MIRA
INFORM REPORT
|
Report Date : |
09.03.2012 |
IDENTIFICATION DETAILS
|
Name : |
NIIT LIMITED |
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Registered
Office : |
B - 234, Okhla Industrial Area, Phase – I, |
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Country : |
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Financials (as on)
: |
31.03.2011 |
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Date of
Incorporation : |
02.12.1981 |
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Com. Reg. No.: |
55-15865 |
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Capital
Investment / Paid-up Capital : |
Rs.330.191 Millions |
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CIN No.: [Company Identification
No.] |
L74899DL1981PLC015865 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
DELP00091A |
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PAN No.: [Permanent Account No.] |
AAACN0085D |
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Legal Form : |
A Public Limited Liability company. The company’s Shares are Listed on
the Stock Exchange. |
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Line of Business
: |
Subject is
engaged in Learning Solution and Software Solution Business |
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No. of Employees
: |
1400 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (66) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
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Maximum Credit Limit : |
USD 16650000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is an
established and reputed IT educational company having fine track. It has multi-national
operations. Financial position is good. Trade relations are fair. Payments
are correct and as per commitments. The company can
be considered good for normal business dealings at usual trade terms and
conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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|
A1 |
A1 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
|
Registered Office : |
B - 234, Okhla Industrial Area, Phase – I, |
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Tel. No.: |
91-11-26817341 / 26817342 / 26817343 / 41407000 |
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Fax No.: |
91-11-26819260 / 26817344 |
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E-Mail : |
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Website : |
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Regional
Office : |
Located at :- Ř
Mumbai, Ř Chennai, Tamilnadu Ř
Kolkata, Ř
Ř
Pune, Ř and several other places. |
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Corporate
Office : |
8, A-11, Sector 2, Noida 201301 , Tel. No. 91-120-2535055 Fax No. 91-120-2535058 NIIT House, 85, Sector
32, Institutional Area, Gurgaon-122001, E-Mail: niit.webmaster@niit.com Tel. No.:
91-124-4293000 Fax No.:
91-124-4293333 |
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Branches : |
Located at Ř
Ř
Mumbai, Ř Chennai, Tamilnadu Ř
Ř
Kolkata, Ř
Ř
Pune, Ř
and several other places |
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Overseas
Offices : |
Located at
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DIRECTORS
As on 31.03.2011
|
Name : |
Mr.
Rajendra Singh Pawar |
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Designation : |
Chairman & Managing Director |
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Date of Birth/Age : |
55 years |
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Qualification : |
B.Tech. |
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Experience : |
34 years |
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Date of Appointment : |
02.12.1981 |
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Previous Employment : |
HCI Limited,
Corporate Planning Manager |
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Name : |
Mr. Vijay K. Thadani |
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Designation : |
Chief Executive Officer & Whole-time Director |
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Name : |
Mr. P. Rajendran |
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Designation : |
Chief Operating Officer & Whole-time Director |
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Name : |
Mr. Subroto Bhattacharya |
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Designation : |
Director |
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Name : |
Mr. Surendra Singh |
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Designation : |
Director |
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Name : |
Mr. Sanjay Khosla |
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Designation : |
Director |
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Name : |
Madhabi Puri Buch |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Rajesh Arora |
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Designation : |
Company Secretary |
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Name : |
Mr. Ashok Arora |
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Designation : |
Group Chief Financial Officer |
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Name : |
Mr. Jitender Mahajan |
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Designation : |
Chief Financial Officer |
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Name : |
Mr. G Raghavan |
