MIRA INFORM REPORT

 

 

Report Date :

18.03.2014

 

IDENTIFICATION DETAILS

 

Name :

TELLZA COMMUNICATIONS INC.

 

 

Formerly Known As :

PHONETIME INC.

 

 

Registered Office :

140 Simcoe Street, Suite 309, Toronto, Ontario M5H 4E9

 

 

Country :

Canada

 

 

Year of Establishments:

1994

 

 

Legal Form :

Public Company

 

 

Line of Business :

Subject is a telecommunications carrier, provides business to business services worldwide.

 

Subject offers international and domestic switched voice services to the telecommunication operators and voice service providers.

 

Subject also provides long distance telecommunication services to telecommunications providers; outsourced telecommunications services at the carrier level; wholesale carrier services; retail voice services, which offer voice termination through TDM or IP interconnections; and domestic SIP termination services.

 

 

No. of Employees

34

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory 

 

 

Payment Behaviour :

Slow but Correct  

 

 

Litigation :

Clear

 

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 01, 2013

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

Canada

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

Canada ECONOMIC OVERVIEW

 

As an affluent, high-tech industrial society in the trillion-dollar class, Canada resembles the US in its market-oriented economic system, pattern of production, and affluent living standards. Since World War II, the impressive growth of the manufacturing, mining, and service sectors has transformed the nation from a largely rural economy into one primarily industrial and urban. The 1989 US-Canada Free Trade Agreement (FTA) and the 1994 North American Free Trade Agreement (NAFTA) (which includes Mexico) touched off a dramatic increase in trade and economic integration with the US its principal trading partner. Canada enjoys a substantial trade surplus with the US, which absorbs about three-fourths of Canadian exports each year. Canada is the US's largest foreign supplier of energy, including oil, gas, uranium, and electric power. Given its great natural resources, highly skilled labor force, and modern capital plant, Canada enjoyed solid economic growth from 1993 through 2007. Buffeted by the global economic crisis, the economy dropped into a sharp recession in the final months of 2008, and Ottawa posted its first fiscal deficit in 2009 after 12 years of surplus. Canada's major banks, however, emerged from the financial crisis of 2008-09 among the strongest in the world, owing to the financial sector''s tradition of conservative lending practices and strong capitalization. Canada achieved marginal growth in 2010-12 and plans to balance the budget by 2015. In addition, the country''s petroleum sector is rapidly becoming an even larger economic driver with Alberta''s oil sands significantly boosting Canada''s proven oil reserves, ranking the country third in the world behind Saudi Arabia and Venezuela.

 

Source : CIA

 


Note:

Your order on PHONETIME INC.

On 09-23-2013, name changed to TELLZA COMMUNICATIONS INC.

 

Company name & address

 

Company name:            TELLZA COMMUNICATIONS INC.

Headquarters:              140 Simcoe Street, Suite 309, Toronto, Ontario M5H 4E9, Canada

Telephone:                    +1 954-608-5058

Fax:                              +1 954-456-3263

Website:                       www.phonetime.com

 

Company summary

 

Corporate ID#:              ON-001815317

State:                           Ontario

Judicial form:                Public Company (TSX = TEL)

Date incorporated:        01-01-2010

Date founded:               1994

Stock:                           188,231,492 shares issued and outstanding

Market value:                CAD 29,175,881= (as of 03-14-2014)

Name of manager:         Gary CLIFFORD

 

 

ACTIVITIES & OPERATIONS

 

Business:

Tellza Communications Inc., a telecommunications carrier, provides business to business services worldwide.

 

The company offers international and domestic switched voice services to the telecommunication operators and voice service providers.

 

It also provides long distance telecommunication services to telecommunications providers; outsourced telecommunications services at the carrier level; wholesale carrier services; retail voice services, which offer voice termination through TDM or IP interconnections; and domestic SIP termination services.

 

The company’s customers and suppliers include fixed line operators, mobile operators, and retail and VoIP service providers.

 

The company was formerly known as Phonetime Inc. and changed its name to Tellza Communications Inc. on September 23, 2013.

 

The Company was founded in 1994 and is based in Toronto, Canada.

 

Staff:    34


Operations & branches:

At the headquarters, we find the corporate office, on lease.

 

The address given on your order

91 Rylander Blvd, Unit 7, Toronto, Ontario

is linked to Envoy Business Services, a mailbox company.

 

 

SHAREHOLDERS & MANAGERS

 

Shareholders:

The Company is listed with the Toronto Stock Exchange under symbol TEL.

 

Management:

Gary CLIFFORD is the President and CEO.

 

Mr. Clifford serves as a Partner of Penfold Capital Corporation.

 

Mr. Clifford serves as the Managing Director of Clifford Capital Corporation. He serves as the Chief Executive Officer, President, Chief Financial Officer and Corporate Secretary of Penfold Capital Acquisition II Corporation and Penfold Capital Acquisition III Corp.

 

He is a Chartered Accountant since 1996, who articled at Coopers & Lybrand. Mr. Clifford holds a Bachelor of Arts Degree in Management from the University of Toronto (Scarborough) in 1992.

 

Michael VASQUEZ is the COO.

 

Subsidiaries & Partnership:

PHONETIME US INC.

1250 E Hallandale Beach Blvd., Suite 703
Hallandale Beach, FL 33009 - USA
Ph: +1 954-456-3191

 

 

FINANCIALS

 

On November 14, 2013, Tellza Communications Inc. announced unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2013.

 

The company's revenue for the three months ended September 30, 2013 was $38 million compared to $22 million in 2012, an increase of 73%.

 

EBITDA for the three months ended was $950,000 compared to $639,000 for the same period in 2012, an increase of 49%. Income before income taxes was $793,000 against $452,000 a year ago. Net and comprehensive income for the period was $573,000 against $547,000 a year ago.

 

The company's revenue for the nine months ended was $112 million compared to $71 million in 2012, an increase of 58%. EBITDA for the nine months ended was $3.0 million compared to $1.9 million for the same period in 2012, an increase of 58%. Net income before taxes for the nine months ended September 30, 2013 was $2.6 million compared to $1.2 million in 2012, an increase of 116%. Net and comprehensive income for the period was $1,781,000 or $0.01 per basic and diluted share against $1,462,000 or $0.01 per basic and diluted share a year ago.

 

Banks:  Royal Bank of Canada

 

 

LEGAL FILINGS

 

Legal filings & complaints:

As of today date, there is no legal filing pending with the Courts.

 

Secured debts summary:   None

 

 

COMPANY CREDIT HISTORY

 

According to our credit analysts, during the last 6 months, 89% of trade experience indicates a regular payment.

Payments of imports are currently made with an average of 5 to 10 days beyond terms.

The banks and financial institutions confirmed late payments.

The Company is in good standing.

This means that all taxes were paid on due date.

The risk is medium.

 

 

Our opinion:

A business connection may be conducted but we suggest you to check regularly the way of payments.

 

 


FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

        Rs.61.52

UK Pound

1

Rs.102.22

Euro

1

Rs.85.23

 

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

               

 

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 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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.