MIRA
INFORM REPORT
|
Report Date : |
25.05.2011 |
IDENTIFICATION DETAILS
|
Name : |
PEGASYSTEMS WORLDWIDE INDIA PRIVATE LIMITED |
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Registered
Office : |
DLFR, Cyber City, Block No.2, 3rd Floor, Gachibowli,
Hyderabad – 500032, Andhra Pradesh |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
03.08.2007 |
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Com. Reg. No.: |
01-055018 |
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Capital Investment
/ Paid-up Capital : |
Rs.105.090 Millions |
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CIN No.: [Company Identification
No.] |
U72200AP2007FTC055018 |
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Legal Form : |
Private Limited Liability Company |
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Line of Business
: |
Providing software development services. |
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No. of Employees
: |
300 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
B (32) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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Maximum Credit Limit : |
USD 730000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a subsidiary of Pegasystems Mauritius, Mauritius. It is an established company having moderate track. The company is
progressing well. Trades relations are reported as fair. Business is active.
Payments are reported to be slow but correct. The company can be considered for small to mediocre business dealings
at usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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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 PARTED BY
|
Name : |
Miss. Kavita Soni |
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Designation : |
Accounts Manager |
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Date : |
24.05.2011 |
LOCATIONS
|
Registered Office : |
DLFR, Cyber City, Block No.2, 3rd Floor, Gachibowli,
Hyderabad – 500032, Andhra Pradesh, India |
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Tel. No.: |
91-40-30555600 |
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Fax No.: |
91-40-30226060 |
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E-Mail : |
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DIRECTORS
AS ON 30.09.2010
|
Name : |
Mr. Alan Trefler |
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Designation : |
Director |
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Address : |
228, Allandale Road, #3C, Chestnut Hill, 02467, USA |
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Date of Birth/Age : |
10.03.1956 |
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Date of Appointment : |
03.08.2007 |
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Din No. : |
01408006 |
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Name : |
Mr. Chaig Allen Dynes |
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Designation : |
Director |
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Address : |
42, Smithshire Estate Andover, 01810, USA |
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Date of Birth/Age : |
11.03.1955 |
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Date of Appointment : |
03.08.2007 |
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Din No.: |
01407988 |
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Name : |
Mr. Shawn Steven Hyot |
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Designation : |
Director |
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Address : |
23 Calvin Road Newton, 02460, USA |
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Date of Birth/Age : |
14.03.1969 |
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Date of Appointment : |
03.08.2007 |
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Din No.: |
01407977 |
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Name : |
Mrs. Suman Reddy Eadunuri |
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Designation : |
Managing Director |
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Address : |
456, Tirumala Hills, Malakpet, Hyderabad-500036, Andhra Pradesh, India
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Date of Birth/Age : |
17.08.1975 |
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Date of Appointment : |
08.10.2007 |
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Din No.: |
02005493 |
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Name : |
Mr. Anand Prasad |
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Designation : |
Alternate Director |
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Address : |
S 565, G-7, 2nd Floor, Greater Kailash II, New Delhi –
110048, Delhi, India |
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Date of Birth/Age : |
01.02.1968 |
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Date of Appointment : |
08.10.2007 |
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Din No.: |
00138146 |
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Name : |
Mr. Atul BHAtia |
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Designation : |
Alternate Director |
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Address : |
G 206, Preet Vihar, New Delhi – 110092, Delhi, India |
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Date of Birth/Age : |
27.10.1976 |
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Date of Ceasing : |
30.05.2010 |
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Date of Appointment : |
21.11.2008 |
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Din No.: |
00561713 |
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Name : |
Mrs. Kavita Soni |
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Designation : |
Company Secretary |
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Address : |
Flat No. 4089, Smiriti Block Medha Rejoice, Attapur, Hyderabad –
