MIRA
INFORM REPORT
|
Report Date : |
18.07.2011 |
IDENTIFICATION DETAILS
|
Name : |
HINDUJA GLOBAL SOLUTIONS LIMITED |
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Registered
Office : |
Hinduja House, 171, |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
13.01.1995 |
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Com. Reg. No.: |
11-084610 |
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Capital
Investment/ Paid-up Capital: |
Rs. 205.892 Millions |
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CIN No.: [Company Identification
No.] |
L92199MH1995PLC084610 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMT04679D |
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PAN No.: [Permanent Account No.] |
AAACT1763A |
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Legal Form : |
A Public Limited Liability Company. The company’s Shares are listed on
stock exchange. |
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Line of Business
: |
Providing Software Development IT Enabled Services. |
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No. of
Employees: |
19442 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (68) |
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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 26000000 |
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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 and reputed company having fine track.
Financial position of the company appears to be sound. Directors are reported
to be experienced, respectable and resourceful businessmen. Their trade
relations are fair. Payments are reported to be regular and as per
commitments. The company can be considered good for normal 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 DECLINED BY
|
Name : |
Mr. Ramesh |
|
Designation : |
Account Manager |
|
Date : |
16.07.2011 |
LOCATIONS
|
Registered Office : |
Hinduja House, 171, |
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Tel. No.: |
91-22-24960707 |
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Mobile No.: |
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Fax No.: |
91-22-24974208 |
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E-Mail : |
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Corporate Office : |
HGSL House No. 614, Vajpayee Nagar, Bommanahlli, Hosur Road,
Bangalore-560068, Karnataka, India |
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Tel. No.: |
91-80-25732620/ 50 |
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Fax No.: |
91-80-25731592 |
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E-Mail : |
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Branches : |
Located at: ·
·
Chennai ·
·
·
·
Vashi, Navi Mumbai |
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Overseas Offices : |
Located at: ·
·
·
·
·
·
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DIRECTORS
As on 31.03.2011
|
Name : |
Mr. Ramkrishan P Hinduja |
|
Designation : |
Chairman |
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|
Name : |
Mr. Vinoo S Hinduja |
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Designation : |
Director |
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Name : |
Mr. Dheeraj G. Hinduja |
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Designation : |
Director |
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|
Name : |
Mr. Anil Harish |
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Designation : |
Director |
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|
Name : |
Mr. Rajendra P Chitale |
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Designation : |
Director |
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Name : |
Mr. Rangan Mohan |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Ramesh |
|
Designation : |
Account Manager |
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Audit Committee : |
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Compensation Committee: |
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Investors’ Grievance Committee |
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Committee of Directors: |
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Name : |
Mr. Partha D Sarkar |
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Designation : |
Chief Executive Officer |
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EXECUTIVE COMMITTEE |
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|
Name : |
Mr. Anthony Joseph |
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Designation : |
Executive Vice President- Global Head- Human Resource |
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|
Name : |
Mr. Ashwin U Hoskote |
|
Designation : |
Senior Vice President- Global Business Excellence |
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|
Name : |
Mr. Deepak Rastogi |
|
Designation : |
Senior Vice President- Business Planning |
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|
Name : |
Mr. Kanti Mohan Rusttagi |
|
Designation : |
Executive Vice President- Legal and Company Secretary |
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|
Name : |
Mr. Narsimha Murthy B.N. |
|
Designation : |
President- North America |
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|
Name : |
Mr. Partha De Sarkar |
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Designation : |
Chief Executive Officer HSGL- |
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|
Name : |
Mr. Pushkar Misra |
|
Designation : |
President and Chief Executive Officer HSGL- |
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|
Name : |
Mr. Ramesh Gopalan |
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Designation : |
Executive Vice President- International Operations |
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|
Name : |
Mr. Sanjay Sinha |
|
Designation : |
Executive Vice Presient – M and A (HR) and New Initiatives |
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|
Name : |
Mr. Sridhar Krishnamurthy |
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Designation : |
Executive Vice President – Strategic Initiatives |
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|
Name : |
Mr. Srinivas Palakodeti |
|
Designation : |
Chief Financial Officer |
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|
Name : |
Mr. Subramanya C. |
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Designation : |
Senior Vice President and Global CTO |
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|
Name : |
Mr. Sudhir Kumar |
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Designation : |
Vice President – Project and Planning |
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|
Name : |
Mr. Subhankar Ghosh |
|
Designation : |
Vice President – Head |
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KEY PERSONNEL |
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|
Name : |
Mr. Ajay Bakshi |
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Designation : |
Vice President – Process Improvement and Automation |
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|
Name : |
Mr. Alby Jose |
|
Designation : |
General Manager- Operations |
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|
Name : |
Mr. Anup Goel |
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Designation : |
Associate Vice President Business Development |
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|
Name : |
Mr. Avesh Kumar Jha |
