MIRA
INFORM REPORT
|
Report No. : |
305217 |
|
Report Date : |
29.01.2015 |
IDENTIFICATION DETAILS
|
Name : |
SMARTLINK NETWORK
SYSTEMS LIMITED |
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Registered
Office : |
L-7, Verna Industrial Estate, Verna, Salcete, |
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Country : |
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Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
31.03.1993 |
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Com. Reg. No.: |
24-001341 |
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Capital Investment
/ Paid-up Capital : |
Rs. 60.010 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L30007GA1993PLC001341 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
BLRD03177G |
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PAN No.: [Permanent Account No.] |
AAACD5159L |
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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 the business of developing, manufacturing, marketing, distributing and servicing of networking products. |
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No. of Employees
: |
387 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
B (33) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track record. The company has incurred a loss from its operations during 2014. However, trade relations are reported as fair. Business is active.
Payments are reported to be slow but correct. The company can be considered for business dealings with some
cautions. |
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
NOT AVAILABLE
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 BY
|
Name : |
Ms. Saroj |
|
Designation : |
Office Executive |
|
Contact No.: |
91-832-2885401 |
|
Date : |
24.01.2015 |
LOCATIONS
|
Registered Office/ Factory 1 : |
L-7, Verna Industrial Estate, Verna, Salcete, Goa – 403722, India |
|
Tel. No.: |
91-832-2885401 / 2885400 / 2885450/451 |
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Fax No.: |
91-832-2783395 |
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E-Mail : |
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Website : |
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Factory 2 : |
L-5, Verna Industrial Estate, Salcete, Goa - 403722, India
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Corporate Office : |
Smartlink House, Plot No. 5, Kurla-Bandra Complex Road, Off CST Road,
Santacruz (East), Mumbai – 400098, Maharashtra, India |
|
Tel. No.: |
91-22-30616666 |
|
Fax No.: |
91-22-26528914 |
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E-Mail : |
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Factory : |
L-5, Verna Industrial Estate, Salcete, Goa – 403772, India |
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Global Sales Office : |
Located At: · U.A.E. |
DIRECTORS
As on 31.03.2014
|
Name : |
Mr. Kamalaksha Rama Naik |
|
Designation : |
Executive Chairman |
|
Address : |
House No.A-1/A, Row House Lotus, Hermitage, Benaulin, South Goa-403
716, |
|
Date of Birth/Age : |
19.11.1947 |
|
Qualification : |
He holds a Post Graduate Degree in Industrial Engineering from Jhunjunwala College, Mumbai and a Diploma in Business Management from Jamnalal Bajaj Institute of Management, Mumbai. |
|
Experience : |
4 decades of experience in the networking industry. |
|
Date of Appointment : |
31.03.1993 |
|
|
|
|
Name : |
Jangoo Minoo Dalal |
|
Designation : |
Director |
|
Address : |
Flat No.8- IM 020 Lane, 113 Min Sen road, Taipei, Taiwan- Roc |
|
Date of Birth/Age : |
02.11.1965 |
|
Qualification : |
He holds a Bachelors Degree in Science and Master of Management Studies (MBA) with specialization in Marketing from Mumbai University. |
|
Experience : |
25 Years |
|
Date of Appointment : |
02.07.2007 |
|
|
|
|
Name : |
Mr. Pradeep Anant Rane |
|
Designation : |
Director |
|
Address : |
1502, Amberosia, Behind China Valley, Heranandani Gardens, Powai, Mumbai-400 076, Maharashtra, India |
|
Date of Birth/Age : |
07.01.1953 |
|
Experience: |
32 Years |
|
Date of Appointment : |
26.12.2006 |
|
|
|
|
Name : |
Mr. Pankaj Madhav Baliga |
|
Designation : |
Director |
|
Address : |
91, |
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Date of Birth/Age : |
18.10.1946 |
|
Qualification : |
