MIRA INFORM REPORT
|
Report No. : |
302443 |
|
Report Date : |
08.01.2015 |
IDENTIFICATION DETAILS
|
Name : |
HINDUJA GLOBAL SOLUTIONS LIMITED |
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|
|
|
Registered
Office : |
Hinduja House, 171, |
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Country : |
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Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
13.01.1995 |
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Com. Reg. No.: |
11-084610 |
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Capital Investment
/ Paid-up Capital : |
Rs. 206.164
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L92199MH1995PLC084610 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMT04679D |
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PAN No.: [Permanent Account No.] |
AAACT1763A |
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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 Business Process Management. |
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No. of Employees
: |
Information declined by the management |
RATING & COMMENTS
|
MIRA’s Rating : |
A (63) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Exist |
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Comments : |
Subject is a part of the Hinduja Group. It is a well-established and a reputed Company having fine track
record. Financial position of the company seems to be sound. Directors are reported to be experienced, respectable and resourceful
businessmen. Trade relations are reported as fair. Business is active. Payments are
reported to be regular and as per commitment. 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.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Long Term Rating = A+ |
|
Rating Explanation |
Have adequate degree of safety and carry low credit risk. |
|
Date |
May 20, 2014 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short Term Rating = A1+ |
|
Rating Explanation |
Have Very Strong degree of safety and carry lowest credit risk. |
|
Date |
May 20, 2014 |
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 DECLINED
Management Non-Cooperative (91-22-24960707)
LOCATIONS
|
Registered Office : |
Hinduja House, 171, |
|
Tel. No.: |
91-22-24960707 |
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Fax No.: |
91-22-24974208 |
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E-Mail : |
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Website : |
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Corporate Office : |
HGS House No. 614, Vajpayee Nagar, Bommanahlli, Hosur Road,
Bangalore-560068, Karnataka, India |
|
Tel. No.: |
91-80-25732620/ 50 |
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Fax No.: |
91-80-25731592 |
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E-Mail : |
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Branches : |
Located at: ·
·
Chennai ·
·
·
·
Vashi, Navi Mumbai |
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Overseas Offices : |
Located at: ·
·
·
·
·
·
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DIRECTORS
As on 31.03.2014
|
Name : |
Mr. Ramkrishan P Hinduja |
|
Designation : |
Chairman |
|
Address : |
13 B Chemin Dela Prevote 1223 Cologny Geneva, Switzerland |
|
Date of Birth/Age : |
20.01.1971 |
|
Date of Appointment : |
05.03.2007 |
|
DIN No.: |
00278711 |
|
|
|
|
Name : |
Mr. Shanu S. P. Hinduja |
|
Designation : |
Director |
|
Address : |
Flat 8/9, 24, Carlton House Terrace London SW1Y5AP, United Kingdom |
|
Date of Birth/Age : |
14.05.1964 |
|
Date of Appointment : |
04.03.2013 |
|
DIN No.: |
06512872 |
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|
|
|
Name : |
Mr. Vinod S Hinduja |
|
Designation : |
Director |
|
Address : |
24 Carlton House Terrace Londaon SW1Y4TE, Great Britan |
|
Date of Birth/Age : |
14.04.1967 |
|
Date of Appointment : |
25.10.2008 |
|
DIN No.: |
00493148 |
