|
|
|
MIRA INFORM REPORT
|
Report No. : |
492610 |
|
Report Date : |
17.02.2018 |
IDENTIFICATION DETAILS
|
Name : |
SONATA SOFTWARE LIMITED |
|
|
|
|
Registered
Office : |
208, T V Industrial Estate, 2nd Floor, S. K. Ahire Marg, Worli,
Mumbai – 400030, Maharashtra |
|
Tel. No.: |
91-22-24943055 |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2017 |
|
|
|
|
Date of
Incorporation : |
18.10.1994 |
|
|
|
|
Com. Reg. No.: |
11-082110 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
INR 105.159 Million |
|
|
|
|
CIN No.: [Company Identification
No.] |
L72200MH1994PLC082110 |
|
|
|
|
IEC No.: |
0795004567 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
Not Available |
|
|
|
|
GSTIN : |
27AABCS8459D1Z6 |
|
|
|
|
PAN No.: [Permanent Account No.] |
AABCS8459D |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Subject is engaged in the business of providing IT Services and
Software Solutions. (Registered activity) |
|
|
|
|
No. of Employees
: |
3004 (Approximately) |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
|
MIRA’s Rating : |
A+ |
|
Credit Rating |
Explanation |
Rating Comments |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject was incorporated in the year 1994 having fine track record. It
is engaged in providing IT solutions and services. For the financial year 2017, the company has achieved decent growth in
its revenue as compared to its previous year along with fair profitability
margin during the year. Rating takes into consideration, the robust financial risk profile
marked by adequate networth base and strong debt protection metrics. Rating continue to derive strength from its long and established track
record of its business operations backed by its extensive experience of the
promoters and strong market position in the IT service sector. The company is listed on BSE and NSE and the price quoted at BSE is
held at 337.90 against the face value of INR 1. Further, as per quarterly results of December 2017, the company has
registered steady operating margins. However, these rating strengths gets partially offset by geographical
concentration as most of the revenue is generated from export market and intense
industry competition in IT sector. Payments seems to be regular and as per commitment. 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
|
Rating Agency Name |
CRISIL RATING |
|
Rating |
Long Term Rating = A |
|
Rating Explanation |
Adequate degree of safety and low credit risk |
|
Date |
13.07.2017 |
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
31-03-2016.
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 17.02.2018.
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 DENIED
Management non-cooperative (Tel. No.: 91-22-24943055 / 91-80-67781999)
LOCATIONS
|
Registered Office : |
208, T V Industrial Estate, 2nd Floor, S. K. Ahire Marg,
Worli, Mumbai – 400030, Maharashtra, India |
|
Tel. No.: |
91-22-24943055 |
|
Fax No.: |
91-22-24936973 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
1/4, APS Trust
Building, 2 Floor, Bull Temple Road, N. R. Colony, Bangalore - 560 019,
Karnataka, India |
|
Tel. No.: |
91-80-67781999/ 67782609 |
|
Fax No.: |
91-80-26610792 |
|
|
|
|
Branch Offices : |
Located At : · Bangalore · Chennai · Hyderabad · Kolkata · New Delhi · Pune |
DIRECTORS
As on 31.03.2017
|
Name : |
Mr. Pradip Panalal Shah |
|
Designation : |
Chairman |
|
Address : |
72A Embassy Apartments 7th Floor, Napean Sea Road, Mumbai – 400006, Maharashtra, India |
|
Date of Appointment : |
14.07.1998 |
|
DIN No.: |
00066242 |
|
|
|
|
Name : |
Mr. Shyam Bhupatirai Ghia |
|
Designation : |
Director |
|
Address : |
Ghia Mansion, 18 Carmichael Road, Mumbai – 400026, Maharashtra, India |
|
Date of Appointment : |
26.05.1997 |
|
DIN No.: |
00005264 |
|
|
|
|
Name : |
Mr. Viren Rajan Raheja |
|
Designation : |
Director |
|
Address : |
