MIRA
INFORM REPORT
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Report Date : |
13.05.2008 |
IDENTIFICATION
DETAILS
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Name : |
GOLDSTONE TECHNOLOGIES LIMITED |
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Registered Office : |
9-1-83 and 84, Amarchand Sharma Complex, S D Road, Secunderabad – 500
003, Andhra Pradesh |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
18.03.1994 |
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Com. Reg. No.: |
01-17211 |
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CIN No.: [Company
Identification No.] |
L72200AP1994PLC017211 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
HYDG00868A |
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PAN No.: [Permanent
Account No.] |
AAACG7478F |
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Legal Form : |
Public Limited Liability Company. The Company’s shares are listed on
the Stock Exchanges. |
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Line of Business : |
Subject Provides IT Services As Technical Suppport Outsourcing, Forte
(UDS) Migration, and Professional Consulting 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 14100000 |
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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 satisfactory track. Directors are
reported as experienced and respectable businessmen. Trade relations are
fair. Business is active. Payments are usually correct and as per
commitments. The company can
be considered good for normal business dealings at usual trade terms and
conditions. |
LOCATIONS
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Registered Office : |
9-1-83 and 84, Amarchand Sharma Complex, S D Road, Secunderabad – 500
003, Andhra Pradesh, India |
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Tel. No.: |
91-40-27807640/ 27800742/ 27806706 |
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Fax No.: |
91-40-39120023/ 27714968 |
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E-Mail : |
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Website : |
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Software Division : |
Door No. 8-2-243/A, 2nd and 3rd Floor, Maharshi Building Road No. 3, Banjara
Hills, Hyderabad - 500 034, India |
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Overseas Branches : |
UNITED
STATES HEADQUARTERS Website: http://www.goldstonetech.com Vermont Illinois Connecticut JAPAN Goldstone Technologies |
DIRECTORS
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Name : |
Mr. Nandan Kundetkar |
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Designation : |
Chairman |
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Name : |
Mr. Clinton Travis Caddell |
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Designation : |
Managing Director and Chief
Executive Officer |
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Age : |
30 Years |
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Qualification : |
Bachelor of Science from University of North Carolina |
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Other Directorship : |
Lockheed Martin |
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Name : |
Mr. D. P. Sreenivas |
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Designation : |
Executive Director |
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Age : |
37 Years |
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Qualification : |
Bachelor of Commerce from S V University |
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Name : |
Mr. V. P. Singh |
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Designation : |
Director |
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Name : |
Ms. Mahita Caddell |
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Designation : |
Director |
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Name : |
Mr. K. S. Sarma |
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Designation : |
Additional Director |
KEY EXECUTIVES
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Name : |
Mr. A. Narendra |
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Designation : |
Company Secretary |
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Email: |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 31.03.2007
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoters |
3543646 |
27.26 |
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Mutual Funds and IFI’s |
4700 |
0.03 |
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FII’s |
800000 |
6.15 |
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Private Bodies Corporate |
3102326 |
23.86 |
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Public |
5220859 |
40.16 |
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NRI’s |
329789 |
2.54 |
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Total |
13001320 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Subject Provides IT Services As Technical Suppport Outsourcing, Forte
(UDS) Migration, and Professional Consulting Services. |
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Products with ITC Code : |
Computer Software – 85249009.10 |
GENERAL
INFORMATION
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Customers : |
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No. of Employees : |
Around 215 (Domestic – 153 and Overseas – 62) |
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Bankers : |
Not Divulge |
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Facilities : |
Secured Loan
Unsecured Loan
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
P. Murali and Company Chartered Accountants |
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Address : |
# 6-3-655/ 2/ 3, Somajiguda, Hyderabad 500 082, Andhra Pradesh, India |
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Subsidiaries : |
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CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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5,00,00,000 |
Equity Shares |
Rs. 10/- each |
Rs. 500.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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1,30,01,320 |
Equity Shres |
Rs. 10/- each |
Rs. 130.013 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 |
130.013 |
111.013 |
108.400 |
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2] Share Application Money |
0.000 |
3.090 |
0.000 |
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3] Share Warrents |
11.340 |
0.000 |
0.000 |
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4] Reserves & Surplus |
211.275 |
120.711 |
102.300 |
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5] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
352.628 |
234.814 |
210.700 |
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LOAN FUNDS |
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1] Secured Loans |
29.540 |
43.316 |
60.600 |
