MIRA
INFORM REPORT
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Report Date : |
08.01.2011 |
IDENTIFICATION DETAILS
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Name : |
IBM INDIA PRIVATE
LIMITED |
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Formerly Known As : |
IBM GLOBAL SERVICES INDIA PRIVATE LIMITED |
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Registered Office : |
No.12, Subramanya
Arcade, |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
13.06.1997 |
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Com. Reg. No.: |
08-22382 |
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CIN No.: [Company
Identification No.] |
U72200KA1997PTC022382 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BLRI00560A |
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PAN No.: [Permanent
Account No.] |
AAACI4403L |
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Legal Form : |
Private Limited
Liability Company |
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Line of Business : |
Manufacturer of All Types of Computer Systems, Hardware,
Software, Display Systems, Computer Accessories and Peripherals. |
RATING & COMMENTS
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MIRA’s Rating : |
A (64) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
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 102818000 |
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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 part of a well known multi-national IBM. It is an
ultimate subsidiary of 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 |
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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
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Name : |
Mrs. Subadha Madhavan |
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Designation : |
Finanace Controller and Company Secretary |
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Date : |
31.12.2010 |
LOCATIONS
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Registered Office : |
No.12, Subramanya
Arcade, |
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Tel. No.: |
91-80-4068300 |
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Fax No.: |
91-80-22063871 |
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E-Mail : |
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Website : |
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Area : |
5000 Sq.ft. |
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Location : |
Rented |
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Factory : |
201, Pondichery – 605 010 |
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Tel. No.: |
91-413-22371707, 22372026 / 28 |
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Fax No.: |
91-413-22372014 |
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Area : |
10000 Sq.ft. |
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Location : |
Rented |
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Corporate Office : |
v
Bangalore (Solution partnership centre for porting of software by
independent software providers on IBM platforms, this centre is one among
only 10 such IBM centres, worldwide)
v Pune
v Gurgaon (E-Business Software)
v
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Branches : |
Located at |
DIRECTORS
As on 29.09.2009
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Name : |
Mr. Raghunandana Srinivaschar Kadambadi |
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Designation : |
Director |
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Address : |
25, 8th
Main Road, Shankar Nagar, |
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Date of Birth/Age : |
21.07.1966 |
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Date of Appointment : |
13.06.2001 |
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Name : |
Mr. Satish Khatu |
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Designation : |
Director |
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Address : |
2, |
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Date of Birth/Age : |
03.12.1952 |
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Date of Appointment : |
16.01.2002 |
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Name : |
Mr. Amit Sharma |
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Designation : |
Director |
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Address : |
209, Defence Colony, 3rd |
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Date of Birth/Age : |
28.08.1970 |
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Date of Appointment : |
15.09.2010 |
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Name : |
Mr. Ganesh Margabandhu |
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Designation : |
Director |
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Address : |
No.713, 7th |
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Date of Birth/Age : |
02.10.1959 |
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Date of Appointment : |
18.08.2004 |
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Name : |
Mr. Shanker Annaswamy |
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Designation : |
Managing Director |
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Address : |
Flat 5, Prestige Casablaca 2/2, |
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Date of Birth/Age : |
01.08.1955 |
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Qualification : |
B.E.Elec and Comm., Diploma in Business Management |
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Experience : |
26 years |
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Date of Appointment : |
14.07.2004 |
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Name : |
Mr. Yogesh Dayal |
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Designation : |
Director |
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Address : |
No.707, Raheja Residency, Koramangala, Bangalore-560034,
Karnataka |
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Date of Birth/Age : |
26.05.1958 |
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Date of Appointment : |
18.03.2005 |
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Name : |
Mrs. Kalpana Margabandhu |
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Designation : |
Director |
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Address : |
Venkateshwara Krupa, 1194 V Block, Rajaji Nagar,
