MIRA
INFORM REPORT
|
Report Date : |
18.10.2011 |
IDENTIFICATION DETAILS
|
Name : |
ACCEL FRONTLINE LIMITED |
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Registered
Office : |
75, 3rd Floor, Nelson Manickam Road, Aminjikarai, Chennai –
600029, Tamilnadu |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
08.06.1995 |
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Com. Reg. No.: |
031736 |
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Capital
Investment / Paid-up Capital : |
Rs.225.090 Millions |
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CIN No.: [Company Identification
No.] |
L30006TN1995PLC031736 |
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|
TAN No.: [Tax Deduction &
Collection Account No.] |
CHEA02199B |
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PAN No.: [Permanent Account No.] |
AAACA5622M |
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Legal Form : |
Public Limited Liability Company, company’s shares are listed on stock
exchange. |
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Line of Business
: |
The Company is in the business of information technology
(IT) infrastructure management services. |
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No. of Employees
: |
1900 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (48) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 4190416 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well established company having satisfactory track. Trade
relations are reported as fair. Business is active. Payments are reported to
be usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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 |
LOCATIONS
|
Registered Office : |
75, 3rd Floor, Nelson Manickam Road, Aminjikarai, Chennai –
600029, Tamilnadu, India |
|
Tel. No.: |
91-44-23741271/42252000 |
|
Fax No.: |
91-44-23741271 |
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E-Mail : |
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Website : |
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Branches : |
Progress
House , 54 Pune Behind Patil Estate Stop (Wellesly Road), Shivajinagar, Pune – 411 005, Maharashtra, India |
|
Tel. No.: |
91-20-25541280/0286 |
|
Fax No.: |
91-20-25540286 |
DIRECTORS
|
Name : |
Mr. N R Panicker |
|
Designation : |
Director |
|
Address : |
Chennai |
|
Qualification : |
B.E |
|
Experience : |
30 years |
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|
Name : |
Mr. K R Chandrasekaran |
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Designation : |
Director |
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Address : |
Chennai |
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Qualification : |
CA |
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Experience : |
30 years |
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Name : |
Mr. A P Parigi |
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Designation : |
Director |
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Address : |
Mumbai |
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Experience : |
35 years |
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Name : |
Mr. Steve Ting |
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Designation : |
Director |
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Address : |
Singapore |
|
Experience : |
25 years |
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Name : |
Mr. Suresh K Sharma |
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Designation : |
Director |
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Date of Birth/Age : |
56 years |
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Experience : |
20 yeears |
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|
Name : |
Mr. Sudhir Narang |
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Designation : |
Director |
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Name : |
Dr. Harrison Wang Hong She |
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Designation : |
Director |
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Name : |
Mr. Lakshmi G Meno |
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Designation : |
Director |
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Name : |
Mr. Sinnakaruppan |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Sweena Nair |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.06.2011
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
(A) Shareholding of promoter
and Promoter Group |
|
|
|
1) Indian |
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|
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a) Individuals / Hindu Undivided Family |
262500 |
1.17 |
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b) Bodies corporate |
4375390 |
19.44 |
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|
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2) Foreign |
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|
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a) Bodies corporate |
11.478 |
51.00 |
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(B) Public Shareholdings |
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1) Institutions |
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a) Financial Institutions/Banks |
229971 |
1.02 |
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|
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2) Non – Institution |
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a) Bodies corporate |
3614757 |
16.06 |
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|
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b) Individuals |
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i. Individual Shareholders holding nominal share capital upto Rs.0.100
Million |
1772017 |
7.87 |
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ii. Individual Shareholders holding nominal share capital in excess
Rs.0.100 Million |
614696 |
2.73 |
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|
|
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c) Any other |
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i) NRI – Repatriable |
143012 |
0.64 |
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ii) Clearing Member |
18069 |
0.08 |
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iii) Trust |
100 |
-- |
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|
|
|
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Total |
22509000 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
The Company is in the business of information technology (IT)
infrastructure management services. |
GENERAL INFORMATION
|
No. of Employees : |
1900 (Approximately) |
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Bankers : |
·
State Bank of India ·
IDBI Bank Limited ·
ICICI Bank Limited ·
Barclays Bank Plc. ·
Citibank NA |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
K.S. Aiyar and Company Chartered Accountant |
|
Address : |
#54/2, Paulwells Road, St.