Bachelors Degree in Engineering, NIT, Durgapur, Masters Degree in Business Administration, IIM, Ahmedabad and is a SPURS Fellow, Massachusetts Institute of Technology, U.S.A. |
|
Experience : |
36 Years |
|
Date of Appointment : |
22.12.2005 |
|
|
|
|
Name : |
Mr. Krishnanand Maruti Gaonkar |
|
Designation : |
Director |
|
Address : |
504, 505, |
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Date of Birth/Age : |
10.09.1952 |
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Qualification : |
Masters Degree in Science from UDC Mumbai |
|
Experience : |
30 Years |
|
Date of Appointment : |
24.05.2000 |
|
|
|
|
Name : |
Mr. Dattaraj Salgaocar |
|
Designation : |
Director |
|
Address : |
Hira Vihar House No.278, Chicalim, Marmugao - 403711, Goa, India |
|
Date of Birth/Age : |
23.05.1957 |
|
Qualification : |
Bachelors Degree in Production Engineering from VJTI, University of Mumbai and MBA (Finance) from Wharton Business School, University of Pennsylvania, USA |
|
Date of Appointment : |
17.05.2001 |
KEY EXECUTIVES
|
Name : |
Ms. Saroj |
|
Designation : |
Office Executive |
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|
|
|
Name : |
Bhushan Prabhu |
|
Designation : |
Chief Financial Officer |
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|
|
|
Name : |
K. G. Prabhu |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2014
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter
Group |
|
|
|
|
|
|
|
|
22350576 |
74.49 |
|
|
22350576 |
74.49 |
|
|
|
|
|
Total shareholding of Promoter and Promoter
Group (A) |
22350576 |
74.49 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
12709 |
0.04 |
|
|
12709 |
0.04 |
|
|
|
|
|
|
1287957 |
4.29 |
|
|
|
|
|
|
5235754 |
17.45 |
|
|
870960 |
2.90 |
|
|
246894 |
0.82 |
|
|
195598 |
0.65 |
|
|
51296 |
0.17 |
|
|
7641565 |
25.47 |
|
Total Public shareholding (B) |
7654274 |
25.51 |
|
Total (A)+(B) |
30004850 |
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) |
30004850 |
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 % |
||
|
1 |
Kamalaksha Rama Naik |
1,56,62,993 |
52.20 |
|
2 |
Arati Kamalaksha Naik |
30,13,528 |
10.04 |
|
3 |
Lakshana Amit Sharma |
18,30,841 |
6.10 |
|
4 |
Sudha Kamalaksha Naik |
15,00,243 |
5.00 |
|
5 |
Kamalaksha Rama Naik HUF |
3,42,971 |
1.14 |
|
|
Total |
2,23,50,576 |
74.49 |
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 % |
|
|
1 |
Zen Securities Limited |
410000 |
1.37 |
|
|
|
Total |
410000 |
1.37 |
|
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in the business of developing,
manufacturing, marketing, distributing and servicing of networking products. |
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Products : |
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Brand Names : |
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Agencies Held : |
-- |
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Exports : |
-- |
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Imports : |
-- |
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Terms : |
-- |
PRODUCTION STATUS: NOT AVAILABLE
GENERAL INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees : |
387 (Approximately) |
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Bankers : |
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Auditors : |
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Name : |
Deloitte Haskins and Sells LLP Chartered Accountants |
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Memberships : |
-- |
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Collaborators : |
-- |
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Related Party : |
Smartlink Middle East FZE |
CAPITAL STRUCTURE
As on 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
35,000,000 |
Equity Shares |
Rs.2/- each |
Rs. 70.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
30,004,850 |
Equity Shares |
Rs.2/- each |
Rs. 60.010 Millions |
|
|
|
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|
a) Terms / rights
attached to equity shares
The Company has only one class of Equity shares having a par value of Rs. 2/- per share. Each holder of Equity shares is entitled to one vote per share and each Equity share carries an equal right to dividend and in case of repayment of capital.
b) Details of
shareholders holding more than 5% shares in the company.
