MIRA
INFORM REPORT
|
Report Date : |
04.02.2013 |
IDENTIFICATION DETAILS
|
Name : |
IGATE GLOBAL SOLUTIONS LIMITED IGATE COMPUTER SYSTEMS LIMITED MERGED WITH IGATE GLOBAL SOLUTIONS
LIMITED |
|
|
|
|
Formerly Known
As : |
MASCOT SYSTEMS LIMITED |
|
|
|
|
Registered
Office : |
Level II, Tower 3, Cyber City, Magarpatta City, Hadapsar, Pune –
411013, Maharashtra |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
27.12.1993 |
|
|
|
|
Com. Reg. No.: |
08-145950 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.127.600 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U85110PN1993PLC145950 |
|
|
|
|
PAN No.: [Permanent Account No.] |
AABCM4573E |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company. |
|
|
|
|
Line of Business
: |
The Company is
primarily engaged in providing Information Technology (IT) and IT enabled
operations offshore outsourcing solutions and services to large and medium-sized
organizations using an offshore/onsite model. |
|
|
|
|
No. of Employees
: |
25,000 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (63) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 45000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a part of IGATE Corporation Unite States. It is an
established company having a fine track record. Management has failed to file the latest financials of 2013, with the
government department. As per available financials, the management has seen a
dip in its sales turnover as well as net profitability during 2012. However,
the profit margin seems to be decent. Financial as well as liquidity position
appears to be sound and healthy. Directors are reported to be honest and
resourceful businessmen. Trade relations are fair. Business is active. Payment terms are
reported as regular and as per commitments. In view of support from its strong group company and experienced
management, the subject can be considered good 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
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.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
IrAA- (Withdrawn) |
|
Rating Explanation |
Low credit risk and high credit quality. |
|
Date |
March, 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
31-03-2012.
INFORMATION PARTED BY (General Details)
|
Name : |
Mr. Vikas |
|
Designation : |
Legal Department |
|
Contact No.: |
91-20-39842000 |
|
Date : |
05.12.2013 |
LOCATIONS
|
Registered Office : |
Level II, Tower 3, Cyber City, Magarpatta City, Hadapsar, Pune –
411013, Maharashtra, India |
|
Tel. No.: |
91-20-39842000/ 26693457 |
|
Fax No.: |
91-20-39842082 |
|
E-Mail : |
|
|
Website : |
|
|
Location : |
Owned |
|
|
|
|
Branch Office : |
Located at: · Bangalore · Chennai · Hyderabad · Mumbai · Pune Noida · Gandhinagar |
|
|
|
|
Sales Office : |
Located at: · Bengaluru · Mumbai · Noida |
DIRECTORS
(AS ON 28.09.2012)
|
Name : |
Mr. Ashok Kumar Trivedi |
|
Designation : |
Chairman cum Managing Director |
|
Address : |
50 Friends Colony East, New Delhi -
110065, India |
|
Date of Birth/Age : |
20.04.1949 |
|
Date of Appointment : |
27.12.1993 |
|
DIN No.: |
00024566 |
|
|
|
|
Name : |
Mr. Sunil Tekchand Wadhwani |
|
Designation : |
Vice Chairman |
|
Address : |
1110, Meridian Drive Nevillewood Prestopa 15142 United States |
|
Date of Birth/Age : |
21.12.1952 |
|
Date of Appointment : |
27.12.1993 |
|
DIN No.: |
00380408 |
|
|
|
|
Name : |
Mr. Phaneesh Murthy |
|
Designation : |
Director |
|
Address : |
33245 Larkway Fremont CA 094555 USA |
|
Date of Birth/Age : |
21.07.1963 |
|
Date of Appointment : |
22.08.2003 |
|
DIN No.: |
00388525 |
|
PAN No.: |
AGGPM7614A |
|
|
|
|
Name : |
Mr. Sujit Sircar |
|
Designation : |
Director |
|
Address : |
No.402, Vars Casa Rosa, 1st Main Pai Layout, Old Madras
Road, Bangalore – 560016, Karnataka, India |
|
Date of Birth/Age : |
27.04.1968 |
|
Date of Appointment : |
01.01.2010 |
|
DIN No.: |
00026417 |
|
PAN No.: |
ABVPS3124K |
KEY EXECUTIVES
|
Name : |
Mr. Vikas |
|
Designation : |
Legal Department |
|
|
|
|
Name : |
Mr. Mukund Srinath |
|
Designation : |
Secretary |
|
Address : |
8, Rashmi Lakshmi Road, 1st Cross Shantinagar, Bangalore –
560027 Karnataka, India |
|
Date of Birth/Age : |
26.11.1960 |
|
Date of Appointment : |
02.11.2000 |
|
PAN No.: |
AFSPS7009A |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 28.09.2012)
|
Names of Shareholders |
|
No. of Shares |
|
|
|
|
|
IGATE Inc., USA |
|
9600000 |
|
IGATE Corporation, USA |
|
3060000 |
|
IGATE Corporation, USA |
|
4378 |
|
