MIRA
INFORM REPORT
|
Report Date : |
21.01.2008 |
IDENTIFICATION
DETAILS
|
Name : |
DEUTSCHE NETWORK
SERVICES PRIVATE LIMITED |
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Registered Office : |
Kodak House, 222
Dr. D. N. Road, Fort – 400001, Mumbai – 400001, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
24.03.2003 |
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Com. Reg. No.: |
11-139685 |
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CIN No.: [Company
Identification No.] |
U74999MH2003PTC139685 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMD09011C |
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Legal Form : |
Private Limited
Liability Company |
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Line of Business : |
Undertaking of
back office work for Deutsche Bank |
RATING &
COMMENTS
|
MIRA’s Rating : |
Aa |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
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 |
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Maximum Credit Limit : |
USD 470000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a new
company of Deutsche Bank for undertaking back office work. Available information
indicates high financial responsibility of the company. Trade relations are
fair. Financial position is satisfactory. Trade relations are fair.
Fundamentals are strong with total support from Deutsche Bank. It has assured
business from Deutsche Bank, worldwide. The company can
be considered as excellent business partners. |
LOCATIONS
|
Registered Office : |
Kodak House, 222
Dr. D. N. Road, Fort – 400001, Mumbai – 400001, Maharashtra, India |
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Tel. No.: |
91-22-56584283 |
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Fax No.: |
91-22-22086177 |
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E-Mail : |
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Area : |
Leased – 16000
sq. ft. |
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Corporate Office : |
Peninsula Corporate Park, Nicholas Pirmal Towers, G. K. Marg, Lower
Parel, Mumbai – 400013, Maharashtra, India |
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Tel. No.: |
91-22-55063085 |
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Fax No.: |
91-22-55063092 |
DIRECTORS
|
Name : |
Mr. Arindam
Banerji |
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Designation : |
Director |
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Address: |
3A, Sunny Side
Apartment, 4, Bride Street, Lang Ford Town, Bangalore – 560025 |
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Date of
Birth/Age : |
14.11.1964 |
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Date of
Appointment : |
21.06.2004 |
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Name : |
Mr. Gunit Chadha |
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Designation : |
Chairman |
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Address: |
181 – a, Maker
Tower, Cuffe Parde, Mumbai – 400005 |
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Date of
Birth/Age : |
31.07.1961 |
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Date of
Appointment : |
31.01.2004 |
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Name : |
Ms. Amita
Hiranand Jhangiani |
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Designation : |
Director |
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Address: |
120, Tanjong RHU
3 03-04, Casuarina Cove, Singapore – 436904 |
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Date of
Birth/Age : |
15.06.1957 |
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Date of
Appointment : |
23.04.2003 |
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Name : |
Ms. Roopkala Bindiganavale
Sethuram |
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Designation : |
Director |
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Address: |
263, River Valley
Road, # 15 – 20, Aspen Heights , Singapore – 238309 |
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Date of
Birth/Age : |
08.06.1957 |
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Date of
Appointment : |
23.04.2003 |
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Name : |
Mr. Shrinath
Bolloju |
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Designation : |
Director |
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Address: |
Flat No. 3-4S,
Jivesh Terraces, B J Road, Bandstand, Bandra (West), Mumbai – 400050 |
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Date of
Birth/Age : |
30.03.1964 |
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Date of
Appointment : |
16.03.2006 |
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Directorship
in other company |
Deutsche Investor Service Private Limited Cin –No.: U65993MH2006PTC162490 |
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Name : |
Mr. Hari Shankar Chaitanya |
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Designation : |
Director |
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Address: |
263, Bukit Timah Road, 02-01, Case Rosita, Singapore – 259704 |
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Date of
Appointment : |
29.09.2006 |
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Directorship
in other company |
DB Operations International Private Limited CIN –No.: U72900MH2005PTC158278 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
|
No. of Shares |
|
Arora Vedprakash
Vikas |
|
1 |
|
Deutsche Asia
Pacific Holding |
|
49998 |
|
Banerrji C
Arindam |
|
1 |
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Total |
|
50000 |
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|
|
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Equity Share
Breakup |
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Percentage of
Holding |
|
Category |
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|
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Foreign holdings [Foreign institutional investors, Foreign
Companies, Foreign Financial Institutions, Non-resident Indian or Overseas
corporate bodies or others] |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Undertaking of
back office work for Deutsche Bank |
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|
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|
