MIRA INFORM REPORT
|
Report No. : |
309078 |
|
Report Date : |
21.02.2015 |
IDENTIFICATION DETAILS
|
Name : |
DIAMOND INFOSYSTEMS LIMITED |
|
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|
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Registered
Office : |
Essen Info Park, 5/9-10, BIDC Gorwa, Vadodara – 390016, Gujarat |
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Country : |
India |
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Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
09.03.1993 |
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Com. Reg. No.: |
04-019094 |
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Capital Investment
/ Paid-up Capital : |
Rs. 58.850 Millions |
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|
CIN No.: [Company Identification
No.] |
L24110GJ1993PLC019094 |
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|
IEC No.: |
Not Available |
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TAN No.: [Tax Deduction &
Collection Account No.] |
Not Available |
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PAN No.: [Permanent Account No.] |
Not Available |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Subject is engaged in providing information
technology and outsourced business services |
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|
No. of Employees
: |
Information declined by the management. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (43) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
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.
Profitability of the company is low. However, liquidity position of the
company is good. Trade relations are reported as fair. Business is active. Payments 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.
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 DENIED
Management non-cooperative (Tel No.: 91-265-2284328)
LOCATIONS
|
Registered Office : |
Essen Info Park, 5/9-10, BIDC Gorwa, Vadodara – 390016, Gujarat, India |
|
Tel. No.: |
91-265-2283969/ 2284328/ 3931234/ 2284328 |
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Fax No.: |
91-265-2284328 |
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E-Mail : |
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Website : |
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Regional Office : |
Located At:
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Overseas Office : |
Located At:
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DIRECTORS
|
Name : |
Mr. Sumit Suresh Bhatnagar |
|
Designation : |
Managing Director |
|
Address : |
6, Green Park Society, Nizampura, Vadodara-390002, Gujarat, India |
|
Date of Birth/Age : |
20.10.1972 |
|
Date of Appointment : |
09.03.1993 |
|
DIN No.: |
00776129 |
|
|
|
|
Name : |
Mr. Prakash Sinha |
|
Designation : |
Director |
|
Address : |
R-20, Nehru Enclave, Gomti Nagar, Lucknow-226020, Uttar Pradesh, India
|
|
Date of Birth/Age : |
07.03.1938 |
|
Date of Appointment : |
29.04.2002 |
|
DIN No.: |
00775879 |
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|
|
Name : |
Mr. Amit Suresh Bhatnagar |
|
Designation : |
Director |
|
Address : |
6, Green Park Society, Nizampura, Vadodara-390002, Gujarat, India |
|
Date of Birth/Age : |
12.02.1970 |
|
Date of Appointment : |
09.03.1993 |
|
DIN No.: |
00775880 |
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|
|
|
Name : |
Mr. Gajendra Narayan Verma |
|
Designation : |
Director |
|
Address : |
R/O Laxmi Cottage, New Colony, Dungarpur-314001, Rajasthan, India |
|
Date of Birth/Age : |
25.09.1921 |
|
Date of Appointment : |
07.01.1995 |
|
DIN No.: |
01869397 |
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|
|
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Name : |
Mr. Suresh Narain Bhatnagar |
|
Designation : |
Director |
|
Address : |
6, Green Park Society, Nizampura, Vadodara-390002, Gujarat, India |
|
Date of Birth/Age : |
10.09.1941 |
|
Date of Appointment : |
09.03.1993 |
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DIN No.: |
01661444 |
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|
Name : |
Namo Narain Bhatnagar |
|
Designation : |
Director |
|
Address : |
67, Oriental Apartment, Sector 9, Rohini, Delhi-110085, India |
|
Date of Birth/Age : |
10.04.1947 |
|
Date of Appointment : |