"Rahejas", 87/1, G. B. Marg, Juhu, Mumbai – 400049, Maharashtra, India |
|
Date of Appointment : |
17.04.2008 |
|
DIN No.: |
00037592 |
|
|
|
|
Name : |
Mr. Srikar Palem Reddy |
|
Designation : |
Managing Director and Chief Executive Officer |
|
Address : |
306, Raheja Mansion 13, Milton Street, Cooke Town, Bangalore – 560005, Karnataka, India |
|
Date of Appointment : |
20.10.1999 |
|
DIN No.: |
00001401 |
|
|
|
|
Name : |
Mr. Suresh Narsappa Talwar |
|
Designation : |
Director |
|
Address : |
10, Shiv Shanti Bhuvan, 146, Maharshi Karve Road,
Churchgate Reclamation, Mumbai – 400020, Maharashtra, India |
|
Date of Appointment : |
30.10.2002 |
|
DIN No.: |
00001456 |
|
|
|
|
Name : |
Mr. Brijendra Kumar Syngal |
|
Designation : |
Director |
|
Address : |
218, Mandakini Enclave Alakananda, New Delhi – 110019, India |
|
Date of Appointment : |
15.01.2004 |
|
DIN No.: |
00002395 |
|
|
|
|
Name : |
Mrs. Radhika Govind Rajan |
|
Designation : |
Director |
|
Address : |
111 Central Park North Apt. 9C New York, NY 10026 New York 10026 US |
|
Date of Appointment : |
12.08.2014 |
|
DIN No.: |
00499485 |
KEY EXECUTIVES
|
Name : |
Prasanna Pramod Oke |
|
Designation : |
Chief Financial Officer (KMP) |
|
Address : |
Olive 701, Prestige St John Wood Thaverkere Road,
Bangalore – 560029, Karnataka, India |
|
Date of Appointment : |
20.05.2015 |
|
PAN No.: |
AABPO1162C |
|
|
|
|
Name : |
Kundan Kumar Lal |
|
Designation : |
Company Secretary |
|
Address : |
No1 8203 Anriya Dwellington I Main Rmv II Dollars Colony
Lott, Bangalore – 560094, Karnataka, India |
|
Date of Appointment : |
02.11.2016 |
|
PAN No.: |
ABDPL9472D |
|
|
|
|
COMMITTEES OF THE
BOARD |
|
|
Audit Committee |
B K Syngal, Chairman S B Ghia Pradip P Shah S N Talwar Radhika Rajan |
|
|
|
|
Stakeholders
Relationship Committee |
S B Ghia, Chairman P Srikar Reddy Radhika Rajan |
|
|
|
|
Nomination &
Remuneration Committee |
S N Talwar, Chairman S B Ghia B K Syngal Viren Raheja |
|
|
|
|
Corporate Social
Responsibility Committee |
S B Ghia, Chairman S N Talwar P Srikar Reddy |
|
|
|
|
Risk Management
Committee |
Pradip P Shah S N Talwar P Srikar Reddy |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2017
|
Category of
shareholder |
Total nos.
shares held |
Shareholding as
a % of total no. of shares (calculated as per SCRR, 1957)As a % of (A+B+C2) |
|
|
(A) Promoter & Promoter Group |
32550161 |
30.95 |
|
|
(B) Public |
71199270 |
67.71 |
|
|
(C1) Shares underlying DRs |
0.00 |
|
|
|
(C2) Shares held by Employee Trust |
1409875 |
1.34 |
|
|
Grand Total |
105159306 |
100.00 |
|
Statement showing shareholding pattern of
the Promoter and Promoter Group
|
Category of
shareholder |
Total nos.
shares held |
Shareholding as a
% of total no. of shares (calculated as per SCRR, 1957)As a % of (A+B+C2) |
|
|
A1) Indian |
0.00 |
|
|
|
Individuals/Hindu undivided Family |
29452210 |
28.01 |
|
|
Bela M Dalal |
223500 |
0.21 |
|
|
Mukund Dharamdas Dalal |
1036260 |
0.99 |
|
|
Suman R Raheja |
6900000 |
6.56 |
|
|
Shyam Bhupatirai Ghia |
5000 |
0.00 |
|
|
Rajan B Raheja |
4787450 |
4.55 |
|
|
Akshay Rajan Raheja |
8250000 |
7.85 |
|
|
Viren Rajan Raheja |
8250000 |
7.85 |
|
|
Any Other (Specify) |
3097951 |
2.95 |
|
|
Bhupati Investments And Finance Private Limited |
1561951 |
1.49 |
|
|
Excelsior Construction Company Private Limited |
1150000 |
1.09 |
|
|
Daltreya Investment & Finance Private Limited |
100000 |
0.10 |
|
|
Gstaad Investment & Finance Private Limited |
143000 |
0.14 |
|
|
Trophy Investment & Finance Private Limited |
143000 |
0.14 |
|
|
Sub Total A1 |
32550161 |
30.95 |
|
|
A2) Foreign |
0.00 |
|
|
|
A=A1+A2 |
32550161 |
30.95 |
|
Statement
showing shareholding pattern of the Public shareholder
|
Category & Name
of the Shareholders |
Total no. shares
held |
Shareholding %
calculated as per SCRR, 1957 As a % of (A+B+C2) |
|
|
B1) Institutions |
0.00 |
|
|
|
Mutual Funds/ |
