MIRA
INFORM REPORT
|
Report Date : |
01.12.2012 |
IDENTIFICATION DETAILS
|
Name : |
GLODYNE TECHNOSERVE LIMITED (w.e.f. 24.11.2008) |
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Formerly Known As : |
PARADYNE INFOTECH LIMITED |
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Registered Office : |
801, Balarama, Bandra Kurla Complex, Bandra (East), Mumbai –
400051, |
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Country : |
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Financials (as on) : |
31.03.2011 |
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Date of Incorporation : |
05.12.1997 |
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Com. Reg. No.: |
11-112281 |
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Capital
Investment / Paid-up Capital : |
Rs.262.952 Millions |
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CIN No.: [Company
Identification No.] |
L51100MH1997PLC112281 |
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Legal Form : |
Public Limited Liability Company. Company’s Shares are Listed on the Stock Exchange. |
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Line of Business : |
Providing Information Technology Services. |
RATING & COMMENTS
|
MIRA’s Rating : |
B (36) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 20950000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is a well established company having moderate track. There
appears delays in timely servicing of commercial paper programme on account
of liquidity constraints faced by the company. Trade relations are reported as fair. Business is active. Payment
terms are slow. The company can be considered for business dealings with great
caution. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces
of its past autarkic policies remain. Economic liberalization, including
industrial deregulation, privatization of state-owned enterprises, and reduced
controls on foreign trade and investment, began in the early 1990s and has
served to accelerate the country's growth, which has averaged more than 7% per
year since 1997. India's diverse economy encompasses traditional village farming,
modern agriculture, handicrafts, a wide range of modern industries, and a
multitude of services. Slightly more than half of the work force is in
agriculture, but services are the major source of economic growth, accounting
for more than half of India's output, with only one-third of its labor force.
India has capitalized on its large educated English-speaking population to
become a major exporter of information technology services and software
workers. In 2010, the Indian economy rebounded robustly from the global
financial crisis - in large part because of strong domestic demand - and growth
exceeded 8% year-on-year in real terms. However, India's economic growth in
2011 slowed because of persistently high inflation and interest rates and
little progress on economic reforms. High international crude prices have
exacerbated the government's fuel subsidy expenditures contributing to a higher
fiscal deficit, and a worsening current account deficit. Little economic reform
took place in 2011 largely due to corruption scandals that have slowed
legislative work. India's medium-term growth outlook is positive due to a young
population and corresponding low dependency ratio, healthy savings and
investment rates, and increasing integration into the global economy. India has
many long-term challenges that it has not yet fully addressed, including
widespread poverty, inadequate physical and social infrastructure, limited
non-agricultural employment opportunities, scarce access to quality basic and
higher education, and accommodating rural-to-urban migration.
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
D (Default) [Commercial Paper] |
|
Date |
August, 2012 |
|
Rating Agency Name |
ICRA |
|
Rating |
BBB+ (Withdrawn) [Non Convertible Debenture] |
|
Date |
August, 2012 |
Note:
Reason for Withdrawing Rating: The company has
not raised funds against the rated instrument.
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DECLINED
|
Contact No.: |
91-22-66963333 |
|
Date : |
30.11.2012 |
MANAGEMENT NON CO-OPERATIVE
LOCATIONS
|
Registered Office/ Branch Office : |
801, Balarama, Bandra Kurla Complex, Bandra (East), Mumbai –
400051, |
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E-Mail : |
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Website : |
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Corporate Office : |
C – 03, Ground Floor, Fortune 2000, Bandra Kurla Complex, Bandra
(East), Mumbai – 400051, Maharashtra, India |
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Tel. No.: |
91-22-66963333 |
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Fax No.: |
91-22-66963344 |
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E-Mail : |
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53-2476, Radheshyam, Gandhinagar, Bandra East, Mumbai – 400051, |
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Tech – Center Office : |
A-3, Unit No.215, Sector 1, Milennium Business Park, Mahape, Navi
Mumbai – 400709, Maharashtra, India |
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Tel No.: |
91-22-27781018 |
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Fax No.: |
91-22-27781019 |
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Email : |
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Branch Office : |
Located at: ·
Mumbai ·
Pune ·
·
Chennai ·
·
Patna ·
Lucknow ·
Noida / Delhi ·
Kolkata ·
Gadchiroli ·
Hyderabad ·
Ahmedabad ·
Chandigarh5 |
DIRECTORS
As on: 31.03.2011
|
Name : |
Mr. Annand Sarnaaik |
|
Designation : |
Chairman and Managing Director |
|
Address : |
C – 54, |
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Name : |
Mrs. Divvyani A. Sarnaaik |
|
Designation : |
