MIRA
INFORM REPORT
|
Report Date : |
29.04.2011 |
IDENTIFICATION DETAILS
|
Name : |
HCL INFOSYSTEMS LIMITED |
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Registered Office : |
806, Siddharth,
96, |
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Country : |
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Financials (as on) : |
30.06.2010 |
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Date of Incorporation : |
17.04.1986 |
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Com. Reg. No.: |
55 - 23955 |
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CIN No.: [Company
Identification No.] |
L72200DL1986PLC023955 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELH03832D |
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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 : |
Manufacturing of
Computer Systems and Computer Peripherals. |
RATING & COMMENTS
|
MIRA’s Rating : |
A (66) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 76800000 |
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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 a reputed company having fine track. Financial position of
the company appears to be sound. Trade relations are reported as fair.
Business is active. Payments are reported to be regular 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) |
|
|
A1 |
A1 |
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Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
|
Registered
Office : |
806, Siddharth,
96, |
|
Tel. No.: |
91-11-26444305 /
26464921 / 26489078 / 26418567-69/26430051 |
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Fax No.: |
91-11-26212687 |
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E-Mail : |
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Website : |
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Corporate Office
: |
E-4, 5 and 6, Sector XI, Noida - 201 301, |
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Tel. No.: |
91-120-2526490 /
2526518 / 19 / 2520977 |
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Fax No.: |
91-120-2525196 /
2550923 |
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E-Mail : |
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Branch Office
: |
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Plants : |
Chennai Works Unit - I 299, Tel. No. 91-44-24800156/24843566/24838316 Fax. No. 91-44-24834563 E-mail. pattabi@help.com/veera@help.com Unit - II Shed 5, 6, Tiru-vi-Ka Industrial Estate, Guindy, Chennai-600032, Tamil
Nadu Tel. No. 91-44-22342815/16/22340165 Fax. No. 91-44-22340161 E-mail. rs@help.com ·
R.S. No. 34/4 to 34/7 and part of 34/1, Sedarpet,
·
R.S. No. 105/4-5, Sedarpet, Pondicherry-605111 ·
R.S. No. 107/5,6,7, RS No. 108/10A, RS No : 110/3, 5,11,12 and R.S. No. 108/9
and 12, Sedarpet, Tel No.: 91-120-2520977 Fax No.: 91-120-2520977 ·
Plot No.77, 78 South Phase, Ambattur Industrial
Estate, Chennai-600058, Tel No: 91-44-26258444 / 2625 8292 / 2625
8969 Fax No: 91-44-2624 8160 Email : chnplant@hclp.com
·
Plot Nos.1,2, 27 and 28, Sector 5, 11E-Pantnagar,
Rudrapur, District Udham Singh Nagar,
Uttarakhand-263 145 ·
Spl-A2, Industrial Estate, Thattanchavadi, Industrial area, Tel. No. 91-413-2248284 / 2248284 /
2248587 /2248382 / 2249281 Fax. No. 91-413-2249586 E-mail. sridhar@help.com ·
Plot No. 1, ·
F - 214, G - 215, EPIP, Sitapura Industrial Area,
Jaipur, Rajasthan – 302022, |
DIRECTORS
As On 27.10.2010
|
Name : |
Mr. Ajai Chowdhry |
|
Designation : |
Chairman and Chief Executive Officer |
|
Date of
Birth/Age : |
56 Years |
|
Qualification
: |
Graduate in Electronic and Telecommunication Engineering, BE |
|
Experience : |
35 Years |
|
Date of
Appointment : |
01.03.1989 |
|
Previous
Employment : |
Far East Computers Pte Limited |
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|
|
|
Name : |
Mr. T. S.
Purushothaman |
|
Designation : |
Whole-time Director |
|
Date of
Birth/Age : |
65 Years |
|
Qualification
: |
Engineering from |
|
Experience : |
41 Years |
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|
Name : |
Mr. Rajinder Pal
Khosla |
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Designation : |
Director |
|
Date of
Birth/Age : |
74 Years |
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Qualification
: |
Graduate from |
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Experience : |
40 Years |
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|
Name : |
Mr. D. S. Puri |
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Designation : |
Director |
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Date of
Birth/Age : |
55 Years |
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Qualification
: |
Commerce Graduate – |
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Experience : |
32 Years |
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|
Name : |
Mr. E. A.
