MIRA
INFORM REPORT
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Report Date : |
26.03.2011 |
IDENTIFICATION DETAILS
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Name : |
KPIT CUMMINS INFOSYSTEMS LIMITED |
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Registered
Office : |
35 and 36, |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
28.12.1990 |
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Com. Reg. No.: |
059594 |
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CIN No.: [Company Identification
No.] |
L72200PN1990PLC059594 |
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Legal Form : |
Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Providing Software Solutions and Services |
RATING & COMMENTS
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MIRA’s Rating : |
A (58) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 15400000 |
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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 a reputed company having fine track.
Financial position of the company appears to be sound. Trade relations are
reported as fair. Business is active. Payments are reported to be regular and
as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
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Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INFORMATION DECLINED BY
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Name : |
Ms. Priya Hardikar |
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Designation : |
Assistant Vice President of Finance |
LOCATIONS
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Registered Office : |
35 and 36, |
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Tel. No.: |
91-20-66525000 |
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Fax No.: |
91-20-66525001 |
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E-Mail : |
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Website : |
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Branches : |
Located At
Located At Overseas: |
DIRECTORS
AS ON 31.03.2010
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Name : |
Mr. S.B. ( |
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Designation : |
Chairman and Group CEO |
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Name : |
Mr. Amit Kalyani |
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Designation : |
Director |
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Name : |
Dr. Srikant Datar |
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Designation : |
Director |
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Name : |
Dr. R.A. Mashelkar |
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Designation : |
Director |
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Name : |
Ms. Lila Poonawalla |
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Designation : |
Director |
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Name : |
Mr. Sudheer Tilloo |
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Designation : |
Director |
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Name : |
K.V. Krishnamurthy |
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Designation : |
Director (Resigned with effect from January 18,
2010) |
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Address : |
Mr. Anant Talaulicar |
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Date of Birth/Age : |
Director |
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Name : |
Mr. Bruce Carver |
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Designation : |
Director |
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Name : |
Elizabeth Carey |
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Designation : |
Director |
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Name : |
Floyd Rutan |
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Designation : |
Alternate Director |
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Name : |
Mr. Deepak Malik |
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Designation : |
Director |
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Name : |
Mr. Mark Gerstle |
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Designation : |
Alternate Director |
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Name : |
Dwayne Allen |
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Designation : |
Alternate Director |
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Name : |
Mr. Girish Wardadkar |
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Designation : |
President and Executive Director |
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Date of Birth/Age : |
46 Years |
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Qualification : |
BE (Mechanical) |
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Experience : |
21 Years |
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Date of Appointment : |
19.01.2005 |
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Last Employment |
GE Capital Int |
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Name : |
Mr. Kishor Patil |
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Designation : |
CEO and Managing Director |
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Date of Birth/Age : |
43 Years |
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Qualification : |
B. Com, FCA, AICWA |
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Experience : |
22 Years |
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Date of Appointment : |
28.12.1982 |
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Last Employment |
Practising Chartered Accountant
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KEY EXECUTIVES
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Name : |
Ms. Priya Hardikar |
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Designation : |
Assistant Vice President of Finance |
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Name : |
Mr. Anil Khatri |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.12.2010
|
Category of
Shareholder |
Total No. of
Shares |
Total Shareholding
as a % of total
No. of Shares |
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(A) Shareholding of Promoter and Promoter Group |
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7253605 |
9.16 |
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11970805 |
15.12 |
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4360322 |
5.51 |
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(B) Public Shareholding |
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8402152 |
10.61 |
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237578 |
0.30 |
