MIRA
INFORM REPORT
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Report Date : |
06.11.2008 |
IDENTIFICATION
DETAILS
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Name : |
FIDELITY BUSINESS SERVICES INDIA PRIVATE LIMITED |
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Formerly Known As : |
Fidelity information systems company India private
limited |
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Registered Office : |
84-E, C - 6 Street (Off Central Avenue) Sainik Farms, New Delhi – 110
062 |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
17.05.2002 |
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Com. Reg. No.: |
55-115416 |
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CIN No.: [Company
Identification No.] |
U72200DL2002PTC115416 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BLRF00786C |
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PAN No.: [Permanent
Account No.] |
AAACF6175E |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Provider of business services to Fidelity Mutual Funds in India |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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Maximum Credit Limit : |
USD 19000000 |
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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 business services providers to Fidelity
Mutual Fund. Available information indicates high financial responsibility of
the company. Financial position of the company is strong. Trade relations are
fair. Payments are correct and as per commitments. The company can be considered good for any large commitments at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
84-E, C - 6 Street (Off Central Avenue) Sainik Farms, New Delhi – 110
062, India |
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Tel. No.: |
91-11-29552714 |
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Fax No.: |
91-11-29552717 |
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E-Mail : |
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Websites: |
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Corporate Office : |
Pine Hurst, Embassy Golf Links Business Park, Bangalore – 560 071,
Karnataka, India |
DIRECTORS
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Name : |
Mr. Kieran Nolan |
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Designation : |
Director |
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Address : |
11/1, 11/2, 11/3, Kempapura Main Road, Kempapura Village, Bangalore,
Karnataka, India |
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Date of Birth/Age : |
18.08.1951 |
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Date of Appointment : |
14.05.2005 |
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Date of Ceasing : |
01.10.2006 |
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Name : |
Mr. Surinder Singh |
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Designation : |
Director |
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Address : |
Martello Boulevard 6 Museum Road, Off MG Road, Bangalore – 560 001,
Karnataka, India |
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Date of Birth/Age : |
31.10.1945 |
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Date of Appointment : |
01.12.2005 |
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Name : |
Mr. Yash Pal Syngal |
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Designation : |
Director |
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Address : |
R -05- A Windsor Courts, DLF Phase – IV, Gurgaon – 122 009, Haryana,
India |
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Date of Birth/Age : |
01.03.1962 |
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Date of Appointment : |
14.08.2006 |
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Name : |
Mr. Caron McDonald |
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Designation : |
Director |
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Address : |
29 Strafford Lane Bedford New Hampshire - 03110 |
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Date of Birth/Age : |
08.03.1955 |
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Date of Appointment : |
07.09.2006 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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FID Holdings (Mauritius) Limited |
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17428 |
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Fidelity India Shared Services Partnership |
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1 |
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Fidelity International Limited |
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4000 |
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Fidelity International Services Limited |
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1 |
Equity Share Breakup (Percentage of total Equity)
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Category (As on
30.09.2007):- |
Percentage |
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Foreign holdings (Foreign institutional investor(s)s, Foreign Companie(s) Foreign Financial institution(s), Non resident Indian(s) or Overseas or others |
100.00 |
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Total
|
100.00 |
BUSINESS DETAILS
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Line of Business : |
Provider of business services to Fidelity Mutual Funds in India |
GENERAL
INFORMATION
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No. of Employees : |
Around 1500 |
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Bankers : |
Not Divulged |
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Banking Relations
: |
---- |
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Auditors : |
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Name : |
Price Waterhouse Chartered Accountants |
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Address : |
The Millennia, Tower D, 6th Floor, 1 And 2 Murphy Road,
Karnataka – 560 008, Bangalore, India |
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Holding Company: |
· FID Holdings (Mauritius) Limited, Mauritius (FID) · Fidelity India Shares Services Partnership, Bermuda · Summer Street Netherlands Holdings BV, The Netherlands. · Water Street International Holdings private Limited, India · Water Street Holdings, BV, The Netherlands · Fidelity Investments Systems India Inc, USA. · Fidelity Management and Research Company, USA (FMRC) |
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Enterprises
Having Significant Influence |
Fidelity international
Limited, Bermuda (FIL) |
