MIRA INFORM REPORT

 

 

Report Date :

29.04.2011

 

IDENTIFICATION DETAILS

 

Name :

CONVERGENT COMMUNICATIONS (INDIA) PRIVATE LIMITED

 

 

Registered Office :

1305, 12th Main Judicial Layout GKVK Post, Yelahanka, Bangalore – 560065, Karnataka

 

 

Country :

India

 

 

Financials (as on) :

31.03.2009

 

 

Date of Incorporation :

11.12.1998

 

 

Com. Reg. No.:

08-024513

 

 

CIN No.:

[Company Identification No.]

U72200KA1998PTC024513

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

BLRC01401B

 

 

Legal Form :

Private Limited Liability Company  

 

 

Line of Business :

Trader of networking products

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (49)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 480000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments.

 

The company can be considered normal for business dealings at usual trade terms and conditions.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – April 1, 2010

 

Country Name

Previous Rating

(31.12.2009)

Current Rating

(01.04.2010)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

INFORMATION PARTED BY

 

Name :

Mr. Anil Gupta

Designation :

Director

Contact No.:

91-80-28564227

 

 

LOCATIONS

 

Registered Office/ Branches :

1305, 12th Main Judicial Layout GKVK Post, Yelahanka, Bangalore – 560065, Karnataka, India

Tel. No.:

91-80-28564227/28462972/73

Fax No.:

91-80-28564275

E-Mail :

mktg@convergentindia.com

venkat@convergentinida.com

Website :

www.convergentindia.com

Area :

1000 sq.ft (approximately)

Location :

Owned

 

 

Corporate Office :

Unit 108 Off Bull Temple Road, Gavipuram, Guttahalli, Bangalore – 560019, Karnataka, India

Tel. No.:

91-80-26612973

 

 

Branches :

Located at:

·         Mumbai

·         Pune

·         New Delhi

·         Kolkata

·         Hyderabad

 

 

Overseas Office :

Regd. Office : #1, North Bridge Road, #19-04/05, High Street Centre - 179 094, Singapore

Tel. No.:

63372472/63372473/63372475

Fax No.:

63374070

E-Mail :

mktg@convergentindia.com

 

 

DIRECTORS

 

As On 29.09.2010

 

Name :

Mr. Herga Venkataramana Kedlaya

Designation :

Managing Director

Address :

No. 71, Jaladarshini Layout, New BEL Road, Bangalore – 560094, Karnataka, India

Date of Birth/Age :

17.01.1952

Date of Appointment :

11.12.1998

DIN No. :

00112362

 

 

Name :

Mr. Anil Gupta

Designation :

Director

Address :

62/2, Palm Meadoew, White Field, Airport Road, Bangalore – 560071, Karnataka, India

Date of Birth/Age :

28.09.1962

Date of Appointment :

11.12.1998

DIN No. :

00101079

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As On 29.09.2010

 

Names of Shareholders

 

No. of Shares

Kedlaya Venkataramana Herga

 

479956

Anil Gupta

 

330024

AnilKumar Trikannad

 

90020

Dinesh Puri

 

42575

 

 

 

Total

 

942575

 

As On 29.09.2010

 

Category

Percentage

 

 

Directors or relatives of Directors

100.00

 

 

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Trader of networking products

 

 

Products :

Item Code No.

Product Description

8517

Net Working Products

Nil

Network Integration AMC

 

 

Agencies Held :
  • CISCO Systems
  • Lucent Technologies
  • MROTEK

 

 

Terms :

 

Selling :

Cash, Credit: 30/60/90 Days

 

 

Purchasing :

Cash, Credit: 30/60/90 Days

 

 

GENERAL INFORMATION

 

Customers :
  • End Users and OEM’s
  • Corporates
  • Financial Institutions

·         Stock Exchanges

 

 

No. of Employees :

150 (approximately)

 

 

Bankers :
  • Corporation Bank – IFB, Bangalore, Karnataka, India

 

 

Facilities :

 

Secured Loans

31.03.2009 (Rs. In Millions)

31.03.2008 (Rs. In Millions)

Cash Credit with corporation Bank, IFB Bangalore (secured against hypothecation of stocks and receivables)

8.051

14.030

Total

8.051

14.030

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

S. Krisnaswamy and Company

Chartered Accountant

Address :

14, Lakshmi Buildings, J.C Road, Bangalore – 560002, Karnataka, India

Pan No.:

AAYFS5079B

 

 

Associates/Subsidiaries :
  • Daybegins Engineering Innovations Private Limited

 

·         Convergent Communications Singapore PTE Limited

 

 

CAPITAL STRUCTURE

 

As On 31.03.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

1000000

Equity Shares

Rs. 10/- each

Rs. 10.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

942575

Equity Shares

Rs. 10/- each

Rs. 9.426 Millions

 

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

 

 

SOURCES OF FUNDS

 

31.03.2009

31.03.2008

31.03.2007

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

9.426

9.426

9.426

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

111.632

96.106

62.536

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

121.058

105.532

71.962

LOAN FUNDS

 

 

 

1] Secured Loans

8.051

14.030

3.887

2] Unsecured Loans

0.000

0.000

0.000

TOTAL BORROWING

8.051

14.030

3.887

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

129.109

119.562

75.849

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

40.998

24.829

21.450

Capital work-in-progress

0.000

0.000

0.000

 

 

 

 

INVESTMENT

41.900

47.637

35.178

DEFERREX TAX ASSETS

1.607

1.936

1.575

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
8.503

17.271

11.614

 

Sundry Debtors
58.816

49.090

22.356

 

Cash & Bank Balances
3.082

6.308

7.295

 

Other Current Assets
0.000

0.000

0.000

 