27.09.2011 |
|
DIN No.: |
02389040 |
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|
|
|
Name : |
Triloki Narayan Bhatnagar |
|
Designation : |
Director |
|
Address : |
3 DA-8, Jawahar Nagar, Jaipur-302004, Rajasthan, India |
|
Date of Birth/Age : |
02.03.1937 |
|
Date of Appointment : |
29.04.2002 |
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DIN No.: |
02397298 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.12.2014
|
Category of
Shareholder |
No. of Shares |
% of Holdings |
|
(A) Shareholding
of Promoter and Promoter Group |
||
|
|
|
|
|
|
175750 |
2.99 |
|
|
2476745 |
42.09 |
|
|
2652495 |
45.07 |
|
|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
2652495 |
45.07 |
|
(B) Public
Shareholding |
||
|
|
|
|
|
|
725000 |
12.32 |
|
|
725000 |
12.32 |
|
|
|
|
|
|
900 |
0.02 |
|
|
|
|
|
|
99824 |
1.70 |
|
|
2406781 |
40.90 |
|
|
2507505 |
42.61 |
|
Total Public
shareholding (B) |
3232505 |
54.93 |
|
Total (A)+(B) |
5885000 |
100.00 |
|
(C) Shares held
by Custodians and against which Depository Receipts have been issued |
|
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total
(A)+(B)+(C) |
5885000 |
0.00 |
Shareholding of securities (including shares, warrants,
convertible securities) of persons belonging to the category Promoter and
Promoter Group
|
Sl.No. |
Name of the
Shareholder |
Details of Shares held |
|
|
No. of Shares held |
As a % of grand total |
||
|
1 |
Diamond Projects Private Limited |
23,07,845 |
39.22 |
|
2 |
S N Bhatnagar |
1,75,750 |
2.99 |
|
3 |
Sumit Associates |
1,68,900 |
2.87 |
|
|
Total |
26,52,495 |
45.07 |
Shareholding of securities (including shares, warrants,
convertible securities) of persons belonging to the category Public and holding
more than 1% of the total number of shares
|
Sl. No. |
Name of the
Shareholder |
No. of Shares
held |
|
Shares as % of
Total No. of Shares |
|
|
||||
|
1 |
Administrator of the Specified |
725000 |
|
12.32 |
|
2 |
Suresh N Bhatnagar |
628141 |
|
10.67 |
|
3 |
Amit Suresh |
537212 |
|
9.13 |
|
4 |
Sumit Suresh |
498323 |
|
8.47 |
|
5 |
Madhurilata Bhatnagar |
326905 |
|
5.55 |
|
6 |
Richa Bhatnagar |
173200 |
|
2.94 |
|
7 |
Mona Bhatnagar |
173200 |
|
2.94 |
|
|
Total |
3061981 |
|
52.03 |
Shareholding of securities (including shares, warrants,
convertible securities) of persons (together with PAC) belonging to the category
“Public” and holding more than 5% of the total number of shares of the company
|
Sl. No. |
Name(s) of the
shareholder(s) and the Persons Acting in Concert (PAC) with them |
No. of Shares |
Shares as % of Total No. of Shares |
|
|
1 |
Administrator of the Specified |
725000 |
12.32 |
|
|
2 |
Suresh N Bhatnagar |
628141 |
10.67 |
|
|
3 |
Amit Suresh |
537212 |
9.13 |
|
|
4 |
Sumit Suresh |
498323 |
8.47 |
|
|
5 |
Madhurilata Bhatnagar |
326905 |
5.55 |
|
|
|
Total |
2715581 |
46.14 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in providing
information technology and outsourced business services |
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Products/ Services : |
Not Available |
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Brand Names : |
Not Available |
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Agencies Held : |
Not Available |
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Exports : |
Not Divulged |
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Imports : |
Not Divulged |
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Terms : |
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Selling : |
Not Divulged |
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Purchasing : |
Not Divulged |
GENERAL INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees : |
Information declined by the management. |
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Bankers : |
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Facilities : |
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Auditors : |
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|
Name : |
Vijay Tewar and Company Chartered Accountants |
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Address : |
315-316, Panorama, R.C. Dutt Road, Vadodara – 390007, Gujarat, India |
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PAN No: |
ABJPT8933H |
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Memberships : |