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|
|
|
Name : |
Mr. Anil Harish |
|
Designation : |
Director |
|
Address : |
13 CCI Chambers Dineshaw Wacha Road, Mumbai-400020, Maharashtra, India
|
|
Date of Birth/Age : |
19.03.1954 |
|
Date of Appointment : |
03.07.2014 |
|
DIN No.: |
00001685 |
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|
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|
Name : |
Mr. Rajendra P Chitale |
|
Designation : |
Director |
|
Address : |
131 Tanna Residency 392 Veer Savarkar Marg Prabhadevi, Mumbai-400025,
Maharashtra, India |
|
Date of Birth/Age : |
10.04.1961 |
|
Date of Appointment : |
03.07.2014 |
|
DIN No.: |
00015986 |
|
|
|
|
Name : |
Mr. Rangan Mohan |
|
Designation : |
Director |
|
Address : |
600 12th Main Hal Second Stage Indira Nagar,
Banglore-560008, Karnataka, India |
|
Date of Birth/Age : |
03.09.1960 |
|
Date of Appointment : |
03.07.2014 |
|
DIN No.: |
01116821 |
KEY EXECUTIVES
|
Name : |
Mr. Partha De Sarkar |
|
Designation : |
Manager |
|
Address : |
C 2-253 Sobha Lavendervarathur Hobli, Bellandur, Banglore-560103, Karnataka, India |
|
Date of Birth/Age : |
17.05.1963 |
|
Date of Appointment : |
01.04.2007 |
|
PAN No.: |
ABUPS5813L |
|
|
|
|
Global Advisory
Committee |
|
|
Name : |
Mr. Narsimha Murthy B.N. |
|
Designation : |
President- HGS Inc. |
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|
|
|
Name : |
Mr. Kathy Hamburger |
|
Designation : |
President - HGS USA |
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|
Name : |
Mr. Pushkar Misra |
|
Designation : |
President and Chief Executive Officer HSGL- |
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|
Name : |
Mr. Ramesh Gopalan |
|
Designation : |
Executive Vice President- International Operations |
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|
Name : |
Mr. Matthew Vallance |
|
Designation : |
Chief Executive Officer, Europe and UK |
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Name : |
Mr. Sridhar Krishnamurthy |
|
Designation : |
Executive Vice President – Strategic Initiatives |
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|
Name : |
Mr. Makarand Dinkar Dewal |
|
Designation : |
Secretary |
|
Address : |
Flat No- B-101 Suncrest Accolade Chs. Green Road Nearlic Building Thane (W), Maharashtra, India |
|
Date of Birth/Age : |
06.01.1956 |
|
Date of Appointment : |
02.06.2014 |
|
PAN No.: |
AACPD1894K |
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|
|
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 06.12.2014
|
Names of Shareholders |
No. of Shares |
Percentage |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
3801750 |
18.23 |
|
|
9048000 |
43.39 |
|
|
12849750 |
61.62 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
12849750 |
61.62 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
408000 |
1.96 |
|
|
408000 |
1.96 |
|
|
|
|
|
|
1002000 |
4.80 |
|
|
|
|
|
|
2046000 |
9.81 |
|
|
3582000 |
17.18 |
|
|
966000 |
4.63 |
|
|
966000 |
4.63 |
|
|
7596000 |
36.43 |
|
Total Public shareholding (B) |
8004000 |
38.38 |
|
Total (A)+(B) |
20853750 |
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) |
20853750 |
100.00 |
Shareholding
belonging to the category "Promoter and Promoter Group"
|
Sl.No. |
Name of the Shareholder |
Details of Shares held |
Total shares (including underlying shares assuming full
conversion of warrants and convertible securities) as a % of diluted share
capital |
|
|
No. of Shares held |
As a % of grand
total (A)+(B)+(C) |
|||
|
1 |
Ashok P Hinduja |
31,600 |
0.15 |
0.15 |
|
2 |
Harsha Ashok Hinduja |
16,695 |
0.08 |
0.08 |
|
3 |
Harsha Ashok Hinduja Jt. Ashok Parmanand Hinduja |
12,498 |
0.06 |
0.06 |
|
4 |
Ashok P Hinduja Jt. Harsha Ashok Hinduja |
45,313 |
0.22 |
0.22 |
|
5 |
Vinoo Srichand Hinduja |
61,065 |
0.30 |
0.30 |
|
6 |
Satya Ashok Hinduja |
5,45,000 |
2.63 |
2.63 |
|
7 |
Ambika Ashok Hinduja |
1,77,242 |
0.86 |
0.86 |