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Designation : |
Chief Executive Officer, |
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Name : |
Mr. Sapnesh Lalla |
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Designation : |
Chief Executive Officer , Learning
Solution for |
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Name : |
Mr. Hemant Sethi |
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Designation : |
President School Learning Solution |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
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|
7229369 |
4.38 |
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48843539 |
29.59 |
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56072908 |
33.97 |
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Total shareholding of Promoter and Promoter Group (A) |
56072908 |
33.97 |
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(B) Public Shareholding |
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|
17423759 |
10.55 |
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26486 |
0.02 |
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607627 |
0.37 |
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61911116 |
37.50 |
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14527198 |
8.80 |
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24798348 |
15.02 |
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3021189 |
1.83 |
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3272198 |
1.98 |
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|
1470140 |
0.89 |
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|
22500 |
0.01 |
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47111573 |
28.54 |
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Total Public shareholding (B) |
109022689 |
65.04 |
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Total (A)+(B) |
165095597 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
-- |
-- |
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Total (A)+(B)+(C) |
165095597 |
100.00 |
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(1)
Indian
Individuals
/ Hindu Undivided Family
Individual
shareholders holding nominal share capital up to Rs. 0.100 millionBUSINESS DETAILS
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Line of Business : |
Subject is engaged
in Learning Solution and Software Solution Business |
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Products : |
Learning
solutions |
GENERAL INFORMATION
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No. of Employees : |
1400 (Approximately) |
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Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Price Waterhouse Chartered Accountants |
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Subsidiaries: |
· NIIT Online Learning Limited · Scantech Evaluation Services Limited · Hole-in-the-Wall Education Limited · NEO Multimedia Limited (Formerly known as NIIT Multimedia Limited) (upto March 30, 2011) · NIIT Institute of Finance Banking and Insurance Training Limited · NIIT Institute of Process Excellence Limited · Evolv Services Limited ·
NIIT Limited, ·
NIIT Antilles NV, ·
NIIT ·
NIIT GC Limited (formerly NIIT TVE Limited), ·
NIIT ·
·
·
·
· Su Zhou NIIT Information Technology Consulting Limited (w.e.f. April 28, 2010) ·
PCEC NIIT Institute of Information Technology,
·
NIIT ( ·
NIIT Ventures Inc., ·
Element K Corporation, ·
Element K India Private Limited, ·
Element K ( ·
Element K Inc., ·
PT NIIT Indonesia, |
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Associates : |
· NIIT Technologies Limited · NIIT GIS Limited ·
NIIT Smart Serve Limited |
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Parties in which
the Key Managerial Personnel of the Company are interested : |
· NIIT Institute of Information Technology · NIIT Education Society · Pace Industries Private Limited ·
NIIT Network Services Limited |
CAPITAL STRUCTURE
As On 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
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|
250000000 |
Equity Shares |
Rs. 2/- each |
Rs. 500.000 millions |
|
2500000 |
Redeemable
Preference Shares |
Rs. 100/- each |
Rs.250.000 millions |
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TOTAL |
|
Rs.750.000 millions |
Issued:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
165101597 |
Equity Shares |
Rs. 2/- each |
Rs. 330.203 Millions |
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Subscribed
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
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|
165095597 |
Equity Shares |
Rs. 2/- each |
Rs. 330.191 Millions |
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Paid Up
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
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|
165095597 |
Equity Shares |
Rs. 2/- each |
Rs. 330.191 Millions |
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Add : |
Forfeited Shares (amount originally paid-up) |
|
Rs. 0.006 million |
|
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TOTAL |
|
Rs. 330.197
millions |
Note Issued share capital includes 142176960
equity shares of Rs 2/- each (pervious year 142176960 equity shares if Rs. 2/- each)
allocated as fully paid up Bonus shares by way of capitalization of General
reserve/share premium account/ capital redemption reserve in 2007-2008,
1998-1999, 1994-1995, 1992-1993 and 1987-1988.
