MIRA
INFORM REPORT
|
Report Date : |
28.11.2013 |
IDENTIFICATION DETAILS
|
Name : |
ORACLE FINANCIAL SERVICES SOFTWARE LIMITED |
|
|
|
|
Registered
Office : |
Oracle Park, Off Western Express Highway, Goregaon (East),
Mumbai-400063, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on)
: |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
27.09.1989 |
|
|
|
|
Com. Reg. No.: |
11-053666 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.420.330
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L72200MH1989PLC053666 |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Providing Information Technology Solutions and Knowledge Processing
Services. |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (75) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 291690000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well-established and reputed company having fine track
record. Financial position of the company appears to be sound. Fundamentals
are strong and healthy. Directors are reported as well experienced and
knowledge people. Trade relations are reported as fair. Business is active. Payments are
reported to be regular and as per commitments. The company can be considered for normal business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
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
The current downturn
provides an opportunity to push ahead with reforms to accelerate growth, says
the latest India Development Update report released by the World Bank. The
report says that the adverse effects of rupee depreciation are likely to be
offset by the gains in the exports performance due to improved external
competitiveness. Since May this year, the local currency has depreciated
substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.
A stagflation like
situation appears to have arisen as inflation jumped to an eight month high of
6.46 % for the month of September. It is up from 6.10 % in August. Growth
continues to be muted with factory output plunging to 0.6 % in August.
Onion prices have risen nearly 300 % from last September. Vegetables cost
nearly 90 % more than they did last year. Wake up to the economic contribution
of slum dwellers. They contribute more than 7.5 % to the country’s gross
domestic product, according to a recent study conducted in 50 top cities.
136000 estimated
number of jobs created during the second quarter of the current financial year.
50000 estimated number of additional jobs in the field of corporate social
responsibility in the coming years.
The International Finance
Corporation expects to come out with its rupee linked bonds issue before the
end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c (Rs
41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has been launched
in India from 1st November.
The Land Acquisition
Act to provide just and fair compensation to farmers will come into force from
January 1 next year, said Rural Development Minister Jairam Ramesh. The Act
replaces a 119 year old registration. The Securities and Exchange Board of
India has approved the trading of currency futures on the Bombay Stock
Exchange. The exchange plans to launch the currency futures platform with
advanced trading technology by the end of November.
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 : |
Oracle Park, Off Western Express Highway, Goregaon (East),
Mumbai-400063, Maharashtra, India |
|
Tel. No.: |
91-22-67185000/ 67183000 |
|
Fax No.: |
91-22-28315593/ 67183001 |
|
E-Mail : |
|
|
|
|
|
Branch Office : |
Located At: ·
Mumbai ·
Bangalore ·
Chennai |
|
|
|
|
Overseas Office : |
Located At: ·
Moscow ·
Dubai |
DIRECTORS
AS ON 31.03.2013
|
Name : |
Mr. S Venkatachalam |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Chaitanya Kamat |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Derek H Williams |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Harinderjit Singh |
|
Designation : |
Director |
|
|
|
|
Name : |
Richard Jackson |
|
Designation : |
Director |
|
|
|
|
Name : |
Robert K Weiler |
|
Designation : |
Director |
|
|
|
|
Name : |
Samantha Wellington |
|
Designation : |
