MIRA INFORM REPORT

 

 

Report Date :

04.01.2011

 

IDENTIFICATION DETAILS

 

Name :

TARGET CORPORATION INDIA PRIVATE LIMITED

 

 

Registered Office :

C2, Manyata Embassy Business Park, SEZ Unit, Nagawara Hobli, Outer Ring Road, Hebbal, Bangalore – 560045, Karnataka

 

 

Country :

India

 

 

Financials (as on) :

30.01.2010

 

 

Date of Incorporation :

26.02.2004

 

 

Com. Reg. No.:

033455

 

 

CIN No.:

[Company Identification No.]

U72900KA2004PTC033455

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Software development and IT enabled services

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (50)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

USD 7472884

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established company having satisfactory 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)

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

 

Note : Management non co-operative [ Name not disclosed]

 

 

LOCATIONS

 

Registered Office :

C2, Manyata Embassy Business Park, SEZ Unit, Nagawara Hobli, Outer Ring Road, Hebbal, Bangalore – 560045, Karnataka, India

Tel. No.:

91-80-42182017

Fax No.:

91-80-42182100

E-Mail :

lalit.ahuja@target.com

 

 

Corporate Office :

Robert J, Ulrich Centre, Embassy Golf Link, Business Park, Off Intermediate Ring Road, Bangalore – 560071, Karnataka, India

Tel. NO.:

91-80-40172000

Fax No.:

91-80-40172100

Web site :

http://www.tsi.target.com

 

 

DIRECTORS

 

AS ON 30.07.2010

 

Name :

Mr. Lalit Ahuja

Designation :

Managing Director

Address :

164, 9th Cross, Indira nagar, 1st Stage, Bangalore – 560038, Karnataka, India

Date of Birth/Age :

21.07.1957

Date of ceasing :

08.12.2009

Date of Appointment :

26.02.2004

 

 

Name :

Mr. Dharani Pragada Narayana

Designation :

Director

Address :

5517, Doniey Drive, Frisco Texas – 75034, USA

Date of Birth/Age :

06.06.1943

Date of ceasing :

08.12.2009

Date of Appointment :

01.12.2004

 

 

Name :

Mr. Christopher Mundhal Perrigo

Designation :

Director

Address :

15111, Tamer LN, Wayzata, Minnesota – 55391, USA

Date of Birth/Age :

11.06.1969

Date of ceasing :

08.12.2009

Date of Appointment :

25.04.2007

 

 

Name :

Mr. Patricia A. Johnson

Designation :

Chairman

Address :

13543, Wo Odmere , Circle, EDEN Prairie Minnesota USA - 55346

Date of Birth/Age :

08.09.1962

Date of Appointment :

07.12.2009

 

 

Name :

Mr. David Marquis

Designation :

Director

Address :

13200 35, Avenue Plymouth, Minnesota USA - 55441

Date of Birth/Age :

29.02.1960

Date of Appointment :

07.12.2009

 

 

Name :

Mr. Navneet Kapoor

Designation :

Director

Address :

Villa 61, Phase 1, Adarsh Palm, Meadows, Airport Varthur Road, Ramagondonahalli, Bangalore – 560066, Karnataka, India

Date of Birth/Age :

23.12.1970

Date of Appointment :

07.12.2009

 

 

Name :

Mrs. Sonali Gupta

Designation :

Secretary

Address :

Abhilash, 10, Hanumappa Road, New Thippasandra, Bangalore – 560075, Karnataka, India

Date of Birth/Age :

10.05.1981

Date of Appointment :

25.11.2009

 

 

Name :

Mr. Lalit Ahuja

Designation :

Manager

Address :

164, 9th Cross Indiranagar, 1st Stage, Bangalore – 560038, Karnataka, India

Date of Birth/Age :

21.07.1957

Date of Appointment :

08.12.2009

 

 

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 30.07.2010

 

Names of Shareholders

 

No. of Shares

Target Corporation Inc., USA

 

8912866

Target Bridges Inc., USA

 

13661

 

 

 

Total

 

8926527

 

AS ON 30.07.2010

 

Category

Percentage

Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others

100.00

Bodies corporate

0.00

Directors or relatives of Directors

0.00

Other top fifty shareholders

0.00

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Software development and IT enabled services

 

 

 

 

 

GENERAL INFORMATION

 

No. of Employees :

Not divulged by the management

 

 

Bankers :

Not Available

 

 

Facilities :

--

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Deloitte Haskins and sells

Chartered Accountant

Address :

Anchorge II 100/2, Richmond Road, Bangalore – 560023, Karnataka, India 

 

 

Holding Company :

Target Corporation

 

 

Enterprise over which key management personnel exercises significant influence :

Target Term Member Recognition Centre Trust

 

 

Fellow Subsidiaries :
  • Target Commercial Interiors Inc.
  • Target Sourcing Services India Private Limited

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

12000000

Equity Shares

Rs.10/- each

Rs. 120.000Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

8926527

Equity Shares

Rs.10/- each

Rs.89.266 Millions

 

 

 

 

 

Note : Out of the above 8912866 equity shares are held by Target Corporation, the holding company and 13661 equity shares are held by target Bridges Inc., the Subsidiary company of Target Corporation

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

01.02.2009 to 30.01.2010

03.02.2008 to 31.01.2009

04.02.2007 to 02.02.2008

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

89.265

89.265

89.265

2] Share Application Money

0.008

0.008

0.008

3] Reserves & Surplus

1778.956

1211.311

855.569

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

1868.221

1300.576

944.834

LOAN FUNDS

 

 

 

1] Secured Loans

0.000

0.000

0.000

2] Unsecured Loans

0.000

0.000

0.163

TOTAL BORROWING

0.000

0.000

0.163

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

1868.229

1300.584

945.005

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

701.547

335.078

433.320

Capital work-in-progress

1.279

334.548

3.893

 

