MIRA
INFORM REPORT
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Report Date : |
08.01.2011 |
IDENTIFICATION DETAILS
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Name : |
SASKEN COMMUNICATION TECHNOLOGIES LIMITED |
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Registered
Office : |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
13.02.1989 |
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Com. Reg. No.: |
08-14226 |
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CIN No.: [Company Identification
No.] |
L72100KA1989PLC014226 |
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TAN No.: [Tax Deduction and Collection
Account No.] |
BLRS04881C |
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Legal Form : |
A Public Limited Liability Company. The Company’s Share are Listed on
the Stock Exchange. |
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Line of Business
: |
Provides Software Services and Solutions in 3G Wireless and Broadband DSL
Technologies, Internet Gateways, etc. |
RATING and COMMENTS
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MIRA’s Rating : |
A (59) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial and 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 19000000 |
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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 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
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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 DECLINED BY
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Name : |
Mr. Sarvanand |
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Designation : |
Accountant |
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Date : |
06.01.2011 |
LOCATIONS
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Registered Office : |
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Tel. No.: |
91-80-39891122 |
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Fax No.: |
91-80-39813329 |
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E-Mail : |
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Website : |
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Branches : |
Located at: §
Pune §
Chennai §
§
§
Noida |
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Overseas Office : |
Located at: §
§
§
§
§
§
Mecico §
§
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DIRECTORS
(AS ON 31.03.2010)
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Name : |
Mr. Rajiv C Mody |
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Designation : |
Chairman and Managing Director |
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Name : |
Dr. Ashok Jhunjhunwala |
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Designation : |
Director |
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Name : |
Mr. Bansi S Mehta |
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Designation : |
Director |
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Name : |
Mr. Bharat V. Patel |
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Designation : |
Director |
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Name : |
Mr. J. B. Mody |
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Designation : |
Director |
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Name : |
Prof. J Ramachandran |
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Designation : |
Director |
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Name : |
Mr. Kiran S. Karnik |
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Designation : |
Director |
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Name : |
Mr. Pranab D Mody |
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Designation : |
Director |
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Name : |
Mr. Sanjay M Shah |
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Designation : |
Director |
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Name : |
Dr. G Venkatesh |
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Designation : |
Whole Time Director |
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Name : |
Mr. Krishna J Jhaveri |
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Designation : |
Whole Time Director |
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Name : |
Ms. Neeta S. Revankar |
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Designation : |
Whole Time Director |
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Name : |
Mr. Bharat P. Mehta |
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Designation : |
Alternate Director to Mr. J B Mody |
KEY EXECUTIVES
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Name : |
Ms. Neeta S. Revankar |
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Designation : |
CFO and Global Head - HR, IT and Administration |
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Name : |
Mr. Rajiv C. Mody |
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Designation : |
Chairman and Chief Executive Offi cer |
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Name : |
Dr. G. Venkatesh |
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Designation : |
CTO, Head
World-Wide Delivery and Capability |
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Name : |
Mr. R. Vittal |
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Designation : |
Company Secretary and Compliance Officer |
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COMMITTEES OF
THE BOARD : |
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Audit Committee : |
§ Mr. Bansi S. Mehta, Chairman § Dr. Ashok Jhunjhunwala, Member § Prof. J. Ramachandran, Member §
Mr. Pranabh D. Mody, Member |
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Compensation
Committee : |
§
Prof. J. Ramachandran, Chairman §
Dr. Ashok Jhunjhunwala, Member §
Mr. Pranabh D. Mody, Member |
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Share Transfer and
Investor Grievance Committee : |
§ Prof. J. Ramachandran, Chairman § Dr. G. Venkatesh, Member §
Mr. Rajiv C. Mody, Member |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 30.09.2010)
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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(A) Shareholding
of Promoter and Promoter Group |
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4,478,093 |
16.26 |
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1,807,218 |
6.56 |
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6,285,311 |
22.82 |
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1,309,638 |
4.76 |
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1,309,638 |
4.76 |
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Total
shareholding of Promoter and Promoter Group (A) |
7,594,949 |
27.58 |
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(B)
Public Shareholding |
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2,715,274 |
9.86 |
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1,710 |
0.01 |
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2,976,857 |
10.81 |
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5,693,841 |
20.67 |
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2,924,741 |
10.62 |
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5,460,446 |
19.83 |
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4,244,021 |
15.41 |
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1,623,578 |
5.90 |
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10,050 |
0.04 |
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1,266,473 |
4.60 |
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21,649 |
0.08 |
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66,107 |
0.24 |
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259,299 |
0.94 |
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14,252,786 |
51.75 |
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Total
Public shareholding (B) |
19,946,627 |
72.42 |
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Total
(A)+(B) |
27,541,576 |
100.00 |
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(C) Shares
held by Custodians and against which Depository Receipts have been issued |
- |
- |
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Total
(A)+(B)+(C) |
27,541,576 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 Million BUSINESS DETAILS
|
Line of Business : |
Provides Software Services and Solutions in 3G Wireless and Broadband
DSL Technologies, Internet Gateways, etc.
