MIRA INFORM REPORT

 

 

Report Date :

12.11.2007

 

IDENTIFICATION DETAILS

 

Name :

CISCO SYSTEMS (INDIA) PRIVATE LIMITED

 

 

Registered Office :

Prestige Water Ford, 9, Brunton Road, Bangalore – 560025, Karnataka

 

 

Country :

India

 

 

Financials (as on) :

31.03.2006

 

 

Date of Incorporation :

29.12.1995

 

 

Com. Reg. No.:

08.19505

 

 

CIN No.:

[Company Identification No.]

U31909KA1995PTC019505

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

BLRC01451C

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturing of Networking Equipment for the Internet.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Aa

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

USD 31437032

 

 

Status :

Excellent

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established company engaged in the business as developers and suppliers of Computer Software and related services. The company has been making good progress in its turnover and profits. Financial position of the company is good. Trade relations are reported as fair. Payments are usually correct and as per commitments.

 

It can be considered normal for business dealings at usual trade terms and conditions.

 

 

LOCATIONS

 

Registered Office/Software Dev. Centre/ Brach

Prestige Water Ford, 9, Brunton Road, Bangalore – 560025, Karnataka

Tel. No.:

91-80-24318090

Fax No.:

91-80-25321298

Website :

http://www.cisco.com

 

 

Main Offices New Delhi

 

Birla House (East Tower) 7th, 8th and 9th floor 25, Barakhamba Road
New Delhi 110001
Phone:  91 11 4261 1000
Fax: 91 11 2376 6126
Contact Person: Debjani De

 

 

Branches :

MUMBAI

 

6th floor
IL & FS Financial Centre
Plot C-22, G-Block
Bandra Kurla Complex
Bandra (East)
Mumbai - 400051
Phone:  91 22 4043 4000
Fax: 91 22 2653 3703
Contact Person: Shalini Surana

 

BANGALORE (Sales and R&D)

 

2nd Floor Brigade South Parade
10, M.G. Road
Bangalore - 560 001
Karnataka
 Phone: 91 80 4159 3000
Fax: 91 80 2532 7282
Contact Person: Jawad Hussain

 

CHENNAI

Apeejay Business Centre
No 12, Haddows Road
Nungambakkam
Chennai - 600006
Tamil Nadu
 Phone:  91 44 2822 4949
Fax: 91 44 2826 2447
Contact Person: Raj Kumar Natarajan

 

KOLKATA

 

Apeejay Business Centre
8th Floor, Block A
Apeejay House
15, Park Street
Kolkata - 700016.
Phone:  91 33 4400 1000
Fax: 91 33 2217 1137
Contact Person: Amit malik

 

HYDERABAD

 

Suite # 207, DBS House
1-3-43-46
S P Road
Secunderabad - 500003
 Phone:  91 40 4022 3400
Fax: 91 40 2784 6855
Contact Person: Sunil Kumar Raja

 

 

DIRECTORS

 

Name :

Mr. S Devarajan

Designation :

Managing Director 

Date of Birth / Age

31.10.1954

 

 

Name :

Mr. Bijesh J. Thakker

Designation :

Director

Address :

183-B, Heera Panna, Haji Ali, Mumbai – 400 026

Date of Birth / Age

12.11.1962

Date of Appointment :

29.12.1995

 

 

Name :

Mr. Daniel M. Scheinman

Designation :

Director (w.e.f. 03.02.1999)

Address :

115, W, Poplar San Mateo, California – 094402, USA

 

 

Name :

Mr. Richard Joseph Justice

Designation :

Director

 

 

Name :

Mrs. Sangita B Thakkar

Designation :

Director

Address :

183-B, Heera Panna, Haji Ali, Mumbai – 400 026

Date of Birth / Age

13.06.1963

Date of Appointment :

04.09.2001

 

 

 

MAJOR SHAREHOLDERS

 

Names of Shareholders

Percentage of Holding

 

CISCO USA & Nominees

100%

 

 

 

 

 

 

 

Equity Share Breakup

 

 

Foreign holding (Foreign Institutional Investors ) Foreign companies Foreign financial institutions, Non-resident Indians or Overseas corporate bodies or others

100.00

 

Total

100 %

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturing of Networking Equipment for the Internet.

 

 

Products :

Item Code

Principal Products

8524.00

Development of Software

8517.00

Marketing and Support Services

8524.99

Networking Spares

 

 

Exports to :

USA

 

 

Imports from :

USA, Singapore, Australia and UK 

 

 

 

 

GENERAL INFORMATION

 

Suppliers :

v      Cisco Systems Inc, USA

v      Cisco Systems (USA) Private Limited

v      Cisco Systems (Austria) Private Limited

v      Cisco Systems Limited, UK  

 

 

Customers :

v      Cisco Systems Inc, USA

v      Its Associates

v      Ciscpo Technology Inc, USA 

 

 

Bankers :

Unknown

 

 

Facilities :

--

 

 

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

Lovelock and Lewes

Chartered Accountants

Address

Price Water House, Mittal Tower, 10th Floor, C Wing, 47 / 6 M. G. Road, Bangalore – 560001, Karnataka

 

 

Associates/Subsidiaries :

Cisco Companies Worldwide

 

subsidiaries

 

v      Cisco Technology Inc., USA

v      Cisco Systems (USA) Pte Limited, Singapore

v      Cisco Systems (Scotland) Limited, Scotland

v      Cisco Systems Australia Pty Limited, Australia

 

