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MIRA INFORM REPORT
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Report No. : |
505695 |
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Report Date : |
24.04.2018 |
IDENTIFICATION DETAILS
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Name : |
QUICK HEAL TECHNOLOGIES LIMITED (w.e.f.08.09.2015) |
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Formerly Known
As : |
QUICK HEAL TECHNOLOGIES PRIVATE LIMITED (w.e.f.07.08.2007) CAT COMPUTER SERVICES PRIVATE LIMITED |
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Registered
Office : |
Marvel Edge, 7010, C and D, Opposite NECO Garden Society, Viman Nagar,
Pune – 411014, Maharashtra |
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Tel. No.: |
91-20-66813131 |
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Country : |
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Financials (as
on) : |
31.03.2017 |
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Date of
Incorporation : |
07.08.1995 |
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Com. Reg. No.: |
11-091408 |
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Capital
Investment / Paid-up Capital : |
INR 701.020 Million |
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CIN No.: [Company Identification
No.] |
L72200MH1995PLC091408 |
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IEC No.: [Import-Export Code No.] |
Not Divulged |
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TIN / CST No.: |
27810004401 |
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GSTN : [Goods & Service Tax
Registration No.] |
27AABCC4207H1Z0 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
Not Available |
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PAN No.: [Permanent Account No.] |
AABCC4207H |
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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
: |
The
company is engaged in the business of providing security software products. [Registered activity and also confirmed by management] |
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No. of Employees
: |
1332 (Approximately) |
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MIRA’s Rating : |
A++ |
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is an established company incorporated in the year 1995. It is engaged in providing security software products. For the financial year ended 2017, the company has healthy operations marked by top line growth of 6.04% as compared to the previous year along with profit margin of 18.29%. The sound financial profile of the company is marked by adequate net worth base along with strong debt protection metrics due to debt free balance sheet profile. Rating takes into consideration efficient net worth position, strong liquidity profile, good cash balances along with year-on year improvement in profile earnings. Rating takes into account the subject’s long established track record of business operations along with extensive experience of its promoters. Business is active. Payment seems to be regular and as per commitments. In view of aforesaid, 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
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
31-03-2018.
BIFR (Board for Industrial & Financial Reconstruction) LISTING
STATUS
Subject’s name is not listed as a Sick Unit in
the publicly available BIFR (Board for Industrial & Financial
Reconstruction) list as of 24.04.2018
IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS
Subject’s name is not listed in the publicly
available IBBI (Insolvency and Bankruptcy Board of India) list as of report
date.
INFORMATION PARTED BY (GENERAL DETAILS)
|
Name : |
Mr. Parag |
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Designation : |
Key Executive |
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Contact No.: |
91-20-66813232 |
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Date : |
23.04.2018 |
LOCATIONS
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Registered Office : |
Marvel Edge, 7010, C and D, Opposite NECO Garden Society, Viman Nagar,
Pune – 411014, Maharashtra, India |
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Tel. No.: |
91-20-66813131 / 66813232 |
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Mobile No.: |
91-8007785096 (Mr. Akash) |
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Fax No.: |
Not Available |
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E-Mail : |
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Website : |
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Location : |
Owned |
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Locality : |
Commercial |
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Development Center
1 : |
CTS No. 1551, Thube Park, Behind Sancheti Physiotherapy Centre, Shivaji Nagar, Pune – 411005, Maharashtra, India |
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Tel. No.: |
91-20-66843900 |
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Fax No.: |
91-20-66835901 |
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Development Center
2 : |
8010 C and D Core, 8th Floor, Marvel Edge, Survey # 207, Hissa, 1A and Survey, 33, Hissa, 2A/A, Opposite Neco Garden Society, Viman Nagar, Pune – 411014, Maharashtra, India |
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Tel. No.: |
91-20-66813131 |
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Development Center
3 : |
501, The Metropolitan, Wakdewadi, Shivaji Nagar, Pune – 411005, Maharashtra, India |
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Tel. No.: |
91-20-66843700 |
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Fax No.: |
91-20-66835901 |
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Branch Offices : |
Located At: · Ahmedabad · Aurangabad · Bangalore · Baroda · Bhubaneswar · Bhopal · Chandigarh · Chennai · Coimbatore · Dehradun · Ernakulum · Guwahati · Hyderabad · Indore · Jaipur · Kolhapur · Kolkata · Lucknow · Ludhiana · Madurai · Mumbai · Nagpur · Nashik · New Delhi · Patna · Pune · Raipur · Rajkot · Surat · Vijayawada ·
Vishakhapatnam |
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Overseas Offices : |
Located At: · Japan · Kenya ·
United Arab Emirates |
DIRECTORS
AS ON 31.03.2018
|
Name : |
Mr. Kailash Sahebrao Katkar |
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Designation : |
Managing Director |
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Address : |
B 101, Omkar Puru Housing Society, Air Port
Road, Pune – 411032, Maharashtra, India |
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Date of Appointment : |
17.08.1995 |
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DIN No.: |
00397191 |
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Name : |