Not Available |
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Collaborators : |
Not Available |
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|
Company in which
KMP / Relatives of KMP can exercise significant influence: |
|
CAPITAL STRUCTURE
AS ON 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10000000 |
Equity Shares |
Rs. 10/- each |
Rs. 100.000 Millions |
|
100000 |
Preference Shares |
Rs. 100/- each |
Rs. 10.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs. 110.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
5885000 |
Equity Shares |
Rs. 10/-
each |
Rs. 58.850
Millions |
|
|
|
|
|
i) Reconciliation of the number of shares and amount outstanding at the
beginning and at the end of the reporting period:
|
Particulars |
No. of Shares |
Rs. In Millions |
|
Outstanding at the beginning of |
5885000 |
58.850 |
|
Outstanding at the end of the year |
5885000 |
58.850 |
ii) Details of shares held by each shareholder holdings more than 5 %
shares:
|
Name of shareholders |
As at 31st
March, 2014 |
|
|
No of Shares |
% holding in |
|
|
Diamond Projects Limited |
2307845 |
39.22% |
|
Unit Trust of India |
725000 |
12.32% |
|
Suresh N. Bhatnagar |
628141 |
10.67% |
|
Amit Suresh Bhatnagar |
537212 |
9.13% |
|
Sumit Suresh Bhatnagar |
498323 |
8.47% |
|
Madhurilata Bhatanagar |
326905 |
5.55% |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
58.850 |
58.850 |
58.850 |
|
(b) Reserves & Surplus |
132.551 |
119.169 |
96.760 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending
allotment |
16.118 |
16.118 |
16.117 |
|
Total Shareholders’
Funds (1) + (2) |
207.519 |
194.137 |
171.727 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
0.000 |
0.000 |
0.233 |
|
(b) Deferred tax liabilities (Net) |
0.260 |
0.240 |
0.187 |
|
(c) Other long term
liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term
provisions |
0.202 |
0.323 |
0.294 |
|
Total Non-current
Liabilities (3) |
0.462 |
0.563 |
0.714 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
18.645 |
11.569 |
5.670 |
|
(b) Trade
payables |
87.002 |
303.244 |
433.816 |
|
(c) Other
current liabilities |
6.549 |
4.733 |
4.162 |
|
(d) Short-term
provisions |
2.360 |
4.313 |
7.661 |
|
Total Current
Liabilities (4) |
114.556 |
323.859 |
451.309 |
|
|
|
|
|
|
TOTAL |
322.537 |
518.559 |
623.750 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
0.000 |
0.000 |
0.000 |
|
(i)
Tangible assets |
31.594 |
31.410 |
32.698 |
|
(ii)
Intangible Assets |
0.000 |
0.000 |
0.000 |
|
(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 |
85.919 |
85.919 |
82.926 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
24.176 |
23.868 |
23.259 |
|
(e) Other
Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current
Assets |
141.689 |
141.197 |
138.883 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
0.553 |
0.756 |
0.754 |
|
(c) Trade
receivables |
159.618 |
361.048 |
479.181 |
|
(d) Cash
and cash equivalents |
1.034 |
1.714 |
1.770 |
|
(e)
Short-term loans and advances |
18.595 |
13.484 |
2.715 |
|
(f) Other current
assets |
1.048 |
0.360 |
0.447 |
|
Total
Current Assets |
180.848 |
377.362 |
484.867 |
|
|
|
|
|
|
TOTAL |
322.537 |
518.559 |
623.750 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
2785.178 |
2868.400 |
4186.060 |
|
|
|
Other Income |
4.792 |
11.919 |
9.107 |
|
|
|
TOTAL (A) |
2789.970 |
2880.319 |
4195.167 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
2753.166 |
2829.128 |
4136.954 |
|
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
0.203 |
(0.002) |
(0.754) |
|
|
|
Employees benefits expense |
13.147 |
16.262 |
0.000 |
|
|
|
Other expenses |
3.621 |
5.482 |
5.021 |
|
|
|
TOTAL (B) |
2770.137 |
2850.870 |
4156.286 |
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (A-B) (C) |
19.833 |
29.449 |
38.881 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
2.129 |
1.721 |
0.399 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
17.704 |
27.728 |
38.482 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
0.701 |
0.767 |
0.821 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX (E-F)
(G) |
17.003 |
26.961 |
37.661 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
3.621 |
4.552 |
11.187 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX (G-H) (I) |
13.382 |
22.409 |
26.474 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
