MIRA
INFORM REPORT
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Report Date : |
16.12.2008 |
IDENTIFICATION
DETAILS
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Name : |
CALIFORNIA SOFTWARE COMPANY LIMITED |
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Registered Office : |
Robert V Chandran Tower, 7th Floor, #149, Tambaram Velacherry
Main Road, Pallikaranai, Chennai – 600100, Tamilnadu. |
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Country : |
India |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
06.02.1992 |
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Com. Reg. No.: |
22135 |
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CIN No.: [Company
Identification No.] |
L72300TN1992PLC022135 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHEC00877C |
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Legal Form : |
Public limited liability company. Company’s Shares are listed on the
Stock Exchange. |
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Line of Business : |
Providing Software 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 6000000 |
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Status : |
Very 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 fine track.
Available information indicates high financial responsibility of the company.
Trade relations are fair. General financial position is good. Payments are
reported as usually correct and as per commitments. The company can be considered good for normal business dealings. |
LOCATIONS
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Registered Office : |
Robert V Chandran Tower, B3, # 149, Pallikaranai, Velachery Tambaram Main Road, Chennai – 600 100, India. |
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Tel. No.: |
91- 44- 4282 9000 |
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Fax No.: |
91 -44- 4282 9012 |
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Corporate Office 1: |
1205, D Block, 12th Floor, Tidel Park, Taramani, Chennai
600113, Tamilnadu, India |
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Tel. No.: |
91-44-22543905 / 22541080 / 22541464 / 2254
0419 / 2007 |
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Fax No.: |
91-44-22542902 |
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E-Mail : |
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Website : |
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Corporate Office 2: |
5th Floor, Elnet Software City, TS 140, CRT Road, Taramani, Chennai - 600
113, Tamilnadu, India |
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Tel. No.: |
91- 44 - 2254 1464/1080 |
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Fax No.: |
91-44-22542902 |
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E-Mail : |
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Corporate Office 3: |
196, Bannerghatta Road, Opposite HSBC, Arekere Circle, Bangalore - 560 076, INDIA. |
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Tel. No.: |
91- 80- 2648 5111 |
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Fax No.: |
91- 80- 2648 5108 |
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Corporate Office 4: |
64-C1, Hootagalli Industrial Area, Kasaba Hobli, Mysore - 570 018, INDIA. |
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Tel. No.: |
91- 821- 2404 900 |
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Fax No.: |
91- 821- 4287 774 |
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Corporate Office 5: |
3rd Floor, Cunningham Classic, 22, Cunningham Road, Bangalore - 560 052, INDIA. |
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Tel. No.: |
91- 80- 4114 8801 / 04 |
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Fax No.: |
91- 80- 4114 8805 |
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Overseas Office : |
USA
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DIRECTORS
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Name : |
Mr. Robert V. Chandran |
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Designation : |
Chairman |
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Name : |
Mr. Clude Michael Bandy |
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Designation : |
Chairman |
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Name : |
Mr. S. (Sam) Santhosh |
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Designation : |
Managing Director and Chief Executive Officer |
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Name : |
Mr. Fuminobhu Oda |
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Designation : |
Non Executive Director |
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Name : |
Mr. Dan George Peterson |
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Designation : |
Non Executive Director |
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Name : |
Dr. T. T. Narendran |
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Designation : |
Independent Director |
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Name : |
Dr. P. J. George |
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Designation : |
Independent Director |
KEY EXECUTIVES
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Name : |
Mr. Sudhir Anand |
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Designation : |
Company Secretary & Compliance Officer |
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Name : |
Mr. V. S. Navin Shushant |
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Designation : |
Company Secretary |
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Name : |
Dr. J.K. Nair |
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Designation : |
Executive Vice
President & COO |
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Name : |
Mr. K. Narasimha Nayak |
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Designation : |
Chief Financial
Officer |
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Name : |
Mr. Bob Byrnes |
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Designation : |
Senior Vice
President, Sales |
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Name : |
Mr. Dan George Peterson |
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Designation : |
President &
CEO Informed Decisions Corporation |
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Name : |
Mr. Yoto Haramoto |
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Designation : |
President - CODEX
Company Limited |
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Name : |
Mr. Vedante Srihari |
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Designation : |
Managing
Director - Inatech Solutions |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
AS ON 31st March 2008
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoter
group: |
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Promoter
Director & Relatives |
565796 |
4.59 |
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Foreign
Bodies corporate |
5898963 |
47.707 |
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Promoter
group subtotal |
6464759 |
52.283 |
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Public
shareholding |
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Financial
Institutions-Indian |
300 |
0.002 |
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Foreign
Institutional investors |
297607 |
2.407 |
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Bodies
Corporate |
872891 |
7.059 |
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Individual
shareholders-holding nominal capital upto Rs 0.100 Million each |
1375119 |
11.121 |
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Individual
shareholders-holding nominal capital in excess of Rs 0.100 Million each |
3314463 |
26.806 |
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Others |
3314463 |
26.806 |
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Public shareholding sub-total |
5900247 |
47.717 |
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Total |
12365006 |
100.00 |
AS ON 30.09.2008
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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(2) Foreign |
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(b) Bodies Corporate |
8166208 |
66.043 |
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(B) Public Shareholding 3 |
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(1) Institutions |
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(a) Mutual Funds / UTI |
300 |
0.002 |
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(f) Foreign Institutional |
3230 |
0.026 |
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(2) Non – Institutions |
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(a) Bodies Corporate |
335503 |
2.713 |
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(b) Individuals – |
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i.Individual shareholders holding nominal share capital up to Rs.0.100
million |
1109748 |
8.976 |
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ii. Individual shareholders holding nominal share capital excess of
Rs.0.100 million |
2736461 |
22.130 |
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© Any Other (specify) |
13556 |
0.110 |
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Grand Total |
12365006 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Providing Software Services |
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Products : |
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GENERAL
INFORMATION
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Bankers : |