Kshirsagar |
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Designation : |
Director |
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Date of
Birth/Age : |
63 Years |
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Qualification
: |
Chartered Accountants |
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Experience : |
37 Years |
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|
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|
Name : |
Mrs. Anita
Ramachandran |
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Designation : |
Director |
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Date of
Birth/Age : |
49 Years |
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Qualification
: |
Management Graduate from Jamnalal Bajaj Institute |
|
Experience : |
25 Years |
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|
Name : |
Mr. V N Koura |
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Designation : |
Director |
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Date of Appointment : |
24.01.2006 |
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Name : |
Mr. S Bhattacharya |
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Designation : |
Director |
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Name : |
Mr. Nikhil Sinha |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Sushil Kumar
Jain |
|
Designation : |
Company Secretary |
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|
|
|
Name : |
Mr. Sandeep
Kanwar |
|
Designation : |
CFO and Executive Vice President |
|
Date of
Birth/Age : |
46 years |
|
Qualification
: |
F.C.A. |
|
Experience : |
24 years |
|
Date of
Appointment : |
01.03.1988 |
|
Previous
Employment : |
Oriental Carbon and Chemicals Limited, Accounts Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 05.04.2011
|
Category of Shareholder |
Total No. of
Shares |
Percentage of
Holding |
|
|
|
|
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(A) Shareholding of Promoter and
Promoter Group |
|
|
|
|
|
|
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|
440435 |
0.20 |
|
|
113836553 |
51.08 |
|
|
114276988 |
51.28 |
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|
0 |
0 |
|
Total shareholding of Promoter and Promoter Group (A) |
114276988 |
51.28 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
14562306 |
6.53 |
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|
4050621 |
1.82 |
|
|
69009582 |
30.96 |
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|
87622509 |
39.31 |
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|
|
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|
2619713 |
1.18 |
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|
16386407 |
7.35 |
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|
1336022 |
0.60 |
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|
637990 |
0.29 |
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|
567990 |
0.25 |
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|
70000 |
0.03 |
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|
20980132 |
9.41 |
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Total Public shareholding (B) |
108602641 |
48.73 |
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Total (A)+(B) |
222879629 |
100.00 |
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(C) Shares held by Custodians and against which
Depository Receipts have been issued |
0 |
0 |
|
Total (A)+(B)+(C) |
222879629 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs. 0.100 millions
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of Computer Systems and Computer Peripherals. |
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Products : |
Networking
Products ·
Hubs ·
Switches ·
Access
Products ·
Modules/converters Terminal Products ·
Turboterm ·
Graph
Term ·
Multilingual
Terminal Structured Cabling ·
Patch
Cord ·
Patch
Panel ·
Wall
Outlet Peripherals ·
Monitor ·
Keyboards ·
Multi
Media ·
Touch
Screen Monitor/Kiosks Generic Names of
Three Principal Products/Services of Company (As per monetary terms) are :
|
PRODUCTION STATUS (As On 30.06.2010)
|
Class of Goods |
Units |
Installed
Capacity |
Actual
Production |
|
Computers/Micro Processor Based Systems |
Nos. |
1230000 |
657964 |
|
Data Graphic/Display Monitor/Terminals, Hubs, etc |
Nos. |
846600 |
428258 |
GENERAL INFORMATION
|
Suppliers : |
· Shakhti Data Cables · Bajaj Printer and Packers |
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No. of Employees : |
6731 (Approximately) |
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Bankers : |
·
State
Bank of ·
Canara
Bank ·
Canara
Bank, ·
State
Bank of ·
Standard
Chartered Bank, ·
Societe
Generale, ·
ICICI
Bank Limited, ·
HDFC
Bank Limited, ·
The
Hongkong and Shanghai Banking Corporation Limited |
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Facilities : |
Note : 1. The Company
issued 800 Rated Taxable Secured Redeemable Non- Convertible Debentures of face
value of Rs.1.000 million each, aggregating to Rs. 800.000 millions, at a
coupon rate 12.75% per annum payable annually on private placement basis to
Life Insurance Corporation of 2. Cash Credits
along with non-fund based facilities from Banks are secured by way of
hypothecation of stock-in-trade, book debts as first charge and by way of
second charge on all the immovable and movable assets of the Company. The
charge ranks pari-passu amongst Bankers. 3. Term loan
from others is secured by way of first charge on identified IT and
Telecommunication assets. 4. Amount
payable within one year Rs 50.300 millions (2009 – Rs. 48.200 millions). 5. Short term
loan from Banks is secured by way of subservient charge on the current assets
of the Company.
Note : 1. Amount payable
within one year is Rs. 137.300 millions (2009 – Rs. Nil). |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Price Waterhouse Chartered Accountants |
|
Address : |
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Wholly Owned Subsidiaries : |
Ř
HCL Infinet Limited Ř
HCL Infocom Limited Ř
HCL Security Limited Ř
RMA Software Park Private Limited Ř
HCL Insys Pte. Limited |
|
|
|
|
Related Parties : |
Ř
HCL Technologies Limited Ř
HCL Comnet Limited Ř
HCL Comnet Systems and Services Limited Ř
Erstwhile HCL Peripherals Limited (Merged with
HCL Corporation Limited w.e.f. March 12, 2010) Ř
HCL BPO Services (NI) Limited Ř
HCL America Inc. Ř
HCL EAI Services Limited |
CAPITAL STRUCTURE
As On : 30.06.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
550,000,000 |
Equity Shares |
Rs. 2/- each |
Rs. 1100.000 millions |
|
500,000 |
Preference Shares |
Rs. 100/- each |
Rs. 50.000 millions |
|
|
Total |
|
Rs. 1150.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
218,258,502 |
Equity Shares |
Rs. 2/- each |
Rs. 436.500
millions |
|
|
|
|
|
Notes:
1. Paid up share
capital includes:
a) 5,04,47,295 (2009
- 5,04,47,295) Equity Shares of Rs. 2/- each issued pursuant to contract
without payment being received in cash.
b) 5,31,82,765
(2009 - 5,31,82,765) Equity Shares of Rs. 2/- each Bonus shares issued from
Securities Premium Account.
c) 1,16,29,425 (2009
- 1,15,84,715) Equity Shares of Rs. 2/- each issued pursuant to the exercise of
options granted under Employee Stock Option Scheme 2000.
d) 87,221 (2009 -
80,021) Equity Shares of Rs. 2/- each issued pursuant to the exercise of
options granted under Employee Stock Based Compensation Plan 2005.
