MIRA INFORM REPORT
|
Report Date : |
05.06.2014 |
IDENTIFICATION DETAILS
|
Name : |
ONWARD TECHNOLOGIES LIMITED |
|
|
|
|
Registered
Office : |
Sterling Centre, 2nd Floor, Dr. A.B. Road, Worli,
Mumbai-400018, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
18.07.1991 |
|
|
|
|
Com. Reg. No.: |
11-062542 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.138.359
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L28920MH1991PLC062542 |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Subject is engaged in Mechanical Engineering Design and IT Consulting.
|
|
|
|
|
No. of Employees
: |
Information denied by the management. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (48) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 1307800 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a subsidiary of “onward Network Technologies Private
Limited”. It is an established company having satisfactory track record. The rating reflects company’s healthy financial risk profile marked by
adequate liquidity position and decent profitability levels of the company. Trade relations are fair. Business is active. Payment terms are
reported to be usually correct. The company can be considered 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 – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
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
US investment bank
Goldman Sachs has upgraded its outlook on Indian markets as it expects
positive impact of the election cycle.
India’s economy may
grow 4.7 % in the current financial year, lower than the official estimate of 4.9
%, Fitch Rating said. The global rating agency expects the economy to pick up
in the next two financial years.
Global ratings
agency Standard & Poor said increasing focus by India Inc on lowering debt
is likely to improve their credit profiles.
Singapore (1.1
million Indian tourists in 2012), Thailand (one million), the United Arab
Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred
holidays hotspots for Indians. The total figure is expected to increase to 1.93
million by 2017, according to the latest Eurmonitor international report.
There is a $29.34 bn
outward foreign direct investment by domestic companies between April and
January of 2013/14 which has seen some signs of recovery according to a Care
Ratings report.
There are 264 number
of new companies being set up every day on average during 2014. Most of them
are registered in Mumbai. India had 1.38 million registered companies at the
end of January, 2014.
Twitter like
messaging service Weibo Corporation has filed to raise $ 500 million via a US
initial public offering. Alibaba, which owns a stake in Weibo is expected to
raise about $ 15 billion New York this year in the highest profile Internet IPO
since Facebook’s in 2012.
Bharti Airtel has
raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at
a coupon rate of three per cent and maturing in 2020. This is the largest ever
bond offering by an Indian company in Swiss Francs. Bharat Petroleum
Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98
% coupon rate in February.
Indian Oil
Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex
at its almost complete Paradip refinery in Odhisha in three to four years. The
company board is set to consider the setting up of a 700000 tonne per annum
polypropylene plant at an estimated cost at Rs.3150 crore.
Global chief
information officers at gathering in Bangalore in April to meet Indian startups
at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in
the making.
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 DECLINED BY
|
Name : |
Mr. Prabhat Bhagwatkar |
|
Contact No.: |
91-9881473086 |
|
Date : |
03.06.2014 |
LOCATIONS
|
Registered Office : |
Sterling Centre, 2nd Floor, Dr. A.B. Road, Worli,
Mumbai-400018, Maharashtra, India |
|
Tel. No.: |
Not Available |
|
Mobile No.: |
91-9881473086 [Mr. Prabhat Bhagwatkar] |
|
Fax No.: |
Not Available |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Head Office : |
Almonte IT Park, 5th Floor, Next to Radisson Blu Hotel, Pune-411014,
Maharashtra, India |
|
|
|
|
Global Locations : |
Located At:
|