2.27 |
3.81 |
4.50 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
|
|
|
|
Net Profit Margin PAT / Sales |
(%) |
0.48
|
0.78 |
0.63 |
|
|
|
|
|
|
|
Operating Profit Margin (PBDIT/Sales) |
(%) |
0.71
|
1.03 |
0.93 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
7.19 |
6.23 |
6.96 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.08 |
0.14 |
0.22 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.09 |
0.06 |
0.03 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.58 |
1.17 |
1.07 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
58.850 |
58.850 |
58.850 |
|
Reserves & Surplus |
96.760 |
119.169 |
132.551 |
|
Share Application money
pending allotment |
16.117 |
16.118 |
16.118 |
|
Net
worth |
171.727 |
194.137 |
207.519 |
|
|
|
|
|
|
long-term borrowings |
0.233 |
0.000 |
0.000 |
|
Short term borrowings |
5.670 |
11.569 |
18.645 |
|
Total
borrowings |
5.903 |
11.569 |
18.645 |
|
Debt/Equity
ratio |
0.034 |
0.060 |
0.090 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
4186.060 |
2868.400 |
2785.178 |
|
|
|
(31.477) |
(2.901) |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
4186.060 |
2868.400 |
2785.178 |
|
Profit |
26.474 |
22.409 |
13.382 |
|
|
0.63% |
0.78% |
0.48% |
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 |
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 |
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 |
No |
CURRENT OPERATIONS
“In today’s rapidly changing business scenario, information is the power to propel ahead.”
Today with the advancement of science and technology, information is growing not merely by bytes but by terabytes and dealing with such voluminous information is a huge challenge for businesses to make quick and speedy decisions.
Subject is a group company of Diamond Power, is amongst the fastest upcoming and growing services, BPO and Product Engineering companies.
The operations of the Company now can be classified into following segments:
1. IMG Division
(Infrastructure Management Group)
Under the IMG Division Diamond Infosystems has a wide array of products and services to offer under the following heads:-
System Integration
Hardware sales and
services
DIL offers a large and varied set of product sales and services including a full range of hardware solutions from entry level PCs/Notebooks to high-end servers for the needs of Corporate, Small Business and Home customers. We also provide/sell various hardware devices from various business alliances like DELL, HCL, Intel, HP, IBM, Toshiba to name a few.
Network Integration
Their Network Integration solutions and services ensure that the communication networks deliver the performance the business relies on. Their Network Integration solutions and services ensure that the communication networks deliver the performance the business relies on.
Peripheral Sales and
Services
DIL also provides peripheral sales and services from various partners with competitive market rates and enables quick after sales service.
System Maintenance
and Upgradation
DIL has a very prompt customer helpdesk for quick reporting and on-phone guidance. It is also equipped with latest debugging tools and equipment.
Web Solutions
Diamond Infosystems is helping companies leapfrog into the future by creating a strong web presence. Their web solutions are helping turn 9 to 5 business operations into 24*7 revenue generating machines. Their web services and solutions include:-
Domain Registration
Domain names from DIL give you a complete web presence. Registering the domain names with DIL ensures great customer service, the best pricing along with a host of other features.
Website Hosting
They are one of the most competitive web service providers offering host of services for building the web presence. We specialize in composite, managed servers, dedicated servers, dedicated hosting, virtual private servers (VPS hosting), ASP. NET and LAMP web hosting solutions. They provide hosting solution for both Windows and Linux platform both.
Website Designing
Diamond Infosystems specializes in highest quality interactive websites, logos, and templates as well as ecommerce website design and also specializes in Website User Interface, Website Re-design, Web 2.0 based
Layout Designing, HTML/CSS, DIV/CSS (Table less Designs) and JS/DHTML.
