MIRA
INFORM REPORT
|
Report Date : |
02.07.2011 |
IDENTIFICATION DETAILS
|
Name : |
TECH MAHINDRA 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 : |
24.10.1986 |
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Com. Reg. No.: |
11-41370 |
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Capital
Investment / Paid-up Capital : |
Rs.1223.000 Millions |
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CIN No.: [Company Identification
No.] |
l64200mh1986plc041370 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
mumm15369E |
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PAN No.: [Permanent Account No.] |
aaacm3484F |
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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
: |
Services Provider of Computer
Software, Telecom IT Solution. |
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No. of Employees
: |
25000 [Approximately] |
RATING & COMMENTS
|
MIRA’s Rating : |
A [66] |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 114600000 |
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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 Mahindra Group Company. It is a well established and a
reputed company having fine track. Financial position of the company appears
to be sound. Directors are reported to
be experienced respectable and resourceful businessmen. 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.
INFORMATION PARTED BY
|
Name : |
Mr. Nacheeket |
|
Designation : |
Accounts Manager |
|
Contact No.: |
91-20-42252776 |
|
Date : |
29.06.2011 |
LOCATIONS
|
Registered Office : |
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Tel. No.: |
91-22-22021031 |
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E-Mail : |
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Website : |
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Corporate Office : |
Sharada Centre, Off. |
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Tel. No.: |
91-20-6601 8100 |
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Fax No.: |
91-20-2542 4466 |
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Branches : |
Wing 1, |
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91-22-6688 2000 |
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91-22-2852 8959 |
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Also Located at
:
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Overseas
Branches : |
Located at :
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DIRECTORS
As on 26.07.2010
|
Name : |
Mr. Anand G Mahindra |
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Designation : |
Chairman |
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|
Name : |
Mr. Vineet Nayyar |
|
Designation : |
Vice-Chairman and Managing Director |
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Name : |
Hon. Akash Paul |
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Designation : |
Director |
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Name : |
Mr. AI-Noor Ramji |
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Designation : |
Director (upto 31st March
2010) |
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Name : |
Mr. Anupam Puri |
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Designation : |
Director |
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Name : |
Mr. Arun Sethi |
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Designation : |
Director (upto 22nd
January 2010) |
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Name : |
Mr. Bharat N. Doshi |
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Designation : |
Director |
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Name : |
Mr. Clive Goodwin |
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Designation : |
Director (upto 22nd
January 2010) |
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Name : |
Mr. Paul Zuckerman |
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Designation : |
Director |
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Name : |
Dr. Raj Reddy |
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Designation : |
Director |
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Name : |
Mr. Ulhas N.Yargop |
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Designation : |
Director |
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Name : |
Mr. M. Damodaran |
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Designation : |
Director |
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Name : |
Mr.
Nigel Stagg |
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Designation : |
Director (w.e.f. 22nd January 2010) |
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Name : |
Mr. Richard Cameron |
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Designation : |
(w.e.f. 22nd January 2010) |
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Name : |
Mr. B. H. Wani |
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Designation : |
Director |
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Name : |
Mr. Ravindra Kulkarni |
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Designation : |
Additional Director w.e.f. 30th March
2009 |
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Name : |
Mr. Paul Ringham |
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Designation : |
Alternate Director to Mr. Clive Goodwin (Alternate Director to Mr. Clive |
KEY EXECUTIVES
|
Committees
of Directors |
Audit
Committee ·
Mr. Anupam Puri - Chairman ·
Mr. Clive Goodwin ·
Mr. Paul Zuckerman ·
Mr. Richard Cameron ·
Dr. Raj Reddy ·
Mr. M. Damodaran (w.e.f. 22nd July 2008) ·
Mr. Ulhas N.Yargop (w.e.f. 21st October 2008) Compensation
Committee
Investor
Grievances-cum-Share Transfer Committee
Executive
Committee • Mr. Vineet Nayyar, Chairman • Mr. Nigel Stagg (w.e.f. 22nd January 2010) • Mr. Ulhas N.Yargop Securities
Allotment Committee ·
Mr. Vineet Nayyar - Chairman ·
Mr. Richard Cameron (w.e.f. 22nd January 2010) ·
Mr. Ulhas N.Yargop |
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|
Name : |
Mr. Vikrant C. Gandhe |
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Designation : |
Assistant Company Secretary and Compliance Officer |
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Name : |
Mr. Sanjay Kalra |
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Designation : |
Chief Executive Officer |
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Name : |
Mr. Sonjoy Anand |
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Designation : |
Chief Financial Officer |