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Designation : |
Vice President – OD and Perforamnce and Management |
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|
Name : |
Mr. Hasmukh Shah |
|
Designation : |
Vice President – Legal and Secretarial |
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|
Name : |
Mr. Hemant Kapre |
|
Designation : |
Vice President –Trasition and Solutions Design |
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|
Name : |
Mr. Hiro G Soneji |
|
Designation : |
Associate Vice President – Operations |
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|
Name : |
Mr. Jayprasad Menon |
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Designation : |
General Manager- Finance And Accounts |
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|
Name : |
Mr. J Jessy Christin |
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Designation : |
Vice President- HR |
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Name : |
Mr. Kannan Ramakrishnan |
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Designation : |
General Manager – Technical Service Group |
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|
Name : |
Mr. Karthikeyan S |
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Designation : |
Vice President – Operations |
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|
Name : |
Mr. Kedar Kulkarni |
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Designation : |
General Manager- Taxation |
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|
Name : |
Mr. Manikandan K |
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Designation : |
Vice President – HRO Projects |
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|
Name : |
Mr. Manu Jolly |
|
Designation : |
Vice President- Business Development and Operations |
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|
Name : |
Mr. Mohanan P |
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Designation : |
General Manager Administration |
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|
Name : |
Mr. Mukund R S |
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Designation : |
General Counsel |
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|
Name : |
Mr. Rajaram Natrajan |
|
Designation : |
Vice President – Operations |
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|
Name : |
Mr. Ramesh B S |
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Designation : |
Associates Vice President- Finance and Accounts |
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|
Name : |
Mr. Sajedah Kasim Shaida |
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Designation : |
Vice President – Corporate Communication |
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|
Name : |
Mr. Sapan Dhawan |
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Designation : |
General Manager- BFS Vertical |
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Name : |
Ms. Sapna Vaid |
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Designation : |
General Manager- Learning Products |
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|
Name : |
Mr. Siby Joy |
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Designation : |
Vice President – Operations |
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|
Name : |
Mr. Udayan M |
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Designation : |
Vice president Operations. |
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|
Name : |
Mr. Antonio Dela Cruz |
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Designation : |
Senior Vice President – Finance and Corporate Services |
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|
Name : |
Mr. Bettina Salmo |
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Designation : |
Senior Vice President- International Operations |
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Name : |
Mr. Jocelyn D Padian |
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Designation : |
Vice President – International Operations |
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|
Name : |
Mr. Sandeep Marwah |
|
Designation : |
Senior Director –IT |
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|
Name : |
Mr. Vida Candida |
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Designation : |
Vice President- Human Resources. |
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` |
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|
Name : |
Mr. Bryce Hayes |
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Designation : |
Head- Sales |
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|
Name : |
Mr. Carla Nolan |
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Designation : |
Vice President- Human Resources |
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|
Name : |
Mr. Deepak Rastogi |
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Designation : |
Senior Vice President- Business Planning |
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|
Name : |
Mr. Donna Malone |
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Designation : |
President- Client Services |
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|
Name : |
Mr. Gobinath Narayanan |
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Designation : |
Controller – Finance |
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|
Name : |
Mr. Mark Alpern |
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Designation : |
Senior Vice President Sales- |
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|
Name : |
Mr. Narsimha Murthy B.N. |
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Designation : |
President – |
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|
Name : |
Mr. Polly Sappington |
|
Designation : |
Vice President- Finance Affina |
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|
Name : |
Mr. Prasanna Kumar V |
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Designation : |
Senior Vice President- Client Services |
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|
Name : |
Mr. Ralph Wasner |
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Designation : |
Vice President- IT and Communications |
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|
Name : |
Mr. Srepathy V |
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Designation : |
Vice President- Mergers and Acquisitions |
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|
Name : |
Ms. Tina Carlson |
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Designation : |
Vice President – Operations |
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|
Name : |
Mr. Charles Cooper Driver |
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Designation : |
Chief Executive Officer – Carline |
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|
Name : |
Mr. Gillian Denham |
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Designation : |
Finance Director |
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|
Name : |
Mr. Liz Parry |
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Designation : |
Account Manager Director |
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|
Name : |
Mr. Megan Neale |
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Designation : |
Business Solutions Director |
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|
Name : |
Mr. Richard Glanville |
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Designation : |
Operations Director |
