MIRA INFORM REPORT
|
Report Date : |
03.09.2013 |
IDENTIFICATION DETAILS
|
Name : |
DYNACONS SYSTEMS AND SOLUTIONS LIMITED |
|
|
|
|
Registered
Office : |
78, Ratnajyot Industrial Estate, Irla Lane, Vile Parle (West), Mumbai
– 400056, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
26.09.1995 |
|
|
|
|
Com. Reg. No.: |
11-093130 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 59.231
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L72200MH1995PLC093130 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMD09894D/ MUMD05367F |
|
|
|
|
PAN No.: [Permanent Account No.] |
AABCD1621Q |
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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
: |
Subject is an IT solutions company and is engaged in providing
a comprehensive range of end-to-end solutions. |
|
|
|
|
No. of Employees
: |
Information declined by the management. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (44) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 600000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
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|
|
Litigation : |
Clear |
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|
Comments : |
Subject is an established company having satisfactory track record.
Trade relations are reported as fair. Business is active. Payments are
reported to be usually correct and as per commitments. The company can be considered normal for 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.
INDIAN ECONOMIC OVERVIEW
We are living in a
world where volatility and uncertainty have become the New Normal. We saw
a change of government in countries like Tunisia, Egypt, Libya and Vietnam.
Once powerful countries in Europe are now fighting for bankruptcy. We have
taken growth in the developing part of the world for granted but economic
growth in China and India has begun to slow. Companies that were synonymous
with their product categories just a few years ago are now no longer in
existence. Kodak, the inventor of the digital camera had to wind up its
operations, HMV, the British entertainment retailing company and Borders, once
the second largest bookstore have shut down due to their inability to evolve
their business models with the changing time. Readers’ Digest, Thomson Register
are no more !
There is another
megatrend happening. The World order is changing as economic power shifts from
West to East. According to McKinsey study, it took Britain more than 100 years
to double its economic output per person during its industrial revolution and
the US later took more than 50 years to do the same. More than a century later,
China and India have doubled their GDP per capital in 12 and 18 years
respectively. By 2020, emerging Asia will become the world’s largest consuming
block, overtaking North America.
The years after the
outbreak of the global financial crisis, the world economy continues to remain
fragile. The Indian economy demonstrated remarkable resilience in the initial years
of the contagion but finally lost ground last year. GDP growth slowed down.
Currency has been weakening. There is a marked deceleration in agriculture,
industry and services. Dampening sentiment led to a cut-back in investment as
well as private consumption expenditure. Inflation remained at high
levels fuelled by the pressure from the food and fuel sectors. The large fiscal
and current account deficit s continued to cause grave concern. It is
imperative that India regains its growth trajectory of 8-9 % sooner than later.
This is crucially important given the need to create gainful livelihood
opportunities for the millions living in poverty as also the large contingent
of young people joining the job market every year.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Fund based limits: BB+ |
|
Rating Explanation |
Moderate risk of default. |
|
Date |
March 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.