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Name : |
Mr. Nacheeket |
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Designation : |
Accounts Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(As on 31.03.2011)
|
Particulars |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter
Group |
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|
(1) Indian |
|
|
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Bodies Corporate |
60676252 |
48.17 |
|
(2) Foreign |
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Bodies Corporate |
29607649 |
23.51 |
|
Total [A] |
90283901 |
71.68 |
|
(B) Public Shareholding |
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|
(1) Institutions |
|
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|
Mutual Funds / UTI |
575830 |
0.46 |
|
Financial Institutions / Banks |
12726568 |
10.10 |
|
Insurance Companies |
5725266 |
4.55 |
|
Foreign Institutional Investors |
3639472 |
2.89 |
|
(2)
Non-Institutions |
|
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Bodies Corporate |
1248615 |
0.99 |
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Individuals |
|
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Individual shareholders holding nominal share
capital up to Rs. 0.100 million |
7681619 |
6.10 |
|
Individual shareholders holding nominal share capital
in excess of Rs.0.100 million |
2554583 |
2.03 |
|
Any Others (Specify) |
1519627 |
1.21 |
|
Clearing Members |
888726 |
0.71 |
|
Non Resident Indians |
402400 |
0.32 |
|
Hindu Undivided Families |
46649 |
0.04 |
|
Trusts |
101537 |
0.08 |
|
Foreign Nationals |
63005 |
0.05 |
|
Market Maker |
17310 |
0.01 |
|
Total [B] |
35671580 |
28.32 |
|
Total (A)+(B) |
125955481 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Services Provider of Computer Software,
Telecom IT Solution. |
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Products : |
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GENERAL INFORMATION
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No. of Employees : |
25000 [Approximately] |
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Bankers : |
·
IDBI Bank ·
HSBC Bank ·
State Bank of ·
Kotak Mahindra Bank ·
Punjab National Bank ·
HDFC Bank Limited ·
ICICI Bank |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Deloitte, Haskins and Sells Chartered Accountants |
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Holding Company : |
·
Mahindra and Mahindra Limited ·
British Telecommunications, pic. |
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Group company : |
·
Mahindra BT Investment Company ( |
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Associates/Subsidiaries : |
·
Tech Mahindra ( ·
PTTech Mahindra ·
iPolicy Networks Limited ·
Tech Mahindra ( ·
Tech Mahindra GmbH ·
Tech Mahindra ( ·
Tech Mahindra ( ·
PTTech Mahindra ·
CanvasM Technologies Limited ·
CanvasM ( ·
Tech Mahindra ( ·
Tech Mahindra ( ·
Venturba'y Consultants Private Limited ·
Tech Mahindra Foundation · Mahindra Logisoft Business Solutions Limited ·
Tech Mahindra ( ·
Tech Mahindra ( |
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Fellow
Subsidiary Company |
· Mahindra Engineering and Chemical Products Limited · Mahindra Engineering Services Limited · Bristlecone India Limited ·
· Mahindra Renault Private Limited · Mahindra Navistar Automotives Limited · Mahindra Logistics Limited · Mahindra Navistar Engines Private Limited · Mahindra Automotive Limited · Mahindra Hinoday Industries Limited · Mahindra Holdings Limited · Mahindra Lifespace developers ·
Mahindra Punjab Tractors Private Limited |
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|
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Associate
Company |
· Satyam Computer Services Limited ·
Satyam BPO Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
175,000,000 |
Equity Shares |
Rs. 10/- each |
Rs.1750.000 millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
122,320,114 |
Equity Shares |
Rs. 10/-
each |
Rs.1223.201
millions |
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|
Notes:
1 The above includes 51,000,100 and 25,000,000 Equity Shares originally
of Rs. 21- each issued
as fully paid-up bonus shares by capitalisation of balance of Profit and Loss
Account and General Reserve, respectively.
2 The company had consolidated 5 equity shares of face value of Rs. 21- each into 1 equity share
of face value of
Rs. 10/- each
3 The above includes 90,148,459 Equity Shares of Rs. 10/- each allotted
as fully paid-up bonus shares by way of
capitalisation of Profit and Loss Account.
As on 26.07.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
175,000,000 |
Equity Shares |
Rs. 10/- each |
Rs.1750.000 millions |
|
|
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|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
126,729,306 |
Equity Shares |
Rs. 10/-
each |
Rs.1267.293
millions |
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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 |
1223.000 |
1217.000 |
1214.000 |
|
|
2] Share Application Money |
2.000 |
1.000 |
0.000 |
|
|
3] Reserves & Surplus |
27442.000 |
17592.000 |
11070.000 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
28667.000 |
18810.000 |
12284.000 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
7500.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
6172.000 |
0.000 |
950.000 |
|
|
TOTAL BORROWING |
13672.000 |
0.000 |
950.000 |
|
|
DEFERRED REVENUE |
7677.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
50016.000 |
18810.000 |
13234.000 |
|
|
|
|
|
|
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|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
5940.000 |
4901.000 |
2909.000 |
|
|
Capital work-in-progress |
3208.000 |
1541.000 |
1385.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
31139.000 |
4535.000 |
2986.000 |
|
|
DEFERREX TAX ASSETS |
223.000 |
155.000 |
14.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
14.000
|
13.000
|
0.000 |
|
|
Sundry Debtors |
9930.000
|
8545.000
|
10574.000 |
|
|
Cash & Bank Balances |
1380.000
|
4961.000
|
814.000 |
|
|
Other Current Assets |
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances |
6531.000
|
2867.000
|
3477.000 |
|
Total
Current Assets |
17855.000
|
16386.000
|
14865.000 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
4533.000 |
5011.000 |
5091.000 |
|
|
Current Liabilities |
1211.000
|
1707.000
|
1250.000 |
|
|
Provisions |
2605.000
|
1990.000
|
2584.000 |
|
Total
Current Liabilities |
8349.000
|
8708.000
|
8925.000 |
|
|
Net Current Assets |
9506.000
|
7678.000
|
5940.000 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
