MIRA
INFORM REPORT
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Report Date : |
14.02.2008 |
IDENTIFICATION
DETAILS
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Name : |
NORTEL NETWORKS [INDIA] PRIVATE LIMITED |
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Formerly Known As : |
NORTEL [INDIA] PRIVATE LIMITED |
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Registered Office : |
I-3, Shivalik House, Ikarampura Commercial Complex, New Delhi 110015 |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
25.07.1996 |
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Com. Reg. No.: |
55-80656 |
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CIN No.: [Company
Identification No.] |
U74999DL1996FTC080656 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELN03697B |
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PAN No.: [Permanent
Account No.] |
AABCN1424B |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Providing services for IT Solution, Networking Equipments, Call Centre Solutions and VoIP Convergence Products. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 1200000 |
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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 an established company having satisfactory track. Trade
relations are fair. Business is
active. Payments are reported as 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 : |
I-3, Shivalik House, Ikarampura Commercial Complex, New Delhi 110015, India
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Tel. No.: |
91-11-41115222 |
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Fax No.: |
91-11-29219656 |
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E-Mail : |
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Website : |
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Branch 1 : |
Orchid Plaza, 2nd Floor, Sector 54, Sun
City, Gurgaon 122-002, Haryana, India |
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Tel. No.: |
91-124-4342200 |
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Fax No.: |
91-124-4342292 |
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Branch 2 : |
Salapuria Adonis, Ground Floor, # 3/1, Old
Madras Road, Binnamangala, Bangalore
560-008, India |
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Tel. No.: |
91-80-66278000 |
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Fax No.: |
91-80-66278080 |
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Branch 3 : |
P & G Plaza, Ground Floor, Cardinal
Gracias Road, Chakala, Andheri (EAST) |
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Tel. No.: |
91-22-6697 8700 |
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Fax No.: |
91-22-6697 8787 |
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Branch 4 : |
5th floor (Level-4), Tower D, IBC
Knowledge Park, #4/1, Bannerghatta Road, |
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Tel. No.: |
91-80-6647 2700 |
DIRECTORS
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Name : |
Mr. Joseph Samuel |
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Designation : |
Director |
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Address : |
3283, HAL, IInd Stage, 12th main, 8th Cross
Indira Nagar, Bangalore 560008, Karnataka, India |
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Date of Appointment : |
30.09.1999 |
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Name : |
Mr. Mark George |
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Designation : |
Director |
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Address : |
18, Bradleys Head Road, Mosan, NSW 2088, Australia |
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Date of Appointment : |
30.09.1999 |
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Name : |
Mr. Ravinder Singh Chauhan |
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Designation : |
Additional Director |
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Address : |
Apartment D, Scarlet Bells, HAL II Stage No. 316, 6th Main,
Bangalore 560038, Karnataka, India |
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Date of Birth/Age : |
19.04.1964 |
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Date of Appointment : |
08.05.2006 |
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Name : |
Mr. Trevor Beeches |
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Designation : |
Director |
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Name : |
Mr. Lorrie Mathers |
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Designation : |
Director |
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Name : |
Mr. Ashoka Valia |
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Designation : |
Managing Director |
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Address : |
15th floor, Steesha Apartments, Mount Hary Road, Bandra
[West], Mumbai 400050, Maharashtra, India |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Equity Share
Breakup |
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Percentage of
Holding |
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Foreign Holdings |
|
100.00 |
BUSINESS DETAILS
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Line of Business : |
Providing services for IT Solution, Networking Equipments, Call Centre Solutions and VoIP Convergence Products. |
GENERAL INFORMATION
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Customers : |
· Reliance Infocomm · Bharat Sanchar Nigam Limited (BSNL) · Bharti · BPL Mobile Communications · Gas Authority of India Limited (GAIL) · Eastern Railway |
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No. of Employees : |
50 |
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Bankers : |
Scheduled Bank |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
S. Kochhar and Associates Chartered Accountants |
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Address : |
S-454, Greater Kailash-II, New Delhi 110048, India |
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Associates/Subsidiaries : |
Nortel Group |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
15500000 |
Equity Shares |
Rs. 10/- each |
Rs. 155.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
15500000 |
Equity Shares |
Rs. 10/- each |
Rs. 155.000 Millions |
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FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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155.000 |
155.000 |
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2] Share Application Money |
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0.000 |
0.000 |
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3] Reserves & Surplus |
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146.264 |
126.007 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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301.264 |
281.007 |
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LOAN FUNDS |
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1] Secured Loans |
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0.000 |
0.000 |
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2] Unsecured Loans |
