|
Report Date : |
20.03.2012 |
IDENTIFICATION DETAILS
|
Name : |
NETWORK SOLUTIONS PRIVATE LIMITED (w.e.f. 06.08.2003) |
|
|
|
|
Formerly Known
As : |
NETWORK SOLUTIONS (BANGALORE) PRIVATE LIMITED |
|
|
|
|
Registered
Office : |
32, Grape Garden, 17th H Main Road, 6th Block,
Koramangala, Bangalore – 560095, Karnataka |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
18.10.1993 |
|
|
|
|
Com. Reg. No.: |
08-014811 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.31.800 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U85110KA1993PTC014811 |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACN4847P |
|
|
|
|
Legal Form : |
Private Limited Liability Company |
|
|
|
|
Line of Business
: |
The company’s primary business segments comprise Networking and
Technical Services. |
|
|
|
|
No. of Employees
: |
Information declined by the management |
RATING & COMMENTS
|
MIRA’s Rating : |
A (62) |
|
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 |
|
Maximum Credit Limit : |
USD 3000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having fine track. Financial
position of the company appears to be sound. Trade relations are reported as
fair. Business is active. Payments are reported to be regular 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.
INFORMATION DECLINED BY
Management Non Co-operative
(Tel No.: 91-80-25508365)
LOCATIONS
|
Registered Office : |
32, Grape Garden, 17th H Main Road, 6th Block, Koramangala,
Bangalore – 560095, Karnataka, India |
|
Tel. No.: |
91-80-25508365/ 25535228/ 25531072 |
|
Fax No.: |
91-80-25520949/ 25523379 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Branch Offices : |
Located at: · Kolkata · Chennai · Hyderabad · Pune · Mumbai · New Delhi |
DIRECTORS
(AS ON 30.09.2011)
|
Name : |
Mr. Praveen Cherian |
|
Designation : |
Managing Director |
|
Address : |
1-B, Eastwood Township, Haralur Road, Off Sarjapur Road, Bangalore –
560102, Karnataka, India |
|
Date of Birth/Age : |
13.12.1969 |
|
Date of Appointment : |
28.12.2007 |
|
DIN No.: |
01991389 |
|
|
|
|
Name : |
Mr. Venkatesh Kumar Ramanujam |
|
Designation : |
Director |
|
Address : |
5C, Rohini Manor Apartment, 2nd Main 1st Cross
Suddunguntepalya CVR NGR, Bangalore – 560093, Karnataka, India |
|
Date of Birth/Age : |
26.01.1968 |
|
Date of Appointment : |
16.12.2009 |
|
DIN No.: |
02911268 |
|
|
|
|
Name : |
Mr. Ramaseshan Kothandaraman |
|
Designation : |
Director |
|
Address : |
No.F002, Block E, Adarsh Tytham Patts Pandurangar BG Road, Bangalore –
560076, Karnataka, India |
|
Date of Birth/Age : |
02.10.1968 |
|
Date of Appointment : |
26.03.2010 |
|
DIN No.: |
03025474 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 30.09.2011)
|
Names of Shareholders |
|
No. of Shares |
|
|
|
|
|
IBM South Asia Holdings Limited,
Mauritius |
|
3179999 |
|
IBM India Private Limited, India |
|
1 |
|
|
|
|
|
Total |
|
3180000 |
(AS ON 30.09.2011)
Equity Shares Break – up
|
Category |
|
Percentage |
|
|
|
|
|
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
|
100.00 |
|
|
|
|
|
Total
|
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
The company’s primary business segments comprise Networking and
Technical Services. |
GENERAL INFORMATION
|
No. of Employees : |
Information declined by the management |
|
|
|
|
Bankers : |
Not Available |
|
|
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Price Waterhouse and Company Chartered Accountant |
|
Address : |
The Millenia,
Tower D, # 1 and 2 Murphy Road, Ulsoor, Bangalore - 560008, Karnataka, India. |
|
PAN No.: |
AAHFP0187A |
|
|
|
|
Holding Company : |
IBM South Asia Holdings Limited,
Mauritius |
|
|
|
|
Ultimate Holding
Company: |
International Business Machines Corporation, USA |
|
|
|
|
Fellow
Subsidiary Companies: |
· IBM India Private Limited · IBM Daksh Business Process Services Private Limited · IBM Singapore Pte Limited · IBM World Trade Corporation · IBM China/Hong Kong Limited · IBM Japan Limited · IBM Malaysia Sdn. Bhd · IBM Indonesia · IBM Thailand Company Limited · IBM Philippines · IBM Australia Limited |
CAPITAL STRUCTURE
(AS ON 31.03.2011)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
5000000 |
Equity Share |
Rs.10/- each |
Rs.50.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
3180000 |
Equity Share |
Rs.10/- each |
Rs.31.800
Millions |
|
|
|
|
|
NOTE:
1) Of the above
3,179,999 Equity Shares of Rs. 10 each are held by IBM South Asia Holdings
Limited, Mauritius, the Holding Company
2) Of the above, 2,650,000
Equity Shares of Rs.10 each have been issued as fully Paid up Bonus Shares by
Capitalisation of Profits
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 |
31.800 |
31.800 |
31.800 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
719.026 |
590.531 |
517.625 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
