MIRA
INFORM REPORT
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Report Date : |
01.06.2007 |
IDENTIFICATION DETAILS
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Name : |
SONATA
INFORMATION TECHNOLOGY LIMITED |
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Registered Office : |
208, T. V.
Industrial Estate, S. K. Ahire Marg. Worli, Mumbai, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
29.06.2000 |
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Com. Reg. No.: |
11-127476 |
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CIN No.: [Company
Identification No.] |
U72300MH2000PLC127476 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BLRS04865A |
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Legal Form : |
Closely held
public limited liability company |
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Line of Business : |
Company is in
engaged in computer software packages and service charges received |
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 570000 |
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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 an
established company having satisfactory track. Directors are reported as experienced,
respectable and resourceful businessmen. Their trade relations are fair.
Payments are usually correct and as per commitments. The company can
be considered good for normal business dealings at usual trade terms and
conditions. |
LOCATIONS
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Registered Office : |
208, T. V.
Industrial Estate, S. K. Ahire Marg. Worli, Mumbai, |
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Tel. No.: |
91-22-24923991 |
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Fax No.: |
91-22-24396973 |
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E-Mail : |
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Website : |
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Branches : |
Located at :
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DIRECTORS
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Name : |
Mr. B. Ramaswamy |
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Designation : |
Director |
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Name : |
Mr. P. Srikar
Reddy |
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Designation : |
Director |
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Name : |
Mr. Thomas K.
Joseph |
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Designation : |
Director |
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Name : |
Mr. K. S.
Mayurnath |
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Designation : |
Director |
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Name : |
Mr. Sujit Mohanty |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Feroza
Byramji |
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Designation : |
Company Secretary |
BUSINESS DETAILS
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Line of Business : |
Company is in
engaged in preparing- computer software packages |
GENERAL INFORMATION
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No. of Employees : |
300 |
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Bankers : |
Not Divulged |
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Facilities : |
-- |
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Banking
Relations : |
Unknown |
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Auditors : |
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Name : |
N. M. Raiji and Company Chartered Accountants |
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Address : |
Mumbai, |
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Parent Company
: |
Sanata Software
Limited, Mumbai A listed company
on stock exchanges. |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10000000 |
Equity Shares |
Rs. 10/- each |
Rs. 100.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
6000000 |
Equity Shares |
Rs. 10/- each |
Rs. 60.000
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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1] Share Capital |
60.000 |
60.000 |
60.000 |
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2] Share
Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves &
Surplus |
83.600 |
64.800 |
47.600 |
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4] (Accumulated
Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH
|
143.600 |
124.800 |
107.600 |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
51.100 |
124.000 |
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2] Unsecured
Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING
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0.000 |
51.100 |
124.000 |
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DEFERRED TAX
LIABILITIES |
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TOTAL
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143.600 |
175.900 |
231.600 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
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9.400 |
5.700 |
3.300 |
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Capital work-in-progress
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0.000 |
0.000 |
0.000 |
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INVESTMENT
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0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS
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0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS &
ADVANCES
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Inventories
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7.400
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35.300
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43.300 |
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Sundry Debtors
|
1010.400
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406.800
|
372.300 |
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Cash & Bank Balances
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186.200
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23.100
|
42.300 |
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Other Current Assets
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0.000
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0.000
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0.000 |
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Loans & Advances
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78.200
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59.000
|
39.200 |
Total Current Assets
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1282.200
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524.200
|
497.100 |
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Less :
CURRENT LIABILITIES & PROVISIONS
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Current Liabilities
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1148.000
