MIRA
INFORM REPORT
|
Report Date : |
10.10.2011 |
IDENTIFICATION DETAILS
|
Name : |
SMARTLINK NETWORK SYSTEMS LIMITED (w.e.f. 30.07.2009) |
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Formerly Known
As : |
D-LINK ( |
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Registered
Office : |
L-5 and L-7, Verna Industrial Estate, Verna, Salcete, |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
31.03.1993 |
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Com. Reg. No.: |
24-1341 |
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Capital Investment
/ Paid-up Capital : |
Rs.60.010 millions |
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|
CIN No.: [Company Identification
No.] |
L30007GA1993PLC001341 |
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|
Legal Form : |
Public Limited
Liability Company. The company’s shares are listed on the Stock Exchanges. |
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Line of Business
: |
The Company has its operations in developing, manufacturing,
marketing, distributing and servicing networking products. |
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No. of Employees
: |
700 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (58) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 6800000 |
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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 company having fine track. Financial position
of the company appears to be sound. Trade relations are reported as fair.
Business is active. Payments are reported to be regular and as per
commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
INFORMATION PARTED BY
|
Name : |
Mr. Vishnudas |
|
Designation : |
Deputy General Manager in Accounts |
|
Contact No.: |
91-832-2885464 |
|
Date : |
07.10.2011 |
LOCATIONS
|
Registered Office : |
L-5 and L-7, Verna Industrial Estate, Verna, Salcete, |
|
Tel. No.: |
91-832-2885400 / 2885450/451 |
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Fax No.: |
91-832-2783395 |
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E-Mail : |
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Location : |
Owned |
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Head Office : |
Plot No. 5, |
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Tel. No.: |
91-22-30616666 |
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Fax No.: |
91-22-26528914 |
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E-Mail : |
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Corporate Office: |
Located At: ·
Bandra ·
Santacruz |
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Overseas Offices: |
Located At: ·
·
·
·
·
·
·
·
·
Bromma ·
·
·
·
·
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# 65, 35th Main, 100 ft. Ring Road, 2nd Stage,
BTM Layout, Bangalore-560 076, Karnataka, India |
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# 10-A, KIADB Industrial Area, Electronic City, Phase-22, Konappan,
Bangalore-560 100, |
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. Kamalaksha Rama Naik |
|
Designation : |
Executive Chairman |
|
Address : |
House No.A-1/A, Row House Lotus, Hermitage, Benaulin, South Goa-403
716, |
|
Date of Birth/Age : |
19.11.1947 |
|
Date of Appointment : |
31.03.1993 |
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Name : |
Mr. Krishnanand Maruti Gaonkar |
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Designation : |
Non-Executive Independent Director |
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Address : |
504, 505, |
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Date of Birth/Age : |
10.09.1952 |
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Date of Appointment : |
24.05.2000 |
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|
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|
Name : |
Mr. Dattaraj V. Salgaocar |
|
Designation : |
Non-Executive Independent Director |
|
Address : |
Hira Vihar House No.278, Chicalim, Marmugao-403 711, |
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Date of Birth/Age : |
23.05.1957 |
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Date of Appointment : |
17.05.2001 |
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|
Name : |
Mr. Pankaj Madhav Baliga |
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Designation : |
Non-Executive Independent Director |
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Address : |
91, |
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Date of Birth/Age : |
18.10.1946 |
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Date of Appointment : |
22.12.2005 |
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|
|
Name : |
Mr. Rishikesha T. Krishnan |
|
Designation : |
Non-Executive Independent Director |
|
Address : |
Faculty Quarters, 117, IIMB Campus, Bannergatta Road, Bangalore-560
076, |
|
Date of Birth/Age : |
06.02.1964 |
|
Date of Appointment : |
22.12.2005 |
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|
Name : |
Mr. Pradeep Anant Rane |
|
Designation : |
Non-Executive Independent Director |
|
Address : |
1502, Amberosia, Behind |
|
Date of Birth/Age : |
07.01.1953 |
|
Date of Appointment : |
26.12.2006 |
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|
Name : |
Mr. Jangoo Minoo Dalal |
|
Designation : |
Non- Executive Director |
|
Address : |
Flat No.8- IM 020 Lane, 113 Min Sen road, |
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Date of Birth/Age : |
02.11.1965 |
|
Date of Appointment : |
02.07.2007 |
KEY EXECUTIVES
|
Name : |
Mr. K. Guruprasad Prabhu |