50016.000 |
18810.000 |
13234.000 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income From Operations |
44838.000 |
43578.000 |
36047.000 |
|
|
|
Other Income |
909.000 |
[425.000] |
976.000 |
|
|
|
TOTAL (A) |
45747.000 |
43153.000 |
37023.000 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Personnel |
15987.000 |
14242.000 |
12224.000 |
|
|
|
Operating and Other Expenses |
18034.000 |
16907.000 |
15616.000 |
|
|
|
TOTAL (B) |
34021.000 |
31149.000 |
27840.000 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
11726.000 |
12004.000 |
9183.000 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1600.000 |
25.000 |
100.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
10126.000 |
11979.000 |
9083.000 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1299.000 |
1074.000 |
736.000 |
|
|
|
|
|
|
|
|
|
Less |
Exceptional Item
|
85.000 |
0.000 |
4401.000 |
|
|
|
|
|
|
|
|
|
|
Provision in
respect of earlier year written back |
0.000 |
0.000 |
165.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
8742.000 |
10905.000 |
4111.000 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
1314.000 |
1039.000 |
689.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
7428.000 |
9866.000 |
3422.000 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
13497.000 |
5202.000 |
4261.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to Debenture Redemption Reserve |
1935.000 |
0.000 |
0.000 |
|
|
|
Transfer to General Reserve |
750.000 |
1000.000 |
1700.000 |
|
|
|
Final Dividend |
0.000 |
1.000 |
668.000 |
|
|
|
Interim Dividend |
0.000 |
487.000 |
0.000 |
|
|
|
Proposed Final Dividend |
428.000 |
0.000 |
0.000 |
|
|
|
Dividend Tax |
73.000 |
83.000 |
113.000 |
|
|
BALANCE CARRIED
TO THE B/S |
17739.000 |
13497.000 |
5202.000 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Income form Service |
41569.000 |
42755.000 |
35593.000 |
|
|
|
Interest Received |
8.000 |
31.000 |
0.000 |
|
|
|
Restructuring Fees Received |
9682.000 |
0.000 |
0.000 |
|
|
|
Interest on Deposit with banks |
0.000 |
0.000 |
22.000 |
|
|
|
Interest on Loan to subsidiaries |
0.000 |
0.000 |
6.000 |
|
|
|
Other Income |
6.000 |
6.000 |
16.000 |
|
|
TOTAL EARNINGS |
51265.000 |
42792.000 |
35637.000 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
0.000 |
0.000 |
0.000 |
|
|
|
Components, Spares & Parts |
10.000 |
0.000 |
0.000 |
|
|
|
Capital Goods |
2722.000 |
579.000 |
453.000 |
|
|
TOTAL IMPORTS |
2732.000 |
579.000 |
453.000 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Before
Exceptional Item |
|
|
|
|
|
|
Basic |
61.58 |
81.12 |
64.49 |
|
|
|
Diluted |
57.62 |
76.66 |
59.84 |
|
|
|
|
|
|
|
|
|
|
After
Exceptional Item |
|
|
|
|
|
|
Basic |
60.89 |
81.12 |
28.21 |
|
|
|
Diluted |
56.97 |
76.66 |
26.17 |
|
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
31.03.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th Quarter |
|
Sales Turnover |
10935.700 |
14917.700 |
11812.300 |
11989.300 |
|
Total Expenditure |
9021.200 |
12198.800 |
9356.700 |
9787.700 |
|
PBIDT (Excl
OI) |
1914.500 |
2718.900 |
2455.600 |
2201.600 |
|
Other Income |
228.600 |
92.200 |
526.700 |
304.700 |
|
Operating
Profit |
2143.100 |
2811.100 |
2982.300 |
2506.300 |
|
Interest |
264.000 |
269.900 |
253.00 |
212.000 |
|
Exceptional
Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
1879.100 |
2541.200 |
2729.300 |
2294.300 |
|
Depreciation |
342.400 |
335.300 |
335.600 |
370.000 |
|
Profit
Before Tax |
1536.700 |
2205.900 |
2393.700 |
1924.300 |
|
Tax |
253.500 |
366.400 |
373.500 |
99.500 |
|
Reported PAT |
1283.200 |
1839.500 |
2020.20 |
1824.800 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
1283.200 |
1839.500 |
2020.20 |
1824.800 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
16.24
|
22.86 |
9.24 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
19.50
|
25.02 |
11.40 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
36.74
|
51.23 |
23.13 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.30
|
0.58 |
0.33 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.77
|
0.46 |
0.80 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.14
|
1.88 |
1.66 |
LOCAL AGENCY FURTHER INFORMATION
Sundry Creditors
Details
Rs. in millions
|
Sundry Creditors |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
Total outstanding dues of Micro, Small and Medium Enterprises |
0.000 |
0.000 |
0.000 |
|
Total outstanding dues of Creditors other than Micro enterprises and
Small enterprises |
4533.000 |
5011.000 |
5091.000 |
|
Total |
4533.000 |
5011.000 |
5091.000 |
Contingent liabilities:
i).TML has
received demand notices from Income Tax Authorities resulting in a contingent
liability of Rs. 510 Million (previous year: Rs. 263 Million). This is
mainly on account of the following: (a) Disallowance of software maintenance
activity, deduction under section 80HHE amounting to Rs. Nil (previous
year: Rs. 38 Million) (b) Deduction under Section 10A amounting to Rs. 494
Million (previous year: Rs. 209 Million) in relation to adjustment of
expenditure in foreign currency being excluded only from Export turnover and
not from Total turnover. TML has already won the appeal before the Mumbai ITAT
for the Assessment year 2002-03 and 2003-04. The Income Tax Department has
filed the appeal before the High Court. TML has already won the appeal before
the CIT (A) for Assessment Year 2004-05 and 2005-06. The Income Tax Department
intends to pursue the matter before Mumbai ITAT and (c) an amount of Rs. 16
Million (previous year: Rs. 16 Million) relating to Fringe Benefit Tax. TML
has appealed before Appellate Authorities and is hopeful of succeeding in the
same.
ii) TML has
received demand notices from Sales Tax Authority for Rs. 148 Million (previous
year: Rs. Nil) towards a) purchases made from unregistered dealers for the
financial year 1998-99 and 1999-00 of Rs.130 Million. TML has made an
application for cancellation of ex-parte order before the Assessing Officer and
same is
under
consideration and b) Software services classified under Works Contract Act for
the financial year 2006-07 to 2008-09 of Rs. 18 Million. TML has filed
an appeal before the Appellate Authority.
iii) TML has
received demand notices from Service Tax Authority for Rs. 13 Million (previous
year: Rs. Nil) towards services provided by company to be covered under Management
consultancy services. TML has filed appeal against the same. iv) TML and its
subsidiary have bank guarantees outstanding Rs. 582 Million (previous
year: Rs. 974 Million). v) Claim on TML from Provident Fund authorities is Rs.
