MIRA
INFORM REPORT
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Report Date : |
01.08.2008 |
IDENTIFICATION
DETAILS
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Name : |
SPANCO TELESYSTEMS AND SOLUTIONS LIMITED |
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Registered Office : |
B – 22, Krishna Bhuvan, B S Deoshi Marg, Deonar, Mumbai – 400 088,
Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
20.03.1984 |
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Com. Reg. No.: |
032422 |
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CIN No.: [Company
Identification No.] |
L65990MH1984PLC032422 |
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Legal Form : |
Public Limited liability company. Company’s shares are listed on stock
exchanges. |
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Line of Business : |
Subject is engaged in telecommunication & IT enabled services. |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 14000000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed company having satisfactory
track. Directors are reported as
experience and respectable businessmen.
Trade relations are reported as fair.
Business is active. Payments
are usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
B – 22, Krishna Bhuvan, B S Deoshi Marg, Deonar, Mumbai – 400 088,
Maharashtra, India |
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Tel. No.: |
91-22-67975566 / 67975566 |
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Fax No.: |
91-22-67975599 |
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E-Mail : |
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Website : |
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Branches : |
Gurgaon Tel No: +91 - 124 - 4612 500 Hyderabad Ahmedabad United Kingdom Australia/
New Zealand United States of
America |
DIRECTORS
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Name : |
Mr. Kapil Puri |
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Designation : |
Chairman and Managing Director |
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Date of Birth/Age : |
41 years |
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Qualification : |
Computer Engineer |
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Experience : |
20 years |
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Date of Appointment : |
21.01.2005 |
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Name : |
Mr. Rajesh Chhabria |
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Designation : |
Managing Director |
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Name : |
Mr. Deepak Bhagchandaney |
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Designation : |
Wholetime Director |
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Date of Birth/Age : |
37 Years |
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Qualification : |
Electronic and Telecommunications Engineering Masters degree in
Marketing |
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Experience : |
12 Years |
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Date of Appointment : |
15.05.2002 |
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Name : |
Mr. Adarsh Bagaria |
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Designation : |
Wholetime Director |
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Date of Birth/Age : |
33 Years |
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Qualification : |
Bachelor of Commerce |
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Experience : |
10 Years |
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Date of Appointment : |
21.01.2005 |
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Name : |
Mr. Ramesh Sharma |
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Designation : |
Director |
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Name : |
Mr. Rajkumar Bahri [Up to May 3, 2007] |
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Designation : |
Director |
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Name : |
Mr. Prakash Desai |
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Designation : |
Director |
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Name : |
Mr. Paresh Bambolkar |
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Designation : |
Director |
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Date of Ceasing: |
10.08.2006 |
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Name : |
Mr. Deepak Vasdev |
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Designation : |
Additional Director |
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Date of Appointment: |
28.04.2006 |
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Name : |
Major General G K Nischol AVSM, VSM, (Retd.) |
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Designation : |
Additional Director |
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Date of Appointment: |
28.04.2006 |
KEY EXECUTIVES
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Name : |
Mr. Amit Kumar Gupta |
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Designation : |
Company Secretary |
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Name : |
Mr. Sanjay Kumar Mutha |
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Designation : |
Company Secretary |
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Date of Appointment : |
15.05.2007 |
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Name : |
Mr. Ravi Bhatnagar |
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Designation : |
Regional Head, Telecom Div., Western and Southern Regions |
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Name : |
Mr. Hemant Sethi |
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Designation : |
Vice President |
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Name : |
Mr. P. P. Singhal |
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Designation : |
Regional Head |