|
Designation : |
Company Secretary |
|
Address : |
Ravalnath Kripa, 26A, Behind Durga Petrol Pump, Fatorda, Margao, South
Goa-403 602, |
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Date of Birth/Age : |
11.06.1971 |
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Date of Appointment : |
14.02.2001 |
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Name : |
Mr. Bhushan Prabhu |
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Designation : |
Chief Financial Officer |
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|
Name : |
Mr. Vishnudas |
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Designation : |
Deputy General Manager in Accounts |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2011
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
20,202,020 |
67.33 |
|
|
20,202,020 |
67.33 |
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|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
20,202,020 |
67.33 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
2,530 |
0.01 |
|
|
54,943 |
0.18 |
|
|
57,473 |
0.19 |
|
|
|
|
|
|
1,410,742 |
4.70 |
|
|
|
|
|
|
5,618,190 |
18.72 |
|
|
1,959,951 |
6.53 |
|
|
756,474 |
2.52 |
|
|
59,766 |
0.20 |
|
|
339,375 |
1.13 |
|
|
357,333 |
1.19 |
|
|
9,745,357 |
32.48 |
|
Total Public shareholding (B) |
9,802,830 |
32.67 |
|
Total (A)+(B) |
30,004,850 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
30,004,850 |
- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 millionShareholding
belonging to the category "Promoter and Promoter Group"
|
Sl. No. |
Name of the
Shareholder |
|
|
|
Number |
% |
||
|
1 |
Kamalaksha Rama Naik |
14,458,175 |
48.19 |
|
2 |
Arati Kamalaksha Naik |
2,100,340 |
7.00 |
|
3 |
Lakshana Amit Sharma |
1,800,291 |
6.00 |
|
4 |
Sudha Kamalaksha Naik |
1,500,243 |
5.00 |
|
5 |
Kamalaksha Rama Naik |
342,971 |
1.14 |
|
|
Total |
20,202,020 |
67.33 |
Shareholding
belonging to the category "Public" and holding more than 1% of the
Total No. of Shares
|
Sl. No. |
Name of the
Shareholder |
No. of Shares |
Shares as % of
Total No. of Shares |
|
1 |
D-Link ( |
339,375 |
1.13 |
|
|
Total |
339,375 |
1.13 |
BUSINESS DETAILS
|
Line of Business : |
The Company has its operations in developing, manufacturing, marketing, distributing and servicing networking products. |
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Products : |
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Terms : |
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Selling : |
Depend |
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Purchasing : |
Depend |
GENERAL INFORMATION
|
Customers : |
·
Wholesalers ·
End Users |
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No. of Employees : |
700 (Approximately) |
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Bankers : |
·
HDFC Bank Limited, HDFC Bank House Senapati Bapat
Marg, Lower Parel (West), Mumbai-400 013, ·
Times
Bank Limited, Rangavi, |
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|
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Banking
Relations : |
- |
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Auditors : |
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Name : |
Deloitee Haskins and Sells Chartered Accountants |
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Address : |
2, |
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Subsidiaries : |
Digilink Middle East (FZE) (w.e.f. 07th April 2010) |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
35000000 |
Equity Shares |
Rs.2/- Each |
Rs.70.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
30004850 |
Equity Shares |
Rs.2/- Each |
Rs.60.010
millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
60.010 |
60.010 |
60.010 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Employee Stock Option Outstanding |
13.716 |
14.420 |
15.917 |
|
|
4] Reserves & Surplus |
1623.444 |
1528.346 |
1437.936 |
|
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5] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
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NETWORTH |
1697.170 |
1602.776 |
1513.863 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
0.000 |
0.000 |
0.000 |
|
|
DEFERRED TAX LIABILITIES |
9.956 |
19.391 |
42.112 |
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|
|
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TOTAL |
1707.126 |
1622.167 |
1555.975 |
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APPLICATION OF FUNDS |
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|
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|
|
|
|
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FIXED ASSETS [Net Block] |
377.147 |
419.231 |
512.172 |
|
|
Capital work-in-progress |
0.839 |
13.849 |
7.170 |
|
|
|
|
|
|
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INVESTMENT |
899.745 |
926.472 |
653.107 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
222.620
|
171.322
|
130.886 |
|
|
Sundry Debtors |
353.675
|
268.118
|
255.899 |
|
|
Cash & Bank Balances |
130.422
|
53.366
|
76.964 |
|
|
Other Current Assets |
0.000 |
0.000 |
0.000 |
|
|
Loans & Advances |
82.158
|
116.248
|
163.023 |
|
Total
Current Assets |
788.875
|
609.054
|
626.772 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
245.080
|
189.631
|
138.404 |
|
|
Other Current Liabilities |
27.064
|
49.226
|
58.566 |
|
|
Provisions |
87.336
|
107.582
|
46.276 |
|
Total
Current Liabilities |
359.480
|
346.439
|
243.246 |
|
|
Net Current Assets |
429.395
|
262.615
|
383.526 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1707.126 |
