MIRA
INFORM REPORT
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Report Date : |
08.06.2007 |
IDENTIFICATION DETAILS
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Name : |
SPANCO TELESYSTEMS AND SOLUTIONS LIMITED |
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Registered Office : |
B – 22, Krishna Bhuvan, B S Deoshi Marg, Deonar, Mumbai – 400 088, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
20.03.1984 |
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Com. Reg. No.: |
032422 |
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CIN No.: [Company
Identification No.] |
L65990MH1984PLC032422 |
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Legal Form : |
Public Limited liability company. Company’s shares are listed on stock
exchanges. |
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Line of Business : |
Subject is engaged in telecommunication & IT enabled services. |
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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Maximum Credit Limit : |
USD 5500000 |
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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. Directors are reported as
experience 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 : |
B – 22, Krishna Bhuvan, B S Deoshi Marg, Deonar, Mumbai – 400 088, |
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Tel. No.: |
91-22-67975566 |
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Fax No.: |
91-22-67975599 |
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E-Mail : |
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Website : |
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Branches : |
Gurgaon
Ahmedabad
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DIRECTORS
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Name : |
Mr. Kapil Puri |
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Designation : |
Chairman and Managing Director |
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Date of Birth/Age : |
40 years |
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Qualification : |
Computer Engineer |
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Experience : |
19 years |
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Date of Appointment : |
21.01.2005 |
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Name : |
Mr. Rajesh Chhabria |
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Designation : |
Managing Director |
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Name : |
Mr. Deepak Bhagchandaney |
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Designation : |
Wholetime Director |
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Name : |
Mr. Adarsh Bagaria |
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Designation : |
Wholetime Director |
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Name : |
Mr. Ramesh Sharma |
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Designation : |
Director |
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Name : |
Mr. Rajkumar Bahri |
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Designation : |
Director |
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Name : |
Mr. Prakash Desai |
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Designation : |
Director |
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Name : |
Mr. Paresh Bambolkar |
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Designation : |
Director |
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Date of Ceasing: |
10.08.2006 |
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Name : |
Mr. Deepak Vasdev |
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Designation : |
Additional Director |
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Date of Appointment: |
28.04.2006 |
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Name : |
Major General G K Nischol AVSM, VSM, (Retd.) |
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Designation : |
Additional Director |
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Date of Appointment: |
28.04.2006 |
KEY EXECUTIVES
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Name : |
Mr. Sanjay Kumar Mutha |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2007:
|
Category Code |
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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(A) |
Shareholding of Promoter
and Promoter Group |
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1 |
Indian |
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(a) |
Individuals / Hindu Undivided Family |
6286177 |
30.44 |
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Total (A) |
6286177 |
30.44 |
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(B) |
Public
Shareholding |
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1 |
Institutions |
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(a) |
Mutual Funds / UTI |
719239 |
3.48 |
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(b) |
Financial Institutions Banks |
8000 |
0.04 |
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© |
Venture Capital Funds |
1094123 |
5.30 |
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(d) |
Foreign Institutional Investors |
662828 |
3.21 |
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Sub total (B)
(1) |
2484190 |
12.03 |
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(B2) |
Non –
Institutions |
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Bodies Corporate |
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I |
Individuals –i Individual
shareholders holding nominal share capital upto Rs. 0.100 million |
1986117 |
9.62 |
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II |
ii. Individual shareholders holding nominal share capital in excess of
Rs. 0.100 million |
965982 |
4.68 |
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(c ) |
Any Other Specify |
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(c-i) |
NRI |
84610 |
0.41 |
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(c-ii) |
Clearing Member |
66325 |
0.32 |
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(c-iii) |
Trust |
133 |
0.00 |
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(c-iv) |
Foreign Corporate Bodies |
3081326 |
14.92 |
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Sub total (B)
(2) |
11879633 |
57.53 |
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Total Public
Shareholding (B) = (B) (1) + (B) (2) |
14363823 |
69.56 |
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GRAND TOTAL |
20650000 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Subject is engaged in telecommunication & IT enabled services |
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Products : |
Item Code No. 85179000 NA |
Product
Description Multiplexer Call Centre |
GENERAL INFORMATION
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No. of Employees : |
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Bankers : |
v
Bank of v
State Bank of v
HSBC Limited |
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Facilities : |
Secured Loans |
As
on 31.03.2006 (Rs.