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5917400 |
7.47 |
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6619349 |
8.36 |
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10730924 |
13.55 |
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13394915 |
16.92 |
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2064415 |
2.61 |
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119115 |
0.15 |
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6166045 |
7.79 |
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46957 |
0.06 |
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1183264 |
1.49 |
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275540 |
0.35 |
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328900 |
0.42 |
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114970 |
0.15 |
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Total |
79186256 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
TrustsBUSINESS DETAILS
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Line of Business : |
Providing Software Solutions and Services |
GENERAL INFORMATION
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Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Deloitte Haskins and Sells Chartered Accountant |
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Address : |
706, “B” Wing,
7th Floor, ICC Trade Tower, International Convention Centre, Senapati Bapat
Road, Pune – 411016, Maharashtra, India |
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
AS ON 31.03.2010
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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150000000 |
Equity Shares |
Rs. 2 each |
Rs.300.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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78523041 |
Equity Shares [of the above shares 44,181,453 equity shares of Rs. 2 each post-split
are allotted as fully paid-up pursuant to contracts without payments being
received in cash] |
Rs. 2 each |
Rs.157.046
millions |
Note:
Equity Shares 480,080
of Rs. 2 each have been issued during the year under the Employee Stock Option
Plan of the Company.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
157.046 |
156.085 |
155.765 |
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2] Share Application Money |
0.615 |
0.000 |
28.045 |
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3] Reserves & Surplus |
3709.867 |
1559.889 |
2569.346 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
3867.528 |
1715.974 |
2753.156 |
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LOAN FUNDS |
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1] Secured Loans |
1107.742 |
1180.137 |
857.786 |
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2] Unsecured Loans |
0.000 |
4.619 |
7.077 |
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TOTAL BORROWING |
1107.742 |
1184.756 |
864.863 |
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DEFERRED TAX LIABILITIES |
51.672 |
60.498 |
50.467 |
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Outstanding Employees Stock Options |
16.684 |
0.000 |
0.000 |
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TOTAL |
5043.626 |
2961.228 |
3668.486 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1124.404 |
1131.578 |
1081.350 |
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Capital work-in-progress |
277.625 |
347.544 |
206.973 |
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INVESTMENT |
2265.539 |
833.636 |
721.332 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
0.000 |
0.000 |
0.000 |
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Sundry Debtors |
999.123
|
1287.306 |
1228.169 |
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Cash & Bank Balances |
578.734
|
1229.076 |
577.856 |
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Other Current Assets |
0.000 |
0.000 |
0.000 |
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Loans & Advances |
647.207
|
483.228 |
574.474 |
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Total
Current Assets |
2225.064
|
2999.610 |
2380.499 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Sundry Creditors |
312.215
|
319.151 |
237.268 |
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Other Current Liabilities |
360.151
|
1858.138 |
248.619 |
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Provisions |
176.640
|
173.851 |
235.781 |
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Total
Current Liabilities |
849.006
|
2351.140 |
721.668 |
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Net Current Assets |
1376.058
|
648.470 |
1658.831 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
5043.626 |
2961.228 |
3668.486 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SALES |
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Income |
4270.446 |
6441.810 |
4633.546 |
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Other Income |
0.000 |
0.000 |
247.462 |
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TOTAL (A) |
4270.446 |
6441.810 |
4881.008 |
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Less |
EXPENSES |
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Software Development Expenses |
2324.495 |
3883.523 |
3142.912 |
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Selling and Distribution Expenses |
65.035 |
59.820 |
54.426 |
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Administrative Expenses |
560.334 |
851.703 |
705.477 |
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Other Expenses |
115.865 |
668.094 |
0.000 |
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TOTAL (B) |
3065.729 |
5463.140 |
3902.815 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1204.717 |
978.670 |
978.193 |
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Less |
FINANCIAL
EXPENSES (D) |
21.250 |
42.016 |
67.444 |
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1183.467 |
936.654 |
910.749 |
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
281.742 |
232.556 |
203.773 |
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PROFIT BEFORE
TAX (E-F) (G) |
901.725 |
704.098 |
706.976 |
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Less |
TAX (H) |
117.227 |
76.410 |
66.134 |
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PROFIT AFTER TAX
(G-H) (I) |
784.498 |
627.688 |
640.842 |
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Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
NA |
NA |
NA |
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Less |
APPROPRIATIONS |
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|
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Transfer to General Reserve |
79.000 |
63.000 |
64.500 |