1622.167 |
1555.975 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Turnover (Net) |
1774.857 |
1493.168 |
1389.529 |
|
|
|
|
127.996 |
168.521 |
174.899 |
|
|
|
Other Income |
101.061 |
104.130 |
108.752 |
|
|
|
TOTAL (A) |
2003.914 |
1765.819 |
1673.180 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing and Other expenses |
884.812 |
781.148 |
764.271 |
|
|
|
Purchase of traded goods |
871.725 |
665.596 |
701.940 |
|
|
|
Excise duty |
(0.808) |
5.322 |
(2.755) |
|
|
|
Increase/(Decrease) in stocks of finished goods and work-in-progress |
(42.654) |
(47.949) |
41.916 |
|
|
|
TOTAL (B) |
1713.075 |
1404.117 |
1505.372 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
290.839 |
361.702 |
167.808 |
|
|
|
|
|
|
|
|
|
Less |
INTEREST AND
FINANCE CHARGES (D) |
2.217 |
1.026 |
2.670 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
288.622 |
360.676 |
165.138 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
75.763 |
117.971 |
105.673 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
212.859 |
242.705 |
59.465 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
47.247 |
64.055 |
(9.861) |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
165.612 |
178.650 |
69.326 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1033.259 |
959.945 |
1309.864 |
|
|
|
|
|
|
|
|
|
Less |
Transferred pursuant to Scheme of Arrangement |
0.000 |
0.000 |
377.208 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed dividend |
60.010 |
75.012 |
30.005 |
|
|
|
Corporate dividend tax |
9.735 |
12.459 |
5.099 |
|
|
|
Transfer to General Reserve |
16.561 |
17.865 |
6.932 |
|
|
BALANCE CARRIED
TO THE B/S |
1112.565 |
1033.259 |
959.945 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
F.O.B. value of exports |
56.489 |
122.139 |
106.415 |
|
|
|
Income from services |
39.491 |
21.110 |
26.260 |
|
|
|
TOTAL EARNINGS |
95.980 |
143.249 |
132.675 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
Raw materials and components |
250.766 |
186.317 |
150.587 |
|
|
|
Stores, spares and packing materials |
4.706 |
13.442 |
23.580 |
|
|
|
Capital goods |
17.010 |
6.116 |
4.617 |
|
|
|
Traded goods |
816.881 |
658.009 |
642.602 |
|
|
|
TOTAL IMPORTS |
1089.363 |
863.884 |
821.386 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
5.52 |
5.95 |
2.31 |
|
Expected Sales (2011-2012) : Rs.2000.000 millions
The above information has been parted by Mr. Vishnudas
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2011 1st Quarter |
|
Net Sales |
|
|
196.070 |
|
Total Expenditure |
|
|
271.780 |
|
PBIDT (Excl OI) |
|
|
(75.710) |
|
Other Income |
|
|
53.350 |
|
Operating Profit |
|
|
(22.360) |
|
Interest |
|
|
0.160 |
|
Exceptional Items |
|
|
4709.510 |
|
PBDT |
|
|
4686.990 |
|
Depreciation |
|
|
13.830 |
|
Profit Before Tax |
|
|
4673.160 |
|
Tax |
|
|
1009.330 |
|
Provisions and contingencies |
|
|
0.000 |
|
Profit After Tax |
|
|
3663.830 |
|
Extraordinary Items |
|
|
0.000 |
|
Prior Period Expenses |
|
|
0.000 |
|
Other Adjustments |
|
|
0.000 |
|
Net Profit |
|
|
3663.830 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
8.26
|
10.12
|
4.14 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
11.99
|
16.25
|
4.28 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
18.26
|
23.60
|
5.22 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.13
|
0.15
|
0.04 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.21
|
0.22
|
0.16 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.19
|
1.76
|
2.58 |
LOCAL AGENCY FURTHER INFORMATION
DETAILS OF SUNDRY CREDITORS
|
Particulars |
31.03.2011 (Rs. in millions) |
31.03.2010 (Rs. in millions) |
31.03.2009 (Rs. in millions) |
|
Sundry
Creditors |
|
|
|
|
Total outstanding dues of micro
enterprises and small enterprises |
1.943 |
0.462 |
0.177 |
|
Total outstanding dues of creditors other
than micro enterprises and small enterprises |
243.137 |
189.169 |
138.227 |
|
Total |
245.080 |
189.631 |
138.404 |
|
Sr. No. |
Check List by Info Agents |
|
|
1. |
Year of Establishment |
YES |
|
2. |
Locality of the firm |
YES |
|
3. |
Constitutions of the firm |
YES |
|
4. |
Premises details |
YES |
|
5. |
Type of Business |
YES |
|
6. |
Line of Business |
YES |
|
7. |
Promoter’s background |
-- |
|
8. |
No. of employees |
YES |
|
9. |
Name of person contacted |
YES |
|
10. |
Designation of contact person |
YES |
|
11. |
Turnover of firm for last three years |
YES |
|
12. |
Profitability for last three years |
NO |
|
13. |
Reasons for variations <> 20% |
-- |
|
14. |
Estimation for coming financial year |
YES |
|
15. |
Capital in the business |
YES |
|
16. |
Details of sister concerns |
-- |
|
17. |
Major Suppliers |
NO |
|
18. |
Major Customers |
NO |
|
19. |
Payment terms |
YES |
|
20. |
Export / Import details (is applicable) |
-- |
|
21. |
Market information |
-- |
|
22. |
Litigation that the firm / promoter involved
in |
-- |
|
23. |
Banking Details |
YES |
|
24. |
Banking facility details |
-- |
|
25. |
Conduct of the banking account |
-- |
|
26. |
Buyer visit details |
-- |
|
27. |
Financials, if provided |
YES |
|
28. |
Incorporation details, if applicable |
-- |
|
29. |
Last accounts filed at ROC |
-- |
|
30. |
Major Shareholders, is available |
-- |
PERFORMANCE AND SIGNIFICANT DEVELOPMENTS
In the financial year
2010-11, the company achieved a Turnover of Rs.1857.90 million representing a
growth of 19.38% as compared to Rs.1,556.32 million in the previous year. The
sales from services were lower at Rs.128.00 million for the year ended 31st
March, 2011 as compared to Rs.168.52 million in the previous year.