in millions) |
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From Banks: Term Loans: Rupee Loan Foreign Currency loan Working Capital
Loans: Rupee loan Foreign currency loan Others: From finance companies- vehicle loans Interest accrued and due Total |
156.677 15.865 261.191 90.466 17.946 - 542.145 |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
RSM and Company Chartered Accountants |
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Address : |
Mumbai, |
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Contact Person: |
Mr. Vilas Y. Rane |
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Designation: |
Partner |
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Associates/Subsidiaries: |
Global Respondez Services Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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27000000 |
Equity Shares |
Rs. 10.00 each |
Rs. 270.000 millions |
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3000000 |
Redeemable Preference shares |
Rs. 10.00 each |
Rs. 30.000 millions |
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Total |
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Rs. 300.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
15824551 |
Equity Shares |
Rs. 10.00
each |
Rs. 158.246 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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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 |
158.246 |
169.868 |
69.800 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1229.757 |
439.058 |
216.000 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1388.002 |
608.927 |
285.800 |
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LOAN FUNDS |
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1] Secured Loans |
542.144 |
404.002 |
207.200 |
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2] Unsecured Loans |
0.000 |
9.200 |
42.800 |
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TOTAL BORROWING |
542.144 |
413.202 |
250.000 |
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DEFERRED TAX LIABILITIES |
0.630 |
15.774 |
0.000 |
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TOTAL |
1930.776 |
1037.902 |
535.800 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
374.579 |
594.989 |
190.600 |
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Capital work-in-progress |
244.500 |
0.000 |
17.200 |
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INVESTMENT |
16.471 |
16.471 |
16.500 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
90.628
|
6.889 |
62.800 |
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Sundry Debtors |
958.817
|
360.365 |
140.600 |
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Cash & Bank Balances |
70.946
|
107.001 |
17.900 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
669.634
|
243.931 |
222.600 |
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Total
Current Assets |
1790.025
|
718.186 |
443.900 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
433.702
|
278.067 |
120.200 |
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Provisions |
61.096
|
13.676 |
12.200 |
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Total
Current Liabilities |
494.798
|
291.743 |
132.400 |
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Net Current Assets |
1295.226
|
426.443 |
311.500 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
1930.776 |
1037.902 |
535.800 |
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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 |
2161.646 |
1043.783 |
612.400 |
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Other Income |
7.951 |
3.504 |
7.100 |
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Increase/ (decrease) in stock |
0.658 |
(55.881) |
3.000 |
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Total Income |
2170.255 |
991.406 |
622.500 |
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Profit/(Loss) Before Tax |
230.899 |
123.419 |
58.800 |
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Provision for Taxation |
31.320 |
26.154 |
2.400 |
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Profit/(Loss) After Tax |
199.579 |
97.265 |
61.200 |
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Earnings in Foreign Currency : |
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Export Earnings |
85.907 |
84.799 |
0.000 |
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Income from services |
418.083 |
247.080 |
0.000 |
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Total Earnings |
503.990 |
331.880 |
0.000 |
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Imports : |
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Purchase of Traded Goods |
184.235 |
164.803 |
0.000 |
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Capital Goods |