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Products : |
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GENERAL INFORMATION
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No. of Employees : |
28696 (Approximately) |
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Bankers : |
·
Citi Bank NA ·
HDFC Bank Limited ·
Union Bank of |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
S R Batliboi and Company Chartered Accountant |
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Internal Auditors : |
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Name : |
Aneja Associates Chartered Accountant |
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Joint Ventures : |
·
TACO Sasken Automotive Electronics Limited
(TSAE) ·
ConnectM Technology Solutions Private Limited
(ConnectM) |
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Associates/Subsidiaries : |
·
Sasken Network Engineering Limited
139/25, Ring Road, Domlur, ·
Sasken Network Engineering Limited
Krishik Sarvodaya Foundation Bldg. 15,
·
Sasken Communication Technologies (
Room 14505, No.498, ·
Sasken Communication Technologies (Representative
Office) 11A61, Shanghai
Mart, ·
Sasken Communication Technologies Oy
Elektroniikkatie 8, FI-90570, ·
Sasken
Hermiankatu 12B, FI-33720, ·
Sasken
Lemminkäisenkatu 46, FI-20520, ·
Sasken
Elektronikkatie 8, FI-90570, ·
Sasken
·
Sasken
Kanagawa Pref. 213-0032, ·
Sasken Communication Technologies México S.A. de
C.V.
Carretera Miguel Alemian K.M 14.5, Apodaca, 666433, Nuevo
·
Sasken Network Solutions Inc.
·
Sasken Inc.
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CAPITAL STRUCTURE
(AS ON 09.07.2010)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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50000000 |
Equity Shares |
Rs.10/- each |
Rs.500.000 Millions |
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Issued, Subscribed and Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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27618426 |
Equity Shares |
Rs.10/- each |
Rs.276.184
Millions |
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(AS ON 31.03.2010)
PAID-UP CAPITAL: RS.271.111
MILLIONS
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
271.111 |
271.111 |
285.608 |
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2] Share Application Money |
13.200 |
0.000 |
52.486 |
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3] Employees Stock Options Outstanding |
39.362 |
27.364 |
0.000 |
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4] Reserves and Surplus |
4503.322 |
3933.376 |
3943.136 |
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5] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
4826.995 |
4231.851 |
4281.230 |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
0.000 |
0.000 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
0.000 |
0.000 |
0.000 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
4826.995 |
4231.851 |
4281.230 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
677.054 |
814.910 |
838.399 |
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Capital work-in-progress |
15.286 |
10.005 |
5.856 |
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INVESTMENT |
3285.724 |
1846.031 |
1854.973 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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Capitalized Software Products |
0.000 |
0.000 |
212.362 |
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CURRENT ASSETS, LOANS and ADVANCES |
|
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Inventories |
16.655
|
0.000 |
18.450
|
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Sundry Debtors |
669.925
|
1043.090 |
968.267
|
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Cash and Bank Balances |
239.836
|
825.581 |
310.975
|
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Other Current Assets |
116.267
|
209.088 |
0.000
|
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Loans and Advances |
706.487
|
591.403 |
675.832
|
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Total
Current Assets |
1749.170
|
2669.162 |
1973.524 |
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Less : CURRENT
LIABILITIES and PROVISIONS |
|
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Sundry Creditor and Other Current Liabilities |
633.994
|
841.572 |
333.316
|
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Provisions |
266.245
|
266.685 |
270.568 |
|
Total
Current Liabilities |
900.239
|
1108.257 |
603.884
|
|
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Net Current Assets |
848.931
|
1560.905 |
1369.640
|
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
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TOTAL |
4826.995 |
4231.851 |
4281.230 |
|
PROFIT and LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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|
SALES |
|
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Income |
4015.089 |
4797.468 |
3892.500 |
|
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Other Income |
63.445 |
28.813 |
253.100 |
|
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TOTAL (A) |
4078.534 |
4826.281 |
4145.600 |
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Less |
EXPENSES |
|
|
|
|
|
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|
Cost of Revenue, Including Research and
Development Expenses |
779.104 |
598.993 |
0.000 |
|
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Selling Expenses |
82.732 |
41.517 |
725.300 |
|
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Employee Cost |
2134.568 |
2612.592 |
2346.500 |
|
|
|
Management Remuneration |
29.228 |
19.127 |
0.000 |
|
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Auditors Remuneration |
2.245 |
2.133 |
0.000 |
|
|
|
Provision for Doubtful Debts and Deposits |
(68.040) |
49.652 |
0.000 |
|
|
|
Exchange (Gain)/ Loss (Net) |
(174.969) |
384.508 |
0.000 |
|
|
|
Provision for/ (Reversal of) Diminution in
value of investments |
(4.263) |
83.139 |
0.000 |
|
|
|
Exceptional Items |
0.000 |
151.970 |
0.000 |
|
|
|
Power and Fuel |
0.000 |
0.000 |
72.800 |
|
|
|
Manufacturing Expenses |
0.000 |
0.000 |
196.700 |
|
|
|
Miscellaneous Expenses |
0.000 |
0.000 |
247.300 |
|
|
|
Other Expenses |
180.497 |
153.259 |
0.000 |
|
|
|
Increase/(Decrease) in Finished Goods |
0.000 |
0.000 |
(15.400) |
|
|
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TOTAL (B) |
2961.102 |
4096.890 |
3573.200 |
|
|
|
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|
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1117.432 |
729.391 |
572.400 |
|
|
|
|
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|
|
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|
Less |
FINANCIAL
EXPENSES (D) |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