500048, Andhra Pradesh, India |
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Date of Birth/Age : |
22.02.1977 |
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Date of Appointment : |
19.07.2010 |
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Din No.: |
AVEPS1853J |
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MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2010
|
Names of Shareholders |
|
No. of Shares |
|
Pegasystems Mauritius, Mauritius |
|
10403944 |
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Pegasystems Worldwide Incorporation, USA |
|
105090 |
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Total |
|
10509034 |
AS ON 30.09.2010
|
Category |
Percentage |
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Foreign holdings( Foreign institutional investor(s),
Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s)
or Overseas Corporate bodies or Others |
100.00 |
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Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Providing software development services. |
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GENERAL INFORMATION
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No. of Employees : |
300 (Approximately) |
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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 : |
S.R. Batliboi and Associates Chartered Accountant |
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Address : |
Over Office, 18, Ilabs Centre, Hitech City, Madhapur, Hyderabad –
500081, Andhra Pradesh, India |
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Tel. No.: |
91-40-67362000 |
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Fax No.: |
91-40-67362200 |
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Group Company : |
·
Pegasystems Inc. ·
Pegasystems Worldwide Inc |
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Holding Company : |
·
Pegasystems Mauritius |
CAPITAL STRUCTURE
AS ON 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
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|
15000000 |
Equity Shares |
Rs.10/- each |
Rs.150.000 Millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
10509034 |
Equity Shares |
Rs.10/- each |
Rs.105.090
Millions |
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|
|
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Note :
Of the above equity shares
10403944 shares are held by Pegasystems
Mauritius, Holding Company
Holding Company
105090 shares are held by Pegasystems
Worldwide Inc
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
105.090 |
50.398 |
0.990 |
|
|
2] Share Application Money |
0.000 |
31.391 |
26.915 |
|
|
3] Reserves & Surplus |
77.866 |
16.821 |
0.000 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
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NETWORTH |
182.956 |
98.610 |
27.905 |
|
|
LOAN FUNDS |
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|
|
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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 |
182.956 |
98.610 |
27.905 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
102.913 |
63.483 |
0.143 |
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Capital work-in-progress |
0.000 |
1.361 |
2.873 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
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Inventories |
0.000
|
0.000 |
0.000 |
|
|
Sundry Debtors |
210.753
|
62.065 |
0.000 |
|
|
Cash & Bank Balances |
21.180
|
49.363 |
5.629 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
22.176
|
13.115 |
7.065 |
|
Total
Current Assets |
254.109
|
124.543 |
12.694 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Other Current Liabilities |
173.243
|
85.685 |
46.223 |
|
|
Provisions |
0.823
|
5.092 |
0.644 |
|
Total
Current Liabilities |
174.066
|
90.777 |
46.867 |
|
|
Net Current Assets |
80.043
|
33.766 |
(34.173) |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
59.062 |
|
|
|
|
|
|
|
|
TOTAL |
182.956 |
98.610 |
27.905 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
|
|
|
|
|
|
|
|
|
|
GROSS REVENUE |
|
292.090 |
256.780 |
|
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
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|
Office Expenses |
|
|
|
|
|
|
Administrative Expenses |
|
228.520 |
232.000 |
|
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Advertising Expenses |
|
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|
|
|
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TOTAL (B) |
|
228.520 |
232.000 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
|
63.570 |
24.780 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
|
63.570 |
24.780 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
|
27.320 |
6.870 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
|
36.250 |
17.910 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
|
(1.600) |
1.090 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
|
37.850 |
16.820 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Income From Services |
|
292.096 |
256.775 |
|
|
TOTAL EARNINGS |
|
292.096 |
256.775 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
CIF Value of Import |
|
12.863 |
29.802 |
|
|
TOTAL IMPORTS |
|
12.863 |
29.802 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
3.60 |
1.60 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
12.95
|
6.55 |
-- |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
10.15
|
9.52 |
-- |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.19
|
0.18 |
-- |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.95
|
0.92 |
1.67 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.45
|
1.37 |
0.27 |
LOCAL AGENCY FURTHER INFORMATION
NOTE :
The registered office address of the company
has been shifted from 2nd Floor, SVSKL Mansions, 3-6-369/A/18,Street
No.1, Himayat Nagar, Hyderabad – 500029, Andhra Pradesh, India to present
w.e.f. 20.11.2009.