2. Of the above
subscribed shares 9,08,79,984 (2009 - 7,58,79,734) Equity Shares of Rs. 2/-
each are held by HCL Corporation Limited.
As On : 27.10.2010
Authorised Capital : Rs.1150.000 millions
Issued, Subscribed & Paid-up Capital : Rs.
445.759 millions
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
30.06.2010 |
30.06.2009 |
30.06.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
436.500 |
342.400 |
342.300 |
|
|
2] Share Application Money |
176.700 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
18609.400 |
10981.200 |
9720.300 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
19222.600 |
11323.600 |
10062.600 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1520.200 |
1018.500 |
0.000 |
|
|
2] Unsecured Loans |
3579.100 |
1250.000 |
3526.600 |
|
|
TOTAL BORROWING |
5099.300 |
2268.500 |
3526.600 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
68.500 |
|
|
|
|
|
|
|
|
TOTAL |
24321.900 |
13592.100 |
13657.700 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1712.200 |
1506.300 |
1385.700 |
|
|
Capital work-in-progress |
256.900 |
95.000 |
138.900 |
|
|
|
|
|
|
|
|
INVESTMENT |
9111.900 |
2761.000 |
2150.200 |
|
|
DEFERREX TAX ASSETS |
89.400 |
40.800 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
8354.000
|
8882.600 |
8983.700 |
|
|
Sundry Debtors |
19569.200
|
14982.600 |
12414.600 |
|
|
Cash & Bank Balances |
2926.100
|
2029.900 |
3173.600 |
|
|
Other Current Assets |
2492.900
|
1023.500 |
922.600 |
|
|
Loans & Advances |
2827.100
|
1919.000 |
1399.400 |
|
Total
Current Assets |
36169.300
|
28837.600 |
26893.900 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
13970.500
|
11735.600 |
|
|
|
Other Current Liabilities |
7706.800
|
7094.100 |
16202.500 |
|
|
Provisions |
1340.500
|
818.900 |
708.500 |
|
Total
Current Liabilities |
23017.800
|
19648.600 |
16911.000 |
|
|
Net Current Assets |
13151.500
|
9189.000 |
9982.900 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
24321.900 |
13592.100 |
13657.700 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
30.06.2010 |
30.06.2009 |
30.06.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
119530.100 |
122107.300 |
122087.700 |
|
|
|
Other Income |
589.000 |
336.000 |
477.500 |
|
|
|
TOTAL (A) |
120119.100 |
122443.300 |
122565.200 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Sales and Services |
108696.300 |
111285.000 |
111669.500 |
|
|
|
Personnel |
3684.100 |
3259.800 |
2929.600 |
|
|
|
Administration, Selling, Distribution and others |
3334.000 |
3447.300 |
2867.200 |
|
|
|
Repair and Maintenance |
126.500 |
93.300 |
115.000 |
|
|
|
TOTAL (B) |
115840.900 |
118085.400 |
117581.300 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
4278.200 |
4357.900 |
4983.900 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
374.400 |
446.600 |
475.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
3903.800 |
3911.300 |
4508.200 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
217.300 |
172.700 |
163.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
3686.500 |
3738.600 |
4344.700 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
1071.000 |
1134.200 |
1297.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
2615.500 |
2604.400 |
3047.500 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
8013.400 |
7028.100 |
3980.600 |
|
|
|
|
|
|
|
|
|
Add / less |
Adjustments
due to scheme of arrangement -as
on July 1, 2008 |
0.000 |
5.500 |
0.000 |
|
|
|
Adjustment
as per scheme of arrangement |
0.000 |
(22.300) |
0.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
261.600 |
260.500 |
NA |
|
|
|
Debenture Redemption Reserve |
40.000 |
40.000 |
NA |
|
|
|
Proposed Dividend |
436.500 |
256.800 |
NA |
|
|
|
Corporate Dividend Tax on Proposed
Dividend |
72.500 |
43.600 |
NA |
|
|
|
Interim Dividend |
1270.800 |
855.900 |
NA |
|
|
|
Corporate Dividend Tax on Interim
Dividend |
214.300 |
145.500 |
NA |
|
|
BALANCE CARRIED
TO THE B/S |
8333.200 |
8013.400 |
7028.100 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
578.800 |
687.500 |
736.300 |
|
|
|
Commission Earnings |
15.300 |
6.500 |
1.400 |
|
|
|
Other Earnings |
437.800 |
260.500 |
240.200 |
|
|
TOTAL EARNINGS |
1031.900 |
954.500 |
977.900 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
13860.100 |
16340.900 |
16171.700 |
|
|
|
Stores & Spares |
462.400 |
360.100 |
455.100 |
|
|
|
Capital Goods |
00.200 |
2.000 |
2.300 |
|
|
|
Others |
4623.700 |
4505.600 |
3681.600 |
|
|
TOTAL IMPORTS |
21946.400 |
21208.600 |
20310.700 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
12.86 |
15.21 |
17.88 |
|
QUARTERLY RESULTS
(Rs.