|
8 |
Shom Ashok Hinduja |
1,40,007 |
0.68 |
0.68 |
|
9 |
Shanoo Mukhi |
955 |
0.00 |
0.00 |
|
10 |
Ashok P Hinduja Karta of A P Hinduja HUF |
54,327 |
0.26 |
0.26 |
|
11 |
Ashok P Hinduja, Karta of S P Hinduja (HUF Bigger) |
5,32,483 |
2.57 |
2.57 |
|
12 |
Hinduja Group Ltd |
57,48,541 |
27.79 |
27.79 |
|
13 |
Hinduja Group Ltd jtly with Hinduja Realty Ventures Ltd.(as the
Demat account holder & partners of Asia Exports) |
26,24,490 |
12.69 |
12.69 |
|
14 |
Hinduja Group Ltd jtly with Hinduja Realty Ventures Ltd.(as the
Demat account holder & partners of Asia Corporation) |
4,77,809 |
2.31 |
2.31 |
|
15 |
Hinduja Group Ltd jtly with Hinduja Realty Ventures Ltd.(as the
Demat account holder & Hinduja Estate Developers) |
8,00,000 |
3.87 |
3.87 |
|
16 |
Amas Mauritius Ltd |
27,61,427 |
13.35 |
13.35 |
|
|
Total |
1,40,29,452 |
67.83 |
67.83 |
Shareholding belonging
to the category "Public" and holding more than 1% of the Total No. of
Shares
|
Sl. No. |
Name of the Shareholder |
No. of Shares held |
Shares as % of Total No. of Shares |
Total shares (including underlying shares assuming full
conversion of warrants and convertible securities) as a % of diluted share
capital |
|
|
1 |
Bajaj Allianz Life Insurance Company Limited |
656453 |
1.79 |
1.79 |
|
|
2 |
Wasatch Emerging Markets Small Cap Fund |
565973 |
1.55 |
1.55 |
|
|
3 |
HDFC Trustee Company Limited - A/C HDFC MID - Capopportunities Fund |
410000 |
1.12 |
1.12 |
|
|
4 |
Indian Syntans Investments Private Limited |
492848 |
1.35 |
1.35 |
|
|
5 |
Meenakshi Narayanan Investments Private Limited |
411539 |
1.12 |
1.12 |
|
|
6 |
PineBridge Investments Asia Limited A/C Pinebridge Investments GF Mauritius Limited |
448628 |
1.23 |
1.23 |
|
|
|
Total |
2985441 |
8.15 |
8.15 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in Business Process Management. |
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Products : |
Not Available |
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Brand Names : |
Not Available |
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Agencies Held : |
Not Available |
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Exports : |
Not Available |
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Imports : |
Not Available |
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Terms : |
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Selling : |
Not Available |
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Purchasing : |
Not Available |
GENERAL INFORMATION
|
Suppliers : |
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Customers : |
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No. of Employees : |
Not Divulged |
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Bankers : |
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Facilities : |
(Rs.
In Millions)
|
|
Auditors : |
|
|
Name : |
Price Waterhouse Chartered Accountant |
|
Address : |
Mumbai, Maharashtra, India |
|
PAN No.: |
AAEFP3641G |
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|
|
|
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|
|
Internal Audit and Systems |
Rakesh S. Jain Assistant General Manager – Internal Audit |
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Subsidiaries : |
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|
Enterprises where
common control exists : |
|
CAPITAL STRUCTURE
As on 30.09.2014
Authorised Capital : Rs.250.000 millions
Issued, Subscribed & Paid-up Capital : Rs.206.837
millions
As on 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
25000000 |
Equity Shares |
Rs. 10/- each |
Rs.250.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
20616427 |
Equity Shares |
Rs. 10/-
each |
Rs.206.164
Millions |
|
|
|
|
|
Rights, preferences and
restrictions attached to equity shares:
The Company has one class of Equity Shares having a par value of R 10 each. Each Shareholder is eligible for one vote per share held.