Executive Director |
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Address : |
C – 54, |
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Name : |
Mr. Dhiren B. Kothary |
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Designation : |
Director |
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Name : |
Mr. Alok Sharma |
|
Designation : |
Director |
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|
Name : |
Mr. RSP Sinha |
|
Designation : |
Director |
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Name : |
Mr. Shantanu
Rooj |
|
Designation : |
Director –
Business Development |
KEY EXECUTIVES
|
Name : |
Mr. Amit Jaste |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2012
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
20180737 |
44.76 |
|
|
1390000 |
3.08 |
|
|
21570737 |
47.85 |
|
|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
21570737 |
47.85 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
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|
1194360 |
2.65 |
|
|
5966 |
0.01 |
|
|
2345323 |
5.20 |
|
|
3545649 |
7.86 |
|
|
|
|
|
|
9277211 |
20.58 |
|
|
|
|
|
|
5164818 |
11.46 |
|
|
4923361 |
10.92 |
|
|
599927 |
1.33 |
|
|
244175 |
0.54 |
|
|
355669 |
0.79 |
|
|
83 |
0.00 |
|
|
19965317 |
44.29 |
|
Total Public
shareholding (B) |
23510966 |
52.15 |
|
Total (A)+(B) |
45081703 |
100.00 |
|
(C) Shares held
by Custodians and against which Depository Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total
(A)+(B)+(C) |
45081703 |
100.00 |
Shareholding of securities (including shares, warrants,
convertible securities) of persons belonging to the category Promoter and
Promoter Group
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Annand Sarnaaik |
12467944 |
27.66 |
|
Divvyani A Sarnaaik |
7712793 |
17.11 |
|
Glodyne Global Private Limited |
1390000 |
3.08 |
|
Total |
21570737 |
47.85 |
Shareholding of securities (including shares, warrants, convertible
securities) of persons belonging to the category Public and holding more than
1% of the total number of shares
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Vanaja Sundar Iyer |
1230430 |
2.73 |
|
ACG Associated Capsules Private Limited |
1060999 |
2.35 |
|
Cerberus Partners L P |
1025000 |
2.27 |
|
Vanaja Sundar |
870667 |
1.93 |
|
Sicom Limited |
730000 |
1.62 |
|
Religare Finvest Limited |
857419 |
1.90 |
|
SI Investments and Broking Private Limited |
664170 |
1.47 |
|
Rinsel Technologies (India) Private
Limited |
513842 |
1.14 |
|
Total |
6952527 |
15.42 |
BUSINESS DETAILS
|
Line of Business : |
Providing Information Technology Services. |
GENERAL INFORMATION
|
Bankers : |
·
HDFC
Bank ·
Standard
Chartered Bank ·
Barclays
Bank PLC ·
Corporation
Bank ·
ICICI
Bank ·
State
Bank of India |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
Nilesh M. Kapadia and Company Chartered Accountants |
|
Address : |
Mumbai, |
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Associates/Subsidiaries : |
·
Glodyne Peoplepower Limited - India ·
Smaarftech Technologies Private
Limited - India ·
Glodyne Technoserve Inc. - U.S.A. ·
Glodyne Technoserve Singapore Pte.
Limited – Singapore [Refer Note B(14)] ·
Compulink USA Inc. - USA ·
Compulink Europe Limited - U.K. ·
Compulink Software Pte Limited -
Singapore ·
Glodyne Technoserve (East) Inc.-
U.S.A. (Subsidiary of Glodyne Technoserve Inc. - U.S.A ) ·
Front Office Technologies Inc.-
U.S.A. (Subsidiary of Glodyne Technoserve Inc. - U.S.A.) ·
DecisionOne Corporation (Subsidiary
of Glodyne Technoserve Inc. - U.S.A.) w.e.f. 1st July, 2010 |
|
|
|
|
Enterprises over which certain KMP exercise Significant influence |
·
Growdyne Techzone Services Limited ·
Glodyne Global Private Limited |
CAPITAL STRUCTURE
As on : 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
90000000 |
Equity Shares |
Rs.6/- each |
Rs.540.000 Millions |
|
8500000 |
Preference Shares |
Rs.6/- each |
Rs.51.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs.59100.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
43825280 |
Equity Shares |
Rs.6/- each |
Rs.262.952 Millions |
|
|
|
|
|
NOTE:
Of the above:
3391706 Equity Shares of Rs.10/- each were allotted as Bonus Shares by way of capitalisation of General Reserve and balance in Profit and Loss Account.
As on 15.09.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
90000000 |
Equity Shares |
Rs.6/- each |
Rs.540.000 Millions |
|
8500000 |
Preference Shares |
Rs.6/- each |
Rs.51.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs.59100.000
Millions |
Issued, Subscribed & Paid-up Capital : Rs. 270.490 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 |
262.952 |
225.133 |
111.092 |
|
|
2] Share Application Money |
0.408 |
0.000 |
0.000 |
|
|
3] Share Suspense Account |
0.000 |
27.796 |
0.000 |
|
|
4] Convertible Warrants |
108.000 |
0.000 |
0.000 |
|
|
5] Reserves & Surplus |
4867.835 |
2368.552 |
1333.618 |
|
|
6] Securities Premium Suspense Account |
0.000 |
240.133 |
0.000 |
|
|
7] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
5239.195 |
2861.614 |
1444.710 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1462.563 |
835.612 |
665.731 |
|
|
2] Unsecured Loans |
0.000 |
5.680 |
0.000 |
|
|
TOTAL BORROWING |
1462.563 |
841.292 |
665.731 |
|
|
DEFERRED TAX LIABILITIES |
162.037 |
111.224 |
54.176 |
|
|
|
|
|
|
|
|
TOTAL |
6863.795 |
3814.130 |
2164.617 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1153.825 |
897.353 |
344.657 |
|
|
Capital work-in-progress |
34.770 |
6.418 |
7.826 |
|
|
Intangible assets under capitalization |
14.584 |
20.904 |
0.000 |
|
|
INVESTMENT |
1515.485 |
445.060 |
362.855 |
|
|
DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
15.737
|
44.681 |
57.226 |
|
|
Sundry Debtors |
1816.057
|
1562.541 |
1096.491 |
|
|
Cash & Bank Balances |
350.173
|
391.533 |
10.256 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
