MIRA
INFORM REPORT
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Report Date : |
09.06.2008 |
IDENTIFICATION
DETAILS
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Name : |
DIRECTI INTERNET SOLUTIONS PRIVATE LIMITED |
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Formerly Known as : |
GXS INTERNET SOLUTIONS PRIVATE LIMITED |
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Registered Office : |
52, Jalan House, Walkeshwar Road, 5th Floor, Mumbai – 400
006, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
20.08.2004 |
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Com. Reg. No.: |
11-148125 |
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CIN No.: [Company
Identification No.] |
U72900MH2004PTC148125 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMG10998B |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Providers of IT Services. |
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 3300000 |
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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 well-established and reputed company having fine track. General
financial position is good. Business is active. Payments are reported as
usually correct and as per commitments. The company can be considered good for normal business dealings. |
INFORMATION PARTED
BY
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Name : |
Mr. Divyank Turakia |
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Designation : |
Director |
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Date : |
28.05.2008 |
LOCATIONS
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Registered Office : |
52, Jalan House, Walkeshwar Road, 5th Floor, Mumbai – 400
006, Maharashtra |
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Tel. No.: |
91-22-66797501 |
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Fax No.: |
91-22-66797508 |
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E-Mail : |
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Website : |
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Location : |
Rented |
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Corporate Office : |
330, Link Way Estate, Link Road, Malad (West), Mumbai – 400 064,
Maharashtra, India |
DIRECTORS
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Name : |
Mr. Mahendra D. Turakhia |
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Designation : |
Director |
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Address : |
A – 19, Maharaja Surajmal, 4 Bungalows, Mumbai – 400 053, Maharashtra,
India |
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Date of Birth/Age : |
21.11.1947 |
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Date of Appointment : |
Since Incorporation |
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Name : |
Mrs. Priya M. Turakhia |
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Designation : |
Director |
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Address : |
A – 19, Maharaja Surajmal, 4 Bungalows, Mumbai – 400 053, Maharashtra,
India |
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Date of Birth/Age : |
28.11.1948 |
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Date of Appointment : |
Since Incorporation |
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Date of Ceasing : |
02.09.2005 |
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Name : |
Mr. Divyank Turakhia |
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Designation : |
Director |
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Address : |
A – 19, Maharaja Surajmal, 4 Bungalows, Mumbai – 400 053, Maharashtra,
India |
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Date of Birth/Age : |
29.01.1982 |
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Date of Appointment : |
01.09.2005 |
KEY EXECUTIVES
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Name : |
Mr. Bhavin Turakhia |
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Designation : |
Chief Executive Officer |
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Address : |
A – 19, Maharaja Surajmal, 4 Bungalows, Mumbai – 400 053, Maharashtra,
India |
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Date of Birth/Age : |
28 Years |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 26.09.2005
|
Names of Shareholders |
No. of Shares |
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Mr. Mahendra D Turakhia (Equity Shares) |
500 |
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Mrs. Priya Turakhia (Equity Shares) |
500 |
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Total |
1000 |
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Mr. Mahendra D Turakhia (Preference Shares) |
4500 |
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Mrs. Priya Turakhia (Preference Shares) |
4500 |
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Total |
9000 |
Equity share breakup (Percentage of total equity)
As on 31.03.2007
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Sr. No. |
Category |
Percentage |
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1. |
Foreign holdings
(Foreign institutional investors, Foreign companies Foreign financial
institutions, Non resident Indians or overseas corporate bodies or others |
83.26 |
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2. |
Directors or
relatives of directors. |
16.74 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Providers of IT Services. |
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Products : |
v Communication and Collaboration networks v Social Networking software v Instant messaging v Data miners and crawlers that parse through Terabytes of data v Context Analysis Engines v Antispam and Antivirus Solutions v Large scale Billing and Provisioning platforms |
GENERAL
INFORMATION
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No. of Employees : |
550 |
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Bankers : |
ICICI Bank Karnataka Bank |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Kakaria and Associates Chartered Accountants |
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Address : |
J K Chambers, Selvas Road, Vapi – 396191, Gujarat, India |
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Sister Concerns : |
There are several group of company in other business. |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
14,100,000 |
Equity shares |
Rs. 1/- each |
Rs. 14.100 millions |
|
900,000 |
Preference shares |
Rs. 1/- each |
Rs. 0.900 million |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
12,010,000 |
Equity shares |
Rs. 1/- each |
Rs. 12.010 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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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 |
12.010 |
2.100 |
0.100 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