 

 

 

INVESTMENT

0.000

0.000

0.000

DEFERREX TAX ASSETS

55.704

24.048

57.400

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
0.000

0.000

0.000

 

Sundry Debtors
1359.449

687.854

340.313

 

Cash & Bank Balances
131.646

114.061

92.428

 

Other Current Assets
0.000

0.000

0.000

 

Loans & Advances
407.822

381.787

280.459

Total Current Assets
1898.917

1183.702

713.200

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
707.918

482.673

227.622

 

Other Current Liabilities
32.094

45.673

22.664

 

Provisions
49.206

48.446

12.523

Total Current Liabilities
789.218

576.792

262.809

Net Current Assets
1109.699

606.910

450.391

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

1868.229

1300.584

945.004

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

01.02.2009 to 30.01.2010

03.02.2008 to 31.01.2009

04.02.2007 to 02.02.2008

 

SALES

 

 

 

 

 

Professional service income

3593.861

2820.959

1614.142

 

 

Other income

3.501

133.943

0.187

 

 

TOTAL                                     (A)

3597.362

2954.902

1614.329

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Payments to and provisions for employees

1983.397

1644.270

790.394

 

 

Professional charges

275.794

228.634

104.196

 

 

Operating and other expenses

520.233

483.041

325.945

 

 

TOTAL                                     (B)

2779.424

2355.945

1220.535

 

 

 

 

 

Less

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

817.938

598.957

393.794

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

--

0.010

0.030

 

 

 

 

 

 

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

817.938

598.947

393.764

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

256.722

158.681

139.054

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

561.216

440.266

254.710

 

 

 

 

 

Less

TAX                                                                  (I)

6.429

84.524

49.468

 

 

 

 

 

 

PROFIT AFTER TAX (G-I)                                  (J)

567.645

355.742

304.178

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

719.882

364.139

59.063

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

1287.527

719.882

364.139

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Software development services

2395.091

1953.643

1053.746

 

 

IT enabled services

1198.769

867.315

560.396

 

TOTAL EARNINGS

3593.860

2820.958

 

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

CIF Value

62.543

186.841

75.952

 

TOTAL IMPORTS

62.543

186.841

75.952

 

 

 

 

 

 

Earnings Per Share (Rs.)

63.59

39.85

34.08

 

 

KEY RATIOS

 

PARTICULARS

 

 

01.02.2009 to 30.01.2010

03.02.2008 to 31.01.2009

04.02.2007 to 02.02.2008

PAT / Total Income

(%)
15.77

12.03

18.84

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
15.61

15.60

15.77

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
1.96

28.98

22.21

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.30

0.33

0.26

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
0.42

0.44

0.27

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
2.40

2.05

2.71

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sundry Creditors Details :

 

Particulars

30.01.2010

31.01.2009

02.02.2008

Sundry Creditors

 

 

 

Due to Micro enterprises and small enterprises

--

0.044

0.173

Others

707.918

482.629

227.449

 

 

 

 

Total

707.918

682.673

227.622

 

Business Operations :

 

Mission, Goals and Objectives : During the report period, the company restated its mission and goals and objectives to better align with the six enterprises priorities.

 

The company, restated mission : “ Drive Target’s competitive advantage with an integrated global team that delivers exceptional results and value”

 

During the report period, the company experiences significant growth in its business. The total number of team members grew from 1872 at the beginning of the period to 2077 at the end of the period.

 

The company now supports all pyramids of Target Corporation from India, providing the following services;

 

  • IT services : Full life software development and maintenance
  • IT Enabled services including :

 

(I)                   Analytics and reporting

(II)                 Transaction processing functions

(III)                Pyramid specific ‘niche’ functions such as marketing and stores design.

 

In order to drive superior business performance and enhance value position, the company implemented a metrics based based performance management philosophy and a value proposition framework across all teams.

 

The operations of the company have been consolidated across two locations at Robert J Ulrich Centre and Gregg W Steinhafel Centre in Bangalore. To augment the capacity and increase seating capacity, 345 seats are being added to Gregg W Steinhafel Centre by adding 31,220 square feet to the facility. Consequent to the decision to consolidate the operations at Bangalore, the land allotted to the company by the Government of Karnataka at Mysore has been returned back to the Government.

 

Note :

 

  • The registered office address of the company has been shifted from D-4, Block, 3rd Floor, Embassy Manayta Business Park, Nagawara Hobli, Outer Ring Road, Hebal, Bangalore – 500045, Karnataka, India to present w.e.f. 23.03.2009

 

  • The registered office address of the company has been shifted from Challaghata Village, Embassy Golf Link Parks, Off Indiranagar, Koramangala, Intermedia Ring  Road, Bangalore – 560071, Karnataka, India to above address.

 

Fixed Assets :

 

  • Computers and Peripherals
  • Office Equipments
  • Motor Vehicles
  • Furniture and Fixtures
  • Lease hold improvements
  • Plant and Machinery

 

Background :

 

Target Corporation India Private Limited (‘the company’) was incorporated on February 26, 2004 under the provisions of companies Act, 1956 as a Private Limited Company. The company is engaged in providing software development and IT enabled services to its holding company.

 

The current period accounts have been prepared for the period February 1, 2009 to January 30, 2010 and the previous period accounts are for the period February 3, 2008 to January 31, 2009 and hence they are not directly comparable.

 

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. 44.84

UK Pound

1

Rs. 69.32

Euro

1

Rs. 59.79

 

 

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

6

--RESERVES

1~10

6

--CREDIT LINES

1~10

5

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

NO

--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

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

50

 

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.