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 |
330.197 |
330.197 |
329.971 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
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3] Option Outstanding |
0.000 |
0.000 |
0.679 |
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4] Reserves & Surplus |
3832.876 |
3609.790 |
3517.359 |
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5] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
4163.073 |
3939.987 |
3848.009 |
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LOAN FUNDS |
|
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|
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1] Secured Loans |
1500.000 |
1065.541 |
1265.872 |
|
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2] Unsecured Loans |
997.281 |
1440.389 |
720.861 |
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TOTAL BORROWING |
2497.281 |
2505.930 |
1986.733 |
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DEFERRED TAX LIABILITIES |
0.000 |
1.431 |
0.000 |
|
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|
|
|
|
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TOTAL |
6660.354 |
6447.348 |
5834.742 |
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APPLICATION OF FUNDS |
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|
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FIXED ASSETS [Net Block] |
1675.097 |
1820.462 |
1776.649 |
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Capital work-in-progress |
348.942 |
79.436 |
175.774 |
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INVESTMENT |
2030.564 |
2012.160 |
1847.973 |
|
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DEFERREX TAX ASSETS |
27.047 |
0.000 |
62.343 |
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
136.380
|
101.330
|
92.420 |
|
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Sundry Debtors |
2642.653
|
2169.738
|
1785.636 |
|
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Cash & Bank Balances |
251.292
|
288.683
|
399.295 |
|
|
Other Current Assets |
977.034
|
687.107
|
286.549 |
|
|
Loans & Advances |
1030.348
|
1212.297
|
1510.187 |
|
Total
Current Assets |
5037.707
|
4459.155 |
4074.087 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1174.822
|
1031.068
|
1170.662 |
|
|
Other Current Liabilities |
926.059
|
557.080
|
576.852 |
|
|
Provisions |
358.122
|
335.717
|
354.570 |
|
Total
Current Liabilities |
2459.003
|
1923.865
|
2102.084 |
|
|
Net Current Assets |
2578.704
|
2535.290
|
1972.003 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
6660.354 |
6447.348 |
5834.742 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
6480.140 |
6251.721 |
5456.168 |
|
|
|
Other Income |
217.891 |
196.036 |
339.102 |
|
|
|
TOTAL (A) |
6698.031 |
6447.757 |
5795.27 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Personnel |
1426.722 |
1174.176 |
1311.384 |
|
|
|
Development, production and Execution |
2424.977 |
2589.509 |
1894.983 |
|
|
|
Administration and others |
1060.848 |
944.689 |
961.006 |
|
|
|
Marketing |
578.837 |
562.889 |
482.005 |
|
|
|
Exceptional Items |
(136.084) |
15.120 |
0.000 |
|
|
|
TOTAL (B) |
5355.300 |
5286.383 |
4649.378 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1342.731 |
1161.374 |
1145.892 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
212.250 |
171.128 |
108.289 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1130.481 |
990.246 |
1037.603 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
577.038 |
541.793 |
402.413 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
553.443 |
448.453 |
635.190 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
56.045 |
136.757 |
163.085 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
497.398 |
311.696 |
472.105 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
2181.071 |
2359.718 |
2224.508 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
49.740 |
31.170 |
47.210 |
|
|
|
Dividend |
274.312 |
257.110 |
237.622 |
|
|
|
Transferred to/ (from) Debenture Redemption Reserve |
(97.936) |
202.063 |
52.063 |
|
|
BALANCE CARRIED TO
THE B/S |
2452.353 |
2181.071 |
2359.718 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Service and Products |
825.237 |
474.805 |
499.158 |
|
|
TOTAL EARNINGS |
825.237 |
474.805 |
499.158 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Bought out packages/ products |
424.436 |
226.756 |
156.602 |
|
|
|
Capital Goods |
12.278 |
13.032 |
53.105 |
|
|
TOTAL IMPORTS |
436.714 |
239.788 |
209.707 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
3.01 |
1.89 |
-- |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
1562.200 |
1963.200 |
1491.900 |
|
Total Expenditure |
1520.000 |
1734.900 |
1482.000 |
|
PBIDT (Excl OI) |
42.200 |
228.300 |
9.900 |
|
Other Income |
44.800 |
80.900 |
49.400 |
|
Operating Profit |
87.000 |
309.200 |
59.300 |
|
Interest |
58.700 |
65.700 |
50.600 |
|
Exceptional Items |
0.000 |
0.000 |
931.400 |
|
PBDT |
28.300 |
243.500 |
940.100 |
|
Depreciation |
151.300 |
168.500 |
184.400 |
|
Profit Before Tax |
(123.000) |
75.000 |
755.700 |
|
Tax |
(23.000) |
2.700 |
198.200 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
(100.000) |
72.300 |
557.500 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
(100.000) |
72.300 |
557.500 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
7.43
|
4.83
|
8.15 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
8.54
|
7.17
|
11.64 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
8.24
|
7.14
|
10.86 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.13
|
0.11
|
0.17 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.19
|
1.12
|
1.06 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.05
|
2.32
|
1.94 |
LOCAL AGENCY FURTHER INFORMATION
FINANCIAL
HIGHLIGHTS
The highlights of The Company’s financial results for the financial
year April 1, 2010 to March 31, 2011 are as follows: During the year, The
Company’s consolidated income from operations has increased to Rs.12483 million
as against Rs.11993 million in the previous year, registering a growth of 4%
over the previous year, while Net Profit (after Associates’ Profit) is Rs.922
million as against Rs.702 million in the previous year, registering a growth of
31% over the previous year.