Mukund Srinath |
|
20000 |
|
Sujit Sircar |
|
20000 |
|
Srinivas Rao Kandula |
|
20000 |
|
B. Chandrashekar |
|
20000 |
|
Udaya Shankar Srinivasmurthy |
|
20000 |
|
|
|
|
|
Total |
|
12764378 |
(AS ON 30.09.2012)
Equity Shares Break – up
|
Category |
|
Percentage |
|
|
|
|
|
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
|
99.22 |
|
Other |
|
0.78 |
|
|
|
|
|
Total
|
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
The Company is primarily
engaged in providing Information Technology (IT) and IT enabled operations
offshore outsourcing solutions and services to large and medium-sized
organizations using an offshore/onsite model. |
|
|
|
|
Terms : |
|
|
Selling : |
Credit |
|
|
|
|
Purchasing : |
Credit (Depend) |
GENERAL INFORMATION
|
Customers : |
Others |
|
|
|
|
No. of Employees : |
25,000 (Approximately) |
|
|
|
|
Bankers : |
· Citi Bank NA 506-507, Level 5, Prestige Meridian 2, # 30, M G Road, Bangalore – 5600001, Karnataka, India |
|
|
|
|
Facilities : |
-- |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
S. R. Batliboi and Associates Chartered Accountants |
|
Address : |
UB City, Canberra
Block, 12th and 13th Floor, No. 24, Vittal Malya Road, Bangalore – 560051,
Karnataka, India |
|
PAN No.: |
AABFS3421N |
|
|
|
|
Ultimate Holding Company : |
· IGATE Corporation, USA |
|
|
|
|
Holding Company
: |
· IGATE Inc., USA |
|
|
|
|
Subsidiary
Company : |
· Mascot Systems Gmbh, Germany ·
IGATE Infrastructure Management Services
Limited, India · IGATE Global, Solutions Mexico, S.A. de C.V, mexico |
|
|
|
|
Fellow
Subsidiary Company : |
· IGATE Technologies Inc, United states · IGATE Technologies Inc, Canada · Pan Asia Igate Solutions, Mauritius · IGATE Computer Systems Limited, India |
|
|
|
|
Enterprises
which are owned, or have significant influence of or are partners with Key management
personnel and their relatives : |
· IGATE Americans Inc, United States · IGATE Computer Systems Japan Inc, Japan · Patni Computer Systems, GmbH, Germany · Patni Computer Systems, (Suzhou) Company Limited, China · IGATE (Singapore) Pte Limited, Singapore · Patni Telicom Solutions (UK) Pte Limited, United Kingdom · CHCS Services Inc, United States · IGATE Mastech Inc, United States · IGATE Computer Systems (UK) Limited, United Kingdom · IGATE Information Services Private Limited, India |
CAPITAL STRUCTURE
(AS ON 28.09.2012)
Authorised Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
40750000 |
Equity Shares |
Rs.10/- each |
Rs.407.500 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
29433347 |
Equity Shares |
Rs.10/- each |
Rs.294.333
Millions |
|
|
|
|
|
(AS ON 31.03.2012)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
20000000 |
Equity Shares |
Rs.10/- each |
Rs.200.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
12760000 |
Equity Shares |
Rs.10/- each |
Rs.127.600
Millions |
|
|
|
|
|
FINANCIAL DATA
[All figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2012 |
31.03.2011 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
127.600 |
127.600 |
|
(b) Reserves & Surplus |
|
11171.600 |
9819.800 |
|
(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) |
|
11299.200 |
9947.400 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term borrowings |
|
24.300 |
27.000 |
|
(b) Deferred tax liabilities (Net) |
|
0.000 |
0.000 |
|
(c) Other long
term liabilities |
|
22.700 |
25.100 |
|
(d) long-term
provisions |
|
71.800 |
53.300 |
|
Total Non-current
Liabilities (3) |
|
118.800 |
105.400 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
|
2645.200 |
1337.900 |
|
(b)
Trade payables |
|
895.000 |
802.500 |
|
(c)
Other current liabilities |
|
1219.200 |
918.700 |
|
(d) Short-term
provisions |
|
374.800 |
315.100 |
|
Total Current
Liabilities (4) |
|
5134.200 |
3374.200 |
|
|
|
|
|
|
TOTAL |
|
16552.200 |
13427.000 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
|
1804.900 |
1722.600 |
|
(ii)
Intangible Assets |
|
97.600 |
95.200 |
|
(iii)
Capital work-in-progress |
|
149.400 |
338.300 |
|
(iv)
Intangible assets under development |
|
0.000 |
0.000 |
|
(b) Non-current Investments |
|
7600.200 |
326.000 |
|
(c) Deferred tax assets (net) |
|
344.400 |
118.300 |
|
(d) Long-term Loan and Advances |
|
811.000 |
854.500 |
|
(e) Other
Non-current assets |
|
0.000 |
0.000 |
|
Total Non-Current
Assets |
|
10807.500 |
3454.900 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
|
2102.600 |
1554.800 |
|
(b)
Inventories |
|
0.000 |
0.000 |
|
(c) Trade
receivables |
|
1582.300 |
1893.300 |