Products : |
Back office
support services |
GENERAL
INFORMATION
|
Bankers : |
Deutsche Bank, Bangalore
Branch, Raheja Tower, M G Road, Bangalore - 560001 and Mumbai |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
BSR and Company Chartered
Accountants |
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Address : |
KPMG House, Kamala
Mills Compound, 448, Senapati Bapat Marg, Lower Parel, Mumbai – 400013, India |
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Tel. No.: |
91-22-24913030/24913131 |
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Fax No.: |
91-22-24988368/24913132 |
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Holding
Company : |
Deutsche Asia
Pacific Holding Pte Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
50000 |
Equity Shares |
Rs. 10/- each |
Rs. 0.500 million |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
50000 |
Equity Shares |
Rs. 10/- each |
Rs. 0.500 million |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share Capital |
0.500 |
0.500 |
0.500 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
116.316 |
54.193 |
17.625 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH
|
116.816 |
54.693 |
18.125 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
268.157 |
150.215 |
|
|
2] Unsecured
Loans |
540.031 |
0.000 |
0.000 |
|
TOTAL
BORROWING
|
540.031 |
268.157 |
150.215 |
|
|
DEFERRED TAX
LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
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TOTAL
|
656.847 |
322.850 |
168.340 |
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|
|
|
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APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
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FIXED ASSETS [Net Block]
|
265.261 |
89.779 |
47.876 |
|
Capital work-in-progress
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
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INVESTMENT
|
0.000 |
0.000 |
0.000 |
|
DEFERREX TAX ASSETS
|
3.803 |
1.360 |
2.770 |
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CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
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Inventories
|
0.000
|
0.000
|
0.000 |
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Sundry Debtors
|
395.139
|
203.700
|
68.169 |
|
|
Cash & Bank Balances
|
5.887
|
12.947
|
21.919 |
|
|
Other Current Assets
|
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances
|
117.797
|
104.700
|
56.630 |
Total Current Assets
|
518.823
|
321.347
|
146.718 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
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Current Liabilities
|
116.634
|
84.078
|
22.676 |
|
|
Provisions
|
14.406
|
5.558
|
6.348 |
Total Current Liabilities
|
131.040
|
89.636
|
29.024 |
|
Net Current
Assets
|
378.783
|
231.711
|
117.694 |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
656.847 |
322.850 |
168.340 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
|
|
|
|
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Total Income |
1141.832 |
576.089 |
237.669 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
78.780 |
48.553 |
15.764 |
|
|
Provision for Taxation |
0.000 |
0.000 |
5.428 |
|
|
Profit/(Loss) After Tax |
78.780 |
48.553 |
10.336 |
|
|
|
|
|
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Expenditures : |
|
|
|
|
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Interest |
35.788 |
16.925 |
|
|
|
Depreciation & Amortization |
57.023 |
30.272 |
221.905 |
|
|
Other Expenditure |
92.811 |
480.339 |
|
|
Total Expenditure |
970.241 |
527.536 |
221.905 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
6.90
|
8.42
|
4.35 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
6.90
|
8.42
|
6.63 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
10.05
|
11.80
|
8.10 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.67
|
0.89
|
0.87 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
5.74
|
6.54
|
9.89 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.96
|
3.58
|
5.06 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
Deutsche Network
Services Private Limited (DNSPL of the company) was incorporated on 24 March 2003as
a private limited company under the companies Act, 1956. The principal
shareholder of the company is Deutsche Asia Pacific Holdings Pte Limited
(100%), a company incorporated in Singapore. The company is formed with the
objective of established a global processing center and is presently engaged in
undertaking services such as payments processing, collection of payments,
customers services, trade processing etc. for Deutsche Group Entities.
Fixed Assets :
- Leasehold improvements
- Furnitures and fixtures
- Office equipments
- Telecommunication equipments
- Computer (Hardware)
- Computer (Software)
|
Name of the
company |
DEUTSCHE NETWORK
SERVICES PRIVATE LIMITED |
|
Presented by |
Deutsche Bank, Bangalore
Branch, Raheja Tower, M G Road, Bangalore - 560001 and Mumbai |
|
Date and
Description of the instrument creating charge |
Deed of
Hypothecation of movable fixed assets and book debts dated 09.06.2003 |
|
Amount Secured by
the charge or amount owing on security of the charge |
EUR 2.200 Equivalent to
approximately – Rs. 121.000 Millions |
|
Short particulars
of the property charged if property acquired is subject to charge date of
acquisition of property should be given
|
Hypothecation of
all the present and future movable fixed assets comprising of machineries,
office equipment, electrical fitting along with machinery Spares Parts,
Furniture and Fixture which now or hereinafter time to time during the
continuance of these presents shall be brought in, stored or be in above the
company’s premises or Godown, at the godowns or premises of the company’s
agents or representatives or at various work sites or at any up country place
or places where over situated in India and on transit, whether now belonging
to or that may at any time during the continuance of these presents belong to
the company and that may be now or hereafter held by any party anywhere else
in India to the order and disposition of the company as and by way of first
charge in favour of the bank as security for the payment by the company to
the bank of the balance due to the bank at any time or ultimately on the
