MIRA
INFORM REPORT
|
Report Date : |
07.01.2011 |
IDENTIFICATION DETAILS
|
Name : |
MINDTREE WIRLESS PRIVATE LIMITED |
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Formerly Known
As : |
KYOCERA WIRELESS ( |
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Registered
Office : |
Global Village Campus, |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
23.06.2003 |
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Com. Reg. No.: |
08 - 032143 |
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CIN No.: [Company Identification
No.] |
U72200KA2003PTC032143 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
BLRK04094G |
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PAN No.: [Permanent Account No.] |
AACCK1293L |
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Legal Form : |
Private Limited Liability Company |
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Line of Business
: |
Developing and Providing software system and software application
service, for application implementation, integration, management and various
upgrade services, for all types of telecommunication equipments including
handsets, OEM, reference designs/platform designs, etc. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (45) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 1260000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is an 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) |
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|
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 |
INFORMATION PARTED BY
Not able to contact the company.
LOCATIONS
|
Registered Office : |
Global Village Campus, Mylasandra Village, RVCE College Post, Off Mysore
Road, Bangalore 560059, Karnataka, India |
|
Tel. No.: |
91-80-67062101 |
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Fax No.: |
91-80-67062010 |
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E-Mail : |
DIRECTORS
AS ON 27.05.2010
|
Name : |
Mr. Rostow Ravanan |
|
Designation : |
Director |
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Date of Birth/Age : |
06.02.1971 |
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Date of Appointment : |
01.10.2009 |
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Name : |
Mr. Namakal Srinivasan Parthasarthy |
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Designation : |
Director |
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Date of Birth/Age : |
03.01.1961 |
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Date of Appointment : |
01.10.2009 |
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Name : |
Mr. Samartha R Nagabhushanam |
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Designation : |
Director |
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Date of Birth/Age : |
14.05.1972 |
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Date of Appointment : |
05.03.2004 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 27.05.2010
|
Names of Shareholders |
No. of Shares |
|
Mindtree Limited, Karnataka |
412499 |
|
Mindtree Limited Joint with Mr. Rostow Ravanan |
1 |
|
Total |
412500 |
AS ON 27.05.2010
|
Equity Share
Breakup |
|
Percentage of
Holding |
|
Category |
|
|
|
Bodies corporate |
|
100.00 |
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Total
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Developing and Providing software system and software application service,
for application implementation, integration, management and various upgrade
services, for all types of telecommunications equipment including handsets,
OEM, reference designs/platform designs etc. |
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Products : |
ITC Code: 8524.00 Product Description: Development of Software |
GENERAL INFORMATION
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No. of Employees : |
Not Available |
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Bankers : |
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Facilities : |
Rs. In Millions
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
BSR and Associates Chartered Accountant |
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Address : |
Maruthi Info Tech Centre, |
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Tel. No.: |
91-80-39806000 |
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Fax No.: |
91-80-39606999 |
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Name : |
Price Waterhouse Chartered Accountant |
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Address : |
Mittal Tower, 10th Floor, C Wing, 47/6 M |
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Ultimate Holding Company: |
Kyocera Corporation, |
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Holding Company: |
CIN No.: L72200KA1999PLC025564
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Fellow Subsidiaries : |
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CAPITAL STRUCTURE
AS ON 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
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|
500000 |
Equity Shares |
Rs. 10 each |
Rs.5.000 millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
|
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|
412500 |
Equity Shares |
Rs. 10 each |
Rs.4.125 millions |
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|
(of the above 412499 shares of Rs. 10each are
held by MindTree Limited and 1 is held by an individual as a \nominee of
MindTree Limited. In the previous year, 412499 equity shares of Rs. 10 reach
was held by Kyocera Wireless Corporation,
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 |
4.125 |
4.125 |
4.125 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
312.462 |
455.835 |
321.532 |
|
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
316.587 |
459.960 |
325.657 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
70.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
70.000 |
0.000 |
0.000 |
|
|
DEFERRED TAX LI |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
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TOTAL |
386.587 |
459.960 |
325.657 |
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APPLICATION OF FUNDS |
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|
|
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FIXED ASSETS [Net Block] |
73.189 |
118.549 |
81.259 |
|
|
Capital work-in-progress |
4.400 |
2.217 |
5.178 |
|
|
|
|
|
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|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
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DEFERREX TAX ASSETS |
55.207 |
53.891 |
51.419 |
|
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
0.000
|
0.000 |
5.586 |
|
|
Sundry Debtors |
153.063
|
245.003 |
134.493 |
|
|
Cash & Bank Balances |
32.398
|
135.153 |
116.022 |
|
|
Other Current Assets |
0.000
|
0.000 |
34.494 |
|
|
Loans & Advances |
190.986
|
133.174 |
48.818 |
|
Total
Current Assets |
376.447
|
513.330 |
339.413 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
4.960
|
34.863 |
25.949 |
|
|
Other Current Liabilities |
64.440
|
48.902 |
21.254 |
|
|
Provisions |
53.256
|
144.262 |
104.409 |
|
Total
Current Liabilities |
122.656
|
228.027 |
151.612 |
|
|
Net Current Assets |
253.791
|
285.303 |
187.801 |
|
|
|
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|