Mr. Sanjay Sahebrao Katkar |
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Designation : |
Managing Director and Chief Technical
Officer |
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Address : |
S- 4 / 1, Siddeshwar Nagar, Tingre Nagar
Road, Vishrantwadi, Pune – 411015, Maharashtra, India |
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Date of Birth/Age : |
29.11.1970 |
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Date of Appointment : |
17.08.1995 |
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DIN No.: |
00397277 |
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Name : |
Mr. Abhijit Shantaram Jorvekar |
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Designation : |
Executive Director and Vice President Sales |
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Address : |
18/275, Lokmanya Nagar, Sadashiv Peth, Pune
– 411030, Maharashtra, India |
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Date of Appointment : |
22.03.2012 |
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DIN No.: |
05199551 |
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Name : |
Mr. Shailesh Lakhani |
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Designation : |
Non-Executive Director |
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Address : |
5685, Brightpool CR Mississauga Ontario
L5M3W4 CA, Canada |
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Date of Birth/Age : |
16.09.1978 |
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Date of Appointment : |
29.04.2014 |
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DIN No.: |
03567739 |
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Name : |
Mr. Sunil Sethy |
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Designation : |
Non-Executive Independent Director |
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Address : |
601/33, Heritage City, Gurugram – 122002,
Haryana, India |
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Date of Appointment : |
21.08.2015 |
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DIN No.: |
00244104 |
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Name : |
Mr. Pradeep Vasudeo Bhide |
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Designation : |
Non-Executive Independent Director |
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Address : |
D - 1/48, (First Floor), Vasant Vihar, New
Delhi – 110057, India |
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Date of Appointment : |
21.08.2015 |
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DIN No.: |
03304262 |
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Name : |
Mr. Mehul Mulchand Savla |
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Designation : |
Non-Executive Independent Director |
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Address : |
1002, Salvation Apartments, N.M. Kale Marg,
Dadar (West), Mumbai – 400028, Maharashtra, India |
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Date of Appointment : |
13.06.2011 |
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DIN No.: |
02137699 |
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Name : |
Ms. Apurva Pradeep Joshi |
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Designation : |
Non-Executive Independent Director |
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Address : |
S-8/9, Rajanigandha Apartment, Modikhana,
Solapur – 413001, Maharashtra, India |
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Date of Appointment : |
21.08.2015 |
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DIN No.: |
06608172 |
KEY EXECUTIVES
|
Name : |
Mr. Kailash Sahebrao Katkar |
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Designation : |
Chief Executive Officer |
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Address : |
B 101, Omkar Puru Housing Society, Air Port
Road, Pune – 411032, Maharashtra, India |
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Date of Appointment : |
17.08.1995 |
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PAN No.: |
AGFPK4175P |
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Name : |
Mr. Raghav Mulay |
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Designation : |
Company Secretary |
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Address : |
28, Vallabh Nagar Pachpedi Naka, Raipur –
492001, Maharashtra, India |
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Date of Appointment : |
11.08.2017 |
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PAN No.: |
ARYPM3167H |
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Name : |
Mr. Rajesh Ghonasgi |
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Designation : |
Chief Financial
Officer |
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Address : |
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Date of Birth/Age : |
Mr. Vijay Shirode |
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Date of Appointment : |
Company Secretary and Compliance Officer |
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Audit Committee : |
Ø Mr. Sunil Vikram Sethy - Chairperson Ø Mr. Kailash Sahebrao Katkar - Member Ø Ms. Apurva Pradeep Joshi - Member Ø Mr. P. V. Bhide - Member |
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Stakeholders Relationship Committee : |
Ø Mr. Pradeep Vasudeo B hide - Chairperson Ø Mr. Mehul Mulchand Savla - Member Ø Mr. Kailash Sahebrao Katkar - Member Ø Mr. Sunil Sethy - Member |
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Nomination and Remuneration Committee : |
Ø Mr. Mehul Mulchand Savla - Chairperson Ø Mr. Sunil Vikram Sethy - Member Ø Mr. P. V. Bhide - Member |
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Corporate Social Responsibility Committee : |
Ø Ms. Apurva Pradeep Joshi - Chairperson Ø Mr. Kailash Sahebrao Katkar - Member Ø Mr. Sanjay Sahebrao Katkar - Member |
SHAREHOLDING PATTERN
AS ON March 2018
|
Category of
Shareholder |
No.
of Shares |
Percentage
of Holding |
|
(A) Promoter
& Promoter Group |
51030720 |
72.50 |
|
(B) Public |
19357463 |
27.50 |
|
Grand Total |
70388183 |
100.00 |
Statement showing shareholding pattern of the Promoter
and Promoter Group
|
Category of
Shareholder |
No.
of Shares |
Percentage
of Holding |
|
A1) Indian |
|
0.00 |
|
Individuals/Hindu
undivided Family |
51030720 |
72.50 |
|
Kailash Sahebrao
Katkar |
20511384 |
29.14 |
|
Sanjay Sahebrao
Katkar |
20511384 |
29.14 |
|
Anupama Kailash
Katkar |
5003976 |
7.11 |
|
Chhaya Sanjay
Katkar |
5003976 |
7.11 |
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Sub Total A1 |
51030720 |
72.50 |
|
A2) Foreign |
|
0.00 |
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A=A1+A2 |
51030720 |
72.50 |
Statement showing shareholding pattern of the Public
shareholder
|
Category of
Shareholder |
No.
