MIRA INFORM REPORT
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Report No. : |
304898 |
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Report Date : |
27.01.2015 |
IDENTIFICATION DETAILS
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Name : |
SONATA INFORMATION TECHNOLOGY LIMITED |
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Registered
Office : |
No.208, T.V. Industrial Estate, K. Ahire Marg, Worli, Mumbai – 400030,
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Country : |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
29.06.2000 |
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Com. Reg. No.: |
11-127476 |
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Capital
Investment / Paid-up Capital : |
Rs.33.754 Millions |
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CIN No.: [Company Identification
No.] |
U72300MH2000PLC127476 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
Not Available |
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PAN No.: [Permanent Account No.] |
AAECS8734J |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business
: |
Subject is engaged in the business of Hardware/Software product and licenses including related services. |
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No. of Employees
: |
Information declined by the management. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba (53) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Exist |
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Comments : |
Subject is a part of Sonata Group. It is an established company having
satisfactory track. As per registrar of companies the date of balance sheet i.e. financial
filed is shown as 31st March, 2014 but the documents related to
the financials for the year 2014 are not available from any sources. As per available financial of 2013, profitability of the company seems
to be low. However, general financial position of the company seems to be
decent. Trade relations are fair. Business is active. Payment terms are
reported to be usually correct. In view of strong holding, 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.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Long term rating: “A-” |
|
Rating Explanation |
Have adequate degree of safety and carry low
credit risk. |
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Date |
15.09.2014 |
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Rating Agency Name |
CRISIL |
|
Rating |
Short term rating: “A2+” |
|
Rating Explanation |
Have strong degree of safety and low credit
risk. |
|
Date |
15.09.2014 |
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 DENIED
Management Non Co-operative (91-22-24943055)
LOCATIONS
|
Registered/ Branch Office 1 : |
No.208, T.V. Industrial Estate, K. Ahire Marg, Worli, Mumbai – 400030,
Maharashtra, India |
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Tel. No.: |
91-22-24943055/ 24923991 |
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Fax No.: |
91-22-24396973 |
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E-Mail : |
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Website : |
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Location : |
Owned |
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Corporate/ Branch Office 2 : |
APS Trust Building, Bull Temple Road, N. R. Colony, Bangalore –
560019, Karnataka, India |
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Tel. No.: |
91-80-30971999 |
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Fax No.: |
91-80-26610972 |
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E-Mail : |
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Branch Office 3 : |
New Delhi 24, I Floor, Okhla, Industrial Estate, Phase – III, New Delhi -
110020, India |
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Tel. No.: |
91-11-26932411-16/ 47779777 |
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Fax No.: |
91-11-26932420/ 47779799 |
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E-Mail : |
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Branch Office 4 : |
Hyderabad No.1-10-176, Begumpet Main Road, Opposite Hyd. Public School,
Hyderabad - 500016, Andhra Pradesh, India
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Tel. No.: |
91-40-27782000/ 27764801/ 39813899 |
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Fax No.: |
91-40-27764831 |
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E-Mail : |
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Branch Office 5 : |
Kolkata Suite # N-215, Ideal Plaza, 11/1, Sarat Bose Road, Kolkata - 700020,
West Bengal, India |
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Tel. No.: |
91-33-22891202-04 |
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Fax No.: |
91-33-22891207 |
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E-Mail : |
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Branch Office 6 : |
Chennai C, I Floor, Ali Towers, No.55, Greames Road, Chennai - 600006,
Tamilnadu, India |
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Tel. No.: |
91-44-28290552/ 28291707 |
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Fax No.: |
91-44-28291708 |
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E-Mail : |
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Branch Office 7 : |
Pune 127/1, Flat No.2, Above Vidya Sahakari Bank, Next to Hotel Sarjaa,
Sanewadi, Aundh, Pune - 411007, Maharashtra, India |
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Tel. No.: |
91-20-25887045/ 25883406 |
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Fax No.: |
91-20-25883406 |
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E-Mail : |
DIRECTORS
AS ON 11.08.2014
|
Name : |
Mr. Srikar Palem Reddy |