Canara Bank |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Tomy & Francis Chartered Accountants |
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Associates/Subsidiaries : |
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Companies having
Substantial Interest : |
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CAPITAL STRUCTURE
AS ON 31.03.2008
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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15000000 |
Equity Shares |
Rs. 10/- each |
Rs. 150.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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12365006 |
Equity Shares |
Rs. 10/- each |
Rs.123.650
Millions |
Note:
The paid up share capital of Rs.123.650
millions includes worth Rs. 0.724 millions which were issued by the company for
consideration other than cash
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
123.650 |
90.464 |
49.211 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
914.587 |
596.822 |
297.900 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1038.237 |
687.286 |
347.111 |
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LOAN FUNDS |
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1] Secured Loans |
694.772 |
65.430 |
30.491 |
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2] Unsecured Loans |
37.576 |
83.250 |
0.000 |
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TOTAL BORROWING |
732.348 |
148.680 |
30.491 |
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DEFERRED TAX LIABILITIES |
12.970 |
2.500 |
3.721 |
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Minority Interest |
49.939 |
0.000 |
0.000 |
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TOTAL |
1833.494 |
838.466 |
381.323 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
399.437 |
77.566 |
68.679 |
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Capital work-in-progress |
666.020 |
23.669 |
0.000 |
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INVESTMENT |
34.716 |
333.518 |
102.584 |
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DEFERREX TAX ASSETS |
5.593 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
4.779
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0.000 |
0.000 |
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Sundry Debtors |
562.306
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290.764 |
173.042 |
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Cash & Bank Balances |
564.869
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52.998 |
30.407 |
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Other Current Assets |
43.659 |
40.489 |
21.532 |
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Loans & Advances |
220.481
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57.802 |
31.485 |
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Total
Current Assets |
1396.094
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442.053 |
256.466 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
682.076
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26.597 |
32.375 |
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Provisions |
37.681
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15.980 |
15.410 |
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Total
Current Liabilities |
719.757
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42.577 |
47.785 |
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Net Current Assets |
676.337
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399.476 |
208.681 |
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MISCELLANEOUS EXPENSES |
51.391 |
4.237 |
1.379 |
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TOTAL |
1833.494 |
838.466 |
381.323 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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Sales Turnover |
2345.704 |
469.169 |
375.827 |
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Other Income |
42.548 |
5.522 |
1.412 |
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Total Income |
2388.252 |
474.691 |
377.239 |
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Profit/(Loss) Before Tax |
212.035 |
60.160 |
67.732 |
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Provision for Taxation |
57.331 |
0.651 |
1.445 |
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Profit/(Loss) After Tax |
154.704 |
59.509 |
66.287 |
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Earnings in Foreign Currency |
NA |
461.502 |
356.286 |
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Expenditures : |
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Purchases &
Related Expenses |
859.547 |
9.764 |
11.872 |
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Employee Costs |
826.085 |
307.379 |
212.025 |
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General,
Administrative & Other Expenses |
358.211 |
92.991 |
68.064 |
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Selling Expenses |
67.992 |
8.272 |
3.777 |
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Finance Charges |
14.491 |
6.493 |
2.648 |
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Depreciation |
25.522 |
12.531 |
10.960 |
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Amortisation /
Write offs |
0.000 |
0.771 |
0.162 |
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Increase/(Decrease) in Finished Goods |
24.369 |
[23.669] |
0.000 |
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Total Expenditure |
2176.217 |
414.532 |
309.508 |
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QUARTERLY RESULTS
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PARTICULARS |
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30.06.2008 |
30.09.2008 |
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Type |
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1st
Quarter |
2nd
Quarter |
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Sales Turnover |
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160.800 |
197.400 |
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Other Income |
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00.900 |
47.000 |
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Total Income |
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161.700 |
244.400 |
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Gross Profit |
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13.800 |
38.900 |
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Depreciation |
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06.300 |
30.900 |
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Tax |
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01.200 |
01.500 |
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Reported PAT |
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04.600 |
02.600 |
KEY RATIOS
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PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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Debt-Equity Ratio |
0.45 |
0.17 |
0.07 |
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Long Term Debt-Equity Ratio |
0.40 |
0.12 |
0.05 |
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Current Ratio |
2.97 |
4.79 |
4.43 |
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TURNOVER RATIOS |
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Fixed Assets |
3.47 |
2.88 |
2.67 |
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Inventory |
59.92 |
39.59 |
0.00 |
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Debtors |
2.20 |
2.02 |
2.70 |
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Interest Cover Ratio |
18.02 |
10.26 |
27.08 |
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Operating Profit Margin(%) |
17.76 |
16.88 |
21.66 |
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Profit Before Interest And Tax
Margin(%) |
15.73 |
14.22 |
18.73 |
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Cash Profit Margin(%) |
12.24 |
15.35 |
20.57 |
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Adjusted Net Profit Margin(%) |
10.21 |
12.68 |
17.64 |
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Return On Capital Employed(%) |
8.78 |
11.04 |
21.03 |
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Return On Net Worth(%) |
8.27 |
11.50 |
21.05 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
California Software Company (CSCL) was incorporated in
Feb.'92 to develop and export software. The company promoted by S Santhosh, T R
Sahasranamam and their associates is a joint venture with equity participation
from Chemoil Corporation, US (49% stake through its subsidiary Kemoil,
Hongkong), a Forbes 400 company and a bunkering major. Chemoil assists the
company in marketing, equipment sourcing, etc. CSCL has set up a 100%
export-oriented software technology park at Madras, which commenced commercial
operations in Oct.'92. It comes under the Software Technology Park, Bangalore,
which monitors its activities.
CSCL commenced operations by managing the MIS services for the Chemoil Group of
companies, spread over San Francisco, Los Angeles, Houston, New Orleans,
Panama, Singapore, Venezuela, Philippines and Denmark. It then expanded its
clientele to include Technical Solutions, Act International, International
Micro Computer Software, Delta Airlines, etc. In 1994, it took a wholly
dedicated 64 KB satellite link between Chennai and San Francisco, to undertake
more projects from clients in the US. CSCL has also set up its own world wide
web server on the internet to market and distribute software at a low cost.
