MIRA
INFORM REPORT
|
Report Date : |
04.05.2011 |
IDENTIFICATION DETAILS
|
Name : |
HEXAWARE TECHNOLOGIES LIMITED |
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Registered
Office : |
152, |
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Country : |
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Financials (as
on) : |
31.12.2010 |
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Date of
Incorporation : |
20.11.1992 |
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Com. Reg. No.: |
069662 |
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CIN No.: [Company Identification
No.] |
L72900MH1992PLC069662 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
BLRH02137C CHEH03372F |
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PAN No.: [Permanent Account No.] |
AABCA3203F AAACH1474L |
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Legal Form : |
A Public Limited Liability Company. The company’s shares are listed on
the stock exchanges. |
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Line of Business
: |
The company is engaged in providing Software Services and Consultancy. |
RATING & COMMENTS
|
MIRA’s Rating : |
A (61) |
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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 34000000 |
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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. Trade relations are reported as
fair. Business is active. 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 DENIED BY
|
Name : |
Mr. Sandesh P. |
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Designation : |
Senior Manager – Accounts |
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Date : |
03.05.2011 |
LOCATIONS
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Registered Office : |
152, |
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Tel. No.: |
91-22-67919595 |
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Fax No.: |
91-22-67919500 |
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E-Mail : |
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Website : |
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Head Office : |
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Tel. No.: |
609-409-6950 |
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Fax No.: |
609-409-6910 |
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Corporate Office : |
96-97, Mittal Chambers, Nariman Point, Mumbai – 400021, |
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Tel. No.: |
91-22-66542682/83 |
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Fax No.: |
91-22-22872939 |
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Branches : |
Located at:
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Overseas Office : |
Located at: |
DIRECTORS
As on 31.12.2010
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Name : |
Mr. Shailesh V. Haribhakti |
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Designation : |
Director |
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Name : |
Ms. Preeti Mehta |
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Designation : |
Director |
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Name : |
Mr. Bharat Shah |
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Designation : |
Director |
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Name : |
Mr. S. K. Mitra |
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Designation : |
Director |
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Name : |
Mr. R. V. Ramanan |
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Designation : |
Executive Director and President – Global Delivery |
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Name : |
Mr. P. R. Chandrasekar |
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Designation : |
Global CEO and Vice Chairman |
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Name : |
Mr. Atul K. Nishar |
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Designation : |
Chairman |
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Name : |
Mr. L. S. Sarma |
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Designation : |
Director |
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Name : |
Dr. (Mrs.) Alka Atul Nishar |
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Designation : |
Director |
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Name : |
Mr. Sunish Sharma |
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Designation : |
Director |
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Name : |
Mr. Subrata Kumar Mitra |
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Designation : |
Director |
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Name : |
Mr. Ashish Dhawan |
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Designation : |
Director |
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Name : |
Mr. S. Doreswamy |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Ms. Gunjan Methi |
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Designation : |
Assistant Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As On 31.12.2010
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
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556,840 |
0.41 |
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40,702,228 |
30.25 |
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41,259,068 |
30.66 |
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Total shareholding of Promoter and Promoter Group (A) |
41,259,068 |
30.66 |
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(B) Public Shareholding |
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7,576,127 |
5.63 |
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21,740 |
0.02 |
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5,248,199 |
3.90 |
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54,028,706 |
40.15 |
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66,874,772 |
49.70 |
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8,212,928 |
6.10 |
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14,791,049 |
10.99 |
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1,418,378 |
1.05 |
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1,999,305 |
1.49 |
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1,971,156 |
1.46 |
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25,144 |
0.02 |
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5 |
- |
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3,000 |
- |
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26,421,660 |
19.64 |
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Total Public shareholding (B) |
93,296,432 |
69.34 |
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Total (A)+(B) |
134,555,500 |
100.00 |
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(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
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- |
- |
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10,645,480 |
- |
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10,645,480 |
- |
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Total (A)+(B)+(C) |
145,200,980 |
- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs. 0.100 millionBUSINESS DETAILS
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Line of Business : |
The company is engaged in providing Software Services and Consultancy. |
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Products : |
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GENERAL INFORMATION
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No. of Employees : |
Information not divulged by management |
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Bankers : |
Not available |
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Facilities : |
-- |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Deloitte Haskins and Sells Chartered Accountants |
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Address : |
Mumbai, |
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Internal Auditors : |
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Name : |
KPMG |
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Address : |
Mumbai, |
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Subsidiaries : |
* Merged with Hexaware Mexico S.De.R.L.De.C.V w.e.f 01.01.2010 ** Company name struck off from registrar of company in *** Company name struck off from Registrar of company in # Held by nominees of Hexaware Technologies UK Limited |
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Others |
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CAPITAL STRUCTURE
As On 31.12.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
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|
175000000 |
Equity Shares |
Rs. 2/- each |
Rs. 350.000 Millions |
|
3000000 |
Preference shares |
Rs. 100/- each |
Rs. 300.000 Millions |
|
1100000 |
Series A’ Preference shares |
Rs. 1421/- each |
Rs. 1563.100 Millions |
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Total |
|
Rs. 2213.100
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
|
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|
145200980 |
Equity Shares |
Rs. 2/- each |
Rs. 290.400
Millions |
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Notes:
I) Of the above Equity Shares:-
1) 11,134,625 Equity Shares of Rs. 2/- each have been allotted as fully paid up without receiving consideration in cash in accordance with the Composite scheme of Reconstruction and Arrangement.