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Designation : |
Director |
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Address : |
306, Raheja Mansion, 13, Milton Street Cooke Town, Bangalore – 560005, Karnataka, India |
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Date of Birth/Age : |
30.05.1958 |
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Qualification: |
Degree in Engineering (Electrical) and PGDBM (IIM) |
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Date of Appointment : |
29.06.2000 |
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PAN No.: |
AAJPR9128H |
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DIN No.: |
00001401 |
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Name : |
Mr. Brijendra Kumar Syngal |
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Designation : |
Director |
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Address : |
218, Mandakini Enclave, Alaknanda, New Delhi – 110019, India |
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Date of Birth/Age : |
14.06.1940 |
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Qualification: |
B. Tech (Hons.) and M. Tech degree from IIT Kharagpur, C. En g (UK) , M.I.E.E.(UK), Sr. M.I.E.E.E. (USA) and F.I.E.T.E (India) |
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Date of Appointment : |
17.01.2005 |
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Voter ID No.: |
NEC1379353 |
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DIN No.: |
00002395 |
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Name : |
Mr. Sujit Mohanty |
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Designation : |
Whole-time Director |
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Address : |
Flat # E 503, Fifth Floor, Block E, Sterling Terraces, No.3, 100 Ft Ring Road, Banashankari IIIrd Stage, Bangalore – 560085, Karnataka, India |
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Date of Birth/Age : |
22.12.1966 |
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Qualification: |
Masters Degree in Business Administration from XIMB |
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Date of Appointment : |
29.06.2000 |
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PAN No.: |
AAIPM7964R |
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DIN No.: |
00001404 |
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Name : |
Mr. Narayanan Venkataraman |
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Designation : |
Director |
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Address : |
D-902, Brigade Millennium, Laburnum Block, J.P. Nagar, 7th Phase, Puttenahalli, Bangalore – 560078, Karnataka, India |
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Date of Birth/Age : |
29.04.1971 |
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Qualification: |
CA |
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Date of Appointment : |
09.07.2012 |
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DIN No.: |
01856347 |
KEY EXECUTIVES
|
Name : |
Ms. Feroza Noshir Byramji |
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Designation : |
Company Secretary |
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Address : |
#301, Hilla Towers, Dr. S. S. Rao Road, Lalbaug, Mumbai – 400012,
Maharashtra, India |
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Date of Birth/Age : |
30.12.1963 |
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Date of Appointment : |
11.10.2003 |
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PAN No.: |
AHQPB6905N |
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Voter ID No.: |
SOK1626829 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 11.08.2014
|
Name of
Shareholders |
|
No of
Shares |
|
B. Ramaswamy |
|
100 |
|
P. Srikar Reddy |
|
100 |
|
Sujit Mohanty |
|
100 |
|
P V S N Raju |
|
100 |
|
Sonata Software Limited, India |
|
3374694 |
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R. Sathyanarayana |
|
100 |
|
Mohan Muthuraj A R |
|
100 |
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Priya Manoj Jaswani |
|
100 |
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Total |
|
3375394 |
AS ON 11.08.2014
Equity Shares Break – up
|
Category |
|
Percentage |
|
Bodies corporate |
|
99.98 |
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Directors or relatives of directors |
|
0.02 |
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Total
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|
100.00 |
BUSINESS DETAILS
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Line of Business : |
Subject is engaged in the business of Hardware/Software product and licenses including related services. |
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Products : |
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Exports : |
-- |
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Imports : |
-- |
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Terms : |
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Selling : |
Cash and Credit |
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Purchasing : |
Cash and Credit |
GENERAL INFORMATION
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Suppliers : |
-- |
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Customers : |
End Users |
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No. of Employees : |
Information declined by the management. |
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Bankers : |
· ING Vysya Bank, 22 Ground Floor, ING Vysya House, M.G. Road, Bangalore – 560001, Karnataka, India Tel. No.: 91-80-25595225 · Citi Bank N.A, Prestige Meridian 2, 506-507, Level 5, 30 M G Road, Bangalore – 560001, Karnataka, India ·
Axis Bank Limited, Esquire Centre, No.9, M. G.
