MIRA
INFORM REPORT
|
Report Date : |
23.07.2012 |
IDENTIFICATION DETAILS
|
Name : |
AGC NETWORKS LIMITED |
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Registered
Office : |
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Country : |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
19.08.1986 |
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Com. Reg. No.: |
11-040652 |
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Capital
Investment / Paid-up Capital : |
Rs.142.000 Millions |
|
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|
CIN No.: [Company Identification
No.] |
L32200MH1986PLC040652 |
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|
Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on
the Stock Exchange. |
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Line of Business
: |
Providing Business Communication Solutions |
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|
No. of Employees
: |
1124 (Approximately) |
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 10000000 |
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|
Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is established company having satisfactory record. Trade
relations are reported to be fair. Business is active. Payments are reported
to be regular and as per commitment. The company can be considered for normal business dealing at usual
trade terms and condition. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
EXTERNAL AGENCY RATING
|
Agency Name |
Rating |
|
CARE |
A1 (Jan 2012) |
|
ICRA |
A1 |
Rating Explanations
|
AAA (Highest Safety) |
Instruments with this
rating are considered to have the highest degree of safety regarding timely servicing
of financial obligations. Such instruments carry lowest credit risk. |
|
AA (High Safety) |
Instruments with this
rating are considered to have high degree of safety regarding timely
servicing of financial obligations. Such instruments carry very low credit
risk. |
|
A (Adequate Safety) |
Instruments with this
rating are considered to have adequate degree of safety regarding timely
servicing of financial obligations. Such instruments carry low credit risk. |
|
BBB (Moderate Safety) |
Instruments with this
rating are considered to have moderate degree of safety regarding timely
servicing of financial obligations. Such instruments carry moderate credit
risk. |
|
BB (Moderate Risk) |
Instruments with this rating
are considered to have moderate risk of default regarding timely servicing of
financial obligations. |
|
B (High Risk) |
Instruments with this
rating are considered to have high risk of default regarding timely servicing
of financial obligations. |
|
C (Very High Risk) |
Instruments with this
rating are considered to have very high risk of default regarding timely
servicing of financial obligations. |
|
D (Default) |
Instruments with this
rating are in default or are expected to be in default soon. |
RBI DEFAILTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAILTERS’ 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
|
Name : |
Mr. Prasad |
|
Designation : |
Finance Head |
|
Date : |
21.07.2012 |
LOCATIONS
|
Registered Office / Corporate Office: |
Equinox Business Park, Tower 1 (Peninsula Techno
Park), Off. Bandra-Kurla Complex, LBS Marg, Kurla
(West), Mumbai – 400070, Maharashtra, India |
|
Tel. No.: |
91-22-66617272 |
|
Fax No.: |
91-22-24930644 |
|
E-Mail : |
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|
Website : |
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Factory : |
E-1/I, Gandhinagar Electronics Estate, Gandhinagar - 382 044, Gujarat, India |
|
Tel. No.: |
91-79-66712200 |
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|
Regional Offices: |
Located At · Bangalore · Chennai · Gurgaon · Kolkata · Mumbai · Pune |
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Branches and
Service Centers : |
Located At · Bilaspur · Chandigarh · Guwahati · Hyderabad · Kochi · Nagpur · Surat ·
Vadodara |
|
Tel. No.: |
|
|
International
Offices : |
Located At · USA (Dallas, Texas) · Singapore · Dubai · Kenya (Nairobi) · Australia (Sydney, Melbourne) |
DIRECTORS
As on 31.03.2012
|
Name : |
Mr. Sujay R. She |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. S. K. Jha |
|
Designation : |
Managing Director and Chief executive officer |
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|
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|
Name : |
Mr. Aparup Sengupta |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Shuva Mandal |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Vishal Kohli |
|
Designation : |
Company Secretary |
|
|
|
|
Audit Committee : |
|
|
Name : |
Mr. Sujay R. Sheth |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Shuva Mandal |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Aparup Sengupta |