Director |
|
|
|
|
Name : |
William Corey West |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Y M Kale |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Chaitanya Kamat |
||||||||||||||||||||||||||||||||||||||
|
Designation : |
Chief Executive Officer |
||||||||||||||||||||||||||||||||||||||
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|
||||||||||||||||||||||||||||||||||||||
|
Name : |
Hoshi D Bhagwagar |
||||||||||||||||||||||||||||||||||||||
|
Designation : |
Company Secretary |
||||||||||||||||||||||||||||||||||||||
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|
|
||||||||||||||||||||||||||||||||||||||
|
Name : |
Mr. Makarand Padalkar |
||||||||||||||||||||||||||||||||||||||
|
Designation : |
Chief Financial Officer |
||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||
|
Name : |
Mr. Avadhut (Vinay) Ketkar |
||||||||||||||||||||||||||||||||||||||
|
Designation : |
Chief Accounting Officer |
||||||||||||||||||||||||||||||||||||||
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|
||||||||||||||||||||||||||||||||||||||
|
Management Team: |
|
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2013
|
Category of Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
|
|
|
|
63051197 |
74.98 |
|
|
63051197 |
74.98 |
|
Total shareholding of Promoter and Promoter Group (A) |
63051197 |
74.98 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
2140713 |
2.55 |
|
|
6156 |
0.01 |
|
|
4000 |
0.00 |
|
|
9565717 |
11.38 |
|
|
11716586 |
13.93 |
|
|
|
|
|
|
847200 |
1.01 |
|
|
|
|
|
|
3636962 |
4.32 |
|
|
1492889 |
1.78 |
|
|
3348237 |
3.98 |
|
|
26549 |
0.03 |
|
|
105 |
0.00 |
|
|
1009640 |
1.20 |
|
|
800 |
0.00 |
|
|
2000 |
0.00 |
|
|
5692 |
0.01 |
|
|
182978 |
0.22 |
|
|
2120473 |
2.52 |
|
|
9325288 |
11.09 |
|
Total Public shareholding (B) |
21041874 |
25.02 |
|
Total (A)+(B) |
84093071 |
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) |
84093071 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Providing Information Technology Solutions and Knowledge Processing
Services. |
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
|
|
|
|
Bankers : |
·
Bank of India ·
Canara Bank ·
Central Bank of Libya ·
Citibank, N.A. ·
HDFC Bank Limited ·
Kotak Mahindra Bank Limited ·
J P Morgan Chase ·
Syndicate Bank ·
Yes Bank Limited |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
S.R. Batliboi and Associates
LLP Chartered Accountants |
|
|
|
|
Holding Company : |
Oracle Global (Mauritius) Limited |
|
|
|
|
Ultimate Holding Company : |
Oracle Corporation |
|
|
|
|
Associate : |
Login S. A. |
|
|
|
|
Direct Subsidiaries : |
·
Oracle Financial Services Software B.V. ·
Oracle Financial Services Software Pte. Limited ·
Oracle Financial Services Software Chile Limitada ·
Oracle Financial Services Software (Shanghai)
Limited ·
Oracle Financial Services Software America, Inc. ·
ISP Internet Mauritius Company ·
Oracle (OFSS) Processing Services Limited ·
Oracle (OFSS) ASP Private Limited Subsidiary of Oracle Financial Services Software B.V. - Oracle Financial Services Software SA Subsidiary of Oracle Financial Services Software Pte. Limited - Oracle Financial Services Consulting Pte. Limited Subsidiaries of Oracle Financial Services Software America, Inc. - Oracle Financial Services Software, Inc. - Mantas Inc. Subsidiaries of Mantas Inc. - Mantas Singapore Pte. Limited (dissolved on March 01, 2012) - Mantas India Private Limited - Mantas Limited (dissolved on April 10, 2012) - Sotas Inc. Subsidiaries of ISP Internet Mauritius Company - Oracle (OFSS) BPO Services Inc. - Oracle (OFSS) BPO Services Limited |
|
|
|
|
Fellow Subsidiaries : |
·
Oracle America, Inc. ·
Oracle Hungary Kft. ·
Oracle Egypt Limited ·
Oracle Nederland B.V. ·
Oracle Caribbean, Inc. ·
Oracle Systems Limited - Saudi Arabia ·
Oracle India Private Limited ·
Oracle Software Systems Israel Limited ·
Oracle Corporation Australia Pty. Limited ·
Oracle Corporation Singapore Pte. Limited ·
Oracle Corporation (Thailand) Company Limited ·
Oracle do Brasil Sistemas Limitada ·
Oracle Systems Limited - Cyprus ·
Oracle Systems Limited - Dubai ·