4485183 |
4.27 |
|
|
HDFC Small Cap Fund |
2876500 |
2.74 |
|
|
Foreign Portfolio Investors |
13854114 |
13.17 |
|
|
Orange Mauritius Investments Limited |
1844171 |
1.75 |
|
|
Credit Suisse (Singapore) Limited |
1183049 |
1.13 |
|
|
Goldman Sachs India Limited |
3809571 |
3.62 |
|
|
Financial Institutions/ Banks |
47988 |
0.05 |
|
|
Sub Total B1 |
18387285 |
17.49 |
|
|
B2) Central Government/ State Government(s)/ President of India |
0.00 |
|
|
|
B3) Non-Institutions |
0.00 |
|
|
|
Individual share capital upto INR 0.200 Million |
23454154 |
22.30 |
|
|
Individual share capital in excess of INR 0.200 Million |
16867433 |
16.04 |
|
|
Hemendra M Kothari |
10660026 |
10.14 |
|
|
NBFCs registered with RBI |
137804 |
0.13 |
|
|
Any Other (specify) |
12352594 |
11.75 |
|
|
Trusts |
2700 |
0.00 |
|
|
NRI |
554431 |
0.53 |
|
|
Clearing Members |
227505 |
0.22 |
|
|
Director or Director's Relatives |
1440228 |
1.37 |
|
|
Srikar Palem Reddy |
1390228 |
1.32 |
|
|
NRI – Non- Repat |
497700 |
0.47 |
|
|
Bodies Corporate |
7624517 |
7.25 |
|
|
I E P F |
199156 |
0.19 |
|
|
HUF |
1806357 |
1.72 |
|
|
Sub Total B3 |
52811985 |
50.22 |
|
|
B=B1+B2+B3 |
71199270 |
67.71 |
|
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in the business of providing IT Services and
Software Solutions. (Registered activity) |
||||
|
|
|
||||
|
Products : |
|
||||
|
|
|
||||
|
Brand Names : |
Not Divulged |
||||
|
|
|
||||
|
Agencies Held : |
Not Divulged |
||||
|
|
|
||||
|
Exports : |
Not Divulged |
||||
|
|
|
||||
|
Imports : |
Not Divulged |
||||
|
|
|
||||
|
Terms : |
Not Divulged |
PRODUCTION STATUS NOT AVAILABLE
GENERAL INFORMATION
|
Suppliers : |
|
||||||||||||||||||
|
|
|
||||||||||||||||||
|
Customers : |
|
||||||||||||||||||
|
|
|
||||||||||||||||||
|
No. of Employees : |
3004 (Approximately) |
||||||||||||||||||
|
|
|
||||||||||||||||||
|
Bankers : |
|
||||||||||||||||||
|
|
|
||||||||||||||||||
|
Facilities : |
|
|
Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
Address : |
Anchorage II, 100/2, Richmond Road, Bengaluru – 560025, Karnataka,
India |
|
Tel. No.: |
91-80-66276000 |
|
Mobile No.: |
91-80-66276013 |
|
|
|
|
Memberships : |
Not Available |
|
|
|
|
Collaborators : |
Not Available |
|
|
|
|
Wholly owned
Subsidiaries (WOS) : |
|
|
|
|
|
Subsidiary : |
|
CAPITAL STRUCTURE
As on 31.03.2017
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
150000000 |
Equity Shares |
INR 1/- each |
INR 150.000 Million |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
105159306 |
Equity Shares |
INR 1/- each |
INR 105.159
Million |
|
|
|
|
|
i)
Reconciliation of number of
shares and amount outstanding at the beginning and at the end of the reporting
year
|
PARTICULARS |
Opening
balance |
Fresh issue / Other Changes |
Closing
balance |
|
Equity shares with voting rights |
|
|
|
|
Year ended 31st March 2017 |
|
|
|
|
Number of shares |
105159306 |
-- |
105159306 |
|
Amount [INR In Million] |
105.159 |
-- |
105.159 |
ii)
Details
of rights, preferences and restrictions attached to each class of shares
The
Company has equity shares having a par value of INR 1/-. Each shareholder is
entitled for one vote per share. The shareholders have the right to receive interim
dividends declared by the Board of directors and final dividends proposed by
the Board and approved by the shareholders
In the event of liquidation by the Company,
the holders of the equity shares will be entitled to receive in proportion to
the number of equity shares held by them, the remaining assets of the Company.
The shareholders have all other rights as
available to equity shareholders as per the provisions of the 2013 Act, read
together with the Memorandum of Association and Articles of Association of the
Company, as applicable.
iii)
Details of shares held by
each shareholder holding more than 5% shares
|
Particulars |
31.03.2017 |
|
|
No.