INFORMATION PARTED BY (PARTIAL DETAILS)
|
Name : |
Ms. Mansi |
|
Designation : |
Admin |
|
Contact No.: |
91-22-66889900 |
|
Date : |
31.08.2013 |
LOCATIONS
|
Registered Office/ Head Quarters : |
78, Ratnajyot Industrial Estate, Irla Lane, Vile Parle (West), Mumbai
– 400056, Maharashtra, India |
|
Tel. No.: |
91-22-66889900 |
|
Fax No.: |
91-22-26716641 |
|
E-Mail : |
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|
Website : |
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Overseas Office: |
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Branch Offices: |
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Other Locations: |
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DIRECTORS
As on: 31.03.2012
|
Name : |
Mr. Shirish M. Anjaria |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Mr. Parag J. Dalal |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Mr. Dharmesh S. Anjaria |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Mr. Mukesh P. Shah |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Dilip P. Palicha |
|
Designation : |
Director ( Nominee of Shareholders) |
|
|
|
|
Name : |
Mr. Viren C. Shah |
|
Designation : |
Director |
|
Date of Birth/Age : |
46 Years |
|
Qualification : |
Advance Post Graduate in Computer and Systems management. Certificate in Oracle / SQL and RDBMS Concepts. |
|
Date of Appointment : |
20.03.2001 |
|
|
|
|
Name : |
Mr. Vishal G. Chappar |
|
Designation : |
Additional Director (Appointed w.e.f. Aug 8, 2012) |
|
Date of Birth/Age : |
39 Years |
|
Qualification : |
B.Com, A.C.A., MBA (NMIMS distance learning), C.I.A (US) |
|
Date of Appointment : |
08.08.2012 |
KEY EXECUTIVES
|
Name : |
Mr. Ravishankar Singh |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 30.06.2013
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
|
|
|
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
1710969 |
28.89 |
|
|
46475 |
0.78 |
|
|
1757444 |
29.67 |
|
|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
1757444 |
29.67 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
|
|
|
|
375615 |
6.34 |
|
|
|
|
|
|
3044798 |
52.14 |
|
|
640599 |
10.82 |
|
|
61356 |
1.04 |
|
|
821 |
0.01 |
|
|
60535 |
1.02 |
|
|
4122368 |
70.33 |
|
Total Public
shareholding (B) |
4165636 |
70.33 |
|
Total (A)+(B) |
5923080 |
100.00 |
|
(C) Shares held
by Custodians and against which Depository Receipts have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
|
|
|
Total
(A)+(B)+(C) |
5923080 |
100.00 |
Shareholding belonging to the category
"Promoter and Promoter Group"
|
Sl.No. |
Name of the
Shareholder |
Details of Shares held |
|
|
No. of Shares held |
As a % of grand
total |
||
|
1 |
Shirish M Anjaria |
3,60,948 |
6.09 |
|
2 |
Dharmesh S Anjaria |
3,56,220 |
6.01 |
|
3 |
Parag J Dalal |
3,47,200 |
5.86 |
|
4 |
Nilam S Anjaria |
2,52,562 |
4.26 |
|
5 |
Jigna D Anjaria |
1,30,963 |
2.21 |
|
6 |
Devangi Parag Dalal |
1,34,640 |
2.27 |
|
7 |
Hasumati Dalal |
64,816 |
1.09 |
|
8 |
Shrish M Anjaria HUF |
3,543 |
0.06 |
|
9 |
Trigem Infosolutions Limited |
46,475 |
0.78 |
|
10 |
Parag J Dalal HUF |
60,077 |
1.01 |
|
|
Total |
17,57,444 |
29.67 |
Shareholding belonging to the category
"Public" and holding more than 1% of the Total No. of Shares
|
Sl. No. |
Name of the
Shareholder |
No. of Shares held |
Shares as % of
Total No. of Shares |
|
|
|
|
|
|
1 |
Sanjay Jain |
75000 |
1.27 |
|
|
Total |
75000 |
1.27 |
BUSINESS DETAILS
|
Line of Business : |
Subject is an IT solutions company and is engaged in
providing a comprehensive range of end-to-end solutions. |
|
|
|
|
Terms : |
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|
Selling : |
Cash and Credit |
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Purchasing : |
Cash and Credit |
GENERAL INFORMATION
|
Customers : |
End Users |
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No. of Employees : |
Information declined by the management. |
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Bankers : |
Dena Bank |
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Facilities : |
(Rs.
In Millions)
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
P. C. Ghadiali and Company Chartered Accountants |
|
Address : |
Mumbai, Maharashtra, India |
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Company in which
Wholetime Directors have substantial interest: |
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|
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|
Company in which
Directors have substantial interest: |
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|
|
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|
Firm in which Wholetime
Directors have substantial Interest: |
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CAPITAL STRUCTURE
As on: 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
30000000 |
Equity Shares |
Rs.10/- each |
Rs. 300.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
5923080 |
Equity Shares |
Rs.10/- each |
Rs. 59.231
Millions |
|
|
|
|
|
Pursuant to the Scheme of Arrangement the Equity Share Capital of the Company has been reorganised in the year 2010-11
The face value of equity shares of the company has been consolidated from Rs. 1 each to Rs. 10 each
The reconciliation of the number of shares outstanding is set out below:
|
Particulars |
As on 31.03.2012 |
|
|
No. of Shares |
|
Equity Shares at the beginning of the year |
59230800 |
|
Less : Reduction on Consolidation |
53307720 |
|
Equity Shares at the end of the year |
5923080 |
The details of Shareholders holding more than 5% shares:
|
Name of the
Shareholders |
As on 31.03.2012 |
|
Shirish Mansingh Anjaria |
|
|
No. of Shares |
360948 |
|
% held |
6.09 |
|
|
|
|
Dharmesh Shirish Anjaria |
|
|
No. of Shares |
356220 |
|
% held |
6.01 |
|
|
|
|
Parag Jitendra Dalal |
|
|
No. of Shares |
347200 |
|
% held |
5.86 |
As per of the company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents the both legal and beneficial ownership of shares.
