MIRA
INFORM REPORT
|
Report Date : |
07.01.2011 |
IDENTIFICATION DETAILS
|
Name : |
AOL ONLINE INDIA PRIVATE LIMITED |
|
|
|
|
Registered
Office : |
401, Prestige |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2010 |
|
|
|
|
Date of
Incorporation : |
19.12.2000 |
|
|
|
|
Com. Reg. No.: |
028316 |
|
|
|
|
CIN No.: [Company Identification
No.] |
U64202KA2000PTC028316 |
|
|
|
|
Legal Form : |
Private Limited Liability Company |
|
|
|
|
Line of Business
: |
Software Developers. |
RATING & COMMENTS
|
MIRAs 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 5207768 |
|
|
|
|
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) |
|
|
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. Rajesh |
|
Designation : |
Assistant Manager |
|
Contact No.: |
91-80-40353000 |
|
Date : |
05.01.2011 |
LOCATIONS
|
Registered Office : |
401, Prestige |
|
Tel No.: |
91-80-40354290 |
|
E-Mail : |
|
|
|
|
|
Head Office : |
1A, Building Ecospace Campus, Outer Ring Road, |
|
|
|
|
Technical Operation : |
|
|
Tel. No.: |
91-80-41913752 |
|
Fax No.: |
91-80-41150400 |
|
|
|
DIRECTORS
AS ON 30.09.2010
|
Name : |
Mr. Ravindra Singhania |
|
Designation : |
Director |
|
Address : |
P-24, |
|
Date of Birth/Age : |
24.09.1968 |
|
Date of Appointment : |
19.12.2000 |
|
|
|
|
Name : |
Ms. Sonil Singhania |
|
Designation : |
Director |
|
Address : |
P-24, |
|
Date of Birth/Age : |
10.11.1972 |
|
Date of Appointment : |
19.10.2006 |
|
|
|
|
Name : |
Mr. Donald Ray Neff II |
|
Designation : |
Director |
|
Address : |
20765, Ashburn Station Place, |
|
Date of Birth/Age : |
13.05.1968 |
|
Date of Appointment : |
17.07.2007 |
|
Date of Ceasing : |
014.11.2009 |
|
|
|
|
Name : |
Ms. Julie Maria Jacobs |
|
Designation : |
Director |
|
Address : |
3026, |
|
Date of Birth/Age : |
30.11.1966 |
|
Date of Appointment : |
19.10.2006 |
|
Date of Ceasing : |
01.11.2009 |
|
|
|
|
Name : |
Mr. Theodore Russell Caha Jr. |
|
Designation : |
Director |
|
Address : |
|
|
Date of Birth/Age : |
23.08.1959 |
|
Date of Appointment : |
20.11.2009 |
|
Date of Ceasing : |
01.05.2010 |
|
|
|
|
Name : |
Mr. Gregg Michael Bielen |
|
Designation : |
Director |
|
Address : |
5408, |
|
Date of Birth/Age : |
31.07.19601 |
|
Date of Appointment : |
20.11.2009 |
|
|
|
|
Name : |
Mr. Markandeya Kumar Talluri |
|
Designation : |
Director |
|
Address : |
20B, Clover Fileds, Sevaganpally Village, Kali Agraharam, Krishnagiri
District, Hosur, Tamilnadu 635103 |
|
Date of Birth/Age : |
17.11.1957 |
|
Date of Appointment : |
18.05.2010 |
|
|
|
|
Name : |
Ms. Arpita Sen |
|
Designation : |
Director |
|
Address : |
518, 15th Main, 3rd, Block, Koramangala,
Bengaluru Dakshin, |
|
Date of Birth/Age : |
12.06.1972 |
|
Date of Appointment : |
25.09.2010 |
|
|
|
|
Name : |
Mr. Sathya Pramod Nagaraj |
|
Designation : |
Director |
|
Address : |
No. 2898/A, Community Hall Road, 14th Main 2 stage, Rajaji
Nagar, Bangalore 560010, Karnataka, India |
|
Date of Birth/Age : |
24.09.1974 |
|
Date of Appointment : |
25.09.2010 |
|
|
|
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2010
Equity Shares
|
Names of Shareholders |
|
No. of Shares |
|
AOL Mauritius Services Limited, |
|
386806 |
|
Netscape Communication Corporation, |
|
02 |
|
|
|
|
|
Total |
|
386808 |
AS ON 30.09.2010
|
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 Developers |
|
|
|
|
Terms : |
|
|
Selling : |
Cash, Credit |
|
|
|
|
Purchasing : |
Cash, Credit |
GENERAL INFORMATION
|
Customers : |
Others |
|
|
|
|
No. of Employees : |
1000 (In Office) |
|
|
|
|
Bankers : |
City Bank, Dr, |
|
|
|
|
Facilities : |
-- |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
S.R. Batliboi and Associates Chartered Accountant |
|
Address : |
U B City, |
|
|
|
|
Holding Company : |
|
|
|
|
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
500000 |
Equity Shares |
Rs.10/- each |
Rs. 5.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
386808 |
Equity Shares |
Rs.10/- each |
Rs. 3.868
Millions |
|
|
|
|
|
Note :
Of the above 386806 (2009 : nil) equity shares
are held by AOL Mauritius Services Limited. The holding company Nil (2009 :
386805) equity shares are held by AOL Inc. the holding company and (2009 : 2)
equity shares are held by another subsidiary of AOL Inc.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
3.868 |
3.868 |
3.868 |
|
|
2] Share Application Money |
0.282 |
0.001 |
0.001 |
|
|
3] Reserves & Surplus |
1297.792 |
1788.711 |
1489.708 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1301.942 |
1792.579 |
1493.576 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
0.000 |
0.000 |
0.000 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1301.942 |
1792.579 |
1493.576 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
547.818 |
618.042 |
810.051 |
|
|
Capital work-in-progress |
0.079 |
0.000 |
8.398 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
