MIRA INFORM REPORT

 

 

Report Date :

27.12.2012

 

IDENTIFICATION DETAILS

 

Name :

THIRDWARE SOLUTION LIMITED

 

 

Registered Office :

168, SDF VI, A-Wing, SEEPZ, Andheri [East], Mumbai – 400096, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

20.06.1995

 

 

Com. Reg. No.:

11-089765

 

 

Capital Investment / Paid-up Capital :

Rs.47.008 Millions

 

 

CIN No.:

[Company Identification No.]

U72900MH1995PLC089765

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMT1039E

 

 

PAN No.:

[Permanent Account No.]

AABCT0556A

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

The company is engaged in implementation and consulting services of software based on ERP and Business Intelligence.

 

 

No. of Employees :

Information declined by the management

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (50)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 2900000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having satisfactory track record. Latest financials 2011-12 are missing from the government departments. From the available financials of 2011 it seems that there appears some dip in the profitability of the company. However, networth appears to be satisfactory. 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.

 

 

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

 

 

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

 

Management Non Co-operative

(91-22-42393939)

 

LOCATIONS

 

Registered Office :

168, SDF VI, A-Wing, SEEPZ, Andheri [East], Mumbai – 400096, Maharashtra, India

Tel. No.:

91-22-42393939 / 28292225 / 28292226 / 28292303 / 28292302

Fax No.:

91-22-28292102

E-Mail :

haritheertham.iyer@tspl.com

rattan.shetty@tspl.com

Website :

http://www.tspl.com

 

 

Local Sales Office :

Level 4, Dynasty, A Wing, Andheri-Kurla Road, Mumbai – 400069, Maharashtra, India 

Tel. No.:

91-22-42393939 / 54

Fax No.:

91-22-42393955

 

 

DIRECTORS

 

As on 17.09.2012

 

Name :

Mr. Mohan Shamkant Kirane

Designation :

Managing director

Address :

A-1603, A Wing, Avalon, Hiranandani Gardens, Powai, Mumbai – 400076, Maharashtra, India

Date of Birth/Age :

14.07.1963

Date of Appointment :

10.10.1997

DIN No.:

00149893

 

 

Name :

Mr. Pradeep Jayan Erinjery

Designation :

Whole-time director

Address :

B-1502, Eternia, Hiranandani Gardens, Powai, Mumbai – 400076, Maharashtra, India    

Date of Birth/Age :

09.10.1966

Date of Appointment :

20.06.1995

DIN No.:

00149963

 

 

Name :

Mr. Ulhas Digambar Telang

Designation :

Whole-time director

Address :

A3/52, Mahindra Gardens, S. V. Road, Goregaon (West), Mumbai – 400062, Maharashtra, India  

Date of Birth/Age :

03.10.1952

Date of Appointment :

01.07.2006

DIN No.:

00598648

 

 

Name :

Mr. Bhavesh Shashikant Shah

Designation :

Director

Address :

802, LA Sarena Building, JN of Dadabhai X Road and J.P. Road, Andheri (West), Mumbai – 400058, Maharashtra, India 

Date of Birth/Age :

03.06.1969

Date of Appointment :

01.08.2012

DIN No.:

05354411

 

 

Name :

Mr. Joginder Pal Singh

Designation :

Alternate director

Address :

No.6A, Waters Edge, 5th Drive, Sear Clif Conclave, Akkarai, Chennai – 600119, Tamil Nadu, India

Date of Birth/Age :

06.01.1954

Date of Appointment :

14.08.2009

DIN No.:

02395452

 

 

Name :

Mr. Vijay Parameswaran Sankaran

Designation :

Nominee director

Address :

1707, Harding Road, Ann Arbor MI 48104

Date of Birth/Age :

01.10.1973

Date of Appointment :

20.04.2012

DIN No.:

06421697

 

 

KEY EXECUTIVES

 

Name :

Mr. Haritheertham Natarajan Iyer

Designation :