Thomas Mount, Chennai - 600 01, Tamilnadu, India |
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|
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Subsidiary
Companies: |
·
ACL Systems and Technologies PTE Limited,
Singapore ·
Accel Frontline FZE, Dubai ·
Network Programs USA Inc.,USA ·
Network Programs (Japan) Inc., USA ·
Network Programs Japan KK Japan
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|
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Controlling
Companies: |
·
BT Frontline Pte Limited, Singapore ·
Accel Limited, Chennai |
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Companies under
common control: |
·
Accel Systems Group, Inc. USA ·
Accel Transmatic Limited, Chennai. ·
Accel Frontline Services Limited ·
Accel IT Resources Limited, Chennai |
CAPITAL STRUCTURE
AS ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
30000000 |
Equity Shares |
Rs.10/- each |
Rs.300.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
22509000 |
Equity Shares |
Rs.10/- each |
Rs.225.090
Millions |
|
|
|
|
|
(out of the above
11,478,488 equity shares of Rs.10/-each fully paid is held by BT Frontline Pte
Ltd, Singapore, the holding company)
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 |
225.090 |
225.090 |
225.090 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
822.514 |
803.752 |
795.421 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1047.604 |
1028.842 |
1020.511 |
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|
LOAN FUNDS |
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|
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|
1] Secured Loans |
904.565 |
441.001 |
339.755 |
|
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
904.565 |
441.001 |
339.755 |
|
|
DEFERRED TAX LIABILITIES |
28.694 |
48.357 |
52.575 |
|
|
|
|
|
|
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TOTAL |
1980.863 |
1518.200 |
1412.841 |
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|
|
|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
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|
FIXED ASSETS [Net Block] |
195.109 |
239.575 |
258.483 |
|
|
Capital work-in-progress |
0.000 |
1.300 |
14.029 |
|
|
|
|
|
|
|
|
INVESTMENT |
62.397 |
61.040 |
61.041 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
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|
Inventories |
264.710
|
199.954 |
229.609 |
|
|
Sundry Debtors |
1287.490
|
962.164 |
867.198 |
|
|
Cash & Bank Balances |
182.366
|
302.310 |
178.860 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
515.819
|
379.588 |
330.377 |
|
Total
Current Assets |
2250.385
|
1844.016 |
1606.044 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
280.420
|
438.007 |
285.248 |
|
|
Other Current Liabilities |
181.570
|
176.022 |
226.467 |
|
|
Provisions |
65.038
|
13.702 |
15.041 |
|
Total
Current Liabilities |
527.028
|
627.731 |
526.756 |
|
|
Net Current Assets |
1723.357
|
1216.285 |
1079.288 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1980.863 |
1518.200 |
1412.841 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
3308.384 |
2535.091 |
2722.175 |
|
|
|
Other Income |
11.764 |
34.118 |
14.165 |
|
|
|
TOTAL (A) |
3320.148 |
2569.209 |
2736.340 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Sales and Services |
2383.853 |
1702.699 |
1631.840 |
|
|
|
Employees Cost and Benefits |
409.237 |
434.119 |
510.679 |
|
|
|
Operating Expenses |
316.072 |
269.219 |
401.281 |
|
|
|
TOTAL (B) |
3109.162 |
2406.037 |
2543.800 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
210.986 |
163.172 |
192.540 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
63.292 |
42.501 |
60.433 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
147.694 |
120.671 |
132.107 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
58.481 |
57.605 |
61.566 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
89.213 |
63.066 |
70.541 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
19.419 |
15.608 |
26.601 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
63.794 |
47.458 |
43.940 |
|
|
|
|
|
|
|
|
|
Less |
TAXES RELATING
TO EARLIER YEARS |
|
|
|
|
|
|
INCOME TAX |
0.000 |
0.585 |
1.468 |
|
|
|
FRINGE BENEFIT
TAX |
0.000 |
(0.096) |
0.000 |
|
|
|
|
|
|
|
|
|
Add |
PROVISION FOR
COMPENSATED ABSENCES REVERSED |
7.463 |
0.863 |
4.352 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
227.711 |
224.380 |
213.889 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed dividend |
45.018 |
33.763 |
22.509 |
|
|
|
Tax on dividend |
7.477 |
5.738 |
3.825 |
|
|
|
Transfer to general reserve |
5.000 |
5.000 |
10.000 |
|
|
BALANCE CARRIED
TO THE B/S |
241.473 |
227.711 |
224.379 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
42.263 |
68.466 |
124.785 |
|
|
TOTAL EARNINGS |
42.263 |
68.466 |
124.785 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Components |
749.690 |
396.056 |
448.260 |
|
|
TOTAL IMPORTS |
749.690 |
396.056 |
448.260 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
2.83 |
2.11 |
-- |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2011 |
|
Type |
|
|
1st
Quarter |
|
Sales Turnover |
|
|
861.700 |
|
Total Expenditure |
|
|
801.100 |
|
PBIDT (Excl
OI) |
|
|
60.600 |
|
Other Income |
|
|
2.500 |
|
Operating
Profit |
|
|
63.100 |
|
Interest |
|
|
20.200 |
|
Exceptional
Items |
|
|
0.000 |
|
PBDT |
|
|
42.900 |
|
Depreciation |
|
|
14.200 |
|
Profit
Before Tax |
|
|
28.700 |
|
Tax |
|
|
8.500 |
|
Reported PAT |
|
|
20.200 |
|
Extraordinary Items |
|
|
0.000 |
|
Prior Period Expenses |
|
|
0.000 |
|
Other Adjustments |
|
|
0.000 |
|
Net Profit |
|
|
20.200 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
1.92
|
1.85 |
1.61 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
2.70
|
2.49 |
2.59 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.65
|
3.03 |
3.78 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.08
|
0.06 |
0.07 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.37
|
1.04 |
0.85 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
4.27
|
2.94 |
3.05 |
LOCAL AGENCY FURTHER INFORMATION
REVIEW OF OPERATIONS
FY11 was a year of enhanced growth for the company.