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2] Unsecured Loans |
46.200 |
20.000 |
0.000 |
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TOTAL BORROWING |
75.740 |
63.316 |
60.600 |
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DEFERRED TAX LIABILITIES |
1.564 |
5.504 |
0.000 |
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TOTAL |
429.932 |
303.634 |
271.300 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
158.431 |
137.294 |
178.900 |
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Capital work-in-progress |
89.392 |
0.129 |
0.000 |
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INVESTMENT |
88.288 |
57.663 |
20.500 |
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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
|
0.000 |
0.000 |
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Sundry Debtors |
227.944
|
164.556 |
78.700 |
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Cash & Bank Balances |
17.256
|
24.840 |
64.800 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
20.133
|
12.908 |
20.100 |
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Total
Current Assets |
265.333
|
202.304 |
163.600 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
168.783
|
142.452 |
103.300 |
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Provisions |
2.729
|
1.972 |
0.800 |
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Total
Current Liabilities |
171.512
|
144.424 |
104.100 |
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Net Current Assets |
93.821
|
57.880 |
59.500 |
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MISCELLANEOUS EXPENSES |
0.000 |
42.683 |
12.400 |
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Deficit as per Annexed Account |
0.000 |
7.985 |
0.000 |
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TOTAL |
429.932 |
303.634 |
271.300 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Software Development |
410.348 |
349.047 |
412.200 |
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Other Income |
6.218 |
12.130 |
3.500 |
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Total Income |
416.566 |
361.177 |
415.700 |
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Profit/(Loss) Before Tax |
73.177 |
6.885 |
12.700 |
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Provision for Taxation |
(2.304) |
(2.143) |
(3.500) |
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Profit/(Loss) After Tax |
75.481 |
9.028 |
16.200 |
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Earnings in Foreign Currency : |
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Other Earnings |
43.004 |
34.998 |
NA |
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Total Earnings |
43.004 |
34.998 |
NA |
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Expenditures : |
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Manufacturing Expenses |
0.000 |
0.000 |
80.300 |
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Administrative Expenses |
82.474 |
115.318 |
51.600 |
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Managerial Remuneration |
240.234 |
214.114 |
249.600 |
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Financial Charges |
4.015 |
8.528 |
8.500 |
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Power & Fuel |
0.000 |
0.000 |
0.700 |
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Depreciation & Amortization |
16.665 |
16.332 |
15.800 |
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Other Expenditure |
0.000 |
0.000 |
8.700 |
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Total Expenditure |
343.388 |
354.292 |
415.200 |
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QUARTERLY RESULTS
|
Particulars |
30.06.2007 |
30.09.2007 |
31.12.2007 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
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Sales Turnover |
100.00 |
98.500 |
107.100 |
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Other Income |
3.500 |
3.500 |
1.800 |
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Total
Income |
103.500 |
102.000 |
108.900 |
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Total Expenditure |
76.400 |
76.200 |
79.100 |
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Operating Profit |
27.100 |
25.800 |
29.800 |
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Interest |
0.600 |
0.700 |
1.100 |
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Gross Profit |
26.500 |
35.100 |
28.700 |
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Depreciation |
4.000 |
4.300 |
4.200 |
|
Tax |
0.200 |
(0.600) |
(0.500) |
|
Reported PAT |
23.300 |
21.400 |
25.000 |
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt Equity Ratio |
0.25 |
0.29 |
0.31 |
|
Long Term Debt
Equity Ratio |
0.22 |
0.29 |
0.31 |
|
Current Ratio |
1.33 |
1.42 |
1.35 |
|
TURNOVER RATIOS |
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Fixed Assets |
1.61 |
1.43 |
2.00 |
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Inventory |
0.00 |
0.00 |
0.00 |
|
Debtors |
2.09 |
2.87 |
3.50 |
|
Interest Cover
Ratio |
19.93 |
1.42 |
2.24 |
|
Operating Profit
Margin (%) |
23.50 |
8.14 |
8.44 |
|
Profit Before
Interest and Tax Margin (%) |
19.42 |
3.47 |
4.61 |
|
Cash Profit
Margin (%) |
23.08 |
6.33 |
7.23 |
|
Adjusted Net Profit
Margin (%) |
19.01 |
1.66 |
3.40 |
|
Return on Capital
Employed (%) |
23.82 |
4.61 |
7.40 |
|
Return on Net
Worth (%) |
27.23 |
2.54 |
6.38 |
LOCAL AGENCY
FURTHER INFORMATION
Review of
Operations
During the period, the Company has registered revenue of Rs.410.350 Millions as
against Rs. 349.050 Millions for the previous financial year registering 18%
growth, resulting in a Net Profit of Rs.77.940 Million as against Rs.6.360
Million registering 8 fold growth in net profit.
Outlook
Company's existing business of tech support and F2J is expected to grow
steadily. The new initiative of implementation of Business Intelligence has
huge opportunity in Asia-Pac region and should emerge a significant contributor
to revenues. Company is in advanced stage of setting up IPTV and Media
(Restoration and Colorization) infrastructure. Both these businesses have
tremendous potential and are expected to become the major revenue contributors
for the company.
Management
Discussion and Analysis
The financial year of the Company consist of 12 months ended as on 31st March
2007.
Industry Structure, Development and
Outlook.
The Indian IT-ITES industry (including domestic market) recorded an overall
growth of 30.7% as against a projected growth of 27%, clocking revenues of USD
39.6 billion in FY 2006-07 LIP from USD 30.3 billion in FY 2005-06. The
domestic segment grew by 23% to register revenues of USD 8.2 billion in FY
06-07 up from USD 6.7 million.
To leverage the company's strength and growing opportunities in IT and ITES
industry, the company plans to foray into business intelligence which is having
good business potential apart from the existing Software development and
Technical Support services.
