MIRA
INFORM REPORT
|
Report Date : |
05.08.2014 |
IDENTIFICATION DETAILS
|
Name : |
HELIOS AND MATHESON INFORMATION TECHNOLOGY LIMITED |
|
|
|
|
Formerly Known
As : |
EXPRESS FINANCIAL EXCHANGE LIMITED |
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|
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Registered
Office : |
Unit No. 02-01, II Floor, Block 1, Phase1, Ascendas- Mahindra IT Park,
Mahindra City, SEZ, Chennai-603002, Tamilnadu |
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Country : |
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Financials (as
on) : |
30.09.2013 |
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Date of
Incorporation : |
08.03.1991 |
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Com. Reg. No.: |
18-020443 |
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Capital
Investment / Paid-up Capital : |
Rs.239.123 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L72291TN1991PLC020443 |
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|
|
|
Legal Form : |
A Public Limited Liability company. The company’s Shares are Listed on
the Stock Exchange. |
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|
|
|
Line of Business
: |
Subject is engaged in providing wide range of information technology
and consultancy services including software solutions and services. |
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|
|
|
No. of Employees
: |
Information declined by the management |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (49) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 13000000 |
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|
|
|
Status : |
Satisfactory |
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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 satisfactory track. Trade
relations are 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.
ECGC Country Risk Classification List – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
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
N E W S
As per the latest IMF study, the total weigh of emerging markets in the GDP
of the world on a purchasing power parity basis has seen a sizeable shift. It
highlights how as against 51 % in 2005, the emerging economies now account for
close to 56 % of the global purchasing power GDP as per the latest survey. And
with the emerging economies growing at a faster rate than their developed
counterparts, there are every possibility that the their share goes up further
in the coming years. China may surpass the US over the next few years.
Politics and economics are very intricately connected. They tend to
influence each other in ways that could be very complex and far-reaching. The
prospects of the India’s economy have been seriously compromised due to
political corruption. High inflation, poor standard of living are to a great
extent a result of rampant corruption in the country. China on the other hand,
seems to be facing diametrically opposite challenge. American hedge fund
manager Jim Chanos has been keenly following the political and economic
development in the dragon economy and has figured out something that is quite
worrying. He is of the view that the Chinese economy could be heading toward
trouble on account of new Chinese President Xi Jingping’s very aggressive
anti-corruption drive. Chanos believes tat many things such as apartment sales,
luxury products, etc. were largely bought with dirty money. And it is now
beginning to impact consumption. This may indeed be bad news for an economy
that is struggling to transition from an investment-driven export-oriented
economy to a domestic consumption-driven economy.
A study published by Firstpost has revealed that asset classes like real
estate and equities were the biggest beneficiaries of the liberalization
policies. A firm called Ciane Analytics studied returns from assets
including equities, gold, fixed deposits, G-Secs and real estate since 1991.
Real estate outperformed every other asset classes during the 23-year period
with an annualized return of 20 % ! Equities came in second with annualized
return of 15.5 % ! However, while these returns may seem mouthwatering, the
fact is that the return from equities adjusted for inflation came down to just
7.1 %.
Some brief news are as under
. R-Power to buy Jaypee’s hydro assets
. Investors await justice in NSEL case
. India seeks MFN status from Pakistan ahead of meeting
. Ukrain’s clashes with rebels hinder MH17 crash investigation
. India exploring merger of state-owned hydro PSUs
..Higher costs weigh down profit growth to slowest in 9 quarters
..Wal-Mart to expand wholesale business in India
. GMR group moves to strengthen balance sheet
. Central Bank to sell 4 % stake to Life Insurance Corporation
. Tata Chemicals plans to raise up to Rs 10000 mn.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Long term rating: BBB+ |
|
Rating Explanation |
Moderate degree of safety and moderate credit risk. |
|
Date |
03.07.2013 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short term rating: A2 |
|
Rating Explanation |
Strong degree of safety and higher credit risk. |
|
Date |
03.07.2013 |
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
31-03-2014.