The company garnered fresh business and strengthened it’s relationships with
existing customers. The company achieved a revenue growth of 29.23% on a
standalone basis. Net turnover increased to Rs 3,320.150 millions for the year
ended March 31, 2011 as compared to Rs.2,569.210 millions for the corresponding
period last year. The company’s focus continues to be on Infrastructure
Management Services. Other businesses also performed reasonably well during the
year.
On a standalone basis, profit before tax
stood at Rs. 89.210 millions as against Rs. 63.070 millions for the
corresponding period last year. On a consolidated basis, the net turnover stood
at Rs 3,960.490 millions, the EBITDA was Rs. 252.740 millions and the profit
after tax was Rs 101.940 millions. The
Top 10 customers now contribute 55% to the total revenue share. The company is
pleased to announce a final dividend of Rs 2 per share (20% on the face
value of Rs 10 per share) consistent with its policy to reward shareholders.
BUSINESS DESCRIPTION
Subject is an India-based company. The Company is in the business of information technology (IT) infrastructure management services. The Company operates in the IT related services segment. Accel is engaged in providing system integration solutions consisting of network design, hardware, software, website development, and the sale and implementation of customized software products. The Company also provides IT infrastructure management solutions, after sales services support relating to asset maintenance services for the Company's own and third-party products. Its principal products include computers and computer peripherals. Its IT infrastructure solutions include technology products and solutions, data/storage consolidation management, enterprise network deployment and IT security consulting and implementation. The company focuses on manufacturing, banking, financial and service institutions (BFSI), telecom, government and education sectors. For the nine months ended 31 December 2010, Subject revenues increased 26% to RS1.56B. Net income decreased 12% to RS40.3M. Revenues reflect an increase in income from operations. Net income was offset by an increase in purchase of traded goods, a rise interest expenses, the presence of loss from stock in trade vs. an income and increased depreciation expenses. The company is involved in IT infrastructure services & other services
MAJOR MILESTONES
2011
·
Accel Limited Buys Out BT Frontline Pte Stake.
·
Accel Limited Becomes Majority Promoter With 70.44%
Stake.
2010
·
Accel Quality Framework (AQF) initiative set
guidelines and procedures to ensure Quality standards across the organization.
·
ISO 9001-2000 certification for Infrastructure
Management Services.
2009
·
Hives off WMS division to its wholly owned subsidiary
AFSL.
·
Management buyout of AFSL by the management team of
WMS and Accel Limited.
2008
·
Acquires software business of Network Programs
India Limited in India and Japan.
·
Accel becomes a 51% subsidiary of BT Frontline Pte
Limited, as BT completes acquisition of Frontline Technologies Corporation.
·
Acquires XLNC Infotech Solutions, a Bangalore based
Company specialising in Warranty Management Services.
2007
·
Acquires Banking Solutions Division of Telesis
Global Solutions Limited, a Chennai-based software company specializing in
software. products for banking applications and implementation and migration
services for core banking software in India, Middle East and African regions.
·
Strategic partnership with Seagate Technology to
provide professional data recovery services.
2006
·
Becomes Sun's Strategic Regional Partner in
addition to being an Enterprise Partner in India.
·
Launches joint-operations in Coimbatore, Trichy and
Thiruvanathapuram with Sun Microsystems.
·
Ties up with Kingston Technology Corporation to
provide comprehensive product warranty and support for Kingston products in
India.
·
Successfully launches IPO.