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Name : |
Mr. Anil Wadhwa |
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Designation : |
Chief Operating Officer |
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Name : |
Mr. Rajesh Duggal |
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Designation : |
Senior Vice President |
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Name : |
Mr. Monojit Samadar |
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Designation : |
Vice President – IT Information Security |
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Name : |
Mr. S. C. Chugh |
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Designation : |
Vice President |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
AS ON 31.12.2008
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Category Code |
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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(A) |
Shareholding of
Promoter and Promoter Group |
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1 |
Indian |
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(a) |
Individuals / Hindu Undivided Family |
6286177 |
30.44 |
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Total (A) |
6286177 |
30.44 |
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(B) |
Public
Shareholding |
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1 |
Institutions |
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(a) |
Mutual Funds / UTI |
269481 |
1.30 |
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(b) |
Venture Capital Funds |
1094123 |
5.30 |
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© |
Foreign Institutional Investors |
2196739 |
10.64 |
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Sub total (B)
(1) |
3560343 |
17.24 |
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(B2) |
Non –
Institutions |
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Bodies Corporate |
4735405 |
22.93 |
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I |
Individuals –i Individual
shareholders holding nominal share capital upto Rs. 0.100 million |
1257978 |
6.09 |
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II |
ii. Individual shareholders holding nominal share capital in excess of
Rs. 0.100 million |
1600524 |
7.75 |
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(c ) |
Any Other Specify |
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(c-i) |
NRI |
96852 |
0.47 |
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(c-ii) |
OCB’s |
3081326 |
14.92 |
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(c-iii) |
Clearing Member |
31665 |
0.15 |
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Sub total (B)
(2) |
10803480 |
52.32 |
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Total Public Shareholding
(B) = (B) (1) + (B) (2) |
14363823 |
69.56 |
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GRAND TOTAL |
20650000 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Subject is engaged in telecommunication & IT enabled
services |
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Products : |
Item Code No. 85179000 NA |
Product
Description Multiplexer Call Centre |
GENERAL
INFORMATION
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No. of Employees : |
2000 |
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Bankers : |
v Bank of India v State Bank of
India v HSBC Limited v ABN Amro v Barclays Bank v Centurion Bank of
Punjab v Citi Bank v Deustche Bank v Exim Bank v HDFC Bank v ICICI Bank v IndusInd Bank v Karur Vysya Bank
v Standard
Chartered Bank v State Bank of
Hyderabad v State Bank of
Indore v Yes Bank |
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Facilities : |
Secured Loans |
As
on 31.03.2007 (Rs.
in millions) |
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SECURED LOANS Debenture From Banks: Term Loans: Rupee Loan Foreign Currency loan Working Capital
Loans: Rupee loan Foreign currency loan Others: From finance companies- vehicle loans Total UNSECURED LOAN Short Term Loan from Banks Short Term Loan from others Total |
250.000 219.188 227.994 744.243 33.911 12.415 1487.751 502.045 52.549 554.594 |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
RSM and Company Chartered Accountants |
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Address : |
Mumbai, Maharashtra, India |
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Contact Person: |
Mr. Vilas Y. Rane |
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Designation: |
Partner |
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Associates : |
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Subsidiaries: |
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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27000000 |
Equity Shares |
Rs. 10/-
each |
Rs. 270.000 Millions |
|
3000000 |
Redeemable Preference shares |
Rs. 10/-
each |
Rs. 30.000
Millions |
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Total |
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Rs.
300.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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20650000 |
Equity Shares |
Rs. 10/-
each |
Rs. 206.500 Millions |
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Convertible Equity Share Warrant |
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Rs. 60.587 Millions |
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Total |
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Rs. 267.087 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 |
267.087 |
158.246 |
169.868 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
2498.570 |
1229.757 |
439.058 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
2765.657 |
1388.002 |
608.927 |
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LOAN FUNDS |
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1] Secured Loans |
1487.751 |
542.144 |
404.002 |
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2] Unsecured Loans |