The income from operations for the year for the Company on a
standalone basis increased to Rs.6480 million as compared to Rs.6252 million in
the previous year, thereby registering a growth of approx. 4% on yearly basis
and Net Profit increased to Rs497 million from Rs.312 million in the current
year registering a growth of 59% over the previous year.
BUSINESS
OPERATIONS
The financial year 2010-11 saw a progression in economic trends
from cautious optimism at the beginning of the year leading into full scale
recoveries and rapid growth in many emerging economies. In this environment,
The Company started the year with the theme of “Sharpening the Edge” with
specific focus on improving the return on capital employed and quality of
balance sheet while re-engineering the Company’s businesses for higher growth.
During the financial year under review, the Individual Learning
Solutions launched new initiatives to build a robust order book. These
initiatives included new products to address changing preferences, focus on
higher end segment with new offerings, integration of various offerings under
‘One Subject’ and new delivery models.
In the Schools Learning Solutions, The Company focused on the
non-government schools increasing the size of the sales force significantly,
putting a new leadership team in place, revamping ICR content which was launched
towards year end. In the Corporate Learning Solutions, The Company achieved
steadily rising sales, collection and profitability in the backdrop of a
sluggish global economy. This was accomplished through aggressive sales
activity and robust delivery performance across North America, Europe and
FUTURE PLANS
The positive macro economic trends of accelerating GDP growth,
increased government spending and strong corporate hiring plans coupled with
encouraging lead indicators lay the foundation for The Company’s growth.
The Company has specialized in delivering “Excellence at Scale”
based on its core competencies of Pedagogy, Technology and Partnerships. The
Company will focus its energy on Leveraging “One Subject” for reach and
customer choice, focus on IP and Annuity-based revenue for scale and
profitability as well as addressing new opportunities with new business models
at new price points.
SUBSIDIARY
COMPANIES
During the year,
The Company has disinvested its entire stake in non operating
wholly owned subsidiary company ‘Neo Multimedia Limited’ (formerly known as
subject Multimedia Limited). During the year under review, PCEC NIIT Institute
of Information Technology, step down subsidiary of The Company has been
liquidated and therefore, ceased to be a subsidiary company.
MANAGEMENT
DISCUSSION AND ANALYSIS
COMPANY PERFORMANCE
Subject started the year with the theme of “Sharpening the
edge” with specific focus on improving the return on capital employed and
quality of balance sheet while re-engineering the Company’s businesses for
higher growth.
The Company’s performance for the year 2010-11 is reflected in
the chart below: Due to the re-engineering of businesses as well as initiatives
in strengthening the balance sheet, there were one-time and exceptional entries
which are explained in the analysis made subsequently in this document. During
FY’11, subject offered the following learning solutions
Individual
• It training: the Company provided instructor led
(supplemented by e-learning, satellite based and vlabs- the cloud based
laboratories) IT training to individuals interested in pursuing a career in IT
or upgrading their IT skills. These programmes, in many cases conducted through
partnerships with technology companies, were provided across
New Businesses
Finance and Management training: the Company offered
training programmes to individuals in banking, insurance, finance and
management. These programmes were offered through innovative business models
involving partnerships with leading banks, insurance companies as well as
leading management institutes.
BPo training: the Company offered knowledge and training
in business processes, and soft skills to address the increasing demand for
skilled workers in the business and technology services industry.
Schools: the Company catered to the requirements of Government and
private schools for multimedia education across all subjects, IT education and
teachers training.’
Corporate: the Company provided end to end solutions,
from development to deployment of training curriculum to the corporate sector.
Product offerings included Learning Products online and through printed books,
Managed Training Services and Custom projects.