1The Company has only one class of equity shares having a par value of 10 per share. Each shareholder is eligible for one vote per share held.
No bonus shares have been issued to equity share holders in last five years
No equity share shares been bought back in last five years.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2012 |
31.03.2011 |
|
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
59.231 |
59.231 |
|
(b) Reserves & Surplus |
|
92.053 |
81.742 |
|
(c) Money received against share warrants |
|
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
|
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
|
151.284 |
140.973 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
|
6.948 |
8.421 |
|
(b) Deferred tax liabilities (Net) |
|
9.176 |
8.755 |
|
(c) Other long term liabilities |
|
1.393 |
2.290 |
|
(d) long-term provisions |
|
0.890 |
0.713 |
|
Total Non-current
Liabilities (3) |
|
18.407 |
20.179 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
|
64.393 |
79.737 |
|
(b) Trade payables |
|
20.232 |
13.077 |
|
(c) Other current liabilities |
|
17.282 |
7.546 |
|
(d) Short-term provisions |
|
0.000 |
0.000 |
|
Total Current
Liabilities (4) |
|
101.907 |
100.360 |
|
|
|
|
|
|
TOTAL |
|
271.598 |
261.512 |
|
|
|
|
|
|
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
|
103.963 |
98.536 |
|
(ii) Intangible Assets |
|
0.000 |
0.000 |
|
(iii) Capital work-in-progress |
|
0.000 |
0.000 |
|
(iv) Intangible assets under development |
|
3.380 |
4.228 |
|
(b) Non-current Investments |
|
15.111 |
15.111 |
|
(c) Deferred tax assets (net) |
|
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
|
5.193 |
9.105 |
|
(e) Other Non-current assets |
|
2.660 |
0.020 |
|
Total Non-Current
Assets |
|
130.307 |
127.000 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
|
0.000 |
0.000 |
|
(b) Inventories |
|
58.973 |
51.158 |
|
(c) Trade receivables |
|
65.833 |
63.307 |
|
(d) Cash and cash equivalents |
|
15.563 |
17.802 |
|
(e) Short-term loans and advances |
|
0.922 |
0.805 |
|
(f) Other current assets |
|
0.000 |
1.440 |
|
Total Current Assets |
|
141.291 |
134.512 |
|
|
|
|
|
|
TOTAL |
|
271.598 |
261.512 |
|
SOURCES OF FUNDS |
|
|
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
|
59.230 |
|
|
2] Share Application Money |
|
|
0.000 |
|
|
3] Reserves & Surplus |
|
|
74.051 |
|
|
4] (Accumulated Losses) |
|
|
0.000 |
|
|
NETWORTH |
|
|
133.281 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
|
74.430 |
|
|
2] Unsecured Loans |
|
|
0.000 |
|
|
TOTAL BORROWING |
|
|
74.430 |
|
|
DEFERRED TAX LIABILITIES |
|
|
7.150 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
214.861 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
|
101.933 |
|
|
Capital work-in-progress |
|
|
4.950 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
15.111 |
|
|
DEFERREX TAX ASSETS |
|
|
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
21.150 |
|
|
Sundry Debtors |
|
|
88.411 |
|
|
Cash & Bank Balances |
|
|
9.690 |
|
|
Other Current Assets |
|
|
0.000 |
|
|
Loans & Advances |
|
|
26.271 |
|
Total
Current Assets |
|
|
145.522 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
|
46.142 |
|
|
Other Current Liabilities |
|
|
6.028 |
|
|
Provisions |
|
|
0.485 |
|
Total
Current Liabilities |
|
|
52.655 |
|
|
Net Current Assets |
|
|
92.867 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
214.861 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operation |
519.396 |
423.334 |
380.611 |
|
|
|
Other Income |
2.578 |
2.562 |
0.191 |
|
|
|
TOTAL (A) |
521.974 |
425.896 |
380.802 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Purchases of Stock-in-Trade |
456.418 |
|
|
|
|
|
Changes In Inventories Of Stock-In-Trade |
(7.815) |
(30.008) |
|
|
|
|
Employee Benefits Expense |
23.153 |
15.879 |
|
|
|
|
Other Expenses |
13.743 |
11.390 |
|
|
|
|
TOTAL (B) |
485.499 |
393.244 |