554.594 |
0.000 |
9.200 |
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TOTAL BORROWING |
2042.345 |
542.144 |
413.202 |
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DEFERRED TAX LIABILITIES |
13.285 |
0.630 |
15.774 |
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TOTAL |
4821.287 |
1930.776 |
1037.902 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
531.823 |
374.579 |
594.989 |
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Capital work-in-progress |
395.614 |
244.500 |
0.000 |
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INVESTMENT |
606.312 |
16.471 |
16.471 |
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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 |
88.547
|
90.628
|
6.889 |
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Sundry Debtors |
1894.223
|
958.817
|
360.365 |
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Cash & Bank Balances |
1134.273
|
70.946
|
107.001 |
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Other Current Assets |
0.000
|
0.000
|
0.000 |
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Loans & Advances |
1700.560
|
669.634
|
243.931 |
|
Total
Current Assets |
4817.603
|
1790.025
|
718.186 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
1426..090
|
433.702
|
278.067 |
|
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Provisions |
103.975
|
61.096
|
13.676 |
|
Total
Current Liabilities |
1530.065
|
494.798
|
291.743 |
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Net Current Assets |
3287.538
|
1295.226
|
426.443 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
4821.287 |
1930.776 |
1037.902 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
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Sales Turnover |
4265.912 |
2136.364 |
1043.783 |
|
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Other Income |
58.535 |
7.951 |
3.504 |
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Increase/ (decrease) in stock |
[15.821] |
83.711 |
(55.881) |
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Total Income |
4308.626 |
2228.026 |
991.406 |
|
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Profit/(Loss) Before Tax |
478.597 |
230.899 |
123.419 |
|
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Provision for Taxation |
151.888 |
31.320 |
26.154 |
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Profit/(Loss) After Tax |
326.709 |
199.579 |
97.265 |
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Earnings in Foreign Currency : |
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Export Earnings |
743.645 |
85.907 |
84.799 |
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Income from services |
414.278 |
418.083 |
247.080 |
|
Total Earnings |
1157.923 |
503.990 |
331.880 |
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Imports : |
|
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|
Purchase of Traded Goods |
978.980 |
184.235 |
164.803 |
|
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Capital Goods |
5.336 |
24.692 |
27.755 |
|
Total Imports |
984.316 |
208.927 |
192.558 |
|
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Expenditures : |
|
|
|
|
|
|
Purchase and Direct Expenses |
3031.466 |
993.340 |
|
|
|
Software Development Cost |
0.509 |
0.000 |
306.182 |
|
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Personnel Cost |
306.950 |
441.461 |
261.365 |
|
|
Operating and other expenses |
261.120 |
356.630 |
199.476 |
|
|
Internet and finance charges |
141.398 |
70.163 |
30.559 |
|
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Depreciation |
88.584 |
135.534 |
70.405 |
|
Total Expenditure |
3830.027 |
1997.128 |
867.987 |
|
SUMMARISED RESULTS
|
PARTICULARS |
|
|
31.03.2008 (Full Year) |
|
Sales Turnover |
|
|
5654.500 |
|
Other Income |
|
|
77.800 |
|
Total Income |
|
|
5732.300 |
|
Total Expenditure |
|
|
4813.800 |
|
Operating Profit |
|
|
918.500 |
|
Interest |
|
|
217.900 |
|
Gross Profit |
|
|
700.600 |
|
Depreciation |
|
|
100.300 |
|
Tax |
|
|
217.300 |
|
Reported PAT |
|
|
382.600 |
|
Dividend (%) |
|
|
200.000 |
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity
Ratio |
0.63 |
0.48 |
0.74 |
|
Long
Term Debt-Equity Ratio |
0.22 |
0.24 |
0.50 |
|
Current
Ratio |
1.75 |
1.98 |
1.77 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
6.22 |
3.29 |
2.11 |
|
Inventory |
47.64 |
43.82 |
29.95 |
|
Debtors |
2.99 |
3.24 |
4.17 |
|
Interest
Cover Ratio |
4.38 |
4.29 |
5.03 |
|
Operating
Profit Margin(%) |
16.61 |
20.44 |
21.48 |
|
Profit
Before Interest And Tax Margin(%) |
14.53 |
14.10 |
14.73 |
|
Cash
Profit Margin(%) |
9.74 |
15.69 |
16.05 |
|
Adjusted
Net Profit Margin(%) |
7.66 |
9.34 |
9.30 |
|
Return
On Capital Employed(%) |
18.57 |
20.40 |
19.74 |
|
Return
On Net Worth(%) |
15.96 |
19.99 |
21.70 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
An ISO 9000 company engaged in Telecommunication & IT
enabled services, which was incorporated under the name of Kadambari Leasing
which was later on changed to its present name i.e. Spanco Telesystems &
Solutions Ltd.
A fast growing IT Enabled Services company has its presence in domestic as well
as International Market and has its remote facilities in US & UK also. The
company has three main segments namely Telecommunication, Call
Centre-International & Call-Centre Domestic and is the front runner in call
centre industry.
During the last year the company has grown with a remarkable pace and made its
presence felt throughout the country by setting up call centres at Mumbai,
Gurgaon, Bangalore, Pune & Kolkata and has also increased its workforce
manifold from mere 120 employees in March, 2002 to nearly 1000 in March, 2003.
This increase in size has also resulted in topline & bottomline growth of
the company.
The company has commissioned a US based subsidiary in 2002-03.Spanco has
expanded its Call centres from one unit in August 2002 to five fully
operational Call Centres across India towards the close of 2002-03.