|
Designation : |
Director |
|
|
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|
Shareholders’/Investors’
Grievance Committee |
|
|
Name : |
Mr. Sujay R. Sheth |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. S. K. Jha |
|
Designation : |
Director |
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|
|
|
Ethics and
Compliance Committee : |
|
|
Name : |
Mr. Shuva Mandal |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Sujay R. Sheth |
|
Designation : |
Director |
|
|
|
|
Remuneration
Committee |
|
|
Name : |
Mr. Sujay R. Sheth |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Shuva Mandal |
|
Designation : |
Director |
|
|
|
|
Executive Committee |
|
|
Name : |
Mr. Aparup Sengupta |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. S. K. Jha |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Sujay R. Sheth |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Animesh Srivastava |
|
Designation : |
Vice President and Head – Sales |
|
Experience : |
22+ years of experience in sales. |
|
|
|
|
Name : |
Mr. Atul Khatavkar |
|
Designation : |
Vice President – IT Governance Risk Compliance |
|
Experience : |
20 + years of experience in the Information Technology field. |
|
|
|
|
Name : |
Mr. Bhavin Barbhaya |
|
Designation : |
Vice President - Sales (IP Surveillance and Emerging Business) |
|
Experience : |
19+ years of experience in IT, Telecom, Electronic Security, Command and Control, Public Safety Equipments and consulting. |
|
|
|
|
Name : |
Mrs. Mahua Mukherjee |
|
Designation : |
Vice President and Head – HR |
|
Experience : |
19+ years of experience in Talent Acquisition, Talent Management and OD, HR Operations, Policies and Practices and Capability and Talent Development. |
|
|
|
|
Name : |
Mr. Raguram Gopalan |
|
Designation : |
SVP - Business Transformation Services |
|
Experience : |
18+ years of experience in Enterprise – IT, ITeS, Networking and Telecom. |
|
|
|
|
Name : |
Mr. Sayed Naved Shafi |
|
Designation : |
Vice President - SME and CHANNEL BUSINESS |
|
Experience : |
18 years of cross functional experience in Strategic Planning, Product Marketing and Channel Management. |
|
|
|
|
Name : |
Mr. Shivam Arora |
|
Designation : |
Vice President – Practice Head, Information Security and Storage |
|
Experience : |
14+ years of experience in Information security governance, Policies and procedures, Risk management, Business continuity, Enterprise security, Architecture design and implementation. |
|
|
|
|
Name : |
Mr. Subir Bhatnagar |
|
Designation : |
Vice President and Global Head – Solutions |
|
Experience : |
21+ years of experience in Technical sales, Marketing, Product management and Technology design and consulting. |
|
|
|
|
Name : |
Mr. Vinod Nair |
|
Designation : |
Vice President – Sales (AV Solutions) |
|
Experience : |
17+ years of experience in Sales, Product Marketing and Promotion and Strategy. |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2012
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
10,674,924 |
75.00 |
|
|
10,674,924 |
75.00 |
|
|
|
|
|
|
10,674,924 |
75.00 |
|
Total shareholding of Promoter and Promoter Group (A) |
|
|
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
3,100 |
0.02 |
|
|
1,100 |
0.01 |
|
|
21,333 |
0.15 |
|
|
145,098 |
1.02 |
|
|
777,103 |
5.46 |
|
|
947,734 |
6.66 |
|
|
|
|
|
|
365,024 |
2.56 |
|
|
|
|
|
|
1,927,567 |
13.54 |
|
|
303,781 |
2.13 |
|
|
14,202 |
0.10 |
|
|
14,202 |
0.10 |
|
|
2,610,574 |
18.34 |
|
Total Public shareholding (B) |
3,558,308 |
25.00 |
|
Total (A)+(B) |
14,233,232 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
|
|
|
|
-- |
-- |
|
|
-- |
-- |
|
|
-- |
-- |
|
Total (A)+(B)+(C) |
14,233,232 |
100.00 |
(1) Indian
Bodies Corporate
Individual shareholders holding nominal
share capital up to Rs.0.100 million Shareholding belonging to the category "Promoter and Promoter Group"
|
Sl. No |
Name of the Shareholder |
Details of Shares held |
Encumbered shares |
|||
|
|
|
No. of Shares held |
As a % of |
No |
As a percentage |
As a % of |
|
1 |
Aegis Limited |
10,674,924 |
75.00 |
10,225,988 |
95.79 |
71.85 |
|
|
Total |
10,674,924 |
75.00 |
10,225,988 |
95.79 |
71.85 |
Shareholding belonging to the category "Public" and holding more than 1% of the Total No. of Shares
|
Sl. No |
Name of the
Shareholder |
No. of Shares held |
Shares as % of
Total No. of Shares |
|
1 |
India Opportunities Growth Fund Limited - Pinewood Strategy |
632,029 |
4.44 |
|
|
Total |
632,029 |
4.44 |
BUSINESS DETAILS
|
Line of Business : |
Providing Business Communication Solutions |
GENERAL INFORMATION
|
No. of Employees : |
1124 (Approximately) |
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Bankers : |
· Bank of India · Credit Agricole - CIB ·
IDBI Bank Limited |
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Facilities : |
(Rs.