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|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1117.432 |
729.391 |
572.400 |
|
|
|
|
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|
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|
Less/ Add |
DEPRECIATION/ AMORTISATION (F) |
212.879 |
278.544 |
195.000 |
|
|
|
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|
|
|
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|
PROFIT BEFORE
TAX (E-F) (G) |
904.553 |
450.847 |
377.400 |
|
|
|
|
|
|
|
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|
Less |
TAX (H) |
144.296 |
193.393 |
128.100 |
|
|
|
|
|
|
|
|
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|
PROFIT AFTER TAX
(G-H) (I) |
760.257 |
257.454 |
249.300 |
|
|
|
|
|
|
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|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
956.263 |
851.428 |
-- |
|
|
|
|
|
|
|
|
|
|
Reversal
of Restructuring expenses charged off in earlier years |
151.970 |
0.000 |
-- |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
76.026 |
25.745 |
-- |
|
|
|
Dividend on Equity Shares |
190.311 |
126.874 |
-- |
|
|
BALANCE CARRIED
TO THE B/S |
1602.153 |
956.263 |
-- |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
28.04 |
9.23 |
8.73 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2010 |
30.09.2010 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Sales Turnover |
|
1041.000 |
975.770 |
|
Total Expenditure |
|
803.170 |
740.630 |
|
PBIDT (Excl
OI) |
|
237.830 |
235.140 |
|
Other Income |
|
74.290 |
45.810 |
|
Operating
Profit |
|
312.130 |
280.950 |
|
Interest |
|
0.000 |
0.000 |
|
Exceptional
Items |
|
0.000 |
0.000 |
|
PBDT |
|
312.130 |
280.950 |
|
Depreciation |
|
42.140 |
41.620 |
|
Profit
Before Tax |
|
269.990 |
239.330 |
|
Tax |
|
23.660 |
24.770 |
|
Reported PAT |
|
246.330 |
214.560 |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
246.330 |
214.560 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
18.64
|
5.33 |
6.01
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
22.53
|
9.40 |
9.70
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
37.28
|
12.94 |
27.55
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.19
|
0.11 |
0.09
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.19
|
0.26 |
0.14
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.94
|
2.41 |
3.27
|
LOCAL AGENCY FURTHER INFORMATION
NOTE:
SUNDRY CREDITORS DETAILS
ARE NOT AVAILABLE
HISTORY:
Subject was established in 1989 and headquartered in
Committed to innovation, Subject works with customers to help them get
to market ahead of the competition, and stay focused on new product development
and manufacturing. With deep understanding of the communications industry, access
to current and emerging technologies, mature development processes, global
resources and a proven track record, Subject creates complete solutions to help
clients succeed. Clients choose Subject for the comprehensive range of
application solutions and services, backed by a proven reputation for expert
support and high quality. Their growth strategy is offering compelling value
propositions to their customers by spotting and exploiting opportunities to
help them grow. Each of Subject product initiatives – wireless protocol stacks,
multimedia subsystems and application framework address a specific market need.
In addition to being directly involved in the development of a variety
of technologies, Subject is a member of premier technology bodies including
ITU, 3GPP, GCF, MPEG-ISO, WiMAX, NFC, DLNA and ATM, DSL and SDR forums. Subject
is SEI CMM Level 5 certified and its’ solutions are backed by ISO 9001:2000,
ISO 27001 and TL 9000 certifications. Subject proprietary quality management
systems strengthen our business offerings and ensuring customer satisfaction.
Subject commitment to environment is highlighted by its ISO 14001
certification.
SCHEME
OF ARRANGEMENT
The Company had approached the Hon’ble High Court of
Karnataka for its sanction to create a Business Restructuring Reserve from out
of the Securities Premium Account in terms of a Scheme under Section 391 / 394
of the Companies Act, 1956. The Scheme provides for the Business Restructuring
Expenses to be directly adjusted against the said Business Restructuring
Reserve. Pursuant to the Scheme and as approved by the Hon’ble High Court of
Karnataka, vide its order dated March 31, 2010, a sum of Rs.14,57.808 Millions
has been transferred from the Securities Premium Account and credited to
Business Restructuring Reserve Account. The Company has adjusted Rs.151.970
Millions, being impairment loss on capitalized software, which was charged to
Profit and Loss Account in the previous year, being considered as a
Restructuring Expense incurred after the Appointed Date, i.e. April 1, 2008,
has been credited to Profit and Loss Appropriation Account and adjusted against
Restructuring Reserve Account.
Had the Scheme not prescribed the aforesaid treatment, the
balance in Profit and Loss Account would have been lower by Rs.1,51.970
Millions and Business Restructuring Reserve higher by Rs.1,51.970 Millions,
with no impact on overall reserves of the Company.
CORPORATE
SOCIAL RESPONSIBILITY (CSR)
A s a responsible Corporate Citizen, the Company is committed
to contributing to the society, environment and community. The focus areas in
which the Company strives to “Make a Difference Everyone” or “MaDE” and the
endeavor is to serve the community, environment, differently abled citizens,
children, underprivileged and academia. Sasken translates this into action by
providing financial and non-financial support, as well as extending and
encouraging volunteer participation in CSR initiatives.
The Company has been supporting Vathsalya Charitable Trust
over several years. Vathsalya is an NGO, working for the welfare of orphan
children. Sasken bears all their medical bills, on monthly basis subject to a
pre-fixed limit. The Company also extends its support to other non-governmental
voluntary organizations on a case-by-case basis.
‘Prakruti Mela’ is conducted every year at Sasken premises
to promote sale of environmentally friendly products through partner vendors.
Awareness programs on AIDS, Cancer and CSR are conducted at regular intervals.
Support for setting up stalls is provided for non profit organizations for sale
of their products to employees.
SUBSIDIARY
COMPANIES
As required under Accounting Standard 21, Consolidated
Financial Statements incorporate the results of the following subsidiary
companies, viz. (a) Sasken Network Engineering Limited, (b) Sasken Network
Solutions Inc., USA, (c) Sasken Communication Technologies Mexico S.A. de C.V.,
(d) Sasken Communication Technologies (Shanghai) Company Limited (e) Sasken
Communication Technologies Oy, (f) Sasken Finland Oy, (g) Sasken Inc.