24.692 |
27.755 |
0.000 |
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Total Imports |
208.927 |
192.558 |
0.000 |
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Expenditures : |
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Manufacturing Expenses |
923.124 |
306.182 |
0.000 |
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Personnel Cost |
441.461 |
261.365 |
11.300 |
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Administrative Expenses |
0.000 |
0.000 |
96.700 |
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Raw Material Consumed |
0.000 |
0.000 |
258.500 |
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Salaries, Wages, Bonus, etc. |
0.000 |
0.000 |
114.500 |
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Interest and finance charges |
70.163 |
30.559 |
0.000 |
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Power & Fuel |
0.000 |
0.000 |
1.01 |
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Depreciation & Amortization |
135.534 |
70.405 |
0.000 |
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Other Expenditure |
369.076 |
199.476 |
11.400 |
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Total Expenditure |
1939.357 |
867.988 |
493.410 |
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SUMMARISED RESULTS
|
PARTICULARS |
|
|
2007 (Full Year) |
|
Sales Turnover |
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|
4297.300 |
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Other Income |
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|
33.100 |
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Total Income |
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|
4330.400 |
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Total Expenditure |
|
|
3662.500 |
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Operating Profit |
|
|
667.900 |
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Interest |
|
|
100.400 |
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Gross Profit |
|
|
567.500 |
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Depreciation |
|
|
88.700 |
|
Tax |
|
|
112.400 |
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Reported PAT |
|
|
348.100 |
|
Dividend (%) |
|
|
0.000 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
9.20
|
9.81 |
9.83 |
|
Net Profit Margin (PBT/Sales) |
(%) |
10.68
|
11.82 |
9.60 |
|
Return on Total Assets (PBT/Total Assets} |
(%) |
10.68
|
9.40 |
9.27 |
|
Return on Investment (ROI) (PBT/Networth) |
|
0.17
|
0.20 |
0.21 |
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.75
|
1.16 |
1.34 |
|
Current Ratio (Current Asset/Current Liability) |
|
3.62
|
2.46 |
3.35 |
|
Long Term Debt-Equity Ratio |
|
0.24
|
0.50 |
0.39 |
|
TURNOVER RATIOS |
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Fixed Assets |
|
3.33
|
2.11 |
2.73 |
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Inventory |
|
44.34
|
29.95 |
9.99 |
|
Debtors |
|
3.28
|
4.17 |
3.91 |
|
Interest Cover Ratio |
|
4.29
|
5.03 |
4.52 |
|
Operating Profit Margin |
(%) |
20.20
|
21.48 |
19.60 |
|
Profit Before Interest and Tax Margin |
(%) |
13.93
|
14.73 |
12.33 |
|
Cash Profit Margin |
(%) |
15.50
|
16.05 |
17.26 |
|
Adjusted Net Profit Margin |
(%) |
9.23
|
9.30 |
9.99 |
STOCK PRICES
|
Face Value |
Rs. 10.00 |
|
High |
Rs. 275.00 |
|
Low |
Rs. 255.10 |
LOCAL AGENCY FURTHER INFORMATION
Scheme of
Arrangement for Demerger of Sparsh, the Domestic Call Centre of the Company
into Intelenet BPO Services Limited.
The Board of
Directors in its meeting held on March 2, 2006 and the Members of the Company
at its Court Convened Extra- Ordinary General Meeting held on June 6, 2006 have
approved a Scheme of Arrangement under Sections 391 to 393 of the Companies
Act, 1956 (the said "Scheme") for demerger of its Domestic Call
Centre Division (SPARSH) into Intelenet BPO Services Ltd. (IBSL), a subsidiary
of Intelenet Global Services
Private Limited
(HDFC - Barclays Joint Venture) on a going concern basis. The Appointed Date
for the Demerger is January 1, 2006. .Hon'ble High Court of Mumbai has approved
the said Scheme vide it's order dated August 4, 2006 and the said Scheme became
effective upon filing of the said order with Registrar of Companies,
Maharashtra, Mumbai on August 29, 2006 Pursuant to the said Scheme, every
equity shareholder of the
Company shall be
allotted 1 (One) fully paid up equity share of Rs. 10/- each in IBSL for every
3 (Three) fully paid up equity shares of Rs. 107- each held in the Company on
September 29, 2006 being the book closure date for the said purpose; and
consequent to the said Scheme, the Equity share capital of the Company shall be
reduced from 23,736,826 shares of Rs. 107- each aggregating to Rs 2373.682
millions- to 15.824,551 shares of Rs. 10/- each aggregating to Rs. 1582.455
millions.