DIRECTORS
AS ON 31.03.2013
|
Name : |
Mr. Harish Mehta |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Mrs. Shaila Mehta |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Pradip Dubhashi |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Arun Meghani |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Samir Desai |
|
Designation : |
Director (up to 16.1.2013) |
|
|
|
|
Name : |
Dr. Atul Wad |
|
Designation : |
Director (up to 16.1.2013) |
|
|
|
|
Name : |
Mr. Sudhir Karnik |
|
Designation : |
Alternate Director to Dr. Atul Wad (up to 17.11.2012) |
|
|
|
|
Name : |
Mr. Pranay Vakil |
|
Designation : |
Director (w.e.f. 16.1.2013) |
|
|
|
|
Name : |
Mr. Nandu Pradhan |
|
Designation : |
Director (w.e.f. 16.1.2013) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2014
|
Category of
Shareholder |
Total No. of Shares |
Total Shareholding as
a % of Total No. of Shares |
|
(A) Shareholding of Promoter and Promoter
Group |
|
|
|
|
|
|
|
|
606610 |
4.26 |
|
|
8241322 |
57.85 |
|
|
8847932 |
62.10 |
|
|
|
|
|
Total shareholding of Promoter and Promoter
Group (A) |
8847932 |
62.10 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
3750 |
0.03 |
|
|
350 |
0.00 |
|
|
550000 |
3.86 |
|
|
554100 |
3.89 |
|
|
|
|
|
|
1296346 |
9.10 |
|
|
|
|
|
|
2387567 |
16.76 |
|
|
1106417 |
7.77 |
|
|
54458 |
0.38 |
|
|
12868 |
0.09 |
|
|
40340 |
0.28 |
|
|
1250 |
0.01 |
|
|
4844788 |
34.01 |
|
Total Public shareholding (B) |
5398888 |
37.90 |
|
Total (A)+(B) |
14246820 |
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) |
14246820 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in Mechanical Engineering Design and IT Consulting. |
GENERAL INFORMATION
|
No. of Employees : |
Information denied by the management. |
||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||
|
Bankers : |
Kotak Mahindra Bank Limited, 36-38A,
Nariman Bhavan, 227, D, Nariman Point, Mumbai - 400021, Maharashtra, India |
||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Kirtane and Pandit Chartered Accountants |
|
Address : |
‘Sangati’, Bhakti Marg, Off. Law College Road, Pune-411004,
Maharashtra, India |
|
|
|
|
Holding Company : |
Onward
Network Technologies Private Limited |
|
|
|
|
Other Related Parties : |
|
CAPITAL STRUCTURE
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
18000000 |
Equity Shares |
Rs.10/- each |
Rs.180.000 Millions |
|
1000000 |
Preferences Shares |
Rs.10/- each |
Rs.10.000 Millions |
|
1000000 |
Unclassified Shares |
Rs.10/- each |
Rs.10.000 Millions |
|
|
TOTAL
|
|
Rs.200.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
13515520 |
Equity Shares |
Rs.10/- each
|
Rs.135.155
Millions |
|
320350 |
Equity Shares |
Rs.10/- each
|
Rs.3.204
Millions |
|
|
TOTAL
|
|
Rs.138.359 Millions |
NOTES:
TERMS/RIGHTS ATTACHED TO EQUITY
SHARES:
Company has only one class
of equity shares having a par value of Rs. 10 per share. Each holder of equity
shares is entitled to one vote per share.
1,708,650
(1,434,950) equity shares
are outstanding under ESOP 2009 scheme as at balance sheet date; each share
being fully paid equity share of Rs. 10 each.
DETAILS
OF SHAREHOLDINGS:
|
PARTICULARS |
AS ON 31.03.2013 |
||
|
|
No. of Shares |
Value |
Holding (%) |
|
Share
held by holding company: |
|
|
|
|
Onward Network Technologies Private Limited |
7420792 |
74.208 |
53.63 |
|
|
|
|
|
|
Holding
more than 5%: |
|
|
|
|
Onward Network Technologies Private Limited |
7420792 |
74.208 |
53.63 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
138.359 |
135.155 |
133.201 |
|
(b) Reserves &
Surplus |
188.603 |
144.369 |
60.340 |
|
(c) Money received
against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application
money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total Shareholders’ Funds
(1) + (2) |
326.962 |
279.524 |
193.541 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term borrowings |
85.180 |
112.116 |
95.404 |
|
(b) Deferred tax
liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long term
liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term provisions |
0.000 |
0.142 |
1.975 |
|
Total Non-current
Liabilities (3) |
85.180 |
112.258 |
