MIRA
INFORM REPORT
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Report Date : |
13.09.2007 |
IDENTIFICATION DETAILS
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Name : |
SOFTPRO SYSTEM LIMITED |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
20.11.1991 |
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Com. Reg. No.: |
13479 |
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CIN No.: [Company
Identification No.] |
L72200AP1991PLC013479 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
HYDS04722E |
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Legal Form : |
A Closely held Public Limited Liability Company |
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Line of Business : |
Distributor of edge technology solutions like Software Development and
Technology Integration. |
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 826548 |
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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 records. Directors are reported as experienced 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 : |
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Tel. No.: |
91-40-23111793 / 23111806 |
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Fax No.: |
91-40-23100385 |
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E-Mail : |
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Website : |
DIRECTORS
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Name : |
Mr. |
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Designation : |
Managing Director |
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Name : |
Mr. A Mallikharjuna Rao |
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Designation : |
Executive Director |
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Date of Birth/Age : |
15.04.1933 |
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Qualification : |
M.A. |
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Date of Appointment : |
21.11.1991 |
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Directorship in other companies: |
Call World Technologies Limited |
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Name : |
Dr. A Giridhar Rao |
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Designation : |
Director |
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Name : |
Mr. A P Rao |
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Designation : |
Director |
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Name : |
Dr. D Hanumantha Rao |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. K Hemachandra |
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Designation : |
Chief Executive Officer |
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Date of Birth/Age : |
53 Years |
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Qualification : |
B.Tech (IIT |
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Experience : |
26 Years |
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Date of Appointment : |
01.07.2006 |
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Previous Employment : |
Avineon India Private Limited |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Equity Shares: |
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Mr. A Mallikharjuna Rao |
150316 |
0.00 |
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Category: |
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Promoters |
3712829 |
61.88 |
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Private Corporate Bodies |
294096 |
4.90 |
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Indian Public |
1992450 |
33.21 |
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Non - Resident Indians |
625 |
0.01 |
BUSINESS DETAILS
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Line of Business : |
Distributor of edge technology solutions like Software Development and
Technology Integration. |
GENERAL INFORMATION
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Customers : |
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Bankers : |
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Axis Bank
Limited Address: Begumpet, ·
State Bank of Address: IF Branch, Panjagutta, ·
State Bank of Address: |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Mr. K Sivaramaiah Chartered Accountants |
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Address : |
I-607, 6th Floor, Divya Shakti Commercial Complex,
Ameerpet, |
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Associates/Subsidiaries : |
·
Call World Technologies Limited ·
Softpros Inc |
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Holding Companies: |
·
Softpro Technologies Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
8250000 |
Equity share |
Rs.10/- each |
Rs.82.500 millions |
|
750000 |
Redeemable Preference Shares |
Rs.10/- each |
Rs.7.500 millions |
Issued, Subscribed :
|
No. of Shares |
Type |
Value |
Amount |
|
6000000 |
Equity Shares |
Rs.10/- each |
Rs.60.000
millions |
Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
5999525 |
Equity Shares |
Rs.10/- each |
RS.59.995
millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
59.995 |
59.995 |
60.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
146.642 |
144.106 |
133.300 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
206.637 |
204.101 |
193.300 |
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LOAN FUNDS |
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1] Secured Loans |
30.484 |
42.798 |
42.400 |
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2] Unsecured Loans |
0.000 |
0.000 |
1.000 |
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TOTAL BORROWING |
30.484 |
42.798 |
43.400 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
237.121 |
246.899 |
236.700 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
152.979 |
160.320 |
164.500 |
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Building Work-in-progress at Vizag |
1.794 |
0.000 |
0.000 |
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INVESTMENT |
21.957 |
21.341 |
21.300 |
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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 |
0.468
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4.638 |
2.500 |
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Sundry Debtors |
34.967
|
33.331 |
31.000 |
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Cash & Bank Balances |
13.526
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11.470 |
2.400 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
39.435
|
40.591 |
41.600 |
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Total
Current Assets |
88.396
|
90.030 |
77.500 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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18.600 |
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Provisions |
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|
8.000 |
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Total
Current Liabilities |
28.005
|
24.792 |
26.600 |
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Net Current Assets |
60.391
|
65.238 |
50.900 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
237.121 |
246.899 |
236.700 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
