MIRA INFORM REPORT

 

 

Report No. :

330287

Report Date :

07.07.2015

 

IDENTIFICATION DETAILS

 

Name :

NEC INDIA PRIVATE LIMITED

 

 

Registered Office :

Unit No. 1, 2nd Floor, TDI Centre, Commercial Plot No.7, Jasola, New Delhi - 110025

Tel. No.:

91-9930461705

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

01.08.2006

 

 

Com. Reg. No.:

55-151472

 

 

Capital Investment / Paid-up Capital :

Rs.1456.993 Million

 

 

CIN No.:

[Company Identification No.]

U72300DL2006FTC151472

 

 

IEC No.:

0506062279

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not Available

 

 

PAN No.:

[Permanent Account No.]

AACCN3496J

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Selling and Marketing of NEC IT products and solutions and trading and providing installation, commissioning, integration etc. and other services related to the telecommunication sector.

 

 

No. of Employees :

Information declined by the management.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (29)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a subsidiary of “NEC ASIA PACIFIC PET. LIMITED”. It is an established company having moderate track record.

 

For the financial year ended 2014, company possesses moderate operational risk profile and incurred losses from its operational activities.

 

Rating further constrained on account of company’s moderate financial risk profile marked by negative reserves and leverage net worth base of the company.

 

However, rating weakness partially offset by strong financial and managerial support that company receives from holding entity.

 

Trade relations are fair. Business is active. Payments are reported to be slow but correct.

 

In view of strong holding company support, the company can be considered for business dealing with some caution.

 

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

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 31-03-2013.

 

 

INFORMATION DENIED BY

 

Name :

Mr. Vishal Patil

Designation :

Procurement Department

Contact No.:

91-9930461705

Date :

06.07.2015

 

 

LOCATIONS

 

Registered / Head / Corporate Office :

Unit No. 1, 2nd Floor, TDI Centre, Commercial Plot No.7, Jasola, New Delhi – 110025, India

Tel. No.:

91-11-61101000

Mobile No.:

91-9930461705 (Mr. Vishal Patil)

Fax No.:

91-11-61101177

E-Mail :

mayurbatra_ca@mayurbatra.com

Website :

www.in.nec.com

 

 

DIRECTORS

 

As on 26.09.2014

 

Name :

Koichiro Koide

Designation :

Managing Director

Address :

C-132, Defence Colony, 2nd Floor (Rear), New Delhi - 110024, India

Date of Birth/Age :

17.09.1966

Date of Appointment :

26.09.2014

DIN No.:

06801387

 

 

Name :

Toshiya Matsuki

Designation :

Director

Address :

4-15-12-301, Shirokane Minato-Ku, Tokyo, Na, Japan

Date of Birth/Age :

09.05.1960

Date of Appointment :

30.09.2013

DIN No.:

06550871

 

 

KEY EXECUTIVES

 

Name :

Dibyalochan Ojha

Designation :

Chief Financial Officer

Address :

At- Anuguliapara, Po/Ps - Ainthapali, Sambalpur - 768004, Orissa, India

Date of Appointment :

19.05.2015

PAN No.:

AAHPO9056B

 

 

Name :

Geetanjali S Kumar

Designation :

Secretary

Address :

A-6/33, Paschim Vihar, New Delhi - 110063, India

Date of Birth/Age :

01.06.1973

Date of Appointment :

26.05.2014

PAN No.:

AIEPK8471B

 

 

Name :

Mr. Vishal Patil

Designation :

Procurement Department

 

 

MAJOR SHAREHOLDERS

 

As on 26.09.2014

 

Names of Shareholders

No. of Shares

%age holding

NEC Asia Pacific Pte. Limited, Singapore

120939338

83.01

NEC Corporation, Japan

24760000

16.99

Total

145699338

100.00

 

 

As on 26.09.2014

 

Equity Share Break up (Percentage of Total Equity)

 

Category

Percentage

Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others

100.00

Total

100.00

 

 

 

 

BUSINESS DETAILS

 

Line of Business :

Selling and Marketing of NEC IT products and solutions and trading and providing installation, commissioning, integration etc. and other services related to the telecommunication sector.

 

 

Products :

Not Available

 

 

Brand Names :

Not Available

 

 

Agencies Held :

Not Available

 

 

Exports :

Not Divulged

 

 

Imports :

Not Divulged

 

 

Terms :

 

Selling :

Not Divulged

 

 

Purchasing :

Not Divulged

 

PRODUCTION STATUS = NOT AVAILABLE

 

 

GENERAL INFORMATION

 

Suppliers :

Reference :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Experience :

Not Divulged

Maximum Limit Dealt :

Not Divulged

 

 

Customers :

Reference :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Experience :

Not Divulged

Maximum Limit Dealt :

Not Divulged

 

 

No. of Employees :

Information declined by the management.