of Shares |
% of
Holdings |
|
|
Hemendra M Kothari |
10660026 |
10.14 |
|
Akshay Raheja |
8250000 |
7.85 |
|
Viren Raheja |
8250000 |
7.85 |
|
Suman Raheja |
6900000 |
6.56 |
FINANCIAL DATA
[all figures are
in 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 |
105.159 |
105.159 |
105.159 |
|
(b) Reserves &
Surplus |
4456.426 |
3498.374 |
3467.822 |
|
(c) Money received
against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application
money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total Shareholders’ Funds
(1) + (2) |
4561.585 |
3603.533 |
3572.981 |
|
|
|
|
|
|
(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 |
62.268 |
40.174 |
18.361 |
|
(d) long-term provisions |
0.000 |
0.000 |
0.000 |
|
Total Non-current
Liabilities (3) |
62.268 |
40.174 |
18.361 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
0.000 |
965.128 |
53.167 |
|
(b) Trade payables |
385.586 |
323.566 |
364.490 |
|
(c) Other current
liabilities |
149.508 |
118.047 |
89.647 |
|
(d) Short-term provisions |
240.133 |
98.341 |
680.745 |
|
Total Current Liabilities
(4) |
775.227 |
1505.082 |
1188.049 |
|
|
|
|
|
|
TOTAL |
5399.080 |
5148.789 |
4779.391 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
161.583 |
164.994 |
99.915 |
|
(ii) Intangible Assets |
13.526 |
19.151 |
24.790 |
|
(iii) Capital
work-in-progress |
4.091 |
2.799 |
1.937 |
|
(iv) Intangible assets
under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current
Investments |
260.193 |
260.193 |
510.001 |
|
(c) Deferred tax assets
(net) |
107.333 |
99.806 |
84.055 |
|
(d) Long-term Loan and Advances |
515.548 |
469.697 |
577.990 |
|
(e) Other Non-current
assets |
1.377 |
1.285 |
0.094 |
|
Total Non-Current Assets |
1063.651 |
1017.925 |
1298.782 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
998.028 |
699.996 |
563.412 |
|
(b) Inventories |
1600.837 |
1245.196 |
1020.834 |
|
(c) Trade receivables |
1316.578 |
1855.069 |
1623.288 |
|
(d) Cash and cash
equivalents |
115.208 |
111.862 |
41.162 |
|
(e) Short-term loans and
advances |
304.778 |
218.741 |
231.913 |
|
(f) Other current assets |
0.000 |
0.000 |
0.000 |
|
Total Current Assets |
4335.429 |
4130.864 |
3480.609 |
|
|
|
|
|
|
TOTAL |
5399.080 |
5148.789 |
4779.391 |
PROFIT
& LOSS ACCOUNT – STANDALONE
|
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
|
SALES |
|
|
|
|
|
Income |
5926.034 |
5048.040 |
4668.775 |
|
|
Other Income |
376.571 |
389.355 |
316.423 |
|
|
TOTAL |
6302.605 |
5437.395 |
4985.198 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Purchases of
Stock-in-Trade |
265.442 |
14.287 |
2.582 |
|
|
Employees benefits
expense |
3068.047 |
2864.248 |
2575.710 |
|
|
Other expenses |
1092.416 |
889.690 |
805.188 |
|
|
Exceptional Items |
(56.507) |
0.000 |
0.000 |
|
|
TOTAL |
4369.398 |
3768.225 |
3383.480 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION
|
1933.207 |
1669.170 |
1601.718 |
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES |
39.882 |
39.062 |
11.430 |
|
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE
TAX, DEPRECIATION AND AMORTISATION |
1893.325 |
1630.108 |
1590.288 |
|
|
|
|
|
|
|
Less |
DEPRECIATION/
AMORTISATION |
45.708 |
43.680 |
52.227 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE TAX |
1847.617 |
1586.428 |
1538.061 |
|
|
|
|
|
|
|
Less |
TAX |
475.282 |
411.983 |
363.364 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) AFTER TAX
|
1372.335 |
1174.445 |
1174.697 |
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
Export of Services |
4998.005 |
4405.182 |
4156.936 |
|
|
F.O.B. Value of Exports |
278.768 |
14.708 |
2.008 |
|
|
Freight |
14.352 |
5.992 |
7.613 |
|
|
Insurance |
2.870 |
1.154 |
0.000 |
|
|
TOTAL EARNINGS |
5293.995 |
4427.036 |
4166.557 |
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
Components and Stores
parts |
0.000 |
9.125 |
0.000 |
|
|
Capital Goods |
265.442 |
14.277 |
2.582 |
|
|
TOTAL IMPORTS |
265.442 |
23.402 |
2.582 |
|
|
|
|
|
|
|
|
Earnings / (Loss) Per
Share (INR) |
13.05 |
11.17 |
11.17 |
CURRENT MATURITIES OF LONG TERM DEBT DETAILS
|
Particulars |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Current Maturities of Long term debt |
12.721 |
47.479 |
0.000 |
|
Cash generated from operations |
2496.399 |
1931.268 |
1099.549 |
|
Net cash flow from operating activity |
1850.467 |
1582.085 |
834.136 |
QUARTERLY
RESULTS
|
PARTICULARS |
30.06.2017 1ST
Quarter |
30.09.2017 2nd
Quarter |
31.12.2017 3rd
Quarter |