Bangalore-560010 |
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Date of Birth/Age : |
03.05.1957 |
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Date of Appointment : |
29.09.2005 |
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Name : |
Mrs. Rajesh Nambiar |
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Designation : |
Director |
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Address : |
Adarsh
Vista Villa No.70, Basvanagar Off, |
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Date of Birth/Age : |
15.09.1967 |
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Date of Appointment : |
20.03..2007 |
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Name : |
Mr. R Ravi Kumar |
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Designation : |
Director |
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Address : |
493 Embassy Heritage, 62/2-1 8th Main,
Malleswaram, |
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Date of Birth/Age : |
22.11.1960 |
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Date of Appointment : |
29.09.2007 |
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Name : |
Ms. Anita Sanghi |
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Designation : |
Director |
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Address : |
Flat 1, Sai Krupa Heera, CV, Raman Nagar, |
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Date of Birth/Age : |
11.04.1966 |
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Date of Appointment : |
15.09.2010 |
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Name : |
Mr. Robert E A Parker |
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Designation : |
Director |
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Address : |
Villa No.159, Phase 1, Palm Madows Ramagonda, Nahalli Airport, Vartgur Road, Bangalore-560066, Karnataka, India |
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Date of Birth/Age : |
13.06.1964 |
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Date of Appointment : |
12.03.2008 |
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Name : |
Mr. Sripada Chandrasekhar |
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Designation : |
Director |
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Address : |
A 401, Sabari Ashiana, |
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Date of Birth/Age : |
12.07.1957 |
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Date of Appointment : |
29.09.2009 |
KEY EXECUTIVES
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Name : |
Mrs. Subhashree
Sridharan |
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Designation : |
Company Secretary |
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Address : |
T-3, Sri
Mahalajkshmi Apartments, 30-31, 5th Main, 8th Cross,
Malleswaram, Bangalore-560003, |
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Date of
Birth/Age : |
29.05.1973 |
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Date of
Appointment : |
05.01.2007 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2010
|
Names of Shareholders |
|
No. of Shares |
|
IBM World Trade Corporation, |
|
92143693 |
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IBM World Trade Corporation, |
|
138215540 |
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IBM World Trade Holding |
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15 |
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Total |
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230359248 |
AS ON 30.09.2010
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Category |
|
Percentage |
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Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
|
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of All Types of Computer Systems, Hardware,
Software, Display Systems, Computer Accessories and Peripherals. |
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Imports : |
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Products : |
Computer
Accessories and peripherals. |
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Countries : |
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Terms : |
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Selling : |
Cash ands Credit (30 days / 60 days) |
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Purchasing : |
Cash ands Credit (30 days / 60 days) |
GENERAL INFORMATION
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Suppliers : |
Some of its major suppliers are as follows:
v
v
IBM Global Services ( v
IBM World Trade Corporation, v J. R. Packaging Private Limited v K. K. Nag Limited v
Intel v
American Power Conversion, v
Yojna Inc., v
Adaptec Inc., v
Asian Pacaging |
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Customers : |
End Users, OEM’s, Dealers and Distributors
v
Asea Brown Boveri Limited, v
Reserve Bank of v
Ballarpur Industries Limited (BILT), v
Ingram Micro India Limited, v
v
v
American Power Conversion, |
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No. of Employees : |
12500 (Approximately) |
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Bankers : |
v Canara
Bank Overseas Branch, v Hongkong Bank Manipal Centre, v Deutsche Bank v Citi Bank N A v
Bank of Corporative Banking
Branch, v Corporation Bank Industrial Finance Branch, v
State Bank of Industrial Finance Branch, v Standard Chartered Grindlays v
Fleet |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Price Waterhouse and Company Chartered Accountants |
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Address : |
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Pan No.: |
AAEFP3641G |
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Holding Company : |
IBM World Trade Corporation |
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
As on 30.09.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
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|
|
|
|
250000000 |
Equity Share |
Rs.10/- Each |
Rs.2500.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
230359248 |
Equity Share |
Rs.10/- Each |
Rs.2303.592
millions |
NOTE :-
- Of the above shares 230359233 (2009 : 230359233) Equity Shares of
the Rs.10 each are held by IBM World Trade Corporation,
- Of the above 11143699 (2009 : 11143699) shares were issued on
amalgamation
- Of the above 138215549 (2009 : 138215549) shares were issued as
bonus shares by capitalization of reserves.