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Entities Where Key
Management Personnel Are Able To Exercise Significant Influence : |
· fidelity Business Services India Employees Superannuation Fund India (FBSIESF) · Fidelity India employees Matching Grant Fund, India (FIEMGF) |
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Associates/Subsidiaries : |
· Fidelity Employer Services Company LLC, USA (FESCO) · FISC Ireland Limited, Ireland (FISCIL) · Terra Nua Limited, Ireland · Fidelity Fund Management Private Limited, India (FFMPL) · Fidelity Investment management Limited, United kingdom (FIML) · COLT Technology Services India Private Limited, India · Fidelity Trustee Company Private Limited, India · Fidelity Management Trustee Company Private Limited (FMTC) · KVH System solutions Limited, Japan · Fidelity Investment Management (HK) Limited, Hong Kong (FIMHK) · HR Access Solutions SAS, France · Fidelity International Services Limited, Bermuda (FISL) · HR Access Fidelity GmbH, Germany · FTM Corp, USA |
CAPITAL STRUCTURE
(As on 31.03.2007)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
900000 |
Equity Shares |
Rs. 10/- each |
Rs. 9.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
21430 |
Equity Shares |
Rs. 10/- each |
Rs. 0.214
million |
Notes:
· 4001 (2006: NIL) shares are issued to the shareholders of Fidelity Technology India Private Limited on amalgamation/merger)
· Of the above shares, 17428 (2006: 14978) shares are held by FID Holdings (Mauritius) Limited, Mauritius, the holding company.
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 |
0.214 |
0.150 |
0.100 |
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2] Share Application Money |
0.000 |
0.040 |
0.000 |
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3] Reserves & Surplus |
3728.742 |
2079.689 |
403.292 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
3728.956 |
2079.879 |
403.392 |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
0.000 |
0.000 |
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2] Unsecured Loans |
0.000 |
0.000 |
175.131 |
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TOTAL BORROWING |
0.000 |
0.000 |
175.131 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
3728.956 |
2079.879 |
578.523 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
2920.424 |
1585.365 |
971.836 |
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Capital work-in-progress |
26.535 |
400.988 |
380.702 |
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INVESTMENT |
100.000 |
20.000 |
0.000 |
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DEFERREX TAX ASSETS |
207.229 |
62.640 |
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 |
958.812 |
460.147 |
182.015 |
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Cash & Bank Balances |
1379.753 |
1099.106 |
261.031 |
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Other Current Assets |
193.606 |
163.638 |
148.735 |
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Loans & Advances |
231.432 |
183.080 |
74.018 |
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Total
Current Assets |
2763.603 |
1905.971 |
665.799
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
2022.041 |
1761.181 |
1414.498 |
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Provisions |
266.794 |
133.904 |
25.316 |
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Total
Current Liabilities |
2288.835 |
1895.085 |
1439.814
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Net Current Assets |
474.768 |
10.886 |
774.015
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
3728.956 |
2079.879 |
578.523 |
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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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Sales Turnover |
9816.160 |
6079.649 |
2495.790 |
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Other Income |
49.252 |
26.174 |
28.613 |
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Total Income |
9865.412 |
6105.823 |
2524.403 |
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Profit/(Loss) Before Tax |
1165.143 |
791.335 |
316.657 |
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Provision for Taxation |
[67.410] |
3.959 |
16.165 |
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Profit/(Loss) After Tax |
1232.553 |
787.376 |
300.492 |
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Export Value |
9712.698 |
6048.075 |
2493.540 |
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Import Value |
764.809 |
274.088 |
Na |
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Expenditures : |
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Salaries, Wages, Bonus, etc. |
NA |
NA |
852.369 |
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Managerial Remuneration |
NA |
NA |
61.780 |
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Payment to Auditors |
NA |
NA |
2.862 |
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Insurance Expenses |
NA |
NA |
9.911 |
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Power & Fuel |
NA |
NA |
31.289 |
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Depreciation & Amortization |
887.941 |
496.181 |
NA |
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Other Expenditure |
7812.328 |
4818.307 |
1249.535 |
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Total Expenditure |
8700.269 |
5314.488 |
2207.746 |
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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 |
(%) |
12.49
|
12.89 |
11.90 |
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Net Profit Margin (PBT/Sales) |
(%) |
11.87
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13.01 |
12.68 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
19.36
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19.90 |
15.68 |
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Return on Investment (ROI) (PBT/Networth) |
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0.31
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0.38 |
0.78 |
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Debt Equity Ratio (Total Liability/Networth) |
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0.61
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0.91 |
4.00 |
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Current Ratio (Current Asset/Current Liability) |
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1.21
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1.01 |
0.46 |
LOCAL AGENCY
FURTHER INFORMATION
BUSINESS:-
The company provides business services to Fidelity Mutual Funds in India
It has large operations worldwide. In India, it may be employing over
1500 people.