In Millions)
|
PARTICULARS |
|
30.09.2010 |
31.12.2010 |
|
|
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
28667.100 |
30155.900 |
|
Total Expenditure |
|
27861.700 |
29222.600 |
|
PBIDT (Excl OI) |
|
805.400 |
933.300 |
|
Other Income |
|
194.700 |
185.000 |
|
Operating Profit |
|
1000.100 |
1118.300 |
|
Interest |
|
128.900 |
190.400 |
|
Exceptional Items |
|
0.000 |
0.000 |
|
PBDT |
|
871.200 |
927.900 |
|
Depreciation |
|
73.200 |
84.100 |
|
Profit Before Tax |
|
798.000 |
843.800 |
|
Tax |
|
257.000 |
233.700 |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
541.000 |
610.000 |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
541.000 |
610.000 |
KEY RATIOS
|
PARTICULARS |
|
30.06.2010 |
30.06.2009 |
30.06.2008 |
|
PAT / Total Income |
(%) |
2.18
|
2.13 |
2.49 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
3.08
|
3.06 |
3.56 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
9.71
|
12.32 |
15.36 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.19
|
0.33 |
0.43 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.46
|
1.94 |
2.03 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.57
|
1.47 |
1.59 |
LOCAL AGENCY FURTHER INFORMATION
PERFORMANCE
The consolidated
net revenue of the Company was Rs. 121144.400 Millions as against Rs.
122895.400 Millions in the previous year. The consolidated profit before tax
was Rs. 3464.600 Millions as against Rs. 3513.100 Millions in the previous
year. The Directors are pleased to recommend final Dividend of Rs. 2 per share
(100%) on the fully paid-up equity shares of Rs. 2/- each for the financial
year ended on 30th June, 2010. During the first nine months, three interim
(quarterly) dividends aggregating to Rs. 5.50 per share (275%) were declared,
taking the total dividend for the year 2009-10 to Rs. 7.50 per share of Rs. 2/-
(375%).
MANAGEMENT
DISCUSSION AND ANALYSIS
OVERVIEW
The
year 2009-10 has seen the revival of economy and established a new growth path
for the Indian industry. As the economy recovered both consumers and
enterprises demand for services and solutions that allow them to 'do-more with- less' and
business model innovation, improved productivity, faster return on investment,
cost savings took the forefront.
During
the year, the enterprise and SMB market has slowly opened up to adopt more IT
into the system and the hiring spree, which had a ripple effect across industry
in 2009, is back on revival thereby, resulting in increased IT buying. However,
the market is witnessing a paradigm shift in the purchase behavior of
enterprise and SMB with virtualization, green IT, on-premise delivery and
outsourcing services gaining traction. The organizations are moving towards
more secured investments and want to move ahead for more of opex than capex
model. The sustenance of this model and preferences are likely to evolve and
widespread adoption is to be seen in times ahead. The e-Governance and
'Economic Stimulus Spending' will continue to invigorate Government / Public
Sector IT spending to new levels in 2010. Large scale egovernance projects will
witness increased adoption of Document Management Services (DMS) and digital
imaging technologies, notably scanners.
BUSIENSS OUTLOOK
The consumer is
now moving to - 'Consumer 2.0' - from 'Consumer 1.0' marked by advancements in
mobile computing leading to next generation 'Net books' and availability of
several new applications for smart handheld devices (SHDs) or smart phones. A
lag in the roll out of 3G / WIMAX will affect the launch of new types of
consumer services. While consumers may experience newer digital products, they
will have to make do with the limited spectrum of applications currently
available and wait for the full range of next generation services experience.
The domestic IT
market is expected to grow at 13.0% in 2010 to touch Rs. 1076550.000 millions,
while the data centre services market in the country is forecast to grow at a
compound annual growth rate (CAGR) of 22.7 per cent between 2009 and 2011, to
touch close to US$ 2.2 billion by the end of 2011, according to research firm
IDC India's report published in March 2010. The report further stated that the
overall
Cloud computing is
reshaping the IT market place, creating new opportunities for suppliers and
catalysing changes in the traditional IT offerings. Cloud computing primarily
evolved with the growing acceptance of Saas, and the industry looking to
replicate the success of offering software-as-a-service to not just platforms /
applications (Paas) but also as infrastructure / hardware (Iaas or Haas). In
the current scenario, when the market is passing through wide scale curtailment
of CAPEX and focusing on deriving benefits through the OPEX route, this model
is making its presence felt as organizations can derive benefits without the
need to worry about maintenance and upkeep of the hardware and software. This
is especially important for small and medium businesses, a sector that will be
a key target in any plan for the broad economic recovery. After the inflexion
in JAS 2009, there has businesses, a sector that will be a key target in any
plan for the broad economic recovery.
After the
inflexion in JAS 2009, there has been a continuous growth in the notebook
market, maintaining the levels above 700 K every quarter. The market is bound
to witness and support more growth into this specific sector and also see more
devices and variety of notebook/ net book range and offerings coming into the
picture. Research firm IDC expects the combined
SEGMENT
PERFORMANCE
The company has
identified three primary segments namely Computer Systems and related products
and services, Telecommunication and Office Automation and Internet and related
services.
FINANCIAL COMMENTS
ON CONSOLIDATED OPERATIONS FOR THE YEAR ENDED JUNE 30, 2010
COMPUTER SYSTEMS
AND RELATED PRODUCTS AND SERVICES
The segment
operations comprise of manufacturing of computer hardware systems, providing
comprehensive Systems Integration, Roll out and Infrastructure management
solutions in different Industry verticals, providing IT services including
maintenance and facility management and ICT training. Segment revenue grew 3%
in FY 2010 to Rs. 36430.000 millions from Rs. 35400.000 millions in FY 2009.
Five year CAGR is 11%. Segment PBIT grew 7% in FY 2010 to Rs. 1900.00 millions
as against Rs. 1770.00 millions in FY 2009. PBIT as a % to sales is 5.2%, as against
5.0% in the previous year.