 

Holding company

Cisco Systems Management BV, The Netherlands

 

 

Parent Company

Cisco Corporation, USA

 

 

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

1500000

Equity shares

Rs. 10 /-each

Rs.15.000 Millions

49000000

Preference

Rs.10/- each

Rs.490.000 Millions

 

 

Total

Rs.505.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

1305714

Equity shares

Rs. 10 each

Rs.13.057 Millions

33000000

Preference

Rs.10/- each

Rs.330.000 Millions

 

 

Total

Rs.343.057 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

343.057

343.057

339.929

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

7516.201

5273.056

3752.090

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

7859.258

5616.113

4092.019

LOAN FUNDS

 

 

 

1] Secured Loans

99.197

99.316

0.000

2] Unsecured Loans

0.000

0.000

0.000

TOTAL BORROWING

99.197

99.316

0.000

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

7958.455

5715.429

4092.019

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

707.026

580.479

386.875

Capital work-in-progress

49.760

38.392

0.516

 

 

 

 

INVESTMENT

0.000

0.000

0.000

DEFERREX TAX ASSETS

116.663

86.368

59.322

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
1573.339

1080.984
535.209

 

Sundry Debtors
5388.827

3894.028
3256.620

 

Cash & Bank Balances
61.081

65.608
44.171

 

Other Current Assets
1254.493

777.239
0.000

 

Loans & Advances
151.247

151.724
513.184

Total Current Assets
8428.987

5969.583

4349.184

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
1240.377

828.341
633.891

 

Provisions
103.604

131.052
69.987

Total Current Liabilities
1343.981

959.393
703.878

Net Current Assets
7085.006

5010.190
3645.306

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

7958.455

5715.429

4092.019

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2006

31.03.2005

31.03.2004

Sales Turnover

N.A

5628.310

4091.415

Other Income

N.A

35.006

18.143

Total Income

N.A

5663.316

4109.558

 

 

 

 

Profit/(Loss) Before Tax

N.A

1537.230

1299.457

Provision for Taxation

N.A

34.285

9.882

Profit/(Loss) After Tax

N.A

1502.945

1289.575

 

 

 

 

 

 

 

 

Expenditures :

 

 

 

 

Cost of Goods Sold

N.A

797.044

491.155

 

Administrative Expenses

 

160.035

50.469

 

Salaries, Wages, Bonus, etc.

 

1389.824

779.906

 

Depreciation & Amortization

 

561.475

403.758

 

Other Expenditure

 

1217.708

1084.813

Total Expenditure

N.A

4126.086

2810.101

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2006

31.03.2005

31.03.2004

PAT / Total Income

(%)
---

26.53
31.51

 

 
 

 
 

Net Profit Margin

(PBT/Sales)

(%)
---

27.31
31.76

 

 
 

 
 

Return on Total Assets

(PBT/Total Assets}

(%)
---

426.09
27.43

 

 
 

 
 

Return on Investment (ROI)

(PBT/Networth)

 
---

0.27
0.31

 

 
 

 
 

Debt Equity Ratio

(Total Liability/Networth)

 
0.18

0.18
0.17

 

 
 

 
 

Current Ratio

(Current Asset/Current Liability)

 
6.27

6.22
6.17

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

HISTORY

 

The company was incorporated on 19th December, 1995 at Bangalore in Karnataka having Company Registration Number 19505.

 

Since shipping its first product in 1986, the company has grown into a global market leader that holds No. 1 or No. 2 market share in virtually every market segment in which it participates.  Since becoming public company in 1990, the company's annual revenues have increased from US $ 69 millions in that year to US $ 12.15 billions in fiscal 1999.

 

BUSINESS

 

The company is engaged in manufacturing of networking equipment for the internet.  It also develops software for export, design, consultancy, networking products for Internet and Telecommunications. 

 

 

It is also engaged in turnkey solutions, multi-media, internet working solutions, products, services including software based routers, bridges, work group systems, ATM services, class servers, routers management applications, speech processing equipments, office / factory automation equipments, software, hardware, programming and consultancy.

 

Subject is a worldwide leader in networking for the Internet.  Its' networking solutions connect people, computing devices and computer networks, allowing people to access or transfer information without regard to differences in time, place or type of computer system.  It provides end-to-end networking solutions.

 

The company offers the industry's broadcast range of various hardware products used to form information networks or give people access to those networks, the company's IOS software, which provides network services and enables networked applications, expertise in network design and implementation and technical support and professional services to maintain and optimise network operations.

 

The company develops its products and solutions around widely accepted industry standards.  The company's products are sold and supported through a worldwide network of direct sales representatives and business partners.

 

Subject is the third largest company on NASDAQ and among the top 10 in the world.

 

The company had entered into a software development agreement with Cisco Systems Inc., USA on 1st February, 1999 and International Services Agreement dated 1st June, 1999.

 

The company's fixed assets of important value include computers, office equipments, furniture & fixtures, leasehold improvements and motor vehicles, etc.

 

Fixed Assets

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No 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.39.33

UK Pound

1

Rs.81.75

Euro

1

Rs.57.54

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

8

PAID-UP CAPITAL

1~10

8

OPERATING SCALE

1~10

8

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

9

--PROFITABILIRY

1~10

7

--LIQUIDITY

1~10

8

--LEVERAGE

1~10

8

--RESERVES

1~10

8

--CREDIT LINES

1~10

8

--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

 

72

 

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.

 

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

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions