MIRA INFORM REPORT
|
Report Date : |
12.06.2013 |
IDENTIFICATION DETAILS
|
Name : |
BLUE STAR INFOTECH LIMITED |
|
|
|
|
Registered
Office : |
Corporate Wing, 8th Floor, The Great Oasis, Plot No.D-13,
MIDC, Marol, Andheri (East), Mumbai-400093, Maharashtra |
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|
|
Country : |
India |
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|
|
Financials (as
on) : |
31.03.2012 |
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|
Date of
Incorporation : |
04.09.1997 |
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Com. Reg. No.: |
11-110459 |
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|
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Capital
Investment / Paid-up Capital : |
Rs. Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L72200MH1997PLC110459 |
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|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Providing Technology, Consultancy and Outsourcing Services. |
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|
|
|
No. of Employees
: |
1000 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (46) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 3340000 |
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|
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|
Status : |
Satisfactory |
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|
|
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having a satisfactory track record.
There appears continues fall in its profitability. However, general financial position seems to be good. There appears no
external borrowing. Trade relations are reported to be fair. Business is active. Payments
are reported to be usually correct and as per commitment. The company can be considered 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.
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.
INFORMATION PARTED BY
|
Name : |
Mr. Ritesh Modi |
|
Designation : |
Finance Department |
|
Contact No.: |
91-22-66956969 |
|
Date : |
11.06.2013 |
LOCATIONS
|
Registered / Corporate Office / Head Quarter / Development Center : |
Corporate Wing, 8th Floor, The Great Oasis, Plot No.D-13,
MIDC, Marol, Andheri (East), Mumbai-400093, Maharashtra, India |
|
Tel. No.: |
91-22-66956969 |
|
Fax No.: |
91-22-66973866 |
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E-Mail : |
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Website : |
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Location : |
Owned |
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|
|
|
Development Centers : |
Unit 74, SDF III, Unit 150, SDF V, Unit 188, SDF VI, Seepz, Andheri
(East), Mumbai-400096, Maharashtra, India #7, 18th Main Road,, Koramangala Industrial Layout,
Bangalore-560095, Karnataka, India 777 W, Glencoe Place, Bayside, WI 53217, USA |
DIRECTORS
AS ON 31.03.2012
|
Name : |
Mr. Suneel M Advani |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Mr. Ashok M Advani |
|
Designation : |
Vice Chairman |
|
|
|
|
Name : |
Mr. Sunil Bhatia |
|
Designation : |
Chief Executive Officer and Managing Director |
|
|
|
|
Name : |
Dr. Prakash G Hebalkar |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. K P T Kutty |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Naresh K Malhotra |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Suresh N Talwar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Sanjay N Vaswani |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Ramkumar Akella |
|
Designation : |
President and Chief Operating Officer |
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|
|
|
Name : |
Mr. Suresh Iyer |
|
Designation : |
Executive Vice President – Marketing |
|
|
|
|
Name : |
Mr. Douglas Gray |
|
Designation : |
Chief Solutions Officer |
|
|
|
|
Name : |
Mr. V. Sudarshan |
|
Designation : |
Chief Financial Officer and Company Secretary |
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|
|
|
Name : |
Mr. Sanjeev Sethi |
|
Designation : |
President - Blue Star Infotech America, Inc. |
|
|
|
|
Name : |
Mr. Satish Gaonkar |
|
Designation : |
Vice President - Consulting Services |
|
|
|
|
Name : |
Mr. Keyuri Singh |
|
Designation : |
Vice President - Human Resources |
|
|
|
|
Name : |
Mr. V Sudarshan |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2013
|
Category of Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
1662742 |
16.01 |
|
|
3148213 |
30.32 |
|
|
778519 |
7.50 |
|
|
778519 |
7.50 |