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Dividend |
64.095 |
54.782 |
63.783 |
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Tax on Dividend |
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Transfer to KPIT Cummins Infosystems Limited
Community Foundation Reserve |
10.000 |
10.000 |
10.000 |
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BALANCE CARRIED
TO THE B/S |
631.403 |
499.904 |
502.559 |
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EARNINGS IN
FOREIGN CURRENCY |
|
|
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|
Software services and products-exports |
3700.961 |
5948.958 |
NA |
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Interest on Fixed Deposits |
0.033 |
0.062 |
NA |
|
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Interest from Inter Company loans |
3.535 |
4.782 |
NA |
|
|
|
Professional Fees-Inter Company |
9.557 |
9.137 |
NA |
|
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TOTAL EARNINGS |
3714.086 |
5962.939 |
NA |
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IMPORTS |
|
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Capital Goods |
43.324 |
80.692 |
NA |
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|
|
|
|
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|
Earnings Per
Share (Rs.) |
10.04 |
8.05 |
8.33 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Sales Turnover |
1067.720 |
1183.700 |
1215.920 |
|
Total Expenditure |
846.420 |
950.700 |
1050.570 |
|
PBIDT (Excl
OI) |
221.300 |
233.000 |
165.350 |
|
Other Income |
(52.850) |
29.970 |
13.010 |
|
Operating
Profit |
158.440 |
262.970 |
178.360 |
|
Interest |
4.500 |
2.110 |
4.330 |
|
Exceptional
Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
153.940 |
260.860 |
174.030 |
|
Depreciation |
71.200 |
73.940 |
75.970 |
|
Profit
Before Tax |
82.740 |
186.920 |
98.060 |
|
Tax |
18.310 |
30.470 |
0.840 |
|
Reported PAT |
64.430 |
156.450 |
97.210 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
64.430 |
156.450 |
97.210 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
18.37
|
9.74 |
13.12 |
|
|
|
|
|
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|
Net Profit Margin (PBT/Sales) |
(%) |
21.11
|
10.93 |
15.25 |
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|
Return on Total Assets (PBT/Total Assets} |
(%) |
26.92
|
20.21 |
39.20 |
|
|
|
|
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|
Return on Investment (ROI) (PBT/Networth) |
|
0.23
|
0.41 |
0.26 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.52
|
2.09 |
0.59 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.62
|
1.27 |
3.29 |
LOCAL AGENCY FURTHER INFORMATION
Result of
Operations
The global meltdown
has made a significant impact on the growth of the IT industry and the economy
at large and KPIT is no exception to this. Revenue growth in the fiscal has
declined, with total sales in revenue terms being comparatively lower than
previous year. Due to the global meltdown, like other IT companies, the Company
also decided to shift its onsite operations to offshore. The change in this
business model, resulted into a decline in revenues. However the total volume
of business and the number of employees working on the projects have remained
almost same as previous year. The Company has managed to sustain its trend of
growth in profits. In light of the same, the result of operations is reported
herein below. Total consolidated revenue for the fiscal year 2009-10 (FY10) was
Rs. 7,316.41 Million. Gross Profit and Earnings before depreciation, interest
and tax (EBITDA) are Rs.3,225.91 Million and Rs.1,614.43 Million, respectively.
Gross profit margin improved by 0.41% to 44.1% of the revenue. Net profit after
tax grew by 30.19% to Rs.857.31 Million. The revenues for the year on a
consolidated basis in USD terms are USD 154.52 Million as against USD 174.10
Million during the previous year. Average realization rate was Rs. 47.35 per US
Dollar. Standalone revenue fo the fiscal
year 2009-10 (FY10) was Rs. 4,270.45 Million. Gross profit is at Rs.1,945.55
Million. Net profit after tax grew by 24.98% to Rs.784.50 Million.
Transfer to Reserves
They propose to
transfer Rs. 79 Million to the General Reserve. An amount of Rs. 704.21 Million
is proposed to be retained in the Profit and Loss Account.
FINANCIAL PERFORMANCE
Revenues:
Revenues for the
year stood at USD 153.76 Million. In Rupee terms, revenues were Rs. 7,316.41
Million as compared to Rs. 7,931.55 Million last year. This was the first year
in the last 10 years, where they registered a fall in year on year revenues.
Their Top Customer, Cummins, reduced the total IT spend drastically this year
as compared to the last year and as a result the decline in Cummins absolute
revenues was Rs. 889 Million during the year. The non Cummins revenues,
including
They have been
able to maintain their absolute revenues in US geography even after the steep
fall in Cummins revenues which was aided by the acquisition of Sparta Consulting
Inc., the revenues for which were consolidated for a period of four and half
months during the year.
Manufacturing as
an industry was worst hit during the economic downturn which was reflected in
their revenues from this vertical during the year. Though within manufacturing
vertical the automotive industry was even nastier, their automotive vertical
saw a decline in revenues only in the first quarter. Their work in this area is
more of R and D nature and of less discretionary nature, they were able to
maintain their share of revenues in this space after the fall in the first
quarter. The BFSI segment led the economic recovery and they were also able to
grow their small pie of BFSI during the year. Energy and Utilities vertical was
opened up during the year with a small share in the total revenues of the
Company.
MANAGEMENT
DISCUSSION AND ANALYSIS
Industry Development:
The fiscal year 2009-10
can be described as a year of economic turbulence. The mortgage and fiscal
crisis took on the global economy, followed by unemployment, declining GDP and
weakened demand environment. IT industry was also affected adversely by this
turmoil. The technology related spending was reduced drastically. There was not
much uptick in the demand scenario and pricing pressures were felt across the
industry with clients emphasizing on contract renegotiation. Some customers
went bankrupt, while others were delaying the payments and deals. With the
rapidly changing macro-economic scenario, customer demands and expectations
have also changed. Customers are maintaining a cautious approach while spending
money on their IT requirements. They are also looking for optimum utilization
of that money by deriving maximum value in the products and solutions offered.
