MIRA
INFORM REPORT
|
Report Date : |
25.03.2011 |
IDENTIFICATION DETAILS
|
Name : |
FRONTIER BUSINESS SYSTEMS PRIVATE LIMITED |
|
|
|
|
Registered
Office : |
No. 3, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2010 |
|
|
|
|
Date of
Incorporation : |
26.08.1994 |
|
|
|
|
Com. Reg. No.: |
016155 |
|
|
|
|
CIN No.: [Company Identification
No.] |
U67120KA1994PTC016155 |
|
|
|
|
Legal Form : |
Private Limited Liability Company
|
|
|
|
|
Line of Business
: |
IT Services and Trading |
RATING & COMMENTS
|
MIRA’s Rating : |
A (60) |
|
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 |
|
Maximum Credit Limit : |
USD 1150000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established company having fine track records.
Financial position of the company appears to be sound. Trade relations are reported
as fair. Payments are reported to be regular and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INFORMATION DECLINED BY
Management Non Co Operative (Name not Disclosed)
LOCATIONS
|
Registered Office : |
No. 3, |
|
Tel. No.: |
91-80-44229191 |
|
Fax No.: |
91-80-44229192 |
|
E-Mail : |
|
|
|
|
|
Branches : |
Mumbai
Tel
: 91 (44) 6160 9191
Tel:
91 (40) 6160 9191
Kerala Tel:
91 (484) 6069191 Coimbatore |
|
|
|
DIRECTORS
AS ON 30.09.2010
|
Name : |
Mr. Ravi M Verdes |
|
Designation : |
Director |
|
Date of Birth/Age : |
02.06.1965 |
|
Date of Appointment : |
26.08.1994 |
|
|
|
|
Name : |
Mr. Sarah Ann Verdes |
|
Designation : |
Director |
|
Date of Birth/Age : |
12.06.1974 |
|
Date of Appointment : |
29.09.2001 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2010
|
Names of Shareholders |
No. of Shares |
|
Mr. Ravi M Verdes |
416500 |
|
Mr. Sarah Ann Verdes |
73500 |
|
Total |
490000 |
AS ON 30.09.2010
|
Equity Share
Breakup |
|
Percentage of
Holding |
|
Category |
|
|
|
Directors or relatives of directors |
|
100.00 |
|
|
Total
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
IT Services and Trading |
|
|
|
|
Services: |
Solutions
Services
|
GENERAL INFORMATION
|
No. of Employees : |
350 Approximately |
||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||
|
Bankers : |
Ř
Citibank
NA, Prestige Meridian-ii, No. 30, Ř
Syndicate Bank Ř Axis Bank Ř HDFC Bank |
||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
A Bala Murali Chartered Accountant |
|
Address : |
MU 201, Towns End, Avalahalli Village, Doddaballapur Road, Yelahanka,
Bangalore 560064, Karnataka, India |
|
|
|
|
Associates/Subsidiaries : |
Nil |
CAPITAL STRUCTURE
AS ON 30.09.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
500000 |
Equity Shares |
Rs. 10 each |
Rs.5.000 millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
490000 |
Equity Shares |
Rs. 10 each |
Rs.4.900 millions |
|
|
|
|
|
Note:
Of the above shares 280000 shares are allotted
as fully paid up by way of Bonus Shares by capitalizing Reserves
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 |
4.900 |
4.900 |
4.900 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
283.544 |
244.844 |
189.445 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
288.444 |
249.744 |
194.345 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1.484 |
55.491 |
63.854 |
|
|
2] Unsecured Loans |
0.000 |
0.119 |
0.056 |
|
|
TOTAL BORROWING |
1.484 |
55.610 |
63.910 |
|
|
DEFERRED TAX LIABILITIES |
6.270 |
4.083 |
11.252 |
|
|
|
|
|
|
|
|
TOTAL |
296.198 |
309.437 |
269.507 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
99.693 |
113.501 |
98.444 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
32.329 |
35.342 |
61.117 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
14.305
|
8.164 |
4.953 |
|
|
Sundry Debtors |
189.086
|
233.286 |
195.057 |
|
|
Cash & Bank Balances |
34.128
|
7.176 |
10.902 |
|
|
Other Current Assets |
0.000 |
0.000 |
0.000 |
|
|
Loans & Advances |
163.867
|
126.476 |
92.657 |
|
Total
Current Assets |
401.386
|
375.102 |
303.569 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
88.803
|
95.434 |
80.067 |
|
|
Other Current Liabilities |
25.338
|
22.008 |
42.015 |
|
|
Provisions |
123.069
|
97.066 |
71.541 |
|
Total
Current Liabilities |
237.210
|
214.508 |
193.623 |
|
|
Net Current Assets |
164.176
|
160.594 |
109.946 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
296.198 |
309.437 |
269.507 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Sales |
835.800 |
904.708 |
934.311 |
|
|
|
Other Income |
42.933 |
48.739 |
40.731 |
|
|
|
TOTAL (A) |
878.733 |
953.447 |