2723.563
|
979.939 |
600.958 |
|
Total
Current Assets |
4905.530
|
2978.694 |
1764.931 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
175.461 |
163.508 |
100.465 |
|
|
Other Current Liabilities |
71.969
|
46.095 |
8.421 |
|
|
Provisions |
512.969
|
324.696 |
206.766 |
|
Total
Current Liabilities |
760.399
|
534.299 |
315.652 |
|
|
Net Current Assets |
4145.131
|
2444.395 |
1449.279 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
6863.795 |
3814.130 |
2164.617 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations |
9820.745 |
7073.076 |
4605.832 |
|
|
|
Other Income |
67.438 |
(71.946) |
101.879 |
|
|
|
TOTAL (A) |
9888.183 |
7001.130 |
4707.711 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Operating and Other Expenses |
7445.332 |
5462.420 |
3667.661 |
|
|
|
TOTAL (B) |
7445.332 |
5462.420 |
3667.661 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2442.851 |
1538.710 |
1040.050 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES (D) |
205.466 |
128.954 |
67.020 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2237.385 |
1409.756 |
973.030 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
234.884 |
164.220 |
55.090 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
2002.501 |
1245.536 |
917.940 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
560.885 |
277.296 |
180.448 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
1441.616 |
968.240 |
737.492 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1785.374 |
1140.475 |
531.780 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
2868.304 |
1785.374 |
1140.475 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Software Services |
265.029 |
102.942 |
81.881 |
|
|
|
Technology Infrastructure Management Services |
1257.279 |
1017.099 |
789.051 |
|
|
TOTAL EARNINGS |
1522.308 |
1120.041 |
870.932 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
33.38 |
23.78 |
33.16 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
31.03.2012 |
30.06.2012 |
30.09.2012 |
|
|
Unaudited |
Unaudited |
Unaudited |
Unaudited |
Unaudited |
Unaudited |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
5th
Quarter |
6th
Quarter |
|
Net Sales |
3439.840 |
3919.790 |
3988.960 |
4227.020 |
4149.240 |
3437.440 |
|
Total Expenditure |
2553.470 |
2908.120 |
2957.810 |
3128.840 |
3094.180 |
3410.630 |
|
PBIDT (Excl OI) |
886.370 |
1011.670 |
1031.150 |
1098.180 |
1055.060 |
26.810 |
|
Other Income |
30.460 |
266.830 |
278.780 |
(31.280) |
392.900 |
(191.040) |
|
Operating Profit |
916.830 |
1278.500 |
1309.930 |
1066.900 |
1447.960 |
(164.230) |
|
Interest |
49.900 |
67.810 |
100.760 |
169.630 |
141.420 |
153.380 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
866.930 |
1210.690 |
1209.170 |
897.270 |
1306.540 |
(317.610) |
|
Depreciation |
78.890 |
85.070 |
122.820 |
127.470 |
160.620 |
177.080 |
|
Profit Before Tax |
788.040 |
1125.620 |
1086.350 |
769.800 |
1145.920 |
(494.690) |
|
Tax |
255.720 |
378.200 |
334.940 |
212.980 |
385.570 |
0.000 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
532.320 |
747.420 |
751.410 |
556.820 |
760.350 |
(494.690) |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
532.320 |
747.420 |
751.410 |
556.820 |
760.350 |
(494.690) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
14.57 |
13.82 |
15.67
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
20.39 |
17.60 |
19.93
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
33.05 |
32.13 |
43.51
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.38 |
0.44 |
0.64
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.42 |
0.48 |
0.68
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
6.45 |
5.57 |
5.59
|
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITORS
DETAILS:
|
Particulars |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
(Rs. In Millions) |
||
|
- Due to Micro and Small Enterprises |
0.273 |
0.000 |
0.008 |
|
- Others |
175.188 |
163.508 |
100.457 |
|
Total |
175.461 |
163.508 |
100.465 |
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of
Establishment |
Yes |
|
2] |
Locality of
the firm |
Yes |
|
3] |
Constitutions
of the firm |
Yes |
|
4] |
Premises
details |
No |
|
5] |
Type of
Business |
Yes |
|
6] |
Line of
Business |
Yes |
|
7] |
Promoter's
background |
No |
|
8] |
No. of
employees |
No |
|
9] |
Name of
person contacted |
No |
|
10] |
Designation of
contact person |
No |
|
11] |
Turnover of
firm for last three years |
Yes |
|
12] |
Profitability
for last three years |
Yes |
|
13] |
Reasons for
variation <> 20% |
------ |
|
14] |
Estimation
for coming financial year |
No |
|
15] |
Capital in
the business |
Yes |
|
16] |
Details of
sister concerns |
Yes |
|
17] |
Major
suppliers |
No |
|
18] |
Major
customers |
No |
|
19] |
Payments
terms |
No |
|
20] |
Export /
Import details (if applicable) |
No |
|
21] |
Market
information |
------ |
|
22] |
Litigations that
the firm / promoter involved in |
------ |
|
23] |
Banking
Details |
Yes |
|
24] |
Banking
facility details |
Yes |
|
25] |
Conduct of
the banking account |
------ |
|
26] |
Buyer visit
details |
------ |
|
27] |
Financials,
if provided |
Yes |
|
28] |
Incorporation
details, if applicable |
Yes |
|
29] |
Last accounts
filed at ROC |
No |
|
30] |
Major
Shareholders, if available |
Yes |
|
31] |
Date of Birth
of Proprietor/Partner/Director, if available |
No |
|
32] |
PAN of Proprietor/Partner/Director,
if available |
No |
|
33] |
Voter ID No
of Proprietor/Partner/Director, if available |
No |
|
34] |
External
Agency Rating, if available |
Yes |
REVIEW OF
PERFORMANCE:
On a Consolidated basis, the Company has recorded a total income of
Rs.17514.579 millions for the financial year ended March 31, 2011, an increase
of 133% compared to last year’s figure of Rs. 7429.427 millions. The Earnings
before Interest, Tax, Depreciation and Adjustments (EBITDA) stood at Rs.
