MIRA
INFORM REPORT
|
Report Date : |
26.06.2007 |
IDENTIFICATION DETAILS
|
Name : |
FLEXTRONICS
TECHNOLOGIES INDIA PRIVATE LIMITED |
|
|
|
|
Registered
Office : |
88/A, |
|
|
|
|
Country: |
|
|
|
|
|
Financials (as
on): |
31.03.2006 |
|
|
|
|
Date of
Incorporation : |
12.01.2001 |
|
|
|
|
Com. Reg. No.: |
08-32965 |
|
|
|
|
CIN No.: [Company Identification No.] |
U31909KA2003PTC032965 |
|
|
|
|
TAN No.: [Tax Deduction & Collection Account No.] |
BLRF00406A |
|
|
|
|
Legal Form : |
Private Limited
Liability Company. |
|
|
|
|
Line of
Business : |
The company is
engaged in the business of manufacturing of Printed Circuit Board,
Multiplexers and Set top boxes. |
RATING & COMMENTS
|
MIRA’s Rating
: |
Ba |
RATING |
STATUS |
PROPOSED
CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation
is considered normal. Capable to meet normal commitments. |
Satisfactory |
|
Maximum Credit
Limit : |
USD 3000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment
Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a
well-established and reputed company of worldwide Flextronics Group. Trade relations
are fair. Payments are usually correct and as per commitments. The company is
doing well. It can be
considered good for normal business dealings at usual trade terms and
conditions. It can be
regarded as a promising business partner in a medium to long run. |
LOCATIONS
|
Registered
Office/ Factory: |
88/A, |
|
Tel. No.: |
91-80-28520022/
28520213/ 25017200 |
|
Fax No.: |
91-80-28521030/
25212024/ 28520301 |
|
Email: |
|
|
Website: |
|
|
Area : |
18000 sq. ft. |
|
Location : |
Owned |
|
|
|
|
Factory : |
A-380, Defence
Colony, New Delhi-110024, |
|
Tel. No.: |
91-80-28530022 |
|
Fax No.: |
91-80-28521078 |
|
|
|
|
Branches : |
17, Subhash Marg,
Daryaganj, |
|
Tel. No.: |
91-11-23272024/64 |
|
Fax No.: |
91-11-23287371 |
|
|
|
|
Branch |
Plot 3, Phase 2, SIPCOT Industrial Park, Sandavellur C Village,
Sriperumbudur Taluk, Kanchipuram-602106, Tamilnadu, India |
|
Tel. No.: |
91-44-37180264 |
|
Fax No.: |
91-44-45050492 |
DIRECTORS
|
Name: |
Mr. Bhardwaj Kumar Ashish |
|
Designation : |
Director [Foreign] |
|
Date of Birth: |
20.02.1964 |
|
Date of
Appointment: |
12.01.2001 |
|
Resignation
Date: |
11.10.2001 |
|
Address : |
139, Palm Drivere Dhill, |
|
|
|
|
Name: |
Mr. Manny Al Marimuthu |
|
Designation: |
Director [Foreign] |
|
Date of Birth: |
11.10.1961 |
|
Date of
Appointment: |
12.01.2001 |
|
Address: |
Room A, 32/F, Block – 7, |
|
|
|
|
Name: |
Mr. Veriah Poonnaiah |
|
Designation: |
General Manager & Director [Foreign] |
|
Address: |
#106, |
|
Date of Birth: |
11.10.1961 |
|
Qualification: |
B.E. (Mechanical) |
|
Experienced: |
20 Years |
|
Date of
Appointment: |
23.09.2004 |
|
|
|
|
Name: |
Mr. A Ven Kateswarlu |
|
Designation: |
Director |
|
Address: |
13, 3rd Cross, Muneswar Nagar, |
|
|
|
|
Name: |
Mr. Sanjay Yellore |
|
Designation : |
Director |
|
Address: |
611/ 6th Floor, Chitrapur Apartments, 15th
Cross Malleswaram, |
|
Date of Birth: |
02.12.1973 |
|
Date of
Appointment: |
23.09.2004 |
|
|
|
|
Name: |
Mr. Sridhar Suryanarayanan |
|
Designation : |
Secretary |
|
Address: |
Flat 104, Keerthi Ornatta Cvraman Nagar, |
|
Date of Birth: |
15.08.1968 |
|
Date of
Appointment: |
20.07.2006 |
|
|
|
|
Name: |
Mr. Gururaj A |
|
Designation : |
Director |
|
Address: |
449 Amarjyothi Layout, |
|
Date of Birth: |
05.05.1958 |
|
Qualification: |
M Tek (Optical Communication); MS (Electrical Engineering) |
|
Date of
Appointment: |
04.03.2005 |
|
|
|
|
Name: |
Mr. Ganesh |
|
Designation: |
Director – Business Development- ODM |
|
Qualification: |
B.E. (Electronics & Instrumentations) |
|
Experienced: |
19 Years |
|
Date of
Appointment: |
01.03.2004 |
|
|
|
|
Name: |
Mr. Parthibhan |
|
Designation: |
Director |
MAJOR SHAREHOLDERS
|
Names
of Shareholders |
|
No. of Shares |
