MIRA INFORM REPORT
|
Report Date : |
05.09.2012 |
IDENTIFICATION DETAILS
|
Name : |
HCL INFOSYSTEMS LIMITED |
|
|
|
|
Registered
Office : |
806, Siddharth,
96, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
30.06.2011 |
|
|
|
|
Date of
Incorporation : |
17.04.1986 |
|
|
|
|
Com. Reg. No.: |
55-23955 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 445.800
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L72200DL1986PLC023955 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
DELH03832D |
|
|
|
|
Legal Form : |
Public Limited
Liability Company. The Company’s Shares are Listed on the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturing of
Computer Systems and Computer Peripherals. |
|
|
|
|
No. of Employees
: |
7357 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (64) |
|
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 78000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well
established and a reputed company having good track record. Financial
position appears strong. But in the current year there appears sharp dip in the
profitability of the company. However, trade relations are reported to be
fair. Business is active. Payment are reported to be regular and as per
commitments. The company can
be considered for normal business dealings at usual trade terms and conditions
and as per market condition. |
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 – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces
of its past autarkic policies remain. Economic liberalization, including industrial
deregulation, privatization of state-owned enterprises, and reduced controls on
foreign trade and investment, began in the early 1990s and has served to
accelerate the country's growth, which has averaged more than 7% per year since
1997. India's diverse economy encompasses traditional village farming, modern
agriculture, handicrafts, a wide range of modern industries, and a multitude of
services. Slightly more than half of the work force is in agriculture, but
services are the major source of economic growth, accounting for more than half
of India's output, with only one-third of its labor force. India has
capitalized on its large educated English-speaking population to become a major
exporter of information technology services and software workers. In 2010, the
Indian economy rebounded robustly from the global financial crisis - in large
part because of strong domestic demand - and growth exceeded 8% year-on-year in
real terms. However, India's economic growth in 2011 slowed because of persistently
high inflation and interest rates and little progress on economic reforms. High
international crude prices have exacerbated the government's fuel subsidy
expenditures contributing to a higher fiscal deficit, and a worsening current
account deficit. Little economic reform took place in 2011 largely due to
corruption scandals that have slowed legislative work. India's medium-term
growth outlook is positive due to a young population and corresponding low
dependency ratio, healthy savings and investment rates, and increasing
integration into the global economy. India has many long-term challenges that
it has not yet fully addressed, including widespread poverty, inadequate
physical and social infrastructure, limited non-agricultural employment
opportunities, scarce access to quality basic and higher education, and
accommodating rural-to-urban migration.
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
A1 + [Short Term] |
|
Rating Explanation |
Having very strong degree of safety regarding timely payment of
financial obligation it carry lowest credit risk. |
|
Date |
25.03.2011 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered
Office : |
806, Siddharth,
96, |
|
Tel. No.: |
91-11-26444305 /
26464921 / 26489078 / 26418567-69 / 26430051 |
|
Fax No.: |
91-11-26212687 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate
Office : |
E-4, 5 and 6, Sector XI, Noida - 201 301, |
|
Tel. No.: |
91-120-2526490 /
2526518 / 19 / 2520977 |
|
Fax No.: |
91-120-2525196 /
2550923 |
|
E-Mail : |
|
|
|
|
|
Plants : |
·
R.S. No. 34/4 to 34/7 and Part of 34/1, Sedarpet,
·
R.S. Nos: 107/5, 6 and 7, Main Road, Sederapet,
Puducherry - 605 111, India ·
Plot No.77, 78 South Phase, Ambattur Industrial
Estate, Chennai – 600 058, Tel No: 91-44-26258444 / 2625 8292 / 2625
8969 Fax No: 91-44-2624 8160 Email : chnplant@hclp.com ·
Plot Nos.1, 2, 27 and 28, Sector 5,
11E-Pantnagar, Rudrapur, District Udham Singh Nagar - 263 145, ·
Spl-A2, Industrial Estate, Thattanchavadi, Industrial area, Tel. No. 91-413-2248284 / 2248284 /
2248587 /2248382 / 2249281 Fax. No. 91-413-2249586 E-mail. sridhar@help.com ·
F - 214, G - 215, EPIP, Sitapura Industrial Area,
Jaipur – 302 022, Rajasthan, India |
|
|
|
|
Branch Office
: |
|
DIRECTORS
AS ON 30.06.2011
|
Name : |
Mr. Ajai Chowdhry |
|
Designation : |
Chairman and Whole-time Director |
|
Qualification : |
Graduate in Electronic and
Telecommunication Engineering, BE |
|
Date of Appointment : |
November 1999 |
|
|
|
|
Name : |
Mr. Harsh Chitale |
|
Designation : |
Chief Executive Officer and Whole-time
Director |
|
|
|
|
Name : |
Mr. J.V. Ramamurthy |
|
Designation : |
Chief Operating Officer and Whole-time
Director |
|
|
|
|
Name : |
Mr. Pradeep K. Khosla |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. V N Koura |
|
Designation : |
Director |
|
Date of
Appointment : |
24.01.2006 |
|
|
|
|
Name : |
Mr. E.A. Kshirsagar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. D. S. Puri |
|
Designation : |
Director |
|
Qualification : |
Commerce Graduate – |
|
|
|
|
Name : |
Mrs. Anita Ramachandran |
|
Designation : |
Director |
|
Qualification : |
Management Graduate from Jamnalal Bajaj
Institute |
|
|
|
|
Name : |
Mr. Nikhil Sinha |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Ajay Vohra |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Sushil Kumar Jain |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. Sandeep Kanwar |
|
Designation : |
Chief Financial Officer |
|
Qualification
: |
F.C.A. |
|
Date of
Appointment : |
01.03.1988 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.06.2012
|
Category of
Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
453,435 |
0.20 |
|
|
112,699,923 |
50.57 |
|
|
113,153,358 |
50.77 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
113,153,358 |
50.77 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
4,329,025 |
1.94 |
|
|
4,101,081 |
1.84 |
|
|
61,514,931 |
27.60 |
|
|
69,945,037 |
31.38 |
|
|
|
|
|
|
6,661,082 |
2.99 |
|
|
|
|
|
|
27,261,710 |
12.23 |
|
|
4,723,425 |
2.12 |
|
|
1,135,017 |
0.51 |
|
|
1,065,017 |
0.48 |
|
|
70,000 |
0.03 |
|
|
39,781,234 |
17.85 |
|
Total Public shareholding (B) |
109,726,271 |
49.23 |
|
Total (A)+(B) |
222,879,629 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
222,879,629 |
- |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of Computer Systems and Computer Peripherals. |
||||||||
|
|
|
||||||||
|
Products : |
Networking
Products ·
Hubs ·
Switches ·
Access
Products ·
Modules/converters Terminal Products ·
Turboterm ·
Graph
Term ·
Multilingual
Terminal Structured Cabling ·
Patch
Cord ·
Patch
Panel ·
Wall
Outlet Peripherals ·
Monitor ·
Keyboards ·
Multi
Media ·
Touch
Screen Monitor/Kiosks Generic Names of
Three Principal Products/Services of Company (As per monetary terms) are :
|
PRODUCTION STATUS (As on 30.06.2011)
|
Class of Goods |
Units |
Installed
Capacity |
Actual
Production |
|
Computers/Micro Processor Based Systems |
Nos. |
1230000 |
706382 |
|
Data Graphic/Display Monitor/Terminals,
Hubs, etc. |
Nos. |
451000 |
235317 |
Note: Installed
capacity being a technical matter has been certified by the management.