|
Name of
Shareholders |
As at 31st March, 2014 |
|
|
No. of Shares |
% holding |
|
|
Equity shares of Rs. 2/- each fully paid-up |
|
|
|
Kamalaksha R. Naik |
15,662,993 |
52.20% |
|
Aarti K. Naik |
3,013,528 |
10.05% |
|
Lakshana A. Sharma |
1,830,841 |
6.10% |
|
Sudha K. Naik |
1,500,243 |
5.00% |
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 |
60.010 |
60.010 |
60.010 |
|
(b) Reserves & Surplus |
3988.168 |
4080.076 |
4171.234 |
|
(C) Employee
Stock Option Outstanding |
13.716 |
13.716 |
13.716 |
|
|
|
|
|
|
(2)
Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
4061.894 |
4153.802 |
4244.960 |
|
|
|
|
|
|
(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 |
1.161 |
2.708 |
2.836 |
|
(d) long-term provisions |
6.255 |
6.954 |
7.811 |
|
Total Non-current Liabilities (3) |
7.416 |
9.662 |
10.647 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Trade payables |
174.058 |
203.824 |
120.959 |
|
(c) Other current
liabilities |
24.073 |
26.644 |
39.647 |
|
(d) Short-term provisions |
73.429 |
73.345 |
74.167 |
|
Total Current Liabilities (4) |
271.560 |
303.813 |
234.773 |
|
|
|
|
|
|
TOTAL |
4340.870 |
4467.277 |
4490.380 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
260.267 |
286.887 |
295.952 |
|
(ii) Intangible Assets |
4.223 |
7.489 |
10.808 |
|
(iii) Capital
work-in-progress |
3.513 |
0.000 |
4.934 |
|
(iv) Intangible
assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
0.000 |
22.792 |
18.209 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
94.287 |
75.627 |
50.548 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current Assets |
362.290 |
392.795 |
380.451 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
2828.195 |
2684.707 |
1586.211 |
|
(b) Inventories |
275.098 |
159.503 |
329.591 |
|
(c) Trade receivables |
291.744 |
250.710 |
156.473 |
|
(d) Cash and cash
equivalents |
501.384 |
861.499 |
1901.721 |
|
(e) Short-term loans and
advances |
53.053 |
41.871 |
60.079 |
|
(f) Other current assets |
29.106 |
76.192 |
75.854 |
|
Total Current Assets |
3978.580 |
4074.482 |
4109.929 |
|
|
|
|
|
|
TOTAL |
4340.870 |
4467.277 |
4490.380 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
|
|
|
|
|
|
A) |
CONTINUING
OPERATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
1498.455 |
1175.058 |
693.915 |
|
|
|
Other Income |
233.964 |
362.490 |
309.799 |
|
|
|
TOTAL |
1732.419 |
1537.548 |
1003.714 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Raw Materials Consumed |
294.233 |
273.200 |
291.773 |
|
|
|
Purchases of Traded Goods |
1017.381 |
620.309 |
339.167 |
|
|
|
(Increase) / Decrease in inventories of finished goods, |
(95.393) |
70.967 |
(174.632) |
|
|
|
Employees benefits expense |
244.009 |
261.761 |
258.858 |
|
|
|
Other expenses |
294.508 |
292.241 |
286.401 |
|
|
|
TOTAL |
1754.738 |
1518.478 |
1001.567 |
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION |
(22.319) |
19.070 |
2.147 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
0.130 |
0.681 |
0.526 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
(22.449) |
18.389 |
1.621 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
36.953 |
38.860 |
42.980 |
|
|
|
|
|
|
|
|
|
Add |
EXCEPTIONAL
ITEMS |
-- |
-- |
4709.508 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX |
(59.402) |
(20.471) |
4668.149 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
(38.472) |
(0.290) |
1010.108 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX |
(20.930) |
(20.181) |
3658.041 |
|
|
|
|
|
|
|
|
|
B) |
DISCOUNTING
OPERATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
PROFIT FROM
DISCOUNTING OPRATIONS (BEFORE TAX) |
0.000 |
0.000 |
7.726 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
0.000 |
0.000 |
1.292 |
|
|
|
|
|
|
|
|
|
|
PROFIT FROM
DISCOUNTING OPRATIONS (AFTER TAX) |
(20.930) |
(20.181) |
6.434 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
FOR THE YEAR |
(20.930) |
(20.181) |
3664.475 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
3204.288 |
3294.677 |
1112.566 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
0.000 |
0.000 |
366.447 |
|
|
|
Special Interim Dividend |
0.000 |
0.000 |
900.146 |
|
|
|
Proposed Dividend |
60.010 |
60.010 |
60.010 |
|
|
|
Corporate Tax Dividend |
10.199 |
10.198 |
155.761 |
|
|
BALANCE CARRIED
TO THE B/S |
3113.149 |
3204.288 |
3294.677 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
F.O.B. value of goods exported |
16.534 |
0.605 |
0.666 |
|
|
|
Income from services |
97.682 |
130.999 |
113.307 |
|
|
TOTAL EARNINGS |
114.216 |
131.604 |
113.973 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw materials and components |
289.104 |
160.451 |
373.111 |
|
|
|
Stores, spares and packing materials |
11.518 |
3.745 |
12.178 |
|
|
|
Traded goods |
904.633 |
578.435 |
293.656 |
|
|
TOTAL IMPORTS |
1205.255 |
742.631 |
678.945 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
(0.70) |
(0.67) |
122.13 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2014 |