2 Million (previous year: Rs. 2 Million).
vi) Erstwhile,Tech
Mahindra (R and D services) Limited (TMRDL) received a demand letter from
Service Tax Authority towards service tax on marketing fees for the financial
year 2006-07 for Rs. 7 Million (previous year: Rs. 7 Million). The above
amount is paid by TML "Under Protest" TML is awaiting demand notice
and would be filing an appeal against the same.
vii) Claim on TML
not acknowledged as debts for Stamp duty matter is Rs. 2 Million (previous
year: Rs. Nil). The above matter is subject to legal proceeding in the ordinary
course of business. In the opinion of the management the legal proceeding, when ultimately
concluded, will not have a material effect on result of operations or financial
position of TML.
viii) Claims
against TML not acknowledged as debts amounting to Rs. Nil (previous
year: Rs.130 Million).
CHANGES IN SHARE CAPITAL
During the year, the Company allotted 586,480 equity shares of the face
value of Rs. 10 each on the exercise of stock options under its various
Employee Stock Option Plans and consequently the number of issued, subscribed
and paid-up equity shares has increased from 121,733,634 equity shares to
122,320,114 equity shares of Rs.10 each aggregating Rs. 1223.201 millions
BUSINESS PERFORMANCE / FINANCIAL OVERVIEW
The Company is a leading provider of IT, Network Technology solutions
and BPO services to the telecommunications industry in
The Company has emerged as the leading telecommunications focused BPO
company which caters to the diverse needs of the telecommunications
eco-system.The Company continues to invest in developing service offerings in
areas like network services, infrastructure management, security services and
VAS.
During the year, the Company has also been able to address the various
technological changes in the industry, and has invested in the ability to
provide solutions that support voicedata convergent systems and next generation
services. The Company's capabilities have been strengthened through its
involvement in major transformation initiatives of its key customers.
During the year, the Company has also broadened its relationship with
its key customers by expanding its service offerings to cover a wide range of
the customers' businesses.
As a result of continued focus on its sales and marketing strategy, the
Company has developed a 3-layered marketing and delivery structure which
enables it to be more responsive to its customers' needs. Such a delivery has
enabled faster execution of client engagements, delivery of quality of services
and facilitated the efficient use of the resource pool.
The Company now has 13 delivery centers supported by the competency and
solutions units and it strongly believes that this model enables it to deliver
superior solutions to its clients. The Company has offices in 25 countries and
has clients in over 40 countries.
During the year , total income increased to Rs. 45,747 Million from Rs.
43,153 Million in the previous year, a growth of 6%. On a consolidated level,
total income increased to Rs. 47,008
Million from Rs. 44,269 Million in the previous year.
During the year, 58.6% of the Company's revenue came from Europe, 29.4%
came from
The Profit before interest, depreciation and tax amounts to Rs. 11,726
Million (26% of income) as against Rs. 12,004 Million (28% of income) in the
previous year.
As you are aware, during the year the Company acquired a 42.67%
shareholding in Satyam Computer Services Limited (Satyam) through Venturbay
Consultants Private Limited (Venturbay), a wholly owned subsidiary of the
Company with an investment of Rs. 29,695 Million, which was partly funded by
borrowings. Consequently, Interest cost during the year substantially increased
to Rs. 1,600 Million as compared to Rs. 25 Million in the previous year.
The Profit before depreciation of the Company stood at Rs. 10,126
Million (which amounts to 22% of its income) as against Rs. 11,980 Million (28%
of income) in the previous year.
Profit after tax, before exceptional items was lower at Rs. 7,513
Million as against Rs. 9,866 Million in the previous year. On a consolidated level,
profit after tax, before exceptional items stood at Rs. 7,117 Million as
against Rs. 10,146 Million in the previous year. A major reason of a low Profit
after tax this year was the huge interest cost of Rs.1600 Million on moneys
borrowed for Satyam acquisition.
UPDATE ON SATYAM
As reported in the previous year's Directors' Report, the Company
participated in the Satyam bidding process, through its wholly owned
subsidiary, Venturbay, and was declared as the highest bidder on 13th April
2009 and as the winning bidder post approval by the Honorable Company Law Board
on 16th April 2009.
Satyam is one of the largest Indian IT software and services companies
with a well-diversified client base spread across Banking, Financial Services
and Insurance (BFSI), manufacturing, retail, transport, logistics, telecom,
media, healthcare and pharma etc. The Company believes that the acquisition
presented a compelling strategic opportunity. The rationale behind the
acquisition was :-
- Diversification
into multiple verticals like Banking and Insurance, Manufacturing and
Retail
- Ability to
offer a wider range of service offerings like Enterprise Services and
Engineering Services to current and future customers
- Derisked
business model with balanced exposure across geographies and currencies
- Utilize
Mahindra Satyam's pool of highly experienced, well trained professional
employees
- Scale
benefits due to substantially larger size of the business Post acquisition,
the new management of Satyam has brought about significant changes in
operating policies and procedure to facilitate the revival of the company.
The consolidated financial statements included in this report do not
include the financial statements of Satyam and its subsidiaries as Satyam is in
the process of restating its financials. The Honorable Company Law Board vide
its order dated 15th October 2009 has given extension of time to Satyam for
filing of returns/ documents which are required to be filed with various
statutory authorities under various statues, whether already due, or to become
due, up to 30th June 2010.