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|
Name : |
Mr. Roger Beadle |
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Designation : |
Sales and Marketing Director- Europe |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2011
|
Names of Shareholders |
No. of Shares |
Percentage |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
4,286,985 |
20.82 |
|
|
6,976,040 |
33.88 |
|
|
11,263,025 |
54.70 |
|
|
|
|
|
|
2,778,927 |
13.50 |
|
|
2,778,927 |
13.50 |
|
Total shareholding of Promoter and Promoter Group (A) |
14,041,952 |
68.20 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
660,133 |
3.21 |
|
|
4,050 |
0.02 |
|
|
3,296,975 |
16.01 |
|
|
9,655 |
0.05 |
|
|
9,655 |
0.05 |
|
|
3,970,813 |
19.29 |
|
|
|
|
|
|
910,774 |
4.42 |
|
|
|
|
|
|
1,193,042 |
5.79 |
|
|
395,941 |
1.92 |
|
|
76,701 |
0.37 |
|
|
74,563 |
0.36 |
|
|
2,138 |
0.01 |
|
|
2,576,458 |
12.51 |
|
Total Public shareholding (B) |
6,547,271 |
31.80 |
|
Total (A)+(B) |
20,589,223 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
20,589,223 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Foreign NationalBUSINESS DETAILS
|
Line of Business : |
Providing Software Development IT Enabled Services. |
GENERAL INFORMATION
|
No. of Employees : |
19442 (Approximately) |
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Bankers : |
·
Axis Bank ·
Bank of ·
Bank of ·
Barclays Bank PLC ·
BNP Paribas ·
Canara Bank ·
Chinaturst (Phils.) Commercial Bank Cop ·
HDFC Bank ·
Comerica Bank ·
Hinduja Bank ( ·
HSBC Bank ·
Indusind Bank ·
State Bank of ·
State Bank of ·
Union Bank of |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Price Waterhouse Chartered Accountant |
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Enterprises
where common control exists : |
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Subsidiaries : |
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CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
25000000 |
Equity Shares |
Rs. 10/- each |
Rs. 250.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
20589223 |
Equity Shares |
Rs. 10/-
each |
Rs. 205.892
Millions |
Note:
20,538,003 equity shares were issued for consideration other than cash
pursuant to the Scheme of Arrangement
and Reconstruction for demerger of IT/ ITES business into the Company.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
205.892 |
205.892 |
205.380 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
6205.983 |
5931.072 |
5443.280 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
6411.875 |
6136.964 |
5648.660 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
109.500 |
514.060 |
870.214 |
|
|
2] Unsecured Loans |
502.573 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
612.073 |
514.060 |
870.214 |
|
|
DEFERRED TAX LIABILITIES |
83.562 |
100.413 |
104.640 |
|
|
|
|
|
|
|
|
TOTAL |
7107.510 |
6751.437 |
6623.514 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1895.602 |
1949.871 |
1953.213 |
|
|
Capital work-in-progress |
5.439 |
7.427 |
21.700 |
|
|
|
|
|
|
|
|
INVESTMENT |
3910.177 |
3900.626 |
3900.557 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
0.000
|
0.000 |
0.000 |
|
|
Sundry Debtors |
1306.938
|
1305.008 |
795.230 |
|
|
Cash & Bank Balances |
233.950
|
151.005 |
194.569 |
|
|
Other Current Assets |
5.885
|
4.382 |
323.186 |
|
|
Loans & Advances |
1087.168
|
679.188 |
647.065 |
|
Total
Current Assets |
2633.941
|
2139.583 |
1960.050 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
428.967
|
357.282 |
318.894 |
|
|
Other Current Liabilities |
304.789
|
297.965 |
329.365 |
|
|
Provisions |
603.893
|
590.823 |
563.747 |
|
Total
Current Liabilities |
1337.649
|
1246.070 |
1212.006 |
|
|
Net Current Assets |
1296.292
|
893.513 |
748.044 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
7107.510 |
6751.437 |
6623.514 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Operating Income |
5448.797 |
4868.135 |
4447.646 |
|
|
|
Other Income |
80.293 |
27.098 |
36.789 |
|
|
|
TOTAL (A) |
5529.090 |
4895.233 |
4484.435 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Employee Costs |
3247.788 |
2567.075 |
2391.175 |
|
|
|
Operating and Other Expenses |
960.697 |
956.088 |
872.667 |
|
|
|
Exceptional Item- Income |
0.000 |
[57.605] |
106.140 |
|
|
|
TOTAL (B) |
4208.485 |
3465.558 |
3369.982 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1701.054 |
1429.675 |
1114.453 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
55.876 |
76.475 |
85.866 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1264.729 |
1353.200 |
1028.587 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
380.449 |
336.038 |
281.459 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
884.280 |
1017.162 |
747.128 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
132.374 |
65.730 |
127.988 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
751.906 |
951.432 |
619.140 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
909.830 |
535.309 |
338.510 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
75.191 |
95.144 |
61.914 |
|
|
|
Final Proposed |
411.784 |
411.784 |
308.070 |
|
|
|
Tax on Dividend |
65.211 |
69.983 |
52.357 |
|
|
BALANCE CARRIED
TO THE B/S |
1109.550 |
909.830 |
535.309 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
IT and IT enabled Service |
4147.527 |
3528.278 |
3070.662 |
|
|
|
Interest Income |
0.000 |
2.029 |
8.020 |
|
|
|
|
29.564 |
13.931 |
0.000 |
|
|
|
Other Income earned at overseas branches |
2.465 |
2.935 |
0.000 |
|
|
TOTAL EARNINGS |
4179.556 |
3547.173 |
3078.682 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Capital Goods |
8.016 |
10.082 |
74.611 |
|
|
TOTAL IMPORTS |
8.016 |
10.082 |
74.611 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
36.52 |
46.32 |
30.15 |
|
|
|
Diluted |
36.50 |
46.16 |
30.15 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
13.60
|
19.44 |
13.81 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
16.23
|
20.89 |
16.80 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
19.52
|
24.87 |
23.40 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.14
|
0.17 |
0.13 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.30
|
0.29 |
0.37 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.97
|
1.72 |
1.62 |
LOCAL AGENCY FURTHER INFORMATION
DETAILS OF SUNDRY
CREDITORS
(Rs. in Millions)
|
Particulars |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
Sundry Creditors |
|
|
|
|
— Dues to micro and small enterprises |
-- |
-- |
-- |
|
— Dues to Creditors other than Micro and Small Enterprises |
428.967 |
357.282 |
318.894 |
|
Total |
428.967 |
357.282 |
318.894 |
REVIEW OF
FINANCIALS
On a standalone basis, Total Income for the year ended 31st March 2011 (FY
2011) was Rs. 5529.100 Millions, an increase of 12.9% over the Total Income of
Rs. 4895.200 Millions for the year ended 31st March 2010 (FY 20 0). Profit
Before Tax (PBT) (pre-exceptional items) was Rs. 884.300 Millions, a decrease
of 7.8% from Rs. 959.500 Millions in the previous Financial Year. The PBT
Margin (pre-exceptional items) fell by 40 basis points to 15.9% in FY 2011 from
19.6% in FY 2010. Profit after Tax (PAT) for FY 2011 was Rs. 751.900 Millions
as against Rs. 951.400 Millions in FY 2010. PAT Margin fell from 19.4% in FY
2010 to 13.6% in FY 2011.
On a Consolidated basis, Total Income was Rs. 11021.900 Millions in FY
2011 as against Rs. 9234.700 Millions in FY 2010, an increase of 19.4%. PBT
(pre-exceptional items) was Rs. 1301.200 Millions in FY 2011 as compared to Rs.