Oracle Software (Schweiz) GmbH ·
Oracle Systems Hong Kong Limited ·
Oracle Systems Pakistan (Private) Limited ·
Oracle East Central Europe Services BV ·
Oracle Corporation (South Africa)(Pty) Limited ·
Oracle Portugal - Sistemas de Informaçăo Lda. ·
Oracle Solution Services (India) Private Limited ·
Oracle Research and Development Center, Shenzhen,
Limited |
CAPITAL STRUCTURE
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
100000000 |
Equity Shares |
Rs.5/- each |
Rs.500.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
84065478 |
Equity Shares |
Rs.5/- each |
Rs.420.330
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
|
31.03.2013 |
31.03.2012 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
420.330 |
419.870 |
|
(b) Reserves & Surplus |
|
72503.140 |
62049.310 |
|
(c) Money received
against share warrants |
|
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share
Application money pending allotment |
|
0.000 |
1.240 |
|
Total Shareholders’ Funds (1) + (2) |
|
72923.470 |
62470.420 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term
borrowings |
|
0.000 |
0.000 |
|
(b) Deferred tax liabilities (Net) |
|
0.000 |
0.000 |
|
(c) Other long
term liabilities |
|
183.120 |
133.230 |
|
(d) long-term
provisions |
|
421.410 |
332.410 |
|
Total Non-current
Liabilities (3) |
|
604.530 |
465.640 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
|
0.000 |
0.000 |
|
(b)
Trade payables |
|
139.160 |
181.740 |
|
(c)
Other current liabilities |
|
8674.540 |
7215.900 |
|
(d) Short-term
provisions |
|
917.190 |
804.450 |
|
Total Current
Liabilities (4) |
|
9730.890 |
8202.090 |
|
|
|
|
|
|
TOTAL |
|
83258.890 |
71138.150 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i) Tangible
assets |
|
3739.750 |
3555.250 |
|
(ii)
Intangible Assets |
|
0.000 |
0.000 |
|
(iii)
Capital work-in-progress |
|
132.700 |
544.470 |
|
(iv) Intangible assets under development |
|
0.000 |
0.000 |
|
(b) Non-current
Investments |
|
7282.400 |
7282.400 |
|
(c) Deferred tax
assets (net) |
|
667.710 |
640.560 |
|
(d) Long-term Loan and Advances |
|
6607.410 |
5383.440 |
|
(e) Other
Non-current assets |
|
158.360 |
142.860 |
|
Total Non-Current
Assets |
|
18588.330 |
17548.980 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
|
9.980 |
9.980 |
|
(b)
Inventories |
|
0.000 |
0.000 |
|
(c)
Trade receivables |
|
9685.820 |
11442.930 |
|
(d) Cash
and cash equivalents |
|
50183.440 |
35109.200 |
|
(e)
Short-term loans and advances |
|
668.630 |
2887.350 |
|
(f)
Other current assets |
|
4122.690 |
4139.710 |
|
Total
Current Assets |
|
64670.560 |
53589.170 |
|
|
|
|
|
|
TOTAL |
|
83258.890 |
71138.150 |
|
SOURCES OF FUNDS |
|
|
31.03.2011 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
|
419.474 |
|
|
2] Share Application Money |
|
|
0.775 |
|
|
3] Reserves & Surplus |
|
|
51083.069 |
|
|
4] (Accumulated Losses) |
|
|
0.000 |
|
|
NETWORTH |
|
|
51503.318 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
|
0.000 |
|
|
2] Unsecured Loans |
|
|
0.000 |
|
|
TOTAL BORROWING |
|
|
0.000 |
|
|
DEFERRED TAX LIABILITIES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
51503.318 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
|
3089.595 |
|
|
Capital work-in-progress |
|
|
639.699 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
7292.365 |
|
|
DEFERREX TAX ASSETS |
|
|
690.180 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
0.000 |
|
|
Sundry Debtors |
|
|
7700.985 |
|
|
Cash & Bank Balances |
|
|
25380.296 |
|
|
Other Current Assets |
|
|
3529.914 |
|
|
Loans & Advances |
|
|
9902.925 |
|
Total
Current Assets |
|
|
46514.120 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
|
62.404 |
|
|
Other Current Liabilities |
|
|
5719.519 |
|
|
Provisions |
|
|
940.718 |
|
Total
Current Liabilities |
|
|
6722.641 |
|
|
Net Current Assets |
|
|
39791.479 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
51503.318 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
29377.010 |
26058.540 |
23605.058 |
|
|
|
Other Income |
4403.200 |
3750.340 |
19.798 |
|
|
|
TOTAL |
33780.210 |
29808.880 |
23624.856 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Employee costs |