This has emphasized the need for transformation in business models and service
delivery, while bringing in more flexibility. The industry is looking to
diversify beyond its key offerings and markets, defining new business and
pricing models, transforming the delivery process through technology innovation
and thus ensuring cost efficiency.
STRUCTURAL
CHANGES:
l Changing Customer Demand — Customer
requirements are changing as they expect IT to play a key role in increasing
their enterprise value. This doesn’t focus on simple cost cutting measures but
transformation needs to be done in business processes, workforce practices,
operation logistics, sales and marketing methodology and information use.
l Emergence of new models — Companies
understand the significance of IT to the economic performance which extends
beyond managing expenditures. Emergence of SAAS and cloud computing, shared
services, and more selective outsourcing are some new priorities to address
constrained IT budgets.
l New markets — The traditional markets of US and
l Varied offerings — Indian IT service offerings have grown
from application development and maintenance, to end-to-end solutioning, with
testing services, engineering and R and D services, infrastructure services,
consulting and system integration. These are the new service areas for
increased IT spending.
l Innovation — IT industry has been developing its
capabilities to bring in transformation in the business processes through
increased R and D spend. Now the IT companies are more focused on IP creation,
development of new technologies including process and business model innovation
and increased domain expertise. There has been a 29 times increase in patents
over FY2005-FY2008, and average R and D spend of 1 per cent of revenues.
(Source: NASSCOM SR 2010)
l Green growth — There is an emerging green revolution
where the industry looks forward to develop a business model that is not only
competitive but sustainable with minimum ecological footprint. The industry is
estimated to aggregate revenues of USD 73.1 Billion in FY2010, with the IT
software and services industry accounting for USD 63.7 Billion of revenues.
Export revenues are estimated to gross USD 50.1 Billion in FY2010, growing by
5.4 per cent over FY2009, and contributing 69 per cent of the total IT-BPO
revenues. Software and services exports (including BPO) are expected to account
for over 99 per cent of total exports, employing around 1.8 million employees.
The engineering design and products development segments that involve IP driven
service capabilities command an exports revenue share of 20 per cent,
generating revenues of USD 10 Billion in FY2010,
growing by 4.2 per
cent. The demand scenario has improved in the last two quarters of FY 2009-10
with improving deal flow, volume growth, stable pricing and faster decision
making cycle. These improving economic conditions indicate towards return of
customer confidence and growth revival. IT services is expected to grow by 2.4
per cent in 2010, and 4.2 per cent in 2011 as companies coming out of recession
are now looking at IT for achieving the competitive edge. (Source: NASSCOM SR
2010)
Company’s Focus
and Strategy:
Challenges:
The industries to
which they offer their services and solutions have been badly hit by this
downturn. Manufacturing industry has been the worst impacted with manufacturers
reducing their capacity utilization, cutting down on the overall IT spends and
halting the discretionary IT projects. The automotive industry faced the heat
with declining car sales. Weak or negative GDP growth and the financial crisis
created pressure on the automakers credit profile. The global semiconductor
industry saw revenues declining by 10.5% in 2009 to USD 228.4 Billion. This was
the first time when the semiconductor industry saw two consecutive years of
revenue decline. There is a new challenge as manufacturers need to save costs
to protect their financial results, while they also need innovative products
and solutions to retain the existing and acquire the new customers.
Opportunities:
The economic
challenges have provided an impetus to create new growth opportunities. As
companies have been fighting the economic turmoil, they never lost sight of
their client demands. A “new normal” business environment has been established in
the industry, where companies with customer focus, innovative offerings and
with a competitive cost base will only survive. Manufacturing companies are
looking at IT to bring in flexible and cost effective manufacturing and thus
increase the value for its customers. There is a demand growth for more
customer facing applications like SCM, CRM and BI applications. Cloud computing
is another area which may drive the IT need of manufacturing industry during
the year mainly due to its manageable IT infrastructure and cost effectiveness.
The mid-market segment remains a major growth avenue for enterprise application
software. Green IT is the new development in this industry with corporations
focusing on saving power and energy and working on sustainable models which are
environment friendly.