|
|
Unaudited
|
Unaudited
|
Unaudited
|
|
Net Sales |
6345.320 |
4268.600 |
7667.460 |
|
Total Expenditure |
5868.570 |
3721.400 |
7016.950 |
|
PBIDT (Excl OI) |
476.750 |
547.200 |
650.510 |
|
Other Income |
158.390 |
112.130 |
65.160 |
|
Operating Profit |
635.140 |
659.330 |
715.670 |
|
Interest |
16.900 |
12.300 |
9.060 |
|
Exceptional Items |
9.410 |
2.040 |
NA |
|
PBDT |
627.650 |
649.070 |
706.610 |
|
Depreciation |
30.450 |
32.420 |
31.410 |
|
Profit Before Tax |
597.190 |
616.650 |
675.200 |
|
Tax |
165.540 |
162.990 |
182.030 |
|
Provisions and contingencies |
NA |
NA |
NA |
|
Profit After Tax |
431.650 |
453.660 |
493.170 |
|
Extraordinary Items |
NA |
NA |
NA |
|
Prior Period Expenses |
NA |
NA |
NA |
|
Other Adjustments |
NA |
NA |
NA |
|
Net Profit |
431.650 |
453.660 |
493.170 |
KEY
RATIOS
EFFICIENCY RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Average Collection Days (Sundry Debtors / Income * 365 Days) |
81.09 |
134.13 |
126.91 |
|
|
|
|
|
|
Account Receivables Turnover (Income / Sundry
Debtors) |
4.50 |
2.72 |
2.88 |
|
|
|
|
|
|
Average Payment Days (Sundry Creditors
/ Purchases * 365 Days) |
530.21 |
8266.37 |
51525.50 |
|
|
|
|
|
|
Inventory Turnover (Operating Income
/ Inventories) |
1.21 |
1.34 |
1.57 |
|
|
|
|
|
|
Asset Turnover (Operating Income
/ Net Fixed Assets) |
10.79 |
8.93 |
12.65 |
LEVERAGE RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Debt Ratio ((Borrowing + Current Liabilities) / Total
Assets) |
0.14 |
0.29 |
0.25 |
|
|
|
|
|
|
Debt Equity Ratio (Total Liability
/ Networth) |
0.00 |
0.27 |
0.01 |
|
|
|
|
|
|
Current Liabilities to Networth (Current
Liabilities / Net Worth) |
0.17 |
0.42 |
0.33 |
|
|
|
|
|
|
Fixed Assets to Networth (Net Fixed Assets
/ Networth) |
0.04 |
0.05 |
0.04 |
|
|
|
|
|
|
Interest Coverage Ratio (PBIT / Financial
Charges) |
48.47 |
42.73 |
140.13 |
PROFITABILITY RATIOS
|
PARTICULARS |
|
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Net Profit Margin ((PAT / Sales) *
100) |
% |
23.16 |
23.27 |
25.16 |
|
|
|
|
|
|
|
Return on Total Assets ((PAT / Total
Assets) * 100) |
% |
25.42 |
22.81 |
24.58 |
|
|
|
|
|
|
|
Return on Investment (ROI) ((PAT / Networth)
* 100) |
% |
30.08 |
32.59 |
32.88 |
SOLVENCY RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Current Ratio (Current Assets / Current Liabilities) |
5.59 |
2.74 |
2.93 |
|
|
|
|
|
|
Quick Ratio ((Current Assets
– Inventories) / Current Liabilities) |
3.53 |
1.92 |
2.07 |
|
|
|
|
|
|
G-Score Ratio Financial (Networth / Total
Assets) |
0.84 |
0.70 |
0.75 |
|
|
|
|
|
|
G-Score Ratio Debt (Debts / Equity Capital) |
0.00 |
9.18 |
0.51 |
|
|
|
|
|
|
G-Score Ratio Liquidity (Total Current
Assets / Total Current Liabilities) |
5.59 |
2.74 |
2.93 |
Total Liability = Short-term Debt + Long-term
Debt + Current Maturities of Long-term debts
STOCK
PRICES
|
Face Value |
INR 1.00/- |
|
Market Value |
INR 337.90/- |
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 |
105.159 |
105.159 |
105.159 |
|
Reserves & Surplus |
3467.822 |
3498.374 |
4456.426 |
|
Net worth |
3572.981 |
3603.533 |
4561.585 |
|
|
|
|
|
|
long-term borrowings |
0.000 |
0.000 |
0.000 |
|
Short term borrowings |
53.167 |
965.128 |
0.000 |
|
Total borrowings |
53.167 |
965.128 |
0.000 |
|
Debt/Equity ratio |
0.015 |
0.268 |
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 |
4668.775 |
5048.040 |
5926.034 |
|
|
|
8.123 |
17.393 |
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 |
4668.775 |
5048.040 |
5926.034 |
|
Profit |
1174.697 |
1174.445 |
1372.335 |
|
|
25.16% |
23.27% |
23.16% |
ABRIDGED
BALANCE SHEET – (CONSOLIDATED)
|
SOURCES OF FUNDS |
|
31.03.2017 |
31.03.2016 |
|
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
105.159 |
105.159 |
|
(b) Reserves &
Surplus |
|
5740.742 |
4604.765 |
|
(c) Money received
against share warrants |
|
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money
pending allotment |
|
0.000 |
0.000 |
|
Total Shareholders’ Funds
(1) + (2) |
|
5845.901 |
4709.924 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term borrowings |
|
325.331 |
522.270 |
|
(b) Deferred tax
liabilities (Net) |
|
0.000 |
0.000 |
|
(c) Other long term
liabilities |
|
186.818 |
161.630 |
|
(d) long-term provisions |
|
0.000 |
0.000 |
|
Total Non-current
Liabilities (3) |
|
512.149 |
683.900 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
|
17.759 |
1190.532 |
|
(b) Trade payables |
|
4482.454 |
2654.646 |
|
(c) Other current