97.379 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
65.987 |
66.769 |
53.272 |
|
(b) Trade payables |
3.759 |
22.415 |
17.457 |
|
(c) Other current
liabilities |
162.837 |
144.441 |
110.445 |
|
(d) Short-term provisions |
45.150 |
30.535 |
18.832 |
|
Total Current Liabilities
(4) |
277.733 |
264.160 |
200.006 |
|
|
|
|
|
|
TOTAL |
689.875 |
655.942 |
490.926 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
56.971 |
62.580 |
68.387 |
|
(ii) Intangible Assets |
43.597 |
49.311 |
49.871 |
|
(iii) Capital
work-in-progress |
0.000 |
0.000 |
0.000 |
|
(iv) Intangible assets
under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current
Investments |
265.344 |
246.211 |
198.155 |
|
(c) Deferred tax assets
(net) |
8.220 |
19.108 |
0.000 |
|
(d) Long-term Loan and Advances |
10.068 |
9.018 |
9.013 |
|
(e) Other Non-current
assets |
100.347 |
48.635 |
30.408 |
|
Total Non-Current Assets |
484.547 |
434.863 |
355.834 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
0.000 |
0.000 |
0.000 |
|
(c) Trade receivables |
132.787 |
155.191 |
85.410 |
|
(d) Cash and cash
equivalents |
4.930 |
6.186 |
8.494 |
|
(e) Short-term loans and
advances |
17.770 |
9.857 |
13.500 |
|
(f) Other current assets |
49.841 |
49.845 |
27.688 |
|
Total Current Assets |
205.328 |
221.079 |
135.092 |
|
|
|
|
|
|
TOTAL |
689.875 |
655.942 |
490.926 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
SALES |
|
|
|
|
|
Income |
671.693 |
615.948 |
462.527 |
|
|
Other Income |
13.572 |
11.306 |
8.672 |
|
|
TOTAL (A) |
685.265 |
627.254 |
471.199 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials
Consumed |
25.448 |
19.959 |
18.917 |
|
|
Exceptional Items |
(2.635) |
0.000 |
0.000 |
|
|
Employees benefits
expense |
405.229 |
351.763 |
259.597 |
|
|
Other expenses |
151.461 |
140.386 |
106.127 |
|
|
TOTAL (B) |
579.503 |
512.108 |
384.641 |
|
|
|
|
|
|
|
Less |
PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND
AMORTISATION (C) |
105.762 |
115.146 |
86.558 |
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES (D) |
23.399 |
18.007 |
19.607 |
|
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE
TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
82.363 |
97.139 |
66.951 |
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
29.603 |
30.005 |
29.772 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE TAX (E-F) (G) |
52.760 |
67.134 |
37.179 |
|
|
|
|
|
|
|
Less |
TAX (H) |
15.246 |
(19.108) |
0.000 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) AFTER TAX
(G-H) (I) |
37.516 |
86.242 |
37.179 |
|
|
|
|
|
|
|
Add |
PREVIOUS YEARS’ BALANCE
BROUGHT FORWARD (K) |
67.660 |
(18.582) |
(55.761) |
|
|
|
|
|
|
|
|
BALANCE CARRIED TO THE
B/S |
105.176 |
67.660 |
(18.582) |
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
Product Sale |
8.442 |
3.153 |
0.051 |
|
|
Software Exports Including Consulting Services and Commissions |
214.108 |
262.294 |
228.419 |
|
|
TOTAL EARNINGS |
222.550 |
265.447 |
228.470 |
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
Software |
22.359 |
15.848 |
9.630 |
|
|
TOTAL IMPORTS |
22.359 |
15.848 |
9.630 |
|
|
|
|
|
|
|
|
Earnings / (Loss) Per
Share (Rs.) |
|
|
|
|
|
- Basic |
2.75 |
6.42 |
2.80 |
|
|
- Diluted |
2.51 |
5.95 |
2.66 |
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2013 |
30.09.2013 |
31.12.2013 |
31.03.2014 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
182.500 |
179.800 |
170.600 |
205.400 |
|
Total Expenditure |
157.000 |
152.400 |
142.600 |
164.500 |
|
PBIDT (Excl OI) |
25.600 |
27.400 |
28.100 |
41.000 |
|
Other Income |
03.100 |
01.000 |
02.100 |
02.500 |
|
Operating Profit |
28.600 |
28.400 |
30.200 |
43.500 |
|
Interest |
05.200 |
06.100 |
05.800 |
05.700 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
23.400 |
22.300 |
24.400 |
37.800 |
|
Depreciation |
07.100 |
07.000 |
07.200 |
06.900 |
|
Profit Before Tax |
16.400 |
15.300 |
17.300 |
30.900 |
|
Tax |
0.000 |
0.000 |
0.000 |
23.800 |
|
Profit After Tax |
16.400 |
15.300 |
17.300 |
07.200 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
16.400 |
15.300 |
17.300 |
07.200 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
5.47
|
13.75 |
7.89 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