Road, Bangalore – 560001, Karnataka, Karnataka, India · Standard Chartered Bank, No.112, Serenity, Koramangala Industrial Area, 5th Block, Koramangala, Bangalore - 560095, Karnataka, India |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Deloitte Haskins and Sells Chartered Accountants |
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Address : |
Deloitte Centre, Anchorage II, 100/2 Richmond Road, Bangalore - 560025, Karnataka, India |
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PAN No.: |
AACFD3771D |
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Holding Company: |
Sonata Software Limited, India CIN No.: L72200MH1994PLC082110 |
CAPITAL STRUCTURE
AS ON 11.08.2014
Authorised Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
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|
|
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|
10000000 |
Equity Shares |
Rs.10/- each |
Rs.100.000 Millions |
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Issued, Subscribed & Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
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|
3375394 |
Equity Shares |
Rs.10/- each |
Rs.33.754
Millions |
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FINANCIAL DATA
[All figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)
Shareholders' Funds |
|
|
|
|
(a) Share Capital |
33.754 |
33.754 |
33.754 |
|
(b) Reserves & Surplus |
409.324 |
314.922 |
412.307 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
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|
|
|
|
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(2) Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
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Total
Shareholders’ Funds (1) + (2) |
443.078 |
348.676 |
446.061 |
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|
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(3) Non-Current
Liabilities |
|
|
|
|
(a) Long-term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long term
liabilities |
0.000 |
0.000 |
0.000 |
|
(d) Long-term
provisions |
1.557 |
22.304 |
1.047 |
|
Total Non-current
Liabilities (3) |
1.557 |
22.304 |
1.047 |
|
|
|
|
|
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(4) Current Liabilities |
|
|
|
|
(a) Short term
borrowings |
280.000 |
486.838 |
501.647 |
|
(b) Trade
payables |
1306.153 |
1341.365
|
934.337
|
|
(c) Other
current liabilities |
141.899 |
149.612
|
136.952
|
|
(d) Short-term
provisions |
0.492 |
0.488 |
0.447 |
|
Total Current
Liabilities (4) |
1728.544 |
1978.303 |
1573.383 |
|
|
|
|
|
|
TOTAL |
2173.179 |
2349.283 |
2020.491 |
|
|
|
|
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II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i)
Tangible assets |
5.423 |
4.089 |
2.489 |
|
(ii)
Intangible Assets |
0.019 |
0.064 |
0.109 |
|
(iii)
Capital work-in-progress |
0.000 |
0.000 |
1.012 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
0.000 |
0.000 |
0.000 |
|
(c) Deferred tax assets (net) |
9.874 |
6.876 |
4.629 |
|
(d) Long-term Loan and Advances |
989.688 |
1003.442 |
4.023 |
|
(e) Other
Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current
Assets |
1005.004 |
1014.471 |
12.262 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
7.920 |
336.530
|
22.054
|
|
(c) Trade
receivables |
818.748 |
736.116
|
900.173
|
|
(d) Cash
and cash equivalents |
102.142 |
99.659
|
103.958
|
|
(e)
Short-term loans and advances |
222.406 |
151.533 |
963.024 |
|
(f) Other
current assets |
16.959 |
10.974
|
19.020
|
|
Total
Current Assets |
1168.175 |
1334.812 |
2008.229 |
|
|
|
|
|
|
TOTAL |
2173.179 |
2349.283 |
2020.491 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations |
9777.346 |
7935.167 |
6021.476 |
|
|
|
Other Income |
11.264 |
71.247 |
39.171 |
|
|
|
TOTAL (A) |
9788.610 |
8006.414 |
6060.647 |
|
|
|
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|
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|
Less |
EXPENSES |
|
|
|
|
|
|
|
Purchases of stock-in-trade |
8595.599 |
7691.606 |
5286.283 |
|
|
|
Employee benefit expenses |
345.392 |
271.960 |
215.584 |
|
|
|
Other expenses |
295.703 |
327.296 |
327.614 |
|
|
|
(increase) / decrease in inventories |
328.610 |
(314.476) |
55.232 |
|
|
|
TOTAL (B) |
9565.304 |
7976.386 |
5884.713 |
|
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
223.306 |
30.028 |
175.934 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
118.788 |
125.213 |
50.399 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
104.518 |
(95.185) |
125.535 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1.710 |
1.094 |
1.595 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE
TAX (E-F) (G) |
102.808 |
(96.279) |
123.940 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
8.406 |
1.105 |
39.122 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX (G-H) (I) |
94.402 |
(97.384) |
84.818 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
288.670 |
386.054 |
301.236 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
383.072 |
288.670 |
386.054 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Software Services Rendered |
56.018 |
27.872 |
9.986 |
|
|
|
Sales Traded Products |
317.358 |
207.413 |
122.663 |
|
|
TOTAL EARNINGS |
373.376 |
235.285 |
132.649 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Traded Goods |
6406.044 |
3718.562 |
3442.352 |
|
|
TOTAL IMPORTS |
6406.044 |
3718.562 |
3442.352 |
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss)
Per Share (Rs.) |
27.97 |
(28.85) |
25.13 |
|
|
Particulars |
|
|
31.03.2014 |
|
Sales Turnover (Approximately) |
|
|
19000.000 |
The above information has been parted by Ms. Feroza Noshir Byramji.