|
(d) Cash
and cash equivalents |
|
708.100 |
5515.500 |
|
(e)
Short-term loans and advances |
|
423.700 |
353.100 |
|
(f)
Other current assets |
|
928.000 |
655.400 |
|
Total
Current Assets |
|
5744.700 |
9972.100 |
|
|
|
|
|
|
TOTAL |
|
16552.200 |
13427.000 |
|
SOURCES OF FUNDS |
|
|
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
|
127.644 |
|
|
2] Share Application Money |
|
|
0.000 |
|
|
3] Reserves & Surplus |
|
|
7288.628 |
|
|
4] (Accumulated Losses) |
|
|
0.000 |
|
|
NETWORTH |
|
|
7416.272 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
|
24.627 |
|
|
2] Unsecured Loans |
|
|
0.000 |
|
|
TOTAL BORROWING |
|
|
24.627 |
|
|
DEFERRED TAX LIABILITIES |
|
|
20.200 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
9858.772 |
|
|
|
|
|
7461.099 |
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
|
1615.209 |
|
|
Capital work-in-progress |
|
|
91.992 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
3836.579 |
|
|
DEFERREX TAX ASSETS |
|
|
75.828 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
0.000 |
|
|
Sundry Debtors |
|
|
1184.037 |
|
|
Cash & Bank Balances |
|
|
701.162 |
|
|
Other Current Assets |
|
|
464.212 |
|
|
Loans & Advances |
|
|
1514.642 |
|
Total
Current Assets |
|
|
3864.053 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
|
|
76.773 |
|
|
Other Current Liabilities |
|
|
1074.881 |
|
|
Provisions |
|
|
870.908 |
|
Total
Current Liabilities |
|
|
2022.562 |
|
|
Net Current Assets |
|
|
1841.491 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
7461.099 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations |
11561.200 |
11845.500 |
9321.871 |
|
|
|
Other Income |
123.200 |
278.100 |
(155.172) |
|
|
|
TOTAL (A) |
11684.400 |
12123.600 |
9166.699 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Employee benefit expenses |
7067.600 |
6563.300 |
|
|
|
|
Other expenses |
2547.700 |
2631.000 |
7186.262 |
|
|
|
Provision for losses of subsidiary written back |
0.000 |
(70.800) |
|
|
|
|
TOTAL (B) |
9615.300 |
9123.500 |
7186.262 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2069.100 |
3000.100 |
1980.437 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
41.100 |
7.900 |
3.501 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2028.000 |
2992.200 |
1976.936 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
430.500 |
359.300 |
309.621 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1597.500 |
2632.900 |
1667.315 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
190.600 |
104.500 |
63.941 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1406.900 |
2528.400 |
1603.374 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
110.22 |
198.08 |
125.61 |
|
%20_%20MIRA%2004-Feb-2013_files/image001.gif){kind=small}
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
12.04
|
20.86 |
17.49 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
13.82
|
22.23 |
17.89 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
18.89
|
20.82 |
28.32 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.14
|
0.26 |
0.22 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.24
|
0.14 |
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.12
|
2.96 |
1.91 |
LOCAL AGENCY FURTHER INFORMATION
CURRENT MATURITY
OF LONG TERM BORROWINGS DETAIL: 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 |
Yes |
|
9] |
Name of person contacted |
Yes |
|
10] |
Designation of contact person |
Yes |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
----- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
Yes |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm / promoter
involved in |
----- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
No |
|
25] |
Conduct of the banking account |
----- |
|
26] |
Buyer visit details |
----- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director, if
available |
Yes |
|
33] |
Voter ID No of Proprietor/Partner/Director,
if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
UNSECURED LOANS
|
Particulars |
31.03.2012 |
31.03.2011 |
|
|
(Rs. In Millions) |
|
|
Long Term
Borrowings |
|
|
|
Long-term maturities of finance lease obligations |
24.300 |
27.000 |
|
Short Term
Borrowings |
|
|
|
Borrowing from foreign institutional agencies |
2645.200 |
1337.900 |
|
|
|
|
|
Total |
2669.500 |
1364.900 |
NOTE:
The Registered office of the company has been shifted
from, Nos.158-162(P)
&165(P)-170(P), EPIP, Phase II, White Field, Bangalore - 560 066,
Karnataka, India, to the prse4nt address w.e.f. 08.10.2012.