 

 

Bankers :

Banker Name

Not Divulged

Branch Address

Not Divulged

Person Name (With Designation)

Not Divulged

Contact Number

Not Divulged

Name of Account Holder

Not Divulged

Account Number

Not Divulged

Account Since (Date/Year of Account Opening)

Not Divulged

Average Balance Maintained (If Possible)

Not Divulged

Credit Facilities Enjoyed (If any)

Not Divulged

Account Operation

Not Divulged

Remarks (If any)

Not Divulged

 

Auditors :

 

Name :

B S R and Company

Chartered Accountants

Address :

Building No.10, 8th Floor, Tower-B, DLF Cyber City, Phase-II, Gurgaon - 122002, Haryana, India

PAN No.:

AAAFB2345S

 

 

Memberships :

Not Available

 

 

Collaborators :

Not Available

 

 

Holding company :
  • NEC Corporation, Japan
  • NEC Asia Pacific Pte. Limited, Singapore

 

 

Fellow Subsidiary Company :
  • NEC Infrontia Corporation, Japan
  • NEC Corporation of America, USA
  • NEC Display Solutions Limited, Japan
  • NEC Networks and System Integration, Japan
  • NEC Australia Pte. Limited, Australia
  • NEC Logistics Singapore Limited, Singapore
  • NEC Communication Systems Limited, USA
  • NEC Corporation Software, Japan
  • NEC Corporation, Malaysia SDN, Malaysia
  • NEC Corporation(Thailand) Limited, Thailand
  • NEC Display Solution Europe GMBH, Germany
  • NEC Engineering Limited, Japan
  • NEC Europe Limited, United Kingdom
  • NEC HCL System Technologies Limited, India
  • NEC Hong Kong Limited, Hong Kong
  • NEC Informatac Systems Limited, Japan
  • NEC Infrontia Thai Limited, Thailand
  • NEC Learning Limited, Japan
  • NEC Nederland B.V, Netherland
  • NEC Logistics (Thailand) Company Limited, Thailand
  • NEC Platform Technologies Hong Kong Limited, Hong Kong
  • NEC Philippines Inc., Philippines
  • NEC Taiwan Limited, Taiwan, Province Of China
  • NEC Professional Support Limited, Japan
  • NEC Technologies India Limited, India
  • NEC Unified Solutions, Netherland
  • NESIC Thailand Limited, Thailand
  • NEC Soft (Jinam) Company Limited, Japan
  • NEC Logistics (Shenzhen) Limited, China
  • NEC Telecommunications Company, Limited, China
  • NEC Logistics Limited, Thailand
  • NEC Management Partner Limited, Japan
  • NEC Saudi Arabia Limited, United Arab Emirates
  • NEC Soft Limited, Japan

 

 

CAPITAL STRUCTURE

 

As on 31.03.2014

 

Authorised Capital:

No. of Shares

Type

Value

Amount

 

 

 

 

150000000

Equity Shares

Rs.10/- each

Rs.1500.000 Million

 

Issued, Subscribed & Paid-up Capital:

No. of Shares

Type

Value

Amount

 

 

 

 

145699338

Equity Shares

Rs.10/- each

Rs.1456.993 Million

 

 

FINANCIAL DATA

[all figures are in Rupees Million]

 

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

1456.993

1456.993

466.000

(b) Reserves & Surplus

(364.389)

(154.893)

171.783

(c) Money received against share warrants

0.000

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

0.000

0.000

990.993

Total Shareholders’ Funds (1) + (2)

1092.604

1302.100

1628.776

 

 

 

 

(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

5.940

12.882

0.000

(d) long-term provisions

27.022

13.412

10.509

Total Non-current Liabilities (3)

32.962

26.294

10.509

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

0.000

0.000

15.104

(b) Trade payables

1533.295

1042.936

735.066

(c) Other current liabilities

179.202

135.223

65.638

(d) Short-term provisions

9.351

6.432

3.558

Total Current Liabilities (4)

1721.848

1184.591

819.366

 

 

 

 

TOTAL

2847.414

2512.985

2458.651

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

168.271

164.337

71.583

(ii) Intangible Assets

8.680

3.255

0.118

(iii) Capital work-in-progress

0.000

0.000

0.000

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

0.000

0.000

0.000

(c) Deferred tax assets (net)