RECENT MATERIAL CHANGES
During the year, pursuant to an agreement, Mahindra-BT Investment
Company (
98,70,912 Equity Shares of the Company aggregating 8.07% of its paid-up
Equity Share Capital.
Following the said sale, the Shareholding of M and M along with its
subsidiary MBTM in the Company stands reduced to 44.01%, resulting in the
Company ceasing to be a subsidiary of M and M.
Consequently, the subsidiaries of the Company, viz. Mahindra Logisoft
Business Solutions Limited, Tech Mahindra (Americas) Inc., Tech Mahindra GmbH, Tech
Mahindra (Singapore) Pte. Limited, Tech Mahindra (Thailand) Limited, Tech
Mahindra Foundation, PT Tech Mahindra Indonesia, CanvasM Technologies Limited,
CanvasM (Americas) Inc., Tech Mahindra (
SUBSIDIARY COMPANIES
As reported earlier, the Company participated in the Satyam bidding
process, through its wholly owned subsidiary, Venturbay, and was declared as
the highest bidder on 13th April 2009 and as
the winning bidder post approval by the Honorable Company Law Board on
16th April 2009. In order to fund Venturbay's investment into Satyam, the
Company infused Rs. 30,461 Million in Venturbay during the year .
During the year , the Company acquired the entire share capital of
Mahindra Logisoft Business Solutions Limited (MLBSL). Consequently, MLBSL
became a wholly owned subsidiary of the Company w.e.f. 11th April 2009.
During the year, Tech Mahindra (
As on 31st March 2010, the Company had 14 subsidiaries, including one
step-down subsidiary. There has not been any material change in the nature of
the business of the subsidiaries. As required under the Listing Agreements with
the Stock Exchanges, the Consolidated Financial Statements of the Company and
all its subsidiaries are attached. The Consolidated Financial Statements have
been prepared in accordance with Accounting Standards AS 21, AS 23 and AS 27
issued by The Institute of Chartered Accountants of India and show the financial
resources, assets, liabilities, income, profits and other details of the
Company and its subsidiaries and associate companies as a single entity, after
elimination of minority interest. The consolidate d financial statements
included in this report do not include the financial statements of Satyam and
its subsidiaries as Satyam is in the process of restating its financials.
The Company has made an application to the Ministry of Corporate Affairs
seeking exemption from attaching the copy of Balance Sheet, Profit and Loss
Accoupt, Reports of the Board of Directors and Auditors of the subsidiaries
with the Balance Sheet of the Company. If, in terms of approval granted by the
Ministry of Corporate Affairs under section 212(8) of the Companies Act, 1956,
the Copy of the Balance Sheet, etc. of the subsidiaries are not required to be
attached with the Balance Sheet of the Company, the Company Secretary will make
these documents available upon receipt of request from any member of the
Company interested in obtaining the same. These documents will be available at
Registered Office / Corporate Office of the Company and the office of the
respective subsidiary companies, during working hours up to the date of the
Annual General Meeting.
MANAGEMENT
DISCUSSION AND ANALYSIS
Industry structure, developments and Outlook Overview
Tech Mahindra Limited is a leading provider of IT, networking technology
solutions and BPO services to the global telecommunications industry. In fiscal
2009, it was ranked by NASSCOM as the fifth largest Indian IT services company
in terms of export revenue and as number one company in telecom software
services in
Current environment and global telecom market
The competitive landscape in the global telecommunications services
market has been undergoing continuous changes. Governments have continued to
implement measures aimed at liberalizing the telecommunications services market
and increasing competition. For instance, most European telecommunications
regulators have enacted measures to allow carrier services, which permit new
entrants to use the networks of incumbent TSPs to offer their own fixed-line
services to customers.
In the area of mobile services, mobile number portability, which allows
mobile customers to switch service providers without changing their mobile
numbers, has also been enacted in most developed telecommunications markets.
These measures have largely been successful in promoting competition and
have resulted in an increase in customers. The market share of incumbent TSPs
has decreased and the number of TSPs in the market has increased. Mobile TSPs
in advanced telecommunications markets are currently in the process of
upgrading their networks to data-intensive 3G wireless networks, which will
facilitate the provision of complex data services, such as online video,
wireless instant messaging and wireless conferencing services. Fixed line TSPs
are in various stages of upgrading their networks from traditional switched networks
to IP based networks. This migration to next generation networks over the past
few years have helped in an evolution from pure voice towards converged
networks and the quadruple services of voice, video, data and content.
In the emerging markets, the ongoing expansion of subscriber base is
attracting new service providers who are setting up operations in markets
across Asia Pacific, Middle East and
Software and IT Services spend in the Communications Industry
Over the past few years, software and IT services providers have
expanded and upgraded their service offerings in order to cater to the changing
needs of TSPs. The migration to next generation networks has created increased
demand for software and IT services. IT services and software providers handle
business functions of converged networks and provide solutions across multiple
network elements, in both legacy and next generation networks.
In addition to the migration to next generation networks and the rationalization
of legacy networks, competition in the telecommunications services industry
could be a key driver of demand for IT services and software. As competition
has increased fixed-line revenues have declined, mainly as a result of
decreasing long distance prices and competition from mobile TSPs. In the mobile
TSP sector, competition driven by the increase in the number of mobile TSPs and
emergence of MVNOs, among other factors, has also placed pressure on revenues,
although to a much lesser extent than fixed-line revenues. Software and IT
services providers are attempting to take advantage of increased competition in
the TSP industry. Pressure on margins has caused TSPs to focus on reducing
costs. IT is becoming an important element in determining cost efficiency of
TSPs.
In order to reduce costs, TSPs are increasingly using packaged software,
systems integrators and outsourcing companies to help them achieve their goals.