MANAGEMENT
DISCUSSION AND ANALYSIS
Introduction
After having successfully utilized the onset of the telecom wave
in India, the nation's businesses are now looking forward to greater
developments in its related fields. In addition to this, the industry has
turned even more lucrative with the government's eagerness to promote
e-governance and hence built an information super highway as the base
infrastructure for various e-governance applications to ride on it.
They all are witnessing the dawn of telecom and IT services as an industry,
which is now touching every common man's life. Today people at large are able
to see the impact of communication technologies on their daily life, and this
is just the beginning. The communication revolution ushered in by an ecosystem
of telecom operators, technology vendors and application service providers is
yet at a nascent stage which is expected to snowball into a huge market
potential.
The long-term potential of this industry is colossal. In the long run, a few
significant forces shall be driving it further than ever before. A large mass
of untapped potential customers are set to take off. Furthermore, India has
achieved the familiarity and experience with offshoring and this is
dramatically increasing the breadth of service lines. Significant
under-penetrated segments exist at both country and industry levels and there
is pressure on global majors to look at India's skill sets and expertise more
seriously than ever before.
Indian Telecom Industry, in terms of wireline & wireless growth has
demonstrated unprecedented number growth month on month, more so in the
wireless domain. Recent industry surveys depict that cellular subscribers grew
almost 73 per cent in 2006-07 to touch 157 Millions mark. In the last financial
year, India added more mobile lines per month than China. On an average, 5.5
Millions cellular lines were added every month, taking the mobile subscriber
base to 157 Millions from 91 Millions in 2005-06. In terms of new services,
Broadband connectivity and Value Added Services rule the roost. The share of
VAS in the carrier's revenues has increased from measly 3% a few years back to
as much as 20% in present context.
With telecom infrastructure at core, the system integration market for both
products and services are poised for huge growth across all the market segments
like Governments (SWANs, e-governance, etc.), Defense, PSUs &
Utilities.
Moreover, the IT software and services industry has been segmented into four
components - the IT services exports sector, ITES exports, product and
technology services and the domestic market. As per the study, IT services
exports will touch USD 28-30 Bn. by the year 2008, the ITES segment will
account for USD 21-24 Bn., while the products and technology services industry
will contribute around USD 8-10 Bn. to overall revenues. The domestic software
market will generate revenues of USD 13-15 Bn.
RFID is an appropriate example of software services based application. It is
predicted that the global sales of RFID equipment are growing steadily as
technical problems are slowly overcome. The global forecast RFID hardware,
middleware, and IT market was worth $1 Bn. in 2005. In 2007, this number will
grow to more than $3 Bn., and is projected to reach more than $10 Bn. by
2011.
The RFID market is anticipated to continue to grow rapidly in these and many
other market sectors and industries including the food and drug industry,
propelled by United States FDA mandates. By 2015, according to a report from
Research and Markets, the RFID market will bevalued at $26 Bn.
Segment-wise performance
Telecom Integration
During the year under review, Spanco's telecommunications segment recorded a
magnificent and giant revenue growth of 198.20 per cent revenue to reach Rs.
3,915.84 Millions as compared to Rs. 1,313.17 Millions in 2005-06.
BPO
Due to the demerger of Sparsh division (domestic call centre) in the year
2005-06, the BPO segment has recorded revenue of Rs. 350.07 Millions as
compared to last year of Rs. 823.20 Millions in 2005-06.
Telecom integration
The year 2006-07 was marked by drastic reduction in the cost of owning a
cellular handset and a connection. Introduction of lifetime validity schemes,
low cost of services, low roaming charges, low STD cost, and a slew of Value
Added Services led to a 72.7 per cent jump in subscribers, according to a
survey. Though there is a decline in the number of subscribers and revenue,
fixed telecom players are upping their ante, says the Voice & Data survey.
This year fixed line service providers are expected to launch new services like
IPTV and Metro Ethernet that will utilize the existing fixed line
infrastructure in the country. This spells nothing but great opportunity for
companies like Spanco.