Net Profit after
tax decreased by 7.3% to Rs.165.61 million for the year ending 31st March, 2011
as compared to Rs.178.65 million in the previous year.
On 31st March,
2011, the Company entered into a Business Transfer Agreement with Schneider
Electric India Private Limited (“Schneider”) for the sale of “DIGILINK
Business” to Schneider for a consideration of Rs.5030 million in cash on a
slump sale basis. ‘DIGILINK Business’ includes the land and building along with
manufacturing facilities located at Plot No. L-3, Verna Industrial Estate,
Verna,
‘DIGILINK
Business’ (excluding cash and cash equivalents), distribution network,
trademarks and the employees relating to the DIGILINK business.
On 11th May, 2011
the shareholders approved through Postal Ballot the sale of the ‘DIGILINK
Business’ to Schneider by passing an Ordinary Resolution under Section 293 (1)
(a) of the Companies Act, 1956 read with the Companies (Passing of Resolution
by Postal Ballot Rules, 2001). The votes cast assenting to the Ordinary
Resolution were 22,502,181 shares representing 99.78 % of the total valid votes
polled.
On 13th May, 2011,
the Closing date, the company received the aforesaid consideration of Rs.5030
million subject to necessary working capital changes and the ‘DIGILINK Business”
has been transferred to Schneider as a going concern on a slump sale basis.
The sale of
‘DIGILINK Business’ constitutes “discontinuing operations”.
Following the sale
of the ‘DIGILINK Business’, the company shall continue to operate its other existing
business in the areas of active networking products under the brand name
‘DIGISOL’ and the service business comprising mainly of after sales service and
support of all computer hardware products and technical call center services
under the brand name ‘DIGICARE’.
MANAGEMENT DISCUSSION AND ANALYSIS
ECONOMIC OVERVIEW
The sharp and
broad-based recovery of the Indian economy, which started in the last quarter
of 2009 continued through 2010. A normal monsoon boosting the performance of
the agriculture sector, robust industrial production and continued momentum in
the services sector have collectively contributed to the improvement in the
growth of Gross Domestic Product which is estimated to grow by 8.5% in
2010-2011.
However, the
optimism on the unbounded potential for growth has been clouded by the
spiraling inflation, high fiscal deficit level, infrastructure constraints and
downward trend in foreign direct investments which might impede the growth
trajectory of the economy in the near future.
INDUSTRY OVERVIEW
The overall India
domestic IT services and Products markets was Rs1233580.000 millions in 2010
and is expected to grow at a CAGR of 17.3% over 2010-2014. The IT sector has
played a vital role in the growth and development of
Today,
With Indian
companies making significant allocation of IT budgets on networking equipment,
the enterprise networking equipment market is expected to grow at a CAGR of
15%. Springboard Research recently published findings of its study titled
“Epicenter of growth – Indian Enterprise Networking Equipment Market Report”
and predicted the market to grow at a 5 year compounded annual growth rate
(CAGR) of 15% and touch US$ 1.7 billion in 2012.
The deployment of
3G, the Indian Government’s focus on taking the ICT revolution to the masses
coupled with rapid growth in all sectors like telecom, education, retail,
hospitality, aviation, infrastructure, manufacturing and banking, financial
services and insurance which make substantial investments in IT infrastructure
will further accelerate the growth of the networking products industry.
MARKET OVERVIEW
Structured Cabling
The Indian Structured
Cabling Solutions (SCS) market comprises of copper and fibre cabling solutions
and has now clearly segmented into commodity products (Cat 5), mainstream
products (Cat 6 and Cat 6A) and emerging products (Cat 10G) and is witnessing
increasing competition with the entry of several new players.
The Indian SCS
market showed slow growth during the year but with increasing investments in IT
infrastructure, it is expected to grow steadily. Among the verticals,
government, IT/ITeS account for the largest share of the market followed by
manufacturing, telecom, BFSI, education and others.
Active Networking Products
The active
networking equipment market in
LAN
The forecast for
the LAN market is exciting and the market for both switches and routers is
projected to grow at a CAGR of over 10% for the next few years.
The growth will be
driven by
In addition, 3G
investments are expected to pick up speed in 2011 making the telecom vertical a
strong driver of growth. On the enterprise front, IT/ITeS and BFSI, which are
major consumers of networking products, will continue to grow and is expected
to spread to smaller cities.