2) 36,188,870 Equity Shares of Rs. 2/- each have been allotted as fully paid up by way of Bonus Share by capitalisation of General Reserve/ Securities Premium Account.
3) 10,452,965 Equity Shares of Rs. 2/- each fully paid up have been allotted against Global Depository receipts issued by the Company.
4) 50,000,000 Equity Shares of Rs.2/- each fully paid up issued to the shareholders of erstwhile Hexaware Technologies Limited (‘HTL’) without receiving consideration in cash in accordance with the Composite scheme of Reconstruction and Arrangement.
5) 3,863,060 Equity Shares of Rs.2/- each fully paid up have been allotted to employees under ESOP 1999.
6) 8,711,340 (8,170,725) Equity Shares of Rs.2/- each fully paid up have been allotted to employees under ESOP 2002.
7) 10,555,700 Equity Shares of Rs.2/- each fully paid up have been allotted against unregistered American Depository Receipts (ADR) issued by the Company on conversion of Series “A” Redeemable and/or optionally convertible Preference Shares at a premium of Rs. 140.10 each as per the terms of issue.
8) 984,441 Equity Shares of Rs.2/- each fully paid up have been allotted to employees under ESOP 2007.
9) 25,189 Equity Shares of Rs.2/- each fully paid up have been allotted to employees under ESOP 2008.
Particulars of options on unissued share capital
II) Authorised Preference Share Capital can be either cumulative or non cumulative with a power to the Company to convert the same into equity shares at any time.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.12.2010 |
31.12.2009 |
31.12.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
290.400 |
287.300 |
287.300 |
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2] Share Warrants |
0.000 |
0.380 |
0.380 |
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3] Share Application Money |
1.090 |
1.880 |
0.140 |
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3] Reserves & Surplus |
8451.620 |
7341.670 |
5497.920 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
8743.110 |
7631.230 |
5785.740 |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
0.000 |
0.000 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
0.000 |
0.000 |
0.000 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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|
|
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TOTAL |
8743.110 |
7631.230 |
5785.740 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1454.240 |
1362.320 |
1274.270 |
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Capital work-in-progress |
968.430 |
1257.370 |
1430.620 |
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INVESTMENT |
2441.220 |
3280.090 |
2039.760 |
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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 |
1077.150
|
646.630 |
866.600 |
|
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Cash & Bank Balances |
3668.070
|
2146.540 |
2190.000 |
|
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Other Current Assets |
389.010
|
196.330 |
11.340 |
|
|
Loans & Advances |
904.100
|
753.150 |
668.580 |
|
Total
Current Assets |
6038.330
|
3742.650 |
3736.520 |
|
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Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
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Sundry Creditors |
152.260 |
141.520 |
407.840 |
|
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Other Current Liabilities |
1084.180
|
1431.190 |
1886.850 |
|
|
Provisions |
922.670
|
438.490 |
400.740 |
|
Total
Current Liabilities |
2159.110
|
2011.200 |
2695.430 |
|
|
Net Current Assets |
3879.220
|
1731.450 |
1041.090 |
|
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|
|
|
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
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TOTAL |
8743.110 |
7631.230 |
5785.740 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.12.2010 |
31.12.2009 |
31.12.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Software and consultancy |
4236.510 |
4862.740 |
4981.660 |
|
|
|
Other Income |
519.070 |
341.070 |
201.940 |
|
|
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TOTAL (A) |