0.000

0.000

15.417

(d)  Long-term Loan and Advances

180.859

245.591

166.036

(e) Other Non-current assets

4.715

0.000

0.000

Total Non-Current Assets

362.525

413.183

253.154

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

360.371

236.627

148.664

(c) Trade receivables

1598.161

1004.606

1050.658

(d) Cash and cash equivalents

436.722

781.611

954.506

(e) Short-term loans and advances

89.635

64.739

51.071

(f) Other current assets

0.000

12.219

0.598

Total Current Assets

2484.889

2099.802

2205.497

 

 

 

 

TOTAL

2847.414

2512.985

2458.651

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2014

31.03.2013

31.03.2012

 

SALES

 

 

 

 

Income

 

 

 

 

Other Income

 

 

 

 

TOTAL

3335.000

2305.000

1957.620

 

 

 

 

 

Less

EXPENSES

3442.000

2616.000

1948.155

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

(107.000)

(311.000)

9.465

 

 

 

 

 

Less

TAX

102.495

15.677

5.089

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX 

(209.495)

(326.677)

4.376

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

1717.000

866.000

364.511

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

(1.43)

(2.24)

0.03

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2014

31.03.2013

31.03.2012

Current Maturities of Long term debt

NA

NA

NA

Cash generated from operations

NA

NA

NA

Net cash flows from (used in) operations

(245.369)

(72.461)

(35.418)

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2014

31.03.2013

31.03.2012

Net Profit Margin

(PAT/Sales)

(%)

(6.28)

(14.17)

0.22

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

(3.76)

(12.38)

0.39

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

(0.10)

(0.24)

0.01

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

0.00

0.00

0.01

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.44

1.77

2.69

 

 

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

 

DEBT EQUITY RATIO

 

Particular

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Share Capital

466.000

1456.993

1456.993

Reserves & Surplus

171.783

(154.893)

(364.389)

Share Application money pending allotment

990.993

0.000

0.000

Net worth

1628.776

1302.100

1092.604

 

 

 

 

long-term borrowings

0.000

0.000

0.000

Short term borrowings

15.104

0.000

0.000

Total borrowings

15.104

0.000

0.000

Debt/Equity ratio

0.009

0.000

0.000

 

 

 

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Sales

1957.620

2305.000

3335.000

 

 

17.745

44.685

 

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Sales

1957.620

2305.000

3335.000

Profit

4.376

(326.677)

(209.495)

 

0.22%

(14.17%)

(6.28%)

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check list by info agents

Available in Report (Yes/No)

1

Year of establishment

Yes

2

Constitution of the entity -Incorporation details

Yes

3

Locality of the entity

Yes

4

Premises details

No

5

Buyer visit details

----------------------

6

Contact numbers

Yes

7

Name of the person contacted

Yes

8

Designation of contact person

Yes

9

Promoter’s background

Yes

10

Date of Birth of Proprietor / Partners / Directors

Yes

11

Pan Card No. of Proprietor / Partners

Yes

12

Voter Id Card No. of Proprietor / Partners

No

13

Type of business

Yes

14

Line of Business

Yes

15

Export/import details (if applicable)

No

16

No. of employees

No

17

Details of sister concerns

Yes

18

Major suppliers

No

19

Major customers

No

20

Banking Details

No

21

Banking facility details

No

22

Conduct of the banking account

----------------------

23

Financials, if provided

Yes

24

Capital in the business

Yes

25

Last accounts filed at ROC, if applicable

Yes

26

Turnover of firm for last three years

Yes

27

Reasons for variation <> 20%

----------------------

28

Estimation for coming financial year

No

29

Profitability for last three years

Yes

30

Major shareholders, if available

Yes

31

External Agency Rating, if available

No

32

Litigations that the firm/promoter involved in

----------------------

33

Market information

----------------------

34

Payments terms

No

35

Negative Reporting by Auditors in the Annual Report

No

 

 

INDEX OF CHARGES: NO CHARGES EXIST FOR THE COMPANY

 

 

FIXED ASSETS

 

  • Plant and equipment
  • Furniture and fixtures
  • Vehicles
  • Office equipment
  • Computer Equipments
  • Other Equipments
  • Leasehold improvements

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

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.63.57

UK Pound

1

Rs.99.10

Euro

1

Rs.70.29

 

 

INFORMATION DETAILS

 

Information Gathered by :

DIP

 

 

Analysis Done by :

KAR

 

 

Report Prepared by :

PNM

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

4

--PROFITABILITY 

1~10

---

--LIQUIDITY

1~10

4

--LEVERAGE

1~10

3

--RESERVES

1~10

3

--CREDIT LINES

1~10

4

--MARGINS

-5~5

---

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

29

 

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

 

--

 

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

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