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 |
2303.592 |
2303.592 |
2303.592 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
23400.999 |
17000.593 |
11228.631 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
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NETWORTH |
25704.591 |
19304.185 |
13532.223 |
|
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LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
943.101 |
927.400 |
890.603 |
|
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2] Unsecured Loans |
10472.293 |
18303.344 |
9416.353 |
|
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TOTAL BORROWING |
11415.394 |
19230.744 |
10306.956 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
37119.985 |
38534.929 |
23839.179 |
|
|
|
|
|
|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
15869.567 |
15668.255 |
12602.278 |
|
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Capital work-in-progress |
137.692 |
320.386 |
565.576 |
|
|
|
|
|
|
|
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INVESTMENT |
2008.599 |
2106.459 |
1891.794 |
|
|
DEFERREX TAX ASSETS |
644.355 |
1052.324 |
635.012 |
|
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2316.175
|
1828.093 |
1405.806
|
|
|
Sundry Debtors |
23401.952
|
19509.019 |
11983.007
|
|
|
Cash & Bank Balances |
2127.933
|
4951.348 |
1351.365
|
|
|
Other Current Assets |
4349.789
|
4166.114 |
3656.179
|
|
|
Loans & Advances |
18131.051
|
12828.914 |
8987.690
|
|
Total
Current Assets |
50326.900
|
43283.488 |
27384.047 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
8101.766 |
9110.746 |
7874.501
|
|
|
Other Current Liabilities |
20896.742
|
12192.291 |
9195.383
|
|
|
Provisions |
2868.620
|
2592.946 |
2169.644
|
|
Total
Current Liabilities |
31867.128
|
23895.983 |
19239.528 |
|
|
Net Current Assets |
18459.772
|
19387.505 |
8144.519 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
37119.985 |
38534.929 |
23839.179 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
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SALES |
|
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Income |
|
|
|
|
|
|
Other Income |
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|
|
|
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TOTAL (A) |
123132.811 |
110031.000 |
87908.000 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Office Expenses |
|
|
|
|
|
|
Administrative Expenses |
|
|
|
|
|
|
Advertising Expenses |
|
|
|
|
|
|
TOTAL (B) |
108136.000 |
97931.000 |
78646.000 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
14996.811 |
12100.000 |
9262.000 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1158.000 |
1296.000 |
604.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
13838.811 |
10804.000 |
8658.000 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
6004.000 |
5152.000 |
4254.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
7834.811 |
5652.000 |
4404.000 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
1434.405 |
(119.000) |
558.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
6400.406 |
5771.000 |
3846.000 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Capital Goods |
3890.514 |
4916.927 |
4634.245 |
|
|
|
Traded Items |
7642.457 |
6909.964 |
|
|
|
|
Software |
4034.159 |
3501.243 |
|
|
|
|
Components and spare parts for sales and services. |
251.002 |
155.073 |
|
|
|
|
Cost of equipment and software for services contracts |
977.283 |
814.305 |
9507.474 |
|
|
TOTAL IMPORTS |
16795.415 |
16297.512 |
10321.779 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
27.78 |
25.06 |
16.70 |
|
Expected sales (2010-2011) : Rs.150000.000 Millions
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
5.20 |
5.24 |
4.37 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
11.83 |
9.59 |
11.01 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.30 |
0.29 |
0.32 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.68 |
2.23 |
1.42 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.58 |
1.81 |
1.42 |
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITORS
DETAILS :
(Rs.
In Millions)
|
Particulars |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
Sundry Creditors |
|
|
|
|
Micro, Small and Medium Enterprises |
135.033 |
74.504 |
78.454 |
|
Others |
7966.733 |
9036.242 |
7796.047 |
|
Total |
8101.766 |
9110.746 |
7874.501 |
Results of
Operations
Total revenue increased to Rs.123133 millions from Rs.110031 millions in
the previous year, at a growth rate of around 11%. The operating profit
increased by about 23% from Rs.12100 millions to Rs.14996 millions. The profit
after tax increased to Rs.6400 millions from Rs.5652 Millions.
Business
Operations and Outlook
During the year they strategically expanded
our operations to further enhance their reach. They announced offerings for
mid-market clients and appointed new business partners to outline their value
proposition.
Economic indicators remain positive, spelling
significant opportunity for IBM India in 2010. They expect clients to continue
to carefully invest in IT solutions that impact their business in measurable
ways.
TRADE REFERENCES :
- Intel India Limited
- Asea Brown Boveri Limited
- Ballarpur Industries Limited
Fixed Assets
- Goodwill
- Computer Software
- Leasehold Improvements
- Plant and Machinery
- Computer Equipments
- Furniture and Fixture
- Vehicles
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 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.45.37 |
|
|
1 |
Rs.70.03 |
|
Euro |
1 |
Rs.58.93 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
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 |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
64 |
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.