Secretary

Date of Appointment :

01.07.2008

PAN No.:

AAPPI3595R

 


 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 17.09.2012

 

Names of Shareholders

 

No. of Shares

 

 

 

Pradeep Erinjery

 

1607300

Mohan Kirane

 

961900

Bhavesh Shah

 

595700

Satish Menon

 

595700

Manish Sharma

 

100

Pramod Erinjery

 

100

Ford Business services Centre Private Limited

 

940000

Total

 

4700800

 

Equity Share Break up (Percentage of Total Equity)

 

As on 17.09.2012

 

Category

 

Percentage

Bodies corporate

 

20.00

Directors or relatives of directors

 

47.00

Other top fifty shareholders

 

33.00

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

The company is engaged in implementation and consulting services of software based on ERP and Business Intelligence.

 

 

GENERAL INFORMATION

 

Customers :

·         Phzer

·         Rockwell Automation

·         Unilever

·         Sandisk

·         Ford

·         Ing

·         Bacardi

·         Emerson

·         Ford

·         Doosan

·         Psa

·         Johnson Controls

·         Maruti Suzuki

·         Ingersoll Rand

·         Sara Lee

·         Vodafone

·         Mitsubishi Motors

·         United Technologies

·         Standard Chartered   

 

 

No. of Employees :

Information declined by the management

 

 

Bankers :

·         Citibank N.A., Wockhardt Tower, Ground Floor, West Wing, Bandra Kurla Complex, Mumbai - 400051, Maharashtra, India

 

·         ICICI Bank Limited

·         Kotak Mahindra Bank Limited

 

 

Facilities :

(Rs. In Millions)

Secured Loan

As on

31.03.2011

As on

31.03.2010

 

 

 

ICICI Bank Limited (Against hypothecation of Vehicle)

0.000

0.192

Kotak Mahindra Bank Limited (Against hypothecation of Vehicle)

0.000

0.302

Reliance Capital Limited (Against hypothecation of Vehicle)

0.367

0.580

Total

0.367

1.074

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

S. V. Shetty and Associates

Chartered Accountants

Address :

G-16, Bhaveshwar Complex, Opposite Vidyavihar, Bus Depot, Vidyavihar – West, Mumbai – 400086, Maharashtra, India

Tel. No.:

91-22-25133704 / 67983647

Fax No.:

91-22-25133802

E-Mail :

svshetty@vsnl.com

PAN No.:

AAAFS4744F

 

 

Subsidiaries :

·         Thirdware Solution Singapore Pte. Limited

·         Thirdware Solution Europe Limited

·         Thirdware Solution Deutschland GmbH.

·         Thirdware Solution Technology (Shangai) Company Limited

·         Thirdware Solution Inc.

 


 

CAPITAL STRUCTURE

 

As on 31.03.2011

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

7995000

Equity Shares

Rs.10/- each

Rs.79.950 Millions

5000

Preference Shares

Rs.10/- each

Rs.0.050 Million

 

Total

 

Rs.80.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

4700800

Equity Shares

Rs.10/- each

Rs.47.008 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

47.008

47.008

47.008

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

665.581

613.385

482.627

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

712.589

660.393

529.635

LOAN FUNDS

 

 

 

1] Secured Loans

0.367

1.075

59.944

2] Unsecured Loans

0.000

0.000

0.000

TOTAL BORROWING

0.367

1.075

59.944

DEFERRED TAX LIABILITIES

1.792

0.067

0.000

 

 

 

 

TOTAL

714.748

661.535

589.579

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

148.577

25.096

35.287

Capital work-in-progress

0.000

0.000

0.000

Advance for capital

0.000

94.199

82.230

 

 

 

 

INVESTMENT

215.910

186.623

126.226

DEFERREX TAX ASSETS

0.451

0.390

0.422

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

0.000

0.000

0.000

 

Sundry Debtors

184.027

137.948

170.592

 

Cash & Bank Balances

263.216

271.280

270.852

 