The dividend proposed by the Board of Directors is subject to the approval of the Shareholders in the ensuing Annual General Meeting, except in case of Interim Dividend.
In the event of liquidation, the Equity Shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential amounts, in proportion to their shareholding.
Number of shares
reserved for issue under the Employee Stock Option Plan
|
Particulars |
As at 31.03.2014 |
|
i) Hinduja Global Solutions Limited Employee Stock Option Plan 2008 |
155,580 |
|
ii) Hinduja Global Solutions Limited Employee Stock Option Plan 2011 |
277,236 |
The details of
Shareholder holding more than 5%
|
Name of the
Shareholder |
Number of Shares |
% held |
|
Aasia Management and Consultancy Private Limited |
5,748,541 |
27.88 |
|
Aasia Management and Consultancy Private Limited jointly with Hinduja Realty Ventures Limited (as the Demat account holder and partner of Aasia Exports) |
2,624,490 |
12.73 |
|
Aasia Management and Consultancy Private Limited Jointly with Hinduja Realty Ventures Limited (as the demat account holder and partners of Aasia Corporation) |
---- |
---- |
|
Amas Mauritius Limited |
2,761,427 |
13.39 |
|
Credit Suisee (Singapore) Limited |
1,894,810 |
9.19 |
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 |
206.164 |
205.892 |
205.892 |
|
(b) Reserves & Surplus |
7471.219 |
6440.245 |
6328.828 |
|
(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) |
7677.383 |
6646.137 |
6534.720 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
547.384 |
510.500 |
0.000 |
|
(b) Deferred tax liabilities (Net) |
52.925 |
54.556 |
58.286 |
|
(c) Other long term
liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term
provisions |
51.767 |
49.772 |
0.536 |
|
Total Non-current
Liabilities (3) |
652.076 |
614.828 |
58.822 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
850.000 |
803.183 |
1306.145 |
|
(b) Trade
payables |
454.133 |
403.630 |
332.563 |
|
(c) Other
current liabilities |
801.036 |
606.602 |
476.467 |
|
(d) Short-term
provisions |
401.484 |
603.439 |
648.731 |
|
Total Current
Liabilities (4) |
2506.653 |
2416.854 |
2763.906 |
|
|
|
|
|
|
TOTAL |
10836.112 |
9677.162 |
9357.448 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
1977.633 |
1819.804 |
1926.744 |
|
(ii)
Intangible Assets |
193.291 |
102.056 |
112.962 |
|
(iii)
Capital work-in-progress |
0.000 |
11.364 |
0.945 |
|
(iv)
Intangible assets under development |
5.262 |
15.943 |
0.000 |
|
(b) Non-current Investments |
4471.067 |
4477.538 |
4344.725 |
|
(c) Deferred tax assets (net) |
1115.805 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
5.397 |
970.006 |
931.100 |
|
(e) Other
Non-current assets |
0.000 |
6.888 |
0.734 |
|
Total Non-Current
Assets |
7768.455 |
7403.599 |
7317.210 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
1.338 |
1.268 |
1.205 |
|
(b)
Inventories |
0.000 |
0.000 |
0.000 |
|
(c) Trade
receivables |
1508.115 |
1279.232 |
953.137 |
|
(d) Cash
and cash equivalents |
573.472 |
203.686 |
174.693 |
|
(e)
Short-term loans and advances |
128.217 |
212.469 |
299.632 |
|
(f) Other
current assets |
856.515 |
576.908 |
611.571 |
|
Total
Current Assets |
3067.657 |
2273.563 |
2040.238 |
|
|
|
|
|
|
TOTAL |
10836.112 |
9677.162 |
9357.448 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
8663.509 |
7034.139 |
6313.501 |
|
|
|
Other Income |
658.445 |
175.009 |
141.705 |
|
|
|
TOTAL (A) |
9321.954 |
7209.148 |
6455.206 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Employee Costs |
5294.803 |
4523.741 |
4129.993 |
|
|
|
Operating and Other Expenses |
1580.254 |
1298.165 |
1131.492 |
|
|
|
Exceptional Item- Income |
0.000 |
52.867 |
0.000 |
|
|
|
TOTAL (B) |
6875.057 |
5874.773 |
5261.485 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2446.897 |