In Millions)
|
|||||||||||||||
|
|
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Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
S. R. Batliboi and Associates Chartered Accountants |
|
|
|
|
Holding Company: |
· Aegis Limited (w.e.f. 03 June 2011) · Aegis Limited - Subsidiary of holding company (w.e.f. 20 Jan 2011 till 02 June 2011) · AGC Holdings Limited [(formerly known as Essar Services Holdings Limited) upto 02 June 2011] · Essar Capital Finance Limited (up to 19 Jan 2011) ·
Essar Telecom Limited (Subsidiary of Essar
Global Limited) |
|
|
|
|
Ultimate Holding
Company : |
Essar Global Limited |
|
|
|
|
Subsidiaries : |
· AGC Networks Australia Pty. Limited ·
AGC Networks Pte Limited (formerly known as
Aegis Tech. Singapore Pte. Limited) (w.e.f. 01 May 2011, fellow subsidiary
upto 30 Apr 2011) |
|
|
|
|
Fellow Subsidiaries
: |
· Aegis Tech Limited · Actionline DE Argentina SA · Aegis Communications Group Inc · Aegis Services Australia Pty Limited · Aegis Services Philippines Inc · Aegis Aspire Consultancy Services Limited · Global Vantage Private Limited · Aegis BPO Holdings SA · Aegis BPO Services Limited · Aegis BPO Costa Rica · Aegis Global Services FZ-LLC · Aegis Outsourcing UK Limited · Aegis People Support Inc · Aegis USA Inc · Equinox Business Parks Private Limited · Essar Services Mauritius · Essar House Limited · Essar Information Technology Limited · Essar Infrastructure Services Limited · Essar Investment Limited · Essar Oil Limited · Essar Power MP Limited · Essar Projects India Limited · Essar Projects Singapore Pte Limited · Essar Services India Limited · Essar Power Gujarat Limited · Essar Power Jharkhand Limited · Essar Steel Limited · Essar Telecom Kenya Limited · Essar Management Consultants Limited · The Mobile Stores Limited |
CAPITAL STRUCTURE
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
25000000 |
Equity Shares |
Rs.10/- each |
Rs.250.000 Millions |
|
1000000 |
Cumulative Redeemable Preference Shares |
Rs.100/- each |
Rs.100.000 Millions |
|
|
Total |
|
Rs.350.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
14233232 |
Equity Shares |
Rs.10/- each |
Rs.142.000
Millions |
|
|
|
|
|
Note:
Of the above, 426,692 equity shares have been allotted on amalgamation of the erstwhile Tata Keltron Limited without payment being received in cash.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
142.000 |
142.000 |
142.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
2479.000 |
2564.000 |
2474.000 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
2621.000 |
2706.000 |
2616.000 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
902.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
902.000 |
0.000 |
0.000 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
3523.000 |
2706.000 |
2616.000 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
185.000 |
186.000 |
179.000 |
|
|
Capital work-in-progress |
0.000 |
31.000 |
34.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
950.000 |
950.000 |
145.000 |
|
|
DEFERREX TAX ASSETS |
125.000 |
138.000 |
122.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
696.000
|
410.000 |
456.000 |
|
|
Sundry Debtors |
2670.000
|
1974.000 |
1288.000 |
|
|
Cash & Bank Balances |
486.000
|
94.000 |
1433.000 |
|
|
Other Current Assets |
30.000
|
7.000 |
0.000 |
|
|
Loans & Advances |
1111.000
|
840.000 |
576.000 |
|
Total
Current Assets |
4993.000
|
3325.000 |
3753.000 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1845.000
|
1347.000 |
868.000 |
|
|
Other Current Liabilities |
534.000
|
428.000 |
618.000 |
|
|
Provisions |
351.000
|
149.000 |
131.000 |
|
Total
Current Liabilities |
2730.000
|
1924.000 |
1617.000 |
|
|
Net Current Assets |
2263.000
|
1401.000 |
2136.000 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
3523.000 |
2706.000 |
2616.000 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
6210.000 |
3056.000 |
4946.000 |
|
|
|
Other Income |
114.000 |
29.000 |
100.000 |
|
|
|
TOTAL (A) |
6324.000 |
3085.000 |
5046.000 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of raw material and components consumed |
237.000 |
90.000 |
199.000 |
|
|
|
Purchase of traded goods |
3314.000 |
1623.000 |
2576.000 |
|
|
|
(Increase)/ decrease in inventories of finished goods, work-in-progress and stores and spares |
(290.000) |
52.000 |
31.000 |
|
|
|
Excise duty |
1.000 |
7.000 |
6.000 |
|
|
|
Employee benefits expense |
1070.000 |
459.000 |
0.000 |
|
|
|
Other expenses |
1548.000 |
623.000 |