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354.000
|
268.800 |
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Provisions
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0.000
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0.000
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0.000 |
Total Current Liabilities
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1148.000
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354.000
|
268.800 |
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Net Current Assets
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134.200
|
170.200
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228.300 |
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MISCELLANEOUS EXPENSES
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0.000 |
0.000 |
0.000 |
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TOTAL
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143.600 |
175.900 |
231.600 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
3360.800 |
2005.000 |
1417.900 |
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Other Income |
[20.500] |
[4.400] |
[3.500] |
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Total Income |
3340.300 |
2000.600 |
1414.400 |
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Profit/(Loss) Before Tax |
31.400 |
27.100 |
25.200 |
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Provision for Taxation |
12.600 |
9.900 |
9.100 |
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Profit/(Loss) After Tax |
18.800 |
17.200 |
16.100 |
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Expenditures : |
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Power
& Fuel Cost |
0.600
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0.800
|
0.900
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Other
Manufacturing Expenses |
2966.300
|
1687.200
|
1118.200
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Employee
Cost |
109.900
|
98.300
|
93.100
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Selling
and Administration Expenses |
70.700
|
54.000
|
54.300
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Miscellaneous
Expenses |
150.300
|
122.400
|
116.700
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Interest
& Financial Charges |
6.600
|
9.100
|
4.300
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Depreciation
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4.500
|
1.700
|
1.700
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Total Expenditure |
3308.900 |
1973.500 |
1389.200 |
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KEY RATIOS
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Debt-Equity Ratio |
0.19 |
0.75 |
0.65 |
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Long Term Debt-Equity Ratio |
0.00 |
0.00 |
0.02 |
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Current Ratio |
1.16 |
1.28 |
1.27 |
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TURNOVER RATIOS |
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Fixed Assets |
174.59 |
147.97 |
131.90 |
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Inventory |
157.41 |
51.02 |
27.53 |
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Debtors |
4.74 |
5.15 |
4.01 |
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Interest Cover Ratio |
5.76 |
3.99 |
6.86 |
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Operating Profit Margin(%) |
1.26 |
1.90 |
2.20 |
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Profit Before Interest And Tax Margin(%) |
1.13 |
1.81 |
2.08 |
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Cash Profit Margin(%) |
0.69 |
0.94 |
1.26 |
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Adjusted Net Profit Margin(%) |
0.56 |
0.86 |
1.14 |
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Return On Capital Employed(%) |
23.79 |
17.82 |
18.00 |
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Return On Net Worth(%) |
14.01 |
14.80 |
16.17 |
LOCAL AGENCY FURTHER INFORMATION
BUSINESS
REVIEW
Products
The Company's product business has grown at a rate of 68% over last year.
Customer and partner base has been growing steadily. The Company has been rated
one of the best partners by all the major principals. The Company's strategy
for the current financial year is to consolidate its existing business lines
and look for new businesses which can give higher returns.
Business Solutions Group (BSG)
The Company has seen a growth of over 100% in the BSG revenues with several new
client acquisitions and repeat business from existing customers. With a slew of
highly referenceable customers, the Company has further earned itself the
recognition of being a leading ERP player and today is the preferred mid-market
partner for most of its principals. The Company is well poised to continue with
this aggressive growth during the forthcoming year too.
IT Consulting
The Company has once again penetrated deeper into its client relationships and
has posted an impressive growth in the IT Consulting business. With a healthy
pipeline and some strategic initiatives in place, the Company is geared to
continue to enhance this business with its existing and new customers.
QUALITY
During the year under review, the Quality Management System of the Company
continues to assist in ensuring delivery of products and services to the
highest expectation of their customers. Periodic audits by the certifying
agency are helping the Company in maintaining rigorous quality standards.
Customer expectations and satisfaction levels on quality and technical
competency are assessed through surveys that assist the Company in better
customer orientation. The Company continues to receive appreciation from its
customers for the high quality of its services and technical competency of its resources.
AS PER
WEBSITE
Subject a subsidiary of Sonata Software Limited, is a
premier software services and product distribution company with several offices
and has businesses that are primarily India-focussed.
Corporate mission: Provide Information Technology solutions in
Corporate Profile
Sonata Information Technology Limited (SITL) is 100% owned subsidiary of
Sonata software Limited(SSL). Though the subsidiary was newly formed in 2000,
its business portfolio was under SSL since 1986.
The current business portfolio includes:
-
Product
Marketing
- Business Solutions
- IT Consulting
- Product Support Services
SITL operates through 7 branch offices and more than 1000
strong reseller network covering all over
SITL has 24 strategic alliances with world's renowed software majors for
software distribution and for providing solutions and services.
The turnover of SITL for the Financial Year ending March 31,
2001 is Rs. 1165 million. The total employee strength, as on today, stands
around 100. A higher year-on-year turnover has been achieved with a reduced
manpower strength, reflecting increased productivity.