Fixed assets:-
· Leasehold Improvements
· Computer Systems
· Computer Software
· Communication Equipments
· Office Equipment
· Furniture and fixtures
Other details:-
Year in Review:
The company has achieved turnover of Rs.
9816.160 millions for the year ended March 31, 2007. The profit before tax for
the said year amounted to Rs. 1165.143 millions. The company has enhanced its
scale of operations during the year by increasing its employee headcount from
4400 to 6450 during they ear ended March 31, 2007.
Merger of fidelity Technology India Private
Limited
The company had acquire the business of
fidelity Technology India private Limited (FTI) through a slump sale transaction
in November 2004 and sanctioning of the Scheme of Amalgamation of FTI with the
company (FBSI) was pending with High
Court of Delhi (Court). During the year the court passed the final order
sanctioning the scheme of Amalgamation. With this order the merger of FTI with
the company is complete. All necessary post amalgamation formalities have also
been completed.
Expansion of operations in Bangalores
As a part of its expansion plans, the company
set up an additional facility at Manyata, Bangalore during the year. The
Manyata office has capacity of about 2500 seats. The FMR IT division of the
company has moved from Pinehurst to Manyata Building. The Manyata facility was
set up ads a STP Unit.
Consolidation of Gurgaon operations.
The company had decided to consolidate its
operations at Gurgaon into one building in the year 05-06 and had accordingly
taken a new office space on lease at Unitech World, Tower – D, Gurgaon having
total capacity of 19230 Sq.Mtrs To consolidated its operations at one location.
During the year 06-07 the company has moved
its operation from Unitech World – Tower A, Centre Court and a21st Floor Offices to
Unitech World Tower D and in June 07 from DLF 9th Floor Office to
the Unitech World Tower – D. With this the entire operations of the company at
Gurgaon has been consolidated at one building.
Expansion of operations to the third city
As a part of expansion plans, the company has
expanded its operations to Chennai City. The operations from this city has
started in November’06 and as on March 31, 2007 had a headcount of 230. The
company has also obtained the Special Economic Zone unit approval for its
permanent site for Chennai operations and expects to start its Chennai SEZ
operations by December’07.
Websites details:-
Established nearly 40 years ago, FIL Limited operates in
markets outside the Americas. The company and its subsidiaries manage over
$260.9 billion* for major institutions and millions of investors around the
world.
In 2007, subject has won 245 awards
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.47.18 |
|
UK Pound |
1 |
Rs.75.05 |
|
Euro |
1 |
Rs.60.89 |
SCORE & RATING
EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
9 |
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PAID-UP CAPITAL |
1~10 |
9 |
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OPERATING SCALE |
1~10 |
9 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
8 |
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--PROFITABILIRY |
1~10 |
9 |
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--LIQUIDITY |
1~10 |
9 |
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--LEVERAGE |
1~10 |
9 |
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--RESERVES |
1~10 |
9 |
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--CREDIT LINES |
1~10 |
9 |
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--MARGINS |
-5~5 |
---- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
NO |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
NO |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
|
80 |
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 |
|