MIRA
INFORM REPORT
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Report Date : |
11.05.2011 |
IDENTIFICATION DETAILS
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Name : |
LARSEN AND TOUBRO INFOTECH LIMITED |
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Registered
Office : |
L and T House, Ballard Estate, Mumbai-400001, |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
23.12.1996 |
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Com. Reg. No.: |
11-104693 |
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Capital
Investment/ Paid-up Capital: |
Rs. 161.250
Millions |
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CIN No.: [Company Identification
No.] |
U72900MH1996PLC104693 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUML04432B |
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PAN No.: [Permanent Account No.] |
AAACL1681P |
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Legal Form : |
A Closely Held Public Limited Liability Company. |
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Line of Business
: |
Subject act as a Global IT Services and Solutions Provider. |
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No. of
Employees: |
Not Divulged by the management |
RATING & COMMENTS
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MIRA’s Rating : |
A (66) |
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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 39000000 |
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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 highly respectable company having
fine track. Financial position of the company is good. Fundamentals are
strong and healthy. Trade relations are reported as fair. Payments are
reported to be regular and as per commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
INFORMATION DECLINED BY
MANAGEMENT NON CO-OPERATIVE
LOCATIONS
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Registered Office : |
L and T House, Ballard Estate, Mumbai-400001, |
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Tel. No.: |
91-22-67525656 |
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Fax No.: |
91-22-67525858/ 67525893 |
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E-Mail : |
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Technologies Centers : |
Located at: ·
Powai, Mumbai ·
·
Airoli, Navi, Mumbai ·
Pune ·
Bengaluru ·
Chennai ·
·
Hinjewadi, Pune |
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Technologies Centre : |
Locate at: ·
Vadodara ·
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Overseas Offices : |
Located at:
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DIRECTORS
As on 26.08.2010
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Name : |
Mr. Anilkumar Manibhai Naik |
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Designation : |
Director |
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Address : |
High Trees, 54 Pali Hill, Banbra (West), Mumbai-400050, |
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Date of Birth/Age : |
09.06.1942 |
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Date of Appointment : |
23.12.1996 |
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DIN No.: |
00001514 |
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Name : |
Mr. Yeshwant Moreshar Deosthalee |
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Designation : |
Director |
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Address : |
1001, Prabhu Kutir, 15, |
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Date of Birth/Age : |
06.09.1946 |
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Date of Appointment : |
23.12.1996 |
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DIN No.: |
00001698 |
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Name : |
Mr. Ram Nath Mukhija |
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Designation : |
Director |
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Address : |
501, Varsha, |
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Date of Birth/Age : |
05.02.1944 |
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Date of Appointment : |
13.08.2004 |
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DIN No.: |
00001653 |
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Name : |
Mr. Vijay Kumar Magapu |
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Designation : |
Director |
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Address : |
402, |
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Date of Birth/Age : |
12.06.1945 |
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Date of Appointment : |
13.08.2004 |
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DIN No.: |
00001658 |
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Name : |
Mr. Samir Thakorbhai Desai |
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Designation : |
Director |
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Address : |
7050, NW 126, Terrace, |
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Date of Birth/Age : |
26.08.1946 |
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Date of Appointment : |
27.01.2007 |
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DIN No.: |
01182256 |
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Name : |
Mr. Rama S Iyer |
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Designation : |
Director |
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Address : |
Flat No. 32, Rashmi Swarna Kutir, Premises Co Operative Housing
Society, Demonte |
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Date of Birth/Age : |
19.08.1939 |
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Date of Appointment : |
25.10.2007 |