WLAN
The Indian
wireless market has also shown healthy growth during the year and expected to
register double digit CAGR in the next two years.
BUSINESS OVERVIEW
Subject is the
converged communication systems player in
The Company has
three state-of-the-art plants located in
Structured cabling
products (
DIGILINK: One of the leading brands in structured
cabling in
DIGISOL: The DIGISOL range of active networking
products offers end to end solutions with a comprehensive product portfolio
spanning ethernet switches, wireless and broadband networking, VoIP and
surveillance, etc. Though most of the products were introduced in the last
quarter of the last financial year, in a short period of time, the brand has
gained immense popularity.
DIGICARE: Subject offers an integrated service model
under its exclusive brand “DIGICARE”. This works as an independent unit, and
has a nationwide RMA service network with 64 service centers across the country
providing Level I to Level 4 support to many global brands as well as subject’s
own brands. The centers are equipped with sophisticated tools backed by the
latest technology and quality processes.DIGICARE provides strong logistics
support to manage backend delivery. Its technical assistance centre offers 24x7
voice, email and chat based support to many brands of several leading companies
in
DIGILITE: Subject was among the pioneers to import a
sophisticated SMT line in 1995, which it set up in
commenced the
manufacture of the first NIC card. Subsequently, subject added several SMT
lines and produced motherboards for a leading brand. Equipped with technology,
expertise, experience and sophisticated manufacturing capabilities, Subject is
now entering the motherboard market with its new brand “DIGILITE”. It plans to
launch its motherboards in the second quarter of 2011.
AWARDS AND ACCOLADES
“DIGILINK” Awards
·
“No 1 Brand in Structured Cabling” – Infofriend
2011
·
“Users Choice Award” for Structured Cabling – PC
Quest 2010 (7 years in a row)
·
“Channel Choice Award”: Best Structured Cabling
Brand-DQ Channel 2010 (3 years in a row)
·
“Channel Champions Award” in Structured Cabling CRN
Year 2010 (4 years in a row)
·
“Best Structured Cabling Brand” – VarIndia Year
2010
“DIGISOL” Awards
·
“Fastest growing IT brand” – Infofriend Year 2011
·
“Most Popular Brand” – CompuVar Magazine Year 2011
·
“Fastest growing Brand in IT” – VarIndia Year 2010
“DIGICARE” Award
·
“Best Post Sales Services” – VarIndia Year 2010
FINANCIAL PERFORMANCE
Turnover (Gross): The Company recorded Turnover (Gross) of
Rs.1857.90 million as compared to Rs.1,556.32 million for the previous year
registering a growth of 19.38%.
Profit Before Tax: Profit before tax
of the Company declined to Rs.212.86 million from Rs.242.70 million in the
previous year.
Profit After Tax: Profit after Tax of the Company decreased
to Rs.165.61 million from Rs.178.65 million in the previous year.
Subject has drawn
up a road map that will focus on high potential verticals and the company will
deploy significant resources to capture opportunities and make strategic
investments to improve its competitiveness in the marketplace.
The company has
recently launched the active range of products under the brand DIGISOL, which
has become one of the fastest growing brands in the networking industry.
Subject will explore opportunities for alliances, tie-ups and acquisitions in
this space.
Yet another growth
track will be provided by DIGILITE, the new brand of motherboards being
introduced by the company. Subject will have a significant competitive edge
with its cost effective manufacturing, its brand building expertise and strong
distribution.
The service
business DIGICARE which caters to several top global companies like Intel will
continue to grow steadily and make its contribution to the Company’s top and
bottom lines. Going forward, Subject plans to make significant investments to
scale up this business.
Subject’s superior
strategic positioning, entrepreneurial capabilities, its vast experience in
brand building and its strong balance sheet will offer enormous advantage as it
sets about the task of building the first truly global Indian brand in
networking.
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH JUNE 2011
(Rs.