53.114 |
60.292 |
23.400 |
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Other Income |
14.759 |
12.268 |
38.400 |
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Stock Adjustments |
0.000 |
0.000 |
[1.200] |
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Total Income |
67.873 |
72.560 |
60.600 |
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Profit/(Loss) Before Tax |
6.405 |
15.400 |
16.600 |
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Provision for Taxation |
0.964 |
2.853 |
2.200 |
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Profit/(Loss) After Tax |
5.441 |
12.547 |
14.400 |
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Expenditures : |
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Change in WIP - Software |
4.170 |
[2.162] |
0.000 |
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Employees Costs |
30.110 |
29.003 |
0.000 |
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Business Development Expenses |
6.531 |
9.308 |
0.000 |
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Administrative Expenses |
8.974 |
8.791 |
0.000 |
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Financial Expenses |
4.023 |
4.487 |
5.200 |
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Depreciation on Assets |
7.657 |
7.732 |
7.400 |
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Power and Fuel Costs |
61.465 |
59.321 |
1.100 |
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Other Manufacturing Expenses |
0.000 |
0.000 |
2.500 |
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Employees Costs |
0.000 |
0.000 |
22.300 |
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Selling and Administration Expenses |
0.000 |
0.000 |
5.500 |
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Total Expenditure |
122.930 |
118.642 |
44.000 |
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QUARTERLY /
SUMMARISED RESULTS
|
Year |
30.06.2007 |
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Type |
1st Quarter |
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Sales
Turnover |
7.000 |
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Other
Income |
11.200 |
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Total
Income |
18.200 |
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Total
Expenditure |
9.100 |
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Operating
Profit |
9.100 |
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Interest |
0.900 |
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Gross
Profit |
8.200 |
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Depreciation |
1.500 |
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Tax |
1.500 |
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Reported
PAT |
5.200 |
200706 Quarter 1 --------------- Notes Net Sales includes
Export income from Software Development Rs 2.796 millions Domestic Income from Software
Rs 4.154 millions Other Income includes Lease / Rental Income Rs 6.931 millions
Other Income Rs 4.285 millions Expenditure Includes Increase /Decrease in stock
in trade and work in progress Rs 0.439 millions Employee Cost Rs 5.361 millions
Business Development Expenses Rs 0.468 million Administrative Expenses Rs 2.066
millions Other Expenses Rs 0.795 million Status of Investor Complaints for the
quarter ended June 30, 2007 Complaints Pending at the beginning of the quarter
Nil Complaints Received during the quarter Nil Complaints disposed off during
the quarter Nil Complaints unresolved at the end of the quarter Nil 1. The
above financial results were reviewed by the Audit Committee and approved by
the Board of Director at their meeting held on July 26, 2007. 2. The above
financial results are subject to Limited review by Auditors. 3. Previous
quarter figures have been regrouped / rearranged, wherever necessary.
KEY RATIOS
|
Year |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity
Ratio |
0.18 |
0.22 |
0.24 |
|
Long
Term Debt-Equity Ratio |
0.18 |
0.21 |
0.22 |
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Current
Ratio |
3.38 |
3.14 |
2.54 |
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TURNOVER
RATIOS |
|||
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Fixed
Assets |
0.15 |
0.19 |
0.13 |
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Inventory |
11.31 |
10.22 |
7.55 |
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Debtors |
0.86 |
1.14 |
0.84 |
|
Interest
Cover Ratio |
2.60 |
4.42 |
4.19 |
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Operating
Profit Margin(%) |
61.56 |
75.00 |
124.79 |
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Profit
Before Interest And Tax Margin(%) |
35.37 |
54.08 |
93.16 |
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Cash
Profit Margin(%) |
44.56 |
54.89 |
93.16 |
|
Adjusted
Net Profit Margin(%) |
18.37 |
33.97 |
61.54 |
|
Return
On Capital Employed(%) |
4.30 |
8.23 |
9.26 |
|
Return
On Net Worth(%) |
2.63 |
6.29 |
7.61 |
STOCK PRICES
|
Face Value |
Rs.10.00 |
|
High |
Rs.84.00 |
|
Low |
Rs.80.80 |
LOCAL AGENCY FURTHER INFORMATION
ANNUAL REPORTS:
Management Discussion
and Analysis Report
The financial
statements of the Company, Subsidiary Company and consolidated accounts have
been prepared in
Compliance with
the requirements of the Companies Act, 1956. There are no material departures
from the prescribed accounting standards. The Board of the Company accepts the
responsibility for the integrity and objectivity of the financial statements,
as well as for various estimates and judgments thereon.
Global Market
Scenario for IT Services
There is an
increase in outsourcing trend and Indian IT services segment is geared up to
capitalize on this positive trend. There is an expansion of market for both
generic and niche IT services. Big players are focused on generic IT services
while small players are focused on their competency driven businesses and niche
service offerings. The weakening of the dollar coupled with increasing costs of
direct and indirect labor is putting huge pressure on profit margins while at
the same time imports have become very attractive. They are witnessing that
more and more small and medium businesses in US and Europe are outsourcing
their IT projects to SME IT services organizations in
New Business Focus
As part of the business
transformation initiative launched during last financial year, the following
are the key Components of new business focus.
|
VERTICALS |
HORIZONTAL PRACTICES |
SERVICES |
|
Financial
Services |
eBusiness
Portals |
Application Development |
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Banking |
Learning
Management Solution |
Application Reengineering |
|
Logistics |
Campus Solutions |
Application Management |
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Retail |
Business
Intelligence |
Application Security and Access |
|
Higher Education |
Identity
Management |
Package Implementation Services |
|
Manufacturing |
Business Process
Management |
Professional Consulting Services |
The company is facing a big challenge in terms very high attrition rates with the opening up of jobs' market in a big way. However, steps are being taken to retain as well acquire new talents for managing current and future client engagements.