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
0.96 |
(1.22) |
1.40 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
1.05 |
(1.21) |
2.06 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
4.75 |
(4.11) |
6.15 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.23 |
(0.28) |
0.28 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.63 |
1.40 |
1.12 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.68 |
0.67 |
1.28 |
FINANCIAL ANALYSIS
[All figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR in Mlns.) |
(INR in Mlns.) |
(INR in Mlns.) |
|
Share Capital |
33.754 |
33.754 |
33.754 |
|
Reserves & Surplus |
412.307 |
314.922 |
409.324 |
|
Net worth |
446.061 |
348.676 |
443.078 |
|
|
|
|
|
|
long-term borrowings |
0.000 |
0.000 |
0.000 |
|
Short term borrowings |
501.647 |
486.838 |
280.000 |
|
Total borrowings |
501.647 |
486.838 |
280.000 |
|
Debt/Equity ratio |
1.125 |
1.396 |
0.632 |
YEAR-ON-YEAR GROWTH
|
Year on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR in Mlns) |
(INR in Mlns) |
(INR in Mlns) |
|
Revenue from Operations |
6,021.476 |
7,935.167 |
9,777.346 |
|
|
|
31.781 |
23.215 |
NET PROFIT MARGIN
|
Net Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR in Mlns) |
(INR in Mlns) |
(INR in Mlns) |
|
Revenue from Operations |
6,021.476 |
7,935.167 |
9,777.346 |
|
Profit |
84.818 |
(97.384) |
94.402 |
|
|
1.41% |
(1.23%) |
0.97% |
LOCAL AGENCY FURTHER INFORMATION
CURRENT MATURITY
OF LONG TERM BORROWINGS DETAIL:
|
Particulars |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
(Rs. In Millions) |
||
|
Current maturities of long-term debt |
NA |
0.000 |
0.000 |
|
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 |
Yes |
|
10] |
Designation of contact person |
Yes |
|
11] |
Turnover of firm for last four 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 |
Yes |
|
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 |
No |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director, if
available |
Yes |
|
33] |
Voter ID No of Proprietor/Partner/Director,
if available |
Yes |
|
34] |
External Agency Rating, if available |
Yes |
LITIGATION DETAILS
|
HIGH COURT OF
BOMBAY |
|
CASE DETAILS BENCH: BOMBAY |
|
Lodging No:
ITXAL/1121/2013 Filing Date:
12/07/2013 Reg. No.:
ITXA/2466/2013 Reg. Date: 24/12/2013 |
|
Petitioner: COMMISSIONER OF INCOME TAX Respondent: M/S. SONATA
INFORMATION Petn. Adv : SHRI. A.R. MALHOTRA TECHNOLOGY
LIMITED District: MUMBAI |
|
Bench: DIVISION Status: Pre-Admission
Category: TAX APPEALS Next Date: 17/01/2014 Stage:
FOR REJECTION [ORIGINAL SIDE MATTERS] Coram: ACCORDING TO SITTING LIST ACCORDING TO
SITTING LIST |
|
Act: Income Tax Act, 1961 UNDER SECTION:260 A |
UNSECURED LOANS
|
PARTICULAR |
31.03.2013 (Rs. in Millions) |
31.03.2012 (Rs. in Millions) |
|
Short Term
Borrowings |
|
|
|
Inter-corporate borrowings |
280.000 |
180.000 |
|
|
|
|
|
Total |
280.000 |
180.000 |
BUSINESS REVIEW
Their Company has posted encouraging results for the year that ended on March 31, 2013.