|
|
5589474 |
53.82 |
|
|
|
|
|
|
2950 |
0.03 |
|
|
2950 |
0.03 |
|
Total shareholding of Promoter and Promoter Group (A) |
5592424 |
53.85 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
162 |
0.00 |
|
|
1804 |
0.02 |
|
|
355897 |
3.43 |
|
|
150 |
0.00 |
|
|
150 |
0.00 |
|
|
358013 |
3.45 |
|
|
|
|
|
|
291516 |
2.81 |
|
|
|
|
|
|
2777711 |
26.75 |
|
|
1250267 |
12.04 |
|
|
115069 |
1.11 |
|
|
25 |
0.00 |
|
|
5489 |
0.05 |
|
|
2302 |
0.02 |
|
|
107253 |
1.03 |
|
|
4434563 |
42.70 |
|
Total Public shareholding (B) |
4792576 |
46.15 |
|
Total (A)+(B) |
10385000 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
10385000 |
0.00 |
SHAREHOLDING OF SECURITIES (INCLUDING SHARES, WARRANTS, CONVERTIBLE SECURITIES)
OF PERSONS BELONGING TO THE CATEGORY “PROMOTER AND PROMOTER GROUP”
|
Sl. |
Name of the
Shareholder |
Details of
Shares held |
|
|
|
|
No. of Shares
held |
As a % of |
|
|
|
|
|
|
1 |
Blue Star Limited |
30,98,025 |
29.83 |
|
2 |
J T Advani Finance Private Limited |
50,188 |
0.48 |
|
3 |
Suneel Mohan Advani |
4,29,828 |
4.14 |
|
4 |
Ashok Mohan Advani |
7,95,165 |
7.66 |
|
5 |
Nanik Ramchand Vaswani |
7,581 |
0.07 |
|
6 |
Nargis Suneel Advani |
1,66,059 |
1.60 |
|
7 |
Suneeta Nanik Vaswani |
1,72,448 |
1.66 |
|
8 |
Suneel Mohan Advani |
87,656 |
0.84 |
|
9 |
Rohina Lulla |
73,871 |
0.71 |
|
10 |
Anissa Khanna |
71,654 |
0.69 |
|
11 |
Sunaina S Advani |
32,179 |
0.31 |
|
12 |
Vir S Advani |
35,179 |
0.34 |
|
13 |
Dinesh Nanik Vaswani |
13 |
0.00 |
|
14 |
IL&FS Trust Company Limited |
3,73,681 |
3.60 |
|
15 |
IL&FS Trust Company Limited |
1,84,147 |
1.77 |
|
16 |
Sanjay N Vasani |
14,750 |
0.14 |
|
|
Total |
55,92,424 |
53.85 |
SHAREHOLDING OF SECURITIES (INCLUDING SHARES, WARRANTS, CONVERTIBLE
SECURITIES) OF PERSONS BELONGING TO THE CATEGORY “PUBLIC” AND HOLDING MORE THAN
1% OF THE TOTAL NUMBER OF SHARES
|
Sl. |
Name of the
Shareholder |
Details of
Shares held |
|
|
|
|
No. of Shares
held |
As a % of |
|
|
|
|
|
|
1 |
Oriental Insurance Company Limited |
355897 |
3.43 |
|
2 |
Suneel Mohan Advani |
195537 |
1.88 |
|
3 |
Kusum Tulsi Chetnani |
429524 |
4.14 |
|
|
Total |
980958 |
9.45 |
BUSINESS DETAILS
|
Line of Business : |
Providing Technology, Consultancy and Outsourcing Services. |
|
|
|
|
Terms : |
|
|
Selling : |
Depend |
|
|
|
|
Purchasing : |
Depend |
GENERAL INFORMATION
|
Customers : |
Others |
|
|
|
|
No. of Employees : |
1000 (Approximately) |
|
|
|
|
Bankers : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Walker, Chandiok and Company Chartered Accountant |
|
|
|
|
Associates/Subsidiaries : |
|
CAPITAL STRUCTURE
AS ON 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
20000000 |
Equity Shares |
Rs.10/- each |
Rs.200.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
10385000 |
Equity Shares |
Rs.10/- each |
Rs.103.850
Millions |
NOTES:
The Company has
only one class of shares referred as equity shares having a face value of Rs.
10/- each. Each shareholder is entitled to one vote per share. The Company declares
and pays dividends in Indian rupees. All dividends proposed by the Board of
Directors are subject to the approval of the shareholders at the ensuing Annual
General Meeting. During the year ended 31 March 2012, the amount of dividend
recognized as distributions to equity shareholders was Rs. 2 per share. The
total dividend appropriation for the year ended 31 March 2012 amounted to Rs.
24.140 Millions (Previous year Rs. 34.867 Millions) including corporate
dividend tax of Rs. 33.70 Millions (Previous year Rs. 4.867 Millions). In the
event of liquidation of the Company, the holders of equity shares will be
entitled to receive any of the remaining assets of the Company. The
distribution will be in proportion to the number of equity shares held by the shareholders.
The reconciliation of the number of shares
outstanding and the amount of share capital as at 31 March 2012 and 31 March
2011 is set out below:
|
PARTICULAR |
AS ON 31.03.2012 |
|
|
|
No. of Shares |
Amount |
|
Balance at the beginning of the year |
10000000 |
100.000 |
|
Add: Shares
issued on preferential allotment basis |
385000 |
3.850 |
|
Balance at the end of the year |
10385000 |
103.850 |
Shareholders holding more than 5% Shares
As at 31 March
2012, Blue Star Limited holds 29.83% of the company’s shares. (30.98% as of 31
March 2011) and Mr. Ashok Mohan Advani (SEBI stipulated Permanent Account
Number based holding) holds 7.69% of the Company’s shares (7.99% as of 31 March
2011).
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2012 |
31.03.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders'
Funds |
|
|
|
|
(a) Share Capital |
|
103.850 |
100.000 |
|
(b) Reserves & Surplus |
|
731.710 |
737.804 |
|
(c) Money received against share warrants |
|
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share
Application money pending allotment |
|
0.000 |
0.000 |
|
|
|
|
|
|
(3) Non-current liabilities |
|
|
|
|
(a) long-term borrowings |
|
0.000 |
0.000 |
|
(b) Deferred tax liabilities (Net) |
|
14.723 |
12.621 |
|
(c)
Other long term liabilities |
|
26.637 |
26.637 |
|
(d)
long-term provisions |
|
8.835 |
18.889 |
|
|
|
|
|
|
(4)
Current liabilities |
|
|
|
|
(a)
Short term borrowings |
|
0.000 |
0.000 |
|
(b)
Trade payables |
|
57.745 |
18.383 |
|
(c)
Other current liabilities |
|
146.811 |
135.575 |
|
(d)
Short-term provisions |
|
24.286 |
35.312 |
|
TOTAL |
|
1114.597 |
1085.221 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
|
204.248 |
209.509 |
|
(ii)
Intangible Assets |
|
11.595 |
8.222 |
|
(iii)
Capital work-in-progress |
|
0.000 |
13.912 |
|
(iv) Intangible assets under development |
|
0.000 |
0.000 |
|
(b) Non-current
Investments |
|
89.256 |
39.136 |
|
(c) Deferred tax assets
(net) |
|
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
|
35.765 |
33.282 |
|
(e)
Other Non-current assets |
|
31.361 |
46.921 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
|
55.534 |
172.210 |
|
(b)
Inventories |
|
0.000 |
0.000 |
|
(c)
Trade receivables |
|
270.024 |
246.170 |
|
(d)
Cash and cash equivalents |
|
188.315 |
69.385 |
|
(e)
Short-term loans and advances |
|
227.856 |
231.374 |
|
(f)
Other current assets |
|
0.643 |
15.100 |
|
TOTAL |
|
1114.597 |
1085.221 |
|
SOURCES OF FUNDS |
|
|
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
|
100.000 |
|
|
2] Share Application Money |
|
|
0.000 |
|
|
3] Reserves & Surplus |
|
|
691.744 |
|
|
4] (Accumulated Losses) |
|
|
0.000 |
|
|
NETWORTH |
|
|
791.744 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
|
0.000 |
|
|
2] Unsecured Loans |
|
|
0.000 |
|
|
TOTAL BORROWING |
|
|
0.000 |
|
|
DEFERRED TAX LIABILITIES |
|
|
2.959 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
794.703 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
|
186.622 |
|
|
Capital work-in-progress |
|
|
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
314.239 |
|
|
DEFERREX TAX ASSETS |
|
|
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
0.000 |
|
|
Sundry Debtors |
|
|
233.000 |
|
|
Cash & Bank Balances |
|
|
63.651 |
|
|
Other Current Assets |
|
|
20.139 |
|
|
Loans & Advances |
|
|
247.106 |
|
Total
Current Assets |
|
|
563.896 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
|
164.116 |
|
|
Other Current Liabilities |
|
|
26.996 |
|
|
Provisions |
|
|
78.942 |
|
Total
Current Liabilities |
|
|
270.054 |
|
|
Net Current Assets |
|
|
293.842 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
794.703 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Exports |
648.082 |
722.881 |
808.872 |
|
|
|
Domestic |
364.597 |
297.137 |
246.334 |
|
|
|
Other Income |
64.452 |
80.333 |
61.021 |
|
|
|
TOTAL |
1077.131 |
1100.351 |
1116.227 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Purchase of traded software licenses |
54.099 |
65.458 |
56.575 |
|
|
|
Purchase of traded hardware |
10.468 |
0.300 |
0.631 |
|
|
|
Employee benefit expenses |
637.322 |
637.211 |
576.830 |
|
|
|
Other expenses |
264.920 |
247.758 |
311.835 |
|
|
|
Exceptional item (net of tax) |
0.000 |
6.418 |
0.000 |
|
|
|
TOTAL |
966.809 |
957.145 |
945.871 |
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
110.322 |
143.206 |
170.356 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
29.598 |
22.784 |
22.323 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX |
80.724 |
120.422 |
148.033 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
25.307 |
37.674 |
8.659 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX |
55.417 |
82.748 |
139.374 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
526.200 |
486.700 |
419.699 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
5.600 |
8.300 |
13.937 |
|
|
|
Proposed Final Dividend |
20.700 |
30.000 |
50.000 |
|
|
|
Corporate Dividend Tax |
3.400 |
4.900 |
8.498 |
|
|
BALANCE CARRIED
TO THE B/S |
551.917 |
526.248 |
486.638 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
|
|
Income From Services |
674.608 |
737.445 |
808.872 |
|
|
|
Interest on Bank Deposits |
0.000 |
0.000 |
0.400 |
|
|
TOTAL EARNINGS |
674.608 |
737.445 |
809.272 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Capital Goods |
5.600 |
8.468 |
6.741 |
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
5.42 |
8.27 |