OPERATIONS REVIEW
Revenues for the year were Rs.11561.200 Millions, a decrease of 2.4%
over the previous year. The Profit after tax for the year was Rs.1406.900
Millions, a decrease of 44.4%.
BUSINESS
ACTIVITIES
A special
resolution for shifting of Registered Office of the Company from Bangalore
(Karnataka) to Pune (Maharashtra) subject to confirmation of the Regional
Director, South-East Region Bench, Hyderabad was passed at the Extarordinary
General Meeting of the Company held on July 16, 2012. With the above proposed
shifting of registered office of the Company Management is of the view that the
commercial and administrative activities of the Company will be better pursued
by being located in the State of Maharashtra, where an associate company namely
iGATE Computer Systems Limited registered office is located.
The Company ended
2012 with 8,086 employees, adding headcount to cater to the growth during the
year. The Company’s innovative work
culture, strong public image and employee focused practices were acknowledged
by Dataquest - CMR in their Annual Survey of IT Employers in India with
iGATE" figuring in the top 3 best employers in India.
INDEX OF CHARGES: NO CHARGES EXIST FOR COMPANY
FIXED ASSETS:
· Land
· Building
· Furniture and Fixture
·
Vehicles
·
Office Equipment
NEWS
IGATE COULD SEE MORE PEOPLE LEAVING: ASHOK VEMURI
November 26, 2013
BANGALORE:
Technology services company iGate could see more personnel leaving the
organisation, according to the company's new chief executive who recently took
charge and is bringing about organisational changes.
The company,
which has some senior-level exits in recent weeks, including that of its chief
delivery officer Sean Narayanan, could see some more exits where individual
capabilities were not aligned, chief executive Ashok Vemuri said in a media
call on Monday. "Some people found themselves out of place in the new
structure," Vemuri said about the recent exits. The new CEO said he
intends to step up recruitment significantly and also allow new leaders to rise
from within the company.
As part of the
changes, North America, which accounts for about 80% of iGate's revenues, will
move to a verticalised structure with industry vertical heads having sales,
delivery and consulting responsibilities. The industry verticals will be
organised along banking, insurance, retail & consumer and manufacturing.
Western Europe,
the other major market for the company, will continue to be geography-led but
with profit and loss responsibility, because it wasn't yet of sizable scale.
Vemuri said leaders could take more responsibility only if the organisation
structure permitted them to do so. The business heads were selected through a
rigorous process and will be provided standalone budgets and held accountable,
he added.
The company is
highly focused on becoming predictable, said Vemuri, who joined iGate from
Infosys, where co-founder Narayana Murthy sets great store by predictability.
The company also announced securing refinancing some of its earlier debt at
lower interest cost.
iGate will gain
nearly $105 million (Rs.6550.000 Millions) in interest cost savings over the
life of the debt as a result of a $360 million (Rs.22500.000 Millions) credit
facility it announced on Monday and which will be used to refinance part of its
$770-million (Rs.48000.000 Millions) debt. The savings will be ploughed back
into investments in creating new capabilities in areas like enterprise
mobility, Vemuri said.
The Nasdaq-listed
company is also in the process of building a global training facility in Pune.
Training, along with campus recruitment and hiring of experienced
professionals, will be a priority for the company in the coming quarters. Since
joining in September, Vemuri has met around 60 clients and had about six
employee townhalls. "We are on to a chapter that's distinct and
different," he said.
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.62.69 |
|
|
1 |
Rs.102.97 |
|
Euro |
1 |
Rs.84.58 |
INFORMATION DETAILS
|
Information
Gathered by : |
PDT |
|
|
|
|
Report Prepared
by : |
NIT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
63 |
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.