MIRA
INFORM REPORT
|
Report Date : |
28.07.2008 |
IDENTIFICATION
DETAILS
|
Name : |
SPANCO TELESYSTEMS AND SOLUTIONS LIMITED |
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Registered Office : |
B – 22, Krishna Bhuvan, B S Deoshi Marg, Deonar, Mumbai – 400 088,
Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
20.03.1984 |
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Com. Reg. No.: |
032422 |
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CIN No.: [Company
Identification No.] |
L65990MH1984PLC032422 |
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Legal Form : |
Public Limited liability company. Company’s shares are listed on stock
exchanges. |
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Line of Business : |
Subject is engaged in Telecommunication and IT enabled services. |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 14000000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed company having satisfactory
track. Directors are reported as
experience and respectable businessmen.
Trade relations are reported as fair.
Business is active. Payments
are usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
B – 22, Krishna Bhuvan, B S Deoshi Marg, Deonar, Mumbai – 400 088,
Maharashtra, India |
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Tel. No.: |
91-22-67975566 |
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Fax No.: |
91-22-67975599 |
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E-Mail : |
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Website : |
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Branches : |
Gurgaon Hyderabad Ahmedabad United Kingdom Australia/ New
Zealand United States of
America
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DIRECTORS
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Name : |
Mr. Kapil Puri |
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Designation : |
Chairman and Managing Director |
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Date of Birth/Age : |
41 years |
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Qualification : |
Computer Engineer |
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Experience : |
20 years |
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Date of Appointment : |
21.01.2005 |
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Name : |
Mr. Rajesh Chhabria |
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Designation : |
Managing Director |
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Name : |
Mr. Deepak Bhagchandaney |
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Designation : |
Wholetime Director |
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Date of Birth/Age : |
37 Years |
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Qualification : |
Electronic and Telecommunications Engineering, Masters degree in
Marketing |
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Experience : |
12 Years |
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Date of Appointment : |
15.03.2002 |
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Name : |
Mr. Adarsh Bagaria |
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Designation : |
Wholetime Director |
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Date of Birth/Age : |
33 Years |
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Qualification : |
Bachelor of Commerce |
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Experience : |
10 Years |
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Date of Appointment : |
21.01.2005 |
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Name : |
Mr. Ramesh Sharma |
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Designation : |
Director |
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Name : |
Mr. Rajkumar Bahri |
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Designation : |
Director |
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Name : |
Mr. Prakash Desai |
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Designation : |
Director |
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Name : |
Mr. Paresh Bambolkar |
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Designation : |
Director |
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Date of Ceasing: |
10.08.2006 |
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Name : |
Mr. Deepak Vasdev |
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Designation : |
Additional Director |
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Date of Appointment: |
28.04.2006 |
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Name : |
Major General G K Nischol AVSM, VSM, (Retd.) |
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Designation : |
Additional Director |
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Date of Appointment: |
28.04.2006 |
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Name : |
Mr. Sanjay Kukreja |
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Designation : |
Director |
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Date of Appointment: |
15.05.2007 |
KEY EXECUTIVES
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Name : |
Mr. Sanjay Kumar Mutha |
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Designation : |
Company Secretary |
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Name : |
Mr. Amit Kumar Gupta |
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Designation : |
Company Secretary |
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Name : |
Mr. Ravi Batnagar |
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Designation : |
Regional Head, Telecom Division, Theystern and Southern Regions |
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Date of Birth/Age : |
45 Years |
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Qualification : |
B.Com. PR |
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Experience : |
23 Years |
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Date of Appointment : |
17.01.2005 |
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Previous Employment : |
Shojkh Technologies International Limited |
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Name : |
Mr. Hemant Sethi |
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Designation : |
Vice President |
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Date of Birth/Age : |
44 Years |
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Qualification : |
B Tech |
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Experience : |
20 Years |
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Date of Appointment : |
