MIRA
INFORM REPORT
|
Report Date : |
14.09.2007 |
IDENTIFICATION DETAILS
|
Correct Name : |
ZYLOG SYSTEMS LIMITED |
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Registered Office : |
82/ 40, First |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
01.06.1995 |
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Com. Reg. No.: |
18-31651 |
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CIN No.: [Company
Identification No.] |
L30006TN1995PLC031651 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHEZ03030G |
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Legal Form : |
A Public Limited Liability Company. The Company’s shares are listed on
Stock Exchanges. |
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Line of Business : |
The company has been providing cost-effective, high-quality software solutions
and services to benefit its worldwide clients, using the vast expertise of
its highly qualified technical team. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
|
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 8658000 |
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Status : |
Good |
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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 experienced and respectable businessmen. Trade relations are
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 /
Corporate Office : |
82/ 40, First |
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Tel. No.: |
91-44-24359637 / 24359638 / 24359694 / 24359639 / 24531600 / 27128400 |
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Mobile No.: |
91-9841277776 |
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Fax No.: |
91-44-24326420 |
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E-Mail : |
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Website : |
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Area : |
15,000 sq.fts |
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Location : |
Rented |
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Branches : |
Located at :-
Tel.
91-22-22659176/22670453/22670453 Fax. 91-22-22670453 E-mail. info@zylog.co.in
Tel. 91-44-28141830 Fax. 91-44-24326420 E-mail. admin@zylog.co.in
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Overseas Offices : |
Located at : ©
85,
Tel. 732-7676616
Fax. 732-7676626 ©
875 Avenue of ©
©
©
1236, west ©
© © B-3-6, Villa
Angsana, Jalan Krian 51100 Kuala Lumpur |
DIRECTORS
|
Name |
Mr. Sudarshan Venkatraman |
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Designation |
Chairman & Chief Executive Officer |
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Date of Birth |
28/07/1963 |
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Age |
39 Years |
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Address |
1105 Edison Glen Terrace, |
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Qualification |
MBA, BSc., BL |
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Experience |
13 + Years |
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Name |
Mr. Ramanujam Sesharathnam |
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Designation |
Managing Director & Chief Operating
Officer |
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Date of Birth |
19/06/1966 |
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Age |
37 Years |
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Address |
27, |
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Qualification |
MS (Computer Science) |
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Experience |
13 + Years |
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Name |
Mr. M. Gajhanathan |
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Designation |
Director |
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Age |
46 Years |
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Address |
21/3, |
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Experience |
46 Years |
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Qualification |
MA., B.L. |
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Name |
Mr. V. Chandramouly |
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Designation |
Non Executive Director |
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Name |
Mr. P Srikanth |
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Designation |
Independent Director |
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Name : |
Mr. S Rajagopal |
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Designation : |
Director |
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Name : |
Mr. A V Rajawade |
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Designation : |
Director |
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Name : |
Mr. Ajay Mittal |
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Designation : |
Director – Nominee |
KEY EXECUTIVES
|
Name : |
Mr. Jitendra Kumar Pal |
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Designation : |
Company Secretary |
BUSINESS DETAILS
|
Line of Business : |
The company has been providing cost-effective, high-quality software
solutions and services to benefit its worldwide clients, using the vast
expertise of its highly qualified technical team. |
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Products with ITC Code : |
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Terms : |
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Selling : |
Credit (90 days) terms |
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Purchasing : |
Credit (90 days) terms |
GENERAL INFORMATION
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Customers : |