In Feb.'96, it came out with a public issue to part-finance the expansion of
facilities at Madras; set up new facilities at Bangalore and add new facilities
to its proposed 100% subsidiary -- CSWL, US. It has also set up a non-trading
office in U.K to cover the European market. During 1999-2000, the company has
setup a new software development centre at Chennai.
The company had signed an MOU during September 2004,for acquiring upto 51%
equity of the well known system integrator, Team Frontline Private
Limited
The company has signed an MOU during December 2004,with Web Spectrum Private
Limited to acquire the entire 100% equity of Web Spectrum Private Limited which
is a Bangalore based unlisted company.
The company has opened a branch office in the United Arab Emirates during
February 2005.The new office will address the needs of the Middle East and
Africa markets.
MANAGEMENT DISCUSSION
AND ANALYSIS
Overview
In addition to the historical and financial information contained herein,
the following discussion contains statements, which may be termed as
forward-looking statements, within the meaning of applicable laws and
regulations. Actual results may differ materially from such expectations or
projections. Several factors and risks could make significant difference to the
company's ongoing operations. There are several factors that may affect the
results of operations, financial condition and cash flow of the Company such
as:
* General economic conditions in India and large global markets,
particularly with the down turn in the United States. More emphasis and shift
on European Markets Changes in the demand for IT products and services.
* Fluctuations in the rate of exchange between the Rupee and major
foreign currencies, especially U.S. dollar, Euro and British Pounds.
* Pricing pressures for both the product and services businesses, due to
continued competition from other IT product and service companies.
* Changes in interest rates; and changes in networking capital including
the funding of the working capital requirements.
* Capital expenditure and related financing, including for product
development.
* Competition in hiring and retaining skilled IT personnel.
* Gain or loss of significant customers.
* New strategic partnerships or mergers/acquisitions and
integrationrelated risks
Industry Structure and
Developments
An increasingly competitive market environment is emerging because of various
factors, economic conditions and changes in the global scenario. The present
day customer is basically looking at lower price and accelerated delivery
model. Hence they need to focus on their core competency to help improve
productivity, reduce business risks and manage operations more
effectively.
The ability to design, develop, implement and maintain advanced technology
platforms and solutions to address business and customer needs has become a
competitive advantage and a priority for corporates. The need for specialists
with experience in leveraging technology to help drive business strategy is
always on the increase.
The factors like ever increasing need for high skilled technology professionals
in the market and the reluctance of the corporates to expand their internal IT
Departments have increased corporates' reliance on out sourced technology
service providers. This is a major reason which will drive the future growth
for such services.
According to the Analysts, despite a slight slow down of the global economy,
outsourcing services will grow at 9% as compared to 12% earlier.
Increase in trend towards OPD
Most of the global corporations are increasingly shifting to off-shore product
development through service providers to meet their need for high quality, cost
competitive technology solutions. By virtue of this, OPD service providers have
become the main stream in the industry. The major advantages from OPD is in
terms of lower total cost of ownership of IT infrastructure, lower labourcost,
improved quality and innovation and faster delivery of technology solutions.
Some analyst firms forecast that the outsourcing expenditure on services will
increase from US $ 226 Billion in 2006 to an estimated U S $ 328 Billion by
2011.
India is the best destination for OPD services. As per NASCOM, IT services
export from India is expected to cross US $ 23 billion in fiscal 2008.
Apart from this, there are several other key factors like high quality
delivery, significant cost benefits, abundant skilled resources which
contribute to make India the best destination for OPD.
Calsoft Delivery
Model
Their delivery model helps us to produce where it is cost effective and sell
services where it is more profitable. Their delivery model helps us to derive
maximum benefit from:
* Access to their large pool of highly skilled technology professionals
* Cost competitiveness across geographic regions
* A knowledge management system that enables us to re-use solutions where
appropriate.
* Their model ensures that the Project Managers remain in control of
execution throughout the life cycle of the project, regardless of the
location.
For the past 17 years, they have successesfully executed projects from their
development centre based at Chennai, India. They also have development centers
in Bangalore and Mysore, India. Recently they have moved to their own
development centre in Chennai which has a capacity to accommodate more than
1500 software professionals. This will help us to service the future projects
as well as any rampup in head counts. This is their largest development
centre.
Their quality control process is in place to detect defects and ensure that
predetermined project parameters are adhered to. The Project managers are
responsible for tracking Metrics including actual efforts spent vs estimates
and project budgeting. For their communication needs, they have reliable service
providers. End-to-End Solutions They provide comprehensive end-to-end solutions
that leverage technology. Their service offerings include custom application
development, maintenance, technology consulting and other solutions. These
offerings are provided to clients across multiple industry verticals. They also
leverage their expertise to create customized solutions for their clients. They
strictly adhere to their SEI-CMMi Level V internal quality and Product
Management Process. They endeavor to provide value added services to their
clients
Outlook and Strategy for Growth
Against the backdrop of this scenario, Calsoft has embarked upon an
expansion program, which is a judicious mix of organic and inorganic growth.
Through organic growth, they plan to consolidate their current strengths while
they aim to build upon key solutions and capability, and extend their market
reach through synergistic acquisitions.
Pursue Alliances and Strategic
Acquisitions
They believe that growth through Organic mode has got certain
limitations. They also firmly believe that if their growth ambitions are to be
fulfilled, this can be fuelled only through inorganic acquisitions and
developing alliances to complement their core competencies. Their alliance
strategy is targeted at partnering with leading technology providers which
allows us to take advantage of emerging technologies in a mutually beneficial
and cost effective manner.
They also intend to selectively pursue acquisitions that augment their existing
skill sets, industry expertise, client base and geographical presence. Last
year they acquired two key corporates i.e M/s Aspire Communications, Mysore and
International Innovations USA. Both these acquisitions were akin to their
interests.