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DIN No.: |
00076549 |
KEY EXECUTIVES
|
Name : |
Mr. Shekhar Sharad Prabhudesai |
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Designation : |
Secretary |
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Address : |
8, Asmaniu, |
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Date of Birth/Age : |
13.03.1970 |
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Date of Appointment : |
19.03.2001 |
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PAN No.: |
ABPPP1998J |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 26.08.2010
|
Names of Shareholders |
|
No. of Shares |
|
Larsen and Toubro Limited, Mumbai, |
|
32249988 |
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Anilkumar Manibhai Naik and Larsen and Toubro Limited |
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2 |
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Yeshwant Moreshwar Deosthalee and Larsen and Toubro Limited |
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2 |
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Jagdish Pandurang Nayak and Larsen and Toubro Limited |
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2 |
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Ram Nath Mukhija and Larsen and Toubro Limited |
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2 |
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Venkataramanan Krishnanurthi and Larsen and Toubro Limited |
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2 |
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Magapur Apparao Vijaykumar and Larsen and Toubro Limited |
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2 |
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Total |
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32250000 |
Equity Share Breakup (Percentage of Total Equity)
As on 30.09.2010
|
Category |
Percentage |
|
Bodies corporate |
100.00 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Subject act as a Global IT Services and Solutions Provider. |
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Products : |
Software Development |
GENERAL INFORMATION
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No. of Employees : |
Not Divulged by the management |
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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 : |
Sharp and Tannan Chartered Accountant |
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Address : |
Ravindra Annexe, 194, Churchgage Reclamation, |
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PAN No.: |
AAAFS2967E |
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Holding Company: |
Larsen and Toubro Limited, Mumbai, L99999MH1946PLC004768 |
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Wholly Subsidiaries: |
U72200TZ1997PLC008145
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Fellow Subsidiaries : |
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CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
|
|
|
|
32750000 |
Equity Shares |
Rs. 5/- each |
Rs. 163.750 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
32250000 |
Equity Shares |
Rs. 5/- each |
Rs. 161.250
Millions |
Note:
(All the above Equity shares are held by
Larsen and Toubro Limited, the holding company.)
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 |
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|
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1] Share Capital |
161.250 |
158.438 |
157.200 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
9429.565 |
5537.783 |
5232.067 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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5] Employee Stock options outstanding |
278.678 |
245.367 |
217.203 |
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Less: Deferred employee compensation expenses |
35.382 |
44.942 |
78.388 |
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NETWORTH |
9834.111 |
5896.646 |
5528.082 |
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LOAN FUNDS |
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1] Secured Loans |
445.778 |
1221.800 |
993.534 |
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2] Unsecured Loans |
0.000 |
0.654 |
1.987 |
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TOTAL BORROWING |
445.778 |
1222.455 |
995.521 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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Deferred purchase considerable payable |
0.000 |
342.360 |
423.343 |
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TOTAL |
10279.889 |
7461.460 |
6946.946 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1260.649 |
1363.771 |
1362.444 |
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Capital work-in-progress |
178.308 |
25.903 |
13.522 |
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Intangible Assets |
357.824 |
283.982 |
189.694 |
|
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Capital work in progress |
52.786 |
41.325 |
13.200 |
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INVESTMENT |
2811.224 |
2229.275 |
1918.433 |
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DEFERREX TAX ASSETS |
11.160 |
7.404 |
16.981 |
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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 |
3607.286
|
4161.961 |
3489.292 |
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Cash & Bank Balances |
1539.713
|
1115.417 |
538.052 |
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Other Current Assets |
841.142
|
624.513 |
500.215 |
|
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Loans & Advances |
3900.344
|
3181.887 |
1735.942 |
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Total
Current Assets |
9888.485
|