Capital employed
in the segment as at June 30, 2010 is Rs. 12150.000 millions.
TELECOMMUNICATION AND OFFICE AUTOMATION
The segment
operations comprise of distribution of telecommunication and other digital
lifestyle products, office automation products and related comprehensive
maintenance and allied services, and Homeland security and surveillance through
its subsidiary HCL Security Limited Segment revenue in FY 2010 is Rs. 85290.000
millions as against Rs. 88740.000 millions in the previous year. Segment PBIT
in FY 2010 is Rs. 2160.000 millions as against Rs. 2460.000 millions in the
previous year. PBIT as % to sales is 2.5% in FY 2010 as against 2.8% in FY
2009. Capital employed in the segment as at June 30, 2010 is Rs. 2030.000
millions as against Rs. 187 millions as at June 30, 2009.
INTERNET AND
RELATED SERVICES
The segment
provides Internet and related services through the Company's wholly owned
subsidiary HCL Infinet Limited to business enterprises. The offerings include
Internet access services, virtual private network and other connectivity
services Segment Revenue in FY 2010 is Rs. 770.000 millions as against Rs.
460.000 millions in the previous year. Profit before Interest and Tax is Rs.
(140.000) millions. Profit after tax is Rs. (120.000) millions.
AWARDS AND
RECOGNITION
The year that went
by witnessed numerous recognitions for the Company as HCL Infosystems bagged
several awards and accolades. This year in a customer satisfaction survey
conducted by IDC Dataquest, the Company was ranked No.1 for the second
consecutive year.
The Company this
year was also honoured with the 'Dun and Bradstreet Rolta Corporate Award for
the year 2009' in computer hardware and peripherals category. The Company was
also awarded with ELCINA-Dun and Bradstreet Award for 'Outstanding achievement
in Quality for the year 2009'. The Company was also recognized as 'The
Electronics Company of the Year 2009' by EFY. The Company this year also
emerged amongst top five green electronic companies in the world by
Greenpeace's 'Guide to Greener Electronics'.
The Company was
ranked number one in the Best Employer Study 2009 conducted by IDC - Dataquest.
'HCL ME', was ranked amongst top 10 brands by a Business Standard survey 'Brand
Durby 2009'. This year HCL Manufacturing facilities were awarded GOLD
certificate of Merit by The Economic Times India Manufacturing Excellence
Awards (IMEA 2009) in partnership with 'Frost and Sullivan'. Also the
manufacturing facilities were certified for Quality management system ISO 9001:
2008, environment management system ISO 14001: 2004 and received certification
of 18001:2007 (OSHAS) during the period.
PARTICULARS OF
SUBSIDIARIES
During the year, on
acquisition by the Company of the entire equity share capital of RMA Software
Park Private Limited (RMAS), RMAS has become the wholly owned subsidiary of the
Company with effect from 7th July, 2009.
During the year, a
wholly-owned subsidiary was incorporated in
On acquisition of
majority equity stake (60%) by the Company in HCL Infosystems MEA FZCO, Dubai
(Formerly known as NTS FZCO) through HCL Insys Pte Limited, Singapore, HCL
Infosystems MEA FZCO has become a step down subsidiary of the Company with
effect from 4th July, 2010.
A statement
pursuant to section 212(3) of the Companies Act, 1956 relating to subsidiary
companies is attached to the accounts. The Company has obtained permission from
Ministry of Corporate Affairs, Government of India vide its letter number
47/108/2010-CL-III, dated 19th March, 2010 for not annexing the accounts of the
wholly owned subsidiaries, namely HCL Infinet Limited, HCL Security Limited,
HCL Infocom Limited, RMA Software Park Private Limited and HCL Insys Pte
Limited. The summary of financials of the subsidiaries has been included in the
Annual Report. The annual accounts of the subsidiaries of the Company are
available on any working day at the Registered Office of the Company to the
shareholders of the Company requiring such information. These are also
available on the website of the Company at www.hclinfosystems.in.