13.94 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
31.12.2012 |
31.03.2013 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
222.000 |
254.600 |
277.000 |
273.700 |
|
Total Expenditure |
219.500 |
250.900 |
253.600 |
267.500 |
|
PBIDT (Excl OI) |
02.500 |
03.700 |
23.400 |
06.200 |
|
Other Income |
10.300 |
14.500 |
15.200 |
23.000 |
|
Operating Profit |
12.800 |
18.200 |
38.600 |
29.100 |
|
PBDT |
12.800 |
18.200 |
38.600 |
29.100 |
|
Depreciation |
6.500 |
06.500 |
06.800 |
08.300 |
|
Profit Before Tax |
6.300 |
11.700 |
31.800 |
20.800 |
|
Tax |
2.000 |
03.000 |
09.000 |
3.300 |
|
Profit After Tax |
4.300 |
8.700 |
22.800 |
17.500 |
|
Net Profit |
4.300 |
8.700 |
22.800 |
17.500 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
5.14
|
7.52 |
12.49 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
7.97
|
11.81 |
14.03 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
7.87
|
11.67 |
19.72 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.10
|
0.14 |
0.19 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.00
|
0.00 |
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.24
|
3.87 |
2.09 |
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITORS
DETAILS
(Rs.
In Millions)
|
Particulars |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
Sundry Creditors |
57.745 |
18.383 |
164.116 |
|
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 |
Yes |
|
10] |
Designation of contact person |
Yes |
|
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 |
Yes |
|
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 |
No |
|
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 |
Yes |
|
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 |
No |
COMPANY OVERVIEW:
Subject (‘Blue
Star’, ‘BSIL’ or the ‘Company’) along with its wholly owned and controlled
subsidiaries, Blue Star Infotech America, Inc., Blue Star Infotech (UK) Limited
and Blue Star Infotech (Singapore) Pte. Limited is an Information technology
and software services organization. The Company provides technology,
consultancy and outsourcing services.
OPERATING RESULTS AND BUSINESS:
During the year,
total income of the Company was Rs. 1080.000 Millions from Rs. 1100.000
Millions, i.e.; a decline of 2%. On a consolidated basis, total income
increased by 4% to Rs. 1340.000 Millions from Rs. 1290.000 Millions. The global
economic scenario continued to be subdued for IT companies as well as other
industries for a large part of FY 11-12. Exchange rate volatility was witnessed
in the latter half of the financial year. Despite unchanged sales volumes, the
company witnessed pressure on its operating costs. This was despite a prudent
hedging of foreign currency thereby minimizing foreign currency exchange
losses, tight control over costs and continued insistence on higher manpower
productivity and other operational efficiencies. The net profit after tax on a
consolidated basis for the year ended March 31, 2012 was Rs. 35.700 Millions as
compared to Rs. 84.000 Millions for the last financial year.
SUBSIDIARY
COMPANIES AND CONSOLIDATED FINANCIAL STATEMENTS:
A) BLUE STAR INFOTECH AMERICA, INC.
A 100% wholly
owned subsidiary of the Company, Blue Star Infotech America, Inc. posted a
total income of US$ 13,002,875 (equivalent of Rs. 654.400 Millions) for the
financial year ending March 31, 2012 as compared to US$ 13,617,635 (equivalent
of Rs. 620.600 Millions) for the previous year. The Company reported a net loss
of US$ 413,674 (equivalent of Rs. 20.700 Millions) this year compared to net
loss of US$ 168,575 (equivalent of Rs. 7.500 Millions) for the previous year.
As at the year
end, there was further erosion in the net worth of Blue Star Infotech America
Inc. which is reflected as erosion in the net worth of the subsidiary. The
company infused further capital of US $ 1 Million (Rs. 50.100 Millions) during
the year in the subsidiary. The management is of the view that the business
loss is a temporary phenomenon arising in unstable market conditions. As
business volumes increase and economic growth gets recouped, the company is
expected to see a turnaround in profitability. As a result, no impairment of
the investment in the subsidiary is considered necessary.
B) BLUE STAR INFOTECH (UK) LIMITED
The total income
of this wholly owned subsidiary of the Company was £ 2,760,596 (equivalent of
Rs. 220.000 Millions) for the financial year ending March 31, 2012 as compared
to £ 3,298,601 (equivalent of Rs. 233.500 Millions) for the previous year. It
registered a net profit of £ 13,807 (equivalent of Rs. 01.100 Millions) for the
financial year ending on March 31, 2012 compared to net profit of £ 97,082
(equivalent of Rs. 07.000 Millions) for the previous year.