Discussion on
Financial Performance and Condition for year ended March 31, 2008
Overview
The financial performance and condition of the company is discussed herein
under two parts:
i-Consolidated Financial performance and condition for the financial year
(FY) ended 31 st March 2008 in Para 5.2-which includes the performance of
California Software Cc Ltd (Calsoft) with all its subsidiaries
ii-Standalone Financial performance and condition for the Financial year
ended 31st March 2008 which reviews only the performance of California Software
Cc Ltd and excludes all its subsidiaries-in Para 5.3.
The Consolidated financial statements and discussion on these bring out more
comprehensively, the company's overall performance.
The standalone and consolidated financial statements of Calsoft for FY ended
31st March 2008 are prepared in accordance with the Indian Companies Act, 1956,
guidelines issued by the Securities and Exchange Board of India(SEBI) and the
Generally Accepted Accounting Principles (GAAP) in India. Previous year figures
for FY ended 31st March 2007 have been re-grouped or re-classified in the
audited statements presented to conform to currentyear classifications
Consolidated financial performance and
condition
The Management Discussion and Analysis given below relates to the consolidated
financial statements of California Software Company Ltd and includes the
results of its subsidiaries. The discussion should be read in conjunction with
the audited Consolidated financial statements and Notes to the Consolidated
Accounts of California Software Company Ltd for the year ended March 31,
2008.
The consolidated results for FY ended 31st March 2008 are strictly not
comparable with those of previous FY ended 31st March 2007 in view of
* The results of acquisitions/new subsidiaries in FY 2008 100% interest
in (i) Inatech Info Solutions Pvt Ltd, India (Inatech) and its wholly owned
subsidiary Inatech Solutions Ltd UK as against 51% in 2007.(ii) International
innovations Inc, USA (from Feb 08)
* Majority equity interest in Aspire Soft Corporation, USA, Aspire
Communications Private Limited, India (Aspire) and its wholly owned subsidiary
Aspire Peripherals Pvt Ltd, India (from July 07)
* Results of the acquisitions made in previous FY 2007 included only for a
part of the previous year while they are included for the full twelve months
during this year-(a) Waldron Ltd, HongKong and its subsidiary Codex Cc Ltd,
Japan (Codex)(b) Inatech Info Solutions Pvt Ltd, India (Inatech) and
itswhollyowned subsidiary Inatech Solutions Ltd UK
Operating
Expenses
(i)-Purchase and related
expenses
Purchase and related expenses which consist of all direct expenses related to
sales revenues other than employee costs, constituted approximately 36.4% and
39.46% of total revenues for the years ended March 31, 2008 and 2007
respectively. Certain expenses like Smart Pay Bank charges have been
reclassified under Purchase and related expenses during the previous financial
yearto conform to current year classification.
ii-Employee costs
Employee costs consist of cost of salaries paid to employees in India and
include overseas staff expenses net of capitalized values for software product
development. During the year, the employee costs were 35% of total revenues as
against 33.6% of the previous year mainly due to increase in the number and
cost of onsite manpower and general increase in employee costs.
iii-General, administrative and
otherexpenses
They incurred general and administration expenses amounting to 15.15% of their
total revenues, compared to 14.3% during the previous year. Provision for
doubtful debts increased by Rs 0.44 Crores in comparison to previous year due
to change in accounting estimates applied in relation to earlier years.
Expenses on postage and telephones, traveling expenses, rent rates and taxes increased due to increased business activity.
iv- Selling Expenses
Selling expenses as a % of total revenues was 2.88% for the current year,
compared to 2.48% during the previous year.
v-Interest and finance charges:
Interest and finance charges decreased compared to last yeardue to lesser
average borrowings and lower borrowing costs.
Company
Profile
Subject is a
global solutions company that offers product
engineering services and product based business solutions in carefully chosen domains. Their approach
is to deliver total solutions to customers leveraging their deep industry,
technology and product expertise, along with their strategic global
partnerships and alliances.
Committed to
delivering enduring stakeholder value, Calsoft collaborates with its customers
and partners to facilitate them to become high performance businesses. They are
specialists in value innovation and are focused on delivering services and
solutions that enable organizations to improve effectiveness and reduce costs.
Product Engineering Services
Calsoft offers concept-to-market RandD and engineering services to its
customers across verticals. Their expertise areas include
• Hardware and System Design
• Networking and Communication
• BIOS and Firmware
• Device Drivers
• Embedded and Mobile
In each of these
segments, they provide product conceptualization and design, development,
testing and automation and L3 product support services. In addition, their
services include product lifecycle management, hardware design, embedded
services, L2 support and offshore RandD Lab/Engineering Development Center.
Over the years, they have developed over 80 products for their customers.
Business Solutions
At Calsoft, they
leverage the power of strategic partnerships to deliver business solutions.
Their offerings to enterprise customers are built around a set of home grown
integrated suite of products as well as third party products. Their
personalized approach ensures that their customers get the best value for their
needs. Their service portfolio includes enterprise application solutions
(consulting, implementation, integration, maintenance and support), application
management, hosted application and infrastructure management services. The
current focus areas include
• Commodities (oil
supply chain management, risk management, procurement)
• Construction
• Health Care
• Higher Education (cashiering, bill presentment, collection)
• Hospitality
Results
of operations:
Consolidated Results
During the year, the Company on a consolidated basis with all its subsidiaries earned total revenue of Rs.2363.800 millions as against Rs. 1689.400 millions earned during the previous year - an increase of Rs.674.400 millions (nearly 40%). The operating profit during the year is Rs.252.000 millions as against Rs.171.200 millions of the previous year. After taking into account the tax provisions and adjustments for minority interest, prior period adjustments and extraordinary items if any, the profit after tax for the year is Rs.154.700 millions as against Rs.79.600 millions of the previous year - an increase of Rs.75.000 millions (nearly 94%). The results of operations of recently acquired subsidiaries have been consolidated into the accounts from the effective date of acquisition on which the subsidiary relationship came into existence. The results of a sustained growth strategy through strategic acquisitions and realignment have started yielding results.