1334.375 |
1193.721 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
176.734 |
173.088 |
110.210 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2270.163 |
1161.287 |
1083.511 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
420.407 |
386.038 |
361.370 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1849.756 |
775.249 |
722.141 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
504.203 |
235.136 |
95.990 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1345.553 |
540.113 |
626.151 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1201.909 |
1196.031 |
1109.550 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
134.555 |
54.011 |
62.615 |
|
|
|
Final Proposed |
206.164 |
411.784 |
411.784 |
|
|
|
Tax on Dividend |
35.038 |
68.440 |
65.271 |
|
|
BALANCE CARRIED
TO THE B/S |
2171.705 |
1201.909 |
1196.031 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Business Process Management |
3235.159 |
2596.622 |
2167.573 |
|
|
|
Information Technology Enabled Services (ITES) |
0.000 |
0.000 |
0.000 |
|
|
|
Sale of Fixed Assets |
0.000 |
0.000 |
0.000 |
|
|
|
Other Income earned at overseas branches |
0.000 |
0.000 |
0.000 |
|
|
TOTAL EARNINGS |
3235.159 |
2596.622 |
2167.573 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Capital Goods |
18.250 |
37.768 |
3.644 |
|
|
TOTAL IMPORTS |
18.250 |
37.768 |
3.644 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
65.33 |
26.23 |
30.41 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
Net Profit Margin (PAT/Sales) |
(%) |
15.53 |
7.68 |
9.92 |
|
|
|
|
|
|
|
Operating Profit Margin (PBITD/Sales) |
(%) |
28.24 |
18.97 |
18.91 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
35.27 |
14.99 |
14.41 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.24 |
0.12 |
0.11 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.18 |
0.20 |
0.20 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.22 |
0.94 |
0.74 |
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 |
205.892 |
205.892 |
206.164 |
|
Reserves & Surplus |
6328.828 |
6440.245 |
7471.219 |
|
Net
worth |
6534.720 |
6646.137 |
7677.383 |
|
|
|
|
|
|
long-term borrowings |
0.000 |
510.500 |
547.384 |
|
Short term borrowings |
1306.145 |
803.183 |
850.000 |
|
Total
borrowings |
1306.145 |
1313.683 |
1397.384 |
|
Debt/Equity
ratio |
0.200 |
0.198 |
0.182 |
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 |
6313.501 |
7034.139 |
8663.509 |
|
|
|
11.414 |
23.164 |
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 |
6313.501 |
7034.139 |
8663.509 |
|
Profit |
626.151 |
540.113 |
1345.553 |
|
|
9.92% |
7.68% |
15.53% |
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 |
Yes |
|
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 |
Yes |
|
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 |
No |
|
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 |
Yes |
Note : Registered
office of the company has been shifted from In Center, 48/50 MIDC, 12th
road, Andheri (east) Mumbai-400093, Maharashtra, India to the present address
w.e.f.01.06.2009
|
LITIGATION DETAILS |
|||||||
|
Bench:- Bombay |
|||||||
|
Lodging No. : |
ITXAL/1784/2013 |
Failing Date:- |
21/10/2013 |
Reg. No.:- |
ITXA/2398/2013 |
Reg. Date:- |
18/12/2013 |
|
Petitioner:- |
THE COMMISSIONER OF INCOME TAX |
Respondent:- |
HINDUJA GLOBAL SOLUTIONS LIMITED |
||||
|
Petn. Adv:- |
SHEHNAZ (SHEROO) VISPY BHARUCHA |
|
|
||||
|
District:- |
MUMBAI |
||||||
|
Bench:- |
DIVISION |
Category:- |
TAX APPEALS |
||||
|
Status:- |
Pre-Admitted |
Stage:- |
|||||
|
Last Date:- |
09.01.2014 |
||||||
|
Last Coram:- |
ACCORDING TO SITTING LIST ACCORDING TO SITTING LIST |
||||||
|
|
|
||||||
|
Act. : |
Income Tax Act,1961 |
Under Section 260A |
|||||
UNSECURED LOAN
Rs.