GENERAL INFORMATION
|
No. of Employees : |
7357 (Approximately) |
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|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
·
State Bank of India ·
Canara Bank ·
HDFC Bank Limited ·
ICICI Bank Limited ·
Societe Generale ·
Standard Chartered Bank ·
State Bank of Patiala ·
Hongkong and Shanghai Banking Corporation Limited
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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|
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Facilities : |
Notes 1.
The Company issued 800 Rated Taxable Secured
Redeemable Non- Convertible Debentures of face value of Rs.1.000 million
each, aggregating to Rs.800.000 millions, at a coupon rate of 12.75% per
annum payable annually on private placement basis to Life Insurance
Corporation of 2.
Cash Credits along with non-fund based facilities
from Banks are secured by way of hypothecation of stock-in-trade, book debts as
first charge and by way of second charge on all the immovable and movable
assets of the Company. The charge ranks pari-passu amongst Bankers. 3.
Other Long Term Loan is secured by way of first
charge on identified Information Technology and Telecommunication assets. 4.
Short Term Loan from Bank was secured by way of
subservient charge on the current assets of the Company. 5.
Amount payable within one year Rs.56.300 millions
(2010 – Rs.50.300 millions).
Note Amount payable
within one year Rs.142.300 millions (2010 – Rs.137.300 millions). |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Price Waterhouse Chartered Accountants |
|
Address : |
Gurgaon, |
|
|
|
|
Wholly Owned Subsidiaries : |
·
HCL Infinet Limited ·
HCL Infocom Limited ·
Digilife Distribution and Marketing Services Limited
(Formerly known as HCL Security Limited) ·
RMA Software Park Private Limited ·
HCL Insys Pte. Limited, ·
Pimpri Chinchwad eServices Limited ·
HCL Investments Pte. Limited, ·
HCL Infosystems South Africa Pty. Limited |
|
|
|
|
Others Subsidiaries: |
·
HCL Infosystems MEA FZCO, ·
NTS Technology LLC, ·
HCL Infosystems MEA LLC, |
|
|
|
|
Other related
parties with whom transactions have taken place during the year and/or where
balances exist : |
·
HCL Technologies Limited ·
HCL Comnet Limited ·
HCL Comnet Systems and Services Limited ·
Erstwhile HCL Peripherals Limited (Merged with
HCL Corporation Limited w.e.f. March 12, 2010) ·
HCL BPO Services (NI) Limited ·
HCL America Inc. ·
HCL EAI Services Limited |
|
|
|
|
Others (where
significant influence exists) : |
·
·
SSN Trust (Formerly known as Shri Siva
Subramaniam Nadar Educational and Charitable Trust) |
CAPITAL STRUCTURE
As on 30.06.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
550000000 |
Equity Shares |
Rs.2/- each |
Rs. 1100.000 millions |
|
500000 |
Preference Shares |
Rs.100/- each |
Rs. 50.000 millions |
|
|
Total |
|
Rs. 1150.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
222879629 |
Equity Shares |
Rs.2/- each |
Rs. 445.800
millions |
|
|
|
|
|
Notes
·
Paid up share capital includes:
1.
50447295 Equity Shares of Rs.2/- each issued
pursuant to contract without payment being received in cash.
2.
53182765 Equity Shares of Rs.2/- each Bonus shares issued
from Securities Premium Account.
3.
11629885 Equity Shares of Rs.2/- each issued
pursuant to the exercise of options granted under Employee Stock Option Scheme
2000.
4.
87221 Equity Shares of Rs.2/- each issued pursuant
to the exercise of options granted under Employee Stock Based Compensation Plan
2005.