4755.580 |
5203.810 |
5183.600 |
|
|
|
|
|
|
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Less |
EXPENSES |
|
|
|
|
|
|
|
Software and development expenses |
568.080 |
620.430 |
885.230 |
|
|
|
Employment expenses |
2460.870 |
1798.870 |
2388.220 |
|
|
|
Administration and other expenses |
626.410 |
694.840 |
925.290 |
|
|
|
Exchange rate difference |
258.610 |
606.930 |
357.780 |
|
|
|
Exceptional item |
(366.400) |
0.000 |
0.000 |
|
|
|
TOTAL (B) |
3547.570 |
3721.070 |
4556.520 |
|
|
|
|
|
|
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1208.010 |
1482.740 |
627.080 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
14.410 |
0.500 |
17.650 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1193.600 |
1482.240 |
609.430 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
176.200 |
186.150 |
197.610 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1017.400 |
1296.090 |
411.820 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
89.10 |
54.080 |
44.240 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
982.270 |
1242.010 |
367.580 |
|
|
|
|
|
|
|
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Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
2251.970 |
1445.600 |
1346.080 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Interim Dividend – Equity |
232.500 |
86.190 |
71.820 |
|
|
|
Proposed Dividend – Equity |
203.990 |
115.220 |
71.830 |
|
|
|
Dividend Tax |
72.060 |
34.230 |
24.410 |
|
|
|
Transfer to General Reserve |
200.000 |
200.000 |
100.000 |
|
|
BALANCE CARRIED
TO THE B/S |
2471.690 |
2251.970 |
1445.600 |
|
|
|
|
|
|
|
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EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Income from software solutions and consulting services |
4080.990 |
4740.850 |
4805.750 |
|
|
|
Interest income |
0.260 |
0.330 |
0.000 |
|
|
TOTAL EARNINGS |
|
|
|
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Capital Goods |
11.300 |
2.730 |
180.980 |
|
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TOTAL IMPORTS |
|
|
|
|
|
|
|
|
|
|
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|
Earnings Per Share
(Rs.) [Before Exceptional Items] |
|
|
|
|
|
|
- Basic |
3.88 |
8.65 |
2.56 |
|
|
|
- Diluted |
3.78 |
8.33 |
2.54 |
|
|
|
Earnings Per
Share (Rs.) [After Exceptional Items] |
|
|
|
|
|
|
- Basic |
6.42 |
8.65 |
2.56 |
|
|
|
- Diluted |
6.25 |
8.33 |
2.54 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
31.03.2011 |
|
Type |
|
|
1st
Quarter |
|
Net Sales |
|
|
1428.850 |
|
Total Expenditure |
|
|
1097.600 |
|
PBIDT (Excl OI) |
|
|
331.250 |
|
Other Income |
|
|
181.080 |
|
Operating Profit |
|
|
512.330 |
|
Interest |
|
|
0.620 |
|
PBDT |
|
|
511.710 |
|
Depreciation |
|
|
47.010 |
|
Profit Before Tax |
|
|
464.710 |
|
Tax |
|
|
6.090 |
|
Profit After Tax |
|
|
458.620 |
|
Net Profit |
|
|
458.620 |
KEY RATIOS
|
PARTICULARS |
|
31.12.2010 |
31.12.2009 |
31.12.2008 |
|
PAT / Total Income |
(%) |
20.66
|
23.87 |
7.09 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
24.02
|
26.65 |
8.27 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
13.58
|
25.39 |
8.22 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.12
|
0.17 |
0.07 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.25
|
0.26 |
0.47 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.80
|
1.86 |
1.39 |
LOCAL AGENCY FURTHER INFORMATION
The details of sundry creditors:
Rs. In Millions
|
Particulars |
31.12.2010 |
31.12.2009 |
31.12.2008 |
|
Sundry Creditors |
|
|
|
|
i) Total dues to
micro enterprises and small enterprises |
-- |
-- |
-- |
|
ii) Total dues to
creditors other than micro enterprises and small enterprises |
152.260 |
141.520 |
407.840 |
|
Total |
152.260 |
141.520 |
407.840 |
FINANCIAL PERFORMANCE:
The year 2010 started off on the weaker side with a slow Q1. From Q2
onwards, the Company grew at an industry-leading growth rate of 13.2%, 11.2% and
9.0% sequentially in Dollar terms (13.2%, 12.2% and 6.3% sequentially in Rupee
terms). With growth returning to the industry, direct costs were an issue
throughout the year, which have impacted Operating Margins (EBIT), the year
ended with Q4 EBIT at 9.3%.