In terms of the Central Government approval under Section
212(8) of the Companies Act, 1956, the audited Financial Statements along with
the reports of the Board of Directors and the Auditors pertaining to the above
subsidiaries have not been attached to this Report. The Financial Statements of
the said subsidiaries will be kept for inspection by any investor at the
registered office of the Company and that of the subsidiary companies. Investors
who want to have a copy of the above may write to the Company Secretary at the
registered office.
DIRECTORS
Mr. Sanjay M. Shah and Dr. G. Venkatesh retire by rotation
at the ensuing Annual General Meeting and being eligible, offer themselves for
re-appointment.
Mr. Kiran S. Karnik was co-opted as an Additional Director
on October 12, 2009 and as such he holds office upto the date of this Annual
General Meeting. A notice under Section 257 of the Companies Act, 1956 has been
received from a member signifying his intention to propose Mr. Kiran S. Karnik
as a candidate for the office of Director and accordingly a resolution is
placed before the members at the forthcoming Annual General Meeting.
At its meeting held on April 22, 2010, the Board of Directors
considered the valuable contributions made by Ms. Neeta S. Revankar, CFO and
Global Head HR, IT and Administration, ever since she joined the Company in
1995 and decided to elevate her to the Board with immediate effect as a Whole
Time Director. Towards this end, the Board co-opted her as an Additional
Director to hold office until the forthcoming Annual General Meeting. A notice
under Section 257 of the Companies Act, 1956 has been received from a member
signifying his intention to propose Ms. Neeta S. Revankar as a candidate for
the office of a Whole Time Director and accordingly a special resolution is
placed before the members at the forthcoming Annual General Meeting.
At the Annual General Meeting held on June 10, 2005, Mr.
Rajiv C. Mody and Mr. Krishna J. Jhaveri were appointed as Chairman and
Managing Director and Whole Time Director respectively for a period of five
years and their term expired on March 31, 2010. The Board at its meeting held
on April 22, 2010 re-appointed them for a further period of five years with
effect from April 1, 2010.
The terms of appointment of Mr. Rajiv C. Mody and Mr.
Krishna J. Jhaveri are detailed in the Notice convening the Annual General
Meeting for members’ approval. The remuneration payable to Mr. Rajiv C. Mody as
Chairman and Managing Director and the remuneration payable to Mr. Krishna J.
Jhaveri, Dr. G. Venkatesh and Ms. Neeta S. Revankar as Whole Time Directors for
the year 2010-11 are detailed in the Notice convening the Annual General
Meeting for members’ approval.
ISO 14001
Company is compliant with the Environmental Management
System Standard - ISO 14001, an International Standard. Company is committed to
be a responsible member of the communities in which it works. This reaffirms
the Company as a responsible corporate citizen.
ISO 27001
Company adheres to the Information Security Management
System - ISO 27001, an International Standard. This is important for assuring
the customers of the commitment in protecting their IP as well as sensitizing
all employees about confidentiality and integrity of information.
TL 9000 (including ISO 9001:2008)
Company is compliant with the telecom industry specific
Quality Management System Standard - TL 9000 R5.0, an International Standard which
by definition includes the ISO 9001:2008 requirements.
ISO/IEC 17025
Sasken Test Lab is compliant with the Test Lab specific
Quality Management System Standard - ISO/IEC 17025, an International Standard.
This is important for assuring quality and reliability of test lab reports as
required by the customers to meet Global Communication Forum requirements.
DESCRIPTION
OF BUSINESS
Subject is a provider of telecommunication software services
and solutions to network equipment manufacturers, mobile terminal vendors and
semiconductor companies around the world.
Company delivers end-to-end solutions that enable richer
content delivery on next generation networks.
Company has its headquarters in
INVESTMENTS IN SUBSIDIARIES AND JOINT VENTURES
(a) As at March 31, 2010, the Company has invested Rs.90.244
Millions for its 49.87% equity share in ConnectM Technology Solutions Private
Limited (“ConnectM”). ConnectM has incurred losses since the date of
incorporation and the 49.87% share of cumulative loss incurred as of March 31,
2010 is Rs.80.035 Millions. The Company believes that ConnectM is currently in
the initial stages of business development and these losses are initial start
up losses and hence considers the diminution in value of investment as
temporary.
(b) As at March 31, 2010, the Company and Tata AutoComp
Systems Limited (“TACO”) each hold 50% of the equity in Taco Sasken Automotive
Electronics Limited (“TSAE”). The Board of Directors of TSAE has, at the
meeting held on January 09, 2009, decided to close down the operations of the
company. Accordingly the financial statements of TSAE have not been prepared
under the going concern assumption and all assets have been stated at
realizable values and all liabilities have been considered at their estimated
settlement value. Considering the closure of operations of TSAE, the Company
has made a provision of Rs.75.639 Millions as at March 31, 2010 towards
diminution in the value of its investments in TSAE
(c) As at March 31, 2010, the Company has total investment
of Rs.54.286 Millions in Sasken Communication Technologies (
CONTINGENT
LIABILITIES
Contingent liabilities towards income taxes and indirect taxes not provided for amount to Rs.155.270 Millions and Rs.118.893 Millions respectively.