Management's
discussion and analysis Introduction
The roots of the Indian
telecommunication industry can he traced to the early 1990s, when with the
first wave of
liberalization,
the government looked seriously at opening up the telecom market for private
players (in collaboration with even Foreign players). Prior to 1990s the
telecom market and scenario in general was dominated by Government owned PSUs
like BSNL, MTNL, and VSNL. These Incumbent Local Exchange Carriers (ILECs) were
enjoying the monopoly situation till such time the competing local exchange
carriers
(CLECs) started
showing up as a result of liberalization. Post the advent of CLECs in 1993-94,
the market saw a period of uncertainity as all the new players in the market
drew out detailed plans for putting in heavy investments and then waiting for
customer acquisition cycle fro the revenues to pour in. The times were
uncertain and questions were being raised whether returns could be generated
from the high capital cost incurred for commissioning the assets. The period of
2003-2004 vindicated these investments as the Indian telecom industry reached a
level of maturity or critical mass, so as to say, through attracting a sizeable
subscriber base. This was aided by a decline in tariffs with the subsequent
effect of further enhancement of customer base. For instance,
in the mobile
telephony space, the subscriber base exploded from around 1.90 million in 2000
to over 60 million in 2005.
The last couple of
years have seen the service provider market climbing the upward curve on the
growth graph. Fresh investments are being provisioned in mobility as well as
broadband markets to address the increase in the subscriber base, cater to
newer applications and demands of educated customers and revamping the old
obsolete technology with a newer one. Going forward, the potential of the
Indian telecommunications industry is evident in the fact that
cellular services
market will be worth US$24 billion by the end of 2009 (recording a compounded
annual growth rate (CAGR) of 35.6 per cent over the period) and accounting for
11 percent of the overall Asia Pacific and Japanese markets by 2009.
Subject is an
attractive proxy of the growth emerging out of the telecommunications space.
Being present for over a decade, the Company has amassed a vast and rich
experience in offering cutting-edge technology products and business enhancing
services. Subject has enlisted a number of business enhancing customers,
comprising both ILECs and CLECs customers.
Telecommunications
integration
The Indian
telecommunications market is primarily segmented across product manufacturers,
systems integrators
and service
providers. Product manufacturing is largely restricted to global corporations
and Millions since it requires strong capabilities on both the technology and
manufacturing front as well as necessitates regular and large investments in
research and development among other activities. Telecommunication service
providers include incumbent local exchange carriers (ILEC) including VSNL, BSNL
and MTNL and competing local exchange carriers (CLEC) like Bharti Televentures,
Hutch, Tata Teleservices and Reliance Indocom among others. Currently,
investments in the telecommunications sector comprise those in:
• Network augmentation
• Fresh network
creation
• Newer product,
services and applications development (including Wi-MAX and 3G among others)
With a view to
achieving these objectives, a number of players in the telecom space have
allocated large investments. For instance, BSNL intends to add a rough 60
million subscribers to its existing base at a capital cost of over Rs
200000.000 millions Bharti Televentures intends to augment/ create network to
absorb an incremental 60 million subscribers at a cost of over Rs 100000.000
millions in all, huge investments are expected to flow into the Indian telecom
sector over the next couple of years. Subject provides cutting-edge solutions
and technology-rich products in the domains of telecom networking and systems
integration. Besides catering to the carrier requirements of setting up access
networks on fibre, copper and the wireless media, the Company has created
business-enhancing alliances with leading communication behemoths including
Nortel Networks, Airspan, Hewlett Packard and IBM among others.
This helps in the
leverage of product-service offering to provide the best communications
infrastructure solutions to customers. The Company is actively involved in
various major network infrastructure projects with the Defence, PSUs,
utilities, enterprises and other renowned institutions in the country among
others.