The company’s major customers includes End Users. Some of the major customers of the company are: q
AXIS Bank Limited (Formerly UTI Bank Limited) q
State Bank of q
State Bank of q
The Vysya Bank Limited q
Corporation Bank q
Cosmos Co-operative Bank Limited q
Punjab Maharashtra Co-operative Bank Limited q
Charotar Nagrik Sahakari Bank Limited q
Tata TD Waterhouse q
Mafatlal Securities Limited q
JRG Associates Private Limited q
Mukesh Babu Securities Limited q
Ankit Securities Limited q
JK Securities Private Limited q
Southern India Depository Services Private
Limited |
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No. of Employees : |
Around 450 |
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Bankers : |
q
Union Bank of q
ABN Amro Bank q
PNC q
ICICI Bank Limited q
Central Bank of |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Brahmayya and Company Chartered Accountants |
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Memberships : |
Ö
Sprint PCS Wireless Web (Application Developers
Program) Ö
SyncML Ö
VoiceXML Ö
MAI (Mobile Application Initiative) Ö
Bluetooth |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
12,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 120.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
12850000 |
Equity Shares |
Rs. 10/- each |
Rs. 128.500 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
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|
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1] Share Capital |
128.500 |
104.200 |
104.200 |
|
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2] Reserves & Surplus |
2036.000 |
930.500 |
577.100 |
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NETWORTH |
2164.500 |
1034.700 |
681.300 |
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LOAN FUNDS |
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1] Secured Loans |
593.800 |
379.500 |
157.000 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
593.800 |
379.500 |
157.000 |
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TOTAL |
2758.300 |
1414.200 |
838.300 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
371.000 |
377.900 |
142.700 |
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Capital work-in-progress |
68.700 |
0.000 |
0.000 |
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INVESTMENT |
208.500 |
5.600 |
4.400 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
0.000
|
0.000 |
0.000 |
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Sundry Debtors |
1056.100
|
762.500 |
432.300 |
|
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Cash & Bank Balances |
806.200
|
299.000 |
163.200 |
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Loans & Advances |
449.500
|
129.000 |
140.000 |
|
Total
Current Assets |
2311.800
|
1190.500 |
735.500 |
|
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
201.700
|
159.800 |
15.400 |
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Provisions |
0.000
|
0.000 |
28.900 |
|
Total
Current Liabilities |
201.700
|
159.800 |
44.300 |
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Net Current Assets |
2110.100
|
1030.700 |
691.200 |
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TOTAL |
2758.300 |
1414.200 |
838.300 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Sales Turnover |
4034.300 |
2566.800 |
1464.800 |
|
Other Income |
6.300 |
11.500 |
3.300 |
|
Total Income |
4040.600 |
2578.300 |
1468.100 |
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Profit/(Loss) Before Tax |
557.800 |
389.700 |
196.800 |
|
Provision for Taxation |
17.300 |
18.500 |
13.700 |
|
Profit/(Loss) After Tax |
540.500 |
371.200 |
183.100 |
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Total Expenditure |
3482.800 |
2188.600 |
1271.300 |
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity
Ratio |
0.30 |
0.31 |
0.22 |
|
Long
Term Debt-Equity Ratio |
0.30 |
0.31 |
0.22 |
|
Current
Ratio |
9.69 |
9.44 |
18.04 |
|
TURNOVER
RATIOS |
|||
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Fixed
Assets |
5.13 |
4.45 |
3.65 |
|
Inventory |
0.00 |
0.00 |
0.00 |
|
Debtors |
4.44 |
4.30 |
4.12 |
|
Interest
Cover Ratio |
14.81 |
18.71 |
18.73 |
|
Operating
Profit Margin(%) |
17.16 |
19.20 |
16.21 |
|
Profit
Before Interest And Tax Margin(%) |
14.83 |
16.04 |
14.19 |
|
Cash
Profit Margin(%) |
15.73 |
17.63 |
14.52 |
|
Adjusted
Net Profit Margin(%) |
13.40 |
14.46 |
12.50 |
|
Return
On Capital Employed(%) |
28.67 |
36.55 |
28.45 |
|
Return
On Net Worth(%) |
33.79 |
43.26 |
30.68 |
STOCK PRICES
|
Face Value |
Rs. 10.00 |
|
High |
Rs. 471.850 |
|
Low |
Rs. 450.000 |
LOCAL AGENCY FURTHER INFORMATION
Biodata
The Company was originally incorporated as 'Zylog Systems Private Limited' on June 1, 1995. Further the company has converted into Public limited company and subsequently; company name was changed to 'Zylog Systems Limited' on May 11, 2000.
The company has a global services provider delivering technology-driven
business solutions that meet the strategic objectives of the clients. ZSL
delivers business value to customers through a combination of process
excellence, quality frameworks and service delivery innovation. The company has
received ISO 9001:2000 certificate and being rated CMMI Level 4.
In the year 1996, the company has opened first Offshore Development Center
(ODC) in Chennai, Tamilnadu and established the first sales and marketing
office in
In the year 2002, the company has acquired three businesses namely Silver
Spring Technologies (MD), Schumacher Consulting (MA) and Schmidt Systems (VA)
primarily expanding the Business Intelligence, Data Warehousing and Application
Integration solutions. The company has incorporated a 100% wholly owned
subsidiary Zylog Systems (UK) Limited.