975.042 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Increase/(Decrease) in Finished Goods |
(6.140) |
(3.211) |
(0.808) |
|
|
|
Administrative Expenses |
804.871 |
870.471 |
899.413 |
|
|
|
TOTAL (B) |
798.731 |
867.260 |
898.605 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
80.002 |
86.187 |
76.437 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
NA |
NA |
NA |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
80.003 |
86.187 |
76.437 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
14.116 |
11.509 |
11.173 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
65.887 |
74.678 |
65.264 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
27.187 |
19.280 |
24.273 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
38.700 |
55.398 |
40.991 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
78.97 |
113.06 |
83.26 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
4.40
|
5.81 |
4.20 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
7.88
|
8.25 |
6.98 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
13.14
|
15.28 |
16.23 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.22
|
0.30 |
0.33 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.84
|
1.09 |
1.38 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.69
|
1.74 |
1.56 |
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITORS
DETAILS
|
Particulars |
31.03.2010
|
31.03.2009 |
31.03.2008 |
|
|
|
|
|
|
For Suppliers |
85.741
|
86.849 |
77.026 |
|
For Expenses |
3.062
|
8.585 |
3.041 |
|
Sundry Creditors |
88.803
|
95.434 |
80.067 |
OVERVIEW ON
OPERATIONAL / FINANCIAL PERFORMANCE
During this fiscal
year, the Company’s revenue and profit have come down considerably when compared
to previous year in-spite of the efforts put forth by the Company.
The Company has
recorded a Turnover of Rs.835.800 millions and Net Profit of Rs. 65.887 millions and
thereby evidencing a recession in Turnover by 7.62%, and the Net Profit also has
declined by 11.77% when compared to previous year’s financial performance. The
management of the Company is taking crucial actions and striving towards
achieving the desired operations and capture the constructive atmosphere of the
market.
NOTE:
Registered office of the company has been shifted from
FIXED ASSETS:
- Maruthi Van
- Furniture and
Fixture
- Air
Conditioners
- Generator
- Elevator
- Land
- Building
- Tat Indica
- TVS Champ
- Hyundai I10
- Honda Activa
- Opel Corsa
FORM 8
|
Corporate
identity number of the company |
U67120KA1994PTC016155 |
|
Name of the
company |
FRONTIER BUSINESS SYSTEMS PRIVATE LIMITED |
|
Address of the registered
office or of the principal place of
business in |
No. 3, |
|
This form is for |
Modification of
charge |
|
Type of charge |
Immovable
property Book debts Others |
|
Particular of
charge holder |
Citibank NA,
Prestige Meridian-ii, No. 30, Email: raja.prashanth@citi.com |
|
Nature of
instrument creating charge |
Memorandum of Entry |
|
Date of
instrument Creating the charge |
26.09.2008 |
|
Amount secured by
the charge |
Rs. 120 000
millions |
|
Brief of the
principal terms an conditions and extent and operation of the charge |
Rate of interest As agreed between
the bank and the company from time to time Terms of repayment Repayable on
demand Margin Stock: 32% or
such other margin as agreed between the bank and the company Book Debts: 32%
or such other margin as agreed between the bank and the company Plant and Machinery:
44% or such other margin as agreed between the bank and the company Extent and operation of the charge First exclusive
charge on the movable assets (including stock, book debts and plant &
machinery) |
|
Short particulars
of the property charged (Including location of the property) |
First exclusive
charge on all present and future stocks and book debts, plant and machinery,
office equipment including computers, air conditioners, furniture and
fixtures and all movable assets of the company |
|
Particulars of
the present modification |
Additional
Security created by Equitable mortgage by deposit of title deed in respect of
immovable property of land and building located @ Site No. 3, Wood Street,
BMP No. 76, Bangalore-560 001 |
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.77 |
|
|
1 |
Rs.72.66 |
|
Euro |
1 |
Rs.63.06 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
7 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
60 |
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.