358.687 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
36.475 |
32.652 |
22.115 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
12.154 |
12.059 |
5.061 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
24.321 |
20.593 |
17.054 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
9.853 |
9.181 |
7.275 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
14.468 |
11.412 |
9.779 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
4.156 |
3.721 |
2.510 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
10.312 |
7.691 |
7.269 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
1.74 |
1.30 |
0.12 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 1st
Quarter |
30.09.2012 2nd
Quarter |
31.12.2012 3rd
Quarter |
31.03.2013 4th
Quarter |
30.06.2013 5th
Quarter |
|
Audited / Unaudited |
Unaudited |
Unaudited |
Unaudited |
Unaudited |
Unaudited |
|
Net Sales |
120.100 |
158.000 |
133.600 |
175.400 |
220.600 |
|
Total Expenditure |
111.500 |
147.300 |
126.500 |
171.600 |
213.200 |
|
PBIDT (Excl OI) |
8.600 |
10.600 |
7.000 |
3.800 |
7.500 |
|
Other Income |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Operating Profit |
8.600 |
10.600 |
7.000 |
3.800 |
7.500 |
|
Interest |
2.800 |
3.000 |
3.100 |
3.300 |
3.200 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
5.900 |
7.600 |
3.900 |
0.500 |
4.300 |
|
Depreciation |
2.500 |
3.400 |
2.900 |
1.700 |
2.600 |
|
Profit Before Tax |
3.400 |
4.200 |
1.100 |
(1.200) |
1.700 |
|
Tax |
0.700 |
0.800 |
0.100 |
0.700 |
0.300 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
2.600 |
3.500 |
0.900 |
(1.900) |
1.300 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
2.600 |
3.500 |
0.900 |
(1.900) |
1.300 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
1.98 |
1.81 |
1.91 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
2.79 |
2.70 |
2.57 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
5.71 |
4.71 |
3.95 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.10 |
0.09 |
0.07 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.47 |
0.62 |
0.56 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.39 |
1.35 |
2.76 |
LOCAL AGENCY FURTHER INFORMATION
CURRENT MATURITIES
OF LONG-TERM DEBT DETAILS: NOT AVAILABLE
|
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 |
Yes |
|
8] |
No. of employees |
No |
|
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 |
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 |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN 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 |
COMPANY OVERVIEW
Subject is an IT solutions company with global perspectives and is engaged in providing a comprehensive range of end-to-end solutions to customers. Dynacons has the technical expertise and the service delivery infrastructure to serve Customers at a level of quality consistent with their expectations. Dynacons helps in the selection of the right technology and application that will yield the greatest return and build a business case for implementation based on lower Total cost of ownership and higher performance.
Pursuant to the Scheme of Arrangement (the Scheme) entered into by the Company with Dynacons Technologies Limited (DTL), the Marketing and Distribution Business and Manufacturing Business of the Company was transferred to DTL with effect from 1st April, 2009, the Appointed Date.
MANAGEMENT ANALYSIS AND
DISCUSSIONS
COMPANY PERFORMANCE
During the year, the Company earned total revenues of Rs. 521.974 millions compared with Rs. 423.352 millions during the previous year, reflecting a growth of 23% over the previous year. The profit before tax stood at Rs. 14.468 millions as compared to Rs. 11.412 millions in the previous year, a growth of 27% over the previous year. The Company has made a provision of tax totaling to Rs. 4.156 millions and the profit after tax stood at Rs. 10.312 millions for the current year.