1371.300 Millions in FY 2010, a decrease of 5.1%. PBT Margin (pre-exceptional
items) was at 11.8% as compared to 14.8% in FY 2010. PAT was Rs. 1073.200
Millions in FY 2011 as against Rs. 1300.800 Millions in FY 2010. PAT Margin
fell from 14.1% in FY 2010 to 9.7% in FY 2011.
The highlights of
the year were:
• Growth of 20.3% in
Consolidated Revenues;
• Employee headcount at 19,442
associates – a growth of 24.5% (Previous Year - 15,615);
• Addition of 34 new clients –
an increase of 47.2%, bringing the total to 106 clients at the end of the year;
• Acquisition of Careline
Services Limited,
• Addition of 7 new centres of
which 3 centres are in
• Setting up SEZ unit by
Hinduja Outsourcing Solutions India Private Limited, a wholly owned subsidiary
of the Company;
• Consolidated PAT for FY 2011
- Rs. 1073.200 Millions translating into a Diluted EPS of Rs. 52.09 per share;
• Cash and Cash equivalents as
on 31st March 2011 - Rs. 6189.200 Millions translating to Cash and Cash
Equivalents of Rs. 300 per share; and
• Net Worth as on 31st March
2011 - Rs. 9988.300 Millions translating to a Book Value of Rs. 485 per share.
BUSINESS REVIEW
BPO INDUSTRY
OVERVIEW
The Company focuses on ITeS BPO services within the broader IT/ITeS
industry.
While the domestic market continued to demonstrate a strong performance
with sustained growth in GDP, the key customer markets of North America and
The emergence of the newer, value added focus is evident in the manner
in which the sector has begun to actively diversify beyond core offerings and
markets through new business and pricing models, specialize in providing
end-to-end service offerings with deeper penetration across verticals,
transform process delivery through re-engineering and drive inclusive growth in
India by developing targeted solutions for the domestic Indian market. All
these factors helped
GLOBAL SOURCING
TRENDS
On the back of resurgence in global business spending, the IT services
spend increased by 1.4% in 2010. Of this,
IT outsourcing grew by 2.4%. An ROI-led focus resulted in BPO sector
growing by 4%, while software products rose by 3.7%. Within IT outsourcing,
global sourcing grew by 10.4% in 2010 validating Industry’s integral position
in service delivery chain.
The year saw wide ranging contract restructuring exercises and deal size
reductions as buyers came to terms with new business models and budgetary
constraints. With customers demanding more immediate value from IT and
forward-looking strategies that support growth and innovation, service
providers are adopting newer value focused methods incorporating operational
excellence through ongoing innovation, diversification, renewed partnerships
and alliances and recalibrated business models.
The BPO services market in Asia/Pacific (excluding
INDIAN IT - BPO
PERFORMANCE
The sector is estimated to aggregate revenues of USD 88.1 billion in FY
2011, with the IT software and services sector (excluding hardware) accounting
for USD 76.1 billion of revenues. Export Market:
• Export Revenues: Export revenues of the IT software and services
sector (excluding hardware) are estimated to gross USD 59 billion in FY 2011
accounting for a 2 million workforce. The BPO segment of this sector grew by 14
per cent to reach USD 14.1 billion.
• Geographic focus: The year was characterized by a consistent demand
from the
• Vertical Markets: While the sector’s vertical mix is well balanced
across several mature and emerging sectors, the year was characterized by broad
based demand across traditional segments such as Banking, Financial Services
and Insurance (BFSI), as well as across emerging verticals of Retail,
Healthcare, Media and Utilities.
• Service Lines: The BPO segment grew by 14% to reach USD 14.1 billion
and the year also witnessed the next phase of BPO sector evolution
characterized by greater breadth and depth of services, process re-engineering,
increased delivery of analytics and knowledge based services through platforms,
strong domestic market focus and SME centric delivery models. Changing demand
patterns led to a renewed focus on existing client relationships, mining for
new clients and restructured operations to provide focused vertical solutions.
Further, the Industry focused on achieving excellence in business process
management and delivering strong transformational benefits creating revenue
impact for clients.
DOMESTIC MARKET:
• Domestic Revenues: Domestic IT-ITeS revenues, excluding hardware, are expected
to grow at almost 16% to reach USD 17.1 billion in FY 2011. IT services is one
of the fastest growing segment in the Indian domestic market, rising by 16.8%
to reach Rs. 501 billion, driven by localized strategies designed by service
providers.
• Movement to Non-Metro Cities: Service Providers are beginning to reap
the benefits of transitioning business from Tier I to Tier III cities. These
destinations result in significant cost savings and are an attractive
proposition for the price sensitive Indian market.
• Drivers of Growth: The Domestic market in
• Government Initiatives: The Government sector has emerged as a key
catalyst for increased IT adoption - through sector reforms that encourage IT
acceptance. National e-Governance Programmes (NeGP) and the Unique
Identification Development Authority of India (UIDAI) program are landmark
programs that highlight the increased adoption of large scale IT infrastructure
and IT enabled services by Central, State and Local governments.
INDIAN IT
BPO VALUE
PROPOSITION and OUTLOOK
The top three slots in AT Kearney’s 2011 Global Services Location Index
(GSLI) are occupied by three Asian
countries: India, China and Malaysia; with India a half-point ahead of
China and a full point in front of Malaysia as per the report.