INFORMATION DECLINED BY
|
Name : |
Mr. Mouli |
|
Designation : |
Accounts Executive |
|
Contact No.: |
91-44-43910000 |
|
Date : |
04.08.2014 |
LOCATIONS
|
Registered Office : |
Unit No. # 02-01, II Floor, Block 1, Phase1, Ascendas-Mahindra IT
Park, Mahindra City, SEZ, Chennai-603002, Tamilnadu, India |
|
Tel. No.: |
91-44-43910000/43910033/47490163 |
|
Fax No.: |
91-44-43910099 |
|
E-Mail : |
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|
Website : |
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|
Corporate and
Group Head Quarters: |
4th Floor, Crest, Phase II, CSIR Road, Taramani, Chennai-600 113, Tamilnadu, India |
|
Tel. No.: |
91-44-43910000 |
|
Fax No.: |
91-44-43910099 |
|
E-Mail : |
DIRECTORS
As on 30.09.2013
|
Name : |
Mr. Chandra Ramesh |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Diwakar Sai Yerra |
|
Designation : |
Executive Director |
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|
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|
Name : |
Mr. Muralikrishna G |
|
Designation : |
Managing Director |
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|
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|
Name : |
Mr. Patil S K |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Sistla S R |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Suresh Kumar R |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Mouli |
|
Designation : |
Accounts Executive |
|
|
|
|
Name : |
Mr. Kulambur Meenakshisundaram Kumar |
|
Designation : |
Secretary |
|
Address : |
New No.4, Old No. 80, 53 Road Street, Ashok Nagar, Chennai – 600083,
Tamilnadu, India |
|
Date of Birth/Age : |
28.10.1958 |
|
Date of Appointment : |
01.06.1999 |
|
|
|
|
Leadership team : |
Mr. Chandramoulieswaran S - Finance and Accounts Divya R - Us Operations Mr. Elango B - Global Delivery Mr. Ganesan C S - Human Resources and Shared Services Mr. Kumar K M - Compliance and Legal Madhuri M - Knowledge Services Mr. Muralikrishna G - Chief Executive Mr. Pat Krishnan - Technology Solutions Mr. Ravindran N S - Architecture and Processes Mr. Suparna N R - India Operations |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2014
|
Names
of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
12155680 |
46.02 |
|
|
12155680 |
46.02 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
12155680 |
46.02 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
40756 |
0.15 |
|
|
560018 |
2.12 |
|
|
1703 |
0.01 |
|
|
602477 |
2.28 |
|
|
|
|
|
|
2184153 |
8.27 |
|
|
|
|
|
|
7505907 |
28.42 |
|
|
3279835 |
12.42 |
|
|
684277 |
2.59 |
|
|
684076 |
2.59 |
|
|
201 |
0.00 |
|
|
13654172 |
51.70 |
|
Total Public shareholding (B) |
14256649 |
53.98 |
|
Total (A)+(B) |
26412329 |
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) |
26412329 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in providing wide range of information
technology and consultancy services including software solutions and
services. |
GENERAL INFORMATION
|
No. of Employees : |
Information declined by the management |
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Bankers : |
· State Bank of Travancore, Chennai Main Branch, United India Building, Espla nade, Chennai - 600108, Tamil Nadu, India ·
Corporation Bank, George Town, Chennai -
600001, Tamil Nadu, India |
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Facilities : |
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|
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Banking
Relations : |
-- |
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|
|
|
Auditors : |
|
|
Name : |
Venkatesh and Company Chartered Accountant |
|
Address : |
Sri Ranga,151, Mambalam High Road, Chennai - 600 017.,
Tamilnadu, India |
|
|
|
|
Subsidiaries : |
· Helios and Matheson Analytics · Maruthi Consulting Inc, Usa · Helios and Matheson Inc, Usa · Helios and Matheson (Singapore) Pte Limited · The Laxmi Group Inc, Usa · Helios and Matheson It (Bangalore) Limited, Bangalore ·