3162.520 millions as compared to last years Rs. 1710.703 millions, recording a
growth of 85%. The Company’s profit after tax stood at Rs.1741.155 millions as
compared to previous year’s Rs.1000.005 millions, recording a growth of 74%.
the Consolidated Results of last year included 9 months’ financials of Decision
One Corporation, U.S.A., a company acquired by the company in the year and
therefore may not be strictly comparable with previous year consolidated results.
FINANCE AND
CAPITAL STRUCTURE:
A) STRATEGIC
ACQUISITIONS / MERGERS:
OVERSEAS
ACQUISITION:
The Company continued on its growth path through a healthy mix of
organic and inorganic route. As a part of this strategy and in a major leap
towards expanding its presence in one of the largest IMS market in the world
i.e. US, the Company during the year acquired Decision One Corporation.
Subsequent to the year end, the Board of Directors has approved the
appointment of Mr. Bryan Sanderson, Dr. Mohan Kaul and Mr. Samar Ray as
Additional Directors on the Board. Shareholders attention is drawn to the
relevant items appearing in the Notice of the A.G.M. and the explanatory
statement, seeking the approval of the members in this matter.
EMPLOYEES STOCK OPTION
SCHEME
During the year and pursuant to the approval of the shareholders at
their meeting held on December 24, 2010, the Company has formulated Glodyne
Employee Stock Option Scheme 2010. The Stock Options under this Scheme and
earlier ESOS Scheme ESOS 2006 were also increased proportionately to give
effect to the split of the face value of the equity share of the Company from
Rs.10/- each to Rs.6/- each. In accordance with the Employee Stock Option
Scheme, 2006 and Glodyne Employees Stock Option Scheme, 2010 of the Company, a
total number of 60,000 Stock Options (post subdivision no.) and 11,80,980 Stock
Options (post subdivision no.) respectively were granted during the year by the
Compensation Committee. The particulars required the SEBI (Employee Stock
Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 are annexed
to and form part of this report. No employee was issued stock option during the
year equal to or exceeding 1% of the issued capital of the Company at the time
of grant. The issuance of equity shares pursuant to exercise of Options does
not affect the profit and loss account of the Company, as the exercise is made
at the market price as per SEBI Guidelines.
AWARDS AND
ACCOLADES:
During the year, the Company was awarded with the following Awards:
·
Maharashtra IT 2010 award
·
Best Under a Billion award for the year by Forbes
Asia
·
Deloitte Technology Fast 500 Asia Pac and Fast 50
India programs
·
Super ranked 4th by Business Standard
·
Ranked 8th by India Inc amongst the best performing
midsized companies in the year
MANAGEMENT
DISCUSSION AND ANALYSIS
INDUSTRY OVERVIEW
AND GLODYNE BUSINESSES
Today, Glodyne’ businesses are diverse in terms of the geographies and
the customer set served by the company. However, some common themes run through
the businesses which are - long term contracts, predictable revenue streams,
good profitability and an opportunity to expand presence within the existing
customer set.
Over the past several years, the company’s vision of becoming globally
one of the largest technology infrastructure managed service (IMS) provider is
rapidly taking shape. Their clients are increasingly providing us with not just
technology management but also business process ownership so they can focus on
their core business while we create technology driven infrastructure platforms
for them. This has increasingly allowed us to scale up the value chain, drive
higher margins and fuel growth in the organization.
Glodyne India business was driven by their presence in sectors that are
rapidly expanding spends namely - banking (financial inclusion), e-governance
and education. Each of these sectors witnessed sharp increases in spending by
the customers. Our strongly developing legacy and the body of work we have
built over the past several years has positioned us well to take advantage of
the expansion in the marketplace.
Here is a synopsis of each of the businesses and an analysis of the
market context under which we operate.
BANKING -
FINANCIAL INCLUSION
MARKET
ENVIRONMENT:
Financial inclusion is the delivery of financial services at affordable
costs to sections of disadvantaged and low income segments of society. It is
argued that as banking services are in the nature of public good, it is
essential that availability of banking and payment services to the entire
population without discrimination is the prime objective of public policy.
Financial inclusion is now a common objective for many central banks among the
developing nations.
The Reserve Bank of India(RBI) set up a commission (Khan Commission) in
2004 to look into financial inclusion and the recommendations of the commission
were incorporated into the mid-term review of the policy (In the report RBI
exhorted the banks with a view of achieving greater financial inclusion to make
available a basic “no-frills” banking account.)
RBI wants to connect every Indian to the country’s banking system. Its
vision for 2020 is to open nearly 600 million new customers’ accounts and
service them through a variety of channels by leveraging IT. However,
illiteracy and the low income savings and lack of bank branches in rural areas
continue to be a road block to financial inclusion in many states. Consider the
following statistics per RBI’s statements in public record:
1. 60% of the country’s population does not have bank accounts
2. 90% of the country’s population does not get loans
3. 99.4% do not have any kind of non-life insurance cover while 90% do
not have any life insurance cover
RBI is concerned about these issues because lack of financial inclusion
results in lost growth opportunities, inadequate utilization of resources,
exclusion of people from mainstream society and loss of control on cash arising
from government programs, thereby losing an important lever on corruption in the
system
GLODYNE VIEW:
They believe at Glodyne that the financial inclusion space is currently
undergoing significant changes- and is in a
transient stage. Several models are currently being experimented upon
with varying degrees of success. In our view, the true test of the model will
be based on:
1. How much value it adds to the beneficiaries of financial inclusion
2. How much value it adds to the banking system
3. How economically efficiently is the model executed
Glodyne’ financial inclusion service for our banking partners is
designed to address the precise needs articulated by the RBI and the banks. The
program extends beyond just opening “no frills” accounts for individuals and
facilitates business transactions to meet the broader objectives of financial
inclusion as outlined by the governing bodies
How the program achieves this is by making use of software and
technology, smart linking of the financial inclusion program with other
government run programs and creating innovative performance management programs
to align the people with the broader business and social objectives
Their services have been very well received by the banking institutions
and are being embraced in different parts of the country.