1634.000 |
|
|
|
Exceptional items |
9.000 |
0.000 |
(10.000) |
|
|
|
TOTAL (B) |
5889.000 |
2854.000 |
4436.000 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
435.000 |
231.000 |
610.000 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
63.000 |
6.000 |
8.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
372.000 |
225.000 |
602.000 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
82.000 |
37.000 |
74.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
290.000 |
188.000 |
528.000 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
127.000 |
60.000 |
178.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
163.000 |
128.000 |
350.000 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
NA |
809.000 |
569.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
NA |
15.000 |
35.000 |
|
|
|
Dividend |
NA |
32.000 |
64.000 |
|
|
|
Tax on Dividend |
NA |
5.000 |
11.000 |
|
|
BALANCE CARRIED
TO THE B/S |
NA |
885.000 |
809.000 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Sales proceeds from overseas branch / Export Oriented Unit |
893.000 |
760.000 |
1380.000 |
|
|
|
Reimbursement of Expenses |
0.000 |
0.000 |
15.000 |
|
|
TOTAL EARNINGS |
893.000 |
760.000 |
1395.000 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw materials and components |
44.000 |
83.000 |
161.000 |
|
|
|
Traded Goods |
2252.000 |
1259.000 |
47.000 |
|
|
|
Capital Goods |
23.000 |
12.000 |
2163.000 |
|
|
TOTAL IMPORTS |
2319.000 |
1354.000 |
2371.000 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
11.43 |
8.99 |
24.59 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
2.58
|
4.15 |
6.94 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
4.67
|
6.15 |
10.68 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
5.60
|
5.36 |
13.43 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.11
|
0.07 |
0.20 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.39
|
0.71 |
0.62 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.83
|
1.73 |
2.32 |
LOCAL AGENCY FURTHER INFORMATION
DETAILS
OF SUNDRY CREDITORS
Rs.
In Millions
|
Particular |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
Total outstanding dues to micro and small enterprises |
1.000 |
2.000 |
0.000 |
|
Other Dues |
1844.000 |
1345.000 |
868.000 |
|
Total |
1845.000 |
1347.000 |
868.000 |
|
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 |
Yes |
|
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 |
-- |
|
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 |
Yes |
|
30) Major Shareholders, if available |
No |
FINANCIAL PERFORMANCE
The Company, for the period ended March 31, 2012 recorded a gross turnover of Rs. 6240.000 millions, as against Rs. 3073.0000 millions for the period ended March 31, 2011. The profit before tax is Rs. 290.000 millions for the period ended March 31, 2012 as against Rs. 188 millions for the previous period. The profit after tax is Rs.163.000 millions as against Rs.128.000 millions for the previous period.
OPERATIONS
During the period, there was a marginal recovery in the US economy. However, this was overshadowed by the Greek debt-crisis and the near collapse of the Euro in the Eurozone. The earthquake and tsunami in Japan further slowed the economy.
However, the Asian juggernaut continued to roll ahead registering impressive rates of growth. As in the previous year, growth in Asia was dominated by China and India, even though both these economies faced internal pressures of inflation, which slowed down growth rates.
Improved business sentiments in the US had a positive effect on global technological spending. The company was firmly placed to reap benefits of this positive trend and registered significant top-line and bottom-line growth over the previous review period. All business verticals grew from strength to strength over the previous year.
This noteworthy performance of the Company was achieved by its sustained focus in ENABLING EXPERIENCE for its customers. The Company has transformed over the last few years to become a SOLUTIONS INTEGRATOR from a SYTEMS INTEGRATOR, and thus offer its customers the entire gamut of IT based practices, solutions and services. The Company continues to expand its offerings and garner larger share of the market. New products launched in the previous review period like Storage and Security Solutions, IT Governance Risk and Compliance (IT GRC) Consulting, Data Networking and Managed Services were well-received by customers and continue to find larger markets.
