MIRA
INFORM REPORT
|
Report Date : |
31.01.2011 |
IDENTIFICATION DETAILS
|
Name : |
ZTE TELECOM INDIA PRIVATE LIMITED (w.e.f. December 1, 2005) |
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Formerly Known
As : |
ZTE KANGXUN TELECOM COMPANY INDIA PRIVATE LIMITED |
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Registered
Office : |
6th Floor, Tower B, Building No.10, |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
22.02.2005 |
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Com. Reg. No.: |
05-035635 |
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CIN No.: [Company Identification
No.] |
U32204HR2005PTC035635 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
RTKZ00090G |
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PAN No.: [Permanent Account No.] |
AAACZ1958K |
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Legal Form : |
Private Limited Liability Company |
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Line of Business
: |
Marketer of telecom equipments and provide infrastructure solutions in
the field of telecommunications. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca (13) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is a subsidiary of ZTE Corporation, The company can be considered for business dealings on a secured trade
terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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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 |
LOCATIONS
|
Registered Office : |
6th Floor, Tower B, Building No.10, |
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Tel. No.: |
91-124-4323000 |
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Fax No.: |
91-124-4067329/ 30 |
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E-Mail : |
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Website : |
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Head Quarter : |
3/ F, A Wing, ZTE Plaza, Keji Road South, Hi-Tech Industrial Park,
Nanshan District, Shenzhen, P.R. China |
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Tel No.: |
+ 86 755 26770000 |
|
Fax No.: |
+ 86 755 26770584 |
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E-Mail : |
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|
Website : |
DIRECTORS
As on 30.09.2010
|
Name : |
Dr. Dilip Kumar Ghosh |
|
Designation : |
Managing Director |
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Address : |
S-439, Greater
Kailash, |
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Date of Birth/Age : |
30.11.1936 |
|
Date of Appointment : |
01.10.2006 |
|
DIN No.: |
00077205 |
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|
|
Name : |
Mr. Dabin Huang |
|
Designation : |
Director |
|
Address : |
A-12/3, Qutab
Enclave, DLF Phase-I, Gurgaon, |
|
Date of Birth/Age : |
12.12.1971 |
|
Date of Appointment : |
01.05.2007 |
|
DIN No.: |
02282364 |
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|
|
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Name : |
Mr. Wangxing Zhao |
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Designation : |
Director |
|
Address : |
C-73, Oakwood
Estate, DLF Phase-II, Gurgaon, |
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Date of Birth/Age : |
17.10.1975 |
|
Date of Appointment : |
30.09.2009 |
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DIN No.: |
02690273 |
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|
|
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Name : |
Mr. Fang Zhou |
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Designation : |
Director |
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Address : |
C-73, Oakwood
Estate, DLF Phase-II, Gurgaon, |
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Date of Birth/Age : |
08.12.1976 |
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Date of Appointment : |
30.09.2009 |
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DIN No.: |
02699063 |
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Name : |
Mr. Rong Wu |
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Designation : |
Director |
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Address : |
C-73, Oakwood
Estate, DLF Phase-II, Gurgaon, |
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Date of Birth/Age : |
29.12.1972 |
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Date of Appointment : |
30.09.2009 |
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DIN No.: |
02722499 |
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|
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Name : |
Mr. De Jun Xu |
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Designation : |
Additional Director |
|
Address : |
A-92, Oakwood Estate, DLF Phase-II, Gurgaon – 122 002, |
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Date of Birth/Age : |
23.08.1967 |
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Date of Appointment : |
13.10.2010 |
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DIN No.: |
03292435 |
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Name : |
Mr. Wang Tao |
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Designation : |
Additional Director |
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Address : |
3F, A-Wing, ZTE Plaza, Keji Road, South - Hi-Tech Industrial Park,
Nanshan District, Shenzhen, P.R. China |
|
Date of Appointment : |
03.05.2005 |
KEY EXECUTIVES
|
Name : |
Mr. Manish Kumar |
|
Designation : |
Company Secretary |
|
Address : |
I-56/A, Gali No.-4, Garhwali Mohalla, |
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Date of Birth/Age : |
02.12.1979 |
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Date of Appointment : |
01.05.2009 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2010
|
Names of Shareholders |
|
No. of Shares |
|
ZTE Corporation, |