of Shares |
Percentage
of Holding |
|
B1) Institutions |
0 |
0.00 |
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Foreign Venture Capital
Investors |
3665410 |
5.21 |
|
Sequioa capital
India investment holdings III |
3665410 |
5.21 |
|
Foreign Portfolio
Investors |
1985685 |
2.82 |
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National
Westminster Bank Plc As Trustee of The Jupiter India Fund |
1018545 |
1.45 |
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Financial Institutions/
Banks |
76321 |
0.11 |
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Sub Total B1 |
5727416 |
8.14 |
|
B2) Central
Government/ State Government(s)/ President of India |
0 |
0.00 |
|
B3)
Non-Institutions |
0 |
0.00 |
|
Individual share
capital upto INR 0.200 million |
6963952 |
9.89 |
|
Individual share
capital in excess of INR 0.200 million |
2647098 |
3.76 |
|
Ramesh Damani |
798250 |
1.13 |
|
Any Other
(specify) |
4018997 |
5.71 |
|
Sub Total B3 |
13630047 |
19.36 |
|
B=B1+B2+B3 |
19357463 |
27.50 |
BUSINESS DETAILS
|
Line of Business : |
The
company is engaged in the business of providing security software products. [Registered activity and also confirmed by management] |
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Products / Services
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Brand Names : |
Not Divulged |
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Agencies Held : |
Not Divulged |
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Exports : |
Not Divulged |
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Imports : |
Not Divulged |
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Terms : |
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Selling : |
Cash, Advance Payment, Cheque and Others (NEFT / RTGS) |
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Purchasing : |
Cash, Advance Payment, Cheque and Others (NEFT / RTGS) |
PRODUCTION STATUS – NOT AVAILABLE
GENERAL INFORMATION
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Suppliers : |
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Customers : |
End Users
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No. of Employees : |
1332 (Approximately) |
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Bankers : |
· Axis Bank Limited · Bank of India · ICICI Bank Limited · State Bank of India Limited · Yes Bank Limited · Kotak Mahindra Bank Limited · Citibank N.A. |
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Auditors : |
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|
Name : |
SRBC and Company, LLP Chartered Accountants |
|
Address : |
C-401, 4th Floor, Panchshil Tech Park, Yerwada, (Near Don Bosco School), Pune – 411006, Maharashtra, India |
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Tel. No.: |
91-20-66036000 |
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Fax No.: |
91-20-66015900 |
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Memberships : |
Not Available |
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Collaborators : |
Not Available |
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Wholly owned
subsidiaries : |
· Quick Heal Technologies America Inc., USA · Quick Heal Technologies Japan K.K., Japan · Quick Heal Technologies Africa Limited, Kenya · Quick Heal Technologies (MENA) FZE, UAE · Seqrite Technologies DMCC, UAE |
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Enterprises owned by directors or major
Shareholders : |
· Kailash Sahebrao Katkar HUF · Sanjay Sahebrao Katkar HUF · Quick Heal Foundation |
CAPITAL STRUCTURE
AFTER 31.03.2017
Authorised Capital : INR
750.000 Million
Issued, Subscribed & Paid-up Capital : INR 703.476 Million
AS ON 31.03.2017
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
75000000 |
Equity Shares |
INR 10/- each |
INR 750.000 Million |
|
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|
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
70102205 |
Equity Shares |
INR 10/- each |
INR 701.020 Million |
|
|
|
|
|
(a) Reconciliation of equity shares outstanding
at the beginning and at the end of the reporting year
|
Particulars |
As at March 31, 2017 |
|
|
Number
of Shares |
INR in Million |
|
|
At the beginning of the year |
70030028 |
700.300 |
|
Issued during the
year |
|
|
|
Employee stock option plan (ESOP) |
72177 |
0.720 |
|
Initial public offer (IPO) # |
-- |
-- |
|
Outstanding at the
end of the year |
70102205 |
701.020 |
# On February 18, 2016, the Company completed the initial public offer (IPO) through an offer of 14,057,719 equity shares of face value of INR 10 each for cash at a price of INR 321 per equity share (including a share premium of INR 311 per equity share) consisting of a fresh issue of up to 7,788,161 equity shares (the “Fresh Issue”) and an offer for sale of 6,269,558 equity shares by Kailash Katkar, Sanjay Katkar, Sequoia Capital India Investment Holdings III and Sequoia Capital India Investments III (collectively, the “Selling Shareholders”).
(b) Terms / rights attached to equity shares
The Company has only one class of equity shares having par value of INR 10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to approval of the shareholders in ensuing Annual General Meeting.
The Board of Directors, in their meeting on August 17, 2015 declared an interim dividend of INR 6.60 per equity share for the year ended March 31, 2015, which resulted in cash outflow of INR 485.11 inclusive of dividend distribution tax. The amount was recognized as distributions to equity shareholders during the year ended March 31, 2016.
The Board of Directors, in their meeting on May 11, 2016, proposed a final dividend of final 2.50 per equity share and the same was approved by the shareholders at the Annual General Meeting held on August 5, 2016. The amount was recognized as distributions to equity shareholders during the year ended March 31, 2017 and the total appropriation was final 210.73 including dividend distribution tax.
The Board of Directors, in their meeting on May 12, 2017, have proposed a final dividend of INR 2.5 per equity share for the financial year ended March 31, 2017. The proposal is subject to the approval of shareholders at the Annual General Meeting to be held and if approved would result in a cash outflow of approximately INR 210.94 including dividend distribution tax.”
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be proportion to the number of equity shares held by shareholders.
(c) Shares held by holding/ ultimate holding
company and /or their subsidiaries/ associates
None
(d) Aggregate number of shares issued for
consideration other than cash during the period of five years immediately
preceding the reporting date
|
Particulars |
As at March 31, 2017 |
As at March 31, 2016 |
As at March 31, 2015 |
|
No. |
No. |
No. |
|
|
Equity
shares allotted as fully paid up bonus shares by utilisation of securities
premium and surplus in statement of profit and loss during the Financial year
ended March 31, 2014 |
53435977 |
53435977 |
53435977 |
|
Equity shares allotted under scheme of amalgamation during the Financial year ended March 31, 2012 |
11588 |
11588 |
11588 |
(e) Details of shareholders holding more than
5% shares in the Company
|
Particulars |
As at March 31, 2017 |
|
|
No. |
% holding |
|
|
Equity shares of 10 each fully paid up |
|
|
|
Kailash Katkar |
20511384 |
29.26% |
|
Sanjay Katkar |
20511384 |
29.26% |
|
Anupama Katkar |
5003976 |
7.14% |
|
Chhaya Katkar |
5003976 |
7.14% |
|
Sequoia Capital India Investment Holdings III |
3665410 |
5.23% |
The shareholding information has been extracted from the of the Company including register of shareholders/ members and is based on legal ownership of shares.
(f) Shares reserved for issue under option
For details of shares reserved for issue under ESOP of the Company.
