MIRA
INFORM REPORT
|
Report Date : |
29.02.2012 |
IDENTIFICATION DETAILS
|
Name : |
HARMAN INTERNATIONAL (INDIA) PRIVATE LIMITED |
|
|
|
|
Registered
Office : |
Unit No. 301, 3rd Floor, Campus 3B of The Project, RMZ
Ecospace, Outer Ring Road, Bangalore-560037, Karnataka |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
05.01.2009 |
|
|
|
|
Com. Reg. No.: |
08-048794 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 9.476 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U72200KA2009PTC048794 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
BLRH04664C |
|
|
|
|
PAN No.: [Permanent Account No.] |
AACCH1585J |
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|
|
|
Legal Form : |
Private Limited Liability Company |
|
|
|
|
Line of Business
: |
The company is in the business of providing software development and
related professional services. |
|
|
|
|
No. of Employees
: |
100 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca (16) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a relatively new company having moderate track. There
appears huge accumulated losses recorded by the company. However, trade relations
are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings on a secured trade
terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
INFORMATION PARTED BY
|
Name : |
Mr. T R Narayan |
|
Designation : |
Manager |
|
Contact No.: |
91-9972811445 |
|
Date : |
28.02.2012 |
LOCATIONS
|
Registered Office / Factory : |
Unit No. 301, 3rd Floor, Campus 3B of The Project, RMZ
Ecospace, Outer Ring Road, Bangalore-560037, Karnataka, India |
|
Tel. No.: |
91-80-43306451 / 43306000 |
|
Mobile No.: |
91-9972811445 (Mr. T R Narayan) |
|
Fax No.: |
91-80-40976808 |
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E-Mail : |
|
|
Website : |
DIRECTORS
AS ON 11.11.2011
|
Name : |
Mr. Muthuswami Lakshminarayan |
|
Designation : |
Managing Director |
|
Address : |
No. 133, 4th Cross, 4th Main, Defence Colony,
Indiranagar, Bangalore-560036, Karnataka, India |
|
Date of Birth/Age : |
07.09.1946 |
|
Date of Appointment : |
15.01.2009 |
|
DIN No.: |
00064750 |
|
|
|
|
Name : |
Mr. Balasubramanian Somaskandan Iyer |
|
Designation : |
Alternate Director |
|
Address : |
No. 475, 8th Main, Sadananda Nagar, NGEF Layout,
Bangalore-560038, Karnataka, India |
|
Date of Birth/Age : |
13.10.1949 |
|
Date of Appointment : |
26.09.2011 |
|
DIN No.: |
00138425 |
|
|
|
|
Name : |
Mr. Sachin Surendra Lawande |
|
Designation : |
Director |
|
Address : |
157, Cmpo Road, South Wesport, Connecticut, USA-06880 |
|
Date of Birth/Age : |
27.04.1967 |
|
Date of Appointment : |
16.02.2009 |
|
DIN No.: |
02250161 |
KEY EXECUTIVES
|
Name : |
Mr. T R Narayan |
|
Designation : |
Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 11.11.2011
|
Names of Shareholders |
No. of Shares |
|
Harman International Industries Inc, USA |
937586 |
|
Herman Financial Group LLC, USA |
01 |
|
Harman Industries Holding Mauritius Limited, Mauritius |
9999 |
|
Total |
947586 |
AS ON 11.11.2011
|
Equity Shares
Break Up |
Percentage |
|
Foreign holdings( Foreign institutional
investor(s), Foreign companie(s) Foreign financial institution(s),
Non-resident Indian(s) or Overseas Corporate bodies or Others |
100.00 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
The company is in the business of providing software development and
related professional services. |
|
|
|
|
Exports : |
|
|
Countries : |
·
Srilanka ·
UK ·
USA ·
Dubai ·
UAE ·
Netherland |
|
|
|
|
Imports : |
|
|
Products : |
Raw Material |
|
Countries : |
·
China ·
Germany ·
Malaysia |
|
|
|
|
Terms : |
|
|
Selling : |
Cash, Credit (30 days) |
|
|
|
|
Purchasing : |
L/C, Cash, Credit (30 days) |
GENERAL INFORMATION
|
Customers : |
Wholesalers and Retailers |
|
|
|
|
No. of Employees : |
100 (Approximately) |
|
|
|
|
Bankers : |
HDFC Bank, Bangalore, India |
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
BSR and Company Chartered Accountant |
|
Address : |
Maruti Info Tech Centre, 11-12/1, Inner Ring Road, Koramangala,
Bangalore-560071, Karnataka, India |
|
Tel. No.: |
91-80-39806000 |
|
Fax No.: |
91-80-39806999 |
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Pan No.: |
AAIFB7357B |
|
|
|
|
Holdings Company : |
Harman International Industries Inc, USA |
|
|
|
|
Fellow Subsidiaries : |
·
Herman Becker Automotive Systems, USA ·
Herman Becker Automotive Systems, Germany ·
Harman Music Group Inc ·
AKG Acoustics GmbH ·