There are certain claims made against the Company by an invested company, which are a subject matter of arbitration proceedings. In the view of the management of the Company such claims are frivolous and are not tenable. No provision has been made for such claims pending completion of legal proceedings as the amount of claims are currently not ascertainable
(Rs. In Millions)
|
Particulars
|
31.03.2010 |
31.03.2009 |
|
|
|
|
|
Bank Guarantees |
28.735 |
20.385 |
|
Corporate Guarantee on behalf of subsidiaries |
1033.398 |
1247.470 |
|
|
|
|
BOARD OF DIRECTORS
The brief profile of each of the Directors is given below:
Mr. Rajiv C Mody (DIN 00092037), 50 years, Chairman and Managing
Director and one of the founders of the Company.
Founded Sasken in 1989 at
He qualified in electrical engineering degree from
Mr. Mody is also Chairman of Sasken Network Engineering Limited, Sasken
Communication Technologies Mexico S.A. de C.V., Sasken Communication
Technologies Oy,
He is a member of the Audit Committee of ConnectM Technology Solutions
Private Limited
Mr. Krishna J Jhaveri (DIN 00102729), 53 years, Wholetime Director and
one of the founders of the Company. He completed his Bachelors degree in
Mechanical Engineering from
Mr. Jhaveri is a Director in Sasken Communication Technologies Mexico
S.A. de C.V., Axiom Design Automation Inc. USA, Sasken Network Solutions Inc.
Dr. G Venkatesh (DIN 00092085), 46 years, Wholetime Director and
Corporate Chief Technology and Strategy Officer of the Company.
Dr. Venkatesh started his research career at India’s premier research
institute TIFR, Bombay, then moved to the Computer Science department of IIT
Bombay where he spent 8 years teaching and researching in the areas of temporal
logic, functional/logic programming, and applications of logic and languages to
VLSI design, which resulted in about 50 papers in international conferences and
journals in these areas.
He made his transition to the industry in 1990 when Sasken was in its
start up phase and moved full time to Sasken as Technology head in 1995. He has
played various managerial roles at Sasken and is currently a board member and
Chief Technology and Strategy Officer.
Dr. Venkatesh also participates in teaching and research at IIM
Bangalore, where his interests revolve around applying game theory to strategic
thinking, specifically in the telecom and semiconductor industries and in IT
outsourcing.
Dr. Venkatesh is a graduate in Electronics from IIT (Indian Institute of
Technology)
Other positions held by Dr. Venkatesh are Governing council member,
Center for Excellence in Wireless Technology (CeWiT), IIT Madras; Member,
Scientific Council, Institute for Computer Sciences, Social-Informatics and
Telecommunications Engineering (ICST); Member of the Board of Studies, School
of Computer Science, IGNOU; Member, Expert Group, Focus Group on NGN, TEC,
Government of India; Governing council member of the Indian Association for
Research in Computing Science (IARCS); President, TIFR Alumni Association;
Steering Committee Chair for the IEEE/ICST conferences on software and
middleware (Comsware); Co-ordinator for the Indo-French Center initiative on
Mobile Multimedia.
He is a Director of Sasken Network Engineering Limited, TACO Sasken
Automotive Electronics Private Limited and ConnectM Technology Solutions
Private Limited He is also an Advisory Board Member of 3D Solid Compression
Private Limited.
He is a member of Compensation Committee of ConnectM Technology
Solutions Private Limited
Dr. Ashok Jhunjhunwala (DIN 00417944), 54 years, an Independent Director
of the Company.
He is Professor of the Department of Electrical Engineering, Indian
Dr. Jhunjhunwala leads the Telecommunications and Computer Networks
group (TeNeT) at IIT Madras. This group is closely working with industry in the
development of a number of Telecommunications and Computer Network Systems.
TeNeT group has incubated a number of technology companies which work in
partnership with TeNeT group to develop world class Telecom and Banking
products for Rural Markets.
Dr. Jhunjhunwala was awarded Padma Shri in 2002. He has been awarded
Shanti Swarup Bhatnagar Award in 1998, Dr. Vikram Sarabhai Research Award for
the year 1997, Millennium Medal at Indian Science Congress in the year 2000 and
H.K. Firodia Award for “Excellence in Science and Technology” for the year
2002, Shri Om Prakash Bhasin Foundation Award for Science and Technology for
the year 2004, Jawaharlal Nehru Birth Centenary Lecture Award by INSA for the
year 2006 and IBM Innovation and Leadership.
Forum Award by IBM for the year 2006. He is a Fellow of
Wireless World Research Forum, Indian National Academy of Engineering,
He is a Director of 3i Infotech Limited, Bharat Electronics Limited, National Research Development Corporation Limited, Polaris Software Lab Limited, State Bank of India, Tata
Teleservices (Maharashtra) Limited, Tejas
Networks Limited, Midas Communication
Technologies Private Limited, Vishal Bharat Comnet, National Internet Exchange
of India Limited, and Institute for
Development and Research in Banking Technology.
He is also a member – Advisory Board/Governing Council of
Scientific Advisory to the Prime Minister of
He is the Chairman of the Audit Committee of Tata
Teleservices (
He is a member of the Remuneration Committee of Polaris
Software Lab Limited, Tejas Networks Limited, and also of Tata Teleservices (
He is also a member of the Investor Grievance Committee of
Polaris Software Lab Limited, He is the Chairman - Technology Committee of
State Bank of
He is also a Member of the Nomination Committee of Tata
Teleservices (
Mr. Bansi S Mehta (DIN 00035019), 72 years, an
Independent Director of the Company.
He is a first class graduate in commerce and Fellow Member
of the Institute of Chartered Accountants of India (Institute). He won Gold
Medal both in graduation and final examination of the Institute. Mr. Mehta is
an accountant in practice and deals with matters on taxation, accountancy, valuation,
mergers and acquisitions. He is a former President of the Institute of
Chartered Accountants of India and has been a member of various statutory and
non-statutory advisory committees on company law, taxation, accounting, etc.