Fixed Assets:
v Land
v Building
v Plant and Machinery
v Furniture and Fixture
v Vehicles
v Goodwill
v Software Package
v Computers
PRESS RELEASE:
KPIT Cummins acquires US based CPG Solutions
Acquisition will expand
KPIT Cummins’ Oracle consulting portfolio and accelerate growth
Combined consulting
practice will offer full-range Oracle solutions and services to customers in
the Manufacturing, Energy and Utilities space Pune (India), Florida (USA), September 27,
2010 – KPIT Cummins Infosystems Limited (BSE: 532400; NSE: KPIT), a
global IT consulting and
product engineering partner to manufacturing corporations today announced it
has entered into a definitive
agreement to acquire US based CPG Solutions (http://www.cpgsolutions.com), a
provider of premium Oracle Consulting
services to manufacturing and supply chain companies. The agreement is for a
total consideration of INR 600 millions
which includes a guaranteed consideration of INR 270 millions and a milestone
based consideration of INR 330 millions,
the payment would be made over a period of 3 years.
Strategic
Rationale
KPIT Cummins is
highly focused on the Manufacturing and Energy and Utilities industries, which
account for 85% of the Company’s revenues. Rendering a full range of services
to these industries is our primary strategic rationale. We are experiencing a
rapid growth in demand for enterprise applications on ERP, Supply Chain
Management, Product Lifecycle Management (PLM) and Customer Relationship
Management (CRM) by these industries and Oracle is a major underlying platform
in this space. CPG Solutions, an Oracle Gold Partner, is a focused player in
solutions for the companies in Manufacturing, Supply Chain and Engineering
space with over a decade of specialized consulting experience in this focused
area.
The acquisition of
CPG Solutions will further strengthen KPIT’s strategic position as preferred
Oracle partner for manufacturing companies and is designed to complement KPIT’s
strengths in global ERP roll-outs, implementation and support and maintenance
services.
Highlights:
Reinforces status as a full range Oracle services
provider: The combination will make KPIT a strong specialist in providing full
range Oracle solutions for companies in the Manufacturing and Energy and
Utilities space. CPG’s consultants with average 12+ years of high-end
techno-functional consulting experience for the manufacturing industry will
deepen the Consulting expertise at KPIT.
Expanded portfolio to create larger opportunities: Combined Oracle
practice will be a credible contender for
large
transformational business opportunities in Manufacturing and Energy and
Utilities industries.
Mr. Kishor Patil,
MD and CEO of KPIT Cummins said “In the next 3 years, we aim to build an INR
4000+ millions (USD 100 million) best in class Oracle consulting practice
focused on the Manufacturing, Energy and Utilities industry. In doing this, CPG
Solutions will play a pivotal role in establishing a strong presence in the
Jim Daleen, CEO,
CPG Solutions added: “Being part of KPIT Cummins family will enable CPG to provide
global scale and proven off-shore services options to our customers. The
combined services portfolio from both companies coupled with focus on our
target industries puts us in the best possible position to enable Oracle customers
maximize value from their technology investments.”
About CPG
Solutions:
Founded in 1997
and based in
companies with
Oracle Applications consulting services. CPG’s consulting services encompass
installations and upgrades of Oracle ERP, Oracle Business Intelligence,
Hyperion Financial software and the integration of Agile and other Product
Lifecycle Management software into Oracle ERP systems.
http://www.cpgsolutions.com
About KPIT Cummins
KPIT Cummins (BSE:
532400; NSE: KPIT), partners with more than 100 global manufacturing
corporations in bringing products faster to their target markets. It helps
customers globalize their process and systems efficiently through a unique blend
of domain-intensive technology and process expertise and uncompromising quality
standards. As Oracle GOLD partner, KPIT Cummins is a leading implementer and
integrator for e-business that use Oracle products such as Oracle E-Business
Suite, Oracle Database, Oracle Fusion Middleware, Oracle Business Intelligence,
and CRM-On- Demand and Demantra Solutions. Please visit www.kpitcummins.com for
more information.
Some of the statements in this update that are not historical facts are
forward-looking statements. These forward-looking statements include our
financial and growth projections as well as statements concerning our plans,
strategies, intentions and beliefs concerning our business and the markets in
which we operate. These statements are based on information currently available
to us, and KPIT Cummins assumes no obligation to update these statements as
circumstances change. There are risks and uncertainties that could cause actual
events to differ materially from these forward-looking statements. These risks
include, but are not limited to, the level of market demand for our services,
the highly competitive market for the types of services that we offer, market
conditions that could cause our customers to reduce their spending for our services,
our ability to create, acquire and build new businesses and to grow our
existing businesses, our ability to attract and retain qualified personnel,
currency fluctuations and market conditions in India and elsewhere around the
world, and other risks not specifically mentioned herein but those that are
common to industry.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.65 |
|
|
1 |
Rs.71.91 |
|
Euro |
1 |
Rs.63.28 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
58 |
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.