655.098 |
0.297 |
0.000 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
667.108 |
2.397 |
0.100 |
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LOAN FUNDS |
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1] Secured Loans |
20.392 |
0.000 |
0.000 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
20.392 |
0.000 |
0.000 |
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DEFERRED TAX LIABILITIES |
1.499 |
0.249 |
0.000 |
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TOTAL |
688.999 |
2.646 |
0.100 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
19.298 |
5.454 |
0.000 |
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Capital work-in-progress |
3.989 |
0.000 |
0.000 |
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INVESTMENT |
125.223 |
13.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
0.000
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0.000 |
0.000 |
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Sundry Debtors |
2.556
|
4.925 |
0.000 |
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Cash & Bank Balances |
93.395
|
117.528 |
0.000 |
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Other Current Assets |
331.463
|
19.112 |
98.100 |
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Loans & Advances |
196.243
|
12.227 |
0.000 |
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Total
Current Assets |
623.657
|
153.792 |
98.100 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
83.176
|
169.731 |
7.800 |
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Provisions |
0.459
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0.023 |
0.000 |
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Total
Current Liabilities |
83.635
|
169.754 |
7.800 |
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Net Current Assets |
540.022
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(15.962) |
90.300 |
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MISCELLANEOUS EXPENSES |
0.466 |
0.154 |
9.700 |
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TOTAL |
688.999 |
2.646 |
0.100 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
|
31.03.2007 |
31.03.2006 |
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Sales Turnover (Including Other Income) |
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1171.202 |
29.795 |
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Total Income |
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1171.202 |
29.795 |
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Profit/(Loss) Before Tax |
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656.486 |
0.571 |
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Provision for Taxation |
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0.000 |
0.000 |
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Profit/(Loss) After Tax |
|
656.486 |
0.571 |
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Earnings in Foreign Currency : |
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Other Earnings |
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1065.865 |
21.990 |
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Total Earnings |
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1065.865 |
21.990 |
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Expenditures : |
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Interest |
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1.538 |
0.000 |
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Depreciation & Amortization |
|
4.058 |
0.358 |
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Other Expenditure |
|
509.120 |
28.866 |
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Total Expenditure |
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514.716 |
29.224 |
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KEY RATIOS
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PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
56.05
|
1.92 |
-- |
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Net Profit Margin (PBT/Sales) |
(%) |
56.05
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1.92 |
-- |
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Return on Total Assets (PBT/Total Assets} |
(%) |
56.05
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1.92 |
-- |
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Return on Investment (ROI) (PBT/Networth) |
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0.98
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0.24 |
-- |
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Debt Equity Ratio (Total Liability/Networth) |
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0.12
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70.82 |
78.00 |
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Current Ratio (Current Asset/Current Liability) |
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7.46
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0.91 |
12.58 |
LOCAL AGENCY
FURTHER INFORMATION
Management
Mr. Bhavin
Turakhia
Founder CEO and
Chairman
Bhavin brings over 12 years of technology experience and over 9 years of Market knowledge to the Directi Group and is today chiefly responsible for the Vision, Strategy, and Service Offerings of Directi. He has a very deep understanding of the Web Services Industry, a Strong Technical background, a keen Business sense, and most importantly, an unquenchable ambition for growth.
In 1998, at the age of 19, he founded Directi, with a focus to develop volume based Web Products and Services for a global audience. Directi is a technology-centric company, and an industry leading Web Services Provider serving a growing audience of Customers in 230 countries.
Bhavin is responsible for the vision and architecture of several Directi's Products and services. He has also been instrumental in defining, Directi's Corporate Structure and Business Process automation, which enable Directi to continue growing at triple digit growth rates year after year. He is a respected entity in the Web 2.0 landscape, and a frequent speaker at various seminars. He also serves as a technical advisor to the local Cyber Crime Investigation Cell. He has won several awards, including the Entrepreneur of the year award in 2005.
Bhavin was also former chairman for the Global ICANN Accredited Registrars Constituency for two consecutive terms. He has been the youngest elected chair for this post in the history of ICANN. ICANN is the global Internet compliance and policy formation authority.
Mr. Divyank
Turakhia
Co-Founder
President and Director
Divyank oversees the company's day-to-day global operations and guides the vision of several Directi product lines. He has been a driving force behind Directi's innovation and expansion into new markets and has assisted significantly in multiplying revenues each year.