Mr. Mehta is a Director of Atul Limited., Bharat Bijlee
Limited, Ceat Limited., Century Enka Limited, Clariant Chemicals India Limited,
Gillette India Limited., Housing Development Finance Corporation Limited.,
ILandFS Investment Managers Limited, J.B. Chemicals and Pharmaceuticals
Limited, National Securities Depository Limited, Pidilite Industries Limited.,
Proctor and Gamble Hygiene and Health care Limited., SBI Capital Markets
Limited, Sudarshan Chemical Industries Limited, Uhde India Limited (Alt.
Director) and Jumbo World Holdings Limited (BVI).
He is the Chairman of the Audit Committee of IL and FS
Investment Managers Limited, J.B. Chemicals and Pharmaceuticals Limited,
Pidilite Industries Limited, Sudarshan Chemical Industries Limited. He is a
member of the Audit Committee of Atul Limited, Century Enka Limited., Gillette
India Limited, Housing Development Finance Corporation Limited and Proctor and
Gamble Hygiene and Health care Limited.
He is also a member of Remuneration Committee of Gillette
India Limited., and Member of Compensation Committee of Housing Development
Finance Corporation Limited., and IL and FS Investment Managers Limited.
Mr. Jyotindra B Mody (DIN 00034851), 79 years,
Non-Executive Director and one of the Promoters of the Company.
He is the Chairman and Managing Director of J.B. Chemicals
and Pharmaceuticals Limited. He completed his Inter Science from
58
Mr. Mody is also a Director of Ifiunik Pharmaceuticals
Limited, J.B. Life Science Overseas Limited., Unique Pharmaceuticals
Laboratories Limited., Ansuya Mody Securities Private Limited., Jyotindra Mody
Holdings Private Limited and Synit Drugs Private Limited. He is a Member of
Shareholders/ Investor Grievance Committee of J.B. Chemicals and
Pharmaceuticals Limited.
Professor J Ramachandran (DIN 00004593), 50 years, an
Independent Director of the Company.
He is BOC chair professor of business policy at the Indian
Institute of Management (IIM),
Professor Ramachandran is a Director of Sasken Communication
Technologies
He is Chairman of the Audit Committee of Reliance
Communications Limited and Member of the Audit Committee of Reliance
Communication Infrastructure Limited and Redington India Limited.
He is Chairman of Shareholders/Investors Grievance Committee
of Redington India Limited and Member of Shareholders/Investors Grievance
Committee of Reliance Communications Limited.
He is also Member of the Remuneration Committee of Reliance
Communications Limited and Reliance Communication Infrastructure Limited.
Mr. Pranabh D Mody (DIN 00035505), 44 years,
Non-Executive Director and one of the Promoters of the Company.
He attained his Bachelor Degree in Pharmacy from Bombay
College of Pharmacy in 1984 and his Masters in Business Administration from
Mr. Pranabh D Mody also holds directorships in Unique
Pharmaceutical Laboratories Limited, Ifiunik Pharmaceuticals Limited, Dinesh
Mody Securities Private Limited, Kumud Mody Securities Private Limited,
Lifetime Healthcare Private Limited and Biotech Laboratories Pty. Limited.
South Africa.
Mr. Sanjay M Shah (DIN 00375679), 44 years, an
Independent Director of the Company.
He is the Chief Executive Officer of Skelta Software Private
Limited. He did his Bachelor of Technology from the Indian Institute of
Technology,
Mr. Vinod K Dham (DIN 00036900), 57 years, an
Independent Director of the Company.
He has done his Bachelors in Electrical Engineering from the
Delhi College of Engineering and Masters in Electrical Engineering from
Mr. Dham is also Director of Satyam Computer Services
Limited., Telsima Communications Pvt. Limited., Insilica Inc. USA, Montalvo
Systems, USA, Nevis Networks Inc.
He is a Member the Compensation Committee of Satyam Computer
Services Limited.
Mr. Shirish B.Mody (DIN 00035051), 67 years, is an
Alternate Director for Mr. Jyotindra B. Mody.
He is a Wholetime Director of J.B. Chemicals and
Pharmaceuticals Limited. He is proficient not only in the technical functions
such as manufacturing, quality control, research and development but also in
marketing, planning and control, etc. He has scientific innovative skill in
pharmaceutical research. He has successfully done research in the field of
Metrogyl Denta Gel, Rantac CD Formulations, and in number of Ayurvedic and
Herbal preparations, bulk drugs, etc. Due to his research aptitude and
abilities, J.B. Chemicals and Pharmaceuticals Limited. was able to obtain more
than 100 patents, both in
Mr. Mody is also a Director of Ifiunik Pharmaceuticals
Limited, J.B. Life Science Overseas Limited., Unique Pharmaceutical
Laboratories Limited., Bharati S. Mody Investments Private Limited., Shirish B
Mody Investments Private Limited, Synit Drugs Private Limited and J.B. SEZ
Private Limited
WEBSITE
DETAILS:
PROFILE:
Company is an embedded communications Solutions Company,
that helps businesses across the communications value chain accelerate product
development life cycles.
Company offers a unique combination of research and
development consultancy, wireless software products and software services, and
works with Network OEMs, Semiconductor Vendors, Terminal Device OEMs and
Operators across the world. Global Fortune 500 and Tier 1 companies in these
segments are part of Sasken's customer profile.