03.05.2005 |
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Previous Employment : |
Arya Ominitalc Wireless Solutions Limited |
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Name : |
Mr. P P Singhal |
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Designation : |
Regional Head |
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Date of Birth/Age : |
52 Years |
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Qualification : |
BE |
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Experience : |
30 Years |
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Date of Appointment : |
01.12.2006 |
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Previous Employment : |
ZTE Telecom India Private Limited |
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Name : |
Mr. Anil Wadhwa |
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Designation : |
Chief Operating officer |
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Date of Birth/Age : |
34 Years |
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Qualification : |
Commerce Graduate from Osmania Univ. Hyderabad |
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Experience : |
15 Years |
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Date of Appointment : |
15.07.2000 |
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Name : |
Mr. Rajesh Duggal |
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Designation : |
Senior Vice President |
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Date of Birth/Age : |
44 Years |
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Qualification : |
M Tech |
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Experience : |
20 Years |
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Date of Appointment : |
01.04.2004 |
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Name : |
Mr. Monojit Samadar |
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Designation : |
Assistant Vice President |
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Date of Birth/Age : |
37 Years |
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Qualification : |
BE, MBA |
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Experience : |
15 Years |
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Date of Appointment : |
15.05.2006 |
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Previous Employment : |
Tulip |
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Name : |
Mr. Hemant Mehta |
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Designation : |
Vice President – IT Information Security |
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Date of Birth/Age : |
35 Years |
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Qualification : |
Science Graduate, Diploma in Computer Technology, Masters in Software
App. And Programs |
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Experience : |
35 Years |
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Date of Appointment : |
06.09.2005 |
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Previous Employment : |
WNS Global Services Limited |
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Name : |
Mr. S C Chugh |
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Designation : |
Vice President |
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Date of Birth/Age : |
59 Years |
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Qualification : |
BE |
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Experience : |
35 Years |
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Date of Appointment : |
02.01.2007 |
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Previous Employment : |
Servel India Private Limited |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 31.12.2007:
|
Category Code |
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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(A) |
Shareholding of
Promoter and Promoter Group |
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1 |
Indian |
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(a) |
Individuals / Hindu Undivided Family |
6286177 |
30.44 |
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Total (A) |
6286177 |
30.44 |
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(B) |
Public
Shareholding |
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1 |
Institutions |
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(a) |
Mutual Funds / UTI |
269481 |
1.30 |
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(b) |
Venture Capital Funds |
1094123 |
5.30 |
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(C) |
Foreign Institutional Investors |
2196739 |
10.64 |
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Sub total (B)
(1) |
3560343 |
17.24 |
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(B2) |
Non –
Institutions |
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Bodies Corporate |
4735405 |
22.93 |
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I |
Individuals –shareholders holding nominal share capital upto Rs. 0.100
million |
1257978 |
6.09 |
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II |
ii. Individual shareholders holding nominal share capital in excess of
Rs. 0.100 million |
1600254 |
7.75 |
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(c ) |
Any Other Specify |
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(c-i) |
NRI |
96852 |
0.47 |
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(c-ii) |
OCB’s |
3081326 |
14.92 |
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(c-iii) |
Clearing Member |
31665 |
0.15 |
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Sub total (B)
(2) |
10803480 |
52.32 |
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Total Public
Shareholding (B) = (B) (1) + (B) (2) |
14363823 |
69.56 |
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GRAND TOTAL |
20650000 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in Telecommunication and IT enabled
services. |
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Products : |
Item Code No. 85179000 NA |
Product
Description Multiplexer Call Centre |
GENERAL
INFORMATION
|
Bankers : |
·
ABN Amro ·
Deustche Bank ·
IndusInd Bank ·
State Bank of Indore ·
Exim Bank ·
Karur Vysya Bank ·
Yes Bank ·
Barclays Bank ·
Bank of India ·
HDFC Bank ·
Standard Chartered Bank ·
Centurion Bank of Punjab ·
State Bank of Hyderabad ·
Citi Bank ·
ICICI Bank ·
State Bank of India ·
HSBC Limited |
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Facilities : |
Secured Loans |
As
on 31.03.2007 (Rs.