Jayamaruthi Software Systems Private Limited |
CAPITAL STRUCTURE
As on 30.09.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
40000000 |
Equity Shares |
Rs.10/- each |
Rs.400.000 Millions |
|
10000000 |
Preference Shares |
Rs.10/- each |
Rs. 100.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs. 500.000
Millions |
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
23916429 |
Equity Shares |
Rs.10/- each |
Rs. 239.164 Millions |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
23912329 |
Equity Shares |
Rs.10/- each |
Rs. 239.123
Millions |
|
|
|
|
|
|
|
|
|
|
NOTE:
|
a) Reconciliation of number of equity shares outstanding at the
beginning and at the end of the reporting period |
September 30, 2013 |
|
equity shares |
number |
|
opening balance |
2,39,12,329 |
|
change during the reporting period (preferential allotment of shares to promoters) |
25,00,000 |
|
closing balance |
2,64,12,329 |
(b) shares in the company held by each shareholder holding more than 5% shares
|
name of the shareholder |
No of shares held September 30, 2013 |
% held |
|
Padmaja R |
44,20,016 |
16.73 |
|
Annapurna G |
4,23,604 |
16.75 |
|
Ramachandiran V |
16,56,060 |
06.27 |
|
Muralikrishna G |
16,56,060 |
06.27 |
|
|
121,55,680 |
46.02 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
30.09.2013 |
30.09.2012 |
30.09.2011 |
|
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
264.123 |
239.123 |
239.123 |
|
(b) Reserves & Surplus |
2353.303 |
2061.829 |
1901.533 |
|
(c) Money received against
share warrants |
0.000 |
18.275 |
0.000 |
|
|
|
|
|
|
(2) Share Application money
pending allotment |
0.000 |
0.000 |
0.000 |
|
Advance received towards
subscription of |
630.414 |
630.414 |
630.414 |
|
Total
Shareholders’ Funds (1) + (2) |
3247.840 |
2949.641 |
2771.070 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
1318.589 |
1398.733 |
1663.275 |
|
(b) Deferred tax liabilities
(Net) |
218.620 |
200.151 |
188.896 |
|
(c) Other long term
liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term provisions |
2.849 |
2.364 |
1.889 |
|
Total
Non-current Liabilities (3) |
1540.058 |
1601.248 |
1854.060 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
953.405 |
452.528 |
398.526 |
|
(b) Trade payables |
0.000 |
0.000 |
0.000 |
|
(c) Other current liabilities |
388.507 |
443.563 |
213.997 |
|
(d) Short-term provisions |
359.002 |
149.444 |
53.850 |
|
Total
Current Liabilities (4) |
1700.914 |
1045.535 |
666.373 |
|
|
|
|
|
|
TOTAL |
6488.812 |
5596.424 |
5291.503 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
1531.948 |
1561.770 |
1477.606 |
|
(ii) Intangible Assets |
148.321 |
142.004 |
155.626 |
|
(iii) Capital work-in-progress |
156.946 |
139.241 |
244.569 |
|
(iv) Intangible assets under
development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
824.308 |
815.208 |
815.208 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
650.250 |
650.250 |
650.250 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total
Non-Current Assets |
3311.773 |
3308.473 |
3343.259 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
0.000 |
0.000 |
0.000 |
|
(c) Trade receivables |
1279.831 |
973.821 |
807.861 |
|
(d) Cash and cash equivalents |
464.043 |
369.549 |
444.689 |
|
(e) Short-term loans and
advances |
1012.181 |
633.166 |
494.229 |
|
(f) Other current assets |
420.984 |
311.415 |
201.465 |
|
Total
Current Assets |
3177.039 |
2287.951 |
1948.244 |
|
|
|
|
|
|
TOTAL |
6488.812 |
5596.424 |
5291.503 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
30.09.2013 |
30.09.2012 |
30.09.2011 |
|
|
SALES |
|
|
|
|
|
Income |
4430.642 |
3063.458 |
2555.371 |
|
|
Other Income |
58.864 |
20.461 |
34.763 |
|
|
TOTAL
(A) |
4489.506 |
3083.919 |
2590.134 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Employees benefits expense |
2197.079 |
1424.508 |
1143.529 |
|
|
Operation and Other expenses |
1116.202 |
900.749 |