30.09.2014 |
|
Audited / UnAudited |
|
UnAudited |
UnAudited |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
271.600 |
306.900 |
|
Total Expenditure |
|
297.200 |
357.100 |
|
PBIDT (Excl OI) |
|
(25.700) |
(50.200) |
|
Other Income |
|
85.400 |
80.100 |
|
Operating Profit |
|
59.800 |
29.900 |
|
Interest |
|
0.000 |
0.000 |
|
Exceptional Items |
|
0.000 |
0.000 |
|
PBDT |
|
59.700 |
29.900 |
|
Depreciation |
|
10.500 |
9.200 |
|
Profit Before Tax |
|
49.200 |
20.700 |
|
Tax |
|
0.000 |
(1.600) |
|
Provisions and
contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
49.200 |
22.300 |
|
Extraordinary
Items |
|
0.000 |
0.000 |
|
Prior Period
Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
49.200 |
22.3 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
Net Profit Margin (PAT/Sales) |
(%) |
(1.40) |
(1.72) |
528.09 |
|
|
|
|
|
|
|
Operating Profit Margin (PBDIT/Sales) |
(%) |
(1.49) |
1.62 |
0.31 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(1.37) |
(0.46) |
104.50 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.01) |
0.00 |
1.10 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.00 |
0.00 |
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
14.65 |
13.41 |
17.51 |
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 |
60.010 |
60.010 |
60.010 |
|
Reserves & Surplus |
4171.234 |
4080.076 |
3988.168 |
|
Employee Stock Option
Outstanding |
13.716 |
13.716 |
13.716 |
|
Net
worth |
4244.960 |
4153.802 |
4061.894 |
|
|
|
|
|
|
long-term borrowings |
0.000 |
0.000 |
0.000 |
|
Short term borrowings |
0.000 |
0.000 |
0.000 |
|
Total
borrowings |
0.000 |
0.000 |
0.000 |
|
Debt/Equity
ratio |
0.000 |
0.000 |
0.000 |
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 |
693.915 |
1175.058 |
1498.455 |
|
|
|
69.337 |
27.522 |
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 |
693.915 |
1175.058 |
1498.455 |
|
Profit |
3664.475 |
(20.181) |
(20.930) |
|
|
528.09% |
(1.72%) |
(1.40%) |
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 |
Yes |
|
10] |
Designation of contact
person |
Yes |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
----- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm
/ promoter involved in |
----- |
|
23] |
Banking Details |
No |
|
24] |
Banking facility details |
No |
|
25] |
Conduct of the banking
account |
----- |
|
26] |
Buyer visit details |
----- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
No |
INDEX OF CHARGES: NO
CHARGES EXIST FOR COMPANY
BACKGROUND OF THE
COMPANY
Company was originally incorporated on 31st March, 1993. The Company is in the business of developing, manufacturing, marketing, distributing and servicing of networking products.
SIGNIFICANT
DEVELOPMENTS
In the financial year 2013-14, the company achieved an Income from
operations of Rs. 1543.150
millions representing a growth of 27.06% as compared to Rs. 1214.480
millions in the previous year. Loss before depreciation & tax was Rs. 22.450
millions for the year ending 31st March, 2014 as compared to Profit of Rs. 18.390
millions in the previous year. Loss after tax was Rs. 20.930 millions for the year ended 31st March,
2014 as compared to loss Rs. 20.180 millions in the previous year.
MANAGEMENT DISCUSSION
AND ANALYSIS
ECONOMIC OVERVIEW
2013-14 was overall an improved year for the global economy, although the eurozone remained largely in recession. There continued a structural shift from the developed to the emerging world. Growth slowed down in India as well to a little below 5%.
The worldwide economic recovery gained ground, especially in advanced economies, although it remains below par and erratic across the globe. Global growth aggregated to 3%, with the IMF forecasting a rise to 3.6% in 2014-15. However, the global economy remains vulnerable to risks such as high debt levels in many countries, stubbornly high unemployment and concerns about emerging markets.
The Indian economy is going through a challenging phase, with high inflation and slowing growth. This coupled with the upcoming national elections has created a temporary slowdown of the broader economy. Nevertheless, the broader market in India has shown resilience and companies have been cautiously upgrading their IT and communications infrastructure in order to deliver stronger value to business.
IT SPEND - GLOBAL AND
LOCAL
With the global economy showing signs of gradual recovery, worldwide IT spending kept pace to total $3.8 trillion in 2014, a 3.2 percent increase from 2013 spending, according to the latest forecast by Gartner, Inc.
“Globally, businesses are shaking off their malaise and returning to spending on IT to support the growth of their business,” said Richard Gordon, Managing Vice President at Gartner. “Consumers will be purchasing many new devices in 2014; however, there is a greater substitution toward lower cost and more basic devices than they have seen in prior years.”