Established in 1989, Company employs 3,300+ people operating
from state-of-the-art research and development centers in Bangalore, Chennai,
Hyderabad, Noida and Pune (India), Helsinki, Kaustinen, Tampere and Oulu
(Finland), Bochum (Germany), Monterrey (Mexico), Seoul (Korea).
Committed to innovation, company works with customers to
help them get to market ahead of the competition, and stay focused on new product
development and manufacturing. With deep understanding of the communications
industry, access to current and emerging technologies, mature development
processes, global resources and a proven track record, Clients choose Sasken
for the comprehensive range of application solutions and services, backed by a
proven reputation for expert support and high quality.
In addition to being directly involved in the development of
a variety of technologies, company is a member of premier technology bodies including
ITU, 3GPP, GCF, MPEG-ISO, WiMAX, NFC, Open Handset Alliance, DLNA and ATM, DSL
and SDR forums.
Company is SEI CMM Level 5 certified and its’ solutions are
backed by ISO 9001:2000, ISO 27001 and TL 9000 certifications. Company’s
proprietary quality management systems strengthen our business offerings and
ensure client satisfaction. Company’s commitment to environment is highlighted
by its ISO 14001 certification.
OVERVIEW
ASIC Design Services
With over 1500+ man years of experience in the VLSI space, company delivers ASIC and FPGA services to it’s customers in the Wireless, Communications, Consumer, Automotive, Networking and Defense domains. Leveraging from its strong embedded, board and mechanical design team, company also offers turnkey solutions to its customers and partners.
Silicon Platform Software Services
Company offers services across all the layers of software required to build complete solutions around chipsets/ platforms. The services are, broadly, in the area of development and testing.
Handset Technology Services
With an in-depth understanding of the handset ecosystem,
company’s offerings in niche competency areas enable to launch multiple models
with cost and time-to-market advantages.
Wireless Infrastructure Services
Because of different product life cycles, wireless equipment vendors face a tremendous challenge to support 2G, 2.5G and 3G simultaneously. In addition, GSM, TDMA and CDMA technologies each follow a unique migration path to 3G, forcing to manage diversity in the overall migration roadmap.
Operations Support Systems Services
Company offers a comprehensive suite of software services for development and maintenance of various software components required for implementing a network support system in the field.
Convergence Services
Company’s rich expertise and in-depth understanding of GPRS, CDMA, Broadband DSL, Wireline and various transport technologies and proficiency in developing complex solutions enables us to help their customers in building new generation IP networks and solutions.
Data Networks Services
Company offers a suite of outsourcing service offerings - new product development, test services, porting services and sustenance and support - for Data Network Equipment vendors and Management Software Vendors.
Sasken Network Engineering Services
Company’s range of value-added engineering services business challenges successfully. Planning, deployment and operating services, for wireless networks, are backed by domain expertise and years of experience.
Hardware Design and Test Services
In hardware design, the design costs increase during the RandD process as the number of proto rounds increases. Also the estimated time to the market might not be achieved if unforeseen additional proto rounds are needed.
Test Lab Services
Company provides test services in the rapidly growing Cellular Conformance and Pre-Conformance testing market including product testing and component level testing, ensuring terminal quality and network compatibility as mandated by the GCF and the PTCRB.
Offshore Development Centers
Offshore outsourcing has become a popular option for
companies seeking an affordable, high quality alternative to managing their
RandD operations. To meet this need, company has developed a program for to set
up and manage an offshore delivery center in
E-Learning
For any organization, meeting the training needs of a geographically spread
workforce through the traditional classroom training mode is expensive and time
consuming. Further, the qualitative effectiveness of such training has been and
is still uncertain. So how can an organization reduce costs and still ensure
quality training for its employees who need training to master.
ASIC
DESIGN SERVICES
With over 1500+ man years of experience in the VLSI space,
Sasken delivers ASIC services and FPGA services to it’s customers in
the Wireless, Communications, Consumer, Automotive, Networking and Defense
domains. Leveraging from its strong embedded, board and mechanical design team,
Sasken also offers turnkey solutions to its customers and partners.
Sasken ASIC expertise spans across 180, 130, 90, 65 and 45 nm technology nodes.
With over 70 ASIC’s delivered till date to its customers and strong focus
on RTL design and functional verification methodologies, Sasken
promises to deliver ASIC solutions to its customers. Sasken’s partnership with
6 of the top 10 semiconductor vendors of the world is also a testimony to
Sasken’s capability as an ASIC services partner to its customers.
Sasken’s FPGA experience stems from it’s extensive work in porting high
density, high gate ASIC’s onto various FPGA platforms (ASIC prototyping on
FPGA). Sasken offers this unique service to it’s customer, where Sasken
combines the knowledge gained in complex ASIC systems porting onto multiple
FPGA’s and uses ASIC backend methodologies to provide state of art FPGA
services. Sasken
also offers ASIC Emulation services and prototyping services for pre-silicon
validation of ASICs. Sasken houses a native Cadence palladium emulator and also
provides solutions to customers on Mentor Veloce platforms.
Extending it’s partner ecosystem, Sasken also partners as an
ARM Approved Design Center Program
highlighting it’s growing momentum for ARM® technology in the
ASIC market. Sasken’s vast amount of knowledge and expertise on the variety of
ARM cores (ARM11, Cortex-A, M, R series, Trustzone) combined with ARM’s
technology and library accesses, enables it to cater to various customers with
precise ASIC and embedded solutions.