|
168816869 |
|
ZTE Kangxun Telecom Company Limited |
|
1 |
|
Total
|
|
168816870 |
As on 30.09.2010
|
Equity Share Breakup |
|
Percentage of Holding |
|
Category |
|
|
|
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Marketer of telecom equipments and provide infrastructure solutions in
the field of telecommunications. |
GENERAL INFORMATION
|
Bankers : |
Not Available |
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Facilities : |
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Banking
Relations : |
-- |
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Financial Institution : |
Sojitz Corporation,
1-20, Akasaka 6-Chome, Minato-Ku,, |
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Auditors : |
|
|
Name : |
S.R. Batliboi and Associates Chartered Accountants |
|
Address : |
Golf View Corporate Tower-B, Sector-42, Gurgaon – 122 001, |
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Holding Company : |
ZTE Corporation, Shenzhen, P.R. China |
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Fellow
Subsidiaries : |
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CAPITAL STRUCTURE
As on 30.09.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
200000000 |
Equity Shares |
Rs.10/- each |
Rs.2000.000 millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
168816870 |
Equity Shares |
Rs.10/- each |
Rs.1688.169
millions |
|
|
|
|
|
Of these 168816869
equity shares are held by ZTE 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 |
1688.169 |
1289.074 |
50.987 |
|
|
2] Share Application Money Pending Allotment |
0.000 |
399.095 |
600.354 |
|
|
3] Reserves & Surplus |
0.000 |
0.000 |
0.000 |
|
|
4] (Accumulated Losses) |
(2369.902) |
(2215.297) |
(349.658) |
|
|
NETWORTH |
(681.733) |
(527.128) |
301.683 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.930 |
5.248 |
12.506 |
|
|
2] Unsecured Loans |
594.695 |
760.695 |
494.695 |
|
|
TOTAL BORROWING |
595.625 |
765.943 |
507.201 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
(86.108) |
238.815 |
808.884 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
157.303 |
102.155 |
120.245 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.031 |
0.031 |
0.031 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
145.325 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
51.527
|
0.000 |
457.958 |
|
|
Sundry Debtors |
6056.918
|
4635.584 |
4061.941 |
|
|
Cash & Bank Balances |
392.524
|
445.216 |
65.474 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
1772.110
|
1457.924 |
1499.596 |
|
Total
Current Assets |
8273.079
|
6538.724 |
6084.969 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
4796.253
|
4400.764 |
3689.854 |
|
|
Other Current Liabilities |
2871.138
|
1411.714 |
1844.362 |
|
|
Provisions |
849.130
|
589.617 |
7.470 |
|
Total
Current Liabilities |
8516.521
|
6402.095 |
5541.686 |
|
|
Net Current Assets |
(243.442)
|
136.629 |
543.283 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
(86.108) |
238.815 |
808.884 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
|
2916.347 |
1857.337 |
3546.860 |
|
|
|
|
2909.280 |
1760.088 |
885.639 |
|
|
|
Other Income |
90.197 |
18.680 |
9.379 |
|
|
|
TOTAL (A) |
5915.824 |
3636.105 |
4441.878 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of goods sold |
2637.950 |
2081.863 |
3875.886 |
|
|
|
Cost of services |
1498.446 |
704.912 |
133.046 |
|
|
|
Personnel Expenses |
628.813 |
305.582 |
202.168 |
|
|
|
Administrative & Other Expenses |
1775.405 |
1266.831 |
667.412 |
|
|
|
TOTAL (B) |
6540.614 |
4359.188 |
4878.512 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(624.790) |
(723.083) |
(436.634) |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
(525.984) |
919.206 |
8.473 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(98.806) |
(1642.289) |
(445.107) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
49.994 |
56.648 |
11.201 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
(148.800) |
(1698.937) |
(456.308) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
5.805 |
166.701 |
(118.578) |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
(154.605) |
(1865.638) |
(337.730) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(2215.297) |
(349.659) |
(11.928) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(2369.902) |
(2215.297) |
349.658 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Service Charges |
432.506 |
569.004 |
601.792 |
|
|
|
Reimbursement of Expenses |
0.000 |
0.000 |
548.882 |
|
|
TOTAL EARNINGS |
432.506 |
569.004 |
1150.674 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Trading Goods |
1902.118 |
453.614 |
1.204 |
|
|
TOTAL IMPORTS |
1902.118 |
453.614 |
1.204 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(0.99) |
(22.11) |
(86.16) |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
(2.61)
|
(51.31)
|
(7.60)
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(5.10)
|
(91.47)
|
(12.87)
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(1.77)
|
(25.58)
|
(7.35)
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.22
|
3.22
|
(1.51)
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
(13.37)
|
(13.60) |
20.05 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.97
|
1.02 |
1.10 |
LOCAL AGENCY FURTHER INFORMATION
Note:
The registered office of the company has been shifted from 2nd
Floor, Tower A,
BACKGROUND
The Company was
incorporated in
GOING CONCERN
The Company
incurred loss of Rs.154.605 millions during the year ended March 31, 2010 and
has accumulated losses of Rs.2369.902 millions resulting in erosion of its
entire net worth. The Company based on commitments and support from its Holding
Company is confident of meetings its operating and capital funding requirements
for the year ending March 31, 2011. Accordingly, the financial statements have
been prepared on a going concern basis.