820.694 |
|
|
TOTAL
(B) |
3313.281 |
2325.257 |
1964.223 |
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (C) |
1176.225 |
758.662 |
625.911 |
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
271.433 |
183.828 |
112.328 |
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
904.792 |
574.834 |
513.583 |
|
|
|
|
|
|
|
Less/
Add |
DEPRECIATION/
AMORTISATION (F) |
349.588 |
297.943 |
285.032 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX (E-F) (G) |
555.204 |
276.891 |
228.551 |
|
|
|
|
|
|
|
Less |
TAX
(I) |
158.344 |
66.571 |
56.254 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX (G-I)
(J) |
396.860 |
210.320 |
172.297 |
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
231.706 |
221.411 |
341.062 |
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
dividend paid |
0.000 |
0.000 |
0.000 |
|
|
proposed dividend |
132.062 |
43.042 |
35.868 |
|
|
dividend distribution tax |
21.424 |
6.983 |
6.080 |
|
|
general reserve |
150.000 |
150.000 |
250.000 |
|
|
|
|
|
|
|
|
Balance
Carried to the B/S |
325.080 |
231.706 |
221.411 |
|
|
|
|
|
|
|
|
Earnings
/ (Loss) Per Share (Rs.) |
15.03 |
8.80 |
7.21 |
KEY RATIOS
|
PARTICULARS |
|
30.09.2013 |
30.09.2012 |
30.09.2011 |
|
PAT / Total Income |
(%) |
8.84 |
6.82 |
6.65 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
12.53 |
9.04 |
8.94 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
10.08 |
5.96 |
5.40 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.17 |
0.09 |
0.08 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.70 |
0.63 |
0.74 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.87 |
2.19 |
2.92 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
30.09.2011 |
30.09.2012 |
30.09.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
239.123 |
239.123 |
264.123 |
|
Reserves & Surplus |
1901.533 |
2061.829 |
2353.303 |
|
Money received against share warrants |
0.000 |
18.275 |
0.000 |
|
Advance received towards subscription of redeemable
preference shares |
630.414 |
630.414 |
630.414 |
|
redeemable
preference shares |
2771.070 |
2949.641 |
3247.840 |
|
|
|
|
|
|
long-term borrowings |
1663.275 |
1398.733 |
1318.589 |
|
Short term borrowings |
398.526 |
452.528 |
953.405 |
|
Total
borrowings |
2061.801 |
1851.261 |
2271.994 |
|
Debt/Equity
ratio |
0.744 |
0.628 |
0.700 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
30.09.2011 |
30.09.2012 |
30.09.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
2555.371 |
3063.458 |
4430.642 |
|
|
|
19.883 |
44.629 |
NET PROFIT MARGIN
|
Net
Profit Margin |
30.09.2011 |
30.09.2012 |
30.09.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
2555.371 |
3063.458 |
4430.642 |
|
Profit |
172.297 |
210.320 |
396.860 |
|
|
6.74% |
6.87% |
8.96% |
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 |
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 |
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 |
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 |
CHARGES
|
ENTITY |
PERSON |
COMPETENT AUTHORITY |
REGULATORY
CHARGES |
REGULATORY
ACTION(S) / DATE OF ORDER |
FURTHER
DEVELOPMENTS |
|
HELIOS AND MATHESON INFORMATION TECHNOLOGY LIMITED. |
|
SEBI |
DID NOT MAKE COMPLETE DISCLOSURE TO STOCK EXCHANGES IN
RELATION TO ACQUISITION OF THREE ENTITIES OF VMOKSHA TECHNOLOGIES PVT.LTD. |
IMPOSED PENALTY RS.50,00,000 |
SAT: SAT VIDE ITS ORDER DATED 16/11/2011 SET ASIDE SECOND CHARGE AND PENALTY OF RS.25 LACS. OTHER FINDINGS ON FIRST CHARGE RELATING TO NON-DISCLOSURE OF PRICE SENSITIVE INFORMATION IS UPHELD.CONSEQUENTLY PENALTY AMOUNT REDUCED TO RS.15 LAC FROM RS.25 LAC WITH NO ORDER AS TO COSTS. |
RESULTS OF OPERATION
Income for the year ended September 30 2013 was Rs.4489.500 Millions crore as compared to Rs.3083.900 Millions for the previous year. Net profit after tax was Rs.396.800 Millions vis-à-vis Rs.210.300 Millions for FY 2011-12. Earnings per share was Rs.15.03 compared to Rs.8.80 for the previous year.