FINANCIAL DATA
[all figures are
INR Million]
ABRIDGED
BALANCE SHEET (STANDALONE)
|
SOURCES OF FUNDS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
701.020 |
700.300 |
610.697 |
|
(b) Reserves & Surplus |
6089.440 |
5699.670 |
2765.605 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending
allotment |
0.060 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
6790.520 |
6399.970 |
3376.302 |
|
|
|
|
|
|
(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 |
22.730 |
18.340 |
0.000 |
|
(d) long-term
provisions |
0.000 |
0.000 |
0.000 |
|
Total Non-current
Liabilities (3) |
22.730 |
18.340 |
0.000 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Trade
payables |
406.020 |
506.070 |
0.000 |
|
(c) Other
current liabilities |
285.850 |
350.540 |
443.801 |
|
(d) Short-term
provisions |
0.000 |
0.000 |
516.692 |
|
Total Current
Liabilities (4) |
691.870 |
856.610 |
960.493 |
|
|
|
|
|
|
TOTAL |
7505.120 |
7274.920 |
4336.795 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
1780.660 |
1321.550 |
1001.083 |
|
(ii)
Intangible Assets |
65.120 |
93.740 |
108.543 |
|
(iii)
Capital work-in-progress |
135.890 |
550.210 |
737.414 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
361.570 |
170.130 |
93.093 |
|
(c) Deferred tax assets (net) |
87.300 |
77.800 |
48.505 |
|
(d) Long-term Loan and Advances |
4.500 |
1.520 |
175.866 |
|
(e) Other
Non-current assets |
246.860 |
182.810 |
1.236 |
|
Total Non-Current
Assets |
2681.900 |
2397.760 |
2165.740 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
1750.820 |
1113.210 |
1296.077 |
|
(b)
Inventories |
72.220 |
53.680 |
69.618 |
|
(c) Trade
receivables |
949.900 |
969.110 |
676.572 |
|
(d) Cash and
cash equivalents |
2002.320 |
2630.520 |
73.431 |
|
(e)
Short-term loans and advances |
5.380 |
68.870 |
53.743 |
|
(f) Other
current assets |
42.580 |
41.770 |
1.614 |
|
Total
Current Assets |
4823.220 |
4877.160 |
2171.055 |
|
|
|
|
|
|
TOTAL |
7505.120 |
7274.920 |
4336.795 |
PROFIT
& LOSS ACCOUNT (STANDALONE)
|
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
||
|
|
SALES |
|
|
|
||
|
|
|
Income |
3234.420 |
3050.310 |
2840.674 |
|
|
|
|
Other Income |
33.560 |
29.050 |
81.830 |
|
|
|
|
TOTAL |
3267.980 |
3079.360 |
2922.504 |
|
|
|
|
|
|
|
||
|
Less |
EXPENSES |
|
|
|
||
|
|
|
Cost of materials consumed |
14.020 |
12.790 |
20.870 |
|
|
|
|
Purchase of security software
products |
126.990 |
120.550 |
137.147 |
|
|
|
|
(Increase)/decrease in security software products |
(9.180) |
10.250 |
(11.444) |
|
|
|
|
Employees benefits expense |
987.620 |
835.250 |
625.543 |
|
|
|
|
Other expenses |
898.310 |
938.070 |
1125.487 |
|
|
|
|
Exceptional items |
44.130 |
0.000 |
0.000 |
|
|
|
|
TOTAL |
2061.890 |
1916.910 |
1897.603 |
|
|
|
|
|
|
|
||
|
|
PROFIT/(LOSS)
BEFORE TAX, DEPRECIATION AND AMORTISATION |
1206.090 |
1162.450 |
1024.901 |
||
|
|
|
|
|
|
||
|
Less |
DEPRECIATION/
AMORTISATION |
308.670 |
236.780 |
201.829 |
||
|
|
|
|
|
|
||
|
|
PROFIT/(LOSS)
BEFORE TAX |
897.420 |
925.670 |
823.072 |
||
|
|
|
|
|
|
||
|
Less |
TAX |
305.730 |
301.890 |
260.074 |
||
|
|
|
|
|
|
||
|
|
PROFIT/(LOSS)
AFTER TAX |
591.690 |
623.780 |
562.998 |
||
|
|
|
|
|
|
||
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
||
|
|
|
Sale of software security products |
83.230 |
58.980 |
49.093 |
|
|
|
TOTAL EARNINGS |
83.230 |
58.980 |
49.093 |
||
|
|
|
|
|
|
||
|
|
IMPORTS |
|
|
|
||
|
|
|
Purchase of raw materials - Security software devices |
21.280 |
0.000 |
1.247 |
|
|
|
TOTAL IMPORTS |
21.280 |
0.000 |
1.247 |
||
|
|
|
|
|
|
||
|
|
Earnings /
(Loss) Per Share (INR) |
|
|
|
||
|
|
-
Basic |
8.45 |
10.00 |
9.22 |
||
|
|
-
Diluted |
8.40 |
9.98 |
9.09 |
||
CURRENT MATURITIES OF LONG TERM DEBT DETAILS
|
Particulars |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Current Maturities of Long term debt |
NA |
NA |
NA |
|
Cash generated from operations |
800.820 |
966.760 |
1078.315 |
|
Net cash flow from / (used in) operating activities |
497.860 |
809.850 |
781.116 |
QUARTERLY
RESULTS
|
Particulars |
30.06.2017 (Unaudited) |
30.09.2017 (Unaudited) |
31.12.2017 (Unaudited) |
|
|
1st
Quarter |
2nd
Quarter |
3rd Quarter |
|
Net sales |
297.220 |
1045.320 |
635.880 |
|
Total Expenditure |
455.120 |
442.400 |
504.700 |
|
PBIDT (Excluding Other Income) |
(157.900) |
602.920 |
131.180 |
|
Other income |
54.630 |
56.940 |
51.700 |
|
Operating Profit |
(103.270) |
659.860 |
182.880 |
|
Interest |
NA |
NA |
NA |
|
Exceptional Items |
NA |
NA |
(3.280) |
|
PBDT |
(103.270) |
659.860 |
179.600 |
|
Depreciation |
64.100 |
67.630 |
67.940 |
|
Profit Before Tax |
(167.370) |
592.230 |
111.660 |
|
Tax |
(56.520) |
199.510 |
31.990 |
|
Provisions and
contingencies |
NA |
NA |
NA |
|
Profit after tax |
(110.850) |
392.720 |
79.670 |
|
Extraordinary Items |
NA |
NA |
NA |
|
Prior Period Expenses |
NA |
NA |
NA |
|
Other Adjustments |
NA |
NA |
NA |
|
Net Profit |
(110.850) |
392.720 |
79.670 |
KEY
RATIOS
EFFICIENCY RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Average Collection Days (Sundry
Debtors / Income * 365 Days) |
107.19 |
115.96 |
86.93 |
|
|
|
|
|
|
Account Receivables Turnover (Income / Sundry Debtors) |
3.41 |
3.15 |
4.20 |
|
|
|
|
|
|