·
Continues to be ranked among Top 10 IT Employers in
DQ IDC Best Employer Survey 2006.
2005
·
Company name changed from Accel ICIM to Accel
Frontline Limited.
·
Accel Frontline was assessed at SEI CMMi Level 3
for its Enterprise Software Solutions Practice and ISO-9001 for its IT Services
division.
·
Bags major long term software contracts; expands
manpower.
·
Ranked among Top 10 by Dataquest in its national
Employee Satisfaction Survey.
2004
·
Enters into Strategic Alliance with Singapore based
Frontline Technologies Corporation Limited (FTC)
2001-2003
·
Focus is to institutionalize the organization and
consolidate its position as a leading Systems Integration and Infrastructure
Services Company.
·
Turnover crosses Rs 150 crore in FY03.
·
Forges alliance with Sun Microsystems, Oracle, JD
Edwards, Citrix etc, to provide Enterprise IT Solutions and Software Services.
·
Begins operations in Dubai and Singapore to create
a market for software services.
2000
·
Crosses US$25 mn turnover.
·
Establishes itself as a leading Enterprise IT
Services Company operating in the corporate segment with one of the largest
network of offices in India.
·
Receives strategic investment from Intel Capital.
1999
·
Raises private equity from one of India’s largest
venture capital funds – ICICI Ventures.
·
Acquires the Systems and Engineering Services business
of Fujitsu ICIM Ltd in India, which was at one time the country’s largest IT
Company.
·
IT business of Accel re-organised in to Accel ICIM
Systems & Services Limited
1998
·
Acquires the services business of Network Ltd, an
HCL Group company focusing in office automation products and services.
·
Crosses US$10 mn in turnover.
1997
·
Acquires Athreya Technologies and Industrial
Development Private Ltd, a Delhi based company, to expand base in all major
cities of North India.
1996
·
Forays into software by setting up an application
development center in Chennai.
1993
·
Buys out a computer manufacturing unit from Kothari
group of companies to provide Systems Integration and Product Solutions.
1992
·
Begins multi-location operations with offices in
Coimbatore and Thiruvananthapuram.
1991
·
Accel starts as Accel Automation Private Ltd. by
providing multi-vendor services for Computer Systems.
·
Five engineers with more than 50 years of combined
experience in the IT industry come together with a vision to build an organization
focusing on IT services.
PRESS RELEASE:
Accel Frontline
Limited To Acquire Ushus Technologies
· Enters Into MoU With Accel Transmatic Limited.
· Acquisition subject to approval by ATL shareholders.
· Acquisition to strengthen AFL’s International IT Services offerings
Chennai, August 09, 2011: Accel Frontline Limited (BSE: 532774, NSE: AFL), a leading IT Services Company, today announced that it had entered into a Memorandum of Understanding (MoU) with Accel Transmatic Limited to acquire Ushus Technologies, the software services division of Accel Transmatic Limited. The acquisition is subject to approval by Accel Transmatic Limited shareholders.
N R Panicker, Chairman and CEO, Accel Frontline Limited said, "This acquisition is in line with our strategy to strengthen Accel Frontline Limited’s IT services portfolio with value added offshore software services. Ushus Technologies is a fast growing Embedded Software Services provider with Fortune 100 companies in its client list. This strategic acquisition will help Accel Frontline Limited to grow its technology services business globally in the coming years and give a fillip to overseas business."
Ushus Technologies, a division of Accel Transmatic Limited, founded in 2000, is headquartered in Technopark, Thiruvananthpuram, and is a 100% export oriented software services company, specializing in embedded software for Imaging, Multimedia and Networking domains. It employs over 300 software professionals in its offshore development centers in Technopark Thiruvananthapuram and Infopark SEZ in Kochi. It also has its international offices in California and Tokyo. Ushus Technologies clocked a turnover Rs 199.700 Millions for the financial year ending March 31, 2011 and is expected grow by over 40% in the current year.
Commenting on this development, Mr Philip John, President of Ushus Technologies said "We are indeed happy to be part of Accel Frontline Limited as we see a big opportunity to grow our business many fold in the coming years. Being a part of a larger corporate entity, we will have the financial strength to scale up our infrastructure and resources. We will also use cross sell opportunities with the existing clients of Accel Frontline Limited in the international market."
Accel Frontline Limited’s consolidated revenues for FY11 stood at Rs 3960.000 Millions and Profit after tax were Rs 102.400 Millions compared to a turnover of Rs 2715.000 Millions and profit after tax of Rs.59.600 Millions in the previous financial year and is aiming to grow faster in the coming years.