|
Bhardwaj Kumar Ashish |
|
10010 |
|
Manny Al Marimuthu |
|
10 |
|
Joseph Devadas |
|
1 |
|
Sanjay Yellore |
|
1 |
|
Flextronics
International Asia Pacific Limited |
|
26558682 |
|
TOTAL: |
|
26568704 |
As on 31.03.2006
Foreign holdings : 100%
BUSINESS DETAILS
|
Line of
Business : |
The company is engaged
in the business of manufacturing of Printed Circuit Board, Multiplexers and
Set top boxes. |
||||||||
|
|
|
||||||||
|
Products : |
Alternators,
Miscellaneous Machine Tools, Electrical Components and Devices, Miscellaneous
Electrical Equipment, Testing and Measuring – Medical, Electrical &
Electronics, Electronics Test and Measuring Instruments, power Generator
Equipment, Electronics Test and Measuring Instruments. |
PRODUCTION
STATUS
|
Particulars |
Unit |
Actual Production |
|
Plastic Assembly |
Quantity |
NIL |
|
PCB Assembly |
Quantity |
238751 |
|
TV Tuners |
Quantity |
20762 |
|
Routers |
Quantity |
1083 |
|
Set Top Boxes |
Quantity |
1434 |
|
Telephone Wall
Sets |
Quantity |
154098 |
|
M- Track System |
Quantity |
165 |
|
M – Track System
– EHTP |
Quantity |
1030 |
|
TOTAL: |
|
417323 |
GENERAL INFORMATION
|
No. of
Employees : |
Around 297 |
|
|
|
|
Bankers : |
Not Available |
|
Auditors : |
S. P. Nagrath and
Company Chartered
Accountants |
|
Address : |
|
|
|
|
|
Holding
Company : |
Flextronics
International Asia Pacific Limited |
|
|
|
|
Group
Companies: |
Ř
Flextronics
Enterprise Solution, Inc (FESI) Ř
Flextronics
Technologied (Shah Alam) Sdn. Bhd. Ř
Flextronics
International USA, Inc. Ř
Flextronics
Manufacturing ( Ř
Flextronics
International EQTOIS Serv Limited Ř
Flextronics
Manufacturing (Shahghai) Company Limited Ř
Flextronics
International Technologia Limited Ř
Flextronics
International Ř
Flextronics
Technologies (Zuhai) Company Limited Ř
Flextronics
International Ř
Flextronics
International Inc. Ř
Flextronics
International Ř
Flextronics
Technology ( Ř
Flextronics
Sales & Marketing (A-P) Limited, Ř
Flextronics
Inter. Amazonia Limited Ř
Flextronics
International Ř
Flextronics
International |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
35000000 |
Equity Shares |
Rs.10/- each |
Rs. 350.000 Millions |
|
115000000 |
Preference Shares |
Rs.10/- each |
Rs.1150.000 millions |
|
|
Total |
|
Rs.1500.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
26568694 |
Equity Shares |
Rs.10/- each |
Rs. 265.687 Millions |
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF
FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
SHAREHOLDERS FUNDS |
|
|
|
|
1] Share Capital |
265.687 |
265.686 |
58.763 |
|
2] Share Allotment Money |
396.597 |
0.000 |
0.000 |
|
2] Reserves & Surplus |
111.099 |
144.775 |
72.642 |
|
3] Profit and Loss A/c |
(8.584) |
0.000 |
0.000 |
NETWORTH
|
764.799 |
410.461 |
131.405 |
|
LOAN FUNDS |
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
2] Unsecured
Loans |
0.000 |
0.000 |
230.815 |
TOTAL
BORROWING
|
0.000 |
0.000 |
230.815 |
|
DEFERRED TAX
LIABILITIES |
0.000 |
6.137 |
7.895 |
|
|
|
|
|
TOTAL
|
764.799 |
416.598 |
370.115 |
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
193.381 |
183.095 |
208.331 |
|
Capital work-in-progress |
748.509 |
2.577 |
4.802 |
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
DEFERREX TAX
ASSETS |
0.000 |
3.484 |
14.720 |
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
Inventories |
368.514 |
518.452 |
133.157 |
|
Sundry Debtors |
606.907 |
246.541 |
61.468 |
|
Cash & Bank Balances |
61.353 |
44.670 |
25.755 |
|
Other Current Assets |
0.000 |
0.000 |
0.000 |
|
Loans & Advances |
148.673 |
74.425 |
42.039 |
|
Total Current Assets |
1185.447 |
884.088 |
262.419 |
|
Less: CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
Current Liabilities |
1336.712 |
645.446 |
120.166 |
Provisions
|
25.826 |
11.200 |
0.000 |
Total Current Liabilities
|
1362.538 |