750.826 |
622.331 |
549.425 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.070 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
60.030 |
|
|
TOTAL BORROWING |
0.000 |
0.000 |
60.100 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
750.826 |
622.331 |
609.525 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
31.738 |
32.566 |
44.112 |
|
|
Capital work-in-progress |
0.027 |
0.027 |
12.060 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.025 |
|
|
DEFERREX TAX ASSETS |
32.718 |
51.468 |
21.409 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
73.262
|
43.271 |
46.418 |
|
|
Sundry Debtors |
395.257
|
388.142 |
575.346 |
|
|
Cash & Bank Balances |
165.763
|
53.989 |
41.286 |
|
|
Other Current Assets |
39.025
|
39.394 |
47.132 |
|
|
Loans & Advances |
337.062
|
383.342 |
179.326 |
|
Total
Current Assets |
1010.369
|
908.138 |
889.508 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
142.277
|
212.106 |
210.624 |
|
|
Other Current Liabilities |
152.812
|
133.977 |
127.991 |
|
|
Provisions |
28.937
|
23.785 |
18.974 |
|
Total
Current Liabilities |
324.026
|
369.868 |
357.589 |
|
|
Net Current Assets |
686.343
|
538.270 |
531.919 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
750.826 |
622.331 |
609.525 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
|
|
|
|
|
|
|
INCOME |
1756.600 |
2002.500 |
2168.400 |
|
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
208.800 |
129.300 |
158.000 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
0.600 |
2.400 |
1.100 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION |
208.200 |
126.900 |
156.900 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
13.400 |
17.600 |
16.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
194.800 |
109.300 |
140.200 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
66.300 |
36.400 |
43.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX |
128.500 |
72.900 |
96.300 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
474.400 |
401.500 |
305.200 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED TO
THE B/S |
602.900 |
474.400 |
401.500 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Service Income |
NA |
28.442 |
48.778 |
|
|
TOTAL EARNINGS |
NA |
28.442 |
48.778 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Purchases of Traded Goods |
NA |
390.028 |
479.248 |
|
|
|
Capital Good |
NA |
5.369 |
12.960 |
|
|
TOTAL IMPORTS |
NA |
395.397 |
492.208 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
40.41 |
22.93 |
30.29 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
Return on Total Assets (PBT/Total Assets} |
(%) |
18.69
|
11.62 |
15.02 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.26
|
3.36 |
0.26 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.43
|
0.59 |
0.76 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.12
|
2.46 |
2.49 |
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITORS
DETAILS:
|
Particulars |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
(Rs. In Millions) |
||
|
Sundry Creditors
|
|
|
|
|
- Creditors due small micro
enterprises |
8.486 |
5.053 |
2.364 |
|
- Creditors due others |
133.791 |
207.053 |
208.260 |
|
|
|
|
|
|
Total |
142.277
|
212.106 |
210.624 |
RESULTS OF
OPERATIONS
Revenue has gone
down by 12% from Rs.2002.500 Millions to Rs.1756.600 Millions due to drop in cabling
business. Profits before tax have gone up by about 78% due to write back of
provision and interest income.
BUSINESS OPERATION
AND OUTLOOK
The recognition
from our partners and customers continued unabated.
Network Solutions
has emerged as the delivery hub for Integrated Technology Services (ITS) and
there is a greater emphasis on our core capabilities. Integrated Managed
Services (iMS) part of ITS is a bouquet of service products that allow
customers to selectively out-task IT management services. Delivered remotely
iMS shifts client's focus from fundamental IT operational processes, to
business aligned IT service management processes. It provides reduced
operational cost, improves business service and manages business risk by
driving visibility, control and automation to customers' IT support process.
With the vision to
be one of the most efficient delivery engine for ITS, IMS is focused on
delivery excellence and creating an unparalleled value proposition for the
customers.
CONTINGENT LIABILITIES
(As on 31.03.2011)
(i) Sales tax matters [Net of amount paid under protest Rs.2618.200
Millions (2010: Rs.2141.200 Millions)] 1879.500 Millions
FIXED ASSETS:
· Computer Equipment
· Software
· Furniture and Equipment
· Vehicles
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.50.12 |
|
|
1 |
Rs.79.37 |
|
Euro |
1 |
Rs.60.00 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
62 |
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.