Discussion on Financial Performance with respect to Operational
Performance
Overview
The financial statements have been prepared in compliance with the
requirements of the Companies Act, 1956 and Generally Accepted Accounting
Principles (GAAP) in
The Consolidated financial statements have been prepared in compliance
with the Accounting Standard AS 21, AS 23 and AS 27 issued by the Institute of
Chartered Accountants of India (ICAI). The discussion on financial performance
in the Management Discussion and Analysis relate primarily to the stand alone
accounts of Tech Mahindra Limited. Wherever it is appropriate, information
pertaining to consolidated accounts for Tech Mahindra Limited is provided. For
purpose of comparison with other firms in this industry as well as to see the
positioning and impact that Tech Mahindra Limited has in the marketplace, it is
essential to take the figures as reflected in the Consolidated Financial
Statements.
AUDITED FINANCIAL
RESULTS FOR THE QUARTER AND YEAR ENDED 31.03.2011
|
Particulars |
Quarter Ended 31.03.2011 |
Year Ended 31.03.2011 |
|
1 Income from Operations |
11989.300 |
49654.900 |
|
2 Expenditure |
|
|
|
Personnel Cost |
5078.800 |
19438.300 |
|
Traveling Expenses |
713.400 |
2983.300 |
|
Services rendered by
Business Associates & Others |
2684.400 |
10389.400 |
|
Depreciation |
370.000 |
1383.300 |
|
Operating and other
expenses |
1311.100 |
7554.000 |
|
Total |
10157.700 |
41748.300 |
|
3 Profit From Operations
before Other Income, Interest and Exceptional Item |
1831.600 |
7906.600 |
|
4 Other Income |
304.700 |
1152.300 |
|
5 Profit before Interest
and Exceptional Item |
2136.300 |
9058.900 |
|
6 Interest |
212.000 |
998.800 |
|
7 Profit after Interest
and before Exceptional Item |
1924.300 |
8060.100 |
|
8 Exceptional Items |
0.000 |
0.000 |
|
9 Profit before Tax |
1924.300 |
8060.100 |
|
10 Provision for Taxation |
99.500 |
1092.900 |
|
11 Profit After Tax |
1824.800 |
6967.200 |
|
12 Paid-up Equity Share
Capital (Face Value of Share Rs. 10) |
1259.600 |
1259.600 |
|
13 Loan Funds |
12227.000 |
12227.000 |
|
14 Reserves excluding
revaluation reserve |
29531.000 |
29531.000 |
|
15 Debenture Redemption
Reserve |
2637.100 |
2637.100 |
|
16 Earnings Per Share
(Rs.):(Not Annualized) Before Exceptional Items |
|
|
|
- Basic |
14.61 |
55.81 |
|
- Diluted |
13.97 |
53.36 |
|
17 Earnings Per Share
(Rs.):(Not Annualized) After Exceptional Items |
|
|
|
- Basic |
14.61 |
55.81 |
|
- Diluted |
13.97 |
53.36 |
|
18 Ratios |
|
|
|
- Debt Equity Ratio |
-- |
0.40 |
|
- Debt Service Coverage
Ratio (DSCR) |
-- |
0.62 |
|
- Interest Service
Coverage Ratio (ISCR) |
-- |
9.07 |
|
19 Public Shareholding- |
|
|
|
- Number of shares |
35671580 |
35671580 |
|
- Percentage of
shareholding |
28.32% |
28.32% |
|
20 Promoters and promoter
group Shareholding |
|
|
|
a) Pledged/encumbered |
|
|
|
- Number of shares |
-- |
-- |
|
- Percentage of shares (as a % of
the total shareholding of promoter and promoter group) |
-- |
-- |
|
- Percentage of shares |
-- |
-- |
|
(as a % of the total share capital
of the company) |
|
|
|
b) Non-encumbered |
|
|
|
- Number of shares |
90283901 |
90283901 |
|
- Percentage of shares (as a % of
the total shareholding of promoter and promoter group) |
100% |
100% |
|
- Percentage of shares (as a % of
the total share capital of the company) |
71.68% |
71.68% |
Segment wise
Revenue, Results and Capital Employed
|
Particulars |
Quarter Ended 31.03.2011 |
Year Ended 31.03.2011 |
|
Segment Revenue |
|
|
|
a) Telecom Service
Provider |
10143.700 |
43530.600 |
|
b) Telecom Equipment
Manufacturer |
649.600 |
2206.300 |
|
c) BPO |
984.500 |
3190.800 |
|
d) Others |
211.500 |
727.200 |
|
Total |
11989.300 |
49654.900 |
|
Less: Inter Segment
Revenue |
0.000 |
0.000 |
|
Net Sales/Income from Operations |
11989.300 |
49654.900 |
|
Segment Profit before tax, interest and depreciation |
|
|
|
a) Telecom Service
Provider |
3348.000 |
13509.800 |
|
b) Telecom Equipment
Manufacturer |
193.100 |
651.500 |
|
c) BPO |
454.700 |
1396.700 |
|
d) Others |
20.800 |
131.900 |
|
Total |
4016.600 |
15689.900 |
|
Less: |
|
|
|
(I) Interest |
212.000 |
998.800 |
|
(ii) Other un-allocable
expenditure Net off un-allocable income |
1880.300 |
6631.000 |
|
(iii) Exceptional Items |
0.000 |
0.000 |
|
Profit before Tax |
1924.300 |
8060.100 |
NOTES:
1. The quarterly results
have been taken on records by the Board of Directors In Its meeting held on 26th
May 2011. There are no qualifications In the Auditors' reports for these
periods
2 The Board of Directors has
recommended a final dividend of Rs. 4/- per equity share on par value of
Rs.10/- (40%)
3 During the current year,
a customer has restructured long term contracts with the Company from April
01,2009 which involves changes in commercial including rate reduction and other
agreed contract terms. As per the amended contracts the customer has paid the
Company restructuring fees of Rs. 9681.900 millions. The services under the restructured
contracts would continue to be rendered over the life of the contract. The
restructuring fees received would be amortized and recognized as revenue over
the term of the contract on a straight line basis. An amount of Rs. 2004.900
millions has been recognized as revenue for the year and the balance amount of
Rs.5672.100 millions has been carried forward and disclosed
as deferred revenue in the Balance Sheet. In addition, it also includes a part
of contract termination fees received from a customer, to the extent there is a
continuing customer involvement.