656.646 |
120.166 |
Net
Current Assets
|
(177.091) |
227.442 |
142.253 |
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.009 |
|
|
|
|
|
TOTAL
|
764.799 |
416.598 |
370.115 |
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Sales Turnover [including other income] |
1596.338 |
1153.239 |
421.096 |
|
|
|
|
|
|
Profit/(Loss) Before Tax |
(18.204) |
51.427 |
(33.403) |
|
Provision for Taxation |
(15.473) |
20.679 |
11.199 |
|
Profit/(Loss) After Tax |
(33.677) |
30.748 |
(22.204) |
|
|
|
|
|
Total Expenditures
|
1552.935 |
1101.812 |
454.500 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
PAT / Total Income
|
(%)
|
(2.11)
|
2.67 |
(5.27) |
|
|
|
|
|
|
Net Profit Margin
(PBT/Sales) |
(%) |
(1.14)
|
4.46 |
(7.93) |
|
|
|
|
|
|
Return on Total Assets
(PBT/Total
Assets} |
(%) |
(0.85)
|
4.79 |
(6.81) |
|
|
|
|
|
|
Return on Investment (ROI)
(PBT/Networth) |
|
(0.02)
|
0.13 |
(0.25) |
|
|
|
|
|
|
Debt Equity Ratio
(Total
Liability/Networth) |
|
1.78
|
1.60 |
2.67 |
|
|
|
|
|
|
Current Ratio
(Current
Asset/Current Liability) |
|
0.87
|
1.35 |
2.18 |
LOCAL AGENCY FURTHER INFORMATION
History
Subject was incorporated on 12.01.2001 at
The company’s registered office has been shifted from A-380,
Defence Colony,
The company is accredited with ISO 9001:2000 and ISO 140001 Certification.
Business Operations Overview and Outlook:
The company, which is a part of Flextronics Group, the
world’s largest Electronics Manufacturing Services (EMS) Provider, completed
its fourth year of operations in
The company has stretched its wings from manufacturing to service sector. i.e. Business process Outsourcing. The Service sector of the company has grown substantially, making its delightful presence felt in the market, resulting in increased opportunity and wider outlook.
The business Processing Outsourcing segment is presently operating for the Asian and European sites of the associate group companies. In view of taking advantage of exciting opportunity available in the market, the company has recently opened its branch in Chennai to cater to the world wide requirements of processing functions.
The company has been approached by various customers during the year for the manufacture of set top boxes, automotive cards, energy meters, mobile phones, ATM Stations, point of sale equipments, net working base stations and they are confident of meeting the requirements of their customers.
To diversify their presence in various sectors, the company strategies its presence in Auto Electronics, to win orders in manufacturing “Control Cards for two and four wheelers.
The company got a new order for the mobile phone manufacturing
operations from Motorola. Due to this, the company is expanding its
manufacturing operations in
The assurance from new customers and the government of
The company continues to focus on Quality and IT Systems.
The company has also invested in building competence of people, both in
technical skill and behavioral skills. With all these activities, they are
positioning their selves as a leader in
The financial year also saw the company focus on key initiatives like Lean Manufacturing and Six Sigma. The company has achieved a substantial savings by implementing the six sigma initiatives recommended by the team.
Fixed Assets:
Land Freehold, Leasehold Improvements, Building, Plant & Machinery, Office Equipment, Computer, Furniture & Fixtures, Vehicles etc.
Products :
AUTOMOTIVE
Engine Management Card
Consumer
TV Tuners
Set Top Box
Industrial
Energy Meters
Telecommunications
Cellular Phone
Telecommunications Infrastructure
Networking Cards
WLL Wallsets
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.40.81 |
|
|
1 |
Rs.80.57 |
|
Euro |
1 |
Rs.54.91 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
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 |
|