MANAGEMENT
DISCUSSION AND ANALYSIS:
The financial statements
have been prepared in compliance with the requirements of the Companies Act,
1956, and Generally Accepted Accounting Principles (GAAP) in India. The
management of BSIL accepts responsibility for the integrity and objectivity of
these financial statements, as well as for various estimates and judgments used
therein. The estimates and judgments relating to the financial statements have
been made on a prudent and reasonable basis, in order that the financial
statements reflect, in a true and fair manner, the form and substance of
transactions, and reasonably present the Company’s state of affairs and profits
for the year.
IT INDUSTRY
SCENARIO:
According to the
NASSCOM Strategic Review 2012 report, the Indian IT-BPO industry today stands at
an inflection point in its evolution. It achieved a significant milestone when
it crossed the USD 100 billion mark this year compared to USD 8 billion in
2000. Within exports, IT Services segment grew at 19 per cent over fiscal 2011
with revenue of over USD 40 billion. Gartner, the global research firm,
estimates a 3.1% growth in IT services for 2012, which is much lower than last
year’s 6.9% increase. According to NASSCOM, Indian IT-BPO services exports are
expected to grow by 11-14%. Faced with the ‘more’ from ‘less’ buying mantra,
vendors are facing tremendous pressure to reshape their offerings. Cloud
computing, analytics, mobility and other emerging technologies are expected to
drive future growth of software services. India’s Offshored Software Product
Development (OSPD) exports crossed the billion dollar mark in 2011. Despite its
small base, the OSPD market has consistently experienced double digit growth
rates over the last 5 years. Recessionary effects have resulted in the software
product market facing multiple challenges - constantly changing customer
demands, margin pressures and price-sensitivity of emerging markets. To counter
rising competition, product firms have to focus on accelerated time-to-market,
rapid adoption of emerging and disrupting technologies, and more frequent
product enhancements - all of these are fuelling growth within the OSPD
segment. Domestic IT-BPO revenue (excluding hardware) is expected to grow at
almost 17 per cent to reach Rs. 91800.000 Millions (approximately USD 1.8
billion) in 2012. Strong economic growth, rapid advancement in technology
infrastructure, increasingly competitive Indian organizations, and enhanced
government focus are key drivers for increased technology adoption in India. IT
Services, one of the fastest growing segments in the Indian domestic market,
grew by 18 per cent to reach Rs. 58900.000 Millions (approximately USD 1.2
billion). This growth was driven by increasing adoption from all customer
segments. This segment is expected to grow by 13-16% in 2012.
CHANGING BUSINESS ENVIRONMENT:
The IT Industry is
facing major challenges and opportunities, and currently undergoing a
metamorphosis. Protectionist policies arising out of a highly weakened economic
environment, stringent visa regulations, intense competition amongst vendors,
and emergence of other low cost destinations are challenging the current
business models. Further, with the end of the tax holiday, application of MAT
on SEZs and spiraling inflation, the industry has to literally reinvent itself
in order to remain relevant and continue to provide the returns expected. The
past year also saw an increased preference for onshore locations and other
lower cost centres, primarily to tap into the local talent, as well as to
provide customers with more options and stronger capabilities. The next decade
is expected to be vastly different from the previous one, in which business
models will undergo transformation and new models will emerge. The labor
arbitrage may not be sustainable beyond a few more years. The business model of
the future will be driven by the need to change the profit per employee
equation and increasingly bring in “non-linearity”. Building capabilities in
new technologies like smart computing, cloud computing, mobility and analytics,
and investing in the creation of delivery accelerators and IP will enable
vendors to rapidly deliver business-impacting solutions and value to their
clients. To remain competitive and profitable, organizations must increase
operational efficiencies, and reinvent and embrace new business models which
will offer customers a transformed business proposition.
BLUE STAR INFOTECH LIMITED (BSIL) - RE-ENGINEERING
ITSELF:
The Company is
re-engineering itself to remain relevant to its stakeholders and competitive in
the marketplace. Keeping in mind the changing market dynamics of the IT
industry and with the client at the core, the Company focused on laying out a
roadmap for its future that involved redesigning its business model and
upgrading its value proposition and capabilities.
The key areas that the Company is attempting to
address over the next few years are:
• Demonstrating
value to its customers over a longer term horizon
• Attracting
talent as an employer of choice
• Developing value
for its partners to build beneficial global alliances
• Ensuring that it is a growing and profitable organization for our
shareholders
OUTLOOK:
The business
environment in 2012-13 is expected to remain challenging and unpredictable for
mid-sized IT service companies. The Company’s increased agility for making
course corrections and redirect itself will also enable it to capitalize on new
opportunities and enable its customers to effectively deal with the changing
dynamics of a globally sensitive environment. The Company is looking at a three
year horizon, and is confident that the multi-dimensional transformation that
it has embarked upon will enable it to overcome these challenges and drive
long-term sustainable growth.