14357.070 |
12532.650 |
|
|
|
|
Travel related expenses (net of recoveries) |
1238.150 |
1079.810 |
|
|
|
|
Professional fees |
1345.960 |
1395.720 |
12944.496 |
|
|
|
Other expenses |
1205.350 |
1155.560 |
|
|
|
|
Profit before exceptional items and tax exceptional items |
0.000 |
(2414.980) |
|
|
|
|
TOTAL |
18146.530 |
13748.760 |
12944.496 |
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
15633.680 |
16060.120 |
10680.360 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
586.080 |
401.190 |
336.488 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX |
15047.600 |
15658.930 |
10343.872 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
4755.000 |
4766.600 |
664.075 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX |
10292.600 |
10892.330 |
9679.797 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Product Licenses and Related Activities |
21187.250 |
18194.790 |
15306.208 |
|
|
|
IT Solutions and Consulting Services |
6899.240 |
6838.990 |
7355.835 |
|
|
|
Dividend Income |
0.000 |
3108.300 |
4.824 |
|
|
|
Interest Income |
8.380 |
6.520 |
22666.867 |
|
|
TOTAL EARNINGS |
28094.870 |
28148.600 |
45333.734 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Capital Goods |
94.610 |
179.470 |
96.544 |
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
|
|
|
|
|
|
-
Basic |
122.52 |
129.78 |
115.40 |
|
|
|
-
Diluted |
121.96 |
129.65 |
115.23 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2013 |
30.09.2013 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
7435.200 |
8250.400 |
|
Total Expenditure |
|
4570.700 |
4977.400 |
|
PBIDT (Excl OI) |
|
2864.500 |
3273.000 |
|
Other Income |
|
1588.300 |
1594.900 |
|
Operating Profit |
|
4452.800 |
4867.900 |
|
Interest |
|
0.000 |
0.000 |
|
PBDT |
|
4452.800 |
4867.900 |
|
Depreciation |
|
161.100 |
160.000 |
|
Profit Before Tax |
|
4291.700 |
4707.900 |
|
Tax |
|
1429.800 |
1594.900 |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
2861.900 |
3113.000 |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Net Profit |
|
2861.900 |
3113.000 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
30.47
|
36.54 |
40.97 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
51.22
|
60.09 |
43.82 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
20.02
|
24.99 |
20.85 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.21
|
0.25 |
0.20 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.00
|
0.00 |
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
6.65
|
6.53 |
6.92 |
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 |
No |
|
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 |
Yes |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
No |
INDEX OF CHARGES: NO CHARGES EXIST FOR COMPANY
CORPORATE
INFORMATION:
Subject was
incorporated in India with limited liability on September 27, 1989. The Company
is a subsidiary of Oracle Global (Mauritius) Limited (“Oracle”) with Oracle
holding 80.27% (March 31, 2012 - 80.36%) ownership interest in the Company as
at March 31, 2013.
The Company along
with its subsidiaries and associate is principally engaged in the business of
providing information technology solutions and knowledge processing services to
the financial services industry worldwide. The Company has a suite of banking
products, which caters to the needs of corporate, retail, investment banking,
treasury operations and data warehousing.
MANAGEMENT’S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS:
TECHNOLOGY IN THE
FINANCIAL SERVICES INDUSTRY:
Banks worldwide
are reexamining and realigning their current operations to remain profitable.
In the wake of the global financial crisis, a wave of greater regulatory
scrutiny and obligations has swept the banking industry. The long-term impact
of this in terms of capital allocations, costs and profitability is significant
for banks. In the backdrop of a continuing business environment of changing
customer needs, competition from established brands in other domains, and a
proliferation of delivery channels, the challenges banks face become sharper in
relief.