Standalone
Results
During the year, the Company, on a standalone basis, earned total revenue of Rs. 690.800 millions as against Rs.501.900 millions earned during the previous year- an increase of Rs.188.900 millions (nearly 38 %). The operating profit during the year is Rs.126.000 millions as against Rs.79.100 millions of the previous year - increased by 59%. After taking into account the tax provisions and adjustments, the profit after tax for the year was Rs.72.400 millions as against Rs. 59.500 millions of the previous year - an increase of Rs.12.900 millions (nearly 22%). The higher turnover and improved margins has resulted in increase in the profits.
Business
During the year under report, the Company performed very well and
registered total revenues of Rs. 2363.800 millions compared to Rs. 1689.400
millions (consolidated basis) achieved during the previous year. The Company
expanded operations by adding personnel and additional offshore development
space in India. Strong emphasis on marketing and business development led to
increased business from existing clients as well as new client
acquisition.
Acquisitions
With the objective of significantly enhancing the scale and size of operations,
the Company continued to make strategic acquisitions to achieve growth. During
the year, the group made the following synergistic acquisitions in the
following companies:
Aspire
Communications, India
In July 2007, the Company signed a Share Purchase Agreement (SPA) to acquire majority stake in Aspire Communication Private Limited , India and its subsidiary Aspire Peripherals P Limited and to acquire majority stake in Aspire Soft, USA through its subsidiary CSWL Inc. USA. The acquisition would help the Company to further augment its Product Engineering Services. This company has offices in Mysore, Bangalore, and San Jose. Aspire focuses on providing Hardware Design Services to Technology companies.
international innovations inc.
In February 2008, the Company through its Subsidiary HealthNet International Inc. has acquired 100% equity stake in International Innovations Inc. USA. Founded in April 2003, International Innovations is a technology consulting company specializing in Enterprise Information Management Solutions. The acquisition would help the Company to augment its Enterprise Solutions Division.
Acquisition of balance 49% stake in inatech
infosolutions Private Limited:
The Company has entered into a share purchase agreement with the shareholders of Inatech Infolsoutions Private Limited on May 9, 2008 to facilate the conversion of Inatech Infosolutions Private Limited into a wholly Owned subsidiary of the Company. Pursuant to the terms of the agreement, sale of balance 49% shares is deemed to be effective January 1, 2008.
Amalgamation of Webspectrum
Software Limited with the Company
Pursuant to the scheme of amalgamation between the Company and its Wholly owned Subsidiary, Webspectrum Software Limited as approved by the Board of Directors of the Company at their meeting held on 23 January, 2007 and as sanctioned by the Honourable High Court of Judicature at Madras vide its Order dated February 19, 2008, the undertaking Webspectrum software Limited stood transferred to and vested in the Company on and from April 1, 2006.
Review of subsidiaries
CSWL, Inc. USA and its
subsidiaries
CSWL Inc. sales revenues improved to US$ 35.59 million (equivalent to Rs. 1423.200 millions approx) on a consolidated basis during the year, compared to US $28.00 million (equivalent to Rs.1264.100 millions) achieved during the previous year due to acquisitions as well as business growth. The subsidiary made a net consolidated profit of $ 1,128,435 (approx Rs.45.100 millions) as compared to net consolidated profit after tax of US$ 12,321 (equivalent to Rs 00.500 millions) last year. The improvement in profits was due to strategic acquisitions, divestments and better margins in existing operations.
The results of existing subsidiaries HealthNet International Inc., Codex Company Limited and its holding Company Waldron Limited, Informed Decisions Corporation are included for the full year under review. The results of Aspire Soft and International Innovations Inc. have been incorporated with effect from effective date of acquisition of 1 st July, 2007 and 1 st February, 2008 respectively.
Team Frontline
Limited
Team Frontline has achieved total revenue of Rs.75.900 millions and a profit of Rs.00.600 millions in the fiscal year 2007-08 as against the total revenues of Rs.68.100 millions and a profit after tax of Rs.00.400 millions in the previous fiscal year. The improvement was mainly on account of the improvement in sales combined with reduction in selling and distribution expenditure.
Inatech infosolutions
Private Limited
The consolidated results
of Inatech including its wholly owned UK subsidiary have been taken into the
Company's consolidated results. The financial results of Inatech, Egypt have
been taken into consideration from 1st November, 2007. Inatech,on a
consolidated basis, reported revenues of Rs.643.200 millions and profit after
tax of Rs 430.000 millions against the consolidated reported revenues of Rs
169.200 millions and profits after tax of Rs 22.700 millions of the previous
year. The performance is on the lines of the expectations of the Company
Aspire Communications Private Limited
The Consolidated results of Aspire including its Wholly owned Subsidiary Aspire Peripherals Limited have been taken into Company's Consolidated results from 1st July, 2007 (the date on which majority stake has been acquired by the Company). Aspire on a consolidated basis has reported revenues of Rs.14.600 millions and net loss of Rs.11.300 millions
EastPointSolutions
Limited
This company was incorporated as a wholly owned subsidiary in the year 2007 in order to make appropriate foray in Business Process Outsourcing area (BPO) either on start up basis or with suitable investments /acquisitions of existing companies in this space. As on date the Company is yet to commence any commercial activity and there are no revenues or profits forthe period ended March 31, 2008.
Consolidated Results
Publication
In terms of approval
dated 6th May, 2008 by the Central Government under Section 212 (8) of the
Companies Act, 1956, a copy of the Balance Sheet, Profit and Loss Account,
Report of the Board of Directors and the Report of the Auditors of the above
subsidiary companies have not been attached with the Balance Sheet of the
Company. The Company will make available these documents upon request in
writing to the Company Secretary at the Registered Office of the Company by any
member of the Company interested in obtaining the same.
However, as required under the Listing Agreements with the Stock Exchanges, the Consolidated Financial Statements of the Company and all its Subsidiaries as prepared in accordance with Indian GAAP is enclosed and form part of the Annual Report and Accounts.