The company, having signed strategic alliance with Oracle
Corporation for implementing Oracle's PeopleSoft Campus Solution at higher
education institutions in
Also given the shortage of experienced software
professionals in the IT job market, the end user organizations are moving
towards vendor and hot-skills independent application development and
management platform such as BPM (Business Process Management). The company's
strategic alliance with
Quality Initiatives
The company has taken stringent measures in enhancing the quality of customer deliverables. The software quality assurance team and software engineering group are working together that quality of the final customer deliveries are world-class.
Financial Performance
During the Financial Year 2006-07, the company has achieved a total income of Rs. 67.874 millions against the previous year's corresponding total income of Rs. Rs.72.56 millions,” with an drop in revenue of 6.45%. The net profit for the financial year 2006-07 stands at Rs. 6.406 millions against a figure of Rs. 15.401 millions for the corresponding previous year.
Fixed assets:
·
Land with development
·
Building
·
Air conditioning System
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Plant and Machinery
·
Electrical Equipments
·
Electrical Fittings
·
Interiors, Furniture and Fixtures
·
Lift System
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Fire Safety Equipment
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Computers
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Software Tools and Packages
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Office equipment
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Library Books
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Motors Cars
·
Land at Vizag
(Under Development)
AS
PER WEBSITES DETAILS:
Registered
as Private Limited Company, Subject is been engaged in development of Computer
Software.
During the year 2000-01, the company has opened its branch at
The year 2000-01, marked the start of recession in the
The
company is setting up a state-of-the-art Software Development Centre at
Established in the year 1994, SoftPro is a business
solutions provider in Banking, Finance, Insurance, Retail, Telecom and
Manufacturing Industries. They deliver a wide range of leading – edge
technology solutions like Enterprise Portals, Application software development
and technology integration, ERP, Business Intelligence and e-Learning
solutions. They are currently working with clients in
They are a certified ISO 9001:2000 organization, by Det
Norske Veritas (DNV) of
SoftPro is listed on the Indian Stock Exchanges - Mumbai
Stock Exchange (BSE), National Stock Exchange (NSE) and Hyderabad Stock
Exchange (HSE) and actively traded on these bourses. They have development
centers in
Softpro understands and takes into account key business dynamics unique to each vertical industry – be it macro-economic environment, micro-economic environment, industry structure, supplier characteristics, customer buy behavior, operational standards, service standards, technology changes, digital economy impact, statutory requirements, management practices, labor dynamics, globalization or liberalization. Clear understanding of the specific industry in which the customer organizations operate together with a thorough knowledge of business processes are very important for architecting appropriate software solutions that address specific needs.
SoftPro has rich experience in offering business solutions to the following industry segments.
· Retail
Technology Alliances
SoftPro has entered into strategic technology alliances with a number of ISVs whose technologies and solutions are integral part its strategic business initiatives. It combines its marketing and solution delivery strength with the technology partner's application / product strength and takes them to the marketplace to solve customers' problems.
Business
Alliances
Following are the types of business alliances that SoftPro
would like enter into for developing business in US,
OAP – Outsourcing Alliance Partners are specialized in developing software products or offering IT services for end customers. SoftPro leverages its offshore development facility and software development skills to execute projects that address partners’ immediate requirements.
BAP – Business Alliance Partners are extensions of SoftPro's own sales and marketing team. They work very closely with their sales team and ensure that the prospective clients gain immensely from the pool of combined expertise. Being very close to the clients in terms of understanding the requirements, and in some case operating in the same region where the client is located; their partners would prove to be a big advantage for their clients.
Working at SoftPro
They believe that
their strength lies in their team. They believe that their team members are
their assets and it is their team that will ensure their success.
People development Model
Software profession
is challenging and exciting one for those who keep themselves abreast with the
latest technologies and methodologies. Being associated with Softpro one can
get wide learning opportunities to upgrade their skills through continuous
educational programs.
SoftPro believes
nurturing individual talents to achieve the corporate goals and objectives.
SoftPro offers a vibrant environment, where one's talent, expertise and
knowledge get a great chance to demonstrate to the world. Continuous learning,
knowledge sharing and empowerment are fuelled by SoftPro's culture that is
built to instill a family environment within the campus.
The concept is made
true by collective innovation by keeping Individuals Idea Engine to be more
creative on every task they undertake. SoftPro's people development process
built on a simple philosophy of 'Every one need to demonstrate their great
leadership talents in the areas where they excel" and "To get
inspiration from great leaders of the world and they should be the source of
inspiration for many others in the global society the way they do things
differently".
SoftPro is committed to offer:
·
Challenging
work content that enables their team members to move up the value chain by
providing opportunities to work in the latest leading-edge technology areas.
·
Opportunities
for self-growth through exciting assignments, continuous in-depth training and
job rotation. They offer twin career progression tracks - technical as well as
managerial.
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.40.49 |
|
|
1 |
Rs.82.38 |
|
Euro |
1 |
Rs.56.14 |
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 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--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 |
YES |
|
--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. |
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 |
|