To expand their subscriber base fixed line service providers will look at
promoting services like Wi-Fi and Wi-Max, besides fixed mobile convergence. The
first volume of Voice & Data's V&D100 for 2006-07 had focused on the
telecommunications equipment market, which grossed Rs. 771.70 Bn. Of the total,
carrier equipment contributed Rs. 427.63 Bn., phones brought in Rs. 234.52 Bn.
and the enterprise equipment brought in Rs. 109.55 Bn. This scenario again
spells loads of potential for infrastructure developers and service providers,
but this may also give rise to competition. In case some large telecom
companies decide to run their own infrastructure divisions, they would face
increased competition. They intend to play out this risk by acquiring as many
different clients as possible and staying ahead of others at all times. In
doing so, not only do they stay ahead, but also maintain their repute as
reliable, speedy and quality service providers in the industry.
BPO
The BPO industry in India has been growing 70 percent a year and is now worth
USD 1.6 Bn., employing 100,000 people. And as McKinsey analysts put it, BPO has
to grow only 27% till 2008 to deliver USD 17 Bn. In revenues and employment of
a million people. The unique partnership between the government and NASSCOM has
helped place India firmly on the global technology map. The fundamentals of the
Indian IT and ITES industry are strong and this partnership will continue to
realize the long-term goals of national growth.
Reports note that over the last 2 years, the industry landscape has
fundamentally changed in terms of customer purchasing behavior, entry of global
IT majors and increasing polarization of player performance. Companies are
getting more and more eager to get close to the customer and to get
interactive, as this is what is spelling success in the 21st century. This
opens up a highly lucrative avenue for the BPO segment all across the country.
Along with it, this also brings along the need to be able to adapt quickly to
every possible customer interaction need-to be able to transform the processes
to the client's needs. And that is something that Respondez has already proved
its mettle at.
Besides, off shoring opportunities for Indian ITES players exist across a wide
range of processes as well as across multiple verticals. In the coming years,
banking and insurance are likely to provide the maximum opportunity driven by
the high cost base and high extent of offshorable processes in these verticals.
Spanco has already curtailed this risk and tuned it to an advantage by having
established itself as a reliable and successful entity in these sectors.
RFID
With India moving on to catch up with the global markets, RFID is finding its
place. Countries like the US and UK have already asserted upon the use of RFID
technology through the FDA recommendations. The defense forces of the world,
including that of India are finding RFID to be of massive importance to the
management of its logistics. According to Industry experts, RFID is the
technology that is making the difference for the markets around the world.
Looking ahead, they see a clear shift towards software and services from
hardware as a percentage of expenditure on RFID applications. Integration and
application services spending would exceed spending on hardware. It is
predicted that there will be unavoidable movement towards adopting the entire
spectrum of AIDC and sensor based technologies and not just RFID. This places a
challenge and an achievable opportunity for Spanco, as it is already
established in this field and commands enough resources to address every need
in this sector.
India being placed right in the eye of the telecom storm gives it in an
advantage where the growth and implementation of RFID technology is concerned.
Spanco's extensive reach across all segments of the industry and governmental
organizations pitches it in a favorable position to pioneer the surge of the
RFID wave in India and merge in with the wave, around the world.
S-G KS
All the above-mentioned opportunities are invariably applicable to GKS with the
only difference of being a new business entrant in a relatively virgin location
- which in fact acts more as an advantage to the company, than as a risk.
Outlook
Telecom integration
The telecom sector is riding an ever surging wave in the Indian markets, thanks
to the liberalization of the Indian economy. The growth in the telecom sector,
especially in the cellular wireless services has been towering. Cellular
revenue is now double the $6.7 Bn. revenue from fixed phones, three times the
$4.2 Bn. from long distance-the main income-earner until recently for telecom.
Cellular pushed up the telecom services industry beyond Rs. 1000 Bn., to a
whopping $24 Bn. level, says the Voice&Data survey. Revenue from seven
telecom services - cellular, fixed line, International Long Distance (ILD),
National Long Distance (NLD), internet and broadband, VSAT and radio trunking
increased to Rs. 1076.81 Bn. during 2006-07 from Rs. 885.22 Bn. in 2005-06. A
growth of nearly a 100 million connections has taken place in the past one year
and much more is expected further. What is noteworthy here is the fact that
this growth has been restricted to the cities. The vast rural horizons of India
that are actually accountable for a larger populace still remain untouched.
This is what is about to change in the coming year. With the government
supporting the spread of telecom networks to connect rural India, upgrade its
infrastructure and growing the disposable incomes of the rural masses, the
industry can expect a plethora of opportunities. This shall also increase the
need for solution providers like Spanco. With the growth in information
technology, e-governance has become the need of the hour for better and
people-centric governance and state governments are waking to this
reality.