The Company’s established products in the UC segment comprising of Contact Centre and Enterprise Telephony also carried over their good performance from the previous year.
Joint Venture between AGC and Hareez International
AGC Networks Limited and Hareez Holding Limited have entered into a joint venture to provide IT services in Riyadh and other Middle East regions.
Kingdom of Saudi Arabia, is a very prominent market for Technology consumption. With AGC’s solution offerings and Hareez’s market knowledge, presence, relationship with the prospective customers in the Kingdom, the joint venture is poised for a speedy organic growth in the Kingdom.
Strategy and Tactics:
It envisages achieving this objective by identifying and developing multiple ICT service offerings in emerging growth areas as separate business opportunities such as Application Integration (SAP, Oracle), infrastructure support services, business intelligence services and telecommunication, Smart building solutions, reaching out to the citizens etc, and providing services to identified industry vertical from the cloud – “pay as you go”.
The growth plan includes offering a full service technology solution including systems integration, support services, software and networking solutions along with branded hardware products which the company hopes would enhance profitability significantly. Resources have been mobilized onsite to show commitment to the nation as a whole, with “Best of Breed” solutions.
Joint Venture between AGC and one of the leading group in
UAE
AGC and a leading UAE group have entered into a joint venture partnership to implement a citizen services solution and deliver it over 7 years. These services are envisaged around unique citizen identities.
This JV is expected to build, install, deploy and service support a functionally rich, Solution and System that would be dedicated for United Arab Emirates citizen to enhance the citizen services to start with and then potentially be extended to other GCC countries.
Overall business requirements:
· Full Citizen service processing environment incorporating all online processing, web processing and accounting processes associated with the unique identities.
· A guaranteed current and ongoing compliance with global and regional mandates guidance and best practices
· Provide a minimum five year strategic solution roadmap that assures the company that the solution will allow the company to grow and deploy new services through the same product deployment
· A demonstrable and history of delivering large scale enterprise projects to the customer’s satisfaction supported by customer references
Currently, AGC together with its local partner, is doing a pilot project for the JV along with its ecosystem partners.
BUSINESS OUTLOOK
As the global economy continues to improve and as India continues to grow, the Company expects to continue with its growth plan. The Company has aligned its operations to the customer needs and has positioned itself to ensure that it is relevant to the entire industry as a Solutions Integrator across the globe through its 10 cube strategy. The Company has focussed on 10 key practices and offerings through 10 key technology alliances to be taken to 10 key geographies across the globe, which form the core of its growth strategy. The Company plans to grow its core business from the Contact Centre and Unified Communication space in India to business applications, Data and Information Security, Storage and Servers to other key global markets.
The Company focuses on innovation and considers innovation a key to expand into newer markets through newer products. During the review period, the Company launched three new offerings:
· Customer Experience Applications Suite
· Strategic Intelligence Solution Framework
· SAFE city Solution Framework
These have been developed with a customer-centric approach and the Company’s over-arching approach of ENABLING EXPERIENCE for its customers.
During the period, the Company has transformed itself from a single-alliance to a multialliance company. The Company today has key technology alliances and strategic partnerships with OEMs to offer best-in-class solutions in Remote Infrastructure Management, System Integration, Professional Services and Managed Services.
The Company is firmly positioned to build on the excellent growth of the previous year and looks forward to another good year.
Recognitions
conferred on the Company
As a testimony to the Company’s excellent performance, it has received a total of 12 awards during the year. These are:
(1) Best Performance BFSI, Enterprise – AMX
(2) Partner of the Year, 2011 – Aspect
(3) APAC Technical Excellence Partner of the Year, Avaya
(4) APAC Best Promising Partner – Christi
(5) Best Emerging Partner of the Year – Citrix
(6) Most Extreme Partner of the Year – Extreme
(7) Best Partner – HARMANPRO
(8) Highest Growth Partner – Jabra
(9) APAC Commercial Partner of the Year – Juniper
(10) APAC Best Service Partner of the Year 2011 – NICE
(11) APAC Best Service Partner – Polycom
(12) Best Sales Partner, BFSI and Enterprise – Samsung
During the year, Mr. S. K. Jha, MD and CEO, was honoured with “Outstanding Entrepreneurship Award” by Enterprise Asia, a NGO for entrepreneurship at APEA (Asia Pacific Entrepreneurship Awards).