International call
centre – Respondez
The global
business process outsourcing (BPO) industry is estimated at US$ 180 billion and
is registering a compounded annual growth rate (CAGR) of between 8-10 per cent
per annum. Exports of Indian IT and IT-enabled services (ITeS) continued to
record a growth rate of over 30 per cent to touch $23.6 billion in 2005-06,
according to industry association
Nasscom
Though the projected
growth in exports for the year 2006-07 will continue to outstrip the growth in
the domestic market, the industry is expected to meet its target to be a $60
billion industry by 2010. Of the total exports in 2005-06, the exports of the
business process outsourcing (BPO) industry grew 37 per cent to $6.3 billion.
This growth is intended to sustain across the foreseeable future on account of
the following:
• The continuing
need of organizations operating on a global platform to infuse efficiencies across
the business
The emerging need
of organizations to focus on their core business activity while contracting out
the 'outsource able' non-core processes to those better placed to carry out the
activity.
• The attractive
diversification of revenue streams and supplier bases to different countries,
hence providing an
Effective hedge
against geopolitical changes.
• The
globalization of services enables the creation of new businesses and revenue
streams, while outsourcing affords better customer service and streamlining of
the supply chain. With a view to capitalizing emerging opportunities, Subejct
commissioned Respondez, a 730 seat world-class customer contact centre located
in Mumbai. Respondez services clients located in the
Segment-wise
performance
1.
Telecommunications integration
During the year
under review, subject’s telecommunications segment recorded a whooping revenue
growth of 141.06 per cent revenue to reach Rs.1338.45 millions as compared to
Rs. 555.24 millions in 2004-05.
2. BPO services
The Company' BPO
services has also achieved a significant growth in revenue - 68.50 per cent
over 2004-05 to reach Rs. 823.20 millions.
Reserves and
surplus
The Company's
reserves and surplus increased to Rs 1229.76 millions as on 31 March 2006 as
compared to Rs 439.06 millions as at 31 March 2005, primarily due to an increase
in the securities premium account by Rs 544.10 millions from the fresh issue of
equity shares on preferential basis. As a result, the Company's net worth
increased to Rs 1388 millions as on 31 March 2006 from Rs 608.93 millions as on
31 March 2005. There were no revaluation reserves on the Company's books during
the 2005-06.
Secured loans
During the year
under review, the Company has undertaken capacity and business expansion across
its telecom divisions and BPO services. This has resulted in the higher need
for term loans as well as funds to finance working capital requirements. As a
result, the Company's secured loans increased from Rs 404 millions as on 31
March 2005 to Rs. 542.14 millions as on 31 March, 2006.
Unsecured loans
During the year
under review, the Company has repaid its unsecured loans and as at 31 March,
2006, the same stood NIL as compared to Rs. 9.20 millions as on 31 March 2005.
Sundry debtors
Growth in the business
along with the long receivables cycle of the telecom systems integration
business caused the Company's sundry debtors to increase to Rs. 958.82 millions
as on 31 March 2006 from Rs. 360.37 millions as on 31 March 2005 and the
Company's debts outstanding for a period exceeding six months was Rs 120.50
millions as on 31 March 2006 as compared to Rs. 14.66 millions as on 31 March
2005.
Opportunities and
threats
1.
Telecommunications integration
With increasing
stabilization and maturity of the Indian telecom market, players in the sector
have lined up aggressive investments to the tune of Rs 1,0000.000 millions to
augment networks; build new networks and roll out new products, services and
applications. The strengthening focus of telecom service providers to bring a
larger number of people into the mobile fold along with the focus on increasing
tele-density especially across the rural areas will demand the setting up of
telecommunications infrastructure. Modernization of the existing infrastructure
will also be the norm with the growing bandwidth accommodating newer
applications including video
Conferencing,
video-on-demand, IPTV, Wi-MAX and content delivery across networks. Moreover
with the Central Government's strong focus on infrastructure creation to
support the e-governance for a robust economic development in the country, the
infrastructure sector is allocated increasing funds.
Ramping up of
capacities at existing airports along with the creation of
Communications
network creation. Moreover with a view to providing increasing citizen
benefits, SWAN and other
E-governance
projects have been implemented Or'are in the pipeline, which will create ample
opportunities in
networking
applications. Significant investments have also been earmarked by the Indian
Defence for setting up inter-geography networks along with the focus of the
Indian Railways in creating better communications networks and infrastructure.