7.85
|
10.90 |
8.04 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
12.67
|
17.19 |
12.70 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.16
|
0.24 |
0.19 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.46
|
0.64 |
0.77 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.74
|
0.84 |
0.67 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Share Capital |
133.201 |
135.155 |
138.359 |
|
Reserves & Surplus |
60.340 |
144.369 |
188.603 |
|
Net worth |
193.541 |
279.524 |
326.962 |
|
|
|
|
|
|
long-term borrowings |
95.404 |
112.116 |
85.180 |
|
Short term borrowings |
53.272 |
66.769 |
65.987 |
|
Total borrowings |
148.676 |
178.885 |
151.167 |
|
Debt/Equity ratio |
0.768 |
0.640 |
0.462 |
YEAR-ON-YEAR GROWTH
|
Year on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Sales |
462.527 |
615.948 |
671.693 |
|
|
|
33.170 |
9.050 |
NET PROFIT MARGIN
|
Net Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Sales |
462.527 |
615.948 |
671.693 |
|
Profit |
37.179 |
86.242 |
37.516 |
|
|
8.04% |
14.00% |
5.59% |
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 |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
-- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm / promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
No |
|
31] |
PAN of Proprietor/Partner/Director, if available |
No |
|
32] |
Date
of Birth of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
No |
INDEX
OF CHARGES:
|
S. No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number
(SRN) |
|
1 |
10249954 |
24/06/2013 * |
207,500,000.00 |
KOTAK MAHINDRA BANK
LIMITED |
36-38A, NARIMAN BHAVAN,
227, D, NARIMAN POINT, MUMBAI - 400021, MAHARASHTRA, INDIA |
B79985255 |
* Date of charge modification
|
Unsecured Loan |
As
on 31.03.2013 [Rs.
in Millions] |
As
on 31.03.2012 [Rs.
in Millions] |
|
Long Term
Borrowings |
|
|
|
Loans and
Advances From Related Parties |
|
|
|
Desai Finwealth Investment and Securities Private Limited |
0.000 |
1.903 |
|
Onward Network Technologies Private Limited |
15.828 |
74.677 |
|
Onward Properties Private Limited [Erstwhile Shantmurli Holdings
Private Limited] |
10.194 |
10.195 |
|
Inter-Corporate Deposits – Others |
30.000 |
0.000 |
|
Other Loans and
Advances |
|
|
|
Onward Network Technologies Private Limited |
13.643 |
6.955 |
|
Interest on Inter Corporate Deposits – Others |
0.506 |
0.000 |
|
TOTAL
|
70.171 |
93.730 |
MANAGEMENT
DISCUSSION AND ANALYSIS:
OVERVIEW:
The fiscal year 2012 started
with caution and as time progressed the markets are starting to show optimism
for the future. Growth projections are muted for the developed economies
compared to the emerging economies. With the total engineering market spending
to touch $ 1 trillion by 2020, the potential for growth, innovation and
services is huge. Engineering customers R and D dollars are now being spent on
innovating new products, making current products more efficient due to
government, competition and end consumer demand and opening interfaces for the
products to communicate and integration with everything mobile.
The Company is building up
capacity, engineering capability and local presence in proximity to customers
to become a preferred partner to providing these complex high value services.
Engineering outsourcing to India which initially began as a cost optimization
for Automotive, Aerospace, Utilities and General industrial engineering
companies is now becoming more and more of a strategic investment. With
availability of high skilled engineering talent in these low cost countries,
they also bring with them the necessary mindset to innovate and new ways to
make their current products cheaper with better materials and processes. This
helps the Company find levers to leverage productivity and quality and also
ways to enter new local markets.
IT and ITeS sectors lead
the economic growth in terms of employment, export promotion, revenue
generation and standards of living. As per NASSCOM estimates, IT/ITeS sector
(excluding hardware) revenues are estimated at USD 87.6 billion in FY 2011-12;
and the industry’s estimated growth was around 19 per cent during FY 2012-13.
