MIRA INFORM REPORT

 

 

Report Date :

05.06.2013

 

IDENTIFICATION DETAILS

 

Name :

VIRTUTONE NETWORKS INC.

 

 

Registered Office :

2181 Premier Way, Ste 240, Sherwood Park, Alberta T8H 2V1

 

 

Country :

Canada

 

 

Date of Incorporation :

01.02.2009

 

 

Legal Form :

Public Company (TMX = VFX)    

 

 

Line of Business :

Provides voice over Internet protocol (VoIP), fax over Internet protocol (FOIP), and related phone services to business and residential customers

 

 

No. of Employees :

10

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

Limited with full security

 

Status :

Moderate

Payment Behaviour :

Slow

Litigation :

Clear

 

 

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 – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Canada

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

CANADA - ECONOMIC OVERVIEW

 

As an affluent, high-tech industrial society in the trillion-dollar class, Canada resembles the US in its market-oriented economic system, pattern of production, and affluent living standards. Since World War II, the impressive growth of the manufacturing, mining, and service sectors has transformed the nation from a largely rural economy into one primarily industrial and urban. The 1989 US-Canada Free Trade Agreement (FTA) and the 1994 North American Free Trade Agreement (NAFTA) (which includes Mexico) touched off a dramatic increase in trade and economic integration with the US its principal trading partner. Canada enjoys a substantial trade surplus with the US, which absorbs about three-fourths of Canadian exports each year. Canada is the US's largest foreign supplier of energy, including oil, gas, uranium, and electric power. Given its great natural resources, highly skilled labor force, and modern capital plant, Canada enjoyed solid economic growth from 1993 through 2007. Buffeted by the global economic crisis, the economy dropped into a sharp recession in the final months of 2008, and Ottawa posted its first fiscal deficit in 2009 after 12 years of surplus. Canada's major banks, however, emerged from the financial crisis of 2008-09 among the strongest in the world, owing to the financial sector's tradition of conservative lending practices and strong capitalization. Canada achieved marginal growth in 2010-12 and plans to balance the budget by 2015. In addition, the country's petroleum sector is rapidly becoming an even larger economic driver with Alberta's oil sands significantly boosting Canada's proven oil reserves, ranking the country third in the world behind Saudi Arabia and Venezuela.

Source : CIA


Company name and address

 

Company name:            VIRTUTONE NETWORKS INC.

 

Address:                        2181 Premier Way, Ste 240, Sherwood Park, Alberta T8H 2V1

                                     Canada

 

Telephone:                    +1 780-702-5777

 

Fax:                              +1 780-702-5775

 

Website:                       www.virtutone.com

 

Corporate ID#:               AB-2014498063

 

State:                            Alberta

 

 

Judicial form:                 Public Company (TMX = VFX)  

 

Date incorporated:          February 1, 2009

 

Stock:                           14,903,208 shares issued and outstanding (as of 01-31-2013)

 

Market Value:                CAD 4,153,751=

 

 

Name of manager:          Jason ALLEN

 

 

ACTIVITIES & OPERATIONS

 

IST

 

Business:

 

Virtutone Networks Inc. provides voice over Internet protocol (VoIP), fax over Internet protocol (FOIP), and related phone services to business and residential customers in North America, Australia, and the United Kingdom.

The company offers various products and services, including managed voice lines, managed fax lines, hosted PBX systems, analog phone lines, calling cards, hosted exchange and BEZ solutions, wholesale VoIP, Internet, and analog line management.

It also provides hardware, including IP phones, wireless conference phones, phone adapter with router, 8-port IP telephony gateway, and fax/voice adapters.

The company serves oil and gas exploration companies, forestry and fire fighting departments, and other businesses/organizations.

Virtutone Networks Inc. is headquartered in Sherwood Park, Canada.

 

Staff:     10

 


Operations & branches:

 

At the headquarters, we find the corporate office, on lease.

 

The Company maintains a branch located:

 

13327 Larkhill Gardens Lane,
Sugar Land, TX 77478 - USA

 

 

SHAREHOLDERS & MANAGERS

 

Shareholders:

 

The Company is listed with the Toronto Stock Exchange under symbol VFX.

 

 

Management:

 

Jason Allen has been Chief Executive Officer and President at Virtutone Networks Inc. since June 30, 2008. Mr. Allen founded MobileSat Communications Inc., and has been its President since November 2005. He is the Founder of Oricomm Inc. He co-founded SatFax and served as its President since January 2007. Mr. Allen served as Vice-President at Oricomm Inc., and Iroc Systems Corp., from March 2000 to October 2004. He served as Chief Operating Officer at Ziracom Communications Inc. He was recruited to run operations and to develop European markets for Ziracom, an Internet startup in 1998.

Mr. Allen has been a Director of Virtutone Networks Inc. since June 30, 2008. He served as Director of SatFax since January 2007. Mr. Allen holds a diploma in Financial Management (Major: Corporate Finance) from British Columbia Institute of Technology, completed the Canadian Securities Course, and holds a Diploma in Forest Technology.

 

Colin Campbell has been Chief Financial Officer of Virtutone Networks Inc. since April 2010. Mr. Campbell is a Chartered Accountant with public company experience, who for the past 9 years has worked in Bermuda, mainly in the captive insurance management industry. Previous to that, Mr. Campbell worked for Deloitte &Touche LLP in Edmonton as an Audit manager.

 

 

Subsidiaries

And partnership:                        None

 

 

FINANCIALS

 

-10K 2013 on attachment (year ending 01-2013)

 

Banks:  Scotia Bank

                       

 

LEGAL FILINGS

 

Legal filings & complaints:

 

As of today date, there is no legal filing pending with the Courts.

 

 

Secured debts summary:   None

 

 

COMPANY CREDIT HISTORY

 

Trade references:

 

Date reported:                April 2013

High credit:                    CAD 12,000

Now owing:                    0

Past due:                      0

Last purchase:               March 2013

Line of business:            Office supply

Paying status:               15 days beyond terms

 

Date reported:                April 2013

High credit:                    CAD 25,000+

Now owing:                    0

Past due:                      0

Last purchase:               March 2013

Line of business:            Payroll

Paying status:               As agreed

 

 

Domestic credit history:

 

Domestic credit history appears as follow:

 

Monthly Payment Trends - Recent Activity

 

 

Date

Balance

Current

Up to 30 DBT

31-60 DBT

61-90 DBT

>90 DBT

11/12

$3,700

82%

18%

0%

0%

0%

12/12

$3,500

81%

19%

0%

0%

0%

01/13

$3,600

82%

18%

0%

0%

0%

02/13

$3,600

83%

17%

0%

0%

0%

03/13

$3,100

82%

18%

0%

0%

0%

04/13

$3,300

83%

17%

0%

0%

0%

 

 

National Credit Bureaus gave a medium credit rating.

 

According to our credit analysts, during the last 6 months, domestic payments were made with an average of 10 to 15 days beyond terms.

 

 

Other comments:

 

 

The cash is low.

 

The bank confirmed late payments.

 

The Company is in good standing.

This means that all local and federal taxes were paid on due date.

 

The risk is medium/high.

 

 

Our opinion:

 

 

We suggest you to be careful.

 

 

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.56.64

UK Pound

1

Rs.86.68

Euro

1

Rs.73.97

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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 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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.