This is set to create growing business opportunities for turnkey solutions
providers like Spanco.
2. International
call centre – Respondez
The global IT and
ITeS spending for the year 2005 was to the tune of $1479 billions. The Indian
IT-ITES industry
Continues to scale
double digit growth and is expected to exceed $36 billions in year 2005-06, of
which almost $ 23 billions
are from exports
(Nasscom). The IT and ITES export revenues have grown by a faster clip over
last few years.
Even as recently
as 2000-01, IT and ITeS exports were as less as $6.2 billions. This has surged
since then to $13.3 billions in 2003 and almost $23.9 billions in 2006.
Interestingly, whereas in year 2000, offshore services contributed to over 43
per cent of revenues, this has increased to almost 71 per cent of revenues in
2006. Taking a conservative view, Nasscom has projected exports of IT and ITES
to grow by around 30 per to $29-31 billion cent in 2006. For 2006-07, Nasscom
has estimated that BPO exports will touch $8-8.5 billion.
Having established
a strong presence in the BPO space,
the period (Source:
Nasscom Strategic Review, 2005).
Risks and concerns
1.
Telecommunications integration
The Indian
telecommunications industry is highly regulated. Any adverse government
regulations might
harm the prospects
of the Company. Internally, Subject is faced with the challenge of competition
with customers
looking at vendors
with robust technological and technical expertise and strong financial
resources. To counter this threat, the Company has evolved its capabilities to
provide cutting-edge products and solutions and has built strong domain
expertise and experience. These act as strong competitive barriers. Moreover,
Spaiico's successful
execution of large
and complex orders from brand enhancing customers directly leverages its
capabilities in
bagging new orders
from existing as well as new customers.
2. International
call centre – Respondez
Despite the
high-growth of the Indian BPO industry, it suffers certain basic inherent
setbacks, enumerated and
explained as
under:
Attrition: The multi-billion dollar Indian BPO industry faces high attrition rates,
estimated between 20 and 40
per cent even as
an average individual sticking to the assignment for less than a year. With a
view to devising
means to counter
this threat, an increasing number of industry players are creating tools to
monitor, the performance of employees and then categorizing them into different
segments according to their steadfastness
with the Company.
This enables a string manpower forecasting and helps create a pipeline of
talent. Besides,
companies are also
providing a number of different opportunities, perks and incentives to sustain
employee
morale.
Training needs: At present, a majority
of BPO companies provide in-house training for their employees comprising
coaching in
English accent and cultural issues for call centre operations and process
knowledge for back-office
operations.
However in the long-term, the emergence of dedicated training institutes for
the delivery of basic training related to the BPO business will be important.
This will not only ensure the availability of high-quality
manpower for the
industry but will also result in significantly lower training costs for companies.
Security threat: The Indian BPO
industry lacks an efficient legal machinery to implement and enforce stringent
laws relating to policies governing data/cyber security, protection of
intellectual property rights, data protection
laws and handling
removable computer media such as CDs and floppies. However, according to a Nasscom-
Evalueserve report on the
information security environment in
Outlook
1.
Telecommunications integration
Liberalization of
the Indian economy has proved to be a boon to the Indian telecom sector.
Continued growth in
the telecom
services industry in general, and the cellular wireless services in particular,
have witnessed an increase in telephone connections from 134 million at
end-February 2006 to around 225 million by end-2007. But the growth of the
telecom sector has been largely centered on cities. Rural penetration has been
minimal. But now the scenario is expected to change drastically with private
players taking a keen interest in building rural telecommunications
infrastructure with an eye to the growing disposal incomes of the rural masses.
Information
technology e-governance has become the need of the hour for better and
people-centric governance and state governments are waking up to the reality.
All these augur well for subject, a Company, which has amassed a vast and rich
experience in offering cutting-edge technology products and business-enhancing
services.