4 Operating and other
expenses for the year ended March 31,2011 include Rs 2871.000
millions of hardware and software expenses accounted as finance lease for a
customer.
5. Information on investor
complaints pursuant to clause 41 of the Listing Agreement for the
quarter ended March 31,2011.
|
Nature of Investor
complaints |
Opening Balance |
Additions |
Disposal |
Closing Balance |
|
Allotment/Refund/Transfer/Others |
1 |
54 |
55 |
0 |
6. Previous period figures
have been regrouped / rearranged wherever necessary.
Notes for Segmental
Information:
Primary Segments
The Primary Segment of the Company
is business segment by category of customers in the Telecom Service Provider,
Telecom Equipment Manufacturer sectors, Business Process Outsourcing and others
Segmental Capital Employed
Segregation of assets,
liabilities, depreciation and other non-cash expenses into various primary
segments has not been done as the assets are used interchangeably between
segments. Accordingly no disclosure relating to Segmental assets and
liabilities has been made.
fixed assets
·
Vehicle
·
·
·
Leasehold Improvements
·
·
Computers
·
Plant and Machinery
·
Furniture and Fixture
·
Intellectual Property rights
PRESS RELEASE
Tech Mahindra enters billion dollar league
Press Release -
Tech
For the Quarter, Tech Mahindra’s associate
company Mahindra Satyam reported improved results with operating margins improving
from 6.4 % in third quarter of FY11 to 13.0 % in the fourth quarter of FY11.
Mahindra Satyam also announced the successful settlement of the
Financial highlights for the Quarter (INR)
• Revenue at INR 1,2615 millionjs; up 6.6% YoY and 4.2% QoQ
• Operating Profit (EBIDTA) was INR 2590
millions; down 7.1% YoY and up 3.7% QoQ
• PAT excluding share of associate company’s
loss was Rs 2065 millions; down 9.0% YoY and up
0.5% QoQ
• Earnings per Share (EPS) was Rs 7.39 for
the quarter ended March 31, 2011
Highlights for the Quarter (USD)
•
Revenue at USD 278.5 mn; up 7.7% YoY and 3.6% QoQ
•
Revenue on constant currency basis was at USD 275.9 mn, up 2.6% QoQ
•
Operating Profit (EBIDTA) was USD 57.1 mn; down 6.5% YoY and up 3.1% QoQ
• PAT
excluding share of associate company’s loss was USD 45.6 mn; down 8.4% YoY and
up
0.3%
QoQ
Highlights for the Quarter (INR)
•
Revenue at INR 5,1402 millions; up 11.1% YoY
•
EBIDTA was INR 1,0033 millions; down 11.4% YoY
• PAT excluding
share of associate company’s loss was Rs 7437 million; up 6.2% YoY
• Earnings
per Share (EPS) was Rs 51.6 for the year ended March 31, 2011
Financial highlights for the Year (USD)
• Revenue at USD 1,126.6 mn; up 15.4% YoY
• Revenue
on constant currency basis was at USD 1159.7 mn, up 18.8% YoY
• Operating
Profit was USD 219.3 mn; down 8.6% YoY
• PAT
excluding share of associate company’s loss was USD 162.6 mn up 9.0% YoY
Other Highlights for the quarter and Year ended March 31, 2011
• The Board of Directors recommended a dividend of Rs 4 per share (40%) for FY 2010-11
• Added
4,809 personnel during the year taking total headcount to 38,333. Software
Professional headcount stood at 26,282, BPO at 11,011 and Support staff at
1,040
• Added
4,125 personnel during the quarter, of which 2,522 were in BPO
• Debt
was Rs 12227 millions as of March 31, 2011
• Cash
and Cash equivalent was Rs 3047 millions on balance sheet as of March 31, 2011
• 15
new clients added during the year, taking the Active Client count to 128
Business Highlights for Quarter ended March 31, 2011
Tech Mahindra expanded its executive team with the appointment of Mr.
Amitava Roy as Chief Operating Officer, responsible for service delivery of BT.
Amitava has successfully led several businesses in Telecom, Wireless,
Enterprise Consulting and Outsourcing and has worked with several leading IT
companies in a career spanning 3 decades
Tech Mahindra’s capabilities in cloud service were significantly boosted
by creating of a cloud competence lab in Hinjewadi Pune. This Lab will enable
Tech Mahindra’s customers to benefit from best of the breed technologies and
assist them in their business objectives of revenue enhancement from cloud
based services
Progressing on its engagement with Airtel Africa, Tech Mahindra has
already commenced BPO operations in five countries, while remaining two are
expected to go live this quarter. This has helped Tech Mahindra create a
permanent base of operation in African continent
Continuing on its Geographic diversification, Tech Mahindra launched its
BPO operations in
Inaugurated state-of-the art development centre in
Anand Mahindra, Chairman,
Tech Mahindra said, “This has been a year of recovery from a severe
slowdown in the telecom vertical. Our growth this year is due to our unwavering
focus on customer centricity and our ability to challenge conventional logic to
better serve the needs of our customers.”