Average Payment Days (Sundry Creditors / Purchases * 365 Days) |
1050.97 |
1385.30 |
0.00 |
|
|
|
|
|
|
Inventory Turnover (Operating Income / Inventories) |
16.70 |
21.66 |
14.72 |
|
|
|
|
|
|
Asset Turnover (Operating Income / Net Fixed Assets) |
0.61 |
0.59 |
0.55 |
LEVERAGE RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Debt Ratio ((Borrowing
+ Current Liabilities) / Total Assets) |
0.09 |
0.12 |
0.22 |
|
|
|
|
|
|
Debt Equity Ratio (Total Liability / Networth) |
0.00 |
0.00 |
0.00 |
|
|
|
|
|
|
Current Liabilities to Networth (Current Liabilities / Net Worth) |
0.10 |
0.13 |
0.28 |
|
|
|
|
|
|
Fixed Assets to Networth (Net Fixed Assets / Networth) |
0.29 |
0.31 |
0.55 |
PROFITABILITY RATIOS
|
PARTICULARS |
|
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
PAT to Sales ((PAT
/ Sales) * 100) |
% |
18.29 |
20.45 |
19.82 |
|
|
|
|
|
|
|
Return on Total Assets ((PAT / Total Assets) * 100) |
% |
7.88 |
8.57 |
12.98 |
|
|
|
|
|
|
|
Return on Investment (ROI) ((PAT / Networth) * 100) |
% |
8.71 |
9.75 |
16.67 |
SOLVENCY RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Current Ratio (Current
Assets / Current Liabilities) |
6.97 |
5.69 |
2.26 |
|
|
|
|
|
|
Quick Ratio ((Current Assets – Inventories) / Current
Liabilities) |
6.87 |
5.63 |
2.19 |
|
|
|
|
|
|
G-Score Ratio Financial (Networth / Total Assets) |
0.90 |
0.88 |
0.78 |
|
|
|
|
|
|
G-Score Ratio Debt (Debts / Equity Capital) |
0.00 |
0.00 |
0.00 |
|
|
|
|
|
|
G-Score Ratio Liquidity (Total Current Assets / Total Current Liabilities) |
6.97 |
5.69 |
2.26 |
Total
Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term
debts
STOCK
PRICES
|
Face Value |
INR 10.00/- |
|
Market Value |
INR 327.40/- |
FINANCIAL ANALYSIS
[all figures are
INR Million]
DEBT EQUITY RATIO
|
Particular |
31.03.2015 |
31.03.2016 |
31.03.2017 |
|
|
INR
In Million |
INR
In Million |
INR
In Million |
|
Share Capital |
610.697 |
700.300 |
701.020 |
|
Reserves & Surplus |
2765.605 |
5699.670 |
6089.440 |
|
Share Application money pending
allotment |
0.000 |
0.000 |
0.060 |
|
Net
worth |
3376.302 |
6399.970 |
6790.520 |
|
|
|
|
|
|
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 |
31.03.2015 |
31.03.2016 |
31.03.2017 |
|
|
INR
In Million |
INR
In Million |
INR
In Million |
|
Sales |
2840.674 |
3050.310 |
3234.420 |
|
|
|
7.380 |
6.036 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2015 |
31.03.2016 |
31.03.2017 |
|
|
INR
In Million |
INR
In Million |
INR
In Million |
|
Sales
|
2840.674 |
3050.310 |
3234.420 |
|
Profit |
562.998 |
623.780 |
591.690 |
|
|
19.82% |
20.45% |
18.29% |
ABRIDGED
BALANCE SHEET (CONSOLIDATED)
|
SOURCES OF FUNDS |
|
31.03.2017 |
31.03.2016 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
701.020 |
700.300 |
|
(b) Reserves &
Surplus |
|
5915.530 |
5593.210 |
|
(c) Money received
against share warrants |
|
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application
money pending allotment |
|
0.060 |
0.000 |
|
Total Shareholders’ Funds
(1) + (2) |
|
6616.610 |
6293.510 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term borrowings |
|
0.000 |
0.000 |
|
(b) Deferred tax
liabilities (Net) |
|
0.000 |
0.000 |
|
(c) Other long term liabilities |
|
22.730 |
18.340 |
|
(d) long-term provisions |
|
0.000 |
0.000 |
|
Total Non-current
Liabilities (3) |
|
22.730 |
18.340 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
|
0.000 |
0.000 |
|
(b) Trade payables |
|
408.960 |
509.850 |
|
(c) Other current
liabilities |
|
286.940 |
351.590 |
|
(d) Short-term provisions |
|
0.000 |
0.000 |
|
Total Current Liabilities
(4) |
|
695.900 |
861.440 |
|
|
|
|
|
|
TOTAL |
|
7335.240 |
7173.290 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
|
1782.230 |
1323.540 |
|
(ii) Intangible Assets |
|
65.390 |
93.740 |
|
(iii) Capital
work-in-progress |
|
135.890 |
550.580 |
|
(iv) Intangible assets
under development |
|
0.000 |
0.000 |
|
(b) Non-current
Investments |
|
66.660 |
40.080 |
|
(c) Deferred tax assets
(net) |
|
87.300 |
77.800 |
|
(d) Long-term Loan and Advances |
|
4.500 |
1.520 |
|
(e) Other Non-current
assets |
|
246.620 |
179.380 |
|
Total Non-Current Assets |
|
2388.590 |
2266.640 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
|
1750.820 |
1113.210 |
|
(b) Inventories |
|
79.400 |
66.690 |
|
(c) Trade receivables |
|
971.830 |
923.810 |
|
(d) Cash and cash
equivalents |
|
2093.700 |
2690.540 |
|
(e) Short-term loans and
advances |
|
6.210 |
70.190 |
|
(f) Other current assets |
|
44.690 |
42.210 |
|
Total Current Assets |
|
4946.650 |
4906.650 |
|
|
|
|
|
|
TOTAL |
|
7335.240 |
7173.290 |
PROFIT & LOSS ACCOUNT (CONSOLIDATED)
|
|
PARTICULARS |
|
31.03.2017 |
31.03.2016 |
|
|
SALES |
|
|
|
|
|
Income |
|
3243.930 |
3086.310 |
|
|
Other Income |
|
40.310 |
33.620 |
|
|
TOTAL |
|
3284.240 |
3119.930 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of materials consumed |
|
19.430 |
39.600 |
|
|
Purchase
of security software products |
|
128.560 |
123.370 |
|
|
(Increase)/decrease in security
software products |
|
(4.100) |
5.660 |
|
|
Employees benefits expense |
|
1028.050 |
866.600 |
|
|
Other expenses |
|
926.350 |
966.510 |
|
|
Exceptional items |
|
37.800 |
0.000 |
|
|
TOTAL |
|
2136.090 |
2001.740 |
|
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE
TAX, DEPRECIATION AND AMORTISATION |
|
1148.150 |
1118.190 |
|
|
|
|
|
|
|
Less |
DEPRECIATION/
AMORTISATION |
|
309.440 |
237.120 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE TAX |
|
838.710 |
881.070 |
|
|
|
|
|
|
|
Less |
TAX |
|
306.440 |
301.990 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) AFTER TAX
|
|
532.270 |
579.080 |
|
|
|
|
|
|
|
|
Earnings / (Loss) Per
Share (INR) |
|
|
|
|
-
Basic |
|
7.60 |
9.29 |
|
|
-
Diluted |
|
7.55 |
9.27 |
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 |
Yes |
|
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 |
No |
|
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 |
Yes |
|
17 |
Details of sister concerns |
Yes |
|
18 |
Major suppliers |
No |
|
19 |
Major customers |
No |
|
20 |
Banking Details |
Yes |
|
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 |
Yes |
|
35 |
Negative Reporting by Auditors in the
Annual Report |
No |
CORPORATE INFORMATION
The Company, a public company domiciled In India, was incorporated on August 7, 1995 under the Companies Act, 1956. The CIN of the Company is L72200MH1995PLC091408. The Company’s shares are listed on the BSE Limited ('BSE') and National Stock Exchange of India Limited ('NSE') w.e.f. February 18, 2016. The registered office of the Company is located at Marvel Edge, Office No.7010 C & D, 7th Floor, Viman Nagar, Pune – 411014, Maharashtra, India.
The consolidated financial statements comprise the financial statements of the Company and its subsidiaries (together referred to as “the Group”).
The Group is engaged in the business of providing security software products. The Group caters to both domestic and international market.
The consolidated financial statements of the Group for the year ended March 31, 2017 were authorised for issue in accordance with a resolution of the Board of Directors on May 12, 2017.
BUSINESS OPERATIONS
AND OUTLOOK
The Company recorded a total income of INR 3284.240 million for the financial year 2016-17 as against INR 3119.930 million in 2015-16 resulting in marginal increase in revenue during the year. The Company continued to position itself as one of the leading players in market. Indian cyber security market is currently valued at $4 billion and is expected to grow to $35 billion by 2025 which is a nine fold increase while the global security market is expected to reach US$ 190 Billion by year 2025 from the approximately US$ 85 billion today. Your Company’s continued investments in innovation and technology has enabled it to undertake a number of diverse projects and adapt to the ever changing needs of consumers.
The Company also partnered with an ambitious initiative launched by the Government of India, Cyber Swachhta Kendra (CSK), which is a botnet cleaning and malware analysis center. It aims to bring in enhanced security measures to Indian users and secure the cyber ecosystem. This is a huge leap of Government of India, partnered by the Company, in the Digital India Mission. Botnets can cause a wreck in the internet, especially so for India, as it is one of the highly botnet infected countries in the world.
MANAGEMENT DISCUSSION
AND ANALYSIS
ECONOMIC
OVERVIEW
The Indian economy remains a bright spot in the global land scape. Data released by the Central Statistics office showed gross Domestic Product registered a growth of 7.1% during FY 20 17, compared with 8% in the previous fiscal year of FY 2016. The International Monetary Fund (IMF) projected the growth to drop to 6.6% in 2016-17 due to temporary disruptions caused by the demonetisation of high-value currency notes in November 2016.
According to Paul A. Cashin, Assistant Director, IMF’s Asia and Pacific Department, halving of global oil prices boosted economic activities in India, improved external current account and fiscal positions, and helped lower inflation. In addition to this, continued fiscal consolidation by reducing government deficits and debt accumulation, and an anti-inflationary monetary policy stance have helped cement the macro-economic stability. The impending introduction of Goods and Services Tax (GST) is creating a common Indian market, improving tax compliance and governance, and boosting investment and growth. It is also a bold new experiment in the governance of India’s c o-operative federalism.
IMF expects India to resume its growth path above 8% per annum in the medium term, since the short-term dislocation to consumption from demonetisation has passed away. The economy is expected to reach US$ 5 trillion by FY 2025, M organ Stanley stated in its research note, expecting the per capita income to rise 125% to US$ 3,650 by FY 2025.
WORLD’S 7TH LARGEST ECONOMY
India’s US $ 2.2 trillion economy makes it the 7th largest in the world in terms of nominal GDP. With a per capita income of US $ 1,700, India ranks well behind some of the key emerging markets such as China, Russia, Brazil, Indonesia, Philippines, Mexico, and Turkey. India – a country of around 1.25 billion people - is on a cusp of high growth. With a GDP growth rate that appears to outstrip that of China, it is already billed as one of the fastest growing/expanding markets in the world.