FIXED ASSETS
·
Land – Leasehold
·
Land – Freehold
·
Buildings
·
Plant and Machinery
·
Air Conditioners
·
Furniture and Fixtures
·
Office equipment
·
Vehicles
Un-audited
financial results (Provisional) for the quarter ended 31st December,
2010
(Rs. In millions)
|
Particulars |
Three Month Ended 31.12.2010 (unaudited) |
Six Month Ended 31.12.2010 (unaudited) |
|
(a) Net Sales/ Income from
operation |
30149.600 |
58712.600 |
|
(b) Other Operating Income |
39.800 |
210.100 |
|
Total Income |
30189.400 |
58922.700 |
|
2. Expenditure |
|
|
|
a. Increase(-) /Decrease(+) in Stock in trade and W.I.P. |
648.300 |
1280.600 |
|
b. Consumption of Raw-Materials |
4207.100 |
7999.000 |
|
c. Purchase of Traded Goods |
21029.000 |
41793.500 |
|
d. Purchase of Services |
610.500 |
1030.300 |
|
e. Store and Spares consumed and others |
555.200 |
969.400 |
|
f. Employees Cost |
1143.100 |
2160.500 |
|
g. Administrative, Selling, Repairs and Others |
1029.400 |
1851.000 |
|
h. Depreciation |
84.100 |
157.300 |
|
i. Total |
29306.700 |
57241.600 |
|
3. Profit(+)/ Loss(-) from Operations before other Income Interest and
Exceptional Item(1-2) |
882.700 |
1681.100 |
|
4. Other Income-Foreign Exchange Fluctuation-Gain/(Loss) |
151.500 |
280.00 |
|
5. Profit(+)/ Loss(-) before Interest and Exceptional Item |
1034.200 |
1961.100 |
|
6. Interest |
190.400 |
319.300 |
|
7. Profit(+)/ Loss(-) after Interest but before Exceptional Item (5-6) |
843.800 |
1641.800 |
|
8. Exceptional Items |
-- |
-- |
|
9. Profit(+)/
Loss (-) from ordinary activities
before Tax (7-8) |
843.800 |
1641.800 |
|
10. Tax Expenses |
233.700 |
490.700 |
|
11. Net Profit(+)/ Loss (-) from ordinary activities after Tax (9-10) |
610.100 |
1151.100 |
|
12. Extraordinary Items |
-- |
-- |
|
13. Net Profit (+)/ Loss(-) for the period (11-12) |
610.100 |
1151.100 |
|
14. Paid Up Equity Share Capital (Face Value of Rs.10 Per Share) |
436.500 |
436.500 |
|
15. Reserves excluding Revaluation Reserves as per Balance Sheet of Previous
Accounting Year |
|
|
|
16. Earning per Share (EPS) |
|
|
|
a) Basic and diluted EPS before extraordinary items for the period,
for the year to date and for the previous year (not annualised) |
2.80 |
5.27 |
|
b) Basic and diluted EPS after extraordinary items for the period,for
the year to date and for the previous year (not annualised) |
2.80 |
5.27 |
|
17. Public Shareholding |
|
|
|
Number of Shares |
108602641 |
108602641 |
|
% of Share holding |
49.76% |
49.76% |
|
18. Promoters and promoter group Shareholding |
|
|
|
a) Pledged/Encumbered |
|
|
|
- Number of shares |
1319250 |
1319250 |
|
- Percentage of shares (as a % of the total
shareholding of promoter and promoter
group) |
1.20% |
1.20% |
|
- Percentage of shares (as a
% of the total share capital of the
company) |
0.60% |
0.60% |
|
b) Non-encumbered |
|
|
|
- Number of shares |
108337071 |
108337071 |
|
- Percentage of shares (as a % of the total
shareholding of promoter and promoter
group) |
98.80% |
98.80% |
|
- Percentage of shares (as a
% of the total share capital of the
company) |
49.64% |
49.64% |
Statement
of Assets and Liabilities
|
4. STATEMENT OF ASSETS AND LIABILITIES |
31.12.2010
UNAUDITED |
|
SHAREHOLDERS FUNDS |
|
|
1] Share Capital |
436.500 |
|
2] Share Warrant Application Money |
176.600 |
|
3] Reserves & Surplus |
19251.300 |
|
LOAN FUNDS |
|
|
A] Secured Loan |
1032.500 |
|
B] Unsecured Loan |
5827.000 |
|
|
|
|
TOTAL |
27724.000 |
|
|
|
|
FIXED ASSETS [Net Block] |
2324.100 |
|
INVESTMENT |
9483.500 |
|
DEFERREX TAX ASSETS |
76.900 |
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
Inventories |
7411.500 |
|
Sundry Debtors |
22320.500 |
|
Cash & Bank Balances |
1815.300 |
|
Other Current Assets |
3590.000 |
|
Loans & Advances |
2887.800 |
|
Total Current
Assets |
38025.100 |
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
Current Liabilities |
21615.900 |
|
Provisions |
569.700 |
|
Total Current
Liabilities |
22185.600 |
|
Net Current
Assets |
15839.500 |
|
|
|
|
TOTAL |
27724.000 |
Notes :
1. The above results, after recommendation by the Audit Committee,
have been approved and taken on record by the Board of Directors at its meeting
held on January 28, 2011. These results have been subjected to limited review
by the statutory auditors.
2. The Board of Directors at the above meeting has
declared interim dividend of Rs. 2/- per fully paid up equity share of Rs. 2/-
each for the Financial Year 2010-11. The "Record Date" for the
payment of dividend will be February 7, 2011.
3. During the quarter, the Company through a wholly owned
subsidiary incorporated in
4. The Company has signed a Share Purchase Agreement
(SPA) with a Buyer in January 2011 for the sale of its entire equity stake in
HCL Infinet Limited, the wholly owned subsidiary, reported as Internet &
Related Services segment which is accordingly identified as a discontinuing
operation. The sale/transfer of the entire equity stake shall be given effect
on receipt of necessary regulatory approvals. As per the SPA, all cash losses
incurred by HCL Infinet Limited for carrying out its day to day business operations
till the date of transfer of shares shall be funded and borne by the Company.
The financial impact of this transaction would be accounted for in the
standalone and consolidated financial results on consummation of the
transaction.
5. During the quarter ended December 31, 2010, 230 equity
shares of Rs. 2/- each fully paid up were issued and allotted pursuant to the
exercise of stock options under HCL Infosystems Limited - Employee Stock Option
Scheme 2000.
6. Pursuant to notification u/s 211(3C) of the Companies
Act 1956 issued by the Ministry of Corporate Affairs on March 31, 2009, the
Company had opted to accumulate the exchange difference arising on translation
of foreign currency items having a term of 12 months or more and amortise such
exchange difference over the useful life of the item. Accordingly, a gain of
Rs. 25.700 millions stands deferred as at December 31, 2010.