Vineet Nayyar, Vice
Chairman, MD and CEO of Tech Mahindra said, “Our recent wins lend
credence to our belief that we are well positioned to meet the changing market
needs. We are hopeful of being able to continue this momentum into the next
year”
Key Operational Wins/Deliverables
Secured a five-year Managed Services deal from a leading mobile
telecommunications service provider in
In partnership with a leading telecom equipment manufacturer , was chosen by a
leading
Tech Mahindra through its VAS subsidiary Canvas M, has been chosen as a strategic
partner by a leading Telecom Equipment Manufacturer for roll out of 2G / 3G /
LTE devices for a leading US Telecom. Tech Mahindra will be engaged in testing
at its device testing lab in Noida. This pre certification will enable a faster
roll out for the US Operator's network.
Partnered with one of the leading telecommunications service providers in
Awards and Recognitions
Commitment to excellence over the past year has earned Tech Mahindra
recognition as a 2011 AT&T Supplier Award
winner for its support of affiliates of AT&T, one of the world’s
leading data, voice, wireless and Internet services providers Tech Mahindra was
one of only seven suppliers to receive the 2011 AT&T Supplier Award for its
work in helping AT&T deliver outstanding service to its customers during
the past year. Tech Mahindra was recognized for its contributions across a
broad scope of criteria including cost management solutions, teamwork, customer
service, product and service performance, diversity results and sustainability
'System
Integrator of the Year in the Telecom sector' award by a leading global Analyst and
Research firm as a part of the India IT & Telecom
Excellence Award. This award recognizes Tech Mahindra’s exceptional business
performance for the year 2010 in the Indian region.
Financials
Audited consolidated financial results for the quarter and year ended 31st
March, 2011 drawn under Indian GAAP
About Tech Mahindra
Tech Mahindra is a leading provider of solutions and services to the
telecommunications industry, majority stake owned by Mahindra & Mahindra
Limited, in partnership with British Telecommunications plc. With total revenue
of INR 51402 millions in the year ended March 31, 2011, Tech Mahindra serves
telecom service providers, equipment manufacturers, software vendors and
systems integrators. Tech Mahindra solutions enable clients to maximize returns
on IT investment by achieving fast time to market, reduced total cost of
ownership and high customer satisfaction. Tech Mahindra achieves this through
its domain and process expertise, distinctive IT skills, research and
development, proven innovative delivery models and approach to off-shoring.
Assessed at SEI-CMMi Level 5, Tech Mahindra's track record for value-delivery
is supported by 38,300 professionals who provide a unique blend of culture, domain
expertise and in-depth technology skill-sets. Its development centres are ISO
9001:2000 & BS7799 certified. Tech Mahindra has principal offices in the
Tech Mahindra Limited is part of the $11.1 billion Mahindra Group, a global
industrial federation of companies and one of the top 10 business houses based
in
PRESS RELEASE
Tech Mahindra recognized as 2011 Microsoft Communications Sector Partner
of the Year
L.Ravichandran, President, IT Services, Tech Mahindra, said, “Our strong
partnership with Microsoft speaks volumes about our compelling value
propositions for the telecom industry. We are delighted to receive this award,
which testifies our long standing relationship. Microsoft’s ease of use
software coupled with its strong brand reach combines well with Tech Mahindra’s
deep domain expertise to offer tremendous value to our customers. We will
continue our effort to reinforce the relationship by winning together in the
marketplace.”
Awards were presented in multiple categories, with winners chosen from a set of
more than 3,000 entrants worldwide. Tech Mahindra was recognized for providing
outstanding solutions and services in Microsoft Communications Sector Partner
of the Year. The Communications Sector Partner of the Year Award recognizes
Tech Mahindra for adding business value to customers by deploying new and
innovative solutions based on Microsoft technologies in hosting, media and
entertainment, or telecommunications.
"Over the last year, Tech Mahindra has deepened its partnership with
Microsoft, demonstrating continual innovation in bringing to market BI, CRM,
and Windows Azure-based solutions that specifically address the needs of
communications service providers (CSPs)," said Austen Mulinder, corporate
vice president of Communications Sector at Microsoft. "In addition to a
number of joint customer wins, this year Tech Mahindra also established a Microsoft
Dynamics CRM lab for CSPs while Mahindra Satyam has launched a Windows Azure
Center of Excellence. We’re pleased to recognize Tech Mahindra with the
Communications Sector Partner of the Year Award."
The Microsoft Partner Awards recognize Microsoft partners that have developed
and delivered exceptional Microsoft-based solutions over the past year.
About Tech Mahindra
Tech Mahindra is a leading provider of solutions and services to the
telecommunications industry with a majority stake owned by Mahindra & Mahindra
Limited, in partnership with British Telecommunications plc.
Tech Mahindra serves telecom service providers, equipment manufacturers,
software vendors and systems integrators worldwide and their proven delivery
models, distinctive IT skills and decades of domain expertise enable clients to
maximize returns on their IT investment. Tech Mahindra registered revenue of
USD 1,126.6 million in the year ended March 31, 2011 and is ably supported by
38,300 professionals who provide a unique blend of culture, domain expertise
and in-depth technology skill-sets.
A SEI-CMMi Level 5 organization, Tech Mahindra’s development centers are ISO
9001:2008 & BS7799 certified. Tech Mahindra has principal offices in the
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.58 |
|
|
1 |
Rs.71.75 |
|
Euro |
1 |
Rs.64.80 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
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 |
no |
|
--LITIGATION |
YES/NO |
no |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
no |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
no |
|
--EXPORT ACTIVITIES |
YES/NO |
no |
|
--AFFILIATION |
YES/NO |
yes |
|
--LISTED |
YES/NO |
yes |
|
--OTHER MERIT FACTORS |
YES/NO |
yes |
|
TOTAL |
|
66 |
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.