The devices market (including PCs, ultra mobiles, mobile phones and tablets) is forecast to return to growth in 2014, with worldwide spending of $689 billion, a 4.4 percent increase from 2013. However in top-line spending, a shift in the product mix continues to be seen in the marketplace. Demand for highly priced premium phones is slowing, with buyers in mature countries preferring midtier premium phones, while those in emerging countries favor low-end basic android phones.
The number of traditional PC users is contracting to a set of fewer, albeit more engaged users. In general, consumers are opting to buy premium ultra mobiles as notebook replacements and purchasing tablets as additional devices.
INDIAN HARDWARE
MARKET
India’s overall PC shipments for Calendar Year (CY) 2013 stood at 11.5 million units i.e. a year-on-year growth of 4.8% over CY 2012, driven largely by state governments’ purchase and distribution of laptops to students.
The commercial PC segment hit a high of 6.7 million units in CY 2013, with a year-on-year growth of 15.8% over CY 2012.
The overall consumer PC market recorded a year-on-year drop of 7.4% over CY 2012, with sales aggregating to 4.8 million units.
Rising inflation tightened up discretionary spending by consumers, and sales were further aggravated by loss of share to smartphones and tablets.
INDIAN NETWORKING
INDUSTRY
Thanks to the huge traction in cloud, mobility, video, social networking, virtual networks areas, the shift from IPv4 to IPv6, convergence of networking, computing and storage; network infrastructure / networking market have become more relevant today than ever before.
The industry is transitioning towards programmable, flexible and virtual networks. Despite the uncertain acroeconomic conditions, the Indian networking industry has also been witnessing steady growth in line with the networking industry globally.
INDIAN SURVEILLANCE
MARKET
The Indian video surveillance camera market is growing at a healthy rate and according to 6Wresearch, in the fourth quarter grew to 0.80 million in CY Q4 2013, representing an increase of 20% over the previous quarter. The demand for low cost video surveillance cameras is being driven by small and medium businesses while public infrastructure and government segments are creating the demand for high end cameras. IP cameras are also experiencing positive growth due to the need for advanced security and also in various metro rail, mono rail and airport projects. The demand should touch new heights in the coming years.
BUSINESS OVERVIEW
DIGISOL
Networking Products
The growth in the LAN market in CY 2013 was not very encouraging with the Switch market growing by about 0.3% and Routing market by about 0.8% compared to CY 2012. The WLAN market, however, grew by a whopping 36% in the same period.
Such exponential growth results from the proliferation of smart devices coupled with the need for mobile connectivity, spurring demand for a wireless last mile connection. Network infrastructure and networking products have become more relevant than ever.
In line with its mission to offering power combined with convenience, ease of use and mobility, DIGISOL introduced an array of new products during the year. These span the gamut from personal individual use to enterprise-level application. The most significant launches have been the 14.4 Mbps Dongle which enables connectivity just about anywhere; the personal hot-spot Pocket and MiFi routers. These tiny devices allow fast connection between multiple devices through a dongle or GSM SIM.
At the upper end, DIGISOL introduced its 300Mbps Wireless ADSL 2/2+ Broadband Router with USB Port: a high-performance ADSL router providing downstream speeds of up to 24Mbps with a built-in Access Point that permits multiple wireless clients to simultaneously access LAN resources and Internet.
An adjacent product launch was that of DIGISOL’s 300Mbps Wireless Router, designed to provide a superior wireless signal for home networks. The router supports wireless 802.11 b/g/n and security protocols such as WEP, WPA and WPA2.
Security and
Surveillance Products:
The year also saw the introduction of a new range of security products under the DIGISOL CCTV camera range, with an extensive product portfolio spanning Bullet cameras, Dome cameras and 4 to 16 channel DVRs, suitable for both home and office security solution. A key benefit is of effectively viewing the security feed over one’s smartphone or tablet at any location.
DIGILITE
Motherboards:
The motherboard market worldwide is decreasing with users shifting to notebooks and tablets. With the corporate and SMB segments expected to grow at a higher rate, motherboard vendors have been increasing focus on small form factor PCs and penetration into Class B & C cities which will drive the segment.
Vendors are trying to differentiate and gain share through aggressive bundling of processors and motherboards, service and support are becoming key factors in gaining market share. There is also a growing demand for motherboards that are energy-efficient and ‘green’.
In spite of the numerous players in the market, DIGILITE continued to distinguish itself among motherboard brands in India, especially with its high-end Intel and AMD products known for the robustness and dependable quality.
As a valuable extension of its range, DIGILITE forayed into the domain of peripherals and accessories with the introduction of its range of stylish, colorful and high-capacity Powerbanks, ranging from 5200 mAH to 6600 mAH charging power.