|
This form is for |
Modification of
charge |
|
Charge
identification number of the modified |
10072713 |
|
Corporate
identity number of the company |
U32204HR2005PTC035635 |
|
Name of the
company |
ZTE TELECOM INDIA PRIVATE LIMITED |
|
Address of the
registered office or of the principal place of business in |
6th Floor, Tower B, Building No.10, |
|
Type of charge |
Book Debts |
|
Particular of
charge holder |
Sojitz
Corporation, 1-20, Akasaka 6-Chome, Minato-Ku,, E-Mail: kazama.naoki@sojitz.com |
|
Nature of
description of the instrument creating or modifying the charge |
Modification of
the first charge which was initially created on 10th October, 2007 vide Agreement
No.RPM-4077-03 for procurement of Broadband Equipment for BSNL PO
No.MM/20-89/2007-08/BMP/Rural/ZTE dated at The first charge
being modified with additional purchase order having Agreement No.
RPM-4077-04 for BSNL PO No.MM/20-89/2007-08/BMP/Rural/ZTE dated at |
|
Date of
instrument Creating the charge |
14/01/2008 |
|
Amount secured by
the charge |
Rs.1225.663
millions |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest:
As per agreement. Terms of
Repayment: The PURCHASER
shall pay the contract value to SELLER by T.T. Remittance to PURCHASER on back
to back basis immediately after BSNL'S payment to "Escrow Account".
BSNL's payment shall be executed to the "Escrow Account" to be
established among PURCHASER, SELLER and the commercial bank to be nominated
by SELLER. Margin: The PURCHASER
shall pay the contract value to SELLER by T.T. Remittance to PURCHASER on
back to back basis immediately after BSNL'S payment to "Escrow
Account". Extent and
Operation of the charge: As per agreement |
|
Short particulars
of the property charged |
Modification of the
initial charge on the Broadband equipment supplied by Sojitz Corporation, |
|
Particulars of
the present modification |
Modification of the
initial charge on the Broadband equipment supplied by Sojitz Corporation, |
Contingent
Liabilities not provided for (As on 31.03.2010)
a) Claims against the
Company not acknowledged as debt:
i. Bills of
exchange discounted is Rs Nil as on March 31, 2010. Further, there is no any
dishonor reporting pertaining to discounting of bills of exchange during
previous financial year.
ii. A suit has
been filed by Spread Infotech before Delhi High Court for recovery of Rs.36.685
millions against the Company and ZTE Corporation,
Company had failed
to pay its dues under the agreement, Spread Infotech has filed suit. The
pleadings i.e. all written documentation have been completed by the parties and
the suit is now at the stage of trial i.e. for admission/denial of documents
and framing of issues. Based on the lawyer’s confirmation and pending the
ultimate outcome of the suit, the Company has not provided fall the liability
in the books of account.
b) Amount of Bank
Guarantees given to the customers and others are Rs.82.202 millions as on March
31, 2010.
c) Liquidated
damages on account of contract obligation with various customers comes to
Rs.38.601 millions as at March 31, 2009.
FIXED ASSETS:
·
Office Equipments
·
Furniture and Fixtures
·
Computers
·
Vehicles
·
Plant and Machinery
·
Leasehold Improvement
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] 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.45.74 |
|
|
1 |
Rs.72.73 |
|
Euro |
1 |
Rs.62.73 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
2 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
2 |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
1 |
|
--LEVERAGE |
1~10 |
1 |
|
--RESERVES |
1~10 |
- |
|
--CREDIT LINES |
1~10 |
1 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
13 |
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.