liabilities |
|
750.178 |
431.877 |
|
(d) Short-term provisions |
|
344.848 |
248.874 |
|
Total Current Liabilities
(4) |
|
5595.239 |
4525.929 |
|
|
|
|
|
|
TOTAL |
|
11953.289 |
9919.753 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
|
236.802 |
249.924 |
|
(ii) Intangible Assets |
|
45.517 |
38.882 |
|
(iii) Capital
work-in-progress |
|
4.248 |
2.866 |
|
(iv) Intangible assets
under development |
|
0.000 |
0.000 |
|
(v) Goodwill on
Consolidation |
|
909.128 |
909.658 |
|
(b) Non-current
Investments |
|
0.031 |
0.031 |
|
(c) Deferred tax assets
(net) |
|
127.294 |
129.173 |
|
(d) Long-term Loan and Advances |
|
784.998 |
649.351 |
|
(e) Other Non-current
assets |
|
16.382 |
9.119 |
|
Total Non-Current Assets |
|
2124.400 |
1989.004 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
|
1178.060 |
522.445 |
|
(b) Inventories |
|
0.000 |
100.090 |
|
(c) Trade receivables |
|
5232.345 |
3544.344 |
|
(d) Cash and cash
equivalents |
|
2477.267 |
2952.214 |
|
(e) Short-term loans and
advances |
|
342.924 |
378.857 |
|
(f) Other current assets |
|
598.293 |
432.799 |
|
Total Current Assets |
|
9828.889 |
7930.749 |
|
|
|
|
|
|
TOTAL |
|
11953.289 |
9919.753 |
PROFIT
& LOSS ACCOUNT– (CONSOLIDATED)
|
|
PARTICULARS |
|
31.03.2017 |
31.03.2016 |
|
|
SALES |
|
|
|
|
|
Income |
|
25211.284 |
19405.013 |
|
|
Other Income |
|
403.304 |
437.821 |
|
|
TOTAL |
|
25614.588 |
19842.834 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Purchases of
Stock-in-Trade |
|
16377.393 |
11626.665 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
|
100.090 |
(26.759) |
|
|
Employees benefits
expense |
|
4555.268 |
4097.836 |
|
|
Other expenses |
|
2256.025 |
1788.310 |
|
|
Exceptional Items |
|
(77.193) |
(36.804) |
|
|
TOTAL |
|
23211.583 |
17449.248 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND
AMORTISATION |
|
2403.005 |
2393.586 |
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES |
|
90.541 |
79.495 |
|
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE
TAX, DEPRECIATION AND AMORTISATION |
|
2312.464 |
2314.091 |
|
|
|
|
|
|
|
Less |
DEPRECIATION/
AMORTISATION |
|
93.005 |
61.626 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE TAX |
|
2219.459 |
2252.465 |
|
|
|
|
|
|
|
Less |
TAX |
|
682.214 |
666.555 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) AFTER TAX
|
|
1537.245 |
1585.910 |
|
|
|
|
|
|
|
|
Earnings / (Loss) Per
Share (INR) |
|
14.62 |
15.08 |
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 |
No |
|
8 |
Designation of contact person |
No |
|
9 |
Promoter’s background |
Yes |
|
10 |
Date of Birth of Proprietor / Partners /
Directors |
No |
|
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 |
Yes |
|
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 |
Yes |
|
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 |
UNSECURED LOAN
|
Unsecured Loan |
31.03.2017 (INR
in Million) |
31.03.2016 (INR
in Million) |
|
Short-term
borrowings |
|
|
|
From Bank |
0.000 |
579.687 |
|
|
|
|
|
Total |
0.000 |
579.687 |
CORPORATE INFORMATION
Subject
is a Company registered in India with its registered office at Mumbai and
operationally headquartered at Bengaluru. The Company is listed on The National
Stock Exchange Limited and The Bombay Stock Exchange Limited. The Company is
primarily engaged in the business of providing Information Technology Services
and Solutions to its customers in the United States of America, Europe, Middle
East and India
BUSINESS PERFORMANCE
The Company is primarily engaged in the business of providing IT Services and Software Solutions to its global customers in the US, Europe, Middle East, Asia Pacific, Australia, New Zealand and value added re-selling of IT products from global technology companies in India. The consolidated results of the Company include operations of its Indian and Overseas Subsidiaries
The Company has successfully completed another year of consistent performance. The year gone by saw significant progress in the efforts to emerge as a platform-led digital solutions provider. During the year, the Company continued to invest in the development of IP including products and platforms, go-to-market initiatives and business development activities which enabled to strengthen its client portfolio. The Company saw an industry leading year-on-year growth in revenues of 15% in the international solutions and services business and 39% in their Indian software products business.