Studer Professional Audio GmbH ·
Crown International ·
QNX Software Systems Company ·
Harman France ·
Harman Consumer Inc. |
CAPITAL STRUCTURE
AS ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1000000 |
Equity Shares |
Rs.10/- each |
Rs. 10.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
947586 |
Equity Shares |
Rs.10/- each |
Rs. 9.476
Millions |
|
|
|
|
|
Note:
Of the above 947585 shares are held by Harman International
Industries Inc, the holding company and 1 share is held by Harman Financial
Group Inc., the ultimate holding company is Harman International Industries
Inc.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
9.476 |
9.476 |
|
|
2] Share Application Money |
|
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
|
0.000 |
0.000 |
|
|
4] (Accumulated Losses) |
|
(16.815) |
(25.598) |
|
|
NETWORTH |
|
(7.339) |
(16.122) |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
0.000 |
0.000 |
|
|
2] Unsecured Loans |
|
0.000 |
0.000 |
|
|
TOTAL BORROWING |
|
0.000 |
0.000 |
|
|
DEFERRED TAX LIABILITIES |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
(7.339) |
(16.122) |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
43.594 |
16.892 |
|
|
Capital work-in-progress |
|
0.197 |
6.322 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
0.217 |
0.000 |
|
|
Sundry Debtors |
|
28.243 |
4.581 |
|
|
Cash & Bank Balances |
|
7.543 |
15.160 |
|
|
Other Current Assets |
|
0.000 |
0.000 |
|
|
Loans & Advances |
|
33.338 |
7.272 |
|
Total
Current Assets |
|
69.341 |
27.013 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
8.908 |
7.277 |
|
|
Other Current Liabilities |
|
102.020 |
57.030 |
|
|
Provisions |
|
9.543 |
2.042 |
|
Total
Current Liabilities |
|
120.471 |
66.349 |
|
|
Net Current Assets |
|
(51.130) |
(39.336) |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
(7.339) |
(16.122) |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
|
296.697 |
66.768 |
|
|
|
Other Income |
|
|
|
|
|
|
TOTAL |
|
296.697 |
66.768 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Office Expenses |
|
285.969 |
92.367 |
|
|
|
Administrative Expenses |
|
|
|
|
|
|
Advertising Expenses |
|
|
|
|
|
|
TOTAL |
|
285.969 |
92.367 |
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX |
|
10.728 |
(25.599) |
|
|
|
|
|
|
|
|
|
Less |
TAX |
|
1.944 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX |
|
8.784 |
(25.599) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Revenue from software development services |
|
238.254 |
66.704 |
|
|
|
Revenue from support services |
|
58.167 |
0.000 |
|
|
TOTAL EARNINGS |
|
296.421 |
66.704 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Stores & Spares |
|
1.995 |
0.000 |
|
|
|
Capital Goods |
|
26.284 |
18.287 |
|
|
TOTAL IMPORTS |
|
28.279 |
18.287 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
|
9.27 |
(55.51) |
|
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KEY RATIOS
|
PARTICULARS |
|
|
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
|
2.96 |
(38.34) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
|
9.50 |
(58.31) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
|
(1.46) |
1.59 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
|
(16.42) |
(4.12) |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
|
0.58 |
0.41 |
LOCAL AGENCY FURTHER INFORMATION
|
Check List by Info Agents |
Available in Report (Yes / No) |
|
1. Year of Establishment |
Yes |
|
2. Locality of the firm |
Yes |
|
3. Constructions of the firm |
Yes |
|
4. Premises details |
Yes |
|
5. Type of Business |
Yes |
|
6. Line of Business |
Yes |
|
7. Promoter’s background |
------ |
|
8. No. of Employees |
Yes |
|
9. Name of person contacted |
Yes |
|
10. Designation of contact person |
Yes |
|
11. Turnover of firm for last three years |
Yes |
|
12. Profitability for last three years |
Yes |
|
13. Reasons for variation <> 20% |
No |
|
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 |
Yes |
|
19. Payments terms |
Yes |
|
20. Export / Import details |
Yes |
|
21. Market information |
------- |
|
22. Litigations that the firm / promoter involved |
------ |
|
23. Banking Details |
Yes |
|
24. Banking facility details |
No |
|
25. Conduct of the banking account |
------ |
|
26. Buyer visit details |
------ |
|
27. Financials, if provided |
No |
|
28. Incorporation details, if applicable |
------ |
|
29. Last accounts filed at ROC |
------ |
|
30. Major Shareholders, if available |
------ |
SUNDRY CREDITORS
DETAILS
(Rs.