in millions) |
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Debentures Fully redeemable secured Debentures (250 (PY. Nil) From Banks: Term Loans: Rupee Loan Foreign Currency loan Working Capital
Loans: Rupee loan Foreign currency loan Others: From finance companies- vehicle loans Total |
250.000 219.188 227.994 744.243 33.911 12.416 1487.752 |
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Un secured Loans |
As
on 31.03.2007 (Rs. in millions) |
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Short Term Loan from Banks Short Term Loan from Others Total |
502.045 52.549 554.594 |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
RSM and Company Chartered Accountants |
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Address : |
Mumbai, Maharashtra, India |
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Associates : |
· Global Respondez Services Limited · Percept Trading Private Limited · Respondez UK Limited · Steady Growth Properties Private Limited |
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Subsidiaries : |
· Global Respondez Inc., USA · Spanco (S) Pte Limited, Singapore · Spanco Limited, Dubai · Spanco Europe Limited (Formerly known as Viking Outsourcing Limited), UK · Skandsoft Technologies Private Limited · Spanco Global Solutions Private Limited · Spanco Great IT Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
27000000 |
Equity Shares |
Rs. 10.00 each |
Rs. 270.000 millions |
|
3000000 |
Redeemable Preference shares |
Rs. 10.00 each |
Rs. 30.000 millions |
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Total |
|
Rs. 300.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
26708700 |
Equity Shares |
Rs. 10.00
each |
Rs. 267.087
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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|
SHAREHOLDERS FUNDS |
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|
1] Share Capital |
267.087 |
158.246 |
169.868 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
2498.570 |
1229.757 |
439.058 |
|
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
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NETWORTH |
2765.657 |
1388.002 |
608.927 |
|
|
LOAN FUNDS |
|
|
|
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1] Secured Loans |
1487.751 |
542.144 |
404.002 |
|
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2] Unsecured Loans |
554.594 |
0.000 |
9.200 |
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TOTAL BORROWING |
2042.345 |
542.144 |
413.202 |
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DEFERRED TAX LIABILITIES |
13.285 |
0.630 |
15.774 |
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TOTAL |
4821.287 |
1930.776 |
1037.902 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
531.823 |
374.579 |
594.989 |
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Capital work-in-progress |
395.614 |
244.500 |
0.000 |
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|
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INVESTMENT |
606.312 |
16.471 |
16.471 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
88.547
|
90.628
|
6.889 |
|
|
Sundry Debtors |
1894.223
|
958.817
|
360.365 |
|
|
Cash & Bank Balances |
1134.273
|
70.945
|
107.001 |
|
|
Other Current Assets |
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances |
1700.560
|
668.234
|
243.931 |
|
Total
Current Assets |
4817.603
|
1788.624
|
718.186 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
1426.090
|
433.702
|
278.067 |
|
|
Provisions |
103.975
|
59.696
|
13.676 |
|
Total
Current Liabilities |
1530.065
|
493.398
|
291.743 |
|
|
Net Current Assets |
3287.538
|
1295.226
|
426.443 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
4821.287 |
1930.776 |
1037.902 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
4265.912 |
2136.364 |
1043.783 |
|
|
Other Income |
58.535 |
7.951 |
3.504 |
|
|
Increase/ (decrease) in stock |