All these factors augur well for Spanco, a company that has amassed a vast
spectrum and depth of experience and credibility to its name and has thoroughly
established itself as one of the leading providers of cutting edge technology
products and business enhancing and management solutions.
BPO
The BPO sector is on an all time high in India, with more and more segments
warming up to the system. The Internet Retail Segment, Accounts Receivable
Management, Gaming Segment etc., provide new shores to the industry. In India
alone the domestic call center industry is growing at the rate of 60% a year
and revenues in 2008 are expected to exceed $ 17 Bn. Telecom, BFSI &
Insurance segment leaders in outsourcing voice and back office work are on the
look-out for large, multi-location Networked Centers. Besides the Growing
Indian markets, actively exploring JV opportunities with onshore US companies
who have synergies with their existing processes also adds to the development
of their BPO enterprise. Yet apart from that, building on current tech support
capabilities and evaluating acquisitions in Financial, Medical and LPO space
also unlocks plenty of financial potential. All in all, Spanco is well poised
in terms of experience, infrastructure, technology setup and service delivery
to unlock all the available potential and utilize it for a staggering financial
growth in the coming years.
RFID
With the global awakening to the capabilities and potential of RFID for
innovating and simplifying business and admistration, there is no dearth of
opportunities in this segment. Taking the defense sector into consideration,
Spanco is already working towards making SETUT' a default platform for various
material / inventory and MGO initiatives. The company has also focused on addressing
the Supply Chain logistics segment, which contributes to a huge market of RFID
technologies globally. Most notably, the Company is also looking forward to the
acquisition of a RFID services entity having presence in the international
markets. International Operations for access to Europe, USA, and Middleeast
markets are already underway in order to reach out towards a wider
market-share. Similarly, BOOT projects for aviation also imply a huge
opportunity given the growing number of airlines in the country in the present
times. Meanwhile, the government of India as well as the governing bodies in
various countries are rapidly opening up to the concepts of e-governance and
security applications in administration.
Fixed Assets
v Freehold Land
v Leasehold Improvements
v Building
v Guest House
v Plant and Machinery
v Computers
v Electrical Installation
v Furniture and Fixtures
v Office Equipments
v Motor Vehicles
v Goodwill
v Software
AS PER WEBSITE
An ISO 9000 company engaged in Telecommunication & IT enabled
services, which was incorporated under the name of Kadambari Leasing which was
later on changed to its present name i.e. subject
A fast growing IT Enabled Services company has its presence in domestic
as well as International Market and has its remote facilities in US & UK
also. The company has three main segments namely Telecommunication, Call
Centre-International & Call-Centre Domestic and is the front runner in call
centre industry.
During the last year the company has grown with a remarkable pace and
made its presence felt throughout the country by setting up call centres at
Mumbai, Gurgaon, Bangalore, Pune & Kolkata and has also increased its
workforce manifold from mere 120 employees in March, 2002 to nearly 1000 in
March, 2003. This increase in size has also resulted in topline &
bottom-line growth of the company.
The company has commissioned a US based subsidiary in 2002-03.Subject
ended its Call centres from one unit in August 2002 to five fully operational
Call Centres across India towards the close of 2002-03.
Website details attached
Subject. is one of
the leading telecom systems integration and IT services company in India. From
providing telecom integration services to multinationals, Public Sector Units
and India's vast defense sector, subject lived to extend its expertise into the
dynamic space of Business Process Outsourcing and RFID.
Awards and Recognitions
- KPMG has
certified subject as a ISO 9001-2000 company.
- Polycom (UK)
Ltd. recognizes subject as the Best Channel Partner for Service Providers
market in India for the year 2004.
Company
Over the ages, it is information, the access
to it and the ability to process it that have dictated change in their world.
Also the means to delivering information have played an equally pivotal role.
Telecommunication for one has evolved into an indispensable information
delivery tool. From a mere people communication tool, telecom today helps
businesses succeed by helping exchange info swiftly and adequately.
And in this Telecom Technology space subject stands tall as one of the most
specialized providers of cutting edge business enhancing solutions and
services.
Established in 1995 by Mr. Kapil Puri and Mr. Rajesh Chhabria, today subject is
one of the leading networking and systems integration Solutions Company in
India. From providing telecom integration services to multinational companies,
public sector units and India's vast Defense sector, subject has also extended
its expertise into the dynamic space of Call Centre and Business Process
Outsourcing also.