BUSINESS OVERVIEW
Individual learning
solutions
Subject’s offerings for Individuals include IT, BFSI,
Management, BPO and English and Professional life skills for a variety of
sectors. For this, subject leverages its global presence across
Given the economic slowdown in FY’10, the Individual business
started the year with a lower order book. However during the year, the business
launched new initiatives to build a robust order book as under:
New products to address changing preferences
New delivery model: embedding VSAT based delivery across
centers and online portal to expand reach and increase efficiency
Subject Inside: Separate team with focus on College delivery
Higher end segment: New products (ERP, business analytics etc)
Launched ‘One SUBJECT ’: Integrating IT, FMT and New Businesses
product offerings
Stronger placement push
The impact of all these initiatives was very positive with
year-on-year enrolments growth of 6 percent and placements growth of 31 percent
in IT Training. The IT Training business provides technical and professional
skills to ensure employability as well as technology upgrade skills for working
professionals. Revenue growth of 10 percent was led by 99 Day Diploma,
Infrastructure Management solutions and Edgineers curriculum, with a
significant uptake in SAP enrolments during the second half of the financial
year. The enrolments for career courses grew by 10 percent during the year.
- As part of the growth strategy, the
Company focused on the following initiatives during FY’11:
- Launched a full slate of new products
and programs, many of which cater to changing preferences for\ shorter
duration programs:
- Advanced Online Advertising’ program,
in association with Google, for the advertising and marketing
professionals
- Salesforce.com – training for
Salesforce.com CRM Management
- Zend Technologies – training to learn
PHP and Zend Framework
- Tally Solutions – training programs
to master Tally. ERP 9
- Cloud Computing – Entry Level
Programs for Working Professionals on Microsoft – Azure Platform
- IGNOU - ‘Finishing School Program’ in
IT and professional skills
- Android (Google) World – Awareness
and Programming Courses
- Certified Oracle 10g courses on
Database Administrator / Oracle Certified Professional / Oracle Certified
Associate
- New Fun and Gaming/School Project
programs under “Cool Programs”
- “Click
- Customized GNIIT Programs for
Engineers
2. National IT Aptitude Test – The Company conducted the
National IT Aptitude Test for the seventh consecutive year. The test was
simultaneously conducted across 27 states in
1.
Initiated change in delivery model
enabling VSAT based delivery across centers
2.
3.
Created a separate team with focus on ‘In
college delivery’
The closing order book was Rs. 1,106 million, of which nearly
two-thirds is executable during FY’12.
During FY’11, the Company continued to focus on select high
potential geographies. To this end, the Company expanded its
The revenue growth was affected by lower order book at the
beginning of the year while the margins for the year were adversely impacted
due to expenses on implementing new delivery models (One subject etc.) but have
positioned ILS for higher growth and improvement in margins in the future.
New Businesses
The Company further consolidated its leadership position in
Financial Services training through the
Subject Imperia continued to establish its unique model of
Executive Management Education that combines programs offered by world-class
management institutes with the geographical reach made possible by subject’s
Synchronous Learning Technology. During the year it launched the first batch of
the Executive MBA in collaboration with Indira Gandhi National Open University
(IGNOU). Pioneering courses in Digital marketing in an\ alliance with Google,
and in IFRS with KPMG were well received.
UNIQUA offers the industry’s most comprehensive training curriculum
for existing and prospective employees of business services and technology
companies. During FY’11 Uniqua continued to reach out across
School learning solutions
The School Learning Solutions business provides solutions and
services for IT training and for technology enabled learning and teaching for
schools as well as teachers training and Hole in the Wall Learning Station solutions.
In Government schools, the Company adopted an extremely selective approach to
Sarva Shiksha Abhiyan and ICT @school tenders floated by the State governments
as it sought to balance growth and capital intensity in this business.
Receivables were followed up aggressively, with traction being gained toward
the end of the financial year.
For Non-government schools, the Company offers a comprehensive
suite of technology enabled products and solutions under the subject Guru
Solution. In addition to its legacy IT Wizard product, the nGuru suite provides
a holistic education delivery solution to address key needs of Students,
Teachers, School management and Parents, in line with NCERT’s National
Curriculum framework. The nGuru suite is comprised of ‘Interactive Classrooms’
for teachers, ‘Math lab’and ‘IT Wizard’ for students, ‘
During the year, the Company focused its attention on
Non-government schools, increasing the size of the sales force significantly,
putting a new leadership team in place, revamping ICR content which was
launched towards the year end. This resulted in a healthier order book and
steady growth in Non-Government revenues. In the year, the Company added 581
Non-government Schools. In addition, the Company entered into an alliance with
Fourier Systems, a worldwide leader in science education to launch the Mobile
Science Lab for schools – an innovative learning solution which integrates the
Science Lab into the classroom. The Company launched subject Mind Champions’
Academy to popularize Chess in schools across India as a joint initiative by
subject and World Chess Champion, Viswanathan Anand.