RESULTS OF OPERATIONS
a) Global operations:
Income from operations increased to Rs. 10,545.640 million in 2010 from
Rs. 10,385.620 million in 2009. The growth in Dollar terms was 7.7%, reaching
$231.2 Million. Profit from operations (profit before Exceptional items,
Exchange Rate Difference, Interest, Other Income and Provision for Taxation) was at
Rs. 663.170 million in 2010 as against Rs. 1,705.100 million in 2009. This was
due to a number of factors, e.g. lower technical utilization, exchange rate impact
of Rupee appreciation and the transition costs of the large deal signed in Q2.
They were partly able to offset this impact by higher Other Income.
Profit after Tax stood at Rs. 1075.890 million in 2010 as compared to a profit
of Rs. 1,341.78 million in 2009, PAT margins at 10.2% in Rupee terms. Some of
the major achievements of the Company in the year 2010 were:
- During the
year 2010, 45 new clients were added. This took the total number of active
clients to 174.
- At the end of
2010, the Company has 50 clients billed USD 1 million dollar or more
during the year. Of these, 39 clients were in the range of $1-$5 million,
7 clients were in the range of $5-$10 million, 2 clients were in the range
of $10-$20 million and 2 clients billed more than $20 million each on a
trailing twelve month basis.
The year 2010 was marked with several firsts. Some of the key
developments include:
In Q2 2010, the Company secured its single largest contract till date,
worth in excess of $ 110 mn. As a part of the deal, the Company supports the IT
systems of a Fortune 500 US corporation. The order extends over a 5 year period
and the work encompasses 13 countries covering North America,
During the year, the Company signed a contract extension worth $ 60 mn.
with a multi-billion dollar enterprise. The extension was for a three year
period. The company has been offering services cutting across the following
horizontals – Enterprise Resource Planning (ERP), Business
Intelligence/Business Analytics (BI/BA), and Quality Assurance and Testing
Services (QATS) to this existing strategic customer.
The Company has achieved Platinum Partner status in the Oracle Partner
Network (OPN). This Platinum level partnership recognizes Hexaware as a System
Integrator for its in-depth expertise in showcasing capabilities across the
entire suite of Oracle Applications including Oracles People Soft Enterprise,
the Oracle E-Business Suite, Oracles Siebel CRM and solutions such as Oracle
Business Intelligence Enterprise Edition and Oracle’s Hyperion performance
management applications on a global scale.
The Company has recently launched Rainmaker, its private cloud service.
This platform while being flexible and providing an easy-to-manage, secure,
multi-tenant storage environment today also enables the Company to build a
scalable and efficient shared IT Infrastructure for future growth. Rainmaker®
can be used to deliver Infrastructure as a Service (IaaS), Platform as a
Service (PaaS) and Storage-as-a-Service (SaaS) coupled with high levels of
Security in Multi Tenancy mode. Further, the cloud also provides integrated
data protection and an outstanding user experience.
Caliber Point, the wholly-owned BPO subsidiary of the Company launched
“Republic”, a multi-tenant HR services delivery solution. Built on the Oracle
E-Business Suite Release 12, this ready-to-use platform will cater to multiple
clients under a secure and shared environment. The launch of “Republic” marked
the identity of Caliber
Point as one of the first BPO service providers in
As a testimony to the commitments made to the Innovation and IP-building
Centers of Excellence (COE) at Hexaware, the Innovation team achieved a
critical milestone with the ‘Probe’ tool on SAP platform. As a tool, ‘Probe’
can analyze any SAP environment and determine the potential impact of any
upgrade. During the last 12 months, the Company has successfully deployed the
tool for 3 different clients.
The revenue of the standalone legal entity dipped by 12.88 % to Rs.
4,236.510 million in 2010 from Rs. 4,862.740
million in the previous year. The net profit after tax was Rs. 928.270
million as compared to a profit of Rs. 1,242.010 million in 2009 a degrowth of
25.26%.