The Company has built up on the momentum achieved in the previous year and has delivered a robust performance. The business transformation initiatives taken in the last few years have yielded good results. The operating profit (earnings before interest, tax and depreciation) increased by 12% to Rs 36.475 millions from Rs 32.652 millions in the previous year.
The Company continued to focus in the areas aligned with the overall vision of being a leading IT Infrastructure Solutions Provider. Key Activities that received a thrust during the previous year were turnkey system integration projects and services business.
REVIEW OF OPERATIONS
The Indian IT industry is continuing to grow despite a continuing challenging environment in the global markets. The Indian IT services market also continues to grow in spite of inflationary pressures. The exports have estimated to have increased by 16%, while domestic revenue is estimated to have increased by about 9%. The technology spending in India is expected to grow significantly higher as compared to other countries. Investment in IT is increasingly being seen by the customers as important element of growth strategies and also a fundamental enabler of cost reduction and cost optimization. Overall transformation in the global economy has created increasingly competitive markets. A high competition drives the companies to transform the manner in which they operate to attain optimum output.
Businesses today face a considerable challenge to effectively optimize their IT infrastructure and related operations and deliver ever improving service levels to meet and exceed the expectations of their business-users without compromising on quality and security. Going forward, flexibility, agility, global mind set, process and customer centricity and a high-performance work culture will be vital. In order to beat the competitive edge, companies are resorting to use Information Technology as a tool to leverage costs.
Dynacons has a team of specialists with experience in leveraging technology to help improve efficiency and security. The Company provides dynamic technology solutions and has the capability to address the increased complexity, cost and risk associated with these technology platforms. The Company's System Integration capability, experience, quality processes, proven track record of selling and servicing high-end IT products and multi-platform technical knowhow have helped it benefit from the enhanced traction in the market place.
Dynacons provides comprehensive, end-to-end technology-based solutions which enables the Company to extend their network of relationships, improve interaction with key decision makers within each client, increase the points of sale for new clients and diversify their service-mix. This integrated approach helps the Company take advantage of growth opportunities available by becoming a vendor of choice for customers.
During the year , the Company entered into several new strategic partnership with principal Companies like IBM Global Technology Services, Vmware, Netmagic, Godrej, Aruba, etc. The Company also added Security and Surveillance as a service to its existing bouquet of services. The Company undertook some major projects with government organizations in this area. The Company has also added to its current service locations, which has helped to reach its customers in the most intrinsic part of India where generally other vendors do not have a reach. The continued focus on the BFSI and the Government verticals has yielded spectacular results. The Company has added several key customers in these segments towards managing their IT Infrastructure and Networking for their offices and branches.
During the previous year the Company has been successful in the acquisition of global clients. The Company undertakes set-up of IT Infrastructure for the offices of these global customers in India. The Company has undertaken several solution deployments such as Hotel Leela, Chennai wherein they provided the client with servers, desktop, laptops, surveillance systems, Wi-Fi - all integrated under a single domain. The Company also provided effective security solution for Sada Jail, Goa. The gamut of solutions deployed included comprehensive Security Solution which includes video surveillance systems, Vehicle Scanning system, Metal Detector and X-ray scanning systems. Their Video surveillance system enabled Sada jail to provide comprehensive monitoring and a heightened level of safety for inmates and workers. Company also provided System Integration services which included deployment of Servers, Storages, Fiber Cabling etc. By installation of the Video Surveillance system, Visual coverage of 3 acre area was made available to jail authorities. They could Monitor inmate activities, provide visual evidence in case of any mishaps and maintain order in common areas.
Dynacons offers remote management of IT infrastructure operations and deliver project-specific consulting, design and implementation services. Dynacons acts as the single point of accountability for service delivery and support for the end users. Their track record of delivering high quality solutions across the entire Information Technology life cycle and their strong domain expertise helps then to solidify these relationships and gain increased business from their existing clients. There is a continued focus on Infrastructure Services which enabled the Company get into deeper engagement with existing customers and win large domestic deals in facility management, nationwide systems rollout and helpdesk services.