NEW PRODUCTS
The company is predominantly in the technology business which is evolving and changing every day due to new technological advances and innovation in the enterprise communications domain. The Company fully recognizes that its success is closely linked to the pace it keeps with these fast changing developments. The Company is also at the fore-front of innovation, and over the last year has launched the following new products keeping in line with its larger objective of ENABLING EXPERIENCE to its customers:
Customer Experience Applications Suite
A flexible and comprehensive product that enables 360 degrees collaboration and leads to enhanced efficiency, experience, process optimization, cost savings and process transformation both within and outside an enterprise, primarily BPO’s and organizations focusing on customer care.
Strategic Intelligence Solution Framework
Aimed at aiding homeland and defense intelligence agencies, this solution is a fusion based analytics framework that allows data and security related intelligence to be captured and co-related for better predictability and prevention of terrorist activities, organised crime and white-collar crime.
SAFE city Solution Framework
A video surveillance and analytics solution for creating safe city environments for citizen safety thus helping decision makers be better prepared in case of emergencies.
MANAGEMENT DISCUSSION
AND ANALYSIS REPORT
OVERVIEW
AGC Networks Limited (AGC) is a leading player in the Enterprise Communications and Solutions Integration space. It is the leader in Enterprise Communications in India with global footprints in over 9 countries including India, Middle East, US, ANZ and Africa. It has a differentiated approach to Solutions Integration and offers domain focused flexible and customised solutions to its customers. The Company has a base of more than 2000 customers including Fortune 500 companies.
The Company is a subsidiary of Aegis Limited, which is owned by Essar Global Limited, a $17 billion global conglomerate. Essar Global is a global conglomerate and a leading player in the sectors of Steel, Energy (Oil and Gas and Power), Infrastructure (Ports, Projects and Concessions) and Services (Shipping, Telecom, Realty and Business Process Outsourcing).
The Company has over 18 offices in India with a network of key technology alliance partners and channel partners. It has its delivery centres in all major cities of India.
The core business of the Company is divided into four quadrants, namely:
(1) Unified Communications
(a) Contact Centres
(b) IP Communications
(c) Audio/Video Integration
(d) Video Collaboration and Presence
(e) Physical Security and Surveillance
(2) Network Infrastructure
(a) Switching
(b) Routing
(c) Wireless
(d) Passive
(3) Information Security, Storage and Servers
(a) Network and IT Security, IT Governance, Risk and Compliance
(b) Security Audit and Certifications
(c) Servers and Storage
(d) Data Centre and Desktop Virtualization
(4) Business Applications and Consulting
(a) IVR/Speech/CTI
(b) Work Force Optimization
(c) Customer Experience Analytics
(d) Enterprise Applications and Consulting
(e) Professional Services
INDUSTRY STRUCTURE
AND DEVELOPMENT
The Telecommunications Industry can broadly be divided into the two segments viz.
(1) Service Provider - Basic Services, Mobile Telephony, Contact Centre Services etc.
(2) Solution Providers - Network Equipments, Enterprise Communication, Contact Centre equipment etc.
The Company aspires to be a world class solutions integrator in the Enterprise Communication space. The Company’s solutions help organizations accelerate revenue growth, increase market share and become customer responsive.
According to latest industry estimates, in 2011 worldwide IT spending totalled USD 3.7 trillion, up 6.9 percent from 2010 levels. Worldwide IT spending is forecast to total USD 3.8 trillion in 2012, a 3.7 per cent increase from 2011. The four major technology sectors are Computing Hardware, Enterprise Software, IT Services, Telecommunications Equipment, and Telecommunication Services. The Enterprise Software segment registered the highest growth rate of over 9.5 per cent amongst constituent segments, whereas the lowest growth rate was registered by the Telecommunications Services segment of a shade over 6 per cent. All these four major technology sectors computing hardware, enterprise software, IT services and telecommunications equipment and services are expected to experience slower spending growth in 2012 than previously forecast.
The Indian enterprise IT spending increased from about USD 33 billion in 2010 to approximately USD 36 to 37 billion in 2011, an increase of roughly 8.5 to 9 per cent. This trend is expected to continue in 2012 through till 2015. In 2012, IT spending is expected to surpass USD 40 billion.
Within the Indian enterprise market, government spending continues to maintain a healthy CAGR of over 12 per cent for the period 2010 - 2015.