in Millions)
|
Particulars |
|
3 Months ended 30.06.2011 (Unaudited) |
|
1. Sales (Gross) |
|
177.165 |
|
Less : Excise Duty |
|
7.879 |
|
|
|
169.286 |
|
2. Income from Services |
|
22.012 |
|
3. Net Sales / Income from
Operations (1+2) |
|
191.298 |
|
4. Other Operating Income |
|
4.769 |
|
5. Total Income (3+4) |
|
196.067 |
|
|
|
|
|
6. Expenditure |
|
|
|
(a) (Increase)/decrease in Stock in Trade and Work in Progress |
|
(8.382) |
|
(b) Consumption of Raw Materials |
|
64.737 |
|
(c) Purchase of traded goods |
|
92.009 |
|
(d) Employees Cost |
|
80.875 |
|
(e) Depreciation and amortization |
|
13.826 |
|
(f) Other Expenditure |
|
42.536 |
|
Total Expenditure |
|
285.601 |
|
7. (Loss)/Profit From Operations before other Income, Interest and Exceptional Items (5-6) |
|
(89.534) |
|
8. Other Income |
|
53.347 |
|
9. (Loss)/Profit before Interest and Exceptional items (7+8) |
|
(36.187) |
|
10. Interest |
|
0.160 |
|
11. (Loss)/Profit after interest but before Exceptional items (9-10) |
|
(36.347) |
|
12. Exceptional Items |
|
4709.508 |
|
13. Profit From
Ordinary activities before Tax (11+12) |
|
4673.161 |
|
14. Tax Expenses |
|
|
|
- Current Tax |
|
1020.000 |
|
- Differed Tax |
|
(10.672) |
|
- Excess Provision for tax in respect of earlier years |
|
-- |
|
15. Net Profit From Ordinary activities after Tax (13-14) |
|
3663.833 |
|
16. Extraordinary Items |
|
-- |
|
17. Net Profit for the period/year (15-16) |
|
3663.833 |
|
18. Paid Up Equity Share Capital ( Face Value Rs.2/-) |
|
60.010 |
|
19. Reserves Excluding Revaluation Reserves as per balance sheet of previous accounting year |
|
|
|
|
|
|
|
20. Basic and diluted EPS for the period and for the previous year before and after extraordinary items (Not annualised)* |
|
12.211 |
|
21. Pubic Shareholding |
|
|
|
- Number of Shares |
|
9802830 |
|
- Percentage of shareholding |
|
32.67% |
|
22. Promoters and Promoter group share holding |
|
|
|
a) Pledged / Encumbered |
|
|
|
- Number of Shares |
|
Nil |
|
- Percentage of share (as a % of the total shareholding of promoter and promoter group) |
|
Nil |
|
- Percentage of shares(as a % of the total share capital of the company) |
|
Nil |
|
b) Non-encumbered |
|
|
|
- Number of Shares |
|
20202020 |
|
- Percentage of Share (as a % of the total shareholding of promoter and promoter group) |
|
100% |
|
- Percentage of Share (as a % of the total share capital of the company) |
|
67.33% |
NOTES
Notes
·
The Company had signed the Business Transfer
Agreement on 31st March, 2011 with Schneider Electric India Private Limited
(“Schneider”) for sale of its Structured cabling business comprising of manufacture,
sale and marketing of structured cabling products carried under the brand name
“DIGILINK”, hereinafter referred to as (“Digilink Business”), on slump sale
basis as a going concern for a consideration of Rs.5030.000 millions to be
adjusted for any net working capital adjustments. The same was approved by the
Board of Directors at its meeting held on 31st March, 2011 and by
the shareholders vide resolution passed through postal ballot on 11th May, 2011. The consideration was received on
13th May, 2011 , the Closing date. The profit on account of the
above transaction is disclosed as an exceptional item. Consequently, the
figures for the current quarter are not strictly comparable with the
corresponding figures for the previous quarter.
Details of revenue
and expenses and assets and liabilities of continued and discontinued
operations are as below:
(Rs. in Millions)
|
Particulars |
For the quarter ending 30th June, 2011 |
||
|
|
Continuing Operation |
Discontinuing Operation |
Total |
|
Turnover (net) |
54.481 |
114.805 |
169.286 |
|
|
22.012 |
-- |
22.012 |
|
Increase/(Decrease) in stocks of finished goods and work-in-progress |
8.382 |
-- |
8.382 |
|
Other Income |
54.703 |
3.413 |
58.116 |
|
Total Income |
139.578 |
118.218 |
257.796 |
|
Total Expenditure |
183.651 |
110.492 |
294.143 |
|
(Loss)/Profit before tax and before exceptional items |
(44.073) |
7.726 |
(36.347) |
|
Exceptional item |
4709.508 |
-- |
4709.508 |
|
Profit before tax |
4665.435 |
7.726 |
4673.161 |
|
Provision for tax |
1008.037 |
1.291 |
1009.328 |
|
Profit after tax |
3657.398 |
6.435 |
3663.833 |
|
Assets |
4983.353 |
493.172 |
5476.525 |
|
Liabilities |
993.880 |
168.006 |
1161.886 |
Note : The figures for the previous quarter ending 30th June,
2010 are not given as they are not easily available.
·
The details of Investor Complaints received,
disposed off and lying unresolved at the end of the quarter ended 30th June,
2011 (Information provided by the Company’s Registrar and Share transfer agents
- M/s Karvy Computershare Private Limited):
Complaints at the beginning of the
quarter
NIL
Complaints received during the quarter 9
Disposal of Complaints
9
Complaints lying unresolved at the end of
the quarter NIL
·
The Company operates in a single business segment
namely “Networking Products “.
·
Figures of the previous quarter/year are
re-grouped/re-arranged, wherever necessary
·
The above unaudited results have been reviewed by
the Audit Committee and approved by the Board of Directors at its Meeting held
on 29th July, 2011.
FIXED ASSETS
Tangible Assets
·
·
·
Buildings
·
Plant and Machinery
·
Electrical Installations
·
Furniture, Fittings and Office Equipment
·
Air Conditioners
·
Motor Vehicles
·
Computers
Intangible Assets
·
Computer Software
·
Goodwill
WEB DETAILS
BUSINESS
DESCRIPTION
Subject, formerly D-Link (
BOARD OF DIRECTORS
Mr. Kamalaksha R.