Despite unfavorable economic conditions and a slowing growth rate in the Indian economy, their Company has reported all-time high revenues showing a growth 22% on a year over year basis. Their Company has returned to profits during the year and believes that the base for future has been set. This turnaround in results and performance was possible through focusing on customer quality, tighter credit review processes and the re-alignment and changing of the Companys product mix.
Their Companys business has two broad lines:
A. PRODUCTS
Their Companys strategy of focusing on key customers and providing value added products and services to them have paid dividends. The restructuring of the business that was undertaken during the last quarter of the last year has shown favourably on the results. Their Company is focussing new business lines in the areas of Analytics, Cloud, Social Media to strengthen its existing portfolio of products. They continue to focus and build on the strategy of creating more value to their customers and principals and at the same time bring advanced technology products to the Indian market.
B. SERVICES
During the year, their Company has shown strong growth across its service offerings. Their Company’s strategy and focus of addressing select Enterprise class clients continued to pay rich dividends both in terms of revenues as well as profitability. During the year, the group restructured and reinvented itself to focus on a set of identified enterprise clients. As a result, relationship with enterprise clients has become deeper and engagements span across multiple technology and service offerings. As a result a significant percentage of revenues come from repeat business. During the year, their Company was able to build a million dollar Indian client.
Detailed management review and performance summary during the year on each of the above business heads has been given elsewhere in the Annual Report of 2012-13.
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE CREATION/MODIFICATION |
CHARGE AMOUNT SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST NUMBER (SRN) |
|
1 |
10450505 |
26/09/2013 |
2,900,000,000.00 |
STANDARD CHARTERED BANK |
NO.112, SERENITY,
KORAMANGALA INDUSTRIAL AREA, 5T |
B85544542 |
|
2 |
10381239 |
26/09/2012 |
2,550,000,000.00 |
ING VYSYA BANK LIMITED |
22,GROUND FLOOR,ING VYSYA HOUSE, M.G.ROAD, BANGALORE - 560001, KARNATAKA, INDIA |
B59968503 |
|
3 |
10222449 |
28/06/2013 * |
600,000,000.00 |
ING VYSYA BANK LIMITED |
22,GROUND FLOOR,ING VYSYA HOUSE, M.G.ROAD, BANGALORE - 560001, KARNATAKA, INDIA |
B79248928 |
|
4 |
80052004 |
30/05/2011 * |
170,000,000.00 |
STANDARD CHARTERED BANK |
RAHEJA TOWERS, SIXTH FLOOR, NO. 26 - 27, M. G. ROAD, BANGALORE - 560001, KARNATAKA, INDIA |
B16120180 |
|
5 |
90145529 |
24/06/2013 * |
1,130,000,000.00 |
AXIS BANK LIMITED |
CORPORATE BANKING
BRANCH, EXPRESS BUILDING, SECON |
B79105995 |
|
6 |
90143330 |
30/03/2004 * |
70,000,000.00 |
SYNDICATE BANK |
INDUSTRIAL FINANCE
BRANCH; MANIPAL CENTRE, NORTH |
- |
|
7 |
90143317 |
20/03/2001 |
1,500,000.00 |
GLOBAL TRUST BANK LIMITED |
BANGALORE BRANCH, M.G. ROAD, BANGALORE, KARNATAKA, INDIA |
- |
* Date of charge modification
CONTINGENT
LIABILITIES:
|
PARTICULARS |
31.03.2013 (Rs. In Millions) |
31.03.2012 (Rs. In Millions) |
|
a) Disputed demand of Karnataka Sales Tax |
0.294 |
0.294 |
|
b) Disputed demand of Service Tax The demand for payment of service tax on repair service relating to software is based on Board circular of the department issued with retrospective effect. The company has filed appeal before CESTAT and has got stay on recovery until disposal of appeal. It is confident of getting favourable outcome based on legal precedents which supports its stand. |
21.353 |
0.000 |
|
c) Disputed demands of Income-Tax |
2382.790 |
3076.555 |
Details of disputed demand of Income-Tax by issue and by year are as below:
a. Disallowance of Inter-Company service charges and costs for deputation of personnel.
Sonata Software Limited, the holding company charges the Company for certain support services rendered and for the cost of project personnel deputed. These support services and costs for deputation are being disallowed by the Income-Tax department while computing taxable profits of the Company. The Company has challenged these disallowances and consequent demands at appellate levels and is confident of a favorable outcome.