Mint
05 October 2011
New Delhi, Oct. 5 -- Information technology services company Accel Frontline Ltd plans to spend as much as $25 million to buy several small companies as it seeks to boost revenue sixfold by 2017.
It aims to raise $10-15 million by selling shares to private equity (PE) funds to partially fund the acquisitions, chief executive N.R. Panicker said in an interview. The company aims to increase revenue to '2,500 crore in the next five-six years from '396 crore in the year ended 31 March, he said.
"The next five years will be the growth phase," said Panicker, who founded the flagship company in 1991. "We will be looking at inorganic growth. We want to get geographical reach."
The company is in preliminary talks with PE investors, though the need for funding and its size will depend on the companies identified for purchase, Panicker said, adding that he hopes to invest $20-25 million in acquisitions over the next 18 months. The company could fund acquisitions of up to $10 million through internal accruals, he said.
Accel Frontline plans to expand its core business of domestic technology infrastructure management; add business through an embedded software company, Ushus Technologies, which it acquired last month from a group firm; and expand overseas through acquisitions of companies in the US or West Asia with sales of $10-50 million, or Indian companies with a sizeable export business, Panicker said.
The long-term plan is to use the combined strength of these small acquisitions to undertake a leveraged buy-out of a larger company down the line, he said.
"The IT (information technology) services industry redefines itself every two-three years," said Ankit Pande, a technology analyst with SBI Capital Securities. "Any wave of industrial revolution takes 70-80 years, and tech is really only about 20 years old. IT will continue to see sustained growth."
The company's core area of operation, the IT infrastructure management industry, has grown 40% year-on-year for the last three years, said Milan Sheth, partner, IT advisory, Ernst and Young.
Group company Accel Media Ventures Ltd is also looking for PE funding of about $15-20 million to strengthen its media production, distribution, licensing, merchandising and education operations. It has bid to set up an international animation and gaming school planned as a public-private partnership venture in Thiruvananthapuram.
Accel Frontline bought out the 51% stake of its joint venture partner, BT Frontline-a unit of British Telecommunications (BT)-in August because BT had seemed to shift its focus away from IT, Panicker said. This fiscal, with Ushus Technologies contributing about half the year's revenue, the company expects to report revenue of '570 crore through organic growth of about 44%.
Mint Dow Jones
Newswires The Wall Street Journal
Information technology services company Accel Frontline Ltd plans to spend as much as $25 million to buy several small companies as it seeks to boost revenue sixfold by 2017.
It aims to raise $10-15 million by selling shares to private equity (PE) funds to partially fund the acquisitions, chief executive N.R. Panicker said in an interview. The company aims to increase revenue to '2,500 crore in the next five-six years from '396 crore in the year ended 31 March, he said.
"The next five years will be the growth phase," said Panicker, who founded the flagship company in 1991. "We will be looking at inorganic growth. We want to get geographical reach."
The company is in preliminary talks with PE investors, though the need for funding and its size will depend on the companies identified for purchase, Panicker said, adding that he hopes to invest $20-25 million in acquisitions over the next 18 months. The company could fund acquisitions of up to $10 million through internal accruals, he said.
Accel Frontline plans to expand its core business of domestic technology infrastructure management; add business through an embedded software company, Ushus Technologies, which it acquired last month from a group firm; and expand overseas through acquisitions of companies in the US or West Asia with sales of $10-50 million, or Indian companies with a sizeable export business, Panicker said.
The long-term plan is to use the combined strength of these small acquisitions to undertake a leveraged buy-out of a larger company down the line, he said.
"The IT (information technology) services industry redefines itself every two-three years," said Ankit Pande, a technology analyst with SBI Capital Securities. "Any wave of industrial revolution takes 70-80 years, and tech is really only about 20 years old. IT will continue to see sustained growth."
The company's core area of operation, the IT infrastructure management industry, has grown 40% year-on-year for the last three years, said Milan Sheth, partner, IT advisory, Ernst and Young.
Group company Accel Media Ventures Ltd is also looking for PE funding of about $15-20 million to strengthen its media production, distribution, licensing, merchandising and education operations. It has bid to set up an international animation and gaming school planned as a public-private partnership venture in Thiruvananthapuram.
Accel Frontline bought out the 51% stake of its joint venture partner, BT Frontline-a unit of British Telecommunications (BT)-in August because BT had seemed to shift its focus away from IT, Panicker said. This fiscal, with Ushus Technologies contributing about half the year's revenue, the company expects to report revenue of '570 crore through organic growth of about 44%. Published by HT Syndication with permission from MINT.
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.48.89 |
|
|
1 |
Rs.77.31 |
|
Euro |
1 |
Rs.67.78 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
48 |
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.