In Millions
|
Particular |
As
on 31.03.2014 |
As
on 31.03.2013 |
|
Short–term
borrowings |
|
|
|
Tem loan from bank |
100.000 |
0.000 |
|
Other loans and advances from Banks towards: |
|
|
|
– Packing Credit Facilities |
0.000 |
0.000 |
|
– Bill Discounting Facilities |
0.000 |
0.000 |
|
– Commercial Paper (Maximum amount outstanding during the year Rs.750.000 Millions) |
750.000 |
750.000 |
|
Total |
850.000 |
750.000 |
|
|
|
|
GENERAL INFORMATION
Subject is engaged in Business Process Management. HGS with its subsidiaries offer voice and non–voice based services such as contact center solutions and back office transaction processing across North America, Europe and Asia. HGS is a public limited company, listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) in India.
REVIEW OF FINANCIALS
On a Standalone basis (for India and overseas branch offices), Operating Income was Rs.8663.500 millions in FY’ 14,an increase of 23.2% over the Operating Income of Rs.7034.100 millions in FY’ 13. EBITDA increased by 47.5% from Rs.1212.200 millions in FY’13 to Rs.1788.400 millions in FY’14. PAT fell by 149.1% from Rs.540.113 millions in FY’13 to Rs.1345.500 millions in FY’14.
Key highlights for
the year were:
- Growth of consolidated revenues by 26.3%
- Opening of 5 new centers at – Princeton (US),
Barrie (Canada), Bengaluru SEZ (India) and 2 centers in Alabang (Philippines); Total number of centers
now stand at 58
- Employee headcount at 26,036 (Previous
Year-end 23,100);
- Addition of 119 new customers during the year
including addition of 105 customers from Payroll business. As of March 31,
2014, the Company has 139 clients (excluding the payroll processing
clients);
- As of March 31, 2014, the Company had a Net
Worth of Rs.14520.600 million translating into a Book Value of Rs.704.32
per share.
BUSINESS REVIEW
Global ITES Industry
Overview
The global
economic environment remained volatile and uncertain during the last year.
Despite challenges arising
from this
volatility, the global IT-BPM industry continued its growth trajectory, driven
by the increasing acceptance
of outsourcing
services by corporates. In addition to private companies, many governments have
now started to outsource services for the first time to manage costs. Further,
with technological advancement, the trend for outsourcing has been gradually
shifting from traditional services to extended services. Service providers are
now focused on improving customer experience, managing risks and improving
efficiencies with the use of Social Media, Mobility, Analytics and Cloud
Computing (SMAC).
The industry is
also experiencing an increase in hybrid service offerings from providers. These
offerings enable customers to customize and split processes into in-house and
outsourcing activities. In this model, the provider benefits from access to
client database platforms and the ability to access data simultaneously
alongside its client. Gartner expects that by 2017, around 75% of the BPM
demand will be achieved through hybrid offerings, as clients gradually become
accustomed to the latest enabled technologies such as cloud computing.
Gartner expects
worldwide spend for BPM services to grow from US$140.1 billion in 2012 to
US$186.5 billion in 2017, a CAGR of 5.9%. There is a significant difference in
the expected growth rates of Business Process as a Service (BPaaS) and the
traditional BPM.