MANAGEMENT DISCUSSION
AND ANALYSIS
OVERVIEW
The financial statements have been prepared in compliance with the requirements of the companies act,1956, guidelines issued by the securities and exchange board of india (sebi) and generally accepted accounting principles (gaap) India. Their management accepts responsibility for the integrity and objectivity of these financial statements, as well as for various estimates and judgments used therein. The estimates and judgment relating to the financial statements have been made on a prudent and reasonable basis, so 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, profits and cashflows for the year.
INDUSTRY OVERVIEW AND
OUTLOOK
Improving consumer confidence and structural policy decisions in the developed markets are providing the required momentum to kickstart the economy on to the path of recovery. in the emerging markets, strong consumer spending and upbeat investment sentiment continue to drive economic growth.
Across markets, technology and innovation are being seen as growth drivers. Investment in innovation has emerged as a differentiator in the market place. Investment in technology has been enabling companies to connect with customers and influence their purchase decisions on a real-time basis as a result, spending on technology and related services grew at a rate faster than the gdp growth. The worldwide spending on technology and related services in 2012 was USD 1.9 trillion, a growth of 4.8% over 2011. Spend on IT, BPO and software products, continued to have the majority share of 58% of total IT spend, standing at USD 1 trillion.
India's total IT industry's (including hardware) share in the global market stands at 7 per cent; in the IT segment the share is 4 per cent while in the ITES space the share is 2 per cent. India's IT and BPO sector exports are expected to grow by 12-14 per cent in fy14 to touch USD 84 billion - USD 87 billion, according to nasscom.
India's IT-business process outsourcing (BPO) industry revenue is expected to cross USD 225 billion mark by 2020, according to a confederation of indian industry (cii) report, titled 'the smac code-embracing new technologies for future business'.
While banking, financial services and insurance (BFSI) remains the largest vertical in terms of total share in IT spending, emerging verticals such as healthcare, retail, government and utilities are the drivers of incremental growth.
The large North American IT market continues to expand at a faster pace (5%) than the economy. investments by american corporations in innovation and digital technologies is driving the growth in technology spend. IT spend in emerging markets like Asia-pacific continues to grow at a faster pace than in mature geographies on account of investments by corporations to bring their IT infrastructure on par with global standards.
Despite the changing and volatile economic environment, the global market offers substantial opportunities and they are fully geared to navigate through the changing technology demands and customer expectations.
CORPORATE
INFORMATION;
Subject is a public Limited company registered in India and incorporated under the provisions of the companies act, 1956. its shares are listed on NSE and BSE in India and its overseas subsidiary, Helios and Matheson analytics inc, USA on Nasdaq.
Subject along with its subsidiaries namely Helios and Matheson analytics Inc, Usa, Marathi consulting Inc, USA, the laxmi group Inc, USA, Helios Matheson Inc, USA, Helios and Matheson (Singapore) Pte Limited Helios and Matheson IT (Bangalore) Limited, Bangalore and jayamaruthi software services (Private) Limited, Chennai provide a wide range of information technology and consultancy services including software solutions and services. The company's full services portfolio consists of application development and maintenance, system integration, independent verification, managed services. The company caters to the BFSI (banking financial services and insurance), health care and technology sectors in India and across the globe.
UNSECURED LOAN
|
PARTICULARS |
30.09.2013 (Rs.
in Millions) |
30.09.2012 (Rs.