Naik - Executive Chairman
Mr. Kamalaksha R. Naik is Executive Chairman of the Board of subject. He
is the main promoter of subject. He joined the Company as the Director on 31st
March 1993. Mr. Naik has nearly 4 decades of experience in the networking
industry. He holds a Post Graduate Degree in Industrial Engineering from
Mr. Pankaj Baliga
- Non-Executive Independent Director
Mr. Pankaj Baliga is Non-Executive Independent Director of subject. He
has a Bachelors Degree in Engineering, NIT,
Education
M Business Administration, Indian Institute of Management, Ahmedabad
B Engineering, National Institute of Technology
Mr. Krishnanand M.
Gaonkar - Non-Executive Independent Director
Mr. Krishnanand M. Gaonkar is Non-Executive Independent Director of
subject. He possesses a Masters Degree in Science from UDC Mumbai and has 30
years of experience in the petrochemical and fibre industry. He started his
career with Colour Chem Limited as a Research Chemist, where he worked for a
period of 7 years before shifting to Reliance Industries Limited where he
worked for 23 years in various positions, with the last six years as a Vice
President in their Fibres Marketing Division. Today he is a Freelance
Consultant.
Mr. Rishikesha T.
Krishnan - Non-Executive Independent Director
Professor Rishikesha T. Krishnan is Non-Executive Independent Director
of subject. He possesses a Masters Degree in Science from IIT,
Education
PHD , Indian Institute of Management, Ahmedabad
M Science, Indian Institute of Technology,
M Engineering,
Mr. Dattaraj V.
Salgaocar - Non-Executive Independent Director
Mr. Dattaraj V. Salgaocar is Non-Executive Independent Director of
subject. He holds a Bachelors Degree in Production Engineering from VJTI,
Education
B Production Engineering,
MBA Finance, The
PRESS RELEASE
DIGISOL LAUNCHES NEXT
GENERATION CHASSIS SWITCHES
India,
Sept. 30 -- Smartlink Network Systems Limited, India's premier networking
company has launched its new series of high port density Layer 2 and Layer 3
switches aimed at providing enterprises with a complete core switching
solution. Featuring the entire Layer 3 solution, DIGISOL DG-CS7010 and
DG-CS7004 switches are next generation switches which can work on single or
redundant management module mode and redundant power supply. These Switches are
ideal for the core layer of campuses, enterprise networks and the aggregation
layer of IP metropolitan.
DG-CSX4548
is a high density 48 port 10Gb Ethernet L2 switch designed from the ground up
to be deployed and utilized in medium to large data centers. With its unmatched
density, the Dg-GCX4548 is ideally suited for converged Ethernet applications
such as 10Gb traffic aggregation and iSCSI storage interconnect.
Mr.
K. R. Naik, Executive Chairman, Smartlink Network Systems, while unveiling
DIGISOL Chassis Switches at Interop 2011 said, "Active Networking Products
have been very much part of the company's core competency since last two
decade. Our experience goes back to 1994. With in-depth knowledge of networking
industry and well balanced resources, the company has drawn up ambitious plans
for the future. We aimed to be Top 3 plays in active networking in next couple
of years".
"Our
new switches are the most comprehensive chassis-based switching solution from
DIGISOL, catering to the enterprise sector," said Mr. Shridhar Kadam. VP -
Product Management, Smartlink Network Systems Limited "Each switch has
been specially designed to cater to the daily demands of the enterprise, and
features next generation technology to provide optimum performance, even for
bandwidth intensive applications."
DG-CS7010
is a high performance, 10-slot. Layer 3 chassis switch and DG-CS7004 is a high
performance, 4-slot, layer 3 chassis switch. Chassis switch can accommodate any
combination of network interface modules and also include network interface,
which increases total port density and slot usages.
Introduction
of Chassis Switches compliments Smartlink Network Systems Limited gamut of
end-to-end Network product offerings.
Key
Features:
·
Performance
and Scalability
·
Continuous
Availability
·
Simplified
Management
·
Advance
L3 Features
·
Comprehensive
QoS
·
Enhanced
Security
DIGISOL
range of products includes, Switching, Broadband routing, Wireless LAN,
Converged Communication, IP Surveillance, LAN Communication and VoIP
DIGISOL LAUNCHES NEXT
GENERATION SWITCHING SOLUTIONS
India,
Sept. 29 -- Smartlink Network Systems Limited, India's premier networking
company has launched its new series of high port density Layer 2 and 3 switches
under its Stallion Range of Switching solutions. These switches are aimed at
providing enterprise segment with a complete core switching solutions featuring
the entire Layer 3 solution.
DIGISOL
DG-CS7010 and DG-CS7004 switches are next generation chassis switches which can
work on single or redundant management module mode and redundant power supply.