Divyank started his career early on through internet consulting for large businesses. As DirectI has evolved into a truly global company with 700,000+ customers in over 230 countries, Divyank has been actively involved in building the corporate infrastructure needed to maintain the rapid growth, and in forging strategic partnerships essential for continuing these growth rates.
Divyank is respected as an innovator in the field of web services, and has contributed articles to both technical journals and industry magazines. He has been instrumental in architecting and successfully creating, some of the most advanced products and solutions in the field of web & email hosting, anti-spam, and data security. He is also a frequent speaker on critical issues pertaining to the internet industry.
Milestones
NOV 2007
For the third consecutive year, Directi is ranked amongst
the Technology Fast 50 list by Deloitte and Touche.
AUG 2007
Skenzo is featured in the List of Asia's Top 200 Private
Companies by Red Herring.
APR 2007
Directi opens an office in China.
JAN 2007
Skenzo is ranked as the #1 Fastest growing domain parking company
worldwide for 2006 by Revenue.
NOV 2006
For the second consecutive year, Directi is ranked among the
Technology Top 50 India and Technology Top 500 Asia-Pacific fastest growing
technology companies by Deloitte and Touche.
OCT 2006
Reseller Club - Directi Group's wholesale arm is the second
fastest growing domain registrar in the world for the month.
AUG 2006
Divyank Turakhia is featured in the list of Asia's Top Young
Entrepreneurs by Business Week Magazine.
AUG 2006
Directi is awarded the IT Day Award in the special
achievement category.
AUG 2006
Within seven months of its launch, Reseller Club - Directi
Group's wholesale arm crosses the 1 million domain names mark becoming the 13th
largest domain registrar worldwide.
JUL 2006
Divyank and Bhavin Turakhia are featured as one of the
country's Top Young Entrepreneurs in an exclusive interview on CNBC.
FEB 2006
Directi Group purchases a new office facility to house 2500
employees, and appoints Hafeez Contractor for designing the same. The facility
should be ready for occupation in mid-2007.
FEB 2006
Directi Group launches its wholesale arm - Reseller Club
that provides turnkey business process automation and end to end Web Services
to its 25,000+ strong channel partner network.
DEC 2005
Skenzo, the new startup business unit, announces that it
shall now be run under the direct leadership of Divyank Turakhia. Turakhia
plans to grow the startup into a full-fledged business.
DEC 2005
DirectI Group is ranked 147th fastest growing technology
company among the top 500 fastest growing technology companies according to
Deloitte Technology Fast 500 Asia Pacific Program.
NOV 2005
Directi Group is ranked 10th fastest growing technology
company among the top 50 fastest growing technology companies according to
Deloitte Technology Fast 50 India Program.
Oct 2005
Directi Group surpasses the 500,000 customers’ benchmark.
Oct 2005
Directi Group hives off its Domain Registrar into a new
Business Unit - Public Domain Registry - an exclusive white-labeled Domain
Registrar
Sep 2005
Bhavin Turakhia wins the Bharti Entrepreneur of the Year
Award instituted by the Entrepreneurship Development Institute of India
Jan 2005
Domain Registrar Business becomes one of the first 4
official .in Registrars
Dec 2004
Directi Group's Domain Registrar Business Ranks 15th in the
list of Fastest Growing Registrars Worldwide
Jun 2004
Directi Group crosses 200,000 Customers worldwide.
Dec 2003
Directi Group Launches Logic Boxes, its software and
consulting arm which powers Registrars worldwide.
Dec 2003
Directi Group Crosses the 100,000 Customers milestone.
Sep 2003
Launches WebHosting.Info, the leading online news and
statistics portal covering the Web Hosting industry.
Apr 2002
Jumps 13 ranks to become the 63rd largest Registrar
worldwide.
Jan 2002
Jumps 12 ranks to become the fastest growing Registrar in
Asia and the 76th largest Registrar worldwide.
May 2001
Directi becomes the first and ONLY Company in India to get
an ICANN Accreditation.
Trade References
v Nasscom
v Network Solution
v Restices.com
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 :
The 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.
The Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 42.79 |
|
UK Pound |
1 |
Rs. 83.77 |
|
Euro |
1 |
Rs. 66.71 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
6 |
|
--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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
55 |
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, they have no basis upon which to
recommend credit dealings |
No Rating |
|