Overseas Global Delivery Centers
The Company has an established Global Delivery Centre (GDC) at
The company has a strong presence in
Global Cash Position
The cash generated from operations was Rs 122.000 Million. Company also
generated Rs. 883.000 Million on sale of surplus assets net of taxes. Receipts from
Treasury operations (interest and MF dividends) were Rs. 1140 Million. Company
has invested Rs. 340.000 Million in fixed assets. During the year, the Company
paid dividend of Rs. 233.000 Million and repaid a part of the loan taken by
Caliber Point (Nagpur), plus interest on the same, amounting to Rs 46..000
Million. As of 31st December, the cash position of the company was Rs. 4356.000
Million, equivalent in US$ 97.430 Million. Including the Mutual Fund
investments, the total cash and cash equivalents was at Rs. 4,753.000 Million
equivalent US$ 106.300 Million.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
Business Overview
It is all about Focus
Over the last twenty years, Hexaware has consistently built its global
footprint on the back of Focus. This choice has defined the characteristics of
the Company – what is there market place, what are the business needs they
cater to, what are there key service offerings, what type of customers do they
cater to, and where do they execute from. As a result, the Company is at the
forefront of IT Service Providers that offers well differentiated services in a
crisply defined market using global delivery model. The Company is well
equipped to offer business technology solutions that address the specific pain
points of clients. The Company strives to continuously build on the domain
capabilities from a vertical perspective; strengthen the technology capabilities
from a horizontal service line angle to provide comprehensive solutions
encompassing IT, BPO and consulting offerings. While the market has larger
players, the Company has attained leadership position in its chosen business
segments and has attained scale in these pockets of excellence. This approach
has enabled the Company to further invest ahead of the curve to grow further
and focus on flexible business models; offer value-added services and
institutionalize innovation.
Hexaware has attained leadership positions in the domain areas of
Capital Markets, Travel and Transportation, Enterprise Solutions (ERP), Quality
Assurance and Testing Services (QATS) and the Company is in the process of
building similar scale in the Business Intelligence/ Business Analytics
(BI/BA), Business Process Outsourcing (BPO) and in the Remote Infrastructure
Management Services (Remote IMS). To further enhance capabilities in these
business segments, the Company leverages strategic partnerships with global
majors in technology and business solutions to provides clients with customized
offerings.
To leverage the growth potential visible on the demand-side in the
market, the Company continues to make substantial investment in expanding its
human capital base, its training infrastructure and world-class physical
facilities and cutting edge technical infrastructure.
Market Developments
The growth returns
The year 2010 continued to improve through the year and the year-end
seemed to confirm the widely held belief – the Growth is back. Looking at the
bigger picture, the global economy began to grow out of trouble albeit
gradually while some pockets exhibiting more resilience than others. While
Through the year, the Company reported sequential revenue growth rates
of 13% in Q2 2010, 11% in Q3 2010 and 9% in Q4 2010 in Dollar terms. The
company also added 1,374 employees to the global headcount; thereby,
strengthening the execution unit to cater to the increasing demands from its
clients. The Company is committed to delivering to an increasing number of
clients in its roster and is taking all steps to be able to deliver more. Most
of the investments made by the Company in enhancing its field presence at
overseas locations appear to have commenced delivering the desired outcomes
when the demand scenario begins to pick up in the world.
Business Outlook
Qualitative
Looking back, the year 2010 saw the return of growth after troubled
times. The Company was well positioned to make the most of the opportunities
and perform well over the last 9-months of the year 2010. As the year 2011
begins, there is an increased amount of optimism on the sustenance of the
revenue growth. The current visibility in the market place seems to signal
stronger push towards offshoring due to extensive cost pressures on the
Business As Usual (BAU) operations. Further, there are early indications that
clients are focused on growth too – which would call for higher investments in
systems, technologies and processes further enhancing the prospects of
incremental business in the IT and BPO business streams.
From a strategy and approach stand point: the Company believes the
Organization Structure is in place and the leadership team is in a strong
position to deliver another year of healthy performance during 2011.The
Company’s key revenue streams will originate from its existing clients, 174
active clients in all, and higher IT budgets will act as a good growth
stimulus.
Quantitative
At the outset, the Company has indicated the annual revenues for the
year 2011 are expected to be at least $ 290 million; an annual revenue growth
rate of at least 25% year-on-year. Further, the Company has re-iterated
confidence in attaining double-digit Operating Margins (EBIT Margins) for the
year 2011. This compares to Operating Margin of 6.6% in 2010.
With the current business demand visibility of a healthy order book and
quantum of high quality deal pipeline, the
Company is confident of strengthening business metrics in terms of
client base, geography mix, revenue shares of verticals and horizontals and several
profitability related operational metrics.