The global economic order is expected to shift from advanced to emerging economies over the next few decades, and by 2040 India could edge past the US to become the world’s second largest economy in purchasing power parity (PPP) terms, according to a report of Price Waterhouse Coopers. According to the Report, E7 economies comprising Brazil, China, India, Indonesia, Mexico, Russia, and Turkey would grow at an annual average rate of almost 3.5 % over the next 34 years, compared to just 1.6% for the advanced G7 nations of Canada, France, Germany, Italy, Japan, the UK, and the US. The E7 could comprise almost 50% of the world GDP by 2050, while the G7’s share declines to only just over 20%, according to PWC’s chief economist and co-author of the report, John Hawksworth.
INDUSTRY OVERVIEW
GLOBAL CYBER SECURITY
MARKET
The global cyber security market is expected to reach U S $ 190 billion by 2025; up from US$ 85 billion in 2016. This will be primarily driven by increasing digitisation wave and smartphone penetration, according to a report by Nasscom and the Data Security Council of India (DSCI) – “Growing Cyber Security Industry – Roadmap for India”. Enterprises and the Government constitute 80% of the market. While small and medium-sized businesses currently represent a smaller pool, they are expected to demonstrate the highest growth rates, d riven by increased awareness and vulnerability to cyber-attacks, ad option of platforms such as BYOD (Bring Your Own Device) and increasing affordability of managed security services (MSS), the report said.
FUTURE OUTLOOK
Social, Mobility, Analytics, and Cloud (SMAC) are collectively expected to offer a US$ 1 trillion opportunity. Cloud represents the largest opportunity under SMAC, increasing at a CAGR of approximately 30% to around US$ 650-700 billion by 2020. The social media is the second most lucrative segment for IT firms, offering a US$ 250 billion market opportunity by 2020. The Indian e-commerce segment is U S $ 12 billion in size and is witnessing strong growth and thereby offers another attractive avenue for IT companies to develop products and services to cater to the high growth consumer segment.
A host of malware is seen on the rise in India. Malware like Stuxnet, Duqu, Flame, Uroburos/Snake, Blackshades and many others are seen making their w ay for network disruption. India will possess a lot of intellectual property by the end of 2018. With an exponential growth in FDI and MNCs eager to ride the digitisation wave in India, India will be a tempting target for cyber-attacks.
Recently, India has been hit by Ransomware attack s which have been continuously penetrating India’s Internet ecosystem and blocking data for ransom. Ransomware distribution between January 2016 and November 2016 increased by 267%. This is an unprecedented domination of the threat landscape like nothing we’ve seen before.
STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS
ENDED 31ST DECEMBER 2017
(INR In Million)
|
Particulars |
Quarter ended |
Nine Months ended |
|
|
|
31.12.2017 |
30.09.2017 |
31.12.2017 |
|
|
Unaudited |
||
|
INCOME FROM OPERATIONS |
|
|
|
|
Net Sales |
635.880 |
1045.320 |
1978.420 |
|
Other Operating Income |
51.700 |
56.940 |
163.270 |
|
Total
Income from Operations |
687.580 |
1102.260 |
2141.690 |
|
|
|
|
|
|
EXPENSES |
|
|
|
|
Cost of materials consumed |
(2.600) |
1.590 |
1.390 |
|
Purchase of Stock in Trade |
17.440 |
17.220 |
42.190 |
|
Changes in inventories security software products |
8.070 |
22.640 |
30.480 |
|
Employee benefits expense |
237.610 |
256.930 |
750.260 |
|
Depreciation and Amortization expenses |
67.940 |
67.630 |
199.670 |
|
Other Expenditure |
244.180 |
144.020 |
577.900 |
|
Total
Expenses |
572.640 |
510.030 |
1601.890 |
|
Profit / (Loss) from ordinary activities before
Exceptional items |
114.940 |
592.230 |
539.800 |
|
Exceptional items |
3.280 |
-- |
3.280 |
|
Profit / (Loss) before Tax |
111.660 |
592.230 |
536.520 |
|
Tax Expense |
31.990 |
199.510 |
174.980 |
|
Profit
/ (Loss) after Tax |
79.670 |
392.720 |
361.540 |
|
Other Comprehensive Income, net of tax |
|
|
|
|
Other comprehensive income not to be reclassified to profit or loss in
subsequent periods: |
|
|
|
|
·
Re-measurement of
defined benefit plans |
3.490 |
2.550 |
3.620 |
|
·
Net (loss) or gain on
FVTOCI assets |
-- |
-- |
-- |
|
Total other Comprehensive Income |
3.490 |
2.550 |
3.620 |
|
Total Comprehensive Income (after tax) |
83.160 |
395.270 |
365.160 |
|
Paid-up Equity Share Capital (Face value INR 10/- per
share) |
|
|
|
|
Reserves (excluding Revaluation Reserve) |
|
|
|
|
Earnings per Share (EPS) - INR |
|
|
|
|
-
Basic |
1.13 |
5.60 |
5.15 |
|
-
Diluted |
1.13 |
5.58 |
5.14 |
NOTES:
1. The above financial results for the quarter and nine month ended December 31, 2017 have been subjected to limited review by the auditors of the Company and reviewed by the Audit Committee and approved by the Board of Directors of the Company at the respective meetings held on February 6, 2018 and February 7, 2018.