INFRASTRUCTURE
MANAGED SERVICES
MARKET
ENVIRONMENT:
Several studies have indicated the large potential and footprint of
infrastructure managed services. Per Gartner, the current global market size of
IMS is estimated to be $510 billion and is expected to grow at a CAGR of 4
percent over the next four years. Out of this, 40 percent of the market is
outsourced. On the path to recovery, many medium and large companies are
increasing their outsourcing projects to reduce the cost and to focus on their
core areas, which make the infrastructure management services industry to get a
growth bump. The Indian domestic market too is slated to grow to a market size
of $1.4 billion growing at a CAGR of 44 percent, (according to Zinnov study on
infrastructure management services.)- 43 percent of which comes from the
Banking Financial Services Insurance (BFSI) market.
According to a NASSCOM report, up to 75 percent of all infrastructure
management roles could be outsourced globally, which would create a $26 billion
to $28 billion revenue potential by 2013. The Indian companies could capture
approximately 50 percent of this revenue. Glodyne View: With the acquisition of
Decision One, Glodyne has gained a strong global footprint in Infrastructure
Managed Services. The business combination provides
Glodyne with several opportunities:
1. Access to the North America technology services market
2. Ability to expand services portfolio in this market
3. Access to service delivery platforms and know-how
4. Ability to leverage these capabilities on a global basis
5. Ability to manage costs utilizing offshore platforms
This year, Glodyne initiated efforts to take advantage of these
opportunities by coordinating a global approach to sales, marketing and
delivery across the two organizations. Their delivery platforms span the three
principle delivery channels for infrastructure managed services: onsite,
advanced exchange and depot repair, and remote services. The infrastructure
managed services market is experiencing several interesting dynamics. At the
top, North American Fortune 100 customers are supported by large technology
organizations such as Decision One and its partners. Glodyne, with the
acquisition of Decision One, gains immediate access to these customers and
channels. While consolidation and in-sourcing continue among certain segments
of our client base, notably among technology providers, managed service
delivery channels continue to grow. This market segment, coupled with Glodyne
Decision One’s focus on refining and expanding its delivery model, will yield
substantial market share and profitability, particularly as the delivery
platforms become global and more efficient.
Glodyne has reorganized the IMS business to address the rapidly evolving
set of market opportunities. They have created organizational focus around
specific segments: traditional — working with large technology providers for
service repair; managed services — working with clients directly and indirectly
to provide a broad spectrum of IT managed services; and, emerging businesses —
to address new and upcoming areas of opportunity.
a. Refinement of their global planning and performance management
processes and systems that will provide detailed view on financial and
operational metrics in the organization
b. Enhancement of their global incentive and long term pay management
system to extend the performance pay
platform to the global organization for better executive and
organizational alignment to corporate objectives
c. Adoption of the Whizible project management platform to manage all large
projects undertaken by the corporation globally and provide the same world
class project management services internally as we do externally to their
clients
d. Increased R and D investments to ensure our software and IPR
platforms provide value to their clients and result in significant
cost/efficiency benefits
e. Launch of leadership development and people development initiatives
to develop pipeline of leaders in the organization
OUTLOOK
During the financial
year ending March 2011, we grew our revenues by 133% to T 1750 Crores
and profit after tax by 74% to T 174.12 Crores. The management is
focused to build the company into a leader in the global technology IMS market.
With the iMS industry opening up huge opportunity for Indian companies, Glodyne
is focused on capitalizing on the same by providing high quality services to
global clients through a robust onsite- remote delivery model. The company
would continue to grow its client base and client share with special focus on
the DecisionOne clients as they have an appetite for IMS off shoring and for
geographic de-nsking. The company has built a strong execution base in the
Indian market and it envisions huge market creating opportunities in lndia in the
government, banking and education sectors. The education managed services,
e-governance managed services, financial inclusion services, and onsite- remote
IMS services will be key growth driver for the company in the future. Keeping
in view the potentials of the projects in hand, credentials in the domestic
market and the company's expertise in the focused area, the outlook remains to
be positive.
INTERNAL CONTROLS AND ITS ADEQUACY
The Company had
identified the key risks and control process to mitigate the same. The company
has been partnering with various clients for implementing large projects in the
country. The company has completed the acquisition of DecisionOne Corporation
in the year. A dedicated integration program with timelines has been defined
with the help of one of the big 4 to ensure the objectives are met in timely
manner. To ensure support the growth and expanded services, the internal
organization re-alignment program has been initiated. In addition, a strong
leadz[ship alignment program which also includes identification and grooming of
future Glodyne leaders to support our growth was also conducted.
The Company is
continuously upgrading its internal control systems by measuring state of
controls at various locations. Controls in the management system have been
strengthened with help of review conducted by the formation of corporate audit
team. The team ensures regular reviewing of financial and risk management
policies, significant audit findings, the adequacy of internal controls and compliance
with the accounting standards.
To celebrate the
'Glodyne Spirit', Glofest which is celebrated every year where we honour the
performance, felicitate the achievements and share the celebration with the
entire Glodyne family was held in Jan 2011. The awards presented on the event
night included, Superstar, Rising Star, Persistent, Tenacious, and Best Team
awards. The celebration invitation was also extended to Glodyne partners and
alumni members. The annual Glodyne Cricket league (GCL) a pan lndia affair was
conducted with great success.