Indian IT-ITeS companies are expected to diversify their business from
core markets such as the
Indian IT companies have already begun to explore opportunities offered
by other growing markets such as
In addition, by concentrating on these markets, businesses can diversify
their risks across regions. Software Technology Parks of India (STPI) units
have played a vital role in fostering growth of the Indian IT-ITeS industry.
The cessation of tax holiday after March 2011 could slow down future expansion
proposals especially of smaller companies. However, larger companies are
expected to alleviate the marginally higher taxes and narrowing returns through
increased scale.
In future, the IT-ITeS industry is likely to go through a paradigm shift
across five parameters: Markets - Growth will be driven by new markets - SMEs,
Customers - Customers will demand ‘transformative’ value propositions
that go beyond cost leverage. As technology creates virtual supply chains,
customers will require a seamless experience across time zones and geographies
and there will be an increasing demand for innovation and end-to-end
transformation.
Service Offerings - Offerings that are high-end and deeply embedded in
customer value chains will emerge. Services and delivery will become
location-agnostic leading to new opportunities such as design services in
manufacturing and Remote Infrastructure Management (RIM). Solutions for the
domestic market will be a key focus area.
Talent - Government pressures to create local jobs and the need for
local knowledge will alter the employee mix – a higher proportion of
non-Indians with multilingual and localized capabilities. There will be a much
greater focus on ongoing development of specialized skills and capabilities.
Business models - Driven by a focus on expertise and intellectual property,
offerings will shift from piecemeal, technology-centric applications to a range
of integrated solutions and higher-end services, spanning new service lines
(e.g., green IT). Additional productivity
improvements and the development of Tier II and Tier III cities as
future delivery centres is expected to help enhance
Other aspects of the Indian ITeS industry, besides the growing breadth
and depth of the service portfolio that reflect its increasing maturity,
include the increasing global delivery footprint and continuous emphasis on
enhancing service delivery efficiency and productivity. Strong fundamentals, a
robust enabling environment and enhanced value delivery capability are the
hallmarks of the Indian IT-ITeS industry.
PERFORMANCE OF
HINDUJA GLOBAL SOLUTIONS LIMITED
The Company continued its strong performance despite the uncertainty and
volatility of the operating environment. The Total Consolidated Income for FY
2011 expanded by 19.4% to Rs. 110.219 Millions from Rs. 9234.700 Millions in FY
2010.
This performance was creditable in view of the challenges faced by the
Company during the year, viz.:
o Appreciation of the Indian
Rupee and Philippine Peso against the U.S. dollar;
o Pricing pressure in the
domestic market by domestic telecom clients due to heightened competition and a
continued reduction in ARPUs;
o Rising inflation leading to
salary revisions and increase in employee attrition rates; and
o Phasing out of some of the
Company’s tax benefits. This performance was due to initiatives
undertaken by the Company to reduce cost of delivery in order to be more price
competitive as it pursues more opportunities in the gradually improving
operating environment.
During FY 2011, in
The Company has set up its third
Apart from the
The Company will continue to pursue growth primarily from these three
areas: -
• Increase business volumes
from the existing customers;
• Increase business by
approaching new customers in the existing verticals and markets; and
• Identify and enter new
verticals and markets.
The Company believes that this diversified business model would enable
it to maintain growth and profitability in the coming years.
In future, the Company’s outsourcing projects are expected to be both
operative and consultative in nature. It will need to work more closely with
clients to better understand and evaluate strategies and business models and
identify room for improvement. Despite an improved operating environment over
the last couple of years, customers continue to be conservative with budgets and
are keen to run leaner organizations in order to sustain the cost savings
realized from measures taken in the aftermath of the global financial crisis of
2008. In order to respond to the dynamic macro-environment, the Company will
concentrate on reducing costs, increase the diversification of its business
across different markets / verticals, setup centres in best fit geographies and
sustain best practices within the organization.
SUBSIDIARIES
Pacific Horizon Limited is a wholly owned subsidiary of the Company
incorporated under the laws of
During the year, the total income was USD 5,714,604 as against USD
6,810,527 during the previous year and profit after tax was USD 4,100,355 as
against USD 5,090,352 during the previous year.
Hinduja Global Solutions Inc., (Previously known as Source1 HTMT Inc.,)
USA, a wholly owned subsidiary of Pacific Horizon Limited, Mauritius,
specializes in marketing and provides both voice and non-voice related Customer
Contact and Business Process Outsourcing services to its clientele. The name of
the Company was changed from Source1 HTMT Inc. to Hinduja Global Solutions Inc.
with effect from 29th June, 2010.
For FY 2011 Hinduja Global Solutions Inc., reported consolidated
revenues of USD 169,259,605 and Net Income of USD 2,056,094.
Affina LLC., (and its subsidiaries RMT LLC and Affina Company) “Affina”
was acquired in November 2006 by Hinduja Global Solutions lnc.,
For FY 2011, Affina recorded total revenues of USD 85,139,154 as
compared to FY 2010 revenues of USD 79,233,758 and Profit before Tax of USD
5,556,870 as compared to USD 6,087,256 in FY 2010. Apart from Affina LLC,
Hinduja Global Solutions Inc., has a subsidiary called Hinduja TMT France.
HTMT Europe Limited is a
of the
Careline Services Limited is a leading contact centre servicing more
than 20 marquee customers across verticals such as Government, FMCG, Financial
Services, Automobiles, Telecom and Retail. Established in 1977, it offers a
range of services for inbound and outbound interactions and has over 800 highly
trained employees in
For the period 21st June 2010 to 31st March 2011, Careline reported
revenues of GBP 15,626,268 and Profit after tax of GBP 820,810. Hinduja
Outsourcing Solutions India Private Limited (HOSIPL)
During FY 2011, the Company also acquired 100% equity stake of Hinduja
Outsourcing Solutions
During FY 2011, HOSIPL has commenced partial operations with
international clients from the health insurance and hospitality verticals and
recorded revenues of Rs. 27.800 Millions.