Loans & Advances
32.816

22.786

20.393

Total Current Assets
103.217

95.455

61.658

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors

14.405

24.731

16.310

 

Other Current Liabilities
33.723

8.748

16.160

 

Provisions
10.485

16.816

11.542

Total Current Liabilities
58.613

50.295

44.012

Net Current Assets
44.604

45.160

17.646

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

129.109

119.562

75.849

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2009

31.03.2008

31.03.2007

 

SALES

 

 

 

 

 

Income

206.622

284.411

218.891

 

 

Other Income

 

 

 

 

 

TOTAL                                     (A)

206.622

284.411

218.891

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Office Expenses

 

 

 

Administrative Expenses

168.829

225.766

180.983

 

 

Advertising Expenses

 

 

 

 

 

TOTAL                                     (B)

168.829

225.766

180.983

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

37.793

58.645

37.908

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

0.414

0.389

0.387

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

37.379

58.256

37.521

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

7.180

8.232

6.759

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

30.199

50.024

30.762

 

 

 

 

 

Less

TAX                                                                  (I)

10.814

16.455

11.290

 

 

 

 

 

 

PROFIT AFTER TAX (G-I)                                  (J)

19.385

33.569

19.472

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Dividend

NA

NA

0.942

 

BALANCE CARRIED TO THE B/S

111.632

96.106

62.536

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

27.263

62.356

29.362

 

TOTAL IMPORTS

27.263

62.356

29.362

 

 

 

 

 

 

Earnings Per Share (Rs.)

20.57

35.62

NA

 

 

 

Particulars

 

 

 

31.03.2010

Sales Turnover

 

 

250.000 (approximately)

 

 

 

 

 

Expected Sales (2010-2011) : Rs. 300.000 Millions

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2009

31.03.2008

31.03.2007

PAT / Total Income

(%)
9.38

11.80

8.90

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
20.94

41.59

37.01

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.25

0.47

0.43

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
0.55

0.61

0.67

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
1.76

1.90

1.40

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

NOTE :

 

The registered office address of the company has been shifted from No. 108, Gavipuram, Guttahalli, Off Bull Temple Road, Bangalore – 560019, Karnataka, India to present w.e.f. 01.08.2010

 

BACKGROUND:

 

Subject was incorporated on 11.12.1998. The company is primarily engaged in the business of trading in networking products in India and the SAARC countries.

 

TRADE REFERENCES:

 

  • OTC Exchange of India Limited
  • Hindustan Petroleum Corporation Limited
  • L and T – IT Limited

 

 

PERFORMANCE DURING THE YEAR 2008-2009

 

The company has successfully changed its revenue model focusing more on service revenue segment.

 

The revenue from service segment has substantially contributed to the total revenue of the company.

 

FIXED ASSETS:

 

·         Plant and machinery / Test Equipment

·         Building

·         Leasehold Improvements

·         Furniture and fittings

·         Office equipments

·         Computers

·         Demo equipment

·         Wi-Fi equipment

·         Vehicles

·         Admin software

 

As per website details

 

Profile:

 

Subject is an ISO 9001:2008 certified company. It was established in 1998. Since then, they have been catering to the ever-increasing demand of quality network communication products and solutions in India and ASEAN countries. They not only offer the best technology for connectivity, but also provide real time data, voice and video communications solutions. Today they are a total networking solutions company.


They started as business partner of Motorola Multi service Networking Division for India and SAARC countries. Now they are business partner of Motorola's Vanguard Managed Solutions (VMS) for India and ASEAN countries. Besides VMS, they have teamed up as technology partners with CISCO Systems, MRO-TEK, Hughes, Proxim, TATA Telecom, Avaya, Patton Electronics and Zoom Telephonics.

 
They are headquartered in Bangalore, the Silicon Valley of India. In the last Nine years, they have spread there wings and opened offices in all major cities across the country, besides support locations manned by Convergent engineers in more than 26 locations and they are covering more locations. They provide support for there customers through regional offices at Bangalore, Mumbai, Delhi, Hyderabad, Kolkata and Chennai. They also cater to there customers through there website, www.convergentindia.com. Besides, They have tied up with System integrators, Service providers and Regional business partners, thus providing customers with a single point solution for hardware, media, network management support and service. They have a subsidiary office in Singapore to cater to the Asia Pacific partners' requirements.


Besides Wide Area Networking, they also specialize in Wireless Networking. They offer wireless services comprising; solutions and product development. As part of solutions they offer Wireless Local Area Networks (LAN) and Wireless Metropolitan Area Networks (MAN). They have a strong development and network design group, which enable us to provide total, cost-effective solutions for enterprise-wide data / voice / video connectivity. They also provide consultancy services in designing and developing customer specific RF products and connectivity solutions.


There Telecom-Consulting Group takes care of the regulatory aspects of the network and ensures that network approval takes the shortest possible time.


There full-fledged Repair Center in Bangalore eliminates the need to send products out of the country, thus saving considerable time and money. Besides, they offer several products for on-going support and services like Comprehensive Maintenance, Carry In Maintenance and On-Site support. 


From time to time they conduct networking training programs, through which, they share there rich experience in various topics of communications and networking. 


To maximize the benefits of the network (LAN/WAN) and www (world wide web), there eSolutions group develops software and web based solutions to meet the both software, and Web needs. Due to there vast experience in networking there eSolutions group also possesses expertise in developing networking solutions.


The new millennium is the age of convergence. At Convergent Communications, they converge with you to get the best of the Net.

 

 

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. 44.33

UK Pound

1

Rs. 74.13

Euro

1

Rs. 65.78

 

 

 

 

 

 

 

 

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

5

--RESERVES

1~10

6

--CREDIT LINES

1~10

5

--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

 

49

 

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

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

-

NB

                                       New Business

-

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.