E-Commerce
Development
DIL focuses on custom Ecommerce solutions and custom web site development that fit the business challenges. Their Ecommerce initiatives improve sales performances, customer satisfaction and marketing initiatives undertaken by a company
FUTURE PROSPECTS
The Company sustains a relentless competitive focus as the economic climate is expected to remain challenging. The Company will continue to deploy resources in a focused manner to secure stakeholder interest and pursue growth.
The future prospectus of the industry is grim thus it is very important for us to sustain and venture into new and better areas within the IT industry to survive and make the entity profitable. As a measure of the same, it gives us immense pleasure to inform you that Diamond Infosystems Limited would be soon opening an office in Dubai followed by South Africa and New Zealand to manage its business operations abroad.
MANAGEMENT DISCUSSION
ANALYSIS REPORT
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 the Generally Accepted Accounting Principles (GAAP) in India. Their Management accepts responsibility for the integrity and objectivity of these financial statements, as well as for the various estimates and judgments used therein. The estimates and judgments 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 our state of affairs, profits and cash flows for the year.
Industry structure
and developments:
Changing economic and business conditions and rapid technological innovation are creating an increasingly competitive market environment that is driving corporations to transform their operations. Consumers of products and services are increasingly demanding accelerated delivery times and lower prices. Companies are focusing on their core competencies and using outsourced technology service providers to adequately address these needs. The role of technology has evolved from supporting corporations to transforming their business. There is an increasing need for highly skilled technology professionals in the markets in which we operate. At the same time, corporations are reluctant to expand their internal IT departments and increase costs. These factors have increased the reliance of corporations on their outsourced technology service providers and are expected to continue to drive future growth for outsourced technology services.
1. Increasing trend
towards offshore technology services
Outsourcing the development, management and ongoing maintenance of technology platforms and solutions has become increasingly important to companies.
2. The India
advantage
India is widely recognized as the premier destination for offshore technology services. According to the NASSCOM Strategic Review 2011, IT services exports (excluding exports relating to business process outsourcing (BPO), hardware, engineering design and product development) from India are estimated to grow by
22.7% in fiscal 2011, to record revenues of US$ 33.5 billion.
3. Evolution of
technology outsourcing
The realm of technology outsourcing is changing. In an environment of rapid technological advancement, globalization and regulatory changes, companies are looking at outsourcing approaches that require their technology service providers to develop specialized systems, processes and solutions along with cost-effective delivery capabilities.
4. Our end-to-end
solutions
We complement their industry expertise with specialized support for their clients. We also leverage the expertise of their various Centers of Excellence and their software engineering group and technology lab to create customized solutions for their clients. In addition, we continually evaluate and train their professionals in new technologies and methodologies. Finally, we ensure the integrity of their service delivery by utilizing a scalable and secure infrastructure.
OUTLOOK, RISKS AND
CONCERNS
This section contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those anticipated in these statements as a result of certain factors.
The following lists our outlook, risks and concerns:
Ř Their revenues and expenses are difficult to predict and can vary significantly from period to period, which could cause our share price to decline. We may not be able to sustain t
Ř Their previous profit margins or levels of profitability.
Ř Their revenues are highly dependent on clients primarily located in the U.S. and Europe, as well as in certain industries, and an economic slowdown or other factors that affect the economic health of the U.S., Europe or these industries may affect our business.
Ř Currency fluctuations may affect the results of their operations.
Ř Their success depends largely upon our highly skilled technology professionals and their ability to hire, attract, motivate, retain and train our personnel.
Ř They may face difficulties in providing end-to-end business solutions for their clients, which could lead to clients discontinuing their work with us. This in turn could harm our business.
Ř Intense competition in the market for technology services could affect their cost advantages, which could reduce our share of business from clients and may decrease our revenues.
Ř Their revenues are highly dependent upon a small number of clients, and the loss of any one of our major clients could significantly impact our business.
Ř Legislation in certain countries in which we operate, including the United States and the United Kingdom, may restrict companies in those countries from outsourcing work to us.
Ř Compliance with new and changing corporate governance and public disclosure requirements adds uncertainty to their compliance policies and increases our costs of compliance.
Ř Their failure to complete fixed-price, fixed-timeframe contracts or transaction based pricing contracts within the budget and on time, may negatively affect our profitability.