2. Internationa]
call centre – Respondez
services at low
costs more and more multinationals are attracted to
Fixed Assets
v Leasehold
v Improvements
v Guest House
v Plant and Machinery
v Computers
v Furniture and Fixtures
v Office Equipments
v Motor Vehicles
v Goodwill
v Software
An ISO 9000 company engaged in Telecommunication & IT
enabled services, which was incorporated under the name of Kadambari Leasing
which was later on changed to its present name i.e. subject
A fast growing IT Enabled Services company has its presence in domestic
as well as International Market and has its remote facilities in US &
During the last year the company has grown with a remarkable pace and
made its presence felt throughout the country by setting up call centres at
Mumbai, Gurgaon, Bangalore, Pune & Kolkata and has also increased its
workforce manifold from mere 120 employees in March, 2002 to nearly 1000 in
March, 2003. This increase in size has also resulted in topline &
bottom-line growth of the company.
The company has commissioned a US based subsidiary in 2002-03.Subject
ended its Call centres from one unit in August 2002 to five fully operational
Call Centres across
Website details attached
Subject. is one of
the leading telecom systems integration and IT services company in
Awards and Recognitions
- KPMG has
certified subject as a ISO 9001-2000 company.
- Polycom (UK)
Ltd. recognizes subject as the Best Channel Partner for Service Providers
market in
Company
Over the ages, it is information, the access
to it and the ability to process it that have dictated change in our world.
Also the means to delivering information have played an equally pivotal role.
Telecommunication for one has evolved into an indispensable information
delivery tool. From a mere people communication tool, telecom today helps
businesses succeed by helping exchange info swiftly and adequately.
And in this Telecom Technology space subject stands tall as one of the most
specialized providers of cutting edge business enhancing solutions and
services.
Established in 1995 by Mr. Kapil Puri and Mr. Rajesh Chhabria, today subject is
one of the leading networking and systems integration Solutions Company in
3300 employees strong, subject is spread over nine locations - Mumbai,
Pune, Ahmedabad, Gurgaon, Kolkata, Bangalore, Hyderabad, Lucknow and Guwahati.
Internationally, subject has a 100% subsidiary in
The company is accredited with the ISO 9001 - 2000 quality certification for
Telecom Integration Services and also listed in the Bombay Stock Exchange.
Business Partners and Alliances
Subject’s alliances with leading global companies like Alcatel, Nortel,
Apropos, DMC Stratex Networks assist the company in its bids for large Indian
contracts with oil companies, Indian railways, the Indian defense establishments
and other projects. As a result, the company has acquired visible and
brand-enhancing clients like ONGC, Indian Railways and BSNL, among others over
the years.
SPANCO'S
PRINCIPAL TECHNOLOGY SUPPLIERS HAVE BEEN DERIVED FROM THE FOLLOWING LEADING COMPANIES:
- Nortel
Networks: Multi service platforms, voice switches, layer 2 and 3 switches
- Polycom:
Videoconferencing and audio conferencing solutions
- Alcatel: For TDM
multiplexing and digital cross connect solutions
- Verint
Systems: Quality monitoring and feedback systems based on actionable
intelligence
- Concerto and
Interactive Intelligence: Customer interaction management suite of
products
- DMC Stratex
and Aperto: Point-to-point and point-to-multipoint radio solutions in various
frequency bands
- Acterna: Text and
measurement solutions
- Amp, Molex
and other Indian manufacturers: For copper and fiber media cables
Nortel Networks
- Established
more than a century ago, Nortel Networks has a tradition of innovation and
global leadership in shaping the evolution of communications.
- Nortel
Networks is we're delivering networking and communication services and
infrastructure to service providers and enterprises in more than 150
countries.
- Industry
leader. Provides high performance network infrastructure, contact centre
and other enterprise solutions to carriers and enterprise customers in
more than 150 countries.
- Delivers
scalable, flexible and resilient solutions with a product portfolio which
spans packet, optical, wireless and voice technologies, thereby delivering
numerous new services and applications, as well as seamless and ubiquitous
broadband connectivity
- Commanded the
largest
Concerto
- Concerto is a
proven provider of customer interaction management (CIM) solutions to more
than 1,200 businesses worldwide, which enable companies to more
effectively manage interactions with customers via voice, email, the Web
and fax.