·
Of the above subscribed shares, 95500651 Equity
Shares of Rs.2/- each are held by Guddu Investments (Pondi) Private Limited
(GIPPL). HCL Corporation Limited held 90879984 Equity Shares of Rs.2/- each as
on June 30, 2010, these shares pursuant to a composite scheme of amalgamation
and arrangement between HCL Corporation Limited, Slocum Investment (
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF
FUNDS |
30.06.2011 |
30.06.2010 |
30.06.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
445.800 |
436.500 |
342.400 |
|
|
2] Share Application Money |
0.000 |
176.700 |
0.000 |
|
|
3] Reserves & Surplus |
19024.600 |
18609.400 |
10981.200 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
19470.400 |
19222.600 |
11323.600 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1104.300 |
1520.200 |
1018.500 |
|
|
2] Unsecured Loans |
4671.100 |
3579.100 |
1250.000 |
|
|
TOTAL BORROWING |
5775.400 |
5099.300 |
2268.500 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
25245.800 |
24321.900 |
13592.100 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
2320.600 |
1712.200 |
1506.300 |
|
|
Capital work-in-progress |
199.500 |
256.900 |
95.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
7050.500 |
9111.900 |
2761.000 |
|
|
DEFERREX TAX ASSETS |
168.000 |
89.400 |
40.800 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
5862.500
|
8354.000
|
8882.600 |
|
|
Sundry Debtors |
20842.600
|
20973.300
|
14982.600 |
|
|
Cash & Bank Balances |
2346.900
|
2926.100
|
2029.900 |
|
|
Other Current Assets |
3880.600
|
2492.900
|
1023.500 |
|
|
Loans & Advances |
2987.500
|
2827.100
|
1919.000 |
|
Total
Current Assets |
35920.100
|
37573.400
|
28837.600 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
11520.900
|
13970.500
|
11735.600 |
|
|
Other Current Liabilities |
7857.800
|
9110.900
|
7094.100 |
|
|
Provisions |
1034.200
|
1340.500
|
818.900 |
|
Total
Current Liabilities |
20412.900
|
24421.900
|
19648.600 |
|
|
Net Current Assets |
15507.200
|
13151.500
|
9189.000 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
25245.800 |
24321.900 |
13592.100 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
30.06.2011 |
30.06.2010 |
30.06.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Business Income |
109369.500 |
119530.100 |
122107.300 |
|
|
|
Other Income |
871.900 |
589.000 |
336.000 |
|
|
|
TOTAL (A) |
110241.400 |
120119.100 |
122443.300 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Goods and Services Sold |
98287.400 |
108696.300 |
111285.000 |
|
|
|
Personnel |
4483.100 |
3684.100 |
3259.800 |
|
|
|
Administration, Selling, Distribution and others |
3865.500 |
3334.000 |
3447.300 |
|
|
|
Repairs |
162.700 |
126.500 |
93.300 |
|
|
|
TOTAL (B) |
106798.700 |
115840.900 |
118085.400 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
3442.700 |
4278.200 |
4357.900 |
|
|
|
|
|
|
|
|
|
Less |
FINANCE CHARGES (D) |
739.700 |
374.400 |
446.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2703.000 |
3903.800 |
3911.300 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
332.000 |
217.300 |
172.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
2371.000 |
3686.500 |
3738.600 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
598.700 |
1071.000 |
1134.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1772.300 |
2615.500 |
2604.400 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
8333.200 |
8013.400 |
7028.100 |
|
|
|
|
|
|
|
|
|
Add / less |
Adjustments
due to scheme of arrangement -as
on July 1, 2008 |
0.000 |
0.000 |
5.500 |
|
|
|
Adjustment
as per scheme of arrangement |
0.000 |
0.000 |
(22.300) |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Debenture Redemption Reserve |
40.000 |
40.000 |
40.000 |
|
|
|
Proposed Dividend |
445.800 |
436.500 |
256.800 |
|
|
|
Corporate Dividend Tax on Proposed Dividend |
72.300 |
72.500 |
43.600 |
|
|
|
Interim Dividend |
1317.200 |
1270.800 |
855.900 |
|
|
|
Corporate Dividend Tax on Interim Dividend |
218.800 |
214.300 |
145.500 |
|
|
|
Transfer to General Reserve |
177.200 |
261.600 |
260.500 |
|
|
BALANCE CARRIED
TO THE B/S |
7834.200 |
8333.200 |
8013.400 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Commission |
61.100 |
15.300 |
6.500 |
|
|
|
FOB value of exports (including deemed exports) |
97.900 |
578.800 |
687.500 |
|
|
|
Others (including reimbursement of expenses) |
647.700 |
437.800 |
260.500 |
|
|
TOTAL EARNINGS |
806.700 |
1031.900 |
954.500 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw materials and components |
13265.600 |
16860.100 |
16340.900 |
|
|
|
Stores & Spares |
421.900 |
462.400 |
360.100 |
|
|
|
Capital Goods |
22.100 |
0.200 |
2.000 |
|
|
|
Traded items |
4862.600 |
4623.700 |
4505.600 |
|
|
TOTAL IMPORTS |
18572.200 |
21946.400 |
21208.600 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) Basic Diluted |
8.08 8.08 |
12.86 12.84 |
15.21 15.21 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.09.2011 |
31.12.2011 |
31.03.2012 |
30.06.2012 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
26827.800 |
25719.600 |
25017.100 |
25551.800 |
|
Total Expenditure |
26563.800 |
25497.600 |
24629.200 |
25416.300 |
|
PBIDT (Excl OI) |
264.000 |
222.000 |
387.900 |
135.500 |
|
Other Income |
239.100 |
155.600 |
184.000 |
259.400 |
|
Operating Profit |
503.100 |
377.600 |
571.900 |
394.900 |
|
Interest |
156.400 |
189.300 |
216.300 |
238.800 |
|
PBDT |
346.700 |
188.300 |
355.600 |
156.100 |
|
Depreciation |
99.100 |
102.500 |
104.000 |
125.600 |
|
Profit Before Tax |
247.600 |
85.800 |
251.600 |
30.500 |
|
Tax |
85.700 |
-5.30 |
51.400 |
5.000 |
|
Profit After Tax |
161.900 |
91.100 |
200.200 |
25.500 |
|
Net Profit |
161.900 |
91.100 |
200.200 |
25.500 |
KEY RATIOS
|
PARTICULARS |
|
30.06.2011 |
30.06.2010 |
30.06.2009 |
|
PAT / Total
Income |
(%) |
1.61
|
2.18
|
2.13 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
2.17
|
3.08
|
3.06 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
6.20
|
9.38
|
12.32 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.12
|
0.19
|
0.33 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.35
|
1.54
|
1.94 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.76
|
1.54
|
1.47 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by
Info Agents |
Available in Report
(Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
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 |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm / promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
No |
|
31] |
PAN of Proprietor/Partner/Director, if available |
No |
|
32] |
Date
of Birth of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
PERFORMANCE
The consolidated
net revenue of the Company was Rs.115208.300 millions as against Rs.121144.400
millions in the previous year. The consolidated profit before tax was
Rs.2294.400 millions as against Rs.3464.600 millions in the previous year.
The Directors are
recommend final Dividend of Rs.2 per share (100%) on the fully paid-up equity
shares of Rs.2/- each for the financial year ended on 30th June, 2011. During
the first nine months, three interim (quarterly) dividends aggregating to Rs.6
per share (300%) were declared, taking the total dividend for the year 2010-11
to Rs.8 per share of Rs.2/- (400%).
ACQUISITIONS
HCL Infosystems MEA FZCO,
The Company on 4th
July, 2010 acquired a majority equity stake (60%) in HCL Infosystems MEA FZCO
(formerly known as NTS FZCO), a
Techmart Telecom Distribution FZCO,
The Company on 3rd
February, 2011 acquired 20% equity stake in Techmart Telecom Distribution FZCO
(Techmart), a
Reorganization of business
The Company has
transferred its Digital Entertainment business as a going concern on slump sale
basis, to Digilife Distribution and Marketing Services Limited (formerly known
as HCL Security Limited), the wholly owned subsidiary, for a consideration of
Rs.350.000 millions. The Transfer was approved by the Shareholders by way of Postal
Ballot.
The Company has
acquired the Security and Surveillance business of Digilife Distribution and
Marketing Services Limited as a going concern on slump sale basis for a
consideration of Rs.60.000 millions.