In the year 2003, the company has entered strategic partnership with BCSIS
(subsidiary of OCBC,
In the year 2005, the company has incorporated a 100% wholly owned subsidiary,
Zylog Systems (
Over the years, the company has recorded a rapid pace of growth with
turn over of 400 millions and a team of 300 software technologists in
The company globally, expertise in wireless/WAP/Palm PC/E-Commerce and
Client-Server solutions. The company has clientele of international repute
across the glow. In
The company has been very quality conscious and reinforces this in its
products as well. The company was awarded the ISO 9001 in 1999 and striving
towards achieving the SEICMM level 4.
The company's services includes:-
Professional
Services
q
IT Consulting Management Consulting
q
Application Development Integration
Application
Development and Integration
q
Mobile Computing Solution
q
q
q
Network System Solution
q
Web Application System
It is in trade terms with:-
- UTI Bank
Limited
- State Bank of
- State Bank of
- The Vysya
Bank Limited
- Corporation
Bank
- Tata TD
Waterhouse
- Mafatlal
Securities Limited
- JRG Associates
Private Limited
- Mukesh Banu
Securities Limited
- Ankit
Securities Limited
- JK Securities
Private Limited
- Southern
India Depository Services Private Limited
The company’s fixed assets of important value includes plant &
machinery, computer equipment, furniture & fittings, interior decoration,
electrical fittings, office equipments, text books, vehicle and business
acquisitions.
As Per Web:
Profile :
Zylog Systems is an ISO 9001 certified provider of Onshore, Offshore & Near shore technology services. We offer substantial cost savings and enhanced performance associated with a secure and effectively managed global development model. For over 10 years, Zylog Systems has been partnering with a loyal following of clients seeking to leverage our proven delivery methodology, as well as 24/7 access to the very best technical resources and development tools available anywhere.
Zylog Systems leverages specialized knowledge in
q
Custom
q
q
q
q Q/A Testing,
q Mobile/Wireless/Web Application Development.
q To assist enterprises in raising service levels, while reducing costs.
Zylog Systems’s customer base includes small and medium sized companies across a broad range of verticals, as well as respected leaders in Finance & Banking, Insurance, Life Sciences, Telecommunications, Retail, and Manufacturing. Zylog Systems was ranked 318 for the year 2006 in the VAR Business 500 and was recognized among the fastest growing companies.
Technologies
Partners :
q
Microsoft
q
Hp Invent
q
Dell Com
q
IBM
q
Gupta
q
Brooktrout
q
Orange Partner
q
Sun – Iforce Partner
Alliances :
Ö
Motorola
Ö
SignalSoft
Ö
SpeechWorks
Ö
Palmone
Ö
Nextel
Ö
Sprint
Press Releases :
Edison, NJ, October 9th, 2006 – Zylog Systemsa global IT solution providers, featured in eWeek Channel Insider’s “The Channel is Changing and It’s time for VARs to change with it”
"You have to be constantly evaluating your business model and eliminate 'unprofitable' from you portfolio, while preparing for emerging solutions and services," Tiffani Bova, the channel sales research director for Gartner told her audience during her lecture "Reading the Tea Leaves: What the Future Holds for You."
VARs and solution providers should develop more partnerships and start collaborating with other resellers, Bova said. Revenue from these partnerships will grow significantly between now and 2010, She added.
"By year's end 2010, 70 percent of midsize VARs will generate at least 50 percent of revenues selling to, through and with other VARs, SIs [system integrators], ISVs and other service providers," said Tiffani Bova.
Mr. Shiv Kumar, Executive-Vice President, Zylog Systems, said his company, which develops application and maintenance solutions, has started a partnership with a telecommunications company.
Mr. Kumar said Zylog Systems is using that partnership to enter the managed service space as well as deliver business intelligence solutions. "This talk really confirms where we are going and that's it's the right thing to do," Kumar added.
Bova said that customers collect volumes of data but need a smart solution to help make sense of what they have collected. There will also be a greater demand for SAAS (software-as-a-service) products, as well as a great demand for managed solutions, she said.
"IT vendors will reduce current partner populations by 25 percent based on lack of engagement and strategic relevance by year-end 2008," said Bova.
