MIRA INFORM REPORT

 

 

Report Date :

10.03.2011

 

Note: Given address could not be confirmed.

 

IDENTIFICATION DETAILS

 

Name :

FLEXTRONICS TECHNOLOGIES (INDIA) PRIVATE LIMITED

 

 

Registered Office :

Plot No.3, Phase II, Sipcot Industrial Park, Sriperumbudur Taluk, Sandavellure C Village, Tamilnadu

 

 

Country :

India

 

 

Financials (as on) :

31.03.2009

 

 

Date of Incorporation :

12.01.2001

 

 

Com. Reg. No.:

070708

 

 

CIN No.:

[Company Identification No.]

U31909TN2001PTC070708

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer of Electronic Products, Electric Generator Sets and Electric Rotary Machine.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (27)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 91878800

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow

 

 

Litigation :

Clear

 

 

Comments :

Subject is a subsidiary of Flextronics International Asia Pacific Limited, Mauritius.

 

It is an established company having moderate track. Profitability of the company appears to be under severe pressures. There appears huge accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments terms are reported to be slow.

 

The company can be considered for business dealings with some caution.

 

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – April 1, 2010

 

Country Name

Previous Rating

(31.12.2009)

Current Rating

(01.04.2010)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

INFORMATION PARTED BY

 

Management Non Co-operative [Name not disclosed]

 

LOCATIONS

 

Registered Office :

Plot No.3, Phase II, Sipcot Industrial Park, Sriperumbudur Taluk, Sandavellure C Village, Tamilnadu, India

Tel. No.:

91-446-7105000

E-Mail :

omesh.raina@rediffmail.com

 

 

DIRECTORS

 

AS ON 29.09.2009

 

Name :

Mr. Manny Marimuthu

Designation :

Director

Address :

No.5, lot 32, Perstaran Kudatan Colony Heights, Malaysia - 43000

Date of Birth/Age :

11.10.1961

Date of Appointment :

12.01.2001

 

 

Name :

Mr. Bernard Jin Yang Liew

Designation :

Director

Address :

23 Palm Drive, Singapore – 456507

Date of Birth/Age :

06.02.1965

Date of Appointment :

29.07.2009

 

 

Name :

Mr. Parthiban R

Designation :

Director

Address :

No.41, Jaan Adang, UB 17, Malaysia - 40150

Date of Birth/Age :

19.01.1970

Date of Appointment :

31.12.2006

 

 

Name :

Mr. Gururaj A

Designation :

Director

Address :

449, Amar Jadhi Layout, Domhu, Bangalore – 560071, Karnataka, India

Date of Birth/Age :

05.05.1958

Date of Appointment :

30.09.2005

 

 

KEY EXECUTIVES

 

Name :

Mr. Omesh Raina

Designation :

Secretary

Date of Birth/Age :

30.04.1974

Date of Appointment :

01.06.2007

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 29.09.2009

 

Names of Shareholders

 

No. of Shares

Flextronics International Asia Pacific Limited, Mauritius.

 

58541900

Charile Rajadural

 

10

Total

 

58541910

 

PREFERENCE SHARE AS ON 29.09.2009

 

Names of Shareholders

 

No. of Shares

Flextronics International Asia Pacific Limited, Mauritius

 

105668199

 

 

AS ON 29.09.2009

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]

 

100.00

 

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Electronic Products, Electric Generator Sets and Electric Rotary Machine.

 

PRODUCTION STATUS AS ON 31.03.2009

 

Particulars

Unit

 

Installed Capacity

Actual Production

Printed Circuit Boards

Units

 

2500000

197

Mobile Phones

Units

 

1440000

510645

Modem

Units

 

NA

400276

Sneer

Units

 

75000

4.463

Set Top Box

Units

 

1000000

10.481

Base Stations

Units

 

100000

28684

Base Stations Components

Units

 

NA

62082

Copier

Units

 

NA

120

 

Licensed Capacity are example from industrial Licensing. The management certifies the installed capacities. 

 

GENERAL INFORMATION

 

No. of Employees :

Not divulged by the management.