In Millions) |
|
Long-term
Borrowings |
|
|
|
Other loans and overdrafts There is no default in repayment of loan and interest as
on the balance sheet date. |
904.422 |
701.052 |
|
Total |
904.422 |
701.052 |
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE
CREATION/MODIFICATION |
CHARGE AMOUNT
SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST
NUMBER (SRN) |
|
1 |
10502555 |
09/06/2014 |
350,000,000.00 |
STATE BANK OF TRAVANCORE |
CHENNAI MAIN BRANCH, UNITED INDIA BUILDING, ESPLA NADE, CHENNAI, TAMIL NADU - 600108, INDIA |
C06397186 |
|
2 |
10421381 |
05/06/2014 * |
330,000,000.00 |
CORPORATION BANK |
GEORGE TOWN, CHENNAI, TAMIL NADU - 600001, INDIA |
C07427560 |
|
3 |
10392328 |
14/08/2013 * |
464,000,000.00 |
STANDARD CHARTERED BANK |
19, RAJAJI SALAI, CHENNAI, TAMIL NADU - 600001, INDIA |
B85921203 |
|
4 |
10357818 |
28/05/2012 |
120,000,000.00 |
ICICI BANK LIMITED |
LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, GUJ ARAT - 390015, INDIA |
B40489635 |
|
5 |
10294479 |
06/07/2011 |
350,000,000.00 |
ICICI BANK LIMITED |
LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA |
B15940521 |
|
6 |
10261515 |
09/10/2013 * |
804,200,000.00 |
AXIS BANK LIMITED |
CORPORTE BANKING BRANCH, GROUND FLOOR, KARUMUTHU NILAYAM, NO.192, ANNA SALAI, CHENNAI, TAMIL NADU - 600002, INDIA |
B88155213 |
|
7 |
10093929 |
15/04/2008 * |
250,000,000.00 |
3I INFOTECH TRUSTEESHIP SERVICES LIMITED |
3RD TO 6TH FLOOR, INTERNATIONAL INFOTECH PARK, TOWER NO.5, VASHI RAILWAY STATION COMPLEX, VASHI, NAVI MUMBAI, MAHARASHTRA - 400703, INDIA |
A36949543 |
|
8 |
90307917 |
07/03/2012 * |
700,000,000.00 |
BANK OF INDIA |
CHENNAI MID
CORPORATE BRANCH, 4TH FLOOR, "TARAPOR E TOWER" 826, ANNA SALAI,
CHENNAI, TAMIL NADU - 6 |
B36413433 |
|
9 |
90306595 |
22/02/2002 * |
5,000,000.00 |
UTI BANK LTD |
82 DR.
RADHAKRISHANAN, SALAI; MYLAPORE, CHENNAI, |
- |
* Date of charge modification
CONTINGENT LIABILITY
(As on 30.09.2013)
a) the income tax demand of Rs.19.499 Millions on account of section 10a disallowances for the a.y.2006-2007 is contested before the commissioner of appeals and the company has paid `.25,00,000/- against the demand.
b) the income tax demand of Rs.159.466 Millions (revised) on account of section 10 a of the income tax act for the assessment year 2008-09 is contested before the commissioner of appeals. The company has already paid Rs.36.700 Millions towards the demand.
c) the income tax demand of Rs.4.711 Millionson account of section 10 A of the income tax act for the assessment year 2009-10 is contested before the commissioner of appeals and the company has paid Rs.11.500 Millions against the demand.
d) In respect assessment year 2010-11, the company has been served with a demand of Rs.7.484 Millions against which the company has gone on appeal to the commissioner of income tax (appeals) and the company has paid Rs.3.000 Millions against the demand and contested.
e) The service tax demand of Rs.0.394 Million on sponsorship services as the recipient of services is appealed before the commissioner of central excise (appeals) and the appeal is yet to be taken up and the company has paid under protest of Rs.0.190 Million towards demand.