MANAGEMENT
DISCUSSION and ANALYSIS REPORT
OVERVIEW:
The financial statements have been prepared in compliance with the
requirements of the Companies Act, 1956, guidelines issued by the Securities
and Exchange Board of India (SEBI) and Generally Accepted Accounting Principles
(GAAP) in
The estimates and judgments relating to the financial statements have
been made on a prudent and reasonable basis, so that the financial statements
reflect in a true and fair manner the form and substance of transactions and
reasonably present the state of affairs, profits and cash flows for the year.
MACROECONOMIC
TRENDS:
FY 2011 started on an encouraging note as the Indian economy continued
to display remarkable resilience to the lingering effects of the global
recession in 2008- 2009. With estimated growth at 9%, the
The Indian economy continues to grow impressively on the back of strong
domestic demand. Improved levels of savings and investment coupled with
increased private consumption provide a critical component to the Indian growth
story, contributing significantly towards GDP growth.
However, higher interest rates and the disconcertingly high levels of
inflation towards the second half of FY 2011 threatened to hamper the growth
momentum. While to a large extent, its effect was contained by a well sequenced
and gradual withdrawal of monetary accommodation, inflation still remains an
area of concern for policymakers.
The services sector continues to make a steady contribution to the
Domestic GDP. The net inflows of FDI have remained a cause of concern. From
over USD 25 billion in April-November 2009, net inward FDI slowed down to USD
19 billion in April-November 2011.
According to Moody’s,
INDUSTRY OVERVIEW:
As per a recent NASSCOM report, the Indian IT/ITeS sector is estimated
to aggregate revenues of USD 88.1 billion in FY 2011, with the hardware sector
estimated to generate USD 12 billion of revenues and the IT software and
services sector (excluding hardware) accounting for USD 76.1 billion of
revenues. Of the total software and services revenues of USD 76.1 billion;
exports are expected to be USD 59 billion and the balance USD 17.1 billion will
come from the domestic market.
exports, with 90% of these revenues largely derived from the
The BPO segment in the IT/ITeS sector, the segment that the Company
focuses on, grew by 14% to reach exports of USD 14.1 billion in FY 2011.
Gartner estimates the Indian domestic BPO market to reach USD 1.4
billion in 2011, up 23.2 percent from 2010. This will be largely driven by
demand from voice based services, in addition to adoption from emerging
verticals, new customer segments and value based transformational outsourcing
platforms. The domestic market will continue to make good progress and is
expected to grow into a USD 1.69 billion market by 2012 and increase to USD
2.47 billion by 2014.
Improving market sentiment was visible in greater business volumes and
commensurate increase in people, technology and process investments by
customers. There continues to be broader acceptance of off-shoring and
outsourcing as a critical component of cost reduction strategies and
this is helping the IT/ITeS sector. A recent Gartner survey found that a high
proportion of respondents anticipated increased spending on external service
providers. Thus, the growth opportunity available to the sector continues to
remain sizeable.
Demand for outsourcing continues to permeate beyond the large global
enterprises to the medium sized ones. Customer sophistication is increasing and
service providers are increasingly required to provide consultative thinking,
process redesign and automation to bring about improvements in the clients’
business processes.
Customers are also pushing for low-cost/offshore locations and launching
projects with benchmarking initiatives that will enable them to closely monitor
and measure service provider performance. Multi-sourcing is on the rise as
customers are splitting the businesses they outsource into multiple deals based
on parameters like sub-processes, outsourcing new business/process lines and
experimenting with a range of cloud-based offerings. A maturing service
provider community has demonstrated an ability to provide service benefits such
as process re-engineering, continuous improvement, ability to support complex
processes across time zones and has a track record of providing services at
fixed prices despite rising wage costs in periods of soaring inflation. This
has substantially increased customer confidence and the Company expects this to
be a positive trend for Indian IT/ITeS service providers.
At the same time, there is emerging competition as several countries in
the Asia-Pacific region are positioning themselves to be increasingly
competitive to garner a higher share of the potential business. While India and
China remain the leaders for offshore IT and BPO services, the outsourcing
activities in countries like Malaysia, the Philippines, Vietnam, Thailand and
Indonesia are gaining traction and are slowly inching their way up as
attractive destinations for outsourcing.
The industry will need to focus on delivering additional value through
global delivery models. Strong growth with focus on transformation and enhanced
value proposition would be the guiding trend in the market. According to
NASSCOM, the industry will witness healthy growth this year, led by growth in
the core markets and supplemented by significant contributions from emerging
markets. Growth drivers include a thrust on platform BPO, Analytics, Finance
and Accounting, Remote Infrastructure Management, Application Development and
Maintenance and Cloud Services.
To capitalize on domestic opportunity and to take advantage of the
economies of scale and cost efficiencies and to create an environment for
sustainable employment generation, there is a conscious shift for expansion across
various non-metro cities in order to control costs and have access to a larger
talent pool. The industry has made efforts towards the holistic development of
the Indian economy and society creating employment, improving living standards,
career and personal development and developing a social infrastructure, thus
leading to a balanced regional growth.
This decade heralds a new beginning, a new ‘transformation’ for the
industry. Business focus, delivery confidence and risk management shall be the
key focal areas of transformative service delivery. Going forward, the outlook
remains favorable with new emerging verticals like retail, healthcare and
utilities providing a boost in growth in addition to the established sectors.