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0.000 |
4600.000 |
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TOTAL BORROWING |
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0.000 |
4600.000 |
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DEFERRED TAX LIABILITIES |
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0.000 |
0.000 |
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TOTAL |
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301.264 |
4881.007 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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310.086 |
132.876 |
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Capital work-in-progress |
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1725.504 |
2631.327 |
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INVESTMENT |
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0.028 |
0.029 |
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DEFERREX TAX ASSETS |
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200.186 |
185.289 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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0.000 |
0.000 |
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Sundry Debtors |
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1724.746 |
4064.685 |
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Cash & Bank Balances |
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1235.625 |
457.409 |
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Other Current Assets |
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3564.798 |
3447.795 |
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Loans & Advances |
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1792.562 |
2795.446 |
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Total
Current Assets |
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8317.731 |
10765.335 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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9716.713 |
8153.948 |
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Provisions |
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535.558 |
679.901 |
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Total
Current Liabilities |
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10252.271 |
8833.849 |
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Net Current Assets |
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[1934.540] |
1931.486 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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301.264 |
4881.007 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2007 |
31.03.2006 |
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Sales Turnover |
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5798.287 |
11741.275 |
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Other Income |
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542.087 |
98.338 |
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Total Income |
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6340.374 |
11839.613 |
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Profit/(Loss) Before Tax |
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371.593 |
262.947 |
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Provision for Taxation |
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351.335 |
456.106 |
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Profit/(Loss) After Tax |
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20.258 |
[193.159] |
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Earnings in Foreign Currency : |
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1281.277 |
3883.615 |
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Total Imports |
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1433.009 |
5931.683 |
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Expenditures : |
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Financial Charges |
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667.560 |
482.155 |
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Depreciation & Amortization |
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122.388 |
44.026 |
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Other Expenditure |
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5178.833 |
11050.485 |
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Total Expenditure |
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5968.781 |
11576.666 |
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KEY RATIOS
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PARTICULARS |
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31.03.2007 |
31.03.2006 |
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PAT / Total Income |
(%) |
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0.31 |
1.63 |
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Net Profit Margin (PBT/Sales) |
(%) |
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6.40 |
2.23 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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4.30 |
2.41 |
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Return on Investment (ROI) (PBT/Networth) |
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1.23 |
0.93 |
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Debt Equity Ratio (Total Liability/Networth) |
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34.03 |
47.80 |
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Current Ratio (Current Asset/Current Liability) |
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0.81 |
1.21 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY:
The name of the company has been changed to the present w.e.f. 29th June, 2000.
The company deals with the following:-
Services Providers
· Voice, VoIP and Multimedia
· Broadband Access
· Metro Ethernet
· Wireless Mesh
· Services Edge
· Transport Networks
Cable Operators
· Cable Telephone
· Commercial Services
· Converged Transport
· Date Infrastructure
· Video on Demand
· Wireless
Wireless Operations
· CDMA
· GSM/GPRS/EDGE
· TDMA
· UMTS
· WLAN
Large Enterprise
· IP Telephone
· Security
· WLAN/Mobility
· Customer Contact
· Multimedia Services
· Appliation Switching
· Ethernet Switching
Some of its major customers are:-
· Reliance Infocomm
Subject has supplied Reliance’s 60,000 kms national optical backbone, India’s first 10 G DWDM network and the largest in Asia, as well as a new CDMA digital wireless network in the state of Gujarat.
· Bharat Sanchar Nigam Limited (BSNL)
A GSM/GPRS digital wireless network in southern and eastern India, with capacity for seven million subscribers.
· Bharti
A high capacity optical SDH backbone, spanning 35,000 kms for Bharti Telesonic’s OneIndia brand, a fixed – line Bharti Touch Tel Network in New Delhi and the State of Haryana.
· BPL Mobile Communications
A major GSM network expansion in the state of Maharashtra.
· Gas Authority of India Limited (GAIL)
A DWDM/SDH optical backbone interconnection India’s top 20 traffic routes for India’s leading gas company.