7. Tax expense for the current quarter has been estimated
subject to final computation of various tax adjustments.
8. Consolidated Results include financial results of HCL
Infosystems Limited (the parent company) and its seven subsidiaries (including
one subsidiary incorporated during the quarter) and their two subsidiaries and
one joint venture company.
9. The Company on a standalone basis and its subsidiary
HCL Insys Pte. Limited,
10. Five investor complaints were received and resolved
during the quarter ended December 31, 2010. No investor complaints were pending
at the beginning and at the end of the quarter.
11. Figures for previous periods have been regrouped and
rearranged, wherever necessary, to conform with the relevant current period's
classification.
AS PER WEBSITE
DETAILS
HISTORY
Subject is one of
the pioneers in the Indian IT market, with its origins in 1976. For over
quarter of a century, they have developed and implemented solutions for
multiple market segments, across a range of technologies in
|
Y E A R |
H I G H L I G H T S |
|
1976 |
Foundation of the Company laid - Introduces microcomputer-based programmable calculators with wide
acceptance in the scientific / education community |
|
1977 |
- Launch of the
first microcomputer-based commercial computer with a ROM -based Basic interpreter
|
|
1978 |
- Initiation of application development in diverse segments such as
textiles, sugar, paper, cement , transport |
|
1980 |
- Formation of Far East Computers Ltd., a pioneer in the Singapore IT
market, for SI (System Integration) solutions |
|
1981 |
- Software Export Division formed at Chennai to support the bespoke
application development needs of |
|
1983 |
- Subject launches an aggressive advertisement campaign with the theme
' even a typist can operate' to make the usage of computers popular in the
SME (Small and Medium Enterprises) segment. This proposition involved
menu-based applications for the first time, to increase ease of operations.
The response to the advertisement was phenomenal.
|
|
1985 |
- Bank trade unions allow computerisation in banks . However , a
computer can only run one application
such as Savings Bank, Current account , Loans etc.
|
|
1986 |
- Zonal offices
of banks and general insurance companies adopt computerization - Subject
assists customers to migrate from flat-file based systems to RDBMS |
|
1991 |
- Subject enters into a joint venture with Hewlett Packard
|
|
1994 |
- Subject acquires and executes the first offshore project from IBM
Thailand
|
|
1995 |
- Starts execution of Information System Planning projects
|
|
1996 |
- Sets up the
STP ( - Becomes national integration partner for
SAP |
|
1997 |
- Kolkata and Noida STPs set up
|
|
1998 |
- Chennai and |
|
1999 |
- Acquires and
sets up fully owned subsidiaries in - Sets up fully
owned subsidiary in - Subject ties
up with Broadvision as an integration partner |
|
2000 |
- Sets up fully owned subsidiary in
|
|
2001 |
-Launched Pentium IV PCs at below Rs 0.040 million
|
|
2002 |
-Declared as Top PC Vendor by Dataquest
|
|
2003 |
-Became the
first vendor to register sales of 50,000 PCs in a quarter -First Indian
company to be numero uno in the commercial PC market -Enters into
partnership with AMD -Launched Home
PC for Rs.0.019 million -Subject Info
Structure Services Division received ISO 9001:2000 certification -Launches
Infiniti Mobile Desktps on Intel Platform -Launched
Infiniti PCs, Workstations and Servers on AMD platform |
|
2004 |
- 1st to announce PC price cut in
|
|
2005 |
-Launch of
Subject PC for -Rated as the
No.1 Desktop PC company by IDC India –Dataquest - 'Best Employer
2005' with five star ratings by IDC India -Dataquest. - 'The Most
Customer Responsive Company 2005' - IT Hardware
Category by The Economic Times -Avaya Global Connect. - Top 50 fastest
growing Technology Companies in India' and 'Top 500 fastest Growing
Technology Companies in Asia Pacific' by 'Deloitte and Touche'. by 'Deloitte
and Touche' - 'Best Bhoomi
Brand 2005' by 360 magazine -in the PC category -in the LCD
Monitor category. - - Toshiba'Super
Award 2005 towards business excellence in distribution of Toshiba
Multifunctional products, -Strategic
Partners in Excellence' Award by Infocus Corporation for projectors. |
|
2006 |
- 75, 000+
machines produced in a single month - Subject in
partnership with Toshiba expands its retail presence in - Subject the
leader in Desktops PCs unveils - IDBI selects
Subject as SI partner for 100 branches ICT infrastructure rollout - Subject
showcases Computer Solutions for the Rural Markets in - Subject
Support wins the DQ Channels-2006 GOLD Award for Best After Sales Service on
a nationwide customer satisfaction survey conducted by IDC - Subject First
in - Subject Forms
a Strategic Partnership with APPLE to provide Sales and Service Support for
iPods in - Subject rated
as number one Desktop PC Company by IDC, sixth year successively - Subject sustains
its commercial Desktop PC leadership for the fifth consecutive year - Subject
launches "trusted ICT infrastructure platforms" for the BPO-ITeS
segment - Subject
launches - Subject
creates Dual Core Xeon Server at a price point of Rs.0.044 million Subject
completes 30 years in -
Subject in association with The Music Academy, -
-
Enters into partnership with Casio -
Subject establishes its manufacturing facility at
Uttaranchal -
Subject launches Beanstalk 2007 collection. A
range of four new HCL Beanstalk Digilife-enablers, Beanstalk Nano, Beanstalk
Slim, Beanstalk Lifestyle and Beanstalk Dominator |
|
2007 |
-
Subject
introduces eco-efficient Notebook PCs complying with RoHS directive - Subject
unveils initiative to create industry ready ICT professionals- launches HCL
career development centers' - Subject
launches ‘datacenter in a box’ - a simplified IT infrastructure solution in a
‘box’ -
targeted
at small and medium enterprises - Subject breaks
the one terabyte storage barrier in computers-launches -
terabyte’
personal computer - Kodak and Subject
ink agreement to distribute digital cameras in - Subject
launches -
exclusively for the needs of rural retailers - Subject
unveils enterprise class 16 core server - - Launches a new
range of eco-efficient desktop PCs, complying with RoHS directive - Subject
launches NETMAX; suite of networking products and solutions expands its
portfolio for emerging enterprises - Subject
announces '360-degrees technology refresh program'- new initiative aimed at -
capturing latest trends in technology and
delivering them to Indian enterprises - Subject
announces launch of its workstation 2008 series for MCAD and DCC professionals |
|
2008 |
-
Subject unveils the future of personal computing.