BPaaS isexpected
to grow at three times the growth rate of the traditional BPM services. During
2013, Gartner estimated BPaaS revenues to have accounted for 22% of the total
BPM spend.
Indian ITES Industry
Overview
For FY ‘14,
NASSCOM projected that Indian IT-BPM exports will grow by 13% to reach US$86
billion while domestic annual revenue will touch Rs.1150 billion, a YoY
increase of 10%.
During the year,
technology and related sectors benefitted from vertical and geographic market
expansion, new
customer segments,
and a wider spectrum of the services and solutions being offered. For FY ‘15,
NASSCOM
expects export
revenues to grow in the range of 13% to 15% and domestic market to grow between
9% to 12%.
The sustained
focus of the Indian BPM industry on providing end-to-end transformational
services with a customer-centric approach is expected to take the industry to US$50
billion in revenue by 2020 from the current US$21 billion. India is also
expected to emerge as an effective center for the global BPM industry by
implementing new generation technologies such as SMAC, which will drive demand
for specialized services.
Performance
During FY ‘14,
Operating Income of the Company grew by around 26.3%, displaying strong
financial performance, high growth and improved margins. This strong growth was
driven by increase in volumes from existing customers and new client additions.
Of the total
growth, around 1.6% was due to full yearimpact of EBOS acquisition. The balance
growth was due to organic growth and variation in the exchange rate.
Geographies such as the Philippines, North America, Canada and India
experienced strong volume growth.
The significant
growth in EBITDA and margin improvement was due to better capacity utilization
levels at delivery centers across all geographies coupled with various
performance optimization initiatives undertaken during the year. Growth in PBT
was primarily due to lower interest expense as a result of debt repayment and
better working capital management.
MANAGEMENT DISCUSSION
AND ANALYSIS REPORT
Overview
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 Generally Accepted Accounting Principles (GAAP) in India. Our
Management accepts responsibility for the integrity and objectivity of these
financial statements, as well as for 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 Overview
The global IT-BPM
industry continued its growth trajectory despite the various economic
challenges within key markets. As the sector has grown at a steady pace
recently, the trend for outsourcing has been gradually shifting from
traditional services to extended services and the use of enhanced technologies.
Service providers are focused on improving customer experiences, managing risks
and improving efficiencies with the use of social, mobility, analytics and
cloud (SMAC) technologies. This changing trend will require BPM providers to
focus on result-oriented business transformation with the use of emerging
technologies. Further, it will also enable clients to understand the
transformation in a specific process and rapidly adjust with the support of
outsourcing providers.
Worldwide BPM
spending in 2013 was US$ 168 billion, an increase of 5.7% compared 2012.
Domestic annual revenues for the Indian IT-BPM industry of r 1,150 billion led
to a growth of around 10%. Export revenues also experienced significant growth
of 13% to reach annual revenues of US$ 86 billion. During the year, technology
and related sectors benefitted from vertical and geographic market expansion,
new customer segments and a wider spectrum of services and solutions being
offered (Source: NASSCOM). Over the past few years, Philippines has emerged as
one of the preferred delivery locations for BPM services, primarily catering to
developed economies such as the US, the UK, Australia and New Zealand.
According to the Contact Center Association of the Philippines (CCAP), the
Philippines BPM industry generated US$ 10 billion during FY’13, an increase of
around 15% compared to the previous year. The availability of skilled human
resources at relatively lower cost and supportive government policies have
helped Philippines BPM industry to grow significantly, and become a favored
delivery center location.
The key trends in
the industry verticals where Hinduja Global Solutions (HGS) operates are
detailed below.
Business Overview
Hinduja Global
Solutions (HGS), part of the multi-billion dollar Hinduja Group, is a world leader
in customer relationship and business process management. The Company provides
outsourcing solutions that include back office transaction processing services
& management and contact center services to its global clients including
several Fortune 500 companies. HGS currently serves 139 clients (excluding
payroll processing clients) through its 58 Global Delivery Centers and employs
over 26,000 people worldwide. The Company has presence in Canada, France,
Germany, India, Italy, Jamaica, Philippines, the Netherlands, the UAE, the UK
and the US.