BUSINESS OVERVIEW:
HGS is one of the leading global BPOs and is among the largest, listed
pure play BPOs in
OPERATIONAL
REVIEW:
Fiscal year 2011 was a defining year for HGS, as it entered the second
decade of its operations and crossed the milestone of Rs. 10000.000 Millions (Rs.
10 billion) in revenues. The Company registered healthy growth as consolidated
revenues were up by 20.3% from Rs. 8,923.42 million in FY 2010 to Rs. 10,732.38
million in FY 2011. Consolidated Profit After Tax for the year was at Rs.
1,073.21 million compared to Rs. 1,301.10 million in FY 2010.
The Company has been able to deliver growth across almost all of its
business verticals and in each one of its geographical markets. There has been
a healthy performance in the domestic
The Company has onshore presence in the
in FY 2007. Following the acquisition, HGS has been able to enhance
Affina’s operating efficiency and its profitability has improved greatly.
Affina brought with it an impressive list of clients across diverse industries
with some relationships going beyond 20 years.
HGS has been able to offer its clients a blended business model,
encompassing onshore, near shore and offshore delivery, resulting in new
customers and business growth. As a result, Affina LLC continues to remain the
leading contributor to revenue with a share of 38% of the total revenues.
Through Affina LLC, the Company is well placed to garner new business
from the Healthcare Industry following
recent regulatory reform. Further, there has been increasing interest in
off-shoring to the
Company had identified the
The acquisition of Careline Services Limited in the
The Company will leverage its experience in the Indian market of
operating in different languages across cultural preferences, its track record
with North American customers and the global delivery model as key selling
points as it seeks to penetrate the European market.
The Company has already made good strides as it has received a strong
acceptance from Careline’s existing client base. Some marquee clients have
renewed their contracts and there is potential to scale it up further. The
Company would focus on growing the
Besides performing work off-shored from overseas market, the Company is
also exploiting outsourcing opportunities from the
In the domestic market, the Company has taken steps to consolidate its
position and generate employment opportunities even in Tier III cities, thus
promoting sustained development. Around 61% of the Company’s consolidated
revenues have natural currency hedges as the revenues and costs are in the same
currency. The remaining 39% of revenues and related profits are exposed to
USD-INR and USD Philippine Peso exchange rate variations. The Company mitigates
the foreign exchange rate variation by taking forward cover as appropriate.
The Company takes pride in the high quality of its client base of
approximately 106 clients, out of which many are Fortune 500 names, whilst the
rest are also large enterprise clients. The Company continues to be successful
in winning a high proportion of repeat business from existing clients, a
barometer of client satisfaction with the Company’s services. A large
percentage of maturing contracts continue to be renewed, providing stability to
the Company’s financial performance.
During FY 2011, the Company successfully added 34 new clients, including
about 26 clients added through Careline acquisition. The Company has 38 clients
with annual billings in excess of USD 1 million. On the revenue front, the top
5 clients contribute about 44%, top 10 clients contribute about 62% and the top
client contributes about 12% of the total revenues.
FY 2011 has been a significant year in the Company’s evolution. They continue
to make further inroads into the existing verticals that they serve by
responding to the changing needs of the clients and making sustained
improvements in the performance.
SWOT ANALYSIS:
STRENGTHS:
Pedigree: The Company is part of the Hinduja Group, a leading industrial
group with a rich heritage and diverse interests ranging from international
trade, banking and finance to automobiles.
Vision: The Company has always benefited from the vision provided by its
Board of Directors and its professional
management team who enjoy rich experience in the industry. The guidance
provided at various stages has helped the Company to achieve impressive growth
rates and reach its current position.
Global Delivery Model: With presence across six countries, the Company
efficiently services various geographies. Customers get an option to choose
from onshore and offshore centres for delivery.
Diversified Areas of Operation: The Company’s income is diversified
across a range of geographies and industries and the Company is not overly
reliant on a small number of customers. The Company earns revenues from the
Experienced Management Team: The experienced management team is a key
competitive advantage. The management team has a track record of managing high
growth businesses, possesses domain knowledge in the industries the Company
serves and has relevant experience in the geographies in which it operates.
Established Relationships with Large Global Companies: The Company works with
several “Fortune 500” companies. Many of these relationships have strengthened
over time as the Company obtains ongoing work from these clients and gains a
greater share of their processing expenditure.
WEAKNESSES:
Business Mix: The Company has a high proportion of its revenue in voice
based customer relationship management services. It is now shifting the focus
to increase revenue from non-voice based services. Hence, the strategic plan of
the Company calls for significant additional investments to achieve growth in
non-voice based services. The Company recognizes the need to add new business
processes and is exploring avenues to do so.
Susceptibility to Currency Fluctuation: The Company caters to multiple
clients across various countries. It also deals in multiple currencies across
its global operations. To the extent that it incurs costs in the same currency
as revenue, as is the case with domestic delivery to clients in the
However, for the offshore delivery of the
High rate of Attrition: The Company is in a people intensive business.
The nature of the industry as well as the scale of business requires a large
workforce. Due to a constantly evolving environment as well as the requirements
of competition, it is faced with a high rate of attrition within its employee
base. The Company has undertaken steps to manage these challenges and ensure
business continuity. Further, the Company has been able to keep attrition
amongst its senior and middle management to a minimum
OPPORTUNITIES:
Develop New Client Relationships: In addition to expanding existing
client relationships, the Company seeks to develop new long-term marquee client
relationships across the verticals. The Company is particularly focused on
building new relationships with industry leaders where potential opportunity is
large and the Company can create a meaningful impact on customer businesses
through its differentiated service offerings.