· Eastern Railway
A next generation GSM-R (GSM for Railways) communication system in the state of West Bengal.
AS PER WEBSITE
DETAILS:
CORPORATE INFORMATION
Hundreds of millions of people, Fortune 500
companies, and government institutions around the world trust their networks to
Nortel's reliable and secure solutions.
Subject is a recognized leader in delivering communications
capabilities that make the promise of Business Made Simple a reality for their
customers. Their next-generation technologies, for both service provider and
enterprise networks, support multimedia and business-critical applications.
Nortel's technologies are designed to help eliminate today's barriers to
efficiency, speed and performance by simplifying networks and connecting people
to the information they need, when they need it. Nortel does business in more
than 150 countries around the world.
Their Solutions
Nortel's leading portfolio of solutions
spanning packet, optical, wireless and voice technologies are at the very
foundation of the world's economy, powering global commerce and delivering innovative
network capabilities to connect rural and underdeveloped regions.
profile
Subject is a recognised leader in delivering communications
capabilities. If offers India’s carrier and enterprise customers one of the industry’s
strongest product and solution portfolios – encompassing converged voice/data
networks and IP services, multimedia services and applications, including VPNs,
personalised IP services, multimedia services platforms, contact centers and
voice portals; wireless broadband, from total 3G solutions to wireless LAN and
Wireles Mesh Networks; and end-to-end broadband solutions such as optical
Ethernet, multi-service packet, multi-service optical, storage network and
ultra-broadband access solutions.
It established its first office in India in 1991, as the country began
the process of telecommunications industry liberalisation. In the years that
followed, and particularly in the period since 2001, the company has rapidly
evolved into a major telecommunications force in India. Working from offices in
Mumbai, Delhi and Bangalore, the company has established leadership positions
in India’s optical transport market and in the enterprise arena – especially in
the call centre and business process outsourcing (BPO) segments – and was now
building upon the solid skills and technology platform it has created to win
significant new contracts in wireless as well as in the wireline and optical
markets.
In India and around the world, the company’s business units are aligned
into two main categories : Carrier Networks (incorporating Wireless Networks,
Wireline Networks and Optical Networks) and Enterprise Networks.
ENTERPRISE
NETWORKS
·
Subject has deployed total call centre solutions and data networking
equipment to a broad range of Indian enterprise customers across multiple
vertical market and diverse geographical areas.
·
In the call centre and BPO market, the company was fast emerging as the
country’s technology leader – with 16,000 agent positions deployed for various companies
such as Bharti Airtel, Taj Reservation Networks, American Express, iSeva, BNK
Capital Markets Group, Hinduja Technology Media Telecom (HTMT), Hiranandani and
Office Tiger, among others.
·
In data networking, the company has supplied advanced solutions to five
of India’s top ISPs and to virtually all of India’s stock exchanges, with the
Bombay Stock Exchange representing the largest installed base of networking
routers anywhere in South Asia.
·
The company is focused on the delivery of converged voice and data
networks, IP telephony, multimedia contact centres, wireless LAN and Wireless
Mesh Networks, and working with carriers to provides the metro optical
connectivity required to support enterprises in deploying security-based,
data-protection solutions such as business continuity, disaster recovery and
storage area networking.
·
In India, the Nortel’s Enterprise Solutions are sold and supported by a
network of distributors and resellers as part of the Nortel nPower Channel
Partner Program – a strategic Asia Pacific initiative designed to arm regional
channel partners with in-depth knowledge of company’s comprehensive voice and
data products as well as the technology and support skills required to help
them make enterprise customers successful.
·
The subject also provides their services to software development
companies such as Infosys, WIPRO, Tata Consultancy Services and Sasken
Technologies. All major Nortel Technology labs around the world had assigned
part of their development activity to 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 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. 39.68 |
|
UK Pound |
1 |
Rs. 77.67 |
|
Euro |
1 |
Rs. 57.81 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
6 |
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OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
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|
--BUSINESS SCALE |
1~10 |
8 |
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--PROFITABILIRY |
1~10 |
5 |
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--LIQUIDITY |
1~10 |
7 |
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--LEVERAGE |
1~10 |
7 |
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--RESERVES |
1~10 |
5 |
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--CREDIT LINES |
1~10 |
5 |
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--MARGINS |
-5~5 |
- |
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DEMERIT POINTS |
|
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--BANK CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|