The Company also
started a key employee support program to facilitate them with work-life
balance. There are counselors who support the ones who need any kind of support
through online, over telephone or one-one medium. For the female team members
there were special scheme launched like leadership development, support group
for expecting mothers, generating health awareness, etc. Also, Glodyne Care
Foundation launched its flagship program 'Nanhe Kadam', which is a unique
employee engagement program in the area of children's education and health.
Glodyne places a
huge emphasis on fostering a culture of teamwork and intends to allow people
within the Company to realize human potential. The company has built a unique work
environment that brings together talent from multiple backgrounds and skills
sets to work together and feel a sense of belonging to the team. The success of
this can be judged from the low level of attrition that the company has been
able to maintain and the stability in its senior and middle management teams.
STANDALONE
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30.06.2012
(Rs.
In Millions)
|
Particulars |
Quarter Ended |
||
|
Unaudited |
Audited |
Unaudited
|
|
|
30.06.2012 |
31.03.2012 |
30.06.2011 |
|
|
|
|
|
|
|
Net sales/ Income from Operations |
41,492.40 |
42,270.16 |
3439.839 |
|
|
|
|
|
|
Total |
41,492.40 |
42,270.16 |
3439.839 |
|
|
|
|
|
|
Expenditure
|
|
|
|
|
Operating Expenses |
27,326.45 |
27,705.17 |
2254.470 |
|
Employees cost |
3,615.33 |
3,583.21 |
298.998 |
|
Depreciation |
1,606.24 |
1,274.71 |
78.892 |
|
|
|
|
|
|
Total |
32,548.02 |
32,563.09 |
2632.360 |
|
|
|
|
|
|
Profit
from Operations before Other Income, Interest and Exceptional Items |
8,944.38 |
9,707.07 |
807.479 |
|
|
|
|
|
|
Other Income |
3,929.04 |
(312.76) |
30.455 |
|
|
|
|
|
|
Profit before Interests and Exceptional
Items |
12,873.42 |
9,394.31 |
837.934 |
|
|
|
|
|
|
Interests |
1,414.23 |
1,696.26 |
49.899 |
|
|
|
|
|
|
Profit after Interests and Exceptional
Items |
11,459.19 |
7,698.05 |
788.035 |
|
|
|
|
|
|
Exceptional items |
- |
- |
0.000 |
|
|
|
|
|
|
Profit / Loss from Ordinary Activities before tax |
11,459.19 |
7,698.05 |
788.035 |
|
|
|
|
|
|
Tax expense |
3,855.70 |
2,129.82 |
255.720 |
|
|
|
|
|
|
Net
Profit/ Loss from Ordinary Activities after taxes |
7,603.49 |
5,568.23 |
532.315 |
|
|
|
|
|
|
Exceptional items (net of tax expense) |
- |
- |
-- |
|
|
|
|
|
|
Net Profit/ Loss
for the period |
7,603.49 |
5,568.23 |
532.315 |
|
|
|
|
|
|
Paid-up equity share capital (Face Value of Rs.10 each.) |
2,703.08 |
2,699.59 |
263.060 |
|
|
|
|
|
|
Reserve excluding Revaluation Reserves as per balance sheet of previous accounting year |
|
|
|
|
|
|
|
|
|
Earnings Per
Share (EPS) |
|
|
|
|
- Basic EPS before
Extraordinary items |
16.88 |
12.60 |
12.14 |
|
- Diluted EPS before
Extraordinary items |
14.27 |
10.13 |
11.30 |
|
|
|
|
|
|
- Basic EPS after Extraordinary
items |
16.88 |
12.60 |
12.14 |
|
- Diluted EPS after
Extraordinary items |
14.27 |
10.13 |
11.30 |
|
Particulars |
3 months ended |
Preceding 3
months ended |
Corresponding 3
months ended in the previous year |
Year to date
figures for current period ended |
Previous year
ended |
|
Quarter |
Quarter |
Quarter |
Year Ended |
Year Ended |
|
|
30.06.2012 |
31.03.2012 |
30.06.2011 |
30.06.2012 |
31.03. 2012 |
|
|
|
Unaudited |
Audited |
Unaudited |
Unaudited |
Audited |
|
PARTICULARS OF |
|
|
|
|
|
|
SHAREHOLDING |
|
|
|
|
|
|
Public shareholding |
|
|
|
|
|
|
- Number of shares |
19,111,570 |
19,203,457 |
1,93,60,597 |
19,111,570 |
19,203,457 |
|
- Percentage of shareholding |
42.42% |
42.68% |
44.16% |
42.42% |
42.68% |
|
Promoters and Promoter Group Shareholding ** |
|
|
|
|
|
|
a) Pledged / |
|
|
|
|
|
|
Encumbered |
|
|
|
|
|
|
- Number of shares |
20,886,375 |
21,659,551 |
1,79,71,265 |
20,886,375 |
21,659,551 |
|
- Percentage of shares (as a % of the total shareholding of promoter
and promoter group) |
80.52% |
83.99% |
73.40% |
80.52% |
83.99% |
|
- Percentage of shares (as a % of the total share capital of the
company) |
46.36% |
48.14% |
40.99% |
46.36% |
48.14% |
|
b) Non - encumbered |
|
|
|
|
|
|
- Number of shares |
5,053,378 |
4,130,202 |
65,11,488 |
5,053,378 |
4,130,202 |
|
- Percentage of shares (as a % of the total shareholding of the
Promoter and Promoter group) |
19.48% |
16.01% |
26.60% |
19.48% |
16.01% |
|
- Percentage of shares (as a % of the total share capital of the
company) |
11.22% |
9.18% |
14.85% |
11.22% |
9.18% |
|
Particulars |
3 months ended |
|
INVESTOR
COMPLAINTS |
30 Jun, 2012 |
|
Pending at the beginning of the quarter |
Nil |
|
Received during the quarter |
3 |
|
Disposed of during the quarter |
3 |
|
Remaining unresolved at the end of the quarter |
Nil |
Notes:
1. The above
results were reviewed by the Audit Committee at their meeting held on August
13, 2012 and adopted by the Board of Directors at its meeting held the same day
on August 13, 2012. The above results have been reviewed by the Statutory
Auditors of the Company.