The market size of the industry is expected to rise to USD 225 billion by 2020
from the current size of around SD 100 billion, considering India’s competitive
position, growing demand for exports, Government policy support, and increasing
global footprint.
With rich experience in
execution of several large eGovernance, BFSI projects, OeSL is poised for
higher growth trajectory and also take its footprints into other verticals viz.
Manufacturing, Healthcare, Telecom, etc. besides continuing its strong presence
in BFSI and Govt. verticals.
All our recent investments
are geared towards ensuring the Company is keeping up with the changes in the
macro economic scenario and also long term growth oriented. The Company is
extensively focused on building strong client relations, strong domain
capabilities, and a business model that is current with the times and agile
enough to respond to the ever changing economic scenarios.
PERFORMANCE
SNAPSHOT:
The Company registered a
double digit growth for both the top line and bottom line. The total revenues
were Rs. 1470.000 Millions at year end and EBITDA stood at Rs. 150.000 Millions
Today the Company has 1600+
employees spread over 3 continents providing customers with a wide range of
engineering and IT Solutions. The Company has added customer to the portfolio from
various geographies. The Company’s value proposition and offerings are
attracting the global players to seek services. Continuous focus on the
operational excellence is resulting into repeat orders and move up in the
services value chain.
Engineering being a highly
skilled domain, the recruitment and training and development team of the
Company has good alignment with the domain and technology needs of the
customers and market.
IT services subsidiary
recruited and retained quality Human resources in Technical, Sales and Delivery
functions, who will be the strength for the growth envisaged.
Engineering spend is to
drive the efficiency, product localization, product innovations, to meet the
nextGen requirements of mobility, digitization and sustenance. There has been
significant recognition during the year on Company’s service mix in favor of
high value-added work. This was consistent with the Company’s objective of
being known as solution provider. The Company has plans of continuously to
invest and strengthen Key domain manpower, subject matter experts in order to
offer a high degree of design content to its major customers. This is an era of
capacity offering transforming to capability/solution based offerings. This new
thrust from Company will result into exclusive design services agreements,
leveraging the expansion of sales team and investments in the US and Germany,
which would help the Company to improve its revenue and get better margins.
FUTURE PROSPECTS:
Indian Engineering R and D
services industry is growing substantially in line with the IT and BPO
industry. The Company with more than 7mn hours of experience and demonstrated
track record has a massive opportunity and the ability to support each of its
clients in its Product Development/Process Innovations. This will ensure in a
sustained and recurring business model and ample opportunities to scale up the
business with existing customers. Today, the Company works with some of the
leading manufacturing companies in the world solving their complex engineering
problems. They continue to receive excellent feedback on both quality and
delivery capabilities. Their commitment to all their customer is to proactively
invest in training, capabilities enhancement and CAPEX based on the complex
requirements of their end customers. Over the next few quarters, the Company
has plans to further invest and expand in both North America and Europe which
are the primary markets of the Company.
In India, IT and ITeS
sectors lead the economic growth in terms of employment, export promotion,
revenue generation and standards of living. As per NASSCOM estimates, IT/ITeS
sector (excluding hardware) revenues are estimated at USD 87.6 billion in FY
2011-12; and the industry’s estimated growth was around 19 per cent during FY
2012-13. The market size of the industry in India is expected to rise to USD
225 billion by 2020 from the current around USD 100 billion, considering
India’s competitive position, growing demand for exports, Government policy
support, and increasing global footprint. With rich experience in execution of
several large eGovernance, BFSI projects, OeSL is poised for higher growth
trajectory and also take its footprints into other verticals viz.
Manufacturing, Healthcare, Telecom, etc. besides continuing its strong presence
in BFSI and Govt. verticals.
FIXED ASSETS:
- Building /
Premises
- Furniture and
Fixtures
- Vehicles
- Office
Equipments
- Electrical
Fittings
- Instruments
and Accessories
- Computer
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.59.34 |
|
|
1 |
Rs.99.18 |
|
Euro |
1 |
Rs.80.76 |
INFORMATION DETAILS
|
Information
Gathered by : |
NYA |
|
|
|
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
TPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
48 |
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.