HGS delivers
outsourcing expertise and best in class practices based on its longstanding
experience and client partnerships. The Company designs and deploys customized
solutions on behalf of its clients across a wide range of industry verticals.
Our client partners benefit from high quality services, optimized process costs
and a competitive edge. As the industry evolves from transaction based services
to a transformation based model, HGS is well placed to capitalize on market
opportunities such as CRM, HRO, analytics, social technology, cloud and
digitization.
Business Outlook
Despite the
prevailing uncertain global economic scenario, the BPM industry has continued
its growth trajectory. A greater acceptance of outsourcing by corporates has
enabled the industry to expand globally. In addition to private companies, many
governments have now started to outsource services for the first time as they
have to manage public sector headcount. This trend and increasing acceptability
of BPM service providers is expected to drive future growth.
The industry is
also experiencing an increase in hybrid service offerings from providers. These
offerings enable customers to customize and split processes into in-house and
outsourcing activities. In this model, the provider benefits from access to
client’s database platforms and the ability to access data simultaneously
alongside their client. Gartner expects that by 2017, around 75% of the BPM
demand will be achieved through hybrid offerings as clients gradually become accustomed to the
latest enabled technologies such as cloud computing.
The global BPM
market continues to deliver strong growth with Gartner expecting the industry
to grow at 5.4% CAGR from 2012–17. There is significant difference in the
expected growth rates of Business Process as a Service (BPaaS) and traditional
BPM. BPaaS is expected to grow at three times the growth rate of traditional
BPM services.
During 2013,
Gartner estimated BPaaS revenues to have accounted for 22% of total BPM spend.
In FY’14, IT-BPM exports from India reached US$ 86 billion, implying a growth
rate of around 13%. Domestic revenues delivered growth of approximately 10% to
reach a 1,150 billion. During FY’15, NASSCOM expects export revenues to grow at
13-15% and a domestic market growth of 9-12%.
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number (SRN) |
|
1 |
10375324 |
15/11/2012 * |
750,000,000.00 |
YES BANK LIMITED |
9TH FLOOR, NEHRU CENTRE, DISCOVERY OF INDIA,, DR. |
B62032693 |
|
2 |
10315760 |
03/11/2011 |
730,000,000.00 |
BARCLAYS BANK PLC |
1st Floor, Paramanna Layout, B.H. Road Nelamangala, Bangalore,
Karnataka - 562123, INDIA |
B24596835 |
|
3 |
10204473 |
27/01/2011 * |
250,000,000.00 |
HDFC BANK LIMITED |
HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, Maharashtra
- 400013, INDIA |
B05313333 |
|
4 |
10120212 |
24/09/2013 * |
1,965,000,000.00 |
AXIS BANK LIMITED |
CORPORATE BANKING BRANCH, INDIAN EXPRESS BUILDING, 2ND FLOOR, NO.1,
QUEEN'S ROAD, BANGALORE, Karna |
B87419891 |
* Date of charge modification
FIXED ASSETS
- Computer Software
- Commercial Rights
- Land
- Leasehold Land
- Building
- Leasehold Building
- Leasehold Improvements
- Office Equipments
- Computers
- Furniture and Fixtures
- Vehicles
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.63.44 |
|
|
1 |
Rs.95.98 |
|
Euro |
1 |
Rs.75.27 |
INFORMATION DETAILS
|
Information
Gathered by : |
SVA |
|
|
|
|
Analysis Done by
: |
RSM |
|
|
|
|
Report Prepared
by : |
JYTK |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--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 |
|
63 |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is calculated
from a composite of weighted scores obtained from each of the major sections of
this report. The assessed factors and their relative weights (as indicated
through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment record
(10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.