These Switches are ideal for the core layer of campus, enterprise networks and
the aggregation layer of IP metropolitan.
DIGISOL
also unveiled High Performance 48 Port 10G Stackable switch DG-CS4548F for data
center applications. This 48 Port 10G Fiber Switch is designed to support High
Ethernet fabric requirement for cloud computing and large data centers. With
its unmatched density, the DG-GS4548F is ideally suited for converged Ethernet
applications such as 10Gb traffic aggregation and iSCSI/FCOE storage
interconnect.
Mr.
K. R. Naik, Executive Chairman, Smartlink Network Systems, while unveiling
DIGISOL Chassis Switches at Interop 2011 said, "Active Networking Products
have been very much part of the company's core competency since last two
decade, our experience goes way back in 1994. Having in-depth knowledge of
networking industry and well balanced resources, the company has drawn up
ambitious plans for the future. We aim to be in top three players in Active
Networking in next couple of years".
"New
switches are the most comprehensive switching solution from DIGISOL catering
the enterprise sector," said Mr. Shridhar Kadam. VP - Product Management,
Smartlink Network Systems Limited "Each switch has been specially designed
to cater to the daily demands of the enterprise segment and features next
generation technology to provide optimum performance, even for bandwidth
intensive applications."
DG-CS7010
is a high performance, 10-slot, layer 3 Chassis Switch and DG-CS7004 is a high
performance, 4-slot, layer 3 Chassis Switch. These Chassis switches can
accommodate multiple combinations of Network Interface modules and also has
choice of Hybrid modules with different interface option for increasing slot
usage.
Key
Features:
·
Performance
and Scalability
·
Continuous
Availability
·
Simplified
Management
·
Advance
L3 Features
·
Comprehensive
QoS
·
Enhanced
Security
DIGISOL
range of products includes, Switching, Broadband routing, Wireless LAN,
Converged Communication, IP Surveillance, LAN Communication and VoIP
DIGISOL ROLLS OUT
"NEXTECH 2011" - IN OVER 120 CITIES IN
"nexTech
2011" is aimed to promote DIGISOL range of products in class A, B, C and D
market and will also create awareness on latest trends and technologies
existing in the market. This seminar series will help the dealers and resellers
to understand these technologies and to promote it.
Mr.
Debraj Dam, VP. - Strategic Sales, DIGISOL said, "Our company's philosophy
is to grow along our partners by providing better products, service and
profitability, thereby empowering them with knowledge and expertise on all
networking trends and latest technologies existing in the market".
Smartlink
has recently entered the motherboard market with its new brand 'DIGILITE'.
Company has sophisticated manufacturing capabilities and vast experience in the
manufacture of motherboards, having done so for a leading brand for several
years. Like other Smartlink products, DIGILITE motherboards will set new
benchmarks for quality, reliability and deliver great value for money.
DIGISOL
range of products includes, Switching, Broadband routing, Wireless LAN,
Converged Communication, IP Surveillance, LAN Communication and VoIP
DIGISOL LAUNCHES 2 PORT
MINI KVM SWITCHES
DIGISOL
DG-KP1002 and DG-KU1002 allows control of up to two computers from a single set
of keyboard, monitor and mouse. It also allows the users to use a single set of
external speaker and mic for connecting up to two computers. Thus, this device
reduces the number of devices on the desktop and the clutter caused by the
cables connecting these devices.
"DIGISOL
traditionally comes up with innovative products, this time we have launched
DG-KP1002 which is 2 Port Mini PS/2 KVM Switch with audio support and DG-
KU1002 which is 2 port Mini USB KVM Switch with audio support. We are very
confident that these two products would be a great hit in the market just like
any other DIGISOL product. Our company's policy is to provide Technological and
Innovative products for our channel partners and customers, which enables our
partner's success in their business." says Mr. Shridhar Kadam, VP -
Product Management, DIGISOL.
Key
Feature:
·
Flexible
Multimedia Switching with D-flex technology
·
Plug-n-Play
installation
·
Energy
Efficient
·
Unique
D-Combo Cable/Connector design
·
Slim
Palm size design
·
Controls
up to two computers from Single Keyboard, Monitor, Mouse Console
·
Supports
PS/2 Keyboard and Mouse
·
Audio
support - Speaker and Microphone
·
Auto
scan-with Programmable delay timer
·
High
VGA resolution-up to 2048x1536
·
Channel
Selection by Hot-Key on PS/2 Keyboard or push button on face panel
·
Power
up from PS/2 interface-no need of external power source
·
Hot-plugging
of PCs for maintenance without powering down the KVM Switch or PCs
·
Separate
LED indicators for each PC
Price:
DG-KP1002 and DG-KU1002 is available in the market at an approximate street
price of Rs.0.002 million and Rs.0.003 million respectively.
DIGISOL
range of products includes, Switching, Broadband routing, Wireless LAN,
Converged Communication, IP Surveillance, LAN Communication and VoIP.
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.49.14 |
|
|
1 |
Rs.75.97 |
|
Euro |
1 |
Rs.66.00 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
58 |
This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.