- Founded in
1981 as a dialer provider, the company has evolved significantly, yet
remains exclusively focused on the contact center industry.
- Concerto
enable its diverse customer base across many industries including
healthcare, financial services, travel, telecommunications and utilities
to provide superior customer service.
- Leader in the
outbound predictive dialing solutions.
- Provides
professional services, software services and managed services.
- Possesses
large number of patents in predictive dialing solutions.
- Offers state of
the art solutions built on the latest predictive dialing technology.
Polycom
- Founded in
1990, Polycom is the only company today delivering end-to-end rich media
collaborative applications for voice, video, data and the web from desktop
and mobile personal systems to room systems to the network core, enabling
people to connect anytime, anyplace and with any device in a virtual
experience as natural as being there.
- In addition
to being the worldwide leader in market share for best in class group and
personal video systems, video and voice collaboration infrastructures and
conference phones, Polycom also has the only solution for delivering
Unified Collaborative Communications - the convergence of voice, video,
data and web - known as The Polycom Office.
- The
combination of strategic acquisitions and continual product innovation
positions Polycom for continuing its market and technology leadership in
voice, video, web and data collaboration.
Headquartered in - Polycom's
Industry Leadership
4Creator of over 300 patents in collaborative communications
4Market leader in video conferencing systems - ViewStation®, iPowerTM and ViaVideoTM
4Market leader in voice conferencing endpoints - SoundStation®
4Market leader in video management systems - Global Management SystemTM
4Market leader in video network infrastructure systems - MGC-100TM
4Market leader in voice conferencing - OCI, Redivoice
Verint
- Verint
Systems Inc. is a leading provider of analytic software solutions for
communications interception, digital video security and surveillance, and
enterprise business intelligence.
- Verint
solutions transform raw voice, video, and data into actionable
intelligence and mission-critical analysis to enhance security and
increase enterprise profitability.
- Verint
actionable intelligence solutions empower more than 1,000 organizations in
50 countries.
- Verint's
innovative product architecture enables us to deliver solutions that scale
to the size and growth of our customers' organizations. Built on open
systems using industry standards, our solutions are designed to integrated
seamlessly with existing IT infrastructures, leveraging our customers'
investments and reducing total cost of ownership.
- An industry
leader in the development, manufacture and marketing of microwave radio
solutions for point-to-point applications in licensed frequency bands,
enabling the development of complex communications networks worldwide.
- Achieved
international recognition for quality, innovation and technical
superiority in delivering wireless transmission systems for the transport
of data, voice and video communication systems.
- Enjoying 18
years of experience in specialized wireless solutions. Built a global
customer base spanning a wide variety of applications and geographic
locations. Deployed more than 200,000 systems in over 95 countries. One of
the largest installed bases in the industry.
- Has more than
200 active accounts, including Mobile Cellular service providers, public
and private fixed network operators, including (among others): Cingular,
Sprint (United States), Telcel (Mexico), Embratel (Brazil), France
Telecom/Orange (Europe), Firstmark (France), Centertel (Poland), Panafon
(Greece), MTN (Africa), Orascom (MEA), China Unicom, and China Mobile
(China).
Alcatel
- Designs, develops
and builds innovative and competitive communications network.
- Provides
end-to-end communications solutions, enabling carriers, service providers
and enterprises to deliver any type of content (voice, data and
multimedia) to any kind of customer anywhere in the world.
- Provides
best-of-breed bandwidth management solutions and primary data multiplexing
products.
- Leveraging
its long-term leadership in telecommunications network equipment as well
as its expertise in applications and network services, Alcatel enables its
customers to focus on optimizing their service offerings and revenue
streams
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. 40.91 |
|
|
1 |
Rs. 80.46 |
|
Euro |
1 |
Rs. 54.60 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--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 |
|
60 |
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 |
|