MIRA
INFORM REPORT
|
Report Date : |
01.03.2014 |
IDENTIFICATION DETAILS
|
Name : |
ECI TELECOM INDIA PRIVATE LIMITED |
|
|
|
|
Registered
Office : |
302, B Wing, Times
Square, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
23.12.2003 |
|
|
|
|
Com. Reg. No.: |
11-193807 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.0.100
million |
|
|
|
|
CIN No.: [Company Identification
No.] |
U64202MH2003PTC193807 |
|
|
|
|
PAN No.: [Permanent Account No.] |
AABCE2707J |
|
|
|
|
Legal Form : |
Private Limited Liability Company |
|
|
|
|
Line of Business
: |
Providing Telecom Services. |
|
|
|
|
No. of Employees
: |
Information declined by the management. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (46) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 1644000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an
established company having a satisfactory track record. Overall Financial
position of the company seems to be decent. Company is operating on its owned
funds. Trade relations
are reported to be fair. Business is active. Payment terms are reported to be
usually correct. 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 – December 1, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
The worst is over for India’s economy with gross domestic product likely
to expand 5 %to 5.5 % this year and more than 6 % in 2015, according to Moody’s
Analytics. Concerns over the rupee and current account deficit are under
control, said the agency. Ratings firm Crisil has forecast 6 % growth for
2014/15 up from the estimated 4.8 % for 2013/14. Total economic growth,
infrastructure bottlenecks and lack of transparency and consistency in foreign
direct investment policies seem to have taken a toll on India’s attractiveness
as an investment destination, says an Ernst & Young survey. Projects
with FDI component fell 16.4 % across the globe in 2012 from the previous
year. The drop in India was steeper at 21 %. State run carrier Air India
is doling out free tickets to its 24000 employees, even as it expects to incur
a loss of Rs 39000 mn this financial year and has a debt of Rs 350000 mn.
550000 number of jobs generated across India in 2013, a fall of 0.4 % as
compared to with a year earlier. The National Capital Region has a
one-fourth share in total jobs created, according to a study by industry lobby
group Assochem, Banks, real estate, automobile and telecommunications sectors
are showing a rise of job creation. $ 805 mn investments by venture capital firms
in India during 2013, registering a drop of about 18 % over the previous year.
The Information Technology and IT-Enabled Services Industry retained its
status as the favourable venture capital investors in 2013. Pakistan has
temporarily banned gold imports for the second time in six months, as it tries
to stem smuggling into India. India’s import duty on gold is 10 % and curbs on
purchases have dried up legal imports into what used to be the world’s biggest
bullion buyers. The World Gold Council puts the amount smuggled into India at
upto 200 tonnes in 2013. The Reserve Bank of India has proposed that unclaimed
bank deposits estimated to be about Rs 35000 mn be used for education and
awareness among depositors. According to the plan, deposits that have not
been claimed for at least 10 years will be transferred to the scheme.
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
Management non-cooperative
(Tel. No.: 91-22-67155555)
LOCATIONS
|
Registered Office : |
302, B Wing,
Times Square, Andheri Kurla Road, Andheri (East), Mumbai – 400 059,
Maharashtra, India |
|
Tel. No.: |
91-22-67155555 |
|
Fax No.: |
91-22-66758973/
67155526 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Gurgaon Office : |
MVL I-Park, 3rd
Floor, Wing – B, Chandan Nagar, Sector-15 (II), Gurgaon – 122 001, Haryana,
India |
|
Tel. No.: |
91-124-4417900 |
|
Fax No.: |
91-124-4001799 |
DIRECTORS
AS ON 30.09.2013
|
Name : |
Mr. Kiran Shrikrishna Pande |
|
Designation : |
Director |
|
Address : |
1204, Lilium Mahendra Gardens, S.V. Road, Goregaon (West), Mumbai –
400 062, Maharashtra, India |
|
Date of Birth/Age : |
04.09.1968 |
|
Date of Appointment : |
01.11.2006 |
|
DIN No.: |
01092835 |
|
PAN No.: |
ACZPP2729G |
|
|
|
|
Name : |
Mr. Eyal Tzvi Cohen |
|
Designation : |
Director |
|
Address : |
50 Hapisga Street, Ganei Tikava, Israel 55900 |
|
Date of Birth/Age : |
06.10.1963 |
|