(15.821) |
83.711 |
(55.881) |
|
|
Total Income |
4308.626 |
2228.026 |
991.406 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
478.597 |
230.899 |
123.419 |
|
|
Provision for Taxation |
151.888 |
31.320 |
26.154 |
|
|
Profit/(Loss) After Tax |
326.709 |
199.579 |
97.265 |
|
|
|
|
|
|
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|
Earnings in Foreign Currency : |
|
|
|
|
|
|
Export Earnings |
743.645 |
85.907 |
84.799 |
|
|
Income from services |
414.278 |
418.083 |
247.080 |
|
Total Earnings |
1157.923 |
503.990 |
331.880 |
|
|
|
|
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|
|
|
Imports : |
|
|
|
|
|
|
Purchase of Traded Goods |
978.980 |
184.235 |
164.803 |
|
|
Capital Goods |
5.336 |
24.692 |
27.755 |
|
Total Imports |
984.316 |
208.927 |
192.558 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Purchase and direct expenses |
3031.467 |
993.340 |
0.000 |
|
|
Software Development cost |
0.509 |
0.000 |
0.000 |
|
|
Manufacturing Expenses |
0.000 |
0.000 |
306.182 |
|
|
Personnel Cost |
306.950 |
441.460 |
261.365 |
|
|
Operating and other expenses |
261.120 |
356.630 |
0.000 |
|
|
Interest and finance charges |
141.398 |
70.163 |
30.559 |
|
|
Depreciation & Amortization |
88.585 |
135.534 |
70.405 |
|
|
Other Expenditure |
0.000 |
0.000 |
199.476 |
|
Total Expenditure |
3830.029 |
1997.127 |
867.988 |
|
SUMMARISED RESULTS
|
|
31.03.2008 |
|
Type |
Full Year |
|
Sales Turnover |
5654.500 |
|
Other Income |
77.800 |
|
Total Income |
5732.300 |
|
Total
Expenditure |
4813.800 |
|
Operating Profit |
918.500 |
|
Interest |
217.900 |
|
Gross Profit |
700.600 |
|
Depreciation |
100.300 |
|
Tax |
217.300 |
|
Reported PAT |
382.600 |
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
0.63 |
0.48 |
0.74 |
|
Long Term Debt-Equity Ratio |
0.22 |
0.24 |
0.5 |
|
Current Ratio |
1.75 |
1.98 |
1.77 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
6.22 |
3.29 |
2.11 |
|
Inventory |
47.64 |
43.82 |
29.95 |
|
Debtors |
2.99 |
3.24 |
4.17 |
|
Interest Cover Ratio |
4.38 |
4.29 |
5.03 |
|
Operating Profit Margin(%) |
16.61 |
20.44 |
21.48 |
|
Profit Before Interest And Tax Margin(%) |
14.53 |
14.1 |
14.73 |
|
Cash Profit Margin(%) |
9.74 |
15.69 |
16.05 |
|
Adjusted Net Profit Margin(%) |
7.66 |
9.34 |
9.3 |
|
Return On Capital Employed(%) |
18.57 |
20.4 |
19.74 |
|
Return On Net Worth(%) |
15.96 |
19.99 |
21.7 |
LOCAL AGENCY
FURTHER INFORMATION
Management
Discussion and Analysis
Introduction
After having successfully utilized the onset of the telecom
wave in India, the nation's businesses are now looking forward to greater
developments in its related fields. In addition to this, the industry has
turned even more lucrative with the government's eagerness to promote
e-governance and hence built an information super highway as the base
infrastructure for various e-governance applications to ride on it.
They all are witnessing the dawn of telecom and IT services as an industry,
which is now touching every common man's life. Today people at large are able
to see the impact of communication technologies on their daily life, and this
is just the beginning. The communication revolution ushered in by an ecosystem
of telecom operators, technology vendors and application service providers is
yet at a nascent stage which is expected to snowball into a huge market
potential.
The long-term potential of this industry is colossal. In the long run, a few
significant forces shall be driving it further than ever before. A large mass
of untapped potential customers are set to take off. Furthermore, India has
achieved the familiarity and experience with offshoring and this is
dramatically increasing the breadth of service lines. Significant
under-penetrated segments exist at both country and industry levels and there
is pressure on global majors to look at India's skill sets and expertise more
seriously than ever before.