Contingent
Liabilities in respect of:
a) Claims not acknowledged as debt to Rs. 28.140 million (previous year Rs. 49.950 million)
b) Income tax disputed in appeal and pending decision Rs. 7.400 million (previous year Rs. 2.740 million), company is hopeful of getting a favorable decision.
c) Guarantee given by the company to a bank on behalf of the company’s wholly-owned subsidiary Rs. 240.000 million (previous year Rs. 240.000 million)
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER ENDED 31.03.2011
Rs. In Millions
|
Particulars |
|
Quarter ended 31.03.2011 |
|
Income |
|
|
|
Income from Operations |
|
1428.854 |
|
Expenditure |
|
|
|
(a) Employees Expenses |
|
727.089 |
|
(b) Software and Development Expenses |
|
182.493 |
|
(c) Administration and other expenses |
|
188.020 |
|
(d) Depreciation |
|
47.005 |
|
Total Expenditure |
|
1144.607 |
|
Profit / (Loss) From Operations before other Income Interest & Exceptional Items |
|
284.247 |
|
Other Income |
|
93.052 |
|
Exchange rate difference (net) Gain/(Loss) |
|
89.029 |
|
Profit/(Loss) before Interest, Exceptional items and Tax |
|
465.328 |
|
Interest |
|
0.617 |
|
Profit / (Loss) before Tax and Exceptional items |
|
464.711 |
|
Exceptional Items |
|
-- |
|
Profit before Tax |
|
464.711 |
|
Tax Expenses |
|
6.093 |
|
Profit After Tax |
|
458.618 |
|
Paid Up Equity Share Capital ( Face Value of the share Rs.2/- each ) |
|
582.183 |
|
Reserves and Surplus |
|
|
|
Earning Per Share
(Rupees) |
|
|
|
-Basic |
|
1.58 |
|
-Diluted |
|
1.54 |
|
Public Share Holding |
|
|
|
- Number of Shares |
|
208493426 |
|
- Percentage of shareholding |
|
71.62% |
|
Promoters and Promoter group share holding |
|
|
|
a) Pledged / Encumbered |
|
|
|
- Number of Shares |
|
-- |
|
- Percentage of share (as a % of the total shareholding of promoter and promoter group) |
|
0.00% |
|
- Percentage of shares(as a % of the total share capital of the company) |
|
0.00% |
|
b) Non-encumbered |
|
|
|
- Number of Shares |
|
82596136 |
|
- Percentage of Share (as a % of the total shareholding of promoter and promoter group) |
|
100.00% |
|
- Percentage of Share (as a % of the total share capital of the company) |
|
28.38% |
Notes:
1)
The consolidated unaudited financial results and
stand alone financial results of the company, reviewed and recommend by the audit
committee were taken on record by the board of directors of the company at its
meeting held on 28.04.2011. The consolidated unaudited results for the period
ended 31.03.2011 and stand alone results have been subjected to a limited
review by the statutory auditors. The company has opted to publish only
consolidated financial results, along with information on stand alone results
as per the amtended guidelines issued by the securities and exchange board of
2)
I) the company in its board meeting held on
11.01.2011 decided
a)
To reclassify authorized share capital 3000000
preference shares of Rs. 100/- each to 150000000 equity shares of Rs. 2/- each
b)
To issue bonus shares in the ratio of 1 equity share
of Rs. 2/- each for each equity share of the company. Above resolutions were
approved in extra ordinary general meeting held on 15.02.2011. Accordingly the
company allotted 145545781 shares of face value of Rs. 2/- each, as fully paid
up bonus share on 02.03.2011, the utilization of securities premium account.
II) Earnings per share for all periods
presented has been adjusted for bonus issue.
3)
Information on segments has been disclosed on a
consolidated basis in accordance with accounting standard 17 (segment
reporting)
4)
Information on investor complaints pursuant to
clause 41 of the listing agreement for the quarter ended 31.12.2010.
|
Particulars |
Opening Balance |
Additions |
Disposals |
Closing Balance |
|
Complaints |
Nil |
5 |
5 |
Nil |
5) Figures for the previous period/year have been regrouped wherever
necessary to conform to the current period.
Fixed Assets:
- Land –
freehold
- Land –
leasehold
- Building
- Plant and
machinery (includes computer systems)
- Furniture and
fixtures
- Vehicles
- Improvement
to leased premises
- Software
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.44.34 |
|
|
1 |
Rs.73.69 |
|
Euro |
1 |
Rs.65.75 |
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 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
61 |
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.