Subject’s Hole-in-the-Wall Education (HiWEL)
initiated set up of over 100 Play Ground Learning Stations
during the year. HiWEL has developed innovative and a cost
effective approach in using technology to empower
disadvantaged groups through the provision of free and
unrestricted computer access to children and community members
in open unsupervised settings. HiWEL was awarded HASTAC/ MacArthur
Digital Media Learning Award 2010 and
Honorable Commendation of Wenhui Award for
Educational Innovation 2010 by the National Commission
of the People's Republic of
CONTINGENT
LIABILITIES
- Guarantees
issued by bankers outstanding at the end of accounting year Rs.21.075
millions (Previous year Rs.125.486 millions).
- Letter
of Credit issued by bankers on behalf of the Company outstanding at the
end of accounting year Rs.24.172 millions
(Previous year Nil)
- Corporate
Guarantee Rs.621.600 millions [USD 14 million (net of payment of USD 29.50
million)] given to ICICI Bank, Bahrain on behalf of NIIT (USA) Inc., USA (Previous
year Rs.944.471 millions [USD 21 million (net of payment of USD 22.5
million)]).
- Corporate
Guarantee Nil (Previous year Rs.682.552 millions [GBP 10 million (loan
outstanding GBP 9.40 million)]) given to ICICI Bank UK PLC,
- Corporate
Guarantee Rs.732.600 millions [USD 16.50 million (loan outstanding USD 15
million)] (Previous year Nil) given to ICICI Bank UK PLC,
- Stand
by Letter of Credit of Rs.244.200 millions [USD 5.50 million] (Previous
year Rs.247.361 millions [USD, 5.50 million]) from BNP Paribas in favor of
Bank of West, USA on behalf of Element K Corporation, USA.
- Security
given to Indian Overseas Bank against Working Capital limits on behalf of
Evolv Services Limited Rs.10.000 millions (Previous year Rs.10.000
millions) [Amount outstanding at year end Rs.9.773 millions (Previous year
Rs.9.472 millions], NIIT Institute of Finance Banking and Insurance
Training Limited Rs.10.000 millions (Previous year Rs.10.000 millions)
[Amount Outstanding at year end Nil (Previous year Nil)] and
Hole-in-the-Wall Education Limited of Rs.10.000 millions (Previous year
Rs.7.000 millions) [Amount Outstanding at year end Rs.8.008 millions
(Previous year Rs.6.444 millions)].
- Claims
against the Company not acknowledged as debts Rs.14.200 millions (Previous
year Rs.13.200 millions
- Andhra
Pradesh works contract tax Rs.91.836 millions (Previous year Rs.80.137
millions). Management does not foresee any financial implication based on
the advice of the legal consultant.
- Service
Tax demand amounting to Rs.10.489 millions (Previous year Rs.10.489
millions) and equal amount of penalty i.e. Rs.10.489 millions (Previous
year Rs.10.489 millions) raised by Commissioner of Service Tax,
- Income
Tax demand for Rs.157.600 millions (Previous year Rs.72.100 millions).
Management does not foresee any financial implication based on the advice
of the legal consultant.
- Service
Tax liability on rental of immovable properties amounting to Rs.12.068
millions (Previous year Nil).
FIXED ASSETS
- Land Free
hold
- Buildings
- Plant and
machinery
- Lease hold
improvement
- Furniture and
Fixtures
- Vehicles
- Software
- Patents
WEBSITE DETAILS
OVERVIEW
Subject is a leading Global Talent Development Corporation, building skilled manpower pool for global industry requirements. The company which was set up in 1981, to help the nascent IT industry overcome its human resource challenges, has today grown to be amongst world’s leading talent development companies offering learning solutions to Individuals, Enterprises and Institutions across more than 44 countries.
Subject training solutions in IT, Business Process Outsourcing, Banking, Finance and Insurance, Executive Management Education, and Communication and Professional Life Skills, touch five million learners every year. Subject expertise in learning content development, training delivery and education process management make it the most preferred training partner, worldwide.