The way forward
for banks is quite clear. To succeed, banks need to innovate irrespective of
their size. And innovation in the banking industry is supported by—if not led
by—technology. Limited by technology, many financial institutions are forced to
adopt rigid strategies, relying on their branch networks to acquire customers,
build relationships and extend their businesses. Further, any response to the
changing customer needs is met by further complicating their IT landscape. By
focusing too narrowly on “branch banking”—by building processes and creating
products reliant on the branch as a delivery channel—many banks in evolved and
emerging economies, have missed prime opportunities, which others have
capitalized upon. There are number of instances of how other financial
institutions approaching these challenging times with an alternative, creative
mindset have succeeded. OFSS products and solutions provide precisely this edge
to banks. The Company believes that the momentum for change in the industry
will continue. They see this in the abiding success and recognition they
receive, year after year, for the offerings they deliver. The Company’s
products consistently win accolades from the international analyst community
for its leadership and delivery capability. Banking Technology named Oracle
FLEXCUBE the Readers’ Choice for Best Core Banking Product for 2012. Banks who
have deployed the Company’s products have won recognition too. Mashreq Bank’
FLEXCUBE deployment won the Asian Banker Technology Award for the Best Core
Banking Implementation in the Middle East. The Company’s strategy continues to
be centered on consolidation of the position in existing markets and expansion
of their addressable market by launching relevant offerings to segments hereto
not addressed and opening major markets.
BUSINESS OVERVIEW:
Oracle Financial
Services Software Limited (‘‘OFSS’’), majority owned by Oracle, is a world
leader in providing IT solutions to the financial services industry. With its
experience of delivering value based IT solutions to global financial
institutions, Oracle Financial Services Software understands the specific challenges
that financial institutions face: the need for building customer intimacy and
competitive advantage through cost-effective solutions while, simultaneously,
adhering to the stringent demands of a dynamic regulatory environment.
Their mission is
to enable financial institutions to excel through the effective use of
information technology. They offer financial institutions the world’s most
comprehensive and contemporary banking applications and a technology footprint
that addresses their complex IT and business requirements. Together with
Oracle, they offer a comprehensive suite of offerings encompassing retail,
corporate, and investment banking, funds, cash management, trade, treasury,
payments, lending, private wealth management, asset management, compliance,
enterprise risk and business analytics, among others. With a process-driven
approach for service-oriented architecture (SOA) deployments, they offer banks
the combined benefits of interoperability, extensibility, and standardization.
They also offer best-of-breed functionality for financial institutions that
need to operate flexibly and competitively and respond rapidly to market
dynamics in a fiercely challenging business environment. They have two major
business segments - the products business (comprising product licensing,
consulting and support) and consulting services (comprising IT application and
technology services). They also have a smaller business segment that offers
business process outsourcing services to financial institutions.
OUTLOOK:
The Company
strategy is to expand its market by gaining competitive edge through product
differentiation. They will continue to invest heavily in product enhancements,
both in terms of functional capability and technology. They will also continue
to extend our reach across the world, especially in large, promising, markets,
such as China and Brazil, as indeed Latin America in general. They have a
focused investment plan for these new markets. Their success rate at replacing
legacy core banking systems, even in complex business environments, continues
to be impressive with respect to competition. Their efforts at maintaining this
leadership position include expanding their footprint with their existing
clients. Their partnership with many of their clients is strategic: they are
well-positioned to address their changing, growing, technology needs for the
long haul. The Company’s ability to deliver unified technology platforms for
both organic and inorganic expansion is proven and recognized. Their multi-country
rollout capabilities for large, Tier One, banks is unmatched in the industry,
and they will build on their capabilities in this area to stay ahead of the
field. The Company, along with Oracle, is well placed to address these
opportunities by providing a technology stack that is complete and optimized
for the industry, along with the necessary services.
FIXED ASSETS:
·
Freehold Land
·
Improvement to Leasehold
Premises
·
Building
·
Computer Equipment
·
Office Equipment
·
Electrical and Other
Installation
·
Furniture and Fixtures
·
Vehicles
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No 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.62.36 |
|
|
1 |
Rs.101.11 |
|
Euro |
1 |
Rs.84.67 |
INFORMATION DETAILS
|
Report Prepared
by : |
TPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
75 |
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.