Expand Into New Markets: Historically, the outsourcing market in
Expand Global Delivery Capabilities: The Company believes that a
multi-shore global delivery platform is critical for offering a long term
viable business proposition to the clients. The Company has been an early mover
in building significant onshore and near shore delivery capabilities in US and
Inorganic Opportunities: The Company has a history of successful
acquisitions. It is open to acquisitions that provide it with entry into new
markets, add new clients or provide new process offerings. The Company has
stringent criteria in place to evaluate acquisition opportunities. Further, it
has put in place a dedicated MandA team to enhance its scope and pace of
inorganic growth.
THREATS:
Competition from other Countries: Several other countries with low cost
labor are proving to be tough competition. These countries have recognized the
attractiveness of the BPO industry and the benefits offered by it to their
domestic economies and are undertaking several initiatives to increase their
competitiveness and represent themselves as favorable alternatives for
prospective customers.
Regulatory and Political Risks: Protectionist measures adopted by
developed countries like introduction of tariff or non-tariff barriers to
outsourcing or the BPO industry to spur growth in their economies may seriously
affect the industry.
Seasonal Fluctuations: Diversified business across various geographies
and across different industries may still be affected in off season periods.
BUSINESS OUTLOOK:
According to NASSCOM, suitably exploiting opportunities, both in the
global and domestic markets, can help
reach USD 130 billion in IT-BPO revenues by FY 2015, a CAGR of 14%. By
FY 2015, the Indian IT-BPO industry is expected to contribute about 7% of the
annual GDP and create about 14.3 million employment opportunities.
Going forward, worldwide IT-BPO spending will benefit from the
accelerated recovery in emerging markets which will generate a greater
proportion of new spending. While the focus on cost control and efficiency will
remain, customers are also evaluating how investments can achieve their
business objectives, leading to an increase in project-based spending.
BPO spending is expected to be driven by analytical services, FandA and
industry-specific BPO solutions. The industry is likely to go through a
paradigm shift as growth will be driven by new markets, customers requiring
different value propositions, increase in scale and complexity of the service
offerings and the inclusion of a mix of employees with different skill sets.
By 2020, new segments, new verticals and new geographies will account
for a large proportion of growth in the addressable market.
Further, the
FINANCIAL
OVERVIEW:
The offshore business, which is delivered through centres in
The additional centres in
Revenue contribution from the top 3 verticals - ‘Telecom and
Technology’, ‘Health Insurance’ and ‘Consumer Electronics’ has demonstrated a
balanced performance.
Revenues from other verticals have also shown healthy growth rates.
There was moderate growth in the Healthcare Provider side of the business in FY
2011 with higher new business volumes. The five delivery centres
of Affina have started operating at optimum capacity and the Healthcare
reform in US is expected to add to the growth in the Healthcare revenue.
Contingent Liabilities in respect of:
(Rs. in Millions)
|
Particulars |
31.03.2011 |
31.03.2010 |
|
(i) Service Tax demand raised by authorities against which appeal has
been filed by the Company (Refer Note 1 below) |
63.308 |
35.902 |
|
(ii) Other claims against the Company not acknowledged as debts (to
the extent ascertainable) |
8.024 |
0.479 |
|
(iii) Income Tax demand raised by authorities against which appeal has
been fi led by the Company |
133.631 |
-- |
|
(iv) Other matters (Refer Note 2 below) |
1539.048 |
1404.281 |
Notes:
1. The Company has deposited an amount of Rs. 63.308 Millions (Previous
year - Rs. Nil) with the service tax authorities, which is included in “Balance
with Excise and Custom Authorities – Schedule J”.
2. Hinduja Ventures Limited has received income tax demand pertaining to
IT/ ITES business aggregating Rs. 1539.048 Millions (Previous Year - Rs.
1404.281 Millions) in respect of period prior to October 1, 2006 which will be
reimbursed by the Company pursuant to the Scheme of Arrangement and
Reconstruction for demerger of IT/ITES business into the Company sanctioned by
High Court of Judicature of Bombay and made effective on March 7, 2007. In this
regard, the Company has paid Rs. 315.000 Millions (Previous Year - Rs. 135.000
Millions) to Hinduja Ventures Limited to discharge part payment of disputed
Income tax dues pertaining to IT/ ITES business, which is included in the
Advances Recoverable in Cash or in Kind or for value to be received. Hinduja
Ventures Limited has fi led appeal against the said demand. In view of
Management and based on the legal advice obtained, the Company has fairly a
strong case for a favourable decision.
3. Future cash outflow in respect of above, if any, is determinable only
on receipt of judgements/ decisions pending with relevant authorities.
4. Subsequent to the demerger of IT/ ITES business from Hinduja Ventures
Limited into the Company, certificates in respect of tax deducted at source by
the customers under the Income Tax Act, 1961 of India aggregating Rs. 131.503
Millions (Previous Year - Rs. 131.503 Millions) were received in the name of
Hinduja Ventures Limited. In view of the Management, the Company is eligible
for the benefits of such tax deducted at source since the services were
provided by the Company. Further, certificates of tax deducted at source
aggregating Rs. 1606.653 Millions (Previous year - Rs. 142.331 Millions) are in
process of being collected from the customers.
Fixed Assets:
·
Computer Software
·
Commercial Rights
·
Land
·
·
Building
·
·
Leasehold Improvements
·
Office Equipments
·
Computers
·
Furniture and Fixtures
·
Vehicles
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.44.52 |
|
|
1 |
Rs.71.91 |
|
Euro |
1 |
Rs.62.98 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
68 |
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.