 

 

Bankers :

Not Available

 

 

Facilities :

--

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Jain Christopher Srikanth and Srikanth

Chartered Accountant

Address :

2nd floor, Uniworth Plaza, 20 Sankey Road, Bangalore – 560020, Karnataka, India

 

 

Holding Company;

Flextronics International Asia Pacific Limited

 

 

Associates:
  • Flextronics (Nanjing) Technology Company Limited
  • Flextronics Designs Limited
  • Flextronics Industrial (Shenzhen) Company Limited
  • Flextronics Industrial (Zhuhai) Company Limited
  • Flextronics International GMBH Vienna 
  • Flextronics International Asia Pacific Limited
  • Flextronics International Ireland Limited
  • Flextronics International USA Inc
  • Flextronics International USA Div
  • Multek Technologies Limited
  • Flextronics Manufactory (Zuhai) Company Limited
  • Flextronics Manufacturing (Shanghai) Company Limited
  • Flextronics Manufacturing H Limited
  • Flax Power India Private Limited
  • Flextronics Sweden AG
  • Flextronics Manufacturing (M) SDN BHD
  • Flextronics Logistics (S) Private Limited
  • Flextronics Sales and marketing South Asia Limited
  • Flextronics Technologies (Shah Alam) SDN BHD
  • Flextronics Technologies (S) Private Limited
  • Flextronics Tech (Shah Alam) SDN BHD
  • Flextronics Tech (Malaysia) SDN BHD
  • Flextronics Sales and marketing (A.P) Limited

 

 

CAPITAL STRUCTURE

 

AS On 29.09.2009

 

Authorised Capital :

 

No. of Shares

Type

Value

Amount

85000000

Equity Shares

Rs. 10 each

Rs.850.000 Millions

115000000

Preference Shares

Rs.10 each

Rs.1150.000 Millions

 

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

 

No. of Shares

Type

Value

Amount

58541910

Equity Shares

Rs. 10 each

Rs.585.419 Millions

105668199

Preference Shares

Rs.10 each

Rs.1056.681 Millions

 

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2009

31.03.2008

31.03.2007

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

1403.338

1403.338

265.687

2] Share Application Money

716.287

0.000

3170.046

3] Reserves & Surplus

2316.688

2316.688

41.385

4] (Accumulated Losses)

(2139.613)

(1337.768)

(553.556)

NETWORTH

22969.700

2382.258

2923.562

LOAN FUNDS

 

 

 

1] Secured Loans

0.000

0.000

0.000

2] Unsecured Loans

0.000

0.000

0.000

TOTAL BORROWING

0.000

0.000

0.000

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

2296.700

2382.258

2923.562

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

2144.637

2351.300

2031.696

Capital work-in-progress

1.270

29.103

379.119

 

 

 

 

INVESTMENT

0.000

0.000

0.000

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
229.024

232.205

751.969

 

Sundry Debtors
652.185

983.035

460.146

 

Cash & Bank Balances
700.962

292.258

707.590

 

Other Current Assets
0.000

0.000

0.000

 

Loans & Advances
642.327

319.472

1423.599

Total Current Assets
2224.498

1826.970

3343.304

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
NA

NA

NA

 

Other Current Liabilities
2017.679

1767.887

2792.783

 

Provisions
56.024

57.228

37.774

Total Current Liabilities
2073.703

1825.115

2830.557

Net Current Assets
150.795

1.855

512.748

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

2296.700

2382.258

2923.562

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2009

31.03.2008

31.03.2007

 

 

 

 

 

 

 

TOTAL REVENUE

6015.818

3729.853

4162.967

 

 

 

 

 

 

PROFIT/LOSS BEFORE TAXES, EXTRA-ORDINARY ITEMS AND PRIOR PERIOD ITEMS

(783.561)

(747.676)

NA

 

 

 

 

 

 

PROVISION FOR TAX

 

 

 

 

FRINGE BENEFIT TAX

(10.721)

(12.446)

NA

 

WEALTH TAX

0.000

(0.025)

NA

 

 

 

 

 

 

PROFIT/LOSS BEFORE TAXES, EXTRA-ORDINARY ITEMS AND PRIOR PERIOD ITEMS

(794.283)

(760.148)

NA

 

 

 

 

 

 

EXTRA ORDINARY ITEMS

0.331

10.184

NA

 