f) The company has given corporate guarantee
STATEMENT OF STANDALONE UNAUDITED RESULTS FOR THE QUARTER AND SIX MONTHS
ENDED 30.03.2014
(Rs In Millions)
|
Sr. No. |
Particular |
3 Months ended 31.03.2014 |
Preceding 3 Months ended 31.12.2013 |
Year to date figures for current period ended 31.03.2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
Income from
Operations |
|
|
|
|
|
a) Net Sales / Income from Operations (Net of Excise Duty) |
1498.000 |
1381.900 |
2879.900 |
|
|
b) Other Operating Income |
0.000 |
0.000 |
0.000 |
|
|
Total Income from
Operations (Net) |
1498.000 |
1381.900 |
2879.900 |
|
2 |
Expenses |
|
|
|
|
a) Cost of materials consumed |
0.000 |
0.000 |
0.000 |
|
|
|
b) Purchase of Stock in trade |
0.000 |
0.000 |
0.000 |
|
|
c) Changes in Inventories of Finished Goods, Work-in-progress and Stock-in-Trade |
0.000 |
0.000 |
0.000 |
|
|
d) Employee Benefits Expense |
986.700 |
911.400 |
1898.100 |
|
|
e) Depreciation and Amortisation Expense |
113.100 |
104.200 |
217.300 |
|
|
f) Other Expenses |
120.100 |
111.000 |
231.100 |
|
|
Total Expenses |
1219.900 |
1126.600 |
2346.500 |
|
3 |
Profit / (Loss)
from Operations before Other Income, Finance Cost and Exceptional Items (1-2) |
278.100 |
255.300 |
533.400 |
|
4 |
Other Income |
9.800 |
10.400 |
20.200 |
|
5 |
Profit / (Loss)
before Finance Cost and Exceptional Items (3+4) |
287.900 |
265.700 |
553.600 |
|
6 |
Finance Costs |
79.100 |
76.900 |
156.000 |
|
7 |
Profit / (Loss)
after Finance cost but before Exceptional Items (5-6) |
208.800 |
188.800 |
397.600 |
|
8 |
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
9 |
Profit / (Loss) before
Tax (7+8) |
208.800 |
188.800 |
397.600 |
|
10 |
Tax Expense |
73.900 |
64.400 |
138.300 |
|
11 |
Net Profit / (Loss)
after Tax (9-10) |
134.900 |
124.400 |
259.300 |
|
12 |
Extraordinary Items (net of tax expense) |
0.000 |
0.000 |
0.000 |
|
13 |
Net Profit / (Loss)
for the Period (11-12) |
134.900 |
124.400 |
259.300 |
|
14 |
Paid Up Equity Share Capital (Face Value of the share – Rs. 10/- each) |
264.100 |
264.100 |
264.100 |
|
15 |
Reserves excluding Revaluation Reserve as per balance sheet of previous accounting year |
--- |
--- |
-- |
|
16 |
Earnings Per Share (before Extraordinary Items) (in Rs.10 each) |
|
|
|
|
|
a) Basic |
5.11 |
4.71 |
9.82 |
|
|
b) Diluted |
5.11 |
4.71 |
9.82 |
|
Sr. No. |
Particular |
3 Months ended 31.03.2014 |
Preceding 3 Months ended 31.12.2013 |
Year to date figures for current period ended 31.03.2014 |
|
|
|
|
|
|
|
A |
PARTICULARS OF
SHAREHOLDING |
|
|
|
|
1 |
Public Shareholding |
|
|
|
|
|
- Number of Shares |
14256649 |
14256649 |
14256649 |
|
|
- Percentage of Shareholding |
59.62 |
53.98 |
59.62 |
|
2 |
Promoters and
Promoter Group Shareholding |
|
|
|
|
|
a) Pledged /
Encumbered |
|
|
|
|
|
- Number of Shares |
4350000 |
3850000 |
4350000 |
|
|
- Percentage of Shares (as a % of total shareholding of promoter and promoter group) |
35.79 |
31.67 |
35.79 |
|
|
- Percentage of Shares (as a % of total share Capital of the Company) |
16.47 |
14.58 |
16.47 |
|
|
b) Non-Encumbered |
|
|
|
|
|
- Number of Shares |
7805680 |
8305680 |
7805680 |
|
|
- Percentage of Shares (as a % of total shareholding of promoter and promoter group) |
64.21 |
68.33 |
64.21 |
|
|
- Percentage of Shares (as a % of total share Capital of the Company) |
29.55 |
31.45 |
29.55 |
INVESTOR COMPLAINTS
|
PARTICULARS |
3 Months Ended 31.03.2014 |
|
Pending at
the beginning of the quarter |
0 |
|
Received
during the quarter |
20 |
|
disposed off
during the quarter |
20 |
|
Remaining unresolved
at the end of the quarter |
0 |
NOTE:
The above financial figures represent stand alone results.
