MIRA
INFORM REPORT
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Report Date : |
02.09.2008 |
IDENTIFICATION
DETAILS
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Name : |
SMS COUNTRY NETWORKS PRIVATE LIMITED |
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Registered Office : |
408, Aditya Trade Centre, Ameer Pet, Hyderabad-500038, 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 : |
10.06.2005 |
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Com. Reg. No.: |
46512 |
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CIN No.: [Company
Identification No.] |
U72400AP2005PTC046512 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
HYDS13313G |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Providers of Bulk SMS Text Messaging Services |
RATING &
COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 1500 |
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Status : |
Moderate |
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Payment Behaviour : |
Unknown |
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Litigation : |
Clear |
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Comments : |
Subject is in the initial stage of operations. Mr. Mohan of the company denied business and financial details.
However, summarized P and L A/C may be sent soon. No payment records are available. Initially, the company can be
considered for small to mediocre business dealings at usual trade terms and conditions. |
INFORMATION
DECLLINED BY
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Name : |
Mr. Mohan |
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Date : |
04.07.2008 |
LOCATIONS
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Registered Office : |
408, Aditya Trade Centre, Ameer Pet, Hyderabad-500038, Andhra Pradesh
India |
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Tel. No.: |
91-40-66254296/ 97 1-646-217-4926 (USA) |
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Fax No.: |
91-40-40034403 |
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E-Mail : |
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Regional Office : |
Hong Kong SMS Country Networks (HK) Limited 7/F, Hong Kong Trade Centre, 161-167 Des Voveux Road, Central, Hong
Kong |
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Tel. No.: |
852-60-262-470 852-67-671-697 |
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Regional Office : |
U.A.E SMS Country Networks FZE, P.O. Box- 49160, Harmriyah Free Zone,
Sharjah, United Arab Emirates |
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Tel. No.: |
971-50-425-3284 971-50-156-1627 |
DIRECTORS
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Name : |
Mr. Yerramsetti Sayta Kalyan |
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Designation : |
Director |
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Address : |
Flat No. 101, Sarada Apartments-II, Naveen Nagar, Banjara Hills,
Hyderabad-500034, India |
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Date of Birth/Age : |
30.10.1974 |
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Date of Appointment : |
10.06.2005 |
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Name : |
Mr. Yerramestti Ravindra Kumar |
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Designation : |
Director |
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Address : |
Flat No. 206, Datta Sai Towers, Ranga Raju Lane, Banjara Hills,
Hyderabad-500034, India |
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Date of Birth/Age : |
14.07.1976 |
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Date of Appointment : |
10.06.2005 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 31.03.2007
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Names of Shareholders |
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No. of Shares |
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Y. Satya Kalyan |
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5000 |
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Y. Ravindra Kumar |
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5000 |
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Total |
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10000 |
Equity Share Breakup (Percentage of Total Equity)
As on 30.09.2007
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Category |
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Percentage |
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Directors or relatives of directors |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Providers of Bulk SMS Text Messaging Services |
GENERAL
INFORMATION
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Bankers : |
ICICI Bank |
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Banking
Relations : |
Unknown |
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Auditors : |
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Name : |
I. Eswara Rao Chartered Accountants |
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Address : |
G.F.-D, Manasa Apartments, Paidaiah Street, Labbipet,
Vijayawada-520010, Andhra Pradesh, India |
CAPITAL STRUCTURE
As on 08.09.2007
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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10000 |
Equity Shares |
Rs. 10/- each |
Rs. 0.100 Million |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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10000 |
Equity Shares |
Rs. 10/- each |
Rs. 0.100 Million |
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FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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0.100 |
0.100 |
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2] Share Application Money |
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0.105 |
0.105 |
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3] Reserves & Surplus |
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0.098 |
0.104 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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0.303 |
0.309 |
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LOAN FUNDS |
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1] Secured Loans |
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0.476 |
0.691 |
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2] Unsecured Loans |
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0.966 |
0.000 |
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TOTAL BORROWING |
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1.442 |
0.691 |
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DEFERRED TAX LIABILITIES |
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0.014 |
0.021 |
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TOTAL |
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1.759 |
1.021 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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1.117 |
0.933 |
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Capital work-in-progress |
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0.000 |
0.000 |
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INVESTMENT |
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0.000 |
0.000 |
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DEFERREX TAX ASSETS |
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0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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0.000 |
0.000 |
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Sundry Debtors |
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0.000 |
0.000 |
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Cash & Bank Balances |
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0.283 |
0.004 |
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Other Current Assets |
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2.134 |
0.562 |
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Loans & Advances |
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0.000 |
0.000 |
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Total
Current Assets |
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2.417 |
0.566 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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1.775 |
0.478 |
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Provisions |
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0.000 |
0.000 |
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Total
Current Liabilities |
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1.775 |
0.478 |
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Net Current Assets |
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0.642 |
0.088 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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1.759 |
1.021 |
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KEY RATIOS
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PARTICULARS |
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31.03.2007 |
31.03.2006 |
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Debt Equity Ratio (Total Liability/Networth) |
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10.62 |
3.78 |
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Current Ratio (Current Asset/Current Liability) |
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1.36 |
1.18 |
LOCAL AGENCY
FURTHER INFORMATION
As Per Website:
Overview
Subject is among the leaders in the Application 2
Mobile - Short Messaging Service (SMS) domain. They deliver SMS to about 550 networks in over 200+ countries.