9083.778 |
6263.501 |
|
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Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
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Sundry Creditors |
2956.822
|
4396.985 |
1386.044 |
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Other Current Liabilities |
167.786
|
294.156 |
489.129 |
|
|
Provisions |
1155.939
|
882.837 |
955.656 |
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Total
Current Liabilities |
4280.547
|
5573.978 |
2830.829 |
|
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Net Current Assets |
5607.938
|
3509.800 |
3432.672 |
|
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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|
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TOTAL |
10279.889 |
7461.460 |
6946.946 |
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PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
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SALES |
|
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|
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Revenue (Software development services and Products IT Services) |
17767.648 |
17740.645 |
16494.637 |
|
|
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Engineering Services |
0.000 |
1767.736 |
0.000 |
|
|
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Other Income |
349.721 |
245.245 |
81.325 |
|
|
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TOTAL (A) |
18117.369 |
19753.626 |
16575.962 |
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Less |
EXPENSES |
|
|
|
|
|
|
|
Software Development Expenses |
10971.358 |
12108.352 |
9926.876 |
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Sales, Administration and other expenses |
3488.589 |
4214.614 |
3821.838 |
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TOTAL (B) |
14459.947 |
16322.966 |
13748.714 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
3657.422 |
3430.660 |
2827.248 |
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|
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Less |
FINANCIAL
EXPENSES (D) |
27.512 |
82.806 |
25.720 |
|
|
|
|
|
|
|
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|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
3629.910 |
3347.854 |
2801.528 |
|
|
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|
|
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
482.374 |
453.590 |
372.519 |
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|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
3147.536 |
2894.264 |
2429.009 |
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|
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|
|
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Less |
TAX (H) |
336.163 |
246.046 |
317.724 |
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|
|
|
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|
PROFIT AFTER TAX
(G-H) (I) |
2811.373 |
2648.218 |
2111.285 |
|
|
|
|
|
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Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
5170.101 |
2995.992 |
1287.750 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
300.000 |
289.225 |
220.000 |
|
|
|
Interim Dividend |
801.147 |
158.027 |
0.000 |
|
|
|
Proposed Dividend |
0.000 |
0.000 |
156.454 |
|
|
|
Tax on Dividend |
136.155 |
26.857 |
26.589 |
|
|
BALANCE CARRIED
TO THE B/S |
6744.172 |
5170.101 |
2995.992 |
|
|
|
|
|
|
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IMPORTS |
|
|
|
|
|
|
|
Capital Goods |
136.283 |
95.129 |
383.250 |
|
|
|
Others |
21.311 |
39.829 |
22.457 |
|
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TOTAL IMPORTS |
157.594 |
134.958 |
405.707 |
|
|
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|
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Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
87.73 |
83.79 |
67.48 |
|
|
|
Diluted |
86.79 |
82.82 |
66.80 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
15.52
|
13.41 |
12.74 |
|
|
|
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|
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|
Net Profit Margin (PBT/Sales) |
(%) |
17.71
|
16.31 |
14.71 |
|
|
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|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
27.35
|
26.97 |
33.80 |
|
|
|
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|
Return on Investment (ROI) (PBT/Networth) |
|
0.32
|
0.49 |
0.44 |
|
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|
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|
Debt Equity Ratio (Total Liability/Networth) |
|
0.48
|
1.15 |
0.69 |
|
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|
Current Ratio (Current Asset/Current Liability) |
|
2.31
|
1.63 |
2.21 |
LOCAL AGENCY FURTHER INFORMATION
DETAILS OF SUNDRY
CREDITORS
(Rs.
in Millions)
|
Particulars |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
Sundry Creditors |
2956.822 |
4396.985 |
1386.044 |
BUSINESS
The Company has achieved revenues of Rs.17767.600 Millions from IT
services during the year 2009-10 (previous year Rs.17740.600 Millions). Engineering
services business is now being billed directly by the parent company for which
the Company had a marketing agreement till last year.
Domestic Revenue has gone up during the year to Rs. 939.500 Millions as
compared to Rs. 807.300 Millions in 2008-09.
Operating profit (PBIDT) is higher at Rs. 3657.400 Millions (20.2% of
revenues) as against Rs. 3430.700 Millions (19.1% of revenues adjusted for
engineering services) in 2008-09 (increase of 6.6% over previous year). Profit
after tax is Rs. 2811.400 Millions as against Rs. 2648.200 Millions in 2008-09
(increase of 6.2% over previous year). Earnings per share are at Rs. 87.73 per
equity share of Rs.5/- each.