EPS as at March 31, 2014 is after considering the provision for deferred tax.
Income includes revenue from operations.
Expenditure includes staff costs, selling and administrative costs and
development expenses
The unaudited results for the quarter and 6 months ended March 31, 2014 were
taken on record by the Board of Directors at their meeting held on May 15,
2014.
The company recognizes software services as its primary segment since its operations predominantly relate to service offerings spanning the entire software services cycle, from application development and integration to application life cycle management. In view of this, software services revenues comprise the primary basis of segmental information.
STANDALONE BALANCE
SHEET AS ON 31ST MARCH, 2014
|
SOURCES
OF FUNDS |
31.03.2014 |
31.12.2013 |
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
(1)Shareholders' Funds |
|
|
|
(a) Share Capital |
264.100 |
264.100 |
|
(b) Reserves & Surplus |
2612.500 |
2477.700 |
|
(c) Money received against
share warrants |
0.000 |
0.000 |
|
|
|
|
|
(2) Share Application money
pending allotment |
0.000 |
0.000 |
|
Advance received towards
subscription of |
630.400 |
630.400 |
|
Total
Shareholders’ Funds (1) + (2) |
3507.000 |
3372.200 |
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
(a) long-term borrowings |
1132.400 |
1150.700 |
|
(b) Deferred tax liabilities
(Net) |
236.100 |
226.300 |
|
(c) Other long term
liabilities |
0.000 |
0.000 |
|
(d) long-term provisions |
3.400 |
3.400 |
|
Total
Non-current Liabilities (3) |
1371.900 |
1380.400 |
|
|
|
|
|
(4) Current Liabilities |
|
|
|
(a) Short term borrowings |
1234.500 |
1151.500 |
|
(b) Trade payables |
18.100 |
6.100 |
|
(c) Other current liabilities |
337.400 |
327.500 |
|
(d) Short-term provisions |
283.400 |
415.600 |
|
Total
Current Liabilities (4) |
1873.400 |
1900.700 |
|
|
|
|
|
TOTAL |
6752.300 |
6653.300 |
|
|
|
|
|
II.
ASSETS |
|
|
|
(1) Non-current assets |
|
|
|
(a) Fixed Assets |
1837.400 |
1813.000 |
|
(b) Non-current Investments |
824.300 |
824.300 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
663.500 |
672.500 |
|
(e) Other Non-current assets |
650.300 |
650.300 |
|
Total
Non-Current Assets |
3975.500 |
3960.100 |
|
|
|
|
|
(2) Current assets |
|
|
|
(a) Current investments |
0.000 |
0.000 |
|
(b) Inventories |
0.000 |
0.000 |
|
(c) Trade receivables |
1401.700 |
1341.500 |
|
(d) Cash and cash equivalents |
460.000 |
523.500 |
|
(e) Short-term loans and
advances |
443.300 |
376.000 |
|
(f) Other current assets |
471.800 |
452.200 |
|
Total
Current Assets |
2776.800 |
2693.200 |
|
|
|
|
|
TOTAL |
6752.300 |
6653.300 |
FIXED ASSETS
Tangible Assets
· Leasehold land
· Plant and machinery
· Furniture and fixtures
· Vehicles
Intangible assets
· Software and other rights
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.61.02 |
|
|
1 |
Rs.102.69 |
|
Euro |
1 |
Rs.81.91 |
INFORMATION DETAILS
|
Information Gathered
by : |
PLK |
|
|
|
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
KVT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
49 |
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.