3300 employees strong, subject is spread over nine locations - Mumbai,
Pune, Ahmedabad, Gurgaon, Kolkata, Bangalore, Hyderabad, Lucknow and Guwahati.
Internationally, subject has a 100% subsidiary in New Jersey, USA.
The company is accredited with the ISO 9001 - 2000 quality certification for
Telecom Integration Services and also listed in the Bombay Stock Exchange.
Management
Mr. Kapil Puri - Chairman & Managing Director
A graduate in Computer Engineering from Mumbai University, with over eighteen
years of experience in managing business enterprise. The core promoter and
founder of Spanco, he is the visionary in true sense and responsible for
sculpting a unique business model for Spanco and contributing to the sustained
growth over years.
Mr. Ramesh Sharma – Director
A post graduate, M.Com from Mumbai University, and is a fellow member of
Institute of Chartered Accountant, having an experience of over 20 years in the
field of taxation, finance and banking,. His rich experience in the aforesaid
field are of great value for the company, and his administrative skills have
immensely helped the company in its growth.
Mr. Deepak Bhagchandaney - Whole-Time Director
An Engineering graduate in Electronics and telecommunications, holder of
Masters degree in Marketing from Mumbai University, with a rich experience of
over 14 years in the field of Networking and Telecommunications, wherein he has
worked with esteemed organizations like Tata Telecom, Motorola and Alcatel. A
market visionary, an inbuilt leader who is truly the jewel in the crown of
spanco.
Mr. Adarsh Bagaria - Whole-Time Director
A Commerce graduate from Mumbai University, with more than ten years experience
in various commercial and marketing functions within the ITES Industry. His
keen acumen and eye for detailing has served as a powerful guiding force for
many within the organization to tide over hindrances, if any.
Mr. Prakash Desai – Director
A Commerce graduate, holder of Diploma in Marketing Management, with a rich
experience of 27 years (10 years in selling and sales management, 17 years in
training and development). Having worked with brands like Kores India &
Modi Xerox, he was named the "Best Training Manager" at Modi Xerox.
With GTL as his last assignment, Mr. Desai has trained 6000 people across 30
leading organizations like BPL, ICICI, Cadbury, Technova Imaging to name a few.
Business Partners and Alliances
Subject’s alliances with leading global companies like Alcatel, Nortel,
Apropos, DMC Stratex Networks assist the company in its bids for large Indian
contracts with oil companies, Indian railways, the Indian defense
establishments and other projects. As a result, the company has acquired
visible and brand-enhancing clients like ONGC, Indian Railways and BSNL, among
others over the years.
SPANCO'S
PRINCIPAL TECHNOLOGY SUPPLIERS HAVE BEEN DERIVED FROM THE FOLLOWING LEADING
COMPANIES:
- Nortel Networks: Multi
service platforms, voice switches, layer 2 and 3 switches
- Polycom:
Videoconferencing and audio conferencing solutions
- Alcatel: For TDM
multiplexing and digital cross connect solutions
- Verint Systems: Quality
monitoring and feedback systems based on actionable intelligence
- Concerto and Interactive Intelligence: Customer
interaction management suite of products
- DMC Stratex and Aperto:
Point-to-point and point-to-multipoint radio solutions in various
frequency bands
- Acterna: Text and
measurement solutions
- Amp, Molex and other Indian
manufacturers: For copper and fiber media cables
Nortel Networks
- Established more than a century ago,
Nortel Networks has a tradition of innovation and global leadership in
shaping the evolution of communications.
- Nortel Networks is they're delivering
networking and communication services and infrastructure to service
providers and enterprises in more than 150 countries.
- Industry leader. Provides high
performance network infrastructure, contact centre and other enterprise
solutions to carriers and enterprise customers in more than 150 countries.
- Delivers scalable, flexible and
resilient solutions with a product portfolio which spans packet, optical,
wireless and voice technologies, thereby delivering numerous new services
and applications, as well as seamless and ubiquitous broadband
connectivity
- Commanded the largest US market share
in contact centre solutions in 2002-03.
Concerto
- Concerto is a proven provider of
customer interaction management (CIM) solutions to more than 1,200
businesses worldwide, which enable companies to more effectively manage
interactions with customers via voice, email, the Web and fax.