The Company continued to grow in the industry segments it operates across industry verticals of Travel, Retail & Distribution and Software solutions. During the year, the Company expanded its alliances with its strategic partners. The Company entered into the Microsoft Enterprise Cloud Alliance and two of its solutions Brick & Click Retail and Advanced Supply Chain Software listed on the Microsoft Appsource application store. During the year, Sonata’s unified enterprise mobility platform Halosys was granted a US patent for multi-channel delivery of augmented messages. Sonata’s SAP alliance on Hybris Ecommerce also gained momentum with closer partnership in serving retail and travel industry needs and joint programs to reach customers in these verticals. The Company continued to hire new talent to strengthen its leadership team. Investments in marketing, especially in joint event and programs with alliance partners, was enhanced. The year saw significant new client wins in addition to the growth in existing customers.
The fiscal year 2017 performance reflects Sonata’s journey to reposition itself as a unique “Platformation” partner that is committed to develop and deploy platforms enabling its customers to gain competitive advantage through digital transformation initiatives.
Coming to the results, both on a Standalone and Consolidated basis the Company has shown growth and placed itself well to handle its increasing scale of operation.
STANDALONE FINANCIALS
Total Income has shown a growth of 16%. The Earnings before Interest, taxes, Depreciation and Amortization (EBITDA) stood at 30% of total income and Net Profit at 22% of total income with Earnings per share at ₹ 13.05.
MANAGEMENT DISCUSSION
& ANALYSIS REPORT
ECONOMIC AND INDUSTRY
TRENDS
Economic Overview
The global economy witnessed slowdown in growth during FY 2016-17. According to the Organization for Economic Co-operation and Development (OECD) interim outlook, the world economy grew by 3% in 2016 and is expected to grow modestly by 3.3% and 3.6% in 2017 and 2018 respectively. The modest pickup in global activity can be attributed to the effects of ongoing fiscal initiatives in economies like China and the United States, coupled with an easier stance in the euro area and forward initiatives undertaken.
The Indian economy, despite the momentary slowdown from the demonetization act, has succeeded in keeping its growth rate in line. It is projected that the Indian economy will grow to 7.3% in FY 2017-18 and 7.7% in FY 2018-19.
GLOBAL IT INDUSTRY
According to Gartner, the global IT spending is projected to be a total of $3.5 trillion in 2017, a 1.4% increase from 2016. By 2018, spending is forecast to exceed $3.56 trillion, a growth of 2.9% over 2017 spending. The Indian IT spending is forecast to reach $72.3 billion in the year 2017, up by 6.9% from 2016’s estimated spending of $67.7 billion. Some of the key verticals driving IT spending growth in India are BFSI, media, telecommunications, utilities and manufacturing markets. Software spending is projected to grow at 12.8% in 2017 to a total of $5 billion. Digital technologies play an important role in defining the sector and is expected to have 23% share by 2020 and 38% share by 2025. Digital technologies will bring about a significant change in the way the Indian IT-BPM industry functions. Geographically, North America and Western Europe contributed 39.33% and 31.74% respectively to the overall global IT spending.