Bova also believes there will also be fewer vendors in the IT field in the coming years and those that are left will be looking for partners who can both be flexible and offer a specific set of skills. At the same time, the demands of customers, coupled with a much more tech-savvy workplace, will increase demands on the solutions and services that VARs can provide, she added.
The way to counter these changes is to build new partnerships. VARs and solution providers need to partner with other resellers and look to see which vendors and distributors can furnish them with the best products, she said.
"I love the channel, and I want to see a partner population out there that is healthy," Bova said.
About Zylog Systems
Zylog Systems is an ISO 9001 certified provider of Onshore, Offshore & Near shore technology services. We offer substantial cost savings and enhanced performance associated with a secure and effectively managed global development model. For over 10 years, Zylog Systems has been partnering with a loyal following of clients seeking to leverage our proven delivery methodology, as well as 24/7 access to the very best technical resources and development tools available anywhere.
Zylog Systems leverages specialized knowledge in Custom Enterprise Application Development, Enterprise Reporting, Enterprise Data Management & Administration, Enterprise Application Integration, Q/A Testing, Mobile/Wireless/Web Application Development.
Zylog System's customer base includes small and medium sized companies across a broad range of verticals, as well as respected leaders in Finance & Banking, Insurance, Life Sciences, Telecommunications, Retail, and Manufacturing.
About eWeek Channel Insider
eWeek Channel Insider is a trademark of Ziff Davis Publishing Holdings Inc. eWeek is a leading integrated media covering every aspect of the technology reseller distribution channel with Information technology distributors and service providers news, reviews and case studies.
About Ziff David Media
Ziff Davis Media Inc. (www.ziffdavis.com) is
a leading integrated media company serving the technology and videogame
markets. Ziff Davis reaches over 28 million people a month through its portfolio
of 32 websites, 7 award-winning magazines, and hundreds of consumer and b-to-b
events, as well as business IT tools, custom publishing, and direct marketing
services. The company is headquartered in
ZSL Announces membership with ChannelLine Advisory
Council (CLAC)
Edison, NJ,
September 20th, 2006 – ZSL a global IT solution providers, today announced its
membership with ChannelLine Advisory Council (CLAC).
"In the
last eight months I've had discussions with more than 1,000 members of the
Canadian and
Although
initial discussions about a channel certification began with the advisory
council more than five years ago, it's only since CLAC expanded into the
Mr. Sudarshan Venkatraman, President and CEO, ZSL, said, "ZSL's future
growth is dependent upon success in the channel and we are committed to
building mutually profitable businesses with our channel partners. This new
program helps ZSL better serve the market with one scalable structure, he
added.
ZSL can
extend its successful proven “Get-it-together” partnership program to other
CLAC members, says Mr. Shiv Kumar, Executive Vice-President, ZSL.
"If
we're promoting the industry, we want to make sure we're promoting the right
part of the industry," Mr. Robert Cohen said. "We don't want to
promote everybody."
About ZSL
ZSL is an
ISO 9001 certified provider of Onshore, Offshore & Near shore technology
services. We offer substantial cost savings and enhanced performance associated
with a secure and effectively managed global development model. For over 10
years, ZSL has been partnering with a loyal following of clients seeking to
leverage our proven delivery methodology, as well as 24/7 access to the very
best technical resources and development tools available anywhere.
ZSL
leverages specialized knowledge in Custom Enterprise Application Development,
Enterprise Reporting, Enterprise Data Management & Administration,
Enterprise Application Integration, Q/A Testing, Mobile/Wireless/Web
Application Development.
ZSL’s
customer base includes small and medium sized companies across a broad range of
verticals, as well as respected leaders in Finance & Banking, Insurance,
Life Sciences, Telecommunications, Retail, and Manufacturing. For More
information please visit us at www.zslinc.com
About ChannelLine Advisory Council
Founded and managed by Integrated mar.com, the ChannelLine Advisory Council is a high-level, not-for-profit industry thought leadership group comprised of 700 leading IT channel people. This channel advocacy group is actively exploring threats and opportunities that are impacting the channel, facilitating open communication throughout the industry, and implementing solutions designed to help ensure the long-term viability of the IT Channel. Together we will shape the future of the IT Channel and help make the Channel more effective for you. For more information, please visit the Council blog.
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.40.59 |
|
|
1 |
Rs.80.74 |
|
Euro |
1 |
Rs.56.15 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
|
66 |
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 |
|