Details of Demands and Forums where they are pending are:
I. Rs.320.046 Millions ((Previous year Rs. 267.548 Millions) for the financial years 2001-2002, 2003-2004, 2004-2005, 2005-06 and 2007-08. The Company has received favorable orders from the Income-Tax Appellate Tribunal The Income-Tax department has preferred an appeal to the Honorable High Court of Mumbai.
II. Rs.44.659 Millions (Previous year Rs. 44.659 Millions) for the financial year 2002-2003. The Income-Tax departments appeal to the Honorable High Court of Mumbai was time-barred and hence dismissed. The Income-Tax department had preferred a Special Leave Petition on the said dismissal to the Honorable Supreme Court of India which has referred the petition back to the Honorable High Court of Mumbai with a request to reconsider its
decision.
III. Rs.91.884 Millions (Previous year Rs. Nil) for the financial year 2009-2010. The Company has preferred an appeal to Commissioner of Income Tax (Appeals) and based on the favorable orders in the previous years from the Income-Tax Appellate Tribunal the Company is confident of a favorable outcome.
During the year favorable orders were received from Income Tax Appellate Tribunal for financial year 2006-07 and Commissioner of Income Tax (Appeals) for financial year 2008-09 which were disclosed as contingent liability in the previous year of 181.798 Millions. The Department has filed an appeal before High Court of Mumbai for financial year 2006-07 which is yet to be admitted.
b. Withholding tax demand.
The Company is engaged in the business of buying and selling packaged software in India. The Income-Tax department has been contending that amounts paid by the Company for buying the software products is in the nature of royalty and hence had to withhold Income-Tax on the same as per the Income-Tax Act, 1961, and has raised a demands of Rs.218.240 Millions (Previous year Rs.218.240 Millions) for the financial years 2000 -2001 and 2001-2002 . The Company Rs. contention has been that the payments were made for purchase of goods and hence was under no obligation to withhold Income-Tax on the same. The Company had received favorable orders from the Income-Tax Appellate Tribunal which were during the year reversed by the Honorable High Court of Karnataka. The Company has preferred a Special Leave Petition Appeal on the said order to the Honorable Supreme Court of India, which has been admitted. However, for these years one of the principal suppliers of software to the Company has paid taxes of 128,598,266 out of the above demand.
c. Disallowance of payments made for purchase of software on which Income-Tax was not withheld.
Payment in the nature of Royalty on which Income-Tax have not been deducted at source are subject to disallowance as an expense as per Sections 40(a)(i) and 40(a)(ia) while computing taxable profits of the Company. Consequent to issue described in (b) above, the Income-Tax department, holding payments for purchase of software as Royalty disallowed the same while computing taxable profits of the Company.
The Honorable High Court of Karnataka has given an unfavorable decision on the issue covered in (b) above. However, the said demands which are consequential and penal in nature do not arise automatically and there are multiple legal precedents in favor of the Company. Based on legal opinions and feedback from its legal counsels, the Company is confident of a favorable outcome on these consequential demands.
Details of demands raised and the Forums where they are pending are:
I. 1707.961 Millions (Previous year Rs.1707.961 Millions) of tax demand for the financial year 2001-2002, 2002-2003 and 2007-08. The Company has received a favorable order from the Income-Tax Appellate Tribunal. The Income-Tax department has preferred an appeal to the Honorable High Court of Mumbai.
II. During the year favorable orders were received from Income Tax Appellate Tribunal pertaining to the financial year 2006-07 which were disclosed as contingent liability in the previous year of Rs.656.349 Millions. The Department has filed an appeal before High Court of Mumbai which is yet to be admitted.
FIXED ASSETS
Tangible Assets
· Plant and Equipment
· Furniture and Fixtures
· Office Equipment
· Other Equipments
· Leasehold Improvements
Intangible Assets
· Computer Software
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources including
but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No 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.61.50 |
|
|
1 |
Rs.92.16 |
|
Euro |
1 |
Rs.69.62 |
INFORMATION DETAILS
|
Information Gathered
by : |
PRT |
|
|
|
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
NKT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILITY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER
|
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
|
|
|
|
TOTAL |
|
53 |
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.