Date of Appointment : |
28.02.2006 |
|
DIN No.: |
00319415 |
|
|
|
|
Name : |
Mr. Arnold Sal Taragin |
|
Designation : |
Director |
|
Address : |
33 Ravutzky St., Raanana, Israel 43220 |
|
Date of Birth/Age : |
08.06.1956 |
|
Date of Appointment : |
30.09.2008 |
|
DIN No.: |
02297014 |
|
|
|
|
Name : |
Mr. Sorin Joseph Lupu |
|
Designation : |
Additional Director |
|
Address : |
Hanami Yosef St. 14, Petach Tikva, Israel 49771 |
|
Date of Birth/Age : |
08.08.1959 |
|
Date of Appointment : |
23.04.2013 |
|
DIN No.: |
06618142 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2013
|
Names of Shareholders |
|
No. of Shares |
|
ECI Telecom Limited, Israel |
|
9999 |
|
ECI Telecom Holdings B.V., Israel |
|
1 |
|
Total
|
|
10000 |
AS ON 30.09.2013
|
Equity Share Breakup |
|
Percentage of Holding |
|
Category |
|
|
|
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Providing Telecom Services. |
|
|
|
|
Products/ Services : |
·
Cables ·
DCDB ·
DDF and Accessories ·
Patch Chords ·
Racks ·
Transmission Equipments |
GENERAL INFORMATION
|
No. of Employees : |
Information declined by the management. |
|
|
|
|
Bankers : |
Not Available |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
B.S.R. and Company Chartered Accountants |
|
Address : |
KPMG House, Kamla Mills Compound, 448, Senapati Bapat Marg, Lower
Parel, Mumbai, Maharashtra, India |
|
PAN No.: |
AAAFB9852F |
|
|
|
|
Holding Company : |
ECI Telecom Limited, Israel |
|
|
|
|
Fellow Subsidiary Company : |
ECI Telecom Inc., United States |
CAPITAL STRUCTURE
AS ON 30.09.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
60000 |
Equity Shares |
Rs.10/- each |
Rs.0.600 million |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10000 |
Equity Shares |
Rs.10/- each
|
Rs.0.100
million |
|
|
|
|
|
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 |
0.100 |
0.100 |
0.100 |
|
(b) Reserves & Surplus |
410.839 |
322.773 |
271.136 |
|
(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) |
410.939 |
322.873 |
271.236 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) Long-term borrowings |
0.000 |
0.000 |
86.696 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long term liabilities |
28.110 |
39.760 |
54.024 |
|
(d) Long-term provisions |
48.962 |
24.602 |
18.106 |
|
Total Non-current Liabilities (3) |
77.072 |
64.362 |
158.826 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Trade payables |
622.454 |
916.105 |
909.343 |
|
(c) Other current
liabilities |
76.409 |
225.672 |
110.887 |
|
(d) Short-term provisions |
217.969 |
169.069 |
17.551 |
|
Total Current Liabilities (4) |
916.832 |
1310.846 |
1037.781 |
|
|
|
|
|
|
TOTAL |
1404.843 |
1698.081 |
1467.843 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
224.361 |
194.235 |
142.425 |
|
(ii) Intangible Assets |
0.502 |
0.079 |
0.240 |
|
(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 |
0.000 |
0.000 |
0.000 |
|
(c) Deferred tax assets (net) |
53.722 |
39.505 |
32.832 |
|
(d) Long-term Loan and Advances |
262.628 |
238.568 |
57.213 |
|
(e) Other Non-current assets |
2.502 |
1.827 |
38.661 |
|
Total Non-Current Assets |
543.715 |
474.214 |
271.371 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
52.449 |
104.012 |
117.974 |
|
(c) Trade receivables |
643.743 |
968.935 |
954.339 |
|
(d) Cash and cash
equivalents |
35.587 |
53.695 |
62.253 |
|
(e) Short-term loans and
advances |
71.488 |
38.023 |
24.188 |
|
(f) Other current assets |
57.861 |
59.202 |
37.718 |
|
Total Current Assets |
861.128 |
1223.867 |
1196.472 |
|
|
|
|
|
|
TOTAL |
1404.843 |
1698.081 |
1467.843 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
TURNOVER |
1563.944 |
1832.091 |
1460.696 |
|
|
|
|
|
|
|
|
NET PROFIT /
(LOSS) |
88.066 |
51.638 |
82.111 |
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
562.908 |
505.784 |
331.722 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.00
|
0.00 |
0.32 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.94
|
0.93 |
1.15 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR
in Mlns.) |
(INR
in Mlns.) |
(INR
in Mlns.) |
|
Share Capital |
0.100 |
0.100 |
0.100 |
|
Reserves & Surplus |
271.136 |
322.773 |
410.839 |
|
Net
worth |
271.236 |
322.873 |
410.939 |
|
|
|
|
|
|
long-term borrowings |
86.696 |
0.000 |
0.000 |
|
Short term borrowings |
0.000 |
0.000 |
0.000 |
|
Total
borrowings |
86.696 |
0.000 |
0.000 |
|
Debt/Equity
ratio |
0.320 |
0.000 |