Launches next generation, ultra portable, Sub Rs.0.014 million laptops MiLeap
Series for the first time in - Subject strengthens
its BFSI System Integration Portfolio - Acquires a niche Banking Software
Product Company - |
PRESS RELEASE
HCL Infosystems
awarded a Rs. 138 crores RAPDRP project from
JSEB under its System Integration Utility Practice
- To implement a state wide solution for Jharkhand State
Electricity Board (JSEB)
- Third RAPDRP project for the company, taking its total RAPDRP
order size to Rs. 7700.000 millions approx.
- HCL Infosystems to establish Data center, Disaster Recovery
center and integrated IT solution for CRM, meter reading, billing,
collection, energy auditing etc.
HCL Infosystems Limited,
The project would help the utility in the establishment of integrated IT
solution for CRM, meter reading, billing and collection, energy auditing and
accounting for collection of accurate data and monitoring of loss reduction
performance of JSEB thereby increasing efficiency of its employees. The project
aims to provide an IT backbone for strengthening of the Electricity
Distribution System Infrastructure of JSEB to reduce its AT&C (Aggregate Technical
and Commercial) losses and ensure improved Customer satisfaction and revenue
collection thereby making the utility self sustainable in the long run.
Speaking on the occasion, Mr.
Rajeev Asija, Chief Operating Officer –
The project will entail the establishment of
About HCL Infosystems
HCL Infosystems Limited, with revenue (LTM) of US$ 2.6 billion (Rs.
122210.000 millions) is India’s premier hardware, services and ICT systems
integration company offering a wide spectrum of ICT products that includes
Computing, Storage, Networking, Security, Telecom, Imaging and Retail. HCL is a
one-stop-shop for all the ICT requirements of an organization.
HCL today has India's largest vertically integrated computer
manufacturing facility with over three decades of electronic manufacturing
experience & HCL desktops is the largest selling brand into the enterprise
space. With
PRESS RELEASE
HCL Infosystems joins hands with
HCL Infosystems MEA, a
The collaboration between HCL Infosystems and GEMS Education will offer
access to technology enabled learning and state of the art solutions to benefit
the students. The deployment will enable both students and teachers to
effectively utilise a range of ICT resources that will be made available under
this project.
Mr. Rajeev Asija, Chief Operating Officer – Enterprise Business, HCL
Infosystems said, “HCL Infosystems has been
focusing on taking its business expertise to newer boundaries by expanding into
emerging markets. This partnership with GEMS Education is part of our ongoing
effort to cultivate global relationships for empowering students across globe
with the most advanced & best-in-class education solutions. IT plays a
prominent role in enhancing the learning process and this alliance will further engage technology as a driver for growth
in education”
Mr. Dino Varkey, Senior Director - Business Operations, GEMS Education, stated “GEMS Education is committed towards building a
technology rich, forward thinking community and we place utmost priority in
attaining the highest international standards of innovation, quality and
service. Technology is an important tool in education and we are pleased to
invest in this deal, as it will further engage our teachers and students in
enhanced collaboration in their teaching and learning process”.
The project will involve HCL Infosystems manage GEMS Education’s first
phase of IT requirements in the MENASA region by providing and deploying the
entire requirement of desktops, laptops, severs etc. HCL Infosystems has been
recording good growth under its education and learning business and has already
expanded its presence in over 100 schools and 1000 classrooms under its HCL
Learning Digischool program in
GEMS Education has invested over 25 million USD in technology across its
schools over the last five years. GEMS Education is the first ISO 27001, K – 12
education company in the world having over 10,000 workstations, 200 servers, 27
Data Centers and over 4000 internet ready multimedia class rooms.
About HCL Infosystems
HCL Infosystems Limited, with revenue (LTM) of US$ 2.6 billion (Rs.
122210.000 millions) is India’s premier hardware, services and ICT systems
integration company offering a wide spectrum of ICT products that includes
Computing, Storage, Networking, Security, Telecom, Imaging and Retail. HCL is a
one-stop-shop for all the ICT requirements of an organisation.
HCL today has India's largest vertically integrated computer
manufacturing facility with over three decades of electronic manufacturing
experience & HCL desktops is the largest selling brand into the enterprise
space. With
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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 |
|
|
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 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
66 |
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 |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.