Further the company has started implementation to two new business projects,
viz., IPTV and Digital Media Solutions. The company expects to start its IPTV
global and Indian operations during the year and has already, signed various
agreements with IPTV content providers. The Company is also in the process of
setting up of digital media business (Digitisation, restoration and
colourisation of movies). This project is also expected to be implemented
during the year and the revenues are expected to start to flow from 3rd qtr
2007.
Opportunities and Threats.
The existing business of Tech Support and Forte to Java migration continues to
be promising. The business of BI implementation is a huge opportunity in Asia
PAC region. IPTV and Colorization are also new businesses globally and both are
expected to become the major revenue contributors for the company.
Technological advancements are going to be major threats for the company
especially in new business of IPTV and Media although the company is currently
using globally patented technologies in these. Scarcity of talent and attrition
continues to be the major challenges.
Financial Performance
Capital Structure
The Authorized Share Capital of the Company is increased to Rs.500 million from
Rs.250 million of previous year as per the approval of the shareholders in the
121 Annual General Meeting.
During the year 1,900,000 equity shares of Rs.10/- each were allotted on
preferential basis for cash at a premium of Rs.11/- per share which resulted in
the increase of the subscribed and paid up capital to Rs. 130.013 millions as
on 31st March 2007. Company also allotted 5,400,000 Share Warrants at a price
of Rs.21/- per warrant on preferential basis to Summit Communications Private
Limited and Horizon Television Private Limited.
Each warrant is convertible into one Equity Share of Rs.10/- each. The
allottees paid Rs.2.10 per warrant as allotment money to the tune of Rs.11.34
million.
Reserves and Surplus
The Increase in Reserves and Surplus has been contributed by Rs.20.90 million
through Share Premium and Rs.77.94 million by profit for the year 2006-0
7.
Fixed Assets
The Fixed Assets during the year increased by Rs.3.75 million spent on
Vehicles, Computers, Office Equipment and Furniture and Electrical Installations.
Software design, development and testing tools to the tune of Rs.42.68 million
were shown as intangible assets and Rs.8.54 million were written off during the
year.
Investments
During the year 2004-05 Company has acquired Staytop Systems Inc, for a total
consideration of Rs.92.66 million, up to financial year 2005-06 company has
paid Rs.57.66 million and Rs.30.63 million has been paid during the year
2006-07, which resulted in increase of investments.
Sundry Debtors
Sundry Debtors balance as on 31st March 2007 is increased by Rs.63.39 million
(38.52%) compared to that of 31st March 2006. The increase is due to the
increase in operations and retention of performance guarantee value over the
invoice. Provision to the tune of Rs.0.93 million was made during the year for
the doubtful debts, the balance in the sundry debtors is considered good and
recoverable.
Outlook for the year 2007-08
For the financial year 2007-08 income from software services is expected to
grow around 35% to 40%, accordingly revenue is expected to be in the slabs of
Rs.660 million to Rs.700 million.
During the Financial year 2007-08 the company is venturing into IPTV and
Digital Media operations. These new divisions expect to generate revenue from
the middle of the financial year, the company is of the expectation IPTV will
yield a revenue of Rs.100 Million and Digital Media will contribute Rs.50
million additionally for the financial year 2007-08.
Secured Loans:
Vehicle Loans of Rs. 3.521 millions are secured by way of
hypothecation of the said vehicles.
Fixed Assets
- Land
- Building
- Leasehold
Improvements
- Plant and
Machinery
- Furniture and
Fixtures
- Electrical
Installation
- Vehicles
- Computer
Systems
- Electronic
Equipments
- Office
Equipments
- Software
Tools
AS PER WEB:
Profile
Subject is a mid-sized, publicly-traded IT services company operating in
the US, Europe, Japan and India. They provide services Technical Support
Outsourcing, Forte (UDS) Migration, and Professional Consulting Services. With a
focus and passion for excellence, Goldstone Technologies has earned its mark as
a global service provider. They attract the best talent in the industry and
deliver the best to their clients.
Subject’s rapid rise as a preferred IT services vendor for companies around the
world, stems from a simple obsession – ‘Customer Delight’. It is the philosophy
that radiates through their world-class facilities, their reliable outsourcing
processes and their talent pool of professionals. Satisfied clients testify to Goldstone’s
remarkable flexibility in meeting their changing needs, while consistently
delivering high-class service. Their long-standing partnerships with leading
technology firms are an indicator of their success. Some of their key
relationships are – IBM, Microsoft, BEA, Oracle, Business Objects, Axway, and
TIBCO.
Subject has been ISO 9001:2000 certified since 2000 – a hallmark to their
profound commitment to Quality and Business Excellence. Goldstone is in the
advanced stages of SCP certification to offer world-class services for
Technical Support Outsourcing.
Global Partners
- Sun
Microsystems
- BEA
- Axway – A
Sopra Group Company
- IBM
- Oracle
- Informatica
- TIBCO
- Business
Objects
- Microsoft
- GCA Pass
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals have
been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.41.68 |
|
UK Pound |
1 |
Rs.81.23 |
|
Euro |
1 |
Rs.64.13 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
|
63 |
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 |
|