CONTINGENT
LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR):
i) Contingent
liability not provided in respect of:
- Demand(s) raised by the Income Tax authorities for prior financial
year(s) during the year aggregating (Rs. in Millions) Nil (Previous year
(Rs. in Millions) 319.641) against which the Company has filed appeal(s)
with the Commissioner of Income-tax (Appeals).
- Appeal(s) filed with the Appellate Tribunal (India) towards
income-tax demands amounting to (Rs. in Millions) 17.550 (Previous year
(Rs. in Millions) 6.584).
ii) Guarantees
given on behalf of the Company by banks (Rs. in Millions) 7.109 (Previous Year
(Rs. in Millions) 6.799).
iii) Guarantees
given by Company on behalf of its subsidiary, Blue Star Infotech (UK) Limited
(Rs. in Millions) 2.718 (Previous year (Rs. in Millions) NIL).
FIXED ASSETS
- Building
- Leasehold Building Improvements
- Air Conditioners
- Computers
- Furniture & Fittings
- Office Equipment
- Vehicles
- Computer Software
AUDITED FINANCIAL RESULTS
FOR THE QUARTER AND YEAR ENDED MARCH 31, 2013
Rs. In Millions
|
Particular |
Quarter Ended |
Year Ended |
|
|
|
31.03.2013 |
31.12.2012 |
31.03.2013 |
|
|
Audited
|
Unaudited
|
Audited
|
|
|
|
|
|
|
Income From operations |
|
|
|
|
Export income |
169.786 |
167.317 |
645.930 |
|
Domestic income |
103.864 |
109.709 |
381.317 |
|
Income from operations |
273.650 |
277.026 |
1027.247 |
|
Other operating income (foreign exchange gain, net) |
|
|
|
|
Total operating income |
273.650 |
277.026 |
1027.247 |
|
|
|
|
|
|
Expenditure |
|
|
|
|
Employee benefits expense |
134.212 |
147.442 |
577.869 |
|
Professional fees |
51.997 |
29.919 |
129.349 |
|
Cost of products / licences |
11.589 |
19.478 |
41.884 |
|
Travel and conveyance |
10.688 |
14.431 |
44.579 |
|
Foreign exchange loss (net) |
15.683 |
8.538 |
57.664 |
|
Depreciation and amortization expense |
8.325 |
6.762 |
28.085 |
|
Other expenses |
43.311 |
33.788 |
140.102 |
|
Total Expenses |
275.805 |
260.358 |
1019.532 |
|
|
|
|
|
|
Profit/(loss) from operations before other income and finance costs |
(2.155) |
16.668 |
7.715 |
|
|
|
|
|
|
Other Income |
22.955 |
15.164 |
62.923 |
|
|
|
|
|
|
Profit from ordinary activities before tax |
20.800 |
31.832 |
70.638 |
|
|
|
|
|
|
Tax Expense |
3.258 |
9.000 |
17.258 |
|
|
|
|
|
|
Net profit for
the period |
17.542 |
22.832 |
53.380 |
|
|
|
|
|
|
Paid-up
Equity Share Capital (Face Value of Rs.10/- Each) |
103.850 |
103.850 |
103.850 |
|
|
|
|
|
|
Reserves
Excluding Revaluation Reserve |
-- |
-- |
805.024 |
|
|
|
|
|
|
Basic and Diluted Earning Per
Share (EPS) (Rs.)-Not Annualised |
|
|
|
|
a)
Basic and diluted EPS before extraordinary items |
1.69 |
2.20 |
5.14 |
|
b) Basic
and diluted EPS after extraordinary items |
1.69 |
2.20 |
5.14 |
|
|
|
|
|
|
Public Shareholding |
|
|
|
|
-Number
of Shares |
4792576 |
4806334 |
4792576 |
|
-
Percentage of Shareholding |
46.15 |
46.28 |
46.15 |
|
|
|
|
|
|
Promoters and Promoter Group
Shareholding |
|
|
|
|
a) 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 |
|
|
|
|
|
|
b) Non Encumbered |
|
|
|
|
-
Number of Shares |
5592424 |
5578666 |
5592424 |
|
- Percentage
of Shares (as a % of the Total Shareholding of Promoter and Promoter Group) |
100% |
100% |
100% |
|
-
Percentage of Shares (as a % of the Total Share Capital of the Company) |
53.85 |
53.72 |
53.85 |
|
Particulars |
3 Months ended on March 31, 2012 |
|
Pending at the beginning of the quarter |
Nil |
|
Received during the quarter |
5 |
|
Disposed of during the quarter |
5 |
|
Remaining unresolved at the end of the
quarter |
Nil |
NOTES:
- The above results were reviewed by the Audit
Committee and were thereafter approved by the Board of Directors of the
Company at their respective meetings held on May 09, 2013. The information
presented above is extracted from the audited financial statements.