Research-based Innovation, a key driver at NIIT, has enabled the organization to develop programs and curricula that use cutting-edge instructional design methodologies and training delivery. Subject Individual Learning Solutions include industry-endorsed IT training programs like GNIIT, Integrated programs for Engineers (NIIT Engineers) and Infrastructure Management programs (NIIT Global Net+).
For working professionals, NIIT Imperia, Centre for Advanced
Learning, brings Executive Management Education Programs from premier B-schools
in
NIIT Institute of Finance Banking and Insurance (IFBI), formed by NIIT with equity participation from ICICI Bank, offers programs for individuals and corporations in Banking, Financial Services and Insurance.
Subject Uniqua, Centre for Process Excellence, addresses the increasing demand for skilled workers in the business and technology services industry by providing training programs in relevant areas. This is a part of NIIT Institute of Process Excellence, a NIIT-Genpact venture.
Subject Corporate Learning Solutions encompasses 3 organizations (NIIT’s Enterprise Learning Solutions Business, Cognitive Arts and Evolv) which offer integrated learning solutions, including Managed Training Services, strategic consulting, learning design, content development, delivery, technology, assessment and learning management to Fortune 500 companies, Universities, Technology companies, Training corporations and Publishing houses.
Ushering in a new model in higher education is the
not-for-profit
BOARD OF DIRECTOR
RAJENDRA S PAWAR
Rajendra S. Pawar is Chairman and Co-founder of the NIIT Group that encompasses two businesses— NIIT Limited, the leading Global Talent Development Corporation and NIIT Technologies Limited, the software and services arm. Mr. Pawar is the current Chairman of India’s IT industry body- National Association of Software and Service Companies (NASSCOM).
Set up in 1981, NIIT pioneered the computer education market
in
Mr. Pawar led NIIT’s foray into the software and services
market, creating NIIT Technologies, a global IT Solutions organization.
Assessed at SEI-CMMi Level 5, NIIT Technologies serves clients across North
America, Europe, Asia, Middle East and
Mr. Pawar is a member on the Prime Minister’s National
Council on Skill Development; has served on the Prime Minister’s National Task
Force commissioned to develop
Actively involved in
Acknowledging his contribution to the IT industry in
Global Business Intelligence firm, Ernst and Young conferred
on Mr. Pawar, its prestigious ‘Master Entrepreneur of the Year Award’, in 1999.
He has also been named the ‘IT Man of the Year’ by IT industry journal,
Dataquest. Pawar has been awarded ‘The Global India Splendor Award’ on the
occasion of 60th year of
Known for promoting industry-academia alliances, Mr. Pawar
has been working closely with the country’s well-known educational
institutions. He is on the Board of Governors of India’s premier engineering
institution, IIT Delhi; leading management institution, IIM Bangalore;
country’s first global business school, the
Having revolutionized the IT Training industry, Mr. Pawar is
involved in establishing an innovative model in Higher Education. Currently a
member of the Planning Commission’s Consultative Group on Higher Education, he
is deeply engaged in shaping the not-for-profit
Mr. Pawar studied at the
Mr. Pawar is an avid reader, writer and music buff.
VIJAY K THADANI
Vijay K. Thadani is the Chief Executive Officer of NIIT Ltd, a leading Global Talent Development Corporation. As the Co-founder of NIIT Group, he has built an organization that is recognised for its visionary role in bringing the benefits of Information Technology, both as a professional skill and as a learning tool, to the masses.
Mr. Thadani led the Group’s globalization efforts since
1991, taking the NIIT flag to over 40 countries. He serves on the Board of NIIT
Technologies Limited, a leading SEI-CMMi Level 5 assessed IT Solutions
organization, servicing customers in the
Mr. Thadani has been actively engaged with many Industry
Associations. The current Chairman of the Confederation of Indian Industry
(CII), Northern Region, Mr. Thadani has also served as President of the Indian
IT industry association, MAIT; chaired the Indian Government’s Committee on
National Information Infrastructure and has been a member of the Strategy
Council of Global Alliance for ICT and Development of the United Nations
Department of Economic and Social Affairs (UNDESA-GAID). He served as the
Chairman of the IT Committee of CII in
Mr. Thadani is the Co-founder of the not-for-profit,
Mr. Thadani also serves on the India Advisory Board for Project Management Institute (PMI) and the Governing Council of All India Management Association (AIMA).