2. Other Income
(consolidated) includes Foreign Exchange gain of Rs. 349.200 millions for the
year ended June 30, 2012.
3. During the
Quarter, pursuant to the allotment of 58,113 equity shares of Rs. 6/- each made
under the ESOS Scheme 2006 of the Company, the paid up equity share capital of
the Company has increased from 4,49,93,210 equity shares of Rs. 6/- each to
4,50,51,323 equity shares of Rs. 6/- each. During the quarter M/s. Glodyne
Global Private Limited, a promoter group Company has acquired 2,50,000 equity
shares in normal market segment under SEBI (Substantial Acquisition of Shares
and Takeovers) Regulations, 2011.
4. The accounts
have been prepared in accordance with the accepted Accounting standards issued
by The Institute of Chartered Accountants of India. Figures have been
regrouped/reclassified, wherever necessary.
5. The Company has
only one reportable segment i.e. Technology IMS
6. During the
quarter, 3 complaints were received from investors which were resolved, no
complaints were pending at the beginning and at the end of the quarter.
FIXED ASSETS:
v Tangible
Assets
·
Lease Hold Land
·
Lease Hold Premises
·
Leasehold Improvments
·
Office Premises
·
Office Equipments
·
Elecrical Installation
·
Furniture and Fixture
·
Vehicles
·
Computer Systems
·
Plant and Machineries
·
Books
v Intangible
Assets
·
Patents and Copyrights
·
Softwares
·
Technical Know How
WEBSITE DETAILS:
PROFILE:
Subject is an IT Services company, headquartered in
They have been able to make a mark in the IT Services domain with our quality
service delivery and customer first approach. Their proven combination of
onsite- remote delivery model helps us to synchronize seamless and
cost-effective solutions with assured quality to their clients. At subject they
strive constantly to deliver greater tangible business benefits to their
clients.
At subject, they follow the best business practices that enable companies to operate
more efficiently, have better ROI and help them focus on their core business.
They think beyond the basic ‘cost arbitrage’ benefit for their clients. Their
technologists and analysts find solution to the most complex of business logic
and help maintain competitive advantage for their clients by transforming
concept to reality.
The company has a highly experienced leadership team which is steering the
organization to newer heights. The company has ISO 9001:2000, ISO 27001 and
CMMi certification.
At subject, they believe fostering strategic alliances and
the synergies they bring to their business. Company has a strong alliance
program with technology market leaders in IT Products and Services who
complement their expertise in Technology IMS outsourcing and projects business.
CHAIRMAN’S PROFILE:
Mr. Annand Sarnaaik
Mr. Annand Sarnaaik is the Chairman and Managing Director
and the founder promoter of Company. Dynamic, enthusiastic, gifted with strong
business acumen, and having a vision to take the business to new heights of
excellence, he has steered company to become a strong player in the IT Services
space.
Being the Chief Executive at company, he shoulders the responsibilities of
overall management of the Company and has christened the values and standards
of conduct at company.
Under his able leadership the company is on the path to
become a global force in the Infrastructure Management Services Space. His
focus is on fostering innovation, leadership, teamwork and work values within
the organization.
Mr. Sarnaaik strongly believes that Customers, the talent
force at company, the alliance partners and shareholders are the pillars on
which the edifice of any organization is based. He also believes that in
addition to the responsibility an organization owes to its stakeholders, it has
also to cherish the social values and contribute to the growth of the society
in which the organization grows. Annand began his career in 1990 with HCL-HP
Limited where he experienced the changing face of IT and recognized the
opportunities in the sector. With a desire to create a world class IT
organization, he started Glodyne in the year 1997.
Annand holds a Bachelor of Engineering in Electronics and
Telecommunication and MBA from Jamnalal Bajaj Institute of Management Sciences.
Annand has been conferred with the “Udyog Rattan Award” by The Institute of
Economic Studies,
BOARD OF DIRECTORS:
Mr. Annand Sarnaaik :
Chairman and Managing Director
The founder promoter of company, Annand has led the company
since its inception. The fact that company, which was a small start up venture,
is today an acknowledged player in the IT services sector is ample testimony of
his vision, dynamism and leadership skills. He plays a key role in defining the
company strategy and in using technology and innovation continuously to achieve
the company’s vision. His focus in on fostering innovation, leadership,
teamwork and work values within the organization. Annand is a BE (Electronics)
and MBA from Jamnalal Bajaj Institute of Management. He has overall experience
of more than 2 decades in the field of IT. He is recipient of the Udyog Rattan
Award instituted by IES,
Mrs. Divvyani A. Sarnaaik :
Executive Director
Divvyani is the co-founder of company, and she oversees all
the operating business units of the company. Divvyani is responsible for the
overall account delivery management including people and operations management.