OUTLOOK
Driven by the 10 CUBE growth strategy and assuming the given market conditions, the Company is striving to be a USD 1 billion organisation by 2015. The Company plans to achieve more profitable growth by focussing on:
(1) Continue to growing its core business in India
(2) Expand to global key high-growth markets
(3) Expand into newer practices and services
(4) Further consolidate AGC geographies by leveraging existing customer relationships
(5) Use the AEGIS parentage and its Indian capability to scale-up
CONTINGENT LIABILITIES
Rs. In millions
|
Particular |
31.03.2012 |
31.03.2011 |
|
Contingent liabilities in respect of disputed demands of: |
|
|
|
Income tax authorities |
236.000 |
170.000 |
|
Excise and Customs authorities |
83.000 |
83.000 |
|
Sales tax matters |
14.000 |
9.000 |
|
Bills Discounted |
19.000 |
46.000 |
Income tax:
The demand is raised mainly on deferral profit due to change in revenue recognition policy and other cases for Rs. 236.000 Millions (31 March 2011 Rs. 170.000 Millions). This is a timing difference liability and appeal is filed before Commissioner of appeals.
Excise:
The amount is reported as contingent liability as an abundant caution for the appeal filed by the department with higher authority for applicability of custom duty on royalty remittance for Rs. 67.000 Millions (31 March 2011 Rs. 67.000 Millions). The order from the lower authority is issued in favour of the company. Rs.11.000 Millions (31 March 2011 Rs.11.000 Millions) relate to Service tax on RTU activation charges and penalty thereon. AGC has filed appeal before commissioner in this case. Rs.5.000 Millions (31 March 2011 Rs.5.000 Millions) related to Excise duty demand on sales of Software. AGC has filed appeal before tribunal.
Sales tax:
This represents Rs.8.000 Millions (31 March 2011 Rs.8.000 Millions) on account of non-receipt of ‘F’ form which is based on abundant precaution. ‘F’ forms are to be received from AGC’s own branches. Balance amount of Rs. 6 Million (31 March 2011 Rs. 1 Million) is sales tax liability in the state of Kerala and West Bengal against which we have filed appeal before competent authority.
Bills Discounted:
Bill discounted represents sales bills discounted with banks against receivables from customers.
BOARD OF DIRECTORS
Mr. Aparup Sengupta brings with him an enviable legacy with a sterling professional career in the IT and IT-enabled services domains. He is an entrepreneur with three successful start-ups: 24/7 Customer, India's first CRM services company; Ion Idea, an IT services company based out of Fairfax, Virginia; and Think Harbor, a leading BPO consulting company funded by Bank Am and Nomura.
Mr. Sengupta has been a member and the Lead Assessor of the Jury of the CII Business Excellence Award, equivalent to the Malcolm Baldrige Award in the US and the Deming Prize in Japan. He has also served as the Chairman of the BPO Steering Committee of Assocham, India's leading industry forum. He has also been an ambassadorial scholar to the US in 1994. Mr Sengupta is a graduate in electrical engineering from the University of Calcutta.
Mr. Shuva Mandal, is a lawyer with more than 19 years of practice. He is the Managing Partner in Fox Mandal and Associates, and practices in Corporate Commercial Group. Most importantly, Shuva is the fourth generation of Mr. G. C. Mandal, co-founder of Fox Mandal (established 1896). He is a partner of the firm since 1996 and presently heads the entire South India operations of the firm.
Mr. Mandal’s practice includes Inbound Investment to India including strategy, corporate governance, corporate finance including MandA, Joint Ventures, disposal of private companies, private equity and securities transaction, public offerings of debt and equity securities. He holds an LLB from the University of Calcutta and has also attended MandA Program at the The Wharton School, University of Pennsylvania.
Mr. Satya K. Jha has over 18 years of experience in the field of global outsourcing, IT business re- engineering, Systems Integration, Information Technology and Communication Solutions.
Prior to joining Aegis, Mr. Jha was working with Wipro as the Head and Vice President of the ICT Practice. Earlier, as Founder and CEO of 3D Networks, he nurtured the company in several directions, both in services and product development. Under his leadership, 3D Networks achieved spectacular growth by providing ICT outsourcing and products to clients across India, MEA and North America. 3D Networks was sold to Wipro in early 2006.
Mr. Jha holds a bachelor's degree in computer engineering. He is known for his dynamism and passion for excellence and has a collaborative leadership style.
Mr. Sujay R. Sheth holds a Bachelor’s degree in Commerce from the Bombay University. He is also a Fellow member of the Institute of Chartered Accountants of India. Currently, Mr. Sheth is the Managing Partner of J. K. Doshi and Co., Chartered Accountants, a reputed firm of Chartered Accountants, established in 1955.