BACKGROUND
Subject (The
Company) was incorporated on August 3, 2007 with its registered office
in Hyderabad, India. Pegasystems Worldwide India Private Limited is a software
development services Company. The Company is a subsidiary of Pegasystems
Mauritius, which is in-turn a subsidiary of Pegasystems Inc., a company
incorporated in the state of Massachusetts, United States of America and an SEC
registrant. The Company has commenced its operations as on November 3,2008. The
Company is engaged in assisting the software development needs of the Pegasystems
group. The Company develops the patented software products of its parent
company in the field of Business Process Management as per the requirements of
the parent company.
REVIEW OF
ACTIVITIES:
About Pegasystems
The Company is a
subsidiary of Pegasystems Mauritius (99%) and Pegasystems Worldwide Inc. (1%)
which in turn are wholly owned subsidiaries of Pegasystems Inc. (NASDAQ: PEGA)
(hereafter referred to as "Pegasystems"
and together with its subsidiaries "the Pegasystems Group"
or "the Group"). Pegasystems
is headquartered in Cambridge, MA, and has regional offices in North America,
Europe, and Asia. Since 1983, Pegasystems has been a pioneer in rules-based
Business Process Management (BPM) technology and is currently a leader in the
industry.
The Company was
incorporated on August 3, 2007
as a private limited company registered under the Companies Act, 1956 having
its registered office at Hyderabad, India. The Company acts as a contract
service provider to assist in meeting the software development needs of the
Pegasystems Group.
Services offered
by Pegasystems
Pegasystems' suite
is complemented by best-practice frameworks designed for leaders in financial
services, insurance, healthcare, government, life sciences, communications,
manufacturing, and other industries. Blue-chip companies in financial services,
healthcare, and insurance turn to Pegasystems to streamline business processes,
to quickly and easily adapt to changing market conditions, and to realize
significant Return of Investment.
Business rules are
the practices, processes, and procedures that define how a company does
business. They are an important asset that differentiates enterprises in the
marketplace.
Pegasystems Group
is a leader in BPM, providing software to drive revenue growth, productivity
and agility for the world's most sophisticated organizations. Pegasystems'
patented Smart BPM technology makes enterprise applications easy to build and
change by directly capturing business objectives and eliminating manual
programming.
Smart BPM unifies
business rules and processes into composite applications that leverage existing
systems - empowering business people and Information Technology (IT) staff to
build for change, delivers value quickly, and outperform their competitors. Customers
use our award-winning Smart BPM suite to improve customer service, reach new
markets, and boost operational effectiveness.
Pegasystems'
patented rules technology allows companies to aggregate their diverse business
practices and lets business managers rapidly implement change across the
enterprise and over the Web.
Services offered
by Pegasystems Worldwide India Private Limited
The Company acts
as a contract service provider primarily to assist in meeting the software
development services to the Group through its unit set up in Special Economic
Zone (SEZ). The Company is also proposing to provide the following services to
Pegasystems' customers,
which would be
billed to Pegasystems: Training for using BPM software in India Installation of
BPM software at customer's site both in India and outside India Post sales
support services in relation to BPM software from India.
OPERATIONS:
The Company
planned for major expansion in the year 2009-10 of its operations and add
additional headcount as part of its expansion. During the year company added
approx. 56 additional heads as part of this plan. As they planned to expand and
add additional headcount, they also identified the need for additional
premises. After exploring various options, the management identified additional
premises available with existing builder DLF. The additional space is 32,694
sft. available on the same floor where it has its current premises. The cost of
new space which is a plug and play facility, company incurred one time fit out
cost of INR 4,72,98,996 which was paid to the builder to take the premises on
lease.
Company entered
into lease agreement with DLF on 30th September 2009. Management analyzed the
need of bringing new premise on par with its existing premise. After detailed
discussion it decided to revamp the new premise and provide the same kind of
interior, infrastructure and facilities as its existing premise. The project
has already started and it's underway and expected to be completed by November
2010.
FIXED ASSETS :
·
Leasehold Improvement
·
Furniture and Fixtures
·
Office Equipments
·
Networking Equipments
·
Data Processing
Equipments
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. 45.25 |
|
|
1 |
Rs. 72.82 |
|
Euro |
1 |
Rs. 63.58 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
32 |
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.