2. During the previous quarter and earlier years, the Company has received three statements of demand of service tax under the provisions of Finance Act, 1994 for INR 1,223.07 million (excluding penalty of INR 589.26 million) covering the period from March 01, 2011 to March 31, 2016 on supply of anti-virus software in Compact Disk. The Company had filed an appeal with Customs, Excise and Service Tax Appellate Tribunal, New Delhi for the period March 01, 2011 to March 31, 2014 and with the Customs, Excise and Service Tax Appellate Tribunal, Mumbai for the period April 01, 2014 to March 31, 2015. The Company is in the process of filling as appeal against the Service tax order received amounting to INR 377.01 million (included in above amount) pertaining to period April 01, 2015 to March 31, 2016. Based on technical circular issued by the government authorities and an independent legal opinion, the Company is confident of getting this claim set aside and accordingly no provision has been considered necessary in this regard and also for the subsequent period till June 30, 2017 (before implementation of GST).
In addition to above, during the previous and current quarter, the Company has received letter for submission of the sales information pertaining to period April 01, 2016 to March 31, 2017 and from April 01, 2017 to June 30, 2017 respectively. Accordingly, the Company has submitted the required information during the previous and the current quarters.
3. The Company is engaged in providing security software solutions. The Chief Operating Decision Maker (CODM) reviews the information pertaining to revenue of each of the target customer group (segments) viz. retail, enterprise & government and mobile. However, based on similarity of activities/products, risk and reward structure, organization structure and internal reporting systems, the Company has structured its operations into one operating segment viz. anti-virus and as such there is no separate reportable operating segment as defined by Ind AS 108 "Operating segments".
4. Post implementation of Goods and Services Tax (GST) w.e.f. July 1, 2017, "Revenue from operations" has been disclosed net of GST.
5. Exceptional item for the quarter and nine months ended December 31, 2017 represents impairment of investment with respect to a subsidiary amounting to INR 3.28 million.
INDEX OF CHARGES:
|
S No |
SRN |
Charge Id |
Charge Holder Name |
Date of Creation |
Date of Modification |
Date of Satisfaction |
Amount |
Address |
|
1 |
A88728977 |
10061355 |
CITI BANK NA |
21/12/2006 |
- |
02/07/2010 |
6000000.0 |
KUMAR CAPITAL,2413, EAST STREET PUNE MH411001IN |
|
2 |
A88716048 |
10060661 |
CITI BANK NA |
25/03/2006 |
- |
16/06/2010 |
17000000.0 |
KUMAR CAPITAL,2413, EAST STREET PUNE MH411001IN |
|
3 |
A88077599 |
10092015 |
CITY BANK N.A. |
23/02/2008 |
- |
03/06/2010 |
50000000.0 |
KUMAR CAPITAL,2413, EAST STREET PUNE MH411001IN |
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2017 INR In Million |
31.03.2016 INR In Million |
|
Claims against the
Company not acknowledged as debts |
|
|
|
Service tax (i) |
560.710 |
560.710 |
|
Service tax (ii) |
285.350 |
285.350 |
|
Kerala Value Added Tax (iii) |
0.150 |
0.150 |
|
Income tax (iv) |
-- |
3.500 |
|
|
846.210 |
849.710 |
|
i) During the year ended March 31, 2016, the Company had received a statement of demand dated January 28, 2016 in relation to service tax for INR 560.710 million (excluding penalty of INR 560.720 million) for the period from March 01, 2011 to March 31, 2014 on antivirus software in Compact Disk issued by Additional Director General, New Delhi. The Company had filed an appeal with the Customs, Excise and Service Tax Appellate Tribunal against the said order. The management has represented, based on legal opinion obtained by the Company, that they have sufficient and strong arguments on fact as well as on point of law and outflow is not probable. Accordingly, no provision for liability has been recognised in the financial statements and the demand has been disclosed as contingent liability as at March 31, 2017, March 31, 2016 and April 1, 2015. ii) During the year ended March 31, 2016, the Company had received statement of demand dated January 25, 2016, in relation to the Service tax of INR 285.350 million (excluding interest and penalties) for the period April 2014 to March 2015 on supply of anti-virus replicated CDs/DVDs along with license keys through dealers/ distributors to end customers in India issued by Principal Commissioner of Service tax, Pune. During the year ended March 31, 2017, the Company has received an order dated March 31, 2017 confirming the demand of INR 285.350 million (excluding penalty of INR 28.550 million). The Company is in the process of filing a reply against the said notice with appropriate authority. The management has represented, based on legal opinion obtained by the Company, that they have sufficient and strong arguments on fact as well as on point of law and outflow is not probable. Accordingly, no provision for liability has been recognised in the financial statements and the demand has been disclosed as contingent liability as at March 31, 2017, March 31, 2016 and April 1, 2015. Based on the grounds mentioned in point (i) and (ii) above, the Company has not recognised provision for liability in the financial statements in relation to the potential consequential liability for service tax for the period April 1, 2015 to March 31, 2017.” iii) During the year ended March 31, 2015, the Company had received a notice of demand of VAT in the state of Kerala for INR 0.15 (VAT INR 0.13; Interest INR 0.02 and excluding penalty) on the ground of dispute in the stock transfer of anti-virus products transferred to the Branch. The Company had appealed the same before the first level appellate authority and the management had represented that they have sufficient and strong arguments on facts as well as on point of law and outflow is not probable. Accordingly, no provision for liability has been recorded in the financial statements and the demand has been disclosed as contingent liability as at March 31, 2017, March 31, 2016 and April 1, 2015. iv) This represented disputed income tax demand of INR 3.50 (including interest of INR 0.36 and excluding penalty) under section 156 of the Income-tax Act, 1961 related to A.Y. 2010-11. The Company had filed appeals against assessment order with relevant authorities and have received favourable order. |
||
FIXED ASSETS:
·
Building
·
Computer
·
Electrical Installations
·
Furniture and Fixture
·
Office Equipments
·
Vehicles
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records 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
|
INR |
|
US Dollar |
1 |
INR 66.02 |
|
|
1 |
INR 92.73 |
|
Euro |
1 |
INR 81.46 |
INFORMATION DETAILS
|
Information
Gathered by : |
ARC |
|
|
|
|
Analysis Done by
: |
PRY |
|
|
|
|
Report Prepared
by : |
NKT |
SCORE FACTORS
|
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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on
secured terms only |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
|
NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.