Mr. Sheth’s areas of experience are Finance and Accounting, with deep knowledge of direct taxes, corporate laws and significant experience in the fields of transaction advisory, pre-acquisition studies, corporate governance, assurance, valuation and direct taxation. He is involved in audit, taxation, attestation and assurance functions of a wide selection of Indian and multi-national clients.
AS PER WEBSITES
DETAILS
Press Release
AGC Networks Achieves 'Cisco Gold Certification7 in India
Mumbai, Maharashtra, 22 May, 2012 - AGC Networks today announced that it has achieved 'Cisco Gold Certification.' To earn Gold Certification, AGC Networks had to meet rigorous standards set forth by Cisco in networking competency, service, support and customer satisfaction.
Acknowledging this achievement Mr. Sanjeev Verma, President, AGC Networks Limited said, "When we started 6 months back we knew that we were setting an uphill task as the process of Cisco Gold certification is a rigorous one. But we also knew that it is imperative for us to bring this relationship to a level from where we will offer just the best to their customers. AGC believes in mantra of Enabling Customer Experience. With proficiency in all 3 Key Cisco architectures-Virtualization, cloud computing and Unified Communications, we will make it richer. Their efforts impress upon the strong foundation of AGC-Cisco relationship and confirm their commitment to further strengthen and leverage this bonding. We are extremely proud to be certified as a Cisco Gold Partner Cisco. This definitely is going to be a big boost to their organization as well as business prospects where customer is the ultimate beneficiary."
"We are committed to providing the tools, training and programs that facilitate partner growth, differentiation and profitability," said Edison Peres, senior vice president of worldwide channels at Cisco. "With specializations in unified communications, routing and switching, security, and wireless LAN, Cisco has made an investment in developing the capability to deliver the integrated and customized technology solutions that today's customers demand."
B. Raghavendran, Head, Partner Organisation, Cisco India and SAARC said "Developing broader, integrated technology skills enables partners to deliver the integrated networking solutions that customers demand. It also helps them to broaden their role and enter new markets. With Cisco Gold Certification, AGC Networks has achieved the highest level of credibility and the broadest range of expertise across multiple technologies. They are now better equipped to address their customer demands. We congratulate them on being part of this elite group of partners with proven, in-depth technology skills and customer success in selling, deploying, and providing services for Cisco solutions"
The Cisco Resale Channel Program provides a framework for partners to build the sales, technical and Cisco Lifecycle Services skills required to deliver Cisco solutions to end customers. Through the program's specializations and certifications, Cisco recognizes a partner's expertise in deploying solutions based on Cisco advanced technologies and services. Using a third-party audit process, the program validates a partner's technology skills, business practices, customer satisfaction, presales and post-sales support capabilities, and other critical factors that customers consider when choosing a trusted partner.
As a Cisco Gold Certified Partner, AGC Networks has met the requirements for attaining the broadest range of expertise across multiple technologies by achieving Cisco advanced specializations in unified communications, routing and switching, security, and wireless LAN. In addition, AGC Networks has integrated Cisco Lifecycle Services into its offerings and is required to maintain high levels of customer satisfaction. Cisco Gold Certification provides AGC Networks with access to comprehensive sales, technical, and lifecycle services training and support available from Cisco.
About AGC Networks
AGC Networks Limited. (BSE: 500463 and NSE: AGCNET) is India's Leading Solutions Integrator in Unified communications, AV solutions, Collaboration, Network infrastructure, Information security and Consulting and PSO. AGC has been delivering customized business solutions that help organizations accelerate revenue growth, increase market penetration, optimize operating costs and improve employee productivity, by embedding communication in their business processes. With a vision of being a world class solution integrator of choice, AGC Networks Limited. has always remained committed to providing clients with the best returns on their technology investments. It partners with global leaders like Avaya, Juniper, NICE Systems, Aspect, Verint, HP, Polycom, Cisco, NEC, Sony, Plantronics, EMC, Dialogic, NetApp, Checkpoint and Jabra. AGC Networks is a subsidiary of Aegis Limited, an Essar Enterprise.
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.55.15 |
|
|
1 |
Rs.86.58 |
|
Euro |
1 |
Rs.67.60 |
INFORMATION DETAILS
|
Information Gathered
by : |
SVA |
|
|
|
|
Report Prepared
by : |
NTH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--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 |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.