At Glodyne, her focus is on increasing competitiveness, improving customer
experience, improving employee engagement and increasing the depth of Glodyne’s
Technology Managed Services offerings. Divvyani has an overall experience of
more than 18 years in the areas of Information Technology, Operations and
Finance. She is an MBA in Finance from
Mr. Dhiren B. Kothary :
Director
Mr. Dhiren B. Kothary is the Director in Quest Profin Advisors Private Limited.
The gamuts of services offered by Quest are corporate advisory, capital market
and project finance. Dhiren is the principal partner in M/s D. Kothary and
Company. Dhiren’s experience spans close to two decades in the field of
taxation, financial and corporate advisory services across sectors namely
Trading, Manufacturing and Services. Dhiren is a Chartered Accountant.
Mr. Krishnamurthy Yemmanur :
Director
Mr. Krishnamurthy Yemmanur served Reserve Bank of
He took active part in deployment of credit for rural area and flow of credit
to priority sectors and was also convener of SLIC Meetings (State Level Inter
Institutional Committee) chaired by the Principle Secretary, Industries and
Commerce, Govt. of A.P. He is a B.Com, C.A.I.I.B.
Mr.
Ved Prakash Arya :
Director
Ved Prakash Arya has serves as an Independent Director on
the Board. He is the founder of Milestone Capital Advisors, an Asset Management
Company which invests in private equity, real estate development and real
estate yield driven projects in
Mr.
Avtar Saini :
Director
Avtar is the former director for Intel's
MANAGEMENT
TEAM:
Mr. Shantanu Rooj:
Director - Business Development]
At Subject, Shantanu is responsible for the business
development initiatives. Shantanu drives the various go-to-market strategies
and he also oversees the strategic business objectives including identifying
new opportunities, development and monetization of market-led services,
customer relationship management and sales strategy. Shantanu has an experience
of more than 15 years in the field of IT Services. A CBSE all
Mr. Binod K. Mishra :
Senior Vice President – Projects
At subject, Binod is responsible for various project Initiatives.
Mr. Mishra brings 30 years of rich experience in handling Operations,
Maintenance, Systems Planning, Designing and Implementation. He was ‘Head-
Integrated Customer Operations' (Enterprise Business) at Reliance
Communication. Mr. Mishra is B.E in Electronics and Telecommunications and has
specialized in Computer Science from BIT. He has also participated in
Management Development Program conducted by IIM,
TECHNOLOGY MANAGED SERVICES
Subject is a Technology Managed
Services company servicing domestic and global clients by providing innovative
business solutions, leveraging technology.
IT operations are moving centre-stage and in many
organizations the transition is already complete. Dependency of businesses on
technology to become competitive has made it a necessary investment rather than
a cost to keep clean back offices. At the same time, a strong technology focus
for last three decades has led to a increasingly complex IT systems with host
of business applications that if not maintained can lead to operational
bottlenecks. Complex IT systems demand more resources to maintain existing
service levels and thus become less responsive to the business. Glodyne
provides quality Technology Infrastructure Management Services (Technology IMS)
to achieve a more efficient, agile and cost-effective IT infrastructure.
A) TECHNOLOGY INFRASTRUCTURE MANAGED SERVICES (TECHNOLOGY
IMS)
Technology IMS division’s strategy is to enable
organizations to rebalance IT investment portfolios, run their businesses more
cost effectively and free resources for business growth. The offerings cover
the entire technology business processes management services. Company’s
Technology IMS Services provides the right tools and the right structure and
processes, enabling IT to move up the management maturity scale and deliver
more and more value. Offerings in this SBU cover the entire business processes
management services including:
·
Server Management Services
·
Networks Management Services
·
Application Management Services
·
Database Management Services
·
Desktop Management Services
·
Security and Security Management
Services
This service are offered on a robust hybrid delivery model
of Remote and Onsite Services delivery.
TECHNOLOGY
IMS - DO MORE WITH LESS
The Remote management services allow 24x7 remote monitoring,
management and fault diagnosis/correction for networked systems such as
switches, routers, security appliances, servers and desktops. comoany delivers
its infrastructure management services through a
COMPANY’S
REMOTE IMS ENABLES TO:
·
Address the labor cost which is the
largest addressable cost in infrastructure management.
·
Use lean techniques resulting in
significant productivity improvements.
·
Simplification of IT management and
governance tools.
·
Increased transparency and proactive
reporting.
B)
TECHNOLOGY APPLICATION MANAGED SERVICES (TECHNOLOGY AMS)
Subject’s Application Managed Services relieve the customer
of the burden of capital investment in IT Infrastructure. Technology AMS
provides the entire IT Infrastructure to the customer as a completely managed
service thereby introducing the concept of ‘benefit delivery’. Company’s AMS
provides shared infrastructure resources to the customer on a pay-by-use model
which brings in the obvious benefits like shielding from Infrastructure
obsolescence, continuous application upgrades, centralized infrastructure management
and a rapid implementation methodology. Technology AMS converts the high
Capital Investment in IT Infrastructure into a need based revenue expense.
The centralized deployment of Infrastructure allows company
to apportion its capital expense across several customers and bringing in the
benefits of scale. The business model brings in a better customer satisfaction
and a long term commitment thereby ensuring a predictable, steady and
continuous revenue stream for the organisation.
Company has been building its offerings in the Technology
AMS for the Human Resource Management domain. In the year 2009 the Company
launched its services –”Peoplepower” to cater to the untapped desire of
millions of small and mid-sized companies to own the best-of-breed HR Services
for their employees.
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 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. 54.53 |
|
|
1 |
Rs. 87.48 |
|
Euro |
1 |
Rs. 70.89 |
INFORMATION DETAILS
|
Information
Gathered by : |
PJA |
|
|
|
|
Report Prepared
by : |
MRI |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
|
36 |
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.