The above
transactions became effective from 1st August, 2011.
ISSUE OF SHARES
During the year,
the Company allotted 4,620,667 equity shares of Rs.2/- each at a price of
Rs.152.90 per equity
share including a
premium of Rs.150.90 per equity share to a Promoter, on exercise of option of
conversion of equal number of warrants (which were allotted in October 2009, on
payment of 25% subscription money amounting to Rs.176.600 millions) on receipt
of balance 75% subscription money amounting to Rs.529.900 millions. After
allotment of the aforesaid shares, there are no outstanding warrants.
During the year,
460 equity shares of Rs.2/- each were allotted under Employee Stock Option
Scheme 2000.
AWARDS AND
RECOGNITION
The year that went
by witnessed numerous recognitions for the Company as we bagged several awards
and accolades as under:
1.
Ranked 2nd in the latest Greenpeace
Green Electronics Ranking.
2.
HCL Green Data Center was awarded 1st
Ever LEED Platinum Certification in India by US Green Building Council.
3.
Bagged VAR India 2010 award for Top Distributor of
the Year and Best Projector – DLP (In-Focus)
4.
Awarded CXO Award 2010-The IT Chapter in the
category of ‘Indian Hardware Brand of the Year’ by Bloomberg UTV.
5.
Topped Employee Satisfaction Chart for the 6th
Consecutive Year as per DQ Survey, 2010
6.
DQ - IDC ranks the Company #2 Domestic ICT Company.
The Company was also rated among Top 10 ICT Companies in
7.
Awarded Dun and Bradstreet Rolta Corporate Award
under Computer Hardware and Peripherals Category
8.
DQ-IDC rates your Company as #1 in IT Services 2010
9.
This year the scope of management systems
certification (ISO9001:2008, ISO14001:2004 and OHSAS18001:2007) increased to
include Hardware products like Hand Held Terminal, Turbo Terminal, Sharps
blaster etc at Puducherry Manufacturing Organisation, Uttaranchal Manufacturing
Organisation and Noida Manufacturing Organization.
10.
Globally HCL Notebook stood in 8th position with
4.04 points in Green Electronic Survey of Greenpeace released in January 2011.
11.
Subject bags 5th position in
12.
HCL Desktops rated No. 1 in the Dataquest Channels
– Cyber Media Research Channel Satisfaction Survey
13.
Subject awarded Best Telecom Support Service
Company at the 5th National Telecom Award by CMAI Association of India
14.
Subject awarded ‘Most Promising New Technology for
Urban Applications’ at the Municipalika 2011
15.
Subject awarded as a ‘Powerbrand’ of
16.
The Company was selected as Business Superbrands of
India.
17.
Mr. Ajai Chowdhry, Chairman of your Company was
felicitated with many prestigious awards as under:
- The prestigious Padma Bhushan awarded
by Doctor Pratibha Patil, the Honourable President of India.
- ‘Honoris Causa Doctorate’ of Science
for his contribution to the Indian IT Industry by IIT Roorkee
- ‘Electronics Man of the Year’ by the
ELCINA-EFY Awards Committee
- The CNBC Asia Business Leader Award
2010 for Viewers Choice category.
- “India Innovator of the Year Award” at
the 6th edition of the CNBC TV18 India Business Leader Awards 2010
MANAGEMENT
DISCUSSION AND ANALYSIS
OVERVIEW
The Year 2010-11
has seen a difficult economy with both enterprises and consumers being cautious
in decision
making and
discretionary spends. Inflationary pressures leading to aggressive rate hikes
by the RBI led to a slowing economy and growth momentum clearly tapered off by
the end of the year.
The company has
faced some significant growth and operational challenges in the year. Some of
the key challenges were.
·
Decline in sales of telecom products due to certain
gap in partner's portfolio. However the introduction of Dual Sim phones has led
to strong performance in the month of June.
·
Profitability has been impacted due to continued
losses in Consumer Computing. However delayering of channel and launch of
accessories in the last quarter has yielded positive results.
·
Cash has been tied in businesses like System
Integration due to excessive delay in government decision cycles in the last 9
months. As they had reported earlier in a release made on their website, a
government investigating agency has collected certain documents from the
company, pertaining to a material contract awarded to it by a government company.
The CAG has also commented on this contract in a report.
·
Business like HCL Infinet, Security and CDC have
continued to grow but not adequately scaled in the last few years. Actions were
taken on each of these businesses.
- Signing divestment agreement with
Tikona and
- Rationalization of unprofitable CDC
franchises.
- Merging of Security with OA business
However in spite
of these challenges they achieved some significant milestones such as.
·
Company achieved snag free roll out of many prestigious
projects of national importance like RGI, AFNET and implementation of core
banking systems for Co-operative banks like HPSCB.
·
Large outsourcing deals like PCMC, MPPDS and
Financial Inclusion were won by the company. These deals are transactions based
and likely to increase in the future.
·
HCL Learning launched multimedia classroom
offerings – Digi School and Xcelerate.
·
Operations of HCL Global Touch were started to
offer remote customer support to overseas customers.
·
Acquisitions in the Middle East and opening of
offices in
·
DQ Survey rated the company #1 rating in Customer
Satisfaction.
·
Company rated as one of the Best employers in the
country and was once again selected as Business Super brands.
As the company
embarks on a new year, it has identified improvement levers for each businesses
with a rigorous
execution plan. It
has also identified strategic initiatives as the way forward to change our
trajectory both in the next 2-3 years and in the longer term. These include:
1.
Investment in Growth Drivers that the company
believes are next big growth opportunities for HCL where these new businesses
can be incubated and brought to scale quickly.
2.
Organization Transformation program 'ASPIRE' where
key excellence initiatives have been kick started in different functional areas
to build organization effectiveness and improve Working Capital and acquire new
organization capabilities to make the Transformation successful.
The Company's
Growth Drivers are supported by clear market trends and the company's
operational strengths to
leverage these
trends such as:
·
Adoption of cloud computing by enterprises and
hosted applications by SMBs. As organizations move towards more optimized
investments, they want to move ahead for more of opex than capex based model.
·
Adoption of mobility devices like Tablets.
Enterprise Mobility is gaining steam as businesses world over come to terms
with real-time information/solution be it customer support or sales force
automation.
·
Role of IT in delivering quality education is
getting more and more pronounced.
·
Large scale e-governance projects will witness
increased adoption with online delivery of citizen services and Document
Management Services (DMS) and digital imaging technologies.