Indian Telecom Industry, in terms of wireline and wireless
growth has demonstrated unprecedented number growth month on month, more so in
the wireless domain. Recent industry surveys depict that cellular subscribers
grew almost 73 per cent in 2006-07 to touch 157 Mn. mark. In the last financial
year, India added more mobile lines per month than China. On an average, 5.5
Mn. cellular lines Theyre added every month, taking the mobile subscriber base
to 157 Mn. from 91 Mn. in 2005-06. In terms of new services, Broadband
connectivity and Value Added Services rule the roost. The share of VAS in the carrier's
revenues has increased from measly 3% a few years back to as much as 20% in
present context.
With telecom infrastructure at core, the system integration market for both
products and services are poised for huge growth across all the market segments
like Governments (SWANs, e-governance, etc.), Defense, PSUs and
Utilities.
Moreover, the IT software and services industry has been segmented into four
components - the IT services exports sector, ITES exports, product and
technology services and the domestic market. As per the study, IT services
exports will touch USD 28-30 Bn. by the year 2008, the ITES segment will
account for USD 21-24 Bn., while the products and technology services industry
will contribute around USD 8-10 Bn. to overall revenues. The domestic software
market will generate revenues of USD 13-15 Bn.
RFID is an appropriate example of software services based application. It is
predicted that the global sales of RFID equipment are growing steadily as
technical problems are slowly overcome. The global forecast RFID hardware,
middleware, and IT market was worth $1 Bn. in 2005. In 2007, this number will
grow to more than $3 Bn., and is projected to reach more than $10 Bn. by
2011.
The RFID market is anticipated to continue to grow rapidly in these and many
other market sectors and industries including the food and drug industry,
propelled by United States FDA mandates. By 2015, according to a report from
Research and Markets, the RFID market will bevalued at $26 Bn.
Opportunities
and threats:
Telecom
integration
The year 2006-07 was marked by drastic reduction in the cost of owning a
cellular handset and a connection. Introduction of lifetime validity schemes,
low cost of services, low roaming charges, low STD cost, and a slew of Value
Added Services led to a 72.7 per cent jump in subscribers, according to a
survey. Though there is a decline in the number of subscribers and revenue,
fixed telecom players are upping their ante, says the Voice and Data survey.
This year fixed line service providers are expected to launch new services like
IPTV and Metro Ethernet that will utilize the existing fixed line
infrastructure in the country. This spells nothing but great opportunity for
companies like Spanco.
To expand their subscriber base fixed line service providers will look at
promoting services like Wi-Fi and Wi-Max, besides fixed mobile convergence. The
first volume of Voice and Data's VandD100 for 2006-07 had focused on the
telecommunications equipment market, which grossed Rs. 771.70 Bn. Of the total,
carrier equipment contributed Rs. 427.63 Bn., phones brought in Rs. 234.52 Bn.
and the enterprise equipment brought in Rs. 109.55 Bn. This scenario again
spells loads of potential for infrastructure developers and service providers, but
this may also give rise to competition. In case some large telecom companies
decide to run their own infrastructure divisions, They would face increased
competition. They intend to play out this risk by acquiring as many different
clients as possible and staying ahead of others at all times. In doing so, not
only do They stay ahead, but also maintain the repute as reliable, speedy and
quality service providers in the industry.
BPO
The BPO industry in India has been growing 70 percent a year and is now worth
USD 1.6 Bn., employing 100,000 people. And as McKinsey analysts put it, BPO has
to grow only 27% till 2008 to deliver USD 17 Bn. In revenues and employment of
a million people. The unique partnership betTheyen the government and NASSCOM
has helped place India firmly on the global technology map. The fundamentals of
the Indian IT and ITES industry are strong and this partnership will continue
to realize the long-term goals of national growth.
Reports note that over the last 2 years, the industry landscape has
fundamentally changed in terms of customer purchasing behavior, entry of global
IT majors and increasing polarization of player performance. Companies are
getting more and more eager to get close to the customer and to get
interactive, as this is what is spelling success in the 21st century. This
opens up a highly lucrative avenue for the BPO segment all across the country.