254.568 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
0.000
|
0.000 |
0.000 |
|
|
Sundry Debtors |
276.532
|
179.654 |
117.092 |
|
|
Cash & Bank Balances |
97.242
|
319.768 |
84.250 |
|
|
Other Current Assets |
180.234
|
189.151 |
254.633 |
|
|
Loans & Advances |
276.577
|
718.004 |
532.389 |
|
Total
Current Assets |
830.585
|
1406.577 |
988.364 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
87.749
|
66.444 |
NA |
|
|
Other Current Liabilities |
154.019
|
81.780 |
251.602 |
|
|
Provisions |
89.340
|
83.816 |
61.635 |
|
Total
Current Liabilities |
331.108
|
232.040 |
313.237 |
|
|
Net Current Assets |
499.477
|
1174.537 |
675.127 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1301.942 |
1792.579 |
1493.576 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
2151.399 |
2070.078 |
2698.234 |
|
|
|
Other Income |
10.547 |
43.652 |
34.061 |
|
|
|
TOTAL (A) |
2161.946 |
2113.730 |
2732.295 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Technology and content expenses |
19.060 |
-- |
-- |
|
|
|
Personal expenses |
1174.505 |
1053.065 |
1370.897 |
|
|
|
Administrative and other operating expenses |
444.543 |
480.227 |
791.602 |
|
|
|
TOTAL (B) |
1638.108 |
1533.292 |
2162.499 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
523.838 |
580.438 |
569.796 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1.951 |
1.587 |
1.483 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
521.887 |
578.851 |
568.313 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
279.040 |
256.190 |
171.301 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
242.847 |
322.661 |
397.012 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
82.461 |
23.659 |
24.308 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
325.308 |
299.002 |
372.704 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS BALANCE BROUGHT FORWARD |
1369.280 |
1070.277 |
NA |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
136.928 |
-- |
NA |
|
|
|
Dividend |
69.324 |
-- |
NA |
|
|
|
Tax on Dividend |
406.143 |
-- |
NA |
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Software Development and related services |
2123.634 |
2070.078 |
NA |
|
|
|
Others (search Revenue) |
4.778 |
-- |
NA |
|
|
TOTAL EARNINGS |
2128.412 |
2070.078 |
NA |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
741.434 |
1369.286 |
1070.277 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Capital Goods |
86.575 |
773.00 |
NA |
|
|
TOTAL IMPORTS |
931.91 |
29.497 |
NA |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
386.868 |
386.808 |
-- |
|
Expected Sales (2010-2011) : Rs. 2400.000 millions
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
15.04
|
14.14 |
13.64 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
11.28
|
15.58 |
14.71 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
17.61
|
15.93 |
22.07 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.18
|
0.17 |
0.26 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.25
|
0.12 |
0.20 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.50
|
6.06 |
3.15 |
LOCAL AGENCY FURTHER INFORMATION
Sundry Creditors
Details :
|
Particulars |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
Sundry Creditors |
87.749
|
66.444 |
NA |
|
|
|
|
|
|
TOTAL |
87.749
|
66.444 |
NA |
Fixed Assets :
- Leasehold
Equipment
- Computers
- Office
Equipment
- Furniture and
Fixture
- Computer
Software
- Goodwill
Background
AOL Online India Private Limited (the company)
was incorporated on December 19, 2000 as a wholly owned subsidiary of AOL Inc.
(formerly known as AOL LLC.). During the year, AOL Inc. transferred its
shareholding in the company to AOL. Mauritius Services Limited (the Holding
Company).
The company is engaged in rendering software
development and IT enabled services to its Holding company and Fellow
Subsidiaries.
PERFORMANCE :
Their total turnover has increased during the
year from Rs. 2113.730 millions to Rs. 2161.310 millions. This was a very
challenging year and the company has done well in this environment. Net profit
of Rs. 325.300 millions for the year ended 31st March 2010. the
turnover increased due to the merger of mobile and publishing division of AOL
Interactive Media India Private Limited (AOL Media). Into the company. The
headcount continued to be stable with around 1100 employees.
During the year, the company took over mobile
and Publishing Businesses of AOL. Media w.e.f. April 1, 2008, Vide order of the
high court of Karnataka, dated July 7, 2010
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 Intl
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 companys 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. 45.31 |
|
|
1 |
Rs. 70.26 |
|
Euro |
1 |
Rs. 59.56 |
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 SCs 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.