Management
SITL is managed by professionals who have wealth of experience in
IT industry. The management comprises of following Board of Directors :
Mr. B. Ramaswamy
M. Sc., PGDBM (IIM)
Mr. B. Ramaswamy is currently President & Managing Director of
Sonata. He has been associated with Sonata since the Company's inception, in
1986, as a division of Indian Organic Chemicals Ltd.(IOCL). He joined as
Sonata's Marketing Controller from Voltas Ltd and he was designated as
President & Managing Director of Sonata in 1996.
P Srikar Reddy
B.E., PGDBM (IIM)
He is Chairman of Abisko Development Limited and is also in the
Board of Sonata Information Technology Limited and Sonata Software Limited. Mr.
Reddy has been with Sonata since 1986, during which time he has handled various
assignments ranging from Project Management to Sales & Marketing. His
current responsibilities encompass Project Delivery, Project Office, Quality,
Technology Research, HR, Education & Training, and Indian Operations.
Sujit Mohanty
M.A. (Vanivihar University-Bhubaneswar), PGDBM
(XIM-Bhubaneswar)
Mr. Sujit Mohanty, Assistant Vice President, has a total work
experience of 12 years, of which over 10 years have been at Sonata. He is
currently heading Product Marketing and Product Support Services Group. Prior
to the current responsiblity in Sonata-Bangalore, he was heading product sales
activities in
Offerings
Sonata's set of offerings broadly covers products and software
services. To propose a wide range of offerings for the benefit of their
clients, Sonata has forged strong alliances with several global IT majors like
Microsoft, Oracle, IBM, Documentum, DataStream, IONA,GEAC, BEA Systems etc,. So
the clients now have a single vendor who can offer anything in software- be it
software development tools, office suites, utilities, databases, webservers,
operating systems, ERP, CRM, eCommerce etc,.
Sonata is one of
- ERP Practice (
- Microsoft Dynamics Ax/ NAV Practice
- Oracle Practice
- Scala Practice
- CRM Practice (Customer
Relationship Management)
- Microsoft Dynamics CRM Practice
- Business Intelligence Practice
- Microsoft BI Practice
- E-Commerce Practice (eSonata)
- Groupware Practice
- SCM practice (Supply Chain
Management)
- EAM practice (Enterprise
Asset Management)
- ECM practice (Enterprise
Content Management)
- CPM practice (Corporate
Performance Management)
Sonata group has a team of over 500 consultants with functional
and domain expertise. The collective experience in projects exceeds several
man-years.
Alliances
Sonata
has strategic alliances with Microsoft, IBM, Oracle, SCO , Lotus etc, for
distribution of their products as well as offering software services. These
strategic alliances have provided Sonata with expertise in diverse technologies
and products. This valuable knowledge is being leveraged to integrate disparate
islands of technologies, to provide their customers as well as their resellers
with comprehensive consulting solutions and technical inputs respectively.
Sonata's
alliance-partner-list includes the following world's well known IT companies.
Partners
Sonata
understands the importance of partner network in flow of software and services
to end-users. Sonata's partner program is designed in such a way to put in
place the most efficient way of effecting such flows. As the end-user needs
keep varying as well as increasing in terms of service levels, Sonata has
created an efficient sales office network throughout India and also instituted
a simple and convenient process for expanding partner network. Sonata's
partner's list include software resellers, OEMs, solutions partners and system
integrators.
News
Sonata
has signed up several alliances in the current year, 2001. Expanding list of
alliance partners is a key strategy adopted by Sonata in order to offer
multiple technologies, products, services and solutions to the clients from a
single source, thereby saving time and money for them. The new alliance list
includes Verisign, Webgain, Business Objects, iPlanet, BEA Systems etc.
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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.40.54 |
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|
1 |
Rs.80.21 |
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Euro |
1 |
Rs.54.51 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
6 |
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PAID-UP CAPITAL |
1~10 |
6 |
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OPERATING SCALE |
1~10 |
6 |
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FINANCIAL CONDITION |
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|
--BUSINESS SCALE |
1~10 |
6 |
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--PROFITABILIRY |
1~10 |
6 |
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--LIQUIDITY |
1~10 |
6 |
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--LEVERAGE |
1~10 |
6 |
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--RESERVES |
1~10 |
6 |
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--CREDIT LINES |
1~10 |
6 |
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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 |
|
54 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING 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 |
|