Their SMS Gateway is designed to integrate seamlessly into any existing
software system, application or web-site.
Subject has been in business for the past 5 years
and have over 500,000 registered online users and over 2000 enterprises using
their tools and services. The company has an industry standard infrastructure
and a dedicated support team to ensure 24 x 7 hassle free services to all its
customers. They have physical presence (offices and local staff) in India, UAE
and Hong Kong.
Subject caters to the market segment who wish to
send SMS from an internet connected PC (Internet to Person - I2P) or any
software application (Application to Person - A2P). These could include –
- Individuals or Retail consumers
- Enterprises or Corporate consumers
- Software / Internet Applications
The ease of use, ease of integration, zero start-up
costs, feed-back through delivery reports, customized bulk push etc are
features that benefit their users immensely.
Most of the retail customers use Subject's website
to compose and send SMS. They can also use their custom plug-ins, certified by
Microsoft, to extend the capabilities of their desktop applications like MS
Excel and MS Outlook to send SMS. For example, a stock broker can use the Excel
plug-in to push stock alerts to all his registered customers.
Majority of their corporate customers use the API
exposed by Subject for their business needs without investing in any expensive
hardware or software. For example, a Cement manufacturer was using expensive
tracking equipment to ensure that his shipments were reaching the designated
resellers without any pilferage or diversion. This process did not keep the
designated resellers in the loop and the resulting improvements were not
significant. The manufacturer used the power of mobile phone penetration and
added the capability of sending SMS using the Subject Gateway and started
sending SMS notifications with all the shipment details to his resellers. This
proved to be a cheap and effective solution for his business need. The
manufacturer has now added the SMS notification module to all his plants across
India.
PRESS RELEASE
Friday , October 19, 2007 at 0033 hrs Hotmail rewrote the rules
of communication via the internet in 1997 by introducing free
personal email. Taking the cue, SMS Country Networks Pvt Ltd has launched a
free personal SMS service through its website www.160by2.com.
The name of the website explains how the service works. Out of the160
characters available for an SMS, users can send a message of up to 80
characters and advertisers can append a contextual advertisement in the
remaining 80 characters.
Sanyog Jain, chief operating officer, SMS Country, said in a telephonic
interview to FE that users opt to append an advertisement in their message and
in turn are allowed to send the SMS for free to any national number. Sending an
SMS through a website is simpler than typing it using a mobile phone, he added.
Moreover, from a business point of view, advertisements sent on mobile
phones from known persons have better impact on the target audience than any
other traditional medium, he asserted.
The Hyderabad-based company is a bulk SMS provider to business houses.
Its services include sending alerts and product profiles to customers on mobile
phones. SMS Country offers its services across 200 countries over 250 networks,
Sanyog said.
Launched in May this year, 160by2 has about 50,000 registered users at
present, and sends out about a million messages a month, he said. The service
got publicised only by word of mouth, he added.
The company has 10 national brands including McDonalds, Dominoes, and
Cadbury's as clients, and is in talks with several regional players such as
showrooms and restaurants to run campaigns for the festive season, Sanyog said.
As an extension to their services, SMS Country is in talks with national
telecom service providers including Airtel and Idea, to offer mobile-to-mobile
free SMS on the same 160-character format, he said. Moreover, the service can
be offered from third party websites also on a revenue sharing model, he added.
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.44.21 |
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UK Pound |
1 |
Rs.79.76 |
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Euro |
1 |
Rs.64.72 |
SCORE & RATING
EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
4 |
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PAID-UP CAPITAL |
1~10 |
3 |
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OPERATING SCALE |
1~10 |
3 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
3 |
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--PROFITABILIRY |
1~10 |
3 |
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--LIQUIDITY |
1~10 |
3 |
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--LEVERAGE |
1~10 |
3 |
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--RESERVES |
1~10 |
3 |
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--CREDIT LINES |
1~10 |
3 |
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--MARGINS |
-5~5 |
-- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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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 |
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28 |
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
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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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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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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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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