Powerbanks cater to the market created by exploding sales of smart phones and tablet PCs, which could run out of power at any time or location, seriously inconveniencing the user. The Powerbanks deliver the fastest possible charge to the device and automatically halt the charging process on completion. They are a vital defence against the dangers of voltage overages, short circuits, over currents and other electrical hazards.
DIGITAB
Tablets:
“In FY2013-14, tablet sales in India stood at 1.9 million units with revenues surpassing US$2 billion but the growth in tablet demand will surpass 3.9 million units in FY2014-15”.
Seeing an opportunity almost tailor-made for its capabilities, Smartlink entered the tablet market with its DIGITAB line of tablets. In a field already approaching saturation with competing brands, Smartlink saw a chance to deploy its particular strengths and its edge in sourcing and customization.
Smartlink’s other marketplace differentiators are its well-established nationwide sales and service channel network further strengthened by the multi-locational DIGICARE, and its pre-existing penetration into the enterprise and SME segments, where the tablet category is rapidly gaining popularity.
According to Gartner, by 2017, nearly half of first-time computer purchases in India will be tablets; making use of such positive predictions, DIGITAB introduced three models in February 2014, with an eye to capture a customer base ranging from students to professionals seeking a practical and price-competitive tablet.
Built on the Android™ operating system, the new compact, full-featured tablets are powered by a dual-core processor, enabling users to multitask at business and recreational usages from email and web surfing to gaming
and streaming. All devices come equipped with front and rear camera for photos and video chats. High quality coupled with advanced technology are distinct and desirable brand attributes that DIGITAB commands, assuring users of a perfect fit with all their computingcum- networking needs. Smartlink will also be working closely with its SI community to target BFSI and Education sectors, while also engaging its strong IT & Telecom channels to access the end-customer.
DIGICARE
DIGICARE is a well known brand in providing high level repair/RMA services to various MNC brands. It has emerged as a preferred vendor for many MNC brands on account of its brand neutral service policies and strict adherence to customer SLAs.
DIGICARE has a nationwide presence through its 15 direct service centres and 46 partner managed service centres across the country. It also has a highly efficient, skilled and professional service infrastructure with capabilities to cater to the latest technologies.
Smartlink Technical Assistance Centre provides customer support on voice, email and chat with a wide range of technological skills as well as various levels of trouble shooting in LAN, Adapters, Switches, Routers, Broadband, Wireless Security, VoIP, Surveillance, Storage and 3G products.
DIGICARE is now expanding its reach and capabilities to support the new generation of devices like notebooks, tablets and smart phones.
AWARDS AND
RECOGNITIONS
As in the previous year, Smartlink won numerous awards and accolades during the year under review. These awards are a testimony to the company’s commitment to quality and latest technology and recognition of its products in the industry. A few of these awards are listed below:
_ DIGISOL was awarded as the ‘Most Channel Friendly Networking Brand’ at NCN Awards in 2013
_ DIGICARE also won ‘Editor’s Choice Award’ at NCN Awards Night in 2013 for the most trusted service provider
_ DIGILITE bagged ‘Editor’s Choice Award’ for the most selling motherboard brand at NCN Awards Night 2013
_ Smartlink’s Chairman Mr. K. R. Naik was honoured as ‘Evangelist of the year’ at the VAR India Star Nite Special Award 2013
_ DIGICARE won the ‘Best Service Support Western India’ award at the VAR India WIITF Awards 2013
_ Smartlink was adjudged as the ‘Fastest growing Indian IT Company’ at VAR India Star Nite Awards 2013
_ DIGICARE was honoured with the ‘Best Post Sales Services’ award at the VAR India Star Nite Awards 2013
_ DIGISOL won the ‘CRN 2013 Channel Champion’ award for the No.1 brand in Home Networking
_ DIGISOL’s Innovative Product for SMEs, DG-NS5004 “CLOUD VAULT” was honoured at the SME Channel Awards 2013
CONTINGENT
LIABILITIES:
|
PARTICULARS |
31.03.2014 (Rs.
In Millions) |
31.03.2013 (Rs.