They offer the following services to out customers:
§
Specification to end Product -
Turnkey
§
RTL to Verified Netlist
§
Netlist to GDSII (Physical Design
Services)
§
Analog and Mixed Signal Services
§
Derivative Design and Support
§
ARM based SoC Consultancy
Services
§
FPGA Design and Development
PRESS
RELEASE:
Sasken’s Annual Report shines again, wins another Gold at
LACP’s 2010 Spotlight Awards Global Communications Competition
Bangalore, 9th November, 2010 –
Sasken Communication Technologies Limited (BSE: 532663 and NSE: SASKEN), a
leading Indian communications solutions company, announced today that their
Annual Report for financial year 2009-2010 has won the Gold Award in the 2010 Spotlight
Awards Global Communications Competition, held by the League of American
Communications Professionals (LACP). Sasken has triumphed at
the LACP twice before – with the Gold award during 2006 and the Platinum award
in 2007.
The world has witnessed tremendous economic growth in the
last decade. Although this has brought in opportunities aplenty, it has fueled
environmental degradation and decline. Therefore, this presents a need for
sustainable development and environment friendly practices that also spell
economic success for the corporate sector.
Sasken recognises the call of the hour and is working
towards a sustainable environment through a socially responsive style of
operation. In short, Sasken is geared to meet tomorrow because they are
Lean-Mean-Green!
Sasken’s Annual Report 2009-2010 bears testimony to this philosophy. Working
with electronic waste materials, the team has created models that best describe
the Lean, Mean and Green aspects of Sasken. The models of the Cheetah, the Ant,
the Eagle, the Windmill and the Sun demonstrate the perfect synergy with which
man, machine and nature co-exist. All the waste components used to create the
aesthetic models are from discarded electronic equipment, once in use at their
centres. This is in harmony with their philosophy of reducing, reusing,
re-cycling and re-engineering – not just in infrastructure but in every aspect
of the organisation’s development and operations too; not just for today, but
in anticipation of and planning for a sustainable tomorrow. What’s
more? To elucidate this further, Sasken points out that each Annual Report cost
them less than US $ 1!
Speaking on the occasion Swami Krishnan, Head,
Corporate Communications at Sasken, said, “This is a proud
moment for Sasken. We have always considered our Annual Report not merely as a
statutory document, but an important medium of brand communication for
developing a stakeholder connect. The consistent wins at the LACP events are a validation
of our approach and efforts. It is also a matter of pride for us that we have
yet again made
“Innovation is a core value at Sasken
and our driving force. This Annual Report is born out of the same curiosity and
passion for doing something different and path breaking. We created all the
models using junk material lying in our backyard.” said Syed
Shahid Mehdi, Manager Marketing and Corporate Communications,
Sasken.
“This year’s Annual Report for Sasken Communication
Technologies Limited proves to be remarkable in light of tremendous
competition,” said Christine Kennedy, Managing Director, LACP, “ More than 1,100 entries were
received for the 2010 Spotlight Awards, comprising submissions from more than a
dozen countries. The first impression presented by this project, as well as the
narrative and visual design are superb…”
Exclaimed one of the judges, “This submission is rather
in-depth; all of the information that could possibly be sought is presented in
one attractive set of communications Excellent.”
ABOUT LACP
LACP was established in 2001 in order to create a forum within the public
relations industry that facilitates discussion of best-in-class practices
within the profession, while also recognizing those who demonstrate exemplary
communications capabilities.
LACP 2010 Spotlight Awards Global Communications Competition
The competition was judged by a field of communications professionals affiliated with LACP. Their expertise spans a broad spectrum of PR functions ranging from corporate, executive, and internal communications for Fortune 500 organizations to product, service, and non-profit publicity expertise. Judges are screened to ensure that there are no conflicts of interest.
ABOUT SASKEN
Sasken Communication Technologies Limited (BSE: 532663 & NSE: SASKEN) is an
embedded communications solutions company that helps businesses across the
communication value chain accelerate product development life cycles.
Sasken offers a unique combination of research and
development consultancy, wireless software products, software services and
network engineering services, and works with Network OEMs, Semiconductor
Vendors, Terminal Device OEMs and Operators across the world. Global Fortune
500 and Tier 1 companies in these segments are part of Sasken's customer
profile.
Established in 1989, Sasken employs over 3,500 people at its
offices in
DISCLAIMER ON FORWARD LOOKING STATEMENTS:
Certain statements in this release concerning our future
growth prospects are forward-looking statements, which involve a number of
risks, and uncertainties that could cause actual results to differ materially
from those in such forward-looking statements due to risks or uncertainties
associated with our expectations with respect to, but not limited to, our
ability to successfully implement our strategy and our growth and expansion
plans, technological changes, our exposure to market risks, general economic
and political conditions in India which have an impact on our business
activities or investments, changes in the laws and regulations that apply to
the Indian IT services industry, including with respect to tax incentives and export
benefits, adverse changes in foreign laws, including those relating to
outsourcing and immigration, increasing competition in and the conditions of
the Indian and global IT services industry, the prices we are able to obtain
for our services, wage levels in India for IT professionals, the loss of
significant customers the monetary and interest policies of India, inflation,
deflation, unanticipated turbulence in interest rates, foreign exchange rates,
equity prices or other rates or prices, the performance of the financial
markets in India and globally, changes in domestic and foreign laws,
regulations and taxes and changes in competition in the information
technology/telecommunication industries. Additional risks that could affect our
future operating results are more fully described in our Red herring filing.
The company does not undertake to update any forward-looking statement that may
be made from time to time by or on behalf of the Company.
CMT REPORT (Corruption, Money Laundering and 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.45.37 |
|
|
1 |
Rs.70.04 |
|
Euro |
1 |
Rs.58.98 |
SCORE and RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
59 |
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 and 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.