·
Growth in various lifecycle managed services for
digital solutions used by enterprises and consumers, e.g. Managed Print media
services, Remote Infrastructure Management.
BUSINESS OUTLOOK
The economy
decisively slowed down in the second half of FY 10-11. Growth momentum during
the period tapered off in all key sectors. Government project execution was
sluggish and inflation continued to be high and the continuous rate hikes drove
down capacity expansion in most sectors.
The outlook for FY
11- 12 remains cautious about the country's economic outlook in the short term
amid high inflation and delays in government decisions hurting overall business
activities.
·
HCL Learning - HCL's Career Development Centres (CDC) offer
IT courses in over 60 centres across
·
Digital Lifestyle - HCL continues to
grow Digital Lifestyle products distribution business by adding new products to
its portfolio of consumer electronics and mobile accessories. With increase in
size of
·
Office Automation – Office Automation
(OA) business addresses the requirements of Audio-Visual Systems, EPABX/VoIP
solutions, Imaging and Printing solutions, Media and Entertainment solutions
and Tracking solutions required by various enterprises and governments. The
company has also created new services like managed print and media services.
Growth in sale of Office Automation products like Printers, Projection Systems
and AVSI systems is expected to slow down as businesses optimize capex
investments in near term. However demand would be high in managed services like
print services etc.
·
Consumer and
Desktop and Laptop market is expected to show slow growth and pricing
pressure in near term with decrease in consumer spending and new products like
Tablets eating market share. However, long term growth story of PC market still
remains intact as PC penetration in the country is still just about 4% (compare
this with mobile phone penetration of over 60%) and broadband penetration is
still under 1% and a rapid growth in the same expected over next 4-5 years.
In computing, besides PCs, the company's Enterprise Business Unit drives sale of
hardware like desktops, laptops, S4N (server, storage, security, network)
products and System Integration solutions to Government, enterprises and Small
and Medium Business (SMB) customers. In the near term, even this business is
likely to face a slow down with a tightening of the economy. However this unit
is expected to show a consistent growth in the long term as SMB market grows in
India and both government and Enterprises continue to seek efficiencies using
IT and with new technologies of mobility and cloud computing.
SEGMENT
PERFORMANCE
The company has
identified three primary segments namely Computer Systems and related products
and services, Telecommunication and Office Automation and Internet and related
services.
Computer Systems
and Related Products and Services
The segment
operations comprise of manufacturing of computer hardware systems, providing
comprehensive Systems Integration, Roll out and Infrastructure management
solutions in different Industry verticals, providing IT services including
maintenance and facility management and ICT training. The subsidiary HCL Insys
Pte Limited,
Segment revenues
in FY 2011 were Rs.36910.000 millions as against Rs.36430.000 millions in
previous year.
Segment PBIT in FY
2011 was Rs.1180.000 millions as against Rs.1900.000 millions in previous year.
PBIT as a % to sales was 3.2% as against 5.2% in the previous year. Delay in
customer decision / acceptances had resulted in cost overruns and receivables
provisioning impacted the margins of this segment.
Capital employed
in the segment as at June 30, 2011 was Rs.13630.000 millions as against
Rs.12150.000 millions as at June 30, 2010.
Telecommunication
and Office Automation
The segment
operations comprise of distribution of telecommunication and other digital
lifestyle products, office automation products and related comprehensive
maintenance and allied services. The subsidiary HCL Security Limited (known as
Digilife Distribution and Marketing services Limited w.e.f August 1, 2011) and
HCL Investment Pte Limited, Singapore, with its joint venture Techmart Telecom
Distribution FZCO, Dubai, form part of Telecommunication and Office Automation
segment.
Segment revenues
in FY 2011 were Rs.78050.000 millions as against Rs.85290.000 millions in the
previous year. Decline in the telecom handset distribution business, a dominant
portion of this segment, led to de-growth in this segment. Office Automation
business reported a growth of 14% over last year.
Segment PBIT in FY
2011 was Rs.1930.000 millions as against Rs.2160.000 millions in the previous
year. PBIT as % to sales was 2.5% in FY 2011, the same as in the previous year.
Capital employed
in the segment as at June 30, 2011 was Rs.3100.000 millions as against
Rs.2030.000 millions as at June 30, 2010.
Internet and
Related Services
The segment
provides Internet and related services through the Company's wholly owned
subsidiary HCL Infinet Limited to business enterprises. The offerings include
Internet access services, virtual private network and other connectivity
services.
The Company had
signed a Share Purchase Agreement with a Buyer in January, 2011 for the sale of
its equity stake in HCL Infinet Limited, which is accordingly identified as
discontinuing operation.
The sale/transfer
of the entire equity stake in HCL Infinet Limited shall be given effect on
receipt of necessary regulatory approvals. Accordingly, gain amounting to
Rs.224.000 millions as on June 30, 2011 arising on sale of HCL Infinet Limited
in consolidated results will be accounted for on consummation of this
transaction.
Segment Revenue in
FY 2011 was Rs.750.000 millions as against Rs.770.000 millions in the previous
year. Segment PBIT in FY 2011 was Rs.(110.000) millions as against Rs.(140.000)
millions in the previous year.
CONTINGENT LIABILITIES
a) Claims against the Company not acknowledged as debts:
|
Particulars |
As on 30.06.2011 Rs. in millions |
|
Sales Tax* |
541.200 |
|
Excise* |
93.200 |
|
Income Tax* |
39.500 |
|
Industrial Disputes, Civil Suits and Consumer Disputes |
86.000 |
* Includes sum of
Rs.91.200 millions deposited by the Company against the above.
The amounts shown
in the item (a) represents the best possible estimates arrived at on the basis of
available information. The uncertainties and possible reimbursements are
dependent on the out come of the different legal processes which have been
initiated by the Company or the claimants as the case may be and therefore
cannot be predicted accurately.
b) (i) Corporate
Guarantee of Rs.358.800 millions was given to a Bank for working capital
facilities sanctioned to a 100% subsidiary, HCL Insys Pte. Limited,
(ii) Corporate
Guarantee of Rs.200.000 millions has been given to a Bank for working capital
facilities sanctioned to a 100% subsidiary, Digilife Distribution and Marketing
Services Limited (Formerly known as HCL Security Limited) against which the
total amount utilised as at June 30, 2011 is Rs.85.800 millions
(iii) Corporate
Guarantee of Rs.65.000 millions was given to a Bank for working capital
facilities and Rs.61.000 millions was given to a non-banking finance company
for operating lease sanctioned to a 100% subsidiary, HCL Infinet Limited
against which the total amount utilised as at June 30, 2011 is Rs.47.900
millions and Rs.60.700 millions respectively.