Other Current Assets

0.000

0.000

0.000

 

Loans & Advances

112.125

87.437

68.972

Total Current Assets

559.368

496.665

510.416

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

41.863

22.185

34.829

 

Other Current Liabilities

91.739

70.373

110.166

 

Provisions

75.956

48.880

20.007

Total Current Liabilities

209.558

141.438

165.002

Net Current Assets

349.810

355.227

345.414

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

714.748

661.535

589.579

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2011

31.03.2010

31.03.2009

 

SALES

 

 

 

 

 

Income

789.019

675.607

770.321

 

 

Other Income

53.766

72.555

23.049

 

 

TOTAL                                     (A)

842.785

748.162

793.370

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Purchases

168.631

139.024

126.285

 

 

Personnel Expenses

385.107

281.738

304.732

 

 

Administration & Other Expenses

123.612

96.387

191.940

 

 

Provision for Impairment of Assets

0.000

0.000

0.422

 

 

Provision for Diminution in Value of Investments-WOS

7.918

4.084

0.000

 

 

Provision for Diminution in Value of Investments – Others

0.000

0.011

12.881

 

 

Loss on Sale of Fixed Assets

0.082

2.066

0.285

 

 

Other Assets & Expenses Written Off

0.256

0.151

0.264

 

 

TOTAL                                     (B)

685.606

523.461

636.809

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

157.179

224.701

156.561

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

0.294

1.211

1.990

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

156.885

223.490

154.571

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

12.615

9.646

8.731

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

144.270

213.844

145.840

 

 

 

 

 

Less

TAX                                                                  (H)

37.451

43.566

6.160

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

106.819

170.278

139.680

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

427.278

313.542

242.861

 

 

 

 

 

Add / (Less)

ADJUSTMENT FOR PREVIOUS YEAR TAX

0.010

(0.052)

(0.038)

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to Div Equalization fund

10.683

17.023

13.964

 

 

Dividend

47.008

33.846

47.008

 

 

Tax on Dividend

7.626

5.621

7.989

 

BALANCE CARRIED TO THE B/S

468.790

427.278

313.542

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Income from Software Development Services and software services

688.092

688.092

641.473

 

TOTAL EARNINGS

688.092

688.092

641.473

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Capital Goods

5.863

1.734

5.461

 

 

Import of software and Payment of Subscription

0.534

0.461

0.000

 

 

Import of Software Service Charges

104.372

95.565

97.889

 

TOTAL IMPORTS

110.769

97.760

103.350

 

 

 

 

 

 

Earnings Per Share (Rs.)

22.72

NA

NA

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

PAT / Total Income

(%)

12.67

22.76

17.61

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

18.28

31.65

18.93

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

20.38

40.99

26.73

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.20

0.32

0.28

 

 

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

0.29

0.22

0.42

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

2.67

3.51

3.09

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

SUNDRY CREDITORS DETAILS:

(Rs. In Millions)

Particulars

31.03.2011

31.03.2010

31.03.2009

Sundry Creditors

 

 

 

Trade Creditors

28.714

10.358

20.006

For Expenses

13.149

11.827

14.823

Total

41.863

22.185

34.829

 

 

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

Yes

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

No

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

Yes

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

No

 

PERFORMANCE:

 

The company’s revenue from operations (excluding other incomes) has increased to Rs.789.019 Millions in 2010-11 from Rs.675.607 Millions in 2009-10 registering an increase of 16.79%. Profit after Tax decreased by 37.27% to Rs. 106.819 Millions from Rs. 170.278 Millions in the previous year. The Reserves went up from Rs.613.385 Millions in 2009-10 to Rs. 665.581 Millions in 2010-11.

 

 


CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

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 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.54.96

UK Pound

1

Rs.88.68

Euro

1

Rs.72.45

 

 

INFORMATION DETAILS

 

Information Gathered by :

SVA

 

 

Report Prepared by :

BSN

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

7

--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

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

50

 

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

-

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.