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|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
386.587 |
459.960 |
325.657 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
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|
SALES |
|
|
|
|
|
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|
Sales |
1006.265 |
1303.505 |
909.467 |
|
|
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Other Income |
2.364 |
47.998 |
0.306 |
|
|
|
TOTAL (A) |
1008.629 |
1351.503 |
909.773 |
|
|
|
|
|
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Less |
EXPENSES |
|
|
|
|
|
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Office Expenses |
|
|
|
|
|
|
Administrative Expenses |
767.249 |
726.084 |
678.080 |
|
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Advertising Expenses |
|
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|
|
|
|
TOTAL (B) |
767.249 |
726.084 |
678.080 |
|
|
|
|
|
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
241.380 |
625.419 |
231.693 |
|
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|
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|
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|
Less |
FINANCIAL
EXPENSES (D) |
1.386 |
0.000 |
4.726 |
|
|
|
|
|
|
|
|
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|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
239.994 |
625.419 |
226.967 |
|
|
|
|
|
|
|
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|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
82.782 |
71.472 |
96.677 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
157.212 |
553.947 |
130.290 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
30.815 |
42.905 |
(15.128) |
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|
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|
|
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|
PROFIT AFTER TAX
(G-H) (I) |
126.397 |
511.042 |
145.418 |
|
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Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
379.513 |
296.410 |
259.117 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
12.639 |
51.200 |
14.600 |
|
|
|
Dividend |
0.000 |
100.477 |
79.940 |
|
|
|
Interim Dividend including tax thereon |
0.000 |
276.262 |
13.585 |
|
|
|
Final Dividend including tax thereon |
272.853 |
0.000 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
220.418 |
379.513 |
296.410 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
0.000 |
0.000 |
0.028 |
|
|
|
Commission Earnings |
0.000 |
0.000 |
45.113 |
|
|
|
Earnings from Software Development |
1005.864 |
1302.285 |
858.067 |
|
|
TOTAL EARNINGS |
1005.864 |
1302.285 |
903.208 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Capital Goods |
16.370 |
93.461 |
94.454 |
|
|
|
Others |
2.505 |
20.457 |
8.516 |
|
|
TOTAL IMPORTS |
18.875 |
113.918 |
102.970 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
306 |
-- |
-- |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
12.53
|
37.81 |
15.98 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
15.62
|
42.49 |
14.32 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
34.96
|
87.66 |
30.97 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.49
|
1.20 |
0.40 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.60
|
0.49 |
0.46 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.06
|
2.25 |
2.23 |
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITORS
DETAILS
Rs. In Millions
|
Particulars |
31.03.2010
|
31.03.2009 |
31.03.2008 |
|
Sundry Creditors |
4.960
|
34.863 |
25.949 |
Note:
Registered office of the company has been shifted from No.
55 Divyasree Towers, 5th Floor,
BACKGROUND:
Mindtree Wirless Private Limited (formerly Kyocera Wireless (
OPERATIONS:
During the year the company achieved revenue of RS. 1006.27 millions
Compared to the previous year revenue of Rs. 1303.51 millions The current year
revenue was reduced by Rs. 297.24 millions. The reduction of revenue amounting
to Rs. 297.24 millions is mainly form the customer KWC, who had carried out
internal restructuring and had shifted the product test to their in house team
at Japan effective October 2010 and had also partially shifted their software
development to their in hose at Japan and also compared to FY 2008 2009, there
was reduction in average FX realization during FY 200-10 which also resulted in
reduction of revenue in Rupees during the current year as major portion of the
company’s revenue is from export of services.
The company continued to operate in the transaction net margin method or
Time and Material model for the second year with all its customers. Under this
method entire risk relating to currency, attrition etc. was borne by the
company as against the cost plus model wherein the entire risk was borne by its
customers.
Compared to the previous year the company achieved lesser profitability
due to increase in the buffer/bench being non billable employees after October
2010. The increase in non billable people effective October 10 is due to
internal reorganization carried out by the main customer KWC as already stated
above. The company also provided increase of 8% to billable employees in the
competency C1 to C4 effective January 2010 with a view to retain its employees.
FIXED ASSETS:
Computer equipment
Office Equipment
Furniture and Fixture
Software
FORM 8
|
Corporate
identity number of the company |
U72200KA2003PTC032143 |
|
Name of the
company |
MINDTREE WIRLESS PRIVATE LIMITED |
|
Address of the registered
office or of the principal place of
business in |
Global Village Campus, Mylasandra Village, RVCE College Post, Off
Mysore Road, Bangalore 560059, Karnataka , India |
|
This form is for |
Creation of
charge |
|
Type of charge |
Book debts Movable property
(not being pledge) Floating charge |
|
Particular of
charge holder |
HDFC Bank, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West),
Mumbai 400013, EMAIL: s.krishnan@hdfcbank.com |
|
Nature of
instrument creating charge |
Letter of
hypothecation of stocks & book debts Dt. 30.10.2009 |
|
Date of
instrument Creating the charge |
30.10.2009 |
|
Amount secured by
the charge |
Rs. 80.000
millions |
|
Brief of the
principal terms an conditions and extent and operation of the charge |
Rate of interest interestrate
5.25% p.a or any other rate the Bank may fix from time to time. Penal
interest:2% p.a in addition to the interest rates as mentioned above for all
overdues /delays in the monies payable. Terms of repayment cash
credit:Repayable on demand Working capital
Demand Loan: upto 180 days. Export
Credit:upto 180 days. Margin Cash Credit:25% or
as communicated by bank from time time. Extent and operation of the charge First Charge by
way of hypothecation on all the stocks and book debts of the company both
present and future. |
|
Short particulars
of the property charged (Including location of the property) |
First Charge by
way of hypothecation on all the stocks and book debts of the company both
present and future. |
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.45.31 |
|
|
1 |
Rs.70.26 |
|
Euro |
1 |
Rs.59.56 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
45 |
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 |
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This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.