aforesaid facilities. Hypothecation of
all the present and future book debts, outstanding, monies receivable,
claims, bills, contracts, engagements, securities which are now due and owing
or which may at any time hereafter during the continuance of these present,
become due and owing to the company in the course of its business by any
person, firm company in the course of its business by any person, firm
company or body corporate or by the Government of India or any state
department or office or any Municipal or local or public or semi –
government first charge in favour of
the bank as security for the payment by the company to the bank of the
balance due to the bank at any time or ultimately on the aforesaid facilities
|
|
List of the terms
and conditions and extent & operation of charge Margin – 25% Rate of
Interst |
The company shall
pay to the bank interest on the aforesaid facilities at the rate of Deutsche
Bank of India prime lending rate per annum as prevalent from time to time Right of entry,
view, insure, take possession of, recover, receive or receivers and sell or
realize by public auction or private contract or otherwise in favour of the
Bank as provide in the aforesaid Deed of Hypothecation |
|
Name, address and
description of the person entitled to charge |
Deutsche Bank, Bangalore
Branch, Raheja Tower, M G Road, Bangalore - 560001 and Mumbai |
|
Date and brief of
the description of instrument modifying the charge |
First
supplemental deed of hypothecation assets and book debts dated 20.12.2004 |
|
Particulars of
modification the terms, conditions the extent or operation of the charge in
which modification |
The bank at the
request of the borrower has agreed increased the maximum drawing limits of
the Borrowers in respect of the said facilities from Euro 2.200 to Euro 4.200
The hypothecation
assets described in the principal agreement of hypothecation and
hypothecation in favour the bank and hereafter in favour of the bank shall be
and stand hypothecation and charged also for future facility hereby agreed to
be given and continued to the Borrowers by Bank upto the said limit of Euro
4.200 Millions and interest and other moneys due in respect thereof as if the
said facilities upto the said limit of Euro 4.200 Millions had formed part of
the amounts due to the Bank under the Principal Agreement of
Hypothecation. |
AS PER
WEBSITE
Deutsche Bank starts Deutsche Network Services in Bangalore
Their
Banking Bureau
14 July 2003
Bangalore: Deutsche Bank has announced the inauguration of Deutsche
Network Services Private Limited (dNETS) in Bangalore, marking the bank's first
step into business process outsourcing (BPO) in India. A wholly-owned
subsidiary of Deutsche Bank, dNETS will initially commence a pilot processing
centre in Bangalore for global cash operations and electronic payment
processing.
dNETS will process payment transactions for Deutsche Bank entities around the world including those located in New York, Frankfurt, London and several Asian countries. Initially, electronic payments processing will be undertaken in US dollars and euro and will eventually broaden to include other currencies.
Operating from over 16,000 square feet of space and with state-of-the-art technology and IT support, dNETS is located in the International Tech Park in Whitefield in Bangalore and will commence with approximately 50 employees. It is anticipated that staffing levels will grow to several times initial levels by the end of 2004.
Says Deutsche Bank chief information officer (global transaction bank IT / operations) Wolfgang Gaertner: "Deutsche Bank continually reviews all options including hubbing and outsourcing to obtain maximum leverage for our IT and processing expenditure. This allows us price our products competitively and to meet the highest levels of client expectation in service delivery. India has proven its ability to provide high-quality, cost-effective, IT-processing solutions, within a conducive business environment and with an impressive pool of well-trained and high-calibre professionals."
Adds Deutsche Bank head of cash operations (Asia Pacific) Roopa Sethuram: "dNETS will give Deutsche Bank additional capability to provide optimal financial solutions to our clients. From the very start, dNETS has been designed around the six sigma framework in order to deliver a clear focus on providing the highest service standards, as well as to achieve best in class cost performance. The entire dNETS project was made a reality in less than 90 days, making it one of the fastest BPO project executions of its kind in India."
Says Deutsche Bank global head of bulk payments and EDI operations Graeme Hosking: "dNETS illustrates the bank's ability to combine its global strengths in effective processing solutions, with local Indian expertise. As the first example of a wholly-owned offshore operation for Deutsche Bank in Asia, it clearly shows our continued commitment to expand our operations in India. The quality of this development makes me confident that dNETS will add considerable benefit to our global network."
With roughly $802 billion in assets and approximately 70,900 employees, Deutsche Bank offers its 13-million clients unparalleled financial services in 76 countries throughout the world. The bank aspires to be a leading global provider of integrated financial solutions for demanding clients and the pre-eminent bank in Germany generating exceptional value for its shareholders and people.
Deutsche Bank ranks among the global leaders in corporate banking and securities, transaction banking, asset management, and private wealth management, and has a significant private and business banking franchise in Germany and other selected countries in Continental Europe.
In Asia Pacific, Deutsche Bank has over 30 offices in 15 countries with more than 5,900 staff. In India, the bank employees around 480 people and operates branches in Bangalore, Chennai, Kolkata, New Delhi and Mumbai with representations in all the major business areas.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service, Interpol,
etc.
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.39.27 |
|
UK Pound |
1 |
Rs.77.33 |
|
Euro |
1 |
Rs.57.51 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
81 |
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 |
|