Ř Their client contracts can be terminated without cause and with little or no notice or penalty. This could negatively impact our revenues and profitability.
Ř Their engagements with customers are singular in nature and do not necessarily provide for subsequent engagements.
Ř Their client contracts are often conditioned upon their performance, which, if unsatisfactory, may result in less revenue than previously anticipated.
Ř Some of their long-term client contracts contain benchmarking provisions which, if triggered, could result in lower future revenues and profitability under the contract.
Ř Their business will suffer if we fail to anticipate and develop new services and enhance existing services in order to keep pace with rapid changes in technology and in the industries on which we focus.
Ř Disruptions in telecommunications, system failures or virus attacks could harm our ability to execute our GDM, which could result in client dissatisfaction and a reduction of our revenues.
Ř We may be liable to our clients for damages caused by disclosure of confidential information, system failures, errors or unsatisfactory performance of services.
Ř Their increasing work with governmental agencies may expose us to additional risks.
Ř We are investing substantial cash assets in new facilities and physical infrastructure, and our profitability could be reduced if our business does not grow proportionately.
Ř They may be unable to recoup our investment costs to develop our software products.
Ř Their insiders who are significant shareholders may control the election of our Board and may have interests that conflict with those of our other shareholders or holders of our ADSs.
Ř They may engage in acquisitions, strategic investments, strategic partnerships or alliances or other ventures that may or may not be successful.
Ř Their net income would decrease if the Government of India reduces or withdraws tax benefits and other incentives it provides to us or when their tax holidays expire or terminate.
Ř In the event that the Government of India or the government of another country changes its tax policies in a manner that is adverse to us, our tax expense may materially increase, reducing our profitability.
Ř They operate in jurisdictions that impose transfer pricing and other tax-related regulations on us, and any failure to comply could materially and adversely affect our profitability.
Ř Wage pressures in India and the hiring of employees outside India may prevent us from sustaining our competitive advantage and may reduce our profit margins.
Ř Terrorist attacks or a war could adversely affect our business, results of operations and financial condition.
Ř The markets in which we operate are subject to the risk of earthquakes, floods, tsunamis and other natural and man-made disasters.
Ř Changes in immigration laws may affect our ability to compete and provide services to our clients in various countries. This could hamper our growth and may have an impact on our revenues.
Ř Their ability to acquire companies organized outside India depends on the approval of the Government of India and / or the Reserve Bank of India, and failure to obtain this approval could negatively impact our business.
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number (SRN) |
|
1 |
10503078 |
29/05/2014 |
30,000,000.00 |
Corporation Bank |
14-15 National Plaza,, RC Dutt Road, Alkapuri,, Vadodara, Gujarat - 390005, INDIA |
C06666820 |
|
2 |
10330565 |
23/12/2011 |
10,000,000.00 |
CORPORATION BANK |
14-15 National Plaza, RC Dutt Road, Alkapuri,, Vadodara, Gujarat - 390005, INDIA |
B30149983 |
STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS
FOR THE QUARTER ENDED 31ST DECEMBER 2014
(Rs. in millions)