- Pursuant to the Announcement 'Accounting for
Derivatives' by the Institute of Chartered Accountants of India, the
Company has adopted Accounting Standard 30, Financial Instruments:
Recognition and Measurement, prescribed by the Institute of Chartered Accountants
of India, during the quarter ended September 30, 2008. Consequently,
outstanding forward contracts have been treated as highly probable
forecast transactions based on historic trends. Accordingly, losses
arising on ' mark to market' of such open forward contracts have been
accumulated in 'Hedging Reserve Account'. The net loss transferred out of
Hedging Reserve Account during the quarter ended March 31, 2013 amounts to
Rs. 20.549 Millions (net gain transferred to Hedging Reserve Account
during the quarter ended March 31, 2012 amounts to Rs. 51.824 Millions).
The net losses transferred out from Hedging Reserve Account for the year
ended March 31, 2013 amounts to Rs. 44.234 Millions (net losses
transferred to Hedging Reserve Account for year ended March 31, 2012
amounts to Rs. 73.076 Millions). The Company uses forward contracts as
economic hedges and not for trading or speculative purposes.
- In accordance with the requirements of Clause
41 of the Listing Agreement with the Stock Exchanges, the Statutory
Auditors have performed an audit of the standalone and consolidated
financial results of Blue Star Infotech Limited for the year ended March
31, 2013. There are no qualifications in the audit report issued for the
said year.
- Other Income for the quarter ended March 31,
2013 includes rental income on lease of office premises - Rs. 12.257
Millions (Rs. 7.511 Millions for the quarter ended March 31, 2012). Other
Income for the year ended March 31, 2013 includes rental income on lease
of office premises - Rs. 45.879 Millions (Rs. 36.991 Millions for year
ended March 31,2012 ).
- The Company considers its entire business /
geographical operations as a single segment. There are no separate
reportable segments as per Accounting Standard 17, Segment Reporting.
- The Company has designated an exclusive
e-mail id viz. Investor.Relations@bsil.com for investor grievance
redressal.
- The Company's standalone results are available
on the websites of the Company, the Bombay Stock Exchange Limited, Mumbai
and National Stock Exchange of India Limited.
- Previous period's figures have been
re-grouped/rearranged wherever necessary to make their classification
comparable with the current period.
- The figures for the quarter end March 31, 2013
and March 31, 2012 being balancing figures between the audited figures
arrived at based on audited results of the full financial years and the
published year to date unaudited figures for nine months ended December
31, 2012 and December 31, 2011, respectively.
- The Board has proposed a dividend of
Rs. 2/- per share
ASSETS AND LIABILITIES AS
AT MARCH 31, 2013
Rs. in Millions
|
PARTICULARS |
31.03.2012 AUDITED |
|
Equity and liabilities |
|
|
Shareholders' fund |
|
|
Share capital |
103.850 |
|
Reserve & surplus |
805.024 |
|
Sub-total
- Shareholders' funds |
908.874 |
|
Non - current liabilities |
|
|
Long term borrowings |
15.624 |
|
Deferred tax liability (net) |
0.000 |
|
Other long term liabilities |
33.158 |
|
Long term provisions |
8.542 |
|
Sub-total
- Non-current liabilities |
57.324 |
|
Current liabilities |
|
|
Short term borrowings |
0.000 |
|
Trade payables |
39.393 |
|
Other current liabilities |
118.586 |
|
Short term provisions |
24.465 |
|
Sub-total
- Current liabilities |
182.444 |
|
|
|
|
Total -
Equity & Liabilities |
1148.642 |
|
|
|
|
Assets |
|
|
Non-current assets |
|
|
Fixed assets |
|
|
Tangible assets |
204.377 |
|
Intangible assets |
12.301 |
|
Intangible assets under development |
6.263 |
|
Non-current investment |
155.521 |
|
Long term loans & advances |
183.853 |
|
Other non-current assets |
4.777 |
|
Sub-total
- Non-current Assets |
567.092 |
|
Current
assets |
|
|
Current investments |
11.294 |
|
Inventories |
0.000 |
|
Trade receivables |
414.611 |
|
Cash & bank balances |
135.627 |
|
Short term loans & advances |
13.080 |
|
Other current assets |
6.938 |
|
Sub-total
- Current Assets |
581.550 |
|
|
|
|
Total –
Assets |
1148.642 |
NEWS:
BLUE STAR
INFOTECH TO MAKE STRATEGIC INVESTMENT IN ACTIVECUBES
POISED TO ADDRESS THE $13.8 BILLION BUSINESS
INTELLIGENCE AND ANALYTICS MARKET; MARKS THE INITIATION OF INORGANIC GROWTH IN
FY 13-14
Mumbai, India, May 31, 2013: Blue Star Infotech Limited, the global software services and solutions provider, today announced that it has entered into definitive agreements for a strategic alliance and investment in the equity of Activecubes Solutions India Private Limited, a global firm operating in the Decision Management Space. Activecubes is a leading provider of Business Intelligence and Analytics solutions.