In Millions) |
|
a. Show cause notices received from customs authorities relating to imports made in earlier years |
0.238 |
0.709 |
|
b. Disputed demands of custom duty pending before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has been decided in favour of Company and has pronounced the judgement on 28/03/2014 dismissing the appeal filed by the Revenue Department |
0.000 |
242.024 |
|
c. Disputed demands of custom duty pending before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) (Amount deposited as pre-deposit Rs. 0.900 Million) in connection with classification of networking products |
2.414 |
2.414 |
|
d. Disputed demand of excise duty in connection with valuation of products manufactured by the Company pending before CESTAT (Amount deposited as pre-deposit ` 11,400,000/-) |
38.716 |
38.716 |
|
e. Disputed penalty demands of Excise Authorities with regard to (d) above, pending before the CESTAT |
39.881 |
39.518 |
|
f. Custom duty paid under protest The raw material/trading material/software imported by the Company are subjected to different rates of customs duty based on classification under respective Tariff Head. The Customs department has objected to the classifications adopted by the Company for certain items and has demanded additional duty for the same The Company has paid such differential duty under protest, which is included under Long term loans and advances in Note 12, pending resolution of the dispute |
3.884 |
4.488 |
|
g. SEBI had filed a criminal case, in the Metropolitan Magistrate court, in June, 2006 under Section 77A(4) r/w Section 621 for alleged contravention of provisions of the Companies Act, 1956 for failing to complete the process of buy back of shares as provided under the said section. The Company had filed an application in the Hon’ble High Court of Bombay and the Hon’ble High Court has passed Orders staying the proceedings in the Metropolitan Magistrate court. The stay is continuing. The Company does not expect any liability on this account at this stage |
|
|
STATEMENT
OF UNAUDITED FINANCIAL RESULTS FOR THE QUARTER/ SIX MONTHS ENDED SEPTEMBER 30,
2014
PART: I
(Rs.
in Millions)
|
Particulars |
3 Months Ended |
Preceding 3 Months Ended |
Year to date figures for current
period ended |
|
|
30.09.2014 |
30.06.2014 |
30.09.2014 |
|
|
Unaudited |
Unaudited |
Unaudited |
|
1.
Income from operations |
|
|
|
|
a) Net sales/ Income From Operation (Net of Excise Duty) |
306.931 |
271.558 |
578.489 |
|
b) Other Operating Income |
-- |
-- |
-- |
|
Total
income from Operations(net) |
306.931 |
271.558 |
578.489 |
|
2.Expenses |
|
|
|
|
a) Cost of Material Consumed |
60.952 |
54.086 |
115.038 |
|
b) Purchases of Traded Goods |
134.384 |
103.914 |
238.298 |
|
c) Changes in Inventories of Finished Goods, Work-in-Progress
and Traded Goods |
49.510 |
61.090 |
110.600 |
|
d) Employees Benefit Expenses |
55.928 |
57.018 |
112.946 |
|
e) Depreciation and Amortization Expenses |
9.165 |
10.490 |
19.655 |
|
f) Diminution in Value of Current Investments-(Write Back)/Provision |
2.512 |
(28.358) |
(25.846) |
|
f) Other expenses |
53.853 |
49.488 |
103.341 |
|
Total Expenses |
366.304 |
307.728 |
674.032 |
|
3. Profit/ (Loss) from Operations Before Other Income,
Financial costs and Exceptional Items |
(59.373) |
(36.170) |
(95.543) |
|
4. Other income |
80.103 |
85.426 |
165.529 |
|
5. Profit/ (Loss) from Ordinary Activities before Finance
Costs and Exceptional Items |
20.730 |
49.253 |
69.986 |
|
6. Finance costs |
0.002 |
0.029 |
0.031 |
|
7. Net Profit/ (Loss) from Ordinary Activities
Before Tax |
20.728 |
49.227 |
69.955 |
|
8.Tax expenses |
|
|
|
|
Current Tax |
8.115 |
-- |
8.115 |
|
Deferred Tax |
(9.670) |
-- |
(9.670) |
|
9.Net Profit / (Loss) for the Period (7-8) |
22.283 |
49.227 |
71.510 |
|
10.Paid-Up Equity Share Capital (Face value Rs.2/-) |
60.010 |
60.010 |
60.010 |
|
11. Reserve excluding
Revaluation Reserves as per balance sheet of previous accounting year |
-- |
-- |
-- |
|
12. Basic and Diluted Earnings Per Share for Rs. 2/- each (not
annualized) |
0.74 |
1.64 |
2.38 |
PART: II
SELECT
INFORMATION FOR THE QUARTER/ SIX MONTHS ENDED SEPTEMBER 30, 2014
|
Particulars |
3 Months Ended |
Preceding 3 Months Ended |
Year to date figures for current period ended |
|
|
30.09.2014 |
30.06.2014 |
30.09.2014 |
|
|
Unaudited |
Unaudited |
Unaudited |
|
A. Particulars of shareholding |
|
|
|
|
1. Public Shareholding |
|
|
|
|
- Number of shares |
7654274 |
7654274 |
7654274 |
|
- Percentage of shareholding |
25.51% |
25.51% |
25.51% |
|
2. Promoters and Promoters group Shareholding- |
|
|
|
|
a) Pledged /Encumbered |
|
|
|
|
Number of shares |
-- |
-- |
-- |
|
Percentage of shares (as a % of total shareholding of the
promoter and promoter group) |
-- |
-- |
-- |
|
Percentage of shares (as a % of total share capital of the
company) |
-- |
-- |
-- |
|
|
|
|
|
|
b) Non Encumbered |
|
|
|
|
Number of shares |
22350576 |
22350576 |
22350576 |
|
Percentage of shares (as a % of total shareholding of the
promoter and promoter group) |
100% |
100% |
100% |
|
Percentage of shares (as a % of total share capital of the
company) |
74.49% |
74.49% |
74.49% |
|
B.