(iv) Corporate
Guarantee of Rs.731.100 millions was given to Banks for working capital
facilities sanctioned to HCL Infosystems MEA FZCO,
(v) Corporate
Guarantee of Rs.1329.300 millions was given to Banks for working capital
facilities sanctioned to Techmart Telecom Distribution FZCO,
c) The Company has
transferred Financial Assets (Lease Rental Recoverable) to a bank under a
financing arrangement for which the balance outstanding with the bank as on
June 30, 2011 is Rs. Nil. The transfer of these Financial Assets is with
recourse to the Company.
FIXED ASSETS
·
Land – Leasehold
·
Land – Freehold
·
Buildings
·
Plant and Machinery and
·
Air Conditioners
·
Furniture and Fixtures and
·
Office Equipment
·
Vehicles
AUDITED FINANCIAL RESULTS
FOR THE YEAR ENDED JUNE 30, 2012
Rs.
in millions
|
PARTICULARS |
Three Months
Ended |
Year Ended |
|
|
|
30.06.2012 |
31.03.2012 |
30.06.2012 |
|
|
[Unaudited] |
[Unaudited] |
[Audited] |
|
Net
Sales / Income from Operations |
|
|
|
|
Net Sales / Income from Operations |
25485.000 |
24961.600 |
102892.800 |
|
Other Operating Income |
66.800 |
55.500 |
223.400 |
|
|
|
|
|
|
EXPENDITURE |
|
|
|
|
Changes in Inventories of finished
goods, work-in-progress and stock-in-trade |
1491.900 |
873.600 |
(369.100) |
|
Cost
of materials consumed |
3493.200 |
3533.200 |
12732.900 |
|
Purchases
of Stock-in-trade |
16502.500 |
16683.200 |
76175.900 |
|
Purchases
of Services |
734.800 |
433.600 |
1795.900 |
|
Stores
& Spares consumed and Others |
535.000 |
725.500 |
2223.500 |
|
Employee
benefits expense |
1100.500 |
1210.000 |
4587.900 |
|
Administration,
Selling, Repairs & Others |
1220.300 |
1170.100 |
4288.600 |
|
Exchange
Differences (Loss (+)/Gain(-))# |
338.100 |
(28.700) |
642.500 |
|
Depreciation
and amortization expense |
125.600 |
104.000 |
431.200 |
|
TOTAL
EXPENDITURE |
25541.900 |
24704.500 |
102509.300 |
|
|
|
|
|
|
Profit from Operations before
Other Income & finance costs |
9.900 |
312.600 |
606.900 |
|
Other Income |
259.400 |
155.300 |
809.400 |
|
Profit from ordinary activities
before finance costs |
269.300 |
467.900 |
1416.300 |
|
Finance costs |
238.800 |
216.300 |
800.900 |
|
Profit (+) / Loss (-) from ordinary
activities before Tax |
30.500 |
251.600 |
615.400 |
|
Tax Expense |
5.000 |
51.400 |
136.800 |
|
Net Profit (+) / Loss (-) from
ordinary activities after Tax |
25.500 |
200.200 |
478.600 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Net Profit / Loss for the period after taxes, minority interest |
25.500 |
200.200 |
478.600 |
|
Equity Capital |
445.800 |
445.800 |
445.800 |
|
Reserves |
-- |
-- |
18725.800 |
|
EPS before
Extraordinary items (in Rs) |
|
|
|
|
Basic EPS before Extraordinary items |
0.11 |
0.90 |
2.15 |
|
Diluted EPS before Extraordinary items |
0.11 |
0.90 |
2.15 |
|
|
|
|
|
|
EPS after
Extraordinary items (in Rs) |
|
|
|
|
Basic EPS after Extraordinary items |
0.11 |
0.90 |
2.15 |
|
Diluted EPS after Extraordinary items |
0.11 |
0.90 |
2.15 |
|
|
|
|
|
|
# Including unrealized exchange differences (Loss / Gain) |
|
|
|
|
Computer Systems and Other Related Products and Services |
171.500 |
(116.700) |
271.200 |
|
Telecommunication and Office Automation |
38.100 |
(18.000) |
74.600 |
|
Interest and Related Services (Discontinued Operation) |
0.000 |
0.000 |
0.000 |
|
Total |
209.600 |
(134.700) |
345.800 |
|
|
|
|
|
|
Public
Shareholding |
|
|
|
|
Number of Public Shareholding |
109726271 |
109726271 |
109726271 |
|
Percentage of Public Shareholding |
49.23 |
49.23 |
49.23 |
|
|
|
|
|
|
Promoters
and Promoter Group Shareholding |
|
|
|
|
Pledged
/ Encumbered |
|
|
|
|
Number of Shares |
Nil |
Nil |
Nil |
|
Percentage of Shares (as a % of the total
shareholding of promoter and promoter group) |
Nil |
Nil |
Nil |
|
Percentage of Shares (as a% of the total
share capital of the company) |
Nil |
Nil |
Nil |
|
|
|
|
|
|
Non-encumbered |
|
|
|
|
Number of Shares |
113153358 |
113153358 |
113153358 |
|
Percentage of Shares (as a% of the total
shareholding of promoter & prom group) |
100.00 |
100.00 |
100.00 |
|
Percentage of Shares (as a % of the total
share capital of the company) |
50.77 |
50.77 |
50.77 |
|
Investor Complaints |
Three Months Ended 30.06.2012 |
|
Pending at the beginning of the Quarter |
Nil |
|
Received during the Quarter |
4 |
|
Disposed of during the Quarter |
4 |
|
Remaining unresolved at the end of the Quarter |
Nil |
STATEMENT OF ASSETS AND
LIABILITIES
Rs. in millions
|
PARTICULAR |
30.06.2012 [Audited] |
|
Shareholders' funds |
|
|
Share Capital |
445.800 |
|
Reserves and Surplus |
18725.800 |
|
Total |
19171.600 |
|
|
|
|
Non Current Liabilities |
|
|
Long term Borrowings |
1230.700 |
|
Other Long term Liabilities |
1488.300 |
|
Long term Provisions |
236.500 |
|
Total |
2955.500 |
|
|
|
|
Current Liabilities |
|
|
Short-term borrowings |
4774.900 |
|
Trade payables |
16378.700 |
|
Other current liabilities |
5233.200 |
|
Short-term provisions |
158.100 |
|
Total |
26544.900 |
|
|
|
|
Total - EQUITY AND LIABILITIES |
48672.000 |
|
|
|
|
ASSETS |
|
|
Non-current assets |
|
|
Fixed Assets |
2982.200 |
|
Goodwill on consolidation |
0.000 |
|
Non-current investments |
1178.200 |
|
Deferred tax assets (net) |
227.300 |
|
Long-term loans and advances |
588.700 |
|
Trade receivables |
228.100 |
|
Other non-current assets |
3367.800 |
|
Total |
8572.300 |
|
|
|
|
Current Assets |
|
|
Current investments |
4317.700 |
|
Inventories |
6589.500 |
|
Trade receivables |
11806.100 |
|
Cash and bank balances |
2242.000 |
|
Short-term loans and advances |
2978.300 |
|
Other current assets |
12166.100 |
|
Total |
40099.700 |
|
|
|
|
Total Assets |
48672.00 |
NOTES:
- After recommendation by the Audit Committee,
these results have been approved and taken on record by the Board of
Directors at its meeting held on August 24, 2012. The results for the year
ended June 30, 2012 have been audited by the statutory auditors.