Awards and
Recognition:
The Company, a CMMi Level 5 certified company, has
received awards and recognition across the world by achieving
21st in Deloitte Technology Fast
171 in Deloitte Technology Fast 500 in Asia Pacific
130 in Dataquest India
Contingent
liabilities
|
|
As on 31.03.2007 [Rs In Million] |
|
Income Tax
Demands Disputed /in Appeals |
32.413 |
The Company has received demand notices/or is in appeals with Income Tax
Appellate Tribunal/Commissioner of Income Tax (Appeals), Chennai as detailed
below :
|
Assessment year |
Demand amount [RS in Millions] |
Status |
|
1997-1998 |
0.564 |
Appeal filed by IT Department in Tribunal against the order of
Commissioner of IT |
|
2000-2001 |
1.085 |
Appeal filed
with IT Appellate Tribunal |
|
2001-2002 |
1.524 |
Appeal filed
with IT Appellate Tribunal. |
|
2002-2003 |
12.822 |
Appeal filed with
IT Appellate Tribunal |
|
2003-2004 |
1.242 |
Appeal filed
with IT Appellate Tribunal |
|
2004-2005 |
15.176 |
Appeal filed
with Commissioner of Income Tax (Appeals) |
b. Bank Guarantees as of March 31, 2007 availed against which the Company
will have to pay the banks who have issued these guarantees in case the parties
to whom they are issued invoke the guarantees –
i) For Customs Duty Rs. 0.787 Millions
ii) For others: Emirates Bank, Dubai, Performance Guarantee issued Rs.
1.157 Millions Canara Bank, Chennai-Tidel Park
branch- Performance Guarantee issued Rs. 2.178
Millions
Corporate
Guarantees
i) Company has
given a corporate guarantee to Canara Bank, Bangalore for the Working capital limits
granted by the bank to Company's wholly owned subsidiary Webspectrum Software
Limited (WSL) to the extent of Rs 2.500 Millions and
the limit continues operational as on March 31, 2007. (Borrowing availed on
March 31,2007 by WSL- Rs. Nil)
ii) Company has
given a corporate guarantee to Bridge Bank, USA for the Bills discounting line
of credit granted by the bank to its wholly owned subsidiary - CSWL Inc. to the
extent of US $ 2 million (Approx Rs 87.180 Millions).
As of March 31, 2007 the limit continues to be operational and borrowings
availed by CSWL Inc. under this line on March 31, 2007 were US$877361 (Rs.
38.244 Millions)
Fixed
Assets
- Computer and
accessories
- Electrical
Fittings
- Furniture and
Fittings
- Plant and
Machinery
- Fixtures and
Fittings
- Vehicle
- Building
- Books
AS PER
WEBSITE
Subject is a global solutions company that offers product
engineering services and product based business solutions in carefully chosen
domains. Their approach is to deliver total solutions to customers leveraging
their deep industry, technology and product expertise, along with their
strategic global partnerships and alliances.
Committed to delivering enduring stakeholder value, Calsoft
collaborates with its customers and partners to facilitate them to become high
performance businesses. They are specialists in value innovation and are
focused on delivering services and solutions that enable organizations to
improve effectiveness and reduce costs.
Calsoft offers concept-to-market RandD and engineering
services to its customers across verticals. Their expertise area include
- Next Generation Data Center Products
- Mobile, Multimedia and Consumer Electronics
- Vertical ISV
In each of these segments, they provide product
conceptualization and design, development, testing and automation and L3
product support services. In addition, their services include product lifecycle
management, hardware design, embedded services, L2 support and offshore RandD
lab/Engineering Development Center. Over the years, they have developed over 80
products for their customers.
Calsoft Enterprise Solutions (Calsoft) is racing ahead to become
the leaders in Enterprise solutions space world over. They are passionate about
technology and its potential to transform business.
Their mission and values are to assist their customers
realize their full potential by turning data into information, harnessing
information, and transforming ideas into action. Their customer centric
approach enables us to offer comprehensive services that ensure successful
business outcomes.
Their solutions can be broadly classified into enterprise
resource planning, customer relationship management and enterprise information
management. Their solutions portfolio leverages products, tools and
technologies developed by Oracle, Microsoft, Siebel, iLOG and K2. They make
their customers successful in the enterprise and mid market space by delivering
result-oriented solutions that give them a competitive edge in the market.
Calsoft’s growth strategy is built on the co-ordinates of predictability, sustainability and profitability. After having consolidated the core aspects necessary for organic growth, the company started focusing on synergistic acquisitions and value enhancement through strategic partnerships.
Calsoft’s wholly owned US subsidiary CSWL Inc. has signed a MoU to acquire a minimum of 66% equity in CODEX Company Limited, Tokyo (Codex). Codex is a Japanese company that focuses on providing information technology based solutions to leading commodity trading companies in Japan. Codex is instrumental in delivering B2B solutions, trading management systems and various customized packaged solutions to Industry leaders like Itochu Corporation and Itochu Petroleum.
The distribution agreement between Calsoft and Adobe Systems Inc. (Nasdaq: ADBE) allows Calsoft to license, distribute, and integrate the Macromedia Flash Player SDK and Macromedia Flash Lite into embedded and handheld devices in India, South Asia, and U.S. markets.
CSWL, the wholly owned U.S. subsidiary of Calsoft has joined the Phoenix Technologies (Nasdaq: PTEC) Trusted Partner Network. This provides profitable opportunities for software developers, resellers, distributors, and independent consultants that build and sell products based on the Phoenix TrustedCore™ Core System Software. CSWL’s Boston office is the exclusive distributor of Phoenix BIOS product in the East Coast of U.S.
Another segment, which is more or less recession proof, is higher education. By taking a majority stake in U.S based Informed Decisions Corp. (IDC), Calsoft further strengthened its offering in the Enterprise solutions space. IDC’s flagship product suite, CASHNet, provides cashiering, bill presentment and collection solutions to leading colleges and universities. The company has a customer base of over 65 leading colleges and universities in the US.
The addition of WebSpectrum Software Limited to Calsoft’s Technology Division strengthened its Networking and Communications program. Besides delivering quick results with additional orders from customers like Nortel Networks and Symettricom, the acquisition further consolidated the company’s footing in the technology solutions space.
