Accountants)
Legal Status
Netsol Technologies Limited incorporated in
Details of Directors
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Names |
Designation |
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Mr. Salim Ullah Ghauri Mr. Najeed Ullah Ghauri Mr. Naeem Ullah Ghauri Mr. Irfan Mustafa Mr. Sajjad Hussain Kirmani Mr. Shahid Javed Burki Mr. Abdul Rashid Mr. Eugen Beckert |
Chairman & CEO Director Director Director Director Director Director Director |
Holding Company
NETSOL TECHNOLOGIES INC, U.S.A., a Nevada Corporation,
24025 Park Sorrento Ste. 220, Calabasas holds majority of shareholding of the
Company
Associated Companies
TIG-Netsol (Private) Limited,
Netsol
Products
Engaged in Export of Computer Software and its related services
developed in
Number of Employees
89
Annual Software
Development Capacity
Netsol Technologies Limited is engaged in Software Development, Maintenance and licensing, due to the complicated nature of the software development process annual development capacity cannot be determined.
Annual Sales Revenue
(Last 2 Years)
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Years |
In Pak Rupees |
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2005 2006 |
436,824,000/- 505,210,000/- |
Clientele
Multinational Companies, Government Enterprises, Manufacturing Companies, Banks & Financial Institutions
Bankers
ABN AMRO Bank,
Standard Chartered
Faysal Bank Limited,
Habib Bank Limited,
Habib Metropolitan Bank Limited,
Bank Alhabib Limited,
General Overview
& Future Outlook
Company has closed another successful year of its operations. Economic activity in the country has drastically improved during the current year. As a result, Pakistani public and corporate sectors have started increasing their spending on information technology to achieve operational efficiencies and staying competitive. Company has also benefited from expansion in this business activity in the country and has acquired some key contracts in the areas of E-Commerce and Defense sector automation. Pakistan is now being seen as one of the key IT destinations for outsourcing work along with China, India etc. Due to this heavy investment, it appears that despite increase in the overall revenues of the Company, its net margin & EPS has reduced. Future outlook for the Company seems promising both in the domestic market as well as in export segment. Recent reduction in the bandwidth rates by the Government of Pakistan and State Bank of Pakistan initiative to make economical finance available to the exporters will definitely push this sector to perform more aggressively in the coming years. Netsol has tapped certain areas some of which have already been materialized and the remaining are expected to be materialized during the next years. The Management of the Company expects to get steady and healthy revenue from all these areas in the coming years.
Foreign Exchange
Rates
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Currency |
Unit |
Pakistani Rupee |
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US Dollar |
1 |
Rs. 60.95 |
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UK Pound |
1 |
Rs. 125.00 |
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Euro |
1 |
Rs. 83.80 |
Comments
Subject is a well-established company having fine track. Directors are reported as experienced, respectable and having satisfactory means of their own. Payments are usually correct and as per commitments. The Company can be considered good for normal business dealings at usual trade terms and conditions.
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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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%)