|
Sr. No. |
Particulars |
Quarter Ended |
Quarter Ended |
For 9 Month Ended |
|
31.12.2014 |
30.09.2014 |
31.12.2014 |
||
|
Unaudited |
Unaudited |
Unaudited |
||
|
Part I |
|
|
|
|
|
1. |
Income from
Operations |
|
|
|
|
|
a)
Net Sales / Income from Operations |
529.255 |
1148.511 |
2967.819 |
|
|
b)
Other Operating Income |
0.000 |
0.000 |
0.000 |
|
|
Total
Income from Operations (net) |
529.255 |
1148.511 |
2967.819 |
|
2. |
Expenditure |
|
|
|
|
|
a)
Cost of materials consumed |
-- |
-- |
-- |
|
|
b)
Purchase of stock-in-trade |
521.899 |
1135.780 |
2931.807 |
|
|
c) Changes in inventories
of finished goods, work-in-progress and stock-in-trade |
-- |
-- |
-- |
|
|
d)
Employee benefits expense |
3.739 |
4.000 |
11.445 |
|
|
e)
Depreciation and amortisation expense |
-- |
-- |
-- |
|
|
f) Power and Fuel Charges |
-- |
-- |
-- |
|
|
g)
Other expenses |
0.931 |
1.044 |
3.017 |
|
|
Total Expenses |
526.569 |
1140.827 |
2946.269 |
|
3. |
Profit/ (Loss) from
Operations before Other Income, Exchange gain/(loss), Finance costs and
Exceptional items (1-2) |
2.686 |
7.687 |
21.550 |
|
4. |
Other Income |
0.194 |
0.180 |
0.596 |
|
5. |
Profit /(Loss)
from Ordinary activities before finance costs and Exceptional items (3+4a+4b) |
2.880 |
7.867 |
22.146 |
|
6. |
Interest |
0.923 |
0.627 |
2.304 |
|
7. |
Profit / (Loss) from ordinary activities after
Finance costs but before Exceptional items (5-6) |
1.957 |
7.240 |
19.842 |
|
8. |
Exceptional items |
-- |
-- |
-- |
|
9. |
Profit/ (Loss) from ordinary activities
before tax (7+8) |
1.957 |
7.240 |
19.842 |
|
10. |
Tax expenses |
-- |
-- |
-- |
|
11. |
Net Profit / (Loss) from ordinary
activities after tax (9-10) |
1.957 |
7.240 |
19.842 |
|
12. |
Extraordinary
items |
-- |
-- |
-- |
|
13. |
Net Profit /
(Loss) for the period (11+12) |
1.957 |
7.240 |
19.842 |
|
14. |
Paid-up equity share capital (Face Value of Rs. 10 per share) |
58.850 |
58.850 |
58.850 |
|
15. |
Reserve excluding Revaluation reserve |
|
|
|
|
16. |
Earnings Per Share (EPS) before and after extraordinary items (of Rs.
10/- each) a) Basic b) Diluted |
0.03 |
0.03 |
0.03 |
|
|
|
|
|
|
|
Part II |
|
|
|
|
|
A. |
PARTIULARS OF SHAREHOLDINGS |
|
|
|
|
|
Public
Shareholding |
|
|
|
|
|
- Number of Shares |
810000 |
810000 |
810000 |
|
|
- Percentage of Shareholding |
13.76 |
13.76 |
14.76 |
|
|
Promoters and
Promoter Group Shareholding |
|
|
|
|
|
a)
Pledged/Encumbered |
|
|
|
|
|
- Number of Shares |
50.75 |
50.75 |
50.75 |
|
|
- Percentage of Shares (as a % of the Total Shareholding of promoter
and promoter group) |
-- |
-- |
-- |
|
|
- Percentage of Shares (as a % of the Total Share Capital of the
Company) |
86.24 |
86.24 |
86.24 |
|
|
b) Non
Encumbered |
|
|
|
|
|
- Number of Shares |
-- |
-- |
-- |
|
|
- Percentage of Shares (as a % of the Total Shareholding of Promoter and
Promoter Group) |
-- |
-- |
-- |
|
|
- Percentage of Shares (as a % of the Total Share Capital of the
Company) |
-- |
-- |
-- |
|
PARTICULARS |
For the quarter ended 31st December
2014 |
|
B INVESTORS COMPLAINTS |
|
|
Pending at the beginning of the quarter |
-- |
|
Received during the quarter |
0 |
|
Disposed during the quarter |
0 |
|
Remaining unresolved at the end of the quarter |
-- |
FIXED ASSETS
- Land
- Buildings
- Computers
- Vehicles
- Office
equipment
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. 62.26 |
|
|
1 |
Rs. 96.01 |
|
Euro |
1 |
Rs. 70.72 |
INFORMATION DETAILS
|
Information
Gathered by : |
PRT |
|
|
|
|
Analysis Done by
: |
SUM |
|
|
|
|
Report Prepared
by : |
JYO |
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 |
|
--PROFITABILITY |
1~10 |
3 |
|
--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 |
|
43 |
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.