- During the year, the Company has paid interim
dividends aggregating to Rs. 3/- per fully paid up equity share of Rs 2/-
each.
- Subsequent to the year end, the Shareholders
of the Company by way of postal ballot have given their approval under
section 293(1)(a) of the Companies Act, 1956 for transfer of the Company’s
Computing Products Manufacturing and Channel Business as a going concern
on slump sale basis, effective on such date as the Board deems fit for the
Company, to a wholly owned subsidiary/group/affiliate/other entity either
at book value or for such lump sum consideration being not less than the
book value.
- Pursuant to notification u/s 211(3C) of the
Companies Act , 1956 issued by the Ministry of Corporate Affairs on
December 29, 2011, the Company has opted to accumulate the exchange
difference arising on translation of foreign currency items having a term
of 12 months or more and amortize such exchange difference over the period
of the item. Accordingly, a loss of Rs.114.700 millions stands deferred as
at June 30, 2012.
- Tax expense (current) has been computed by
applying the provisions of Income Tax Act, 1961 to the profits of the
financial year ended June 30, 2012 although the actual tax liability has
to be computed with reference to the tax profit for each fiscal year ended
March 31.
- Consolidated Results include financial results
of HCL Infosystems Limited (the parent company), its seven subsidiaries
and their five step down subsidiaries and two joint venture companies.
- The amounts for the quarter ended June 30,
2012 represent difference between the amounts as per the annual audited
accounts and the year to date results up to March 31, 2012 which have been
subjected to limited review.
- Figures for previous periods have been
regrouped and rearranged, wherever necessary, to conform with the relevant
current period's classification.
SEGMENT-WISE INFORMATION
Rs. in millions
|
Particulars |
Three Months
Ended |
Year Ended |
|
|
|
30.06.2012 |
31.03.2012 |
30.06.2012 |
|
|
[Unaudited] |
[Unaudited] |
[Audited] |
|
Segment Revenue |
|
|
|
|
|
|
|
|
|
Products and Related Services |
|
|
|
|
|
|
|
|
|
- Computer Systems & Other Related Products and Services (Gross) |
8895.700 |
8291.700 |
30767.800 |
|
Less: Excise Duty |
211.600 |
233.300 |
862.000 |
|
- Computer Systems & Other Related Products and Services (Net) |
8684.100 |
8058.400 |
29905.800 |
|
- Telecommunication & Office Automation (Net) |
16835.300 |
16903.200 |
73066.800 |
|
|
|
|
|
|
Internet & Related Services (Discontinued Operations) |
-- |
-- |
-- |
|
|
|
|
|
|
Total |
25519.400 |
24961.600 |
102972.600 |
|
|
|
|
|
|
Less : Intersegment revenue |
34.400 |
-- |
79.800 |
|
|
|
|
|
|
Net Sales / Income from Operations |
25485.000 |
24961.600 |
102892.800 |
|
|
|
|
|
|
Segment Results (Profit (+) / Loss (-) before Tax and Interest from
each segment) # |
|
|
|
|
|
|
|
|
|
Products and Related Services |
|
|
|
|
|
|
|
|
|
- Computer Systems & Other Related Products and Services |
(51.500) |
4.800 |
(119.400) |
|
- Telecommunication & Office Automation |
244.200 |
479.000 |
1580.300 |
|
|
|
|
|
|
Internet & Related Services (Discontinued Operations) |
-- |
-- |
-- |
|
|
|
|
|
|
Total |
192.700 |
483.800 |
1460.900 |
|
|
|
|
|
|
Less : |
|
|
|
|
i) Interest Expense |
238.800 |
216.300 |
800.900 |
|
ii) Other un-allocable expenditure net off un-allocable (income) |
(76.600) |
15.900 |
44.600 |
|
|
|
|
|
|
Total Profit before Tax |
30.500 |
251.600 |
615.400 |
|
|
|
|
|
|
Capital Employed (Segment Assets - Segment Liabilities) |
|
|
|
|
|
|
|
|
|
Products and Related Services |
|
|
|
|
|
|
|
|
|
- Computer Systems & Other Related Products and Services |
10676.900 |
11922.300 |
10676.900 |
|
- Telecommunication & Office Automation |
3764.200 |
3456.500 |
3764.200 |
|
|
|
|
|
|
Internet & Related Services (Discontinued Operations) |
-- |
-- |
-- |
|
|
|
|
|
|
Unallocated |
|
|
|
|
- Liquid Assets |
4383.900 |
4613.300 |
4383.900 |
|
- Others unallocated |
6990.200 |
6715.700 |
6990.200 |
|
|
|
|
|
|
Total Capital Employed |
25815.200 |
26707.800 |
25815.200 |
WEB DETAILS
BUSINESS
DESCRIPTION
Subject is an information and communication technology (ICT) company. It is engaged in developing and implementing ICT solutions for diverse market segments. It operates in three segments: computer systems and other related products and services, telecommunication and office automation, and Internet and related services. The computer systems and other related products and services consists of manufacturing of computer hardware systems, providing comprehensive systems integration, roll out and infrastructure management solutions. This segment also provides information technology (IT) services, including maintenance, facility management and ICT training. In January 2011, it sold HCL Infinet Limited to Tikona Digital Networks. On November 10, 2011, it sold its equity stake in HCL Infinet Limited. Consequently, HCL Infinet Limited has ceased to be subsidiary of the Company. For the nine months ended 31 March 2011, subject's revenue remain flat RS88.84B. Net income decreased 11% to RS1.57B. Revenues reflect a decrease in Sales from Telecommunication and Office Automation segment. Net income was offsets by an increase in stores and spares consumed cost, higher employee cost, a significant increase in Administration, Selling, Repairs and other expenses and higher interest expenses.