- Founded in 1981 as a dialer provider,
the company has evolved significantly, yet remains exclusively focused on
the contact center industry.
- Concerto enable its diverse customer
base across many industries including healthcare, financial services,
travel, telecommunications and utilities to provide superior customer
service.
- Leader in the outbound predictive
dialing solutions.
- Provides professional services,
software services and managed services.
- Possesses large number of patents in
predictive dialing solutions.
- Offers state of the art solutions built
on the latest predictive dialing technology.
Polycom
- Founded in 1990, Polycom is the only
company today delivering end-to-end rich media collaborative applications
for voice, video, data and the web from desktop and mobile personal
systems to room systems to the network core, enabling people to connect
anytime, anyplace and with any device in a virtual experience as natural
as being there.
- In addition to being the worldwide
leader in market share for best in class group and personal video systems,
video and voice collaboration infrastructures and conference phones, Polycom
also has the only solution for delivering Unified Collaborative
Communications - the convergence of voice, video, data and web - known as
The Polycom Office.
- The combination of strategic
acquisitions and continual product innovation positions Polycom for
continuing its market and technology leadership in voice, video, web and
data collaboration.
Headquartered in Pleasanton, Calif., the company employs more than 1,200 people worldwide and has regional offices throughout the U.S., Europe, Latin America and Asia. - Polycom's Industry Leadership
4Creator of over 300 patents in collaborative communications
4Market leader in video conferencing systems - ViewStation®, iPowerTM and ViaVideoTM
4Market leader in voice conferencing endpoints - SoundStation®
4Market leader in video management systems - Global Management SystemTM
4Market leader in video network infrastructure systems - MGC-100TM
4Market leader in voice conferencing - OCI, Redivoice
Verint
- Verint Systems Inc. is a leading
provider of analytic software solutions for communications interception,
digital video security and surveillance, and enterprise business
intelligence.
- Verint solutions transform raw voice,
video, and data into actionable intelligence and mission-critical analysis
to enhance security and increase enterprise profitability.
- Verint actionable intelligence
solutions empower more than 1,000 organizations in 50 countries.
- Verint's innovative product
architecture enables them to deliver solutions that scale to the size and
growth of their customers' organizations. Built on open systems using
industry standards, their solutions are designed to integrated seamlessly
with existing IT infrastructures, leveraging their customers' investments
and reducing total cost of ownership.
- An industry leader in the development,
manufacture and marketing of microwave radio solutions for point-to-point applications
in licensed frequency bands, enabling the development of complex
communications networks worldwide.
- Achieved international recognition for
quality, innovation and technical superiority in delivering wireless
transmission systems for the transport of data, voice and video
communication systems.
- Enjoying 18 years of experience in
specialized wireless solutions. Built a global customer base spanning a
wide variety of applications and geographic locations. Deployed more than
200,000 systems in over 95 countries. One of the largest installed bases
in the industry.
- Has more than 200 active accounts,
including Mobile Cellular service providers, public and private fixed
network operators, including (among others): Cingular, Sprint (United
States), Telcel (Mexico), Embratel (Brazil), France Telecom/Orange
(Europe), Firstmark (France), Centertel (Poland), Panafon (Greece), MTN
(Africa), Orascom (MEA), China Unicom, and China Mobile (China).
Alcatel
- Designs, develops and builds innovative
and competitive communications network.
- Provides end-to-end communications
solutions, enabling carriers, service providers and enterprises to deliver
any type of content (voice, data and multimedia) to any kind of customer
anywhere in the world.
- Provides best-of-breed bandwidth
management solutions and primary data multiplexing products.
- Leveraging its long-term leadership in
telecommunications network equipment as well as its expertise in
applications and network services, Alcatel enables its customers to focus
on optimizing their service offerings and revenue streams
KEY MARKET
Telecom Carriers
- BSNL
- VSNL
- Tata
Teleservice
Defense
- Ministry of
Defense
- Central/Northern/Western/Southern
Command
- Military
College of Training and Education
PSU/Utilities
- Railways
- ONGC
- Airports
Authority of India
- NTPC
- PNB
Enterprise Networks and Call centers
- Intelenet
Global Services
- TCS
- MTNL
- Times Of
India
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. 42.49 |
|
UK Pound |
1 |
Rs. 84.21 |
|
Euro |
1 |
Rs. 66.33 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
60 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this report.
The assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|