in Millions)
|
Particulars |
|
31.03.2011 |
31.03.2010 |
|
Sundry Creditors |
|
|
|
|
-
Due to micro and small enterprises |
|
0.000 |
0.000 |
|
-
Due to creditors other than micro and small
enterprises |
|
|
|
|
-
Capital Goods |
|
0.954 |
2.815 |
|
-
Inter Company Payable |
|
3.756 |
4.367 |
|
-
Others |
|
4.198 |
0.095 |
|
Total |
|
8.908 |
7.277 |
NOTE
Registered office has been shifted from Carewel House, 6th
Cross, Muniswamappa Layout, Opposite Total Old Airport Road, Bangalore-560047,
Karnataka, India w.e.f. 20.04.2009.
REVIEW OF
OPERATIONS
The company was
incorporated on January 05, 2009 as a
Private Limited company. The company has received the status as a 100% Export
Oriented Unit under the Software Technology Parks of India. The company
provides software service to the Parent and Associate Companies within the
"HARMAN" group.
During the
financial year 2010-11 The Company made a modest beginning of rendering
additional activity of Support Services to the Harman Professional Group
products front ended through the Harman Music Group Inc.
Though lesser than
projected but better than last years size of head count ramp up, and beginning
of Support Services, the Company has been
able to post a turnover of Rs. 296.697 Millions (Previous Year Rs. 66.768
Millions) which represents a growth of about 444% from last year.
As compared to a
net loss of Rs. 25.599 Millions
posted in the previous period ended March 31, 2010, the Company achieved a
profit of Rs. 10.728 Millions basically on account of markup on the Support
Services activities and a marginal profit from Sohare Services where the
overhead recovery was less due to a slower than projected headcount ramp up.
Provision for tax
pertains to tax payable on the
Support Services activity with no tax breaks.
During the year
the Company incurred Exchange Rate Fluctuation Loss of Rs. 5.499 Millions.
COMPANY OVERVIEW
Subject is a private limited company incorporated under the provision of
the Companies act, 1956 on January 5, 2009. The company is in the business of
providing software development and related professional services. The Company
is a subsidiary of Harman International Industries Inc., USA (the holding
company). the Company derives its revenues primarily from the parent company
and fellow subsidiaries.
During the current year, Company has commended providing support
services for the products sold by the distributors of the group companies.
COMMITMENTS AND CONTINGENT LIABILITIES
a.
The estimated amount of contracts remaining to be
executed on capital account, and not provided for (net of advances) is Rs 0.200
Million (31 March 2010: Rs. 3.789
Millions) as at March 31,2011.
b.
Bank guarantees aggregating to Rs 1.000 Million (31
March 2010: Rs. 1.000 Million) furnished to custom authorities.
FIXED ASSETS
·
Leasehold Improvements
·
Computer Equipments
·
Lab Equipments
·
Furniture and Fixtures
·
Office Equipment
·
Vehicles
·
Computer Software
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l Anti-Money
Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws, regulations
or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 49.14 |
|
|
1 |
Rs. 77.85 |
|
Euro |
1 |
Rs. 66.06 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
2 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
2 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
2 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
2 |
|
--LEVERAGE |
1~10 |
2 |
|
--RESERVES |
1~10 |
-- |
|
--CREDIT LINES |
1~10 |
-- |
|
--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 |
|
16 |
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.