Along with it, this also brings along the need to be able to adapt quickly to
every possible customer interaction need-to be able to transform your processes
to the client's needs. And that is something that Respondez has already proved
its mettle at.
Besides, off shoring opportunities for Indian ITES players exist across a wide range
of processes as Theyll as across multiple verticals. In the coming years,
banking and insurance are likely to provide the maximum opportunity driven by
the high cost base and high extent of offshorable processes in these verticals.
Spanco has already curtailed this risk and tuned it to an advantage by having
established itself as a reliable and successful entity in these sectors.
Outlook
Telecom integration
The telecom sector is riding an ever surging wave in the Indian markets, thanks
to the liberalization of the Indian economy. The growth in the telecom sector,
especially in the cellular wireless services has been toTheyring. Cellular
revenue is now double the $6.7 Bn. revenue from fixed phones, three times the
$4.2 Bn. from long distance-the main income-earner until recently for telecom.
Cellular pushed up the telecom services industry beyond Rs. 1000 Bn., to a
whopping $24 Bn. level, says the VoiceandData survey. Revenue from seven
telecom services - cellular, fixed line, International Long Distance (ILD),
National Long Distance (NLD), internet and broadband, VSAT and radio trunking
increased to Rs. 1076.81 Bn. during 2006-07 from Rs. 885.22 Bn. in 2005-06. A
growth of nearly a 100 million connections has taken place in the past one year
and much more is expected further. What is noteworthy here is the fact that
this growth has been restricted to the cities. The vast rural horizons of India
that are actually accountable for a larger populace still remain untouched.
This is what is about to change in the coming year. With the government
supporting the spread of telecom networks to connect rural India, upgrade its
infrastructure and growing the disposable incomes of the rural masses, the
industry can expect a plethora of opportunities. This shall also increase the
need for solution providers like Spanco. With the growth in information
technology, e-governance has become the need of the hour for better and
people-centric governance and state governments are waking to this
reality.
All these factors augur Theyll for Spanco, a company that has amassed a vast
spectrum and depth of experience and credibility to its name and has thoroughly
established itself as one of the leading providers of cutting edge technology
products and business enhancing and management solutions.
BPO
The BPO sector is on an all time high in India, with more and more segments
warming up to the system. The Internet Retail Segment, Accounts Receivable
Management, Gaming Segment etc., provide new shores to the industry. In India
alone the domestic call center industry is growing at the rate of 60% a year
and revenues in 2008 are expected to exceed $ 17 Bn. Telecom, BFSI and
Insurance segment leaders in outsourcing voice and back office work are on the
look-out for large, multi-location Networked Centers. Besides the Growing
Indian markets, actively exploring JV opportunities with onshore US companies
who have synergies with the existing processes also adds to the development of
the BPO enterprise. Yet apart from that, building on current tech support
capabilities and evaluating acquisitions in Financial, Medical and LPO space
also unlocks plenty of financial potential. All in all, Spanco is Theyll poised
in terms of experience, infrastructure, technology setup and service delivery
to unlock all the available potential and utilize it for a staggering financial
growth in the coming years.
RFID
With the global awakening to the capabilities and potential of RFID for
innovating and simplifying business and admistration, there is no dearth of
opportunities in this segment. Taking the defense sector into consideration,
Spanco is already working towards making SETUT' a default platform for various
material / inventory and MGO initiatives. The company has also focused on
addressing the Supply Chain logistics segment, which contributes to a huge
market of RFID technologies globally. Most notably, the Company is also looking
forward to the acquisition of a RFID services entity having presence in the
international markets. International Operations for access to Europe, USA, and
Middleeast markets are already underway in order to reach out towards a wider
market-share. Similarly, BOOT projects for aviation also imply a huge
opportunity given the growing number of airlines in the country in the present
times. Meanwhile, the government of India as Theyll as the governing bodies in
various countries are rapidly opening up to the concepts of e-governance and
security applications in administration.