Investor Complaints (Nos.) |
3 Months Ended 30.09.2014 |
|
Pending at the beginning of the quarter |
Nil |
|
Receiving during the quarter |
26 |
|
Disposed of during the quarter |
26 |
|
Remaining unreserved at the end of the quarter |
Nil |
NOTE
1. Pursuant to the enactment of the Companies Act, 2013 (the ‘Act’), effective April 01, 2014, the Company has revised the estimated useful lives of its fixed assets to ensure compliance with the stipulations of Schedule II to the Act, only for assets whose lives were longer than as prescribed by the said Schedule. Accordingly, the unamortized depreciable amounts of the fixed assets are being charged over the revised remaining useful lives. This has the impact of increasing depreciation charge for the quarter by Rs. 0.814 Million and six months by Rs. 2.456 Million Further, in accordance with the stipulation of the said Schedule, written down value of fixed assets, whose lives have expired as at April 01, 2014, aggregating Rs. 1.517 Million have been adjusted against the retained earnings.
2. The Company operates in a single business segment namely "Networking
Products".
3. Figures of the quarter / year are re-grouped / re-arranged, wherever
necessary.
4. The above unaudited results have been reviewed by the Audit Committee and
approved by the Board of Directors at its Meeting held on November 12, 2014.
STATEMENT OF ASSETS AND LIABILITIES
(Rs. in Millions)
|
SOURCES OF FUNDS |
30.09.2014 (Unaudited) |
|
I.
EQUITY
AND LIABILITIES |
|
|
(1)Shareholders'
Funds |
|
|
(a) Share Capital |
60.010 |
|
(b) Employee Stock Options |
13.716 |
|
(c) Reserves & Surplus |
4058.108 |
|
Sub-Total
Shareholders’ Funds |
4131.834 |
|
|
|
|
(2) Non-Current Liabilities |
|
|
(a) Other long term liabilities |
1.161 |
|
(b) long-term provisions |
6.855 |
|
Sub-Total Non-current Liabilities
(3) |
8.016 |
|
|
|
|
(3) Current Liabilities |
|
|
(a) Trade payables |
174.529 |
|
(b) Other current
liabilities |
47.661 |
|
(c) Short-term provisions |
8.260 |
|
Sub-Total Current Liabilities (4) |
230.450 |
|
|
|
|
TOTAL – EQUITY AND LIABILITIES |
4370.300 |
|
|
|
|
II.
ASSETS |
|
|
(1) Non-current assets |
|
|
(a) Fixed Assets |
245.443 |
|
(b) Deferred tax assets (net) |
10.479 |
|
(c) Long-term Loan and Advances |
53.519 |
|
Sub-Total Non-Current Assets |
309.441 |
|
|
|
|
(2) Current assets |
|
|
(a) Current investments |
3144.632 |
|
(b) Inventories |
146.346 |
|
(c) Trade receivables |
179.354 |
|
(d) Cash and cash
equivalents |
517.450 |
|
(e) Short-term loans and
advances |
54.688 |
|
(f) Other current assets |
18.389 |
|
Sub-Total Current Assets |
4060.859 |
|
|
|
|
TOTAL
- ASSETS |
4370.300 |
FIXED ASSETS
Tangible Assets
· Freehold Land
Leasehold
Land
Buildings
Plant
and Machinery
Furniture
and Fixture
Vehicles
Office
Equipment
Electrical
Installations
Air
Conditioners
Computers
Intangible Assets
· Goodwill
Computer
Software
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.41 |
|
|
1 |
Rs.93.18 |
|
Euro |
1 |
Rs.69.82 |
INFORMATION DETAILS
|
Information
Gathered by : |
NYA |
|
|
|
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
MRI |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILITY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
3 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
33 |
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.