Emerging technologies such as BI/ Analytics and mobility are a key component of the company’s strategic focus areas for growth in the near future and this alliance will enable Blue Star Infotech to strengthen its foothold in this space. Being a cash rich company, Blue Star Infotech plans to enhance its capabilities through the inorganic route and investment in Activecubes is a step towards that growth path.
Both Blue Star Infotech and Activecubes have a strong
presence in the US, with significant areas of synergy and leverage.
Commenting on the strategic alliance Mr. Sunil Bhatia, CEO and MD, Blue
Star Infotech said, “Business Intelligence and Analytics is one
of our key focus areas and we see great potential in this space. Activecubes is
a very prominent player and has been recognized through multiple awards like
Red Herring Global Top 100, India Innovation Award, Karnataka STPI Award,
etc. Leveraging their specialized expertise in the sector will further
strengthen our business. This association will help our clients in not only
deriving business efficiencies, but also revenue enhancement through custom
offerings based on studying customer behaviour and market trends.”
Rajesh Varrier, CEO, Activecubes said on the occasion, “Our association with Blue Star Infotech will help us broaden our activity spectrum. The synergy between both the companies will help us enhance our expertise in BI and Analytics and will boost our vision of being the best in providing competitive advantage to the client through the use of analytics. Our clients will benefit from Blue Star Infotech’s broad range of service offerings. Also, the size of the overall team, access to knowledge pools and other resources would increase manifold.”
Creating
Value from this partnership between Blue Star Infotech and Activecubes -
- Complements Blue Star Infotech’s focus on Product Engineering, Travel and Hospitality and Health Care verticals: The association with Activecubes will enhance Blue Star Infotech’s capabilities in BI and Analytics sector with a focus on these verticals.
- Cross-selling and Up-scaling: This initiative presents the opportunity to cross sell Blue Star Infotech’s solutions to Activecubes customers. It also paves the way for account mining and increases the overall management bandwidth.
- Strong customer relationships of Blue Star Infotech: Activecubes will benefit from Blue Star Infotech’s strong customer relationships in Product Engineering and Travel and Hospitality Industry. The company will also gain from Blue Star Infotech’s broad spectrum of offerings such as Application Development and Management, Product Engineering, Package Implementation, Testing, Mobility and Cloud Computing.
- Integration of services and operations: Activecubes and Blue Star Infotech will work towards creating a combined BI and Analytics practice. This will enable it to provide comprehensive service offerings to clients globally.
ABOUT BLUE STAR
INFOTECH
Part of the well-known Blue Star Group, Blue Star Infotech Limited. is a global
provider of IT solutions and services with operations in USA, Europe, India and
Singapore. The company caters to the IT and software R and D needs
of enterprises globally, and offers a broad spectrum of services ranging
from Application Development and Management, Product Engineering, Package
Implementation and Testing to new age solutions such as Analytics/Business
Intelligence, Mobility and Cloud Computing. Blue Star Infotech’s mission is to
help global enterprises derive measurable business outcomes through the
effective use and adoption of information technology.
The company has worked with leaders in various industries such as
Manufacturing, Travel and Hospitality, Hi-tech, Media and Entertainment and
Healthcare and enabled them to effectively align IT to business objectives
while dealing with challenges faced due to globalization and consolidation.
Blue Star Infotech is a public company listed on the Bombay and National Stock
exchanges of India.
Blue Star Infotech has well-established relationships with leading technology
companies such as HP, Microsoft, Oracle, SAS, IBM, Qlik View and Data Systems
International. It services its global clientele through a Global Delivery
Network which spans India (Mumbai and Bangalore), USA (Milwaukee, WI) and
Singapore.
ABOUT ACTIVECUBES
Activecubes is a global firm providing Business Intelligence and Analytics services. Incepted in 2007, Activecubes believes in empowering its clients with intelligence to make the best decisions.
By leveraging proven global service delivery methodologies, Activecubes provides solutions to global clients across financial services, consumer packaged goods, retail, telecom and health care. Activecubes’ services span key areas like sales, marketing, supply chain, operations, and risk management.
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.58.93 |
|
|
1 |
Rs.91.80 |
|
Euro |
1 |
Rs.78.18 |
INFORMATION DETAILS
|
Information Gathered
by : |
PDT |
|
|
|
|
Report Prepared
by : |
TPT / DPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
46 |
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.