Contingent Liabilities
|
Particulars |
As at March 31,
2007 (Rs.
in millions) |
|
Letters of Credit issued by bankers |
211.875 |
|
Guarantees given by banks on behalf of the
Company |
204.246 |
Particulars of security provided against secured loans
Term loans are secured by first mortgage/equitable
mortgage and charged on all immovable properties (except immovable property)
including investment property, first charge by way of hypothecation of all
movable properties (except book debts) including movable plant and machinery,
second charge on current assets of the company and also by way of personal
guarantee and pledge of shares by the Directors of the Company and pledge of
equity shares held by the Company, in one of the wholly owned subsidiaries.
Working capital facilities from banks are
secured by hypothecation of stock, entire book debts, receivables and other
current assets of the Company, both present and future ranking pari passu with
all banks. The facilities are further secured by second charge on fixed assets
of the company ranking pari passu with all banks and personal guarantee by
Directors of the Company.
The debentures are secured by a legal
mortgage, in English form in favour of the trustees on all the Company’s
properties situated at 301/5008, 5th row, Ground floor, A wing, City
Mall situated at plot No.4, Sector 19, Vashi Navi Mumbai-Maharashtra.
Other loans from finance companies are secured
by hypothecation and exclusive charge on specific asset acquired out of such
loan.
Deferred payment credits are secured by way of
assets acquired under hire purchase agreements.
Amount repayable within one year Rs.990.103
millions (Previous Year Rs.201.708 millions).
The current year income and expenses do not include
income and expenses of the Domestic Call Centre Division (SPARSH) which was
transferred to Intelenet BPO Services Limited with effect from January 1, 2006.
Hence, the current year results are not strictly comparable.
Fixed Assets
·
Freehold Land
·
Building
·
Guest House
·
Leasehold improvements
·
Plant and Machinery
·
Electric Installation
·
Furniture and Fixtures
·
Office Equipments
·
Computers
·
Motor Vehicles
Intangible assets
·
Goodwill
·
Software
Company
Over the ages, it is information, the access
to it and the ability to process it that have dictated change in the world.
Also the means to delivering information have played an equally pivotal role.
Telecommunication for one has evolved into an indispensable information
delivery tool. From a mere people communication tool, telecom today helps
businesses succeed by helping exchange info swiftly and adequately.
And in this Telecom Technology space subject stands tall as one of the most
specialized providers of cutting edge business enhancing solutions and
services.
Established in 1995 by Mr. Kapil Puri and Mr. Rajesh Chhabria, today subject is
one of the leading networking and systems integration Solutions Company in
India. From providing telecom integration services to multinational companies,
public sector units and India's vast Defense sector, subject has also extended
its expertise into the dynamic space of Call Centre and Business Process
Outsourcing also.
3300 employees strong, subject is spread over nine locations - Mumbai,
Pune, Ahmedabad, Gurgaon, Kolkata, Bangalore, Hyderabad, Lucknow and Guwahati.
Internationally, subject has a 100% subsidiary in New Jersey, USA.
The company is accredited with the ISO 9001 - 2000 quality certification for
Telecom Integration Services and also listed in the Bombay Stock Exchange.
Business Partners and Alliances
Subject’s alliances with leading global companies like Alcatel, Nortel,
Apropos, DMC Stratex Networks assist the company in its bids for large Indian contracts
with oil companies, Indian railways, the Indian defense establishments and
other projects. As a result, the company has acquired visible and
brand-enhancing clients like ONGC, Indian Railways and BSNL, among others over
the years.
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 Theyre 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
betTheyen a company’s management, its Board of Directors, Shareholders and
other financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.42.23 |
|
UK Pound |
1 |
Rs.83.88 |
|
Euro |
1 |
Rs.66.41 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
60 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of Theyighted scores obtained from each of the major sections of this report.
The assessed factors and their relative Theyights (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 Theyight in credit
consideration. Capability to overcome financial difficulties seems comparatively
below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, They have no basis upon which to
recommend credit dealings |
No Rating |
|