Management Team
Under the direction of Calsoft’s management and technical team, the company maintains its leadership position delivering enterprise, commodities, and technology solutions. This group of goal-oriented, results-driven senior executives guide the company to its next level of growth and success.
Mr. S. (Sam) Santhosh, Managing Director and Chief Executive Officer
Mr. S. (Sam) Santhosh is Managing Director and CEO of California Software Company Limited (Calsoft). Mr. Santhosh founded Calsoft in 1992 with the vision to deliver value-added solutions to U.S customers. He established strong relationship with Chemoil Corporation (a San Francisco based global oil conglomerate) who later went beyond being a customer to become a joint venture partner. The relationship with Chemoil helped Calsoft to gain a good insight into Fuel Oil Bunkering Industry and enabled the company to built several unique solutions for the industry.
Sam’s technology vision saw him creating a new range of products in the CAD viewer market. In 1995, he lead a young team visualize, develop and market Dr.DWG suite of products and redefined the entire CAD Viewer market in the U.S. Having gained a good expertise in product development and sensing a market opportunity for software product development services, Sam focused on technology companies. The next few years saw Calsoft emerging as a leading player in the technology arena in the Silicon Valley. Products were developed for several companies including HP, Nortel Networks, Sony, and Affymetrix. In 1999, to reduce dependence in the U.S market, Sam set up offices for Calsoft in U.K, Japan and Singapore. Along with the Technology downturn in 2000-01, Sam restructured the company placing more focus on offshore development. During the next two years, Sam set up the Commodities Division to address the larger market beyond the fuel-oil industry. The following year an exclusive Division to address the needs of the enterprise market was set-up in alignment with Microsoft Business Solutions.
Mr. Santhosh works based out of Pleasanton California, where he directly manages the operations of Calsoft’s wholly owned U.S Subsidiary, California Software Labs (CSWL Inc.).
He has an MBA from IIM Calcutta, with an emphasis in Management Information Systems, and a degree in Engineering.
Dr. J.K. Nair, Executive
Vice President and Chief Operating Officer
Dr. J.K. Nair is Executive Vice President and COO of the Company's operations in India and its offices abroad.
Dr. Nair has over two decades of professional experience. Besides overseeing Calsoft group’s operations in India and all its international locations, his responsibilities include leading new strategic initiatives, people function, facilities, business assurance and knowledge management activities. He has assisted several fortune 500 corporations to achieve and sustain high performance and has managed some of the most prestigious and strategic global customers.
Prior to Calsoft, Dr. Nair had occupied senior management positions in functions such as pre-sales, implementation and delivery. He was associated with several global initiatives. and was integral to setting and building a totally new business line. Playing multiple roles, he established a strong and reliable ecosystem of customers, partners, sales and internal delivery teams to ensure predictable, sustainable and profitable business. His other significant professional achievements include spearheading several strategic consulting assignments and establishing numerous delivery and competency centers.
An active academician and researcher, Dr. Nair has published over two dozen articles and has supervised several undergraduate and post-graduate theses. He serves on the panel of referees for the International Journal of Production Research, the Europe Journal of Operational Research and the International Journal of Production Economics and serves as a guest faculty at some of the leading schools in the world. An Engineer by learning, Dr Nair is an alumnus of IIT Chennai.
Mr. Dan George Peterson, President and CEO - Informed
Decisions Corp (Subsidiary of Calsoft)
Mr. Dan G. Peterson is President and CEO of Informed Decisions Corp. (dba CASHNet®) a California Corporation based in Alameda, California. Mr. Peterson founded CASHNet in 1984 as a software development company specializing in networked business solutions for business, government and educational institutions. By 1995, the company was exclusively focused on its CASHNet cashiering and payment processing products, which were based on a project lead by Mr. Peterson nominated in 1993 for a Smithsonian/Computerworld Award for software excellence in education. Since that time, the company has focused exclusively on the higher education marketplace, winning a reputation as a leader in payment processing and customer service.
Mr. Peterson founded his first company, PBL Associates, in 1970 which designed and developed major applications for banking, financial, and government institutions, as well as business systems for manufacturing, distribution and retail enterprises. Selling his share of that company in 1984, Mr. Peterson founded Informed Decisions to take advantage of what he saw as the enormous potential of networked personal computers for strategic enterprise solutions.
Mr. Peterson works and lives in the San Francisco Bay Area where CASHNet is based. He is a long time member of TEC, a professional development organization for presidents and CEOs and also a member of the Association for Financial Professionals. He has a Bachelor’s degree in Computer Science from the University of California, Berkeley. His information technology career spans four decades including technical, marketing and senior management responsibilities.
Vedante Srihari, Managing Director - Inatech
Solutions(Subsidiary of Calsoft)
Vedante Srihari is the Managing Director and co-founder of Inatech Solutions with the vision of helping businesses derive the best of their technology solutions.
Under his leadership, Inatech aims to become a market leader, in providing business technology solutions. Srihari's overriding concern and the core of his business philosophy is providing optimum value for Inatech's business partners through value-based solutions. To that end, Inatech believes its solutions are geared towards establishing e-business process through optimization of technological solutions by integrating best of breed products.
Srihari has been implementing computerized financial systems since 1986 and during this time has gained a wealth of experience spanning all stages of software development and business processes. He has worked on various projects within the Banking and Manufacturing industries.
Before starting Inatech Solutions, Srihari was an engineer working with HCL Limited and ITC Limited, one of India's finest organizations. Srihari holds an undergraduate degree in Science, majoring in Mathematics from Osmania University in Hyderabad, India. In addition, he has undergone multiple management training in various facets of business.
Press Releases
Inatech Receives Applause from Oracle
Oracle recognized Inatech for Delivering Customer Success
and Commitment to Excellence
Chennai, 31st March, 2008 - UK based Inatech Solutions; a
part of California Software Company Limited (Calsoft) has been honored by
Oracle, for “Customer Success - Applications” at its 2008 UK Partner Awards.