INDEX
OF CHARGES:
|
Charges Registered |
||||||||
|
SNo |
SRN |
Charge Id |
Charge Holder Name |
Date of Creation |
Date of Modification |
Date of Satisfaction |
Amount |
Address |
|
1 |
G70665575 |
10612790 |
CITI BANK N.A. |
04/11/2015 |
26/07/2017 |
- |
594000000.0 |
3rd Floor, Canberra BlockUB City,24 Vittal Mallya RoadBangaloreKA560001IN |
|
2 |
C81706517 |
10625990 |
HDFC BANK LIMITED |
27/08/2015 |
- |
- |
599998339.0 |
8/24 SALCO CENTERRICHMOND ROADBANGALOREKA560025IN |
|
3 |
C70669981 |
10603551 |
INDUSIND BANK LTD. |
27/08/2015 |
- |
- |
360000000.0 |
2401 GEN THIMMAYYA ROADCONTONMENTPUNEMH411001IN |
|
4 |
G37226651 |
10026461 |
Standard Chartered Bank |
20/11/2006 |
17/02/2017 |
- |
500000000.0 |
NO. 112, SERENITY, 3RD FLOOR, EAST WING5TH BLOCK, KORAMANGALA INDUSTRIAL AREABANGALOREKA560095IN |
|
5 |
A94595097 |
10029641 |
STATE BANK OF INDIA |
12/12/2006 |
16/03/2009 |
30/08/2010 |
250000000.0 |
BANGALORE COMMERCIAL BRANCHI FLOOR, KRISHI BHAVAN, HUDSON CIRCLEBANGALOREKA560001IN |
CONTINGENT
LIABILITIES:
(INR in million)
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
|
Guarantees |
1022.750 |
1043.750 |
|
The
Company has given corporate guarantees to certain suppliers of Sonata
Information Technology Limited (SITL), its wholly owned subsidiary, on behalf
of SITL, amount drawn down as at year end against this facility is INR Nil
(as at 31.03.2016 is INR Nil) |
|
|
|
Claims against the
Company not acknowledged as debt |
22.863 |
22.863 |
|
The
Company had received a legal notice from its ex-employee towards compensation
arising on account of terms of appointment. Based on legal opinion received
by the Company, the maximum amount payable in the event the proceeding goes
against the Company is INR 22,863,099. |
|
|
|
Disputed demand of
Service tax |
67.653 |
67.653 |
|
The
Company renders Information Technology related services to some of its clients
in India. The Service Tax department had classified these services as
‘Manpower Recruitment or Supply Agency Services’. The Company had contested
this re-classification and had preferred an appeal before the Central Excise
and Service Tax Appellate Tribunal (CESTAT). One of the clients of the
Company had indemnified the Company for any demands that may arise on account
of service tax liability up to an amount of INR 23,700,000. The amount
included as disputed demand is excluding the amount indemnified by the
client. |
|
|
|
Disputed demands of
Income-tax |
1168.973 |
1004.844 |
STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS
FOR THE QUARTER ENDED 31ST DECEMBER 2017
(INR In Million)
|
Particulars |
Quarter Ended |
Nine Months ended |
|
|
31.12.2017 |
30.09.2017 |
31.12.2017 |
|
|
Unaudited |
Unaudited |
Unaudited |
|
|
|
|
|
|
|
Income from Operations |
|
|
|
|
a) Revenue from Operation |
1802.815 |
1791.605 |
5088.844 |
|
b) Other Income |
68.505 |
122.899 |
305.480 |
|
Total Income from
Operations (net) |
1871.320 |
1914.504 |
5394.324 |
|
Expenditure |
|
|
|
|
Purchase of Stock in
trade |
150.343 |
150.148 |
363.735 |
|
Employee benefits expense |
930.503 |
941.289 |
2716.418 |
|
Finance Cost |
0.071 |
1.408 |
1.481 |
|
Depreciation and
amortisation expense |
12.932 |
12.459 |
35.917 |
|
Other expenses |
278.250 |
286.332 |
864.359 |
|
Total Expenses |
1372.099 |
1391.636 |
3981.910 |
|
Profit /(Loss) before tax |
499.221 |
522.868 |
1417.281 |
|
Tax expense |
|
|
|
|
Current
Tax |
110.976 |
131.799 |
341.164 |
|
Short
provision for tax relating to prior years |
0.000 |
0.000 |
0.000 |
|
Deferred
Tax |
1.723 |
(2.209) |
(1.503) |
|
Net
Profit / (Loss) after tax |
386.522 |
393.278 |
1077.620 |
|
Other
Comprehensive Income |
|
|
|
|
1.Items that will not be
reclassified to profit or loss |
43.08 |
(69.84) |
(65.36) |
|
Income tax relating to
items that will not be reclassified to profit or loss |
(10.62) |
17.21 |
16.10 |
|
2.Items that will be reclassified
to profit or loss |
(208.58) |
69.66 |
(239.45) |
|
Income tax relating to
items that will be reclassified to profit or loss |
51.40 |
(17.16) |
59.00 |
|
Total
|
(124.72) |
(0.13) |
(229.71) |
|
Total
Comprehensive Income for the period |
374.050 |
393.265 |
1054.649 |
|
|
|
|
|
|
Paid-up
equity share capital (Face Value of Rs. 10 per share) |
103.732 |
103.724 |
103.732 |
|
Other Equity |
|
|
|
|
Basic
Earning Per Share |
3.73 |
3.79 |
10.39 |
|
Diluted
Earning Per Share |
3.68 |
3.74 |
10.25 |
FIXED ASSETS
- Leasehold
land
- Building
- Leasehold
improvement
- Plant and
equipment
- Furniture and
fixture
- Vehicle
- Office
equipment
- Computer and
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 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 63.91 |
|
|
1 |
INR 90.31 |
|
Euro |
1 |
INR 80.17 |
INFORMATION DETAILS
|
Information
Gathered by : |
SPR |
|
|
|
|
Analysis Done by
: |
NIS |
|
|
|
|
Report Prepared
by : |
JYO |
SCORE FACTORS
|
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 |
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.