0.000 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR
in Mlns) |
(INR
in Mlns) |
(INR
in Mlns) |
|
Turnover |
1460.696 |
1832.091 |
1563.944 |
|
|
|
25.426 |
(14.636) |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR
in Mlns) |
(INR
in Mlns) |
(INR
in Mlns) |
|
Turnover |
1460.696 |
1832.091 |
1563.944 |
|
Profit |
82.111 |
51.638 |
88.066 |
|
|
5.62% |
2.82% |
5.63% |
LOCAL AGENCY FURTHER INFORMATION
|
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 |
No |
|
10) Designation of contact person |
No |
|
11) Turnover of firm for last three years |
Yes |
|
12) Profitability for last three years |
Yes |
|
13) Reasons for variation <> 20% |
-- |
|
14) Estimation for coming financial year |
No |
|
15) Capital in the business |
Yes |
|
16) Details of sister concerns |
Yes |
|
17) Major suppliers |
No |
|
18) Major customers |
No |
|
19) Payments terms |
No |
|
20) Export / Import details (if
applicable) |
No |
|
21) Market information |
-- |
|
22) Litigations that the firm / promoter
involved in |
-- |
|
23) Banking Details |
No |
|
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 |
No |
Note:
· The registered office of the company has been shifted from 5th Floor, B Wing, Universal Business Park, Chandivali Farm Road, Sakinaka, Andheri (East), Mumbai – 400 072, Maharashtra to the present address w.e.f. 01.08.2013
· No Charges Exist for Company.
BACKGROUND:
The Company was
incorporated as a private limited company on 23 December 2003. Subject is a
wholly owned subsidiary of ECI Telecom, Israel (‘the parent company’ or ‘the
holding company’). The Company is in the business of installation, commissioning
and maintenance of telecom equipment supplied by the parent company to basic
wired and wireless telecommunication operators in India, and supply of the
telecom equipment accessories. The Company also provides marketing and customer
support services to the parent company. The Company has set up a software
research and development unit in 2005, which is registered under the Software
Technology Parks of India, Mumbai. In addition, on 14 October 2009, the Company
registered its software research and development unit in Bangalore under the
Software Technology Parks of India, Bangalore which would be eligible for
deduction under Section 10B of the Income Tax Act, 1961. Through these units,
the Company is providing software research and development services to its
parent company in Israel.
BUSINESS OPERATIONS:
During the year
the company has witnessed slowdown and decline in terms of its activities and
turnover. Company’s turnover has decreased by 14% during the year from
Rs.1832.091 millions in 2012 to Rs.1563.944 millions. However, during the year
the Company made higher net profit of Rs.88.066 millions as against net profit
of Rs.51.638 millions during the previous year.
COMMITMENTS AND
CONTINGENT LIABILITIES:
|
Particulars |
31.03.2013 (Rs.
in Millions) |
31.03.2012 (Rs.
in Millions) |
|
Bank guarantee given to custom authorities |
2.647 |
1.827 |
|
The Company is
in receipt of notice of demand from Assistant Commissioner of Service Tax Division
V for FY 2008-09 towards short payment of service tax. However, the Company
has appealed against the said demand. Till the time the matter is pending
with the forum the said amount is considered to be contingent in nature. |
0.541 |
0.541 |
|
The Company had
received of notice of demand from Income tax department u/s 144C(1) of the
Income Tax Act 1961 for the purpose of adjustment to be made to the Arms’
Length Price in relation to the international transactions entered during the
financial year ended 31 March 2008. The Company has paid the entire amount in
March 2013. |
6.959 |
6.959 |
|
Total
|
10.147 |
9.327 |
FIXED ASSETS:
Tangible Assets
·
Plant and Equipment
·
Furniture and Fixtures
·
Vehicles
·
Office Equipment
·
Computer Equipments
·
Leasehold Improvements
Intangible Assets
·
Computer Software
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.62.07 |
|
|
1 |
Rs.103.61 |
|
Euro |
1 |
Rs.85.03 |
INFORMATION DETAILS
|
Information Gathered
by : |
HNA |
|
|
|
|
Report Prepared
by : |
SMN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--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 |
NO |
|
--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 |
|
DEFAULTERS |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
46 |
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.