 

 

 

 

 

PROFIT/LOSS AFTER TAXES, EXTRA-ORDINARY ITEMS AND BEFORE PRIOR PERIOD ITEMS

(793.951)

(770.332)

NA

 

 

 

 

 

 

PRIOR PERIOD AJUSTMENT

(7.892)

(13.879)

(77.984)

 

 

 

 

 

 

PROFIT AFTER TAX

(801.844)

(784.211)

(623.270)

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

(2139.612)

(1337.768)

(553.556)

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

3336.903

1821.013

NA

 

 

Capital Goods

89.256

215.672

NA

 

TOTAL IMPORTS

3426.159

2036.685

NA

 

 

 

 

 

 

Earnings Per Share (Rs.)

(23.13)

(27.03)

--

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2009

31.03.2008

31.03.2007

Debt Equity Ratio

(Total Liability/Networth)

 
0.09

0.77

0.96

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
1.07

1.00

1.18

 

 

LOCAL AGENCY FURTHER INFORMATION

 

SUNDRY CREDITORS DETAILS

 

Sundry Creditors Details are not available.

 

Note:

 

The registered address of the company has been shifted from 88A, Electric City, Hosur Road, Bangalore, Karnataka, India to present w.e.f. 12.11.2008

 

BACKGROUND:

 

Subject was incorporated on January 12, 2001 as a Private Limited in India under the companies Act 1956. Flextronics is a subsidiaries of Flextronics International Asia Pacific Limited, Mauritius.

 

Flextronics is engaged in the manufacture of Mobile Phones and Printed Circuit Board Assemblies (PCBA) which have applications in Telecom, Industrial electronics and consumer products on behalf of its customers globally. The company is also engaged in manufacture of outdoor cabinet Assembly (OCA) for various mobile service providers.

 

Flextronics established a global started services centre (GSSC) in 2004 at Bangalore. Subsequently, GSSC shifted its operation to Chennai in the year 2005. GSSC is registered is a separate Software Technology Park (STP) unit under the software Technology parks of India scheme. GSSC provides back offices services relating to accounts payable processing remote server access maintenance and management services etc for its affiliates worldwide.

 

Flextronics has a manufacturing facility at a Special Economic Zone (SEZ) in Sriperumbudar Taluka, Kanchipuram district in the state of Tamilnadu. Flextronics received a formal approval from a Government of India by a letter dated April 7, 2008 tom develop, operate and maintain a SEZ unit for Electronics Hardware and related services sector. Flextronics commenced operations as an SEZX unit in the fiscal tear 2006-07.

 

Flextronics has a stand alone dedicated service centre in Bangalore, which provides components level repairs and replacement services, software updates, engineering supports services in respect of electronic products. It has been established as a Domestic Tariff Area Unit (DTA)

 

Business Operations and Result:

 

During the period under report Board of Directors of the company at its meeting held on 17th April 2009 allotted 23876250 equity shares of Rs.10/- each at a premium of Rs.20/- to Flextronics International Asia Pacific Limited.

 

During the period under the report the Authorized   Share capital of the company was increased from Rs.1500.000 Millions consisting of 35000000 Equity Shares of Rs.10/- each amounting to Rs.350.000 Millions and 115000000 Preference Shares of Rs.10/- each amounting to Rs.1150.000 Millions to Rs.2000.000 Millions consisting of Rs.85.000 Millions Equity Shares of Rs.10/- each amounting to Rs.850.000 Millions and Rs.115.000 Millions Preference shares of Rs.10- each amounting to Rs.1150.000 Millions respectively.

 

During the year under report the company shifted its registered office from the state of Karnataka to the state of Tamilnadu. Approval of CBL was obtained vide CLB order dated 12th November 1008. Fresh Certificate of Incoporation dated 10th February 2009 was issued  by the Registered of Companies, Chnnai in this regards. 

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                              None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.02

UK Pound

1

Rs.72.70

Euro

1

Rs.62.54

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

4

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

3

--PROFITABILIRY

1~10

2

--LIQUIDITY

1~10

4

--LEVERAGE

1~10

3

--RESERVES

1~10

--

--CREDIT LINES

1~10

3

--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

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

27

 

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

 

-

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.