In the first full year after the global meltdown, the year 2009-10 was
challenging in terms of maintaining a healthy growth rate. Besides the freeze
exercised by global clients on discretionary spending, the Company also
experienced a substantial shift in the composition of revenue in favour of
offshore. The share of offshore Revenues as percentage of total revenues has
gone up from 45% in the previous year to 49% in the year 2009-10. The total
person months billed has gone up by 8%, but as a result of the shift in the
onsite: offshore ratio, the growth in revenues has been marginal. The strategy of
the Company to focus on Middle East and
The total export client base at the end of year stood at 170 of which
about 16% are in the Global Fortune 500 list. While the number of clients
contributing more than USD 5 million remained at 21, the contribution of the
top 5 clients reduced from 46% in the previous year to 39% during the year.
During the year, the Company’s service areas have been amplified by
newer offerings like Business Analytics and System Integration. The objective
behind these initiatives is to establish L and T Infotech as a complete IT
services and solutions provider.
INCREASE IN SHARE
CAPITAL
In July 2009, the Company made the third call of Rs. 98.15 per share on
the 2,250,000 partly paid-up shares issued to its holding company, Larsen and
Toubro Limited, aggregating to Rs. 220.837 Millions. Out of this third call, an
amount of Rs. 2.025 Millions (Re. 0.90 per share) and Rs. 218.812 Millions (Rs.
97.25 per share) was allocated to share capital and share premium respectively.
With the Company making the fourth and final call in September 2009 of Rs.
34.35 per share aggregating to Rs. 77.287 Millions, all the 2,250,000 shares
have been fully paid-up. Out of the fourth and final call of Rs 77.287
Millions, an amount of Rs. 0.787 Million (Re. 0.35 per share) and Rs. 76.500
Million (Rs. 34 per share) was allocated to share capital and share premium
respectively.
Bankers Charges
Report as per Registry
|
Corporate identity
number of the company |
U72900MH1996PLC104693 |
|
Name of the
company |
LARSEN AND TOUBRO INFOTECH LIMITED |
|
Address of the
registered office or of the principal place of business in |
L and T House, Ballard Estate, Mumbai-400001, |
|
This form is for |
Modification of
Charge |
|
Charge
identification number of the charge to be modified |
10244870 |
|
Type of charge |
Book Debts |
|
Particular of
charge holder |
Bank of |
|
Nature of
instrument creating charge |
Supplemental
Agreement of Hypothecation of Book Debts/ Receivables dated December 13, 2010
entered between Laresen and Toubro Infotech Limited and Bank of Baroda |
|
Date of
instrument Creating the charge |
13.12.2010 |
|
Amount secured by
the charge |
Rs. 250.000
Millions |
|
Brief of the principal
terms an conditions and extent and operation of the charge |
Rate of Interest 200 bps over
LIBOR per annum Terms of
Repayment As per the terms
mentioned in Supplemental Agreement of Hypothecation. Margin 10% Extent and Operation
of the charge Exclusive First
Pari passu charge created on the book debts of the company to the extent of
Rs. 250.000 Millions with other banks as mentioned in the original charge
dated 23.09.2010, so as to cover now the banks aggregate exposure on account
of packing credit facilities and bank guarantee limits. |
|
Short particulars
of the property charged |
Book Debts/
Receivables in respect of supplies made to various government departments or
limited companies etc. as evidenced by supply bills/ receipted challans in to
the extent of Rs. 250.000 Millions |
|
Date of
instrument modifying the charge |
23.09.2010 |
|
Particulars of
the present modification |
The charge
earlier created on September 23, 2010 for Rs. 250.000 Millions on the said Debts
under the Principal Agreement dated September 23, 2010, shall extent and
henceforth shall also be a continuing security to secure the Packing Credit
limit earmarking existing bank guarantee limit of Rs. 250.000 Million only. |
Fixed Assets:
- Building
- Plant and Machinery
- Computers
- Furniture and Fixtures
- Vehicles
- Dep General
- 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.44.73 |
|
|
1 |
Rs.73.21 |
|
Euro |
1 |
Rs.63.90 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
66 |
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.