Oracle is the world’s largest enterprise software company and Inatech was
recognized for its successful R12 Oracle E–Business Suite Implementations at
the recently concluded IBM-sponsored event held at The Mayfair Hotel in London.
This award is in recognition of Inatech’s continual track
record of Customer Satisfaction in Oracle E-Business space and also reflects
its commitment to the Oracle customer success programme. Inatech’s ‘Best
Practices’ and dedication to deliver ‘Business Value’ to clients have played a
major role in winning this award.
Mr. Srihari Vedante, Managing Director – Inatech Solutions
said, "Getting this prestigious award is very satisfying as it reinforces
Inatech’s commitment to customer satisfaction. This is the result of real
teamwork and I would like to thank Oracle, their valued customers and every
team member for this."
About the Oracle PartnerNetwork
Oracle Partner Network is a global business network of more
than 19,500 companies who deliver innovative software solutions based on Oracle
software. Through access to Oracle’s premier products, education, technical
services, marketing and sales support, the Oracle PartnerNetwork program
provides partners with the resources they need to be successful in today’s
global economy. Oracle partners are able to offer to their customers,
leading-edge solutions backed by Oracle’s position as the world’s largest
enterprise software company. Partners who are able to demonstrate superior
product knowledge, technical expertise and a commitment to doing business with
Oracle can qualify for the Oracle Certified Partner levels.
About Oracle
Oracle (NASDAQ: ORCL) is the world’s largest enterprise
software company.
Trademarks
Oracle is a registered trademark of Oracle Corporation
and/or its affiliates. Other names may be trademarks of their respective owners
About Inatech
Inatech is a business technology solutions company that aims
to service the specific needs of clients by using pertinent technology that
addresses their individual business needs. Founded in 2002, Inatech is a fast
growing Worldwide Oracle Certified Advantage Partner and is the preferred
partner of global enterprises that are re-engineering their processes and are
adapting to rapid changes. Head quartered in London, UK with offices in USA and
offshore development centres in India, Inatech is best suited to provide you
with the optimum mix of Onsite Offshore services. Being part of Calsoft Group
and established by former Oracle managers, Inatech team offers a unique
knowledge of Oracle "Best Practice.”
About Calsoft
California Software Company Limited (Calsoft) is a public
limited company in India with a global presence. Its development practices are
certified at CMMi Level 5. Founded in 1992, Calsoft group including
subsidiaries currently employs over 1000 professionals. The group has
development centers in Chennai, Bangalore and Mysore in India and Pleasanton,
(California), Alameda (California), Boston (MA) in the USA. Calsoft group has
marketing offices in the US, UK, Singapore, Japan, China, Taiwan, Dubai, Hong
Kong, Copenhagen and in India. Calsoft is listed in India at NSE (cali.ns) and
BSE (cali.bo).
Ixia
partners with Calsoft to set up Ixia Centre of Excellence (COE) in Calsoft
Bangalore, 14 October, 2008 - California Software Company Limited
(cali.bo and cali.ns), a global product engineering and enterprise solutions
company and Ixia (NASDAQ: XXIA), a leading global provider of performance test
systems for IP-based infrastructures and services, today announced a
multi-level partnership.
Calsoft and Ixia will together make a joint investment to
establish an Ixia Center of Excellence (COE) in Chennai, India. The COE will be
an RandD lab focused on jointly developing solutions for the global market. It
will be equipped with the latest Ixia IP test hardware and applications and
will be staffed by Calsoft development, quality assurance, and support
engineers. Calsoft will staff the center with 100 engineers over the next
twelve months.
"Ixia has partners throughout the world that help accelerate
its time-to-market," said Atul Bhatnagar, President and CEO of Ixia.
"Calsoft's unique talents and resources will increase their velocity even
further."
As one of its partners, Ixia will look to Calsoft to provide
skills in technology areas complimentary to Ixia's in order to address
telecommunication markets globally.
Commenting on the recent development, Mr. Sam Santhosh, CEO
and Managing Director, California Software Company Limited, said, "They are
very happy to be working in close partnership with Ixia. This partnership
enables us to demonstrate and leverage their expertise in product development
and testing, with a focus towards Ixia customers. Through this continued
association, they will be investing in building infrastructure and resource
capability and fortifying their strategy as an extended engineering development
and testing team for Ixia."
Calsoft Inagurates its Largest
State-Of-The-Art Facility at Pallikaranai, Chennai
Chennai, 29 August,
2008 - Global software solutions company, California Software Company
Limited, Calsoft (NSE: calsoft.ns, BSE: Calsoft.bo) today inaugurated its new
state-of-the-art facility at Pallikaranai, Chennai. The facility has seven
floors, with a total built up area of 95,200 sq. ft. and is equipped with the
latest features in connectivity and infrastructure security. With an investment
of around Rs. 750.000 millions, this would be Calsoft’s largest facility and
will house its software development centers for both its product engineering
and enterprise solutions division. The new premises will cater to the future
growth of the Company in terms of new projects and ramping of resources.
Chennai
is the most attractive Indian city for offshoring services with the
availability of a highly skilled talent pool. Calsoft at present has about 500
professionals in Chennai. They expect a rapid growth organically as Calsoft
will continue to strengthen its position in its chosen areas of operations.
said S (Sam) Santhosh, Managing Director and CEO of Calsoft.
Calsoft
has grown four folds since 2004 and in the year 07-08, Calsoft’s revenue was
Rs.2363.800 millions with a Year on Year (YOY) growth of 40%.
About Calsoft
California
Software Company Limited (Calsoft) is a global Product Engineering and
Enterprise Solutions company with a strong background in development and
implementation. Founded in 1992, their approach is to deliver total solutions
to customers leveraging their deep industry, technology and product expertise,
along with their strategic global partnerships and alliances.
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 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.47.94 |
|
UK Pound |
1 |
Rs.72.07 |
|
Euro |
1 |
Rs.64.70 |
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 |
8 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
65 |
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 |
|