During the year , the several initiatives were taken for increasing the reach and market presence of the Company and leveraging on their partnerships with global IT majors to increase the spectrum of offerings for customers. The Company also took up Branding exercise and underwent identity change and is now with a fresher and a younger look. Taking a comprehensive view of business processes, applications, infrastructure, IT processes and tools, they helped their customers transform their IT Infrastructure to optimize their investments and achieve maximum return on investments. The role of technology has evolved from supporting corporations to transforming them.
Remote Infrastructure Management (RIM) is a mission-critical service requiring sophisticated tools and reflects high customer confidence and relationships. The Company has successfully demonstrated its RIM service capability and is moving towards becoming a fully integrated service provider. Dynacons' multi technology, multi product offering to customers ensures that they have the convenience and benefit of sourcing their IT products and solutions from a single source. They deliver value to their customers through a comprehensive portfolio of services and solutions that meets the entire lifecycle needs of a business. Several initiatives have been launched to identify new growth areas and simultaneously restructure existing growth engines. This has helped the Company to enrich its Company profile and build value for customers. The process of improving profitability and productivity has taken the required shape leading to better Leadership Development, Corporate Governance, Risk Management and Human Resources.
While the global macroeconomic scenario remains uncertain, the industry is expected to follow growth trajectory in FY 2012-13, driven by the need of the customers to be more competitive in their efforts to recover from global slowdown, and the IT Industry's readiness to provide innovative solutions and new business models.
Going forward, the Company is planning to add virtualization, cloud computing, Intelligent Building Management System and Enterprise Solution Division to their current bouquet of services and solution. For the wholesome internal as well as external growth of the Company, they are introducing ITIL standards for their operations. They may increase their reach to Tier II cities of India and internationally they are reaching out to Far East and EMEA countries.
OUTLOOK
The changes in the economy as well as IT technology changes are presenting several opportunities to the Company. The economic growth in the country has led to an increase in IT spends on infrastructure and services. In India, the higher growth is expected to come from the 2nd and 3rd tier towns and cities. The Company's pan India presence can be leveraged to capitalize on this growth.
Convergence of mobility and web and the implementation of cloud platforms has increased the focus on data security. Information security and business intelligence are fast emerging as the new growth areas. Cloud Computing and virtualization are changing the dynamics for providing solutions and services. The technology provides flexibility, convenience as well as reliability along with cost optimization. The Company is adapting this technology for its own use as well as for its offerings.
They believe that with their diverse portfolio of solutions and services, domain expertise and increasing value-add to customers, they are best suited to be a strategic partner to their customers. They have built a strong foundation and given the increasing reliance on IT, the outlook for the future is robust.
CONTINGENT LIABILITIES (31.03.2012)
a) Claims against the Company not acknowledged as debts: NIL
b) Guarantees given by the company's bankers Rs.25.204 Millions
(Previous year Rs.21.982 Millions)
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
90215775 |
13/01/2003 |
19,180,000.00 |
DEAN BANK |
Vile Parle, Mumbai, Maharashtra, India |
- |
|
2 |
90215768 |
12/08/2002 |
16,300,000.00 |
DEAN BANK |
Andheri (West) Branch, Mumbai, Maharashtra, India |
- |
|
3 |
80008670 |
15/05/2012 * |
127,100,000.00 |
DENA BANK |
Deepavali, S.V. Road, Andheri (West), Mumbai, Maharashtra - 400058, India |
B41301235 |
|
4 |
90215714 |
11/07/2001 * |
6,500,000.00 |
DEAN BANK |
Vile Parle, Mumbai, Maharashtra, India |
- |
|
5 |
90215509 |
10/10/1997 * |
750,000.00 |
DEAN BANK |
Vile Parle, Mumbai, Maharashtra, India |
- |
* Date of charge modification
FIXED ASSETS:
Tangible
· Premises Computer
· Computers
· Office Equipments
· Furniture and Fixtures
· Motor Car
Intangible
· Software Development Expenses
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 records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling shareholders,
director, officer or employee of the company is a government official or a
family member or close business associate of a Government official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 65.87 |
|
|
1 |
Rs. 102.51 |
|
Euro |
1 |
Rs. 87.06 |
INFORMATION DETAILS
|
Information Gathered
by : |
PLV |
|
|
|
|
Report Prepared
by : |
DPH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
4 |
|
--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 |
|
44 |
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.