BOARD OF DIRECTORS
Mr. Ajai Chowdhry
- Executive Chairman of the Board
Mr. Ajai Chowdhry is Executive Chairman of the Board of subject. He
served as Chief Executive Officer of the Company till October 1, 2010. He is
one of the founder members of subject. He is a graduate in Electronics and
Telecommunication with over 36 years experience in the IT industry in
Mr, Virender Nath
Koura - Independent Non-Executive Director
Mr. Virender Nath Koura is Independent Non-Executive Director of
subject, since 2006. He has received his formal education in Law from
Mr. E. A.
Kshirsagar - Independent Non-Executive Director
Mr. E. A. Kshirsagar is Independent Non-Executive Director of subject.
He is a Chartered Accountant, with experience in the areas of corporate
strategy, project studies, diversification studies etc. He is a Director in the
following other Companies: Batliboi Limited, J M Financials Limited, Rallis
India Limited, Merck Limited, Manipal Universal Learning Private Limited,
Tribune Corporate and Investment Advisory Director Services Private Limited,
Irwell Private Limited, Mauritius.
Mr. D. S. Puri - Non-Executive
Director
Mr. D. S. Puri is Non-Executive Director of subject. He is a graduate in
Commerce from
Education
Commerce,
Ms. Anita
Ramachandran - Independent Non-Executive Director
Ms. Anita Ramachandran is Independent Non-Executive Director of subject.
She is a Management Graduate from Jamnalal Bajaj Institute with over 20 years
of experience in HR consultancy. She is currently a Director in subject and has
been associated with the Company for several years. She is a Director in the
following other Companies: Cerebrus Consultants (Private) Limited; Connexus
Consultants (Private) Limited; Geometric Software Solutions Company Limited;
Force Motors Limited; UTI Amc (Private) Limited; Swadhaar Fin Access (Private)
Limited, Cerebrus Consultants Private Limited.
Education
Management, Jamnalal Bajaj Institute of Management
Mr. J. V.
Ramamurthy - President, Chief Operating Officer, Whole-Time Director
Mr. J. V. Ramamurthy is President, Chief Operating Officer, Whole-Time
Director of subject. He has a B.E. degree from
Education
BE ,
Mr. Nikhil Sinha -
Non-Executive Director
Mr. Nikhil Sinha is Non-Executive Director of subject, since July 2009.
Mr. Nikhil Sinha's Directorships inlcudes EMR Technology Ventures Private
Limited. Mr. Nikhil Sinha is B.A., M.A. and Ph.D. He is a international on
Information and Communication Technology industries, and has held important
positions in many reputed bodies. He has published numerous articles and papers
in scholarly journals on international business and global communications.
Mr. Ajay Vohra -
Independent Non-Executive Director
Mr. Ajay Vohra is Independent Non-Executive Director of subject. He is Advocate
and the Managing Partner of Vaish Associates, Advocates, a Corporate, Tax and
Business Advisoty Law Firm. Mr. Vohra is also a qualified Chartered Accountant.
He has been practicing since the last 27 years in the area of domestic and
international tax and is a arguing counsel before Tax Tribunals, High Courts
and the Supreme Court.
PRESS RELEASES
INDUSTRY-ELECTRONICS
TWO LAST
'CLUSTER APPROACH,
ECOSYSTEM NECESSARY FOR $65 BLN ELECTRONIC MKT'
New Delhi, December 12 -- Industry experts and policy makers today
called for a national electronics strategy to develop laboratory-to-fabrication
clusters across the country and build a vibrant ecosystem for the 65 billion
dollar market. High-volume sourcing of components and final products has
hampered the growth of electronics manufacturing base in recent years, said Mr
R Chandrashekhar, secretary at the ministry of communications and information
technology while addressing a national conference organised by The Associated
Chambers of Commerce and Industry of India (Assocham). Growth trends show the
demand for electronic products to cross 400 billion dollars by 2020, he said. A
national strategy has to be formulated through discussions with key
stakeholders including existing manufacturers and members of the MSME sector,
industry associations, respective government departments and regulatory bodies,
he said. Mr Chandrashekhar called for creating industrial clusters to meet the
need for fostering innovation and manufacturing in electronics sector. Mr Ajay
Shankar, member secretary at the National Manufacturing Competitiveness
Council, said domestic manufacturing is essential to sustain GDP growth
momentum and generate mass employment. There is a growing consensus that
electronics industry needs a special emphasis. It will encourage value
generation, revenue generation and employment generation, he said adding practical
and implement-able solutions should be worked out. Assocham secretary general D
S Rawat called for establishing centres of excellence for incentivising
collaborative research and development initiatives between MSMEs and MNCs.
Absence of feeder industries is the biggest hurdle for electronics
manufacturers to set operations, he said. The government needs to take quick
steps to start developing an ecosystem which will attract manufacturing
investments, he said. Among others present on the occasion were Mr Lakshmi
Narayan, advisor at the Videocon Industries, Mr P K Sandell, chairman of Eltec
Systems, Mr Ajai Chowdhury, chairman of HCL Infosystems.
NEW
DELHI, December 8Asia Pulse - Indian IT hardware firm HCL Infosystems on
Wednesday said it has bagged a project to implement automation, computerisation
and integration solutions at 22 border check posts (BCP) in Maharashtra.
The
project was awarded by Sadbhav Infrastructure and entails design, supply,
installation, commissioning and maintenance of the system for the next 10
years, HCL Infosystems said in a statement.
However,
no financial details were disclosed.
Three
The
integrated BCPs shall have combined facilities for clearance and checking of
commercial traffic by all three departments, the statement said.
The
proposed modernisation with computerised BCPs will help road users and reduce
clearance time, thereby increasing efficiency of the departments, it added.
"We
thank the
HCL INFOSYSTEMS
LIMITED BAGS ORDER FOR BORDER CHECK POSTS IN MAHARASHTRA-BUSINESS STANDARD
December 07, 2011
Business Standard reported that HCL Infosystems Limited has bagged a project to
implement automation, computerisation and integration solutions at 22 border
check posts (BCP) in
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 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.55.54 |
|
|
1 |
Rs.88.23 |
|
Euro |
1 |
Rs.70.02 |
INFORMATION DETAILS
|
Report Prepared
by : |
TPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
64 |
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.