A ‘Distinguished Alumnus’ of the premier Indian Institute of Technology, Delhi, Mr. Thadani was honored with the position of ‘Economic Consultant’ to Chongqing, world’s largest city in the People’s Republic of China.
P. RAJENDRAN
P. Rajendran
Chief Operating Officer and Co-founder of NIIT Ltd, is part of the core team
that has developed the organisation and brought it to its present position of
international standing, since its inception in 1981. He is an alumnus of Indian
Institute of Technology,
Today, Mr. Rajendran leads the People, Infrastructure and Technology initiatives and the School Solutions Business at NIIT. He facilitates the company’s thrust with Governments in many countries for skills development in a public private partnership mode. A people-person and a believer in leveraging Information Technology for Human Resources competitiveness, he has helped NIIT emerge as one of the most exciting places to work. Under his leadership, the Company has received many awards in recognition of its innovative HR practices, including Aon Hewitt’s Best Employers in India- 2011, ‘Best Education Company to Work with’ at Indian Education Awards 2011 and ‘India’s Best Companies to Work for 2011’.
Mr. Rajendran is actively associated with industry associations like CII, NASSCOM and FICCI. He is member of the CII National Council, Chairperson of the Task force on ICT and Skills development in CII Africa Council, member of the CII National Committee on Skills and Human Resources and Chairman of the CII Higher Education Committee.
Mr. Rajendran takes keen interest in the area of innovative deployment of ICT for human development and creation of new jobs.
SUBROTO BHATTACHARYA
Subroto Bhattacharya is a Chartered Accountant and has over 34 years of experience and specializes in finance and management consultancy. He has been part of the core team in several reputed organisations. He was invited to the Company’s Board as an Independent Director in 1998.
Mr. Bhattacharya advises the Company on financial and management issues and is Chairman of the Audit Committee and the Compensation/Remuneration Committee
SURENDRA SINGH
Surendra Singh
has served in the Central and State Governments as an IAS Officer. Starting his
public service in 1959, Mr. Singh has held positions like Special Secretary to
the Prime Minister of India, Cabinet Secretary to the Government of India,
Secretary to the Council of Ministers and Secretary, Ministry of Industry. He
was an Executive Director on the Board of the World Bank, representing
Acknowledging his contribution in civil services, Mr. Singh has been awarded the country’s prestigious civilian honour, Padma Bhushan by the President of India in 2011.
Mr. Singh advises NIIT on internal controls, audit systems, compensation structure and investor relations. He chairs the Shareholders’/ Investors’ Grievances Committee.
SANJAY KHOSLA
Sanjay Khosla
is currently President, Developing Markets, Kraft Foods Inc. and responsible
for the company’s almost US $14 billion business in over 60 countries, covering
Asia Pacific, Latin America, Central and Eastern Europe, Middle East and
Africa. This includes management of the Cadbury business which was acquired by
Kraft in 2010. Before joining Kraft Foods in January 2007, he was the Managing
Director of Fonterra Brands,
Mr. Khosla is an alumnus of the premier IIT,
Mr. Khosla advises the Company on brand building, marketing strategy, remuneration policies and other matters. He is a member of Compensation/ Remuneration Committee.
MS MADHABI PURI BUCH
Ms Madhabi Puri Buch has been associated with the ICICI Group for over 15 years. She was the Managing Director and CEO of ICICI Securities Limited (ISEC) from February 2009 to April 2011. She spearheaded ISEC’s initiatives in Equity Capital Markets, Advisory Services, Institutional Equities and Retail Equities including ICICIdirect.com. Within ICICI Bank, she had looked after various businesses including home loans, bonds and treasury solutions. She is the founder of a trust “Toofless Foundation” that undertakes a variety of initiative for funding grassroot NGOs.
Ms. Madhabi Puri Buch is a graduate in Mathematics from
Ms. Madhabi Puri Buch advises the Company on financial and investment matters. She guides the corporate teams on finance related matters and helps in formulating beneficial investment strategies for the Company
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.50.57 |
|
|
1 |
Rs.79.57 |
|
Euro |
1 |
Rs.66.50 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
|
66 |
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.