MIPL-Logo

3decades

 

MIRA INFORM REPORT

 

 

Report No. :

508819

Report Date :

16.05.2018

 

 

IDENTIFICATION DETAILS

 

Name :

KELLTON TECH SOLUTIONS LIMITED

 

 

Registered Office :

Plot No 1367, Road No- 45 Jubilee Hills, Hyderabad – 500033, Telangana

Tel. No.:

91-40-44333030

 

 

Country :

India

 

 

Financials (as on) :

31.03.2017

 

 

Date of Incorporation :

31.12.1993

 

 

Com. Reg. No.:

36-016819

 

 

Capital Investment / Paid-up Capital :

INR 235.723 Million

 

 

CIN No.:

[Company Identification No.]

L72200TG1993PLC016819

 

 

IEC No.:

[Import-Export Code No.]

Not Divulged

 

 

GSTN :

[Goods & Service Tax Registration No.]

Not Divulged

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not Available

 

 

PAN No.:

[Permanent Account No.]

Not Available

 

 

Legal Form :

A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

 

 

Line of Business :

Providing IT services. [Registered Activity]

 

 

No. of Employees :

792 (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

Acceptable Risk

Business dealings permissible with moderate risk of default

 

Maximum Credit Limit :

USD 2500000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject was incorporated in the year 1993 having satisfactory track record. It provides  IT  services  in  the  web,  mobile,  security,  ERP  and  cloud  space.

 

For the financial year 2017, the company has achieved fair growth in its revenue as compared to its previous year but has reported thin profit margin during the year.

 

Rating takes into consideration, the healthy  growth  in  scale  of  operations  over  the  years  backed  by  regular  acquisitions  and healthy business volumes.

 

Rating continue to derive strength from its established track record of its business operation backed by extensive  experience  of  the  promoters  in  the  information  technology  (IT)  industry;  strong management team comprising of technocrats.

 

The company is listed on BSE and NSE and the price quoted at BSE is held at INR 57.25 against its face value of INR 10.

 

As per the 3rd quarterly results of December 2017, the company has achieved revenue of INR 464.050 million and has clocked fair net profit margin.

 

However, these rating strengths gets partially offset by exposure of the company’s profitability to fluctuations in foreign exchange given that majority of the company’s revenue is derived from USA and relatively high competitive intensity, and risks such as employee attrition which are typical to IT industry.

 

Payment seems to be usually correct.

 

In view of aforesaid, the company can be considered for business dealing 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.

 

ECGC Country Risk Classification List

 

Country Name

Previous Rating

(30.09.2017)

Current Rating

(31.12.2017)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

ICRA

Rating

Long term : A-

Rating Explanation

Adequate degree of safety and low credit risk.

Date

03.03.2018

 

Rating Agency Name

ICRA

Rating

Short term rating: A2+

Rating Explanation

Strong degree of safety and low credit risk.

Date

03.03.2018

 

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 16.05.2018

 

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 CO-OPERATIVE (91-40-44333030)

 

LOCATIONS

 

Registered Office/ Corporate Office :

Plot No 1367, Road No- 45 Jubilee Hills, Hyderabad – 500033, Telangana, India

Tel. No.:

91-40-44333030

Fax No.:

Not Available

E-Mail :

pawni.bhave@kelltontech.com

compliance@kelltontech.com

Website :

https://www.kelltontech.com

 

 

DIRECTORS

 

AS ON 31.03.2018

 

Name :

Mr. Krishna Reddy Chintam

Designation :

Managing Director

Address :

Plot No 1297, Road No 63, Jubilee Hills, Hyderabad - 500033, Telangana, India

Date of Appointment :

23.12.2008

DIN No.:

01658145

 

 

Name :

Mr. Karan Jit Singh

Designation :

Wholetime Director

Address :

296,Sobha Hibiscus Bellanduru, Bangalore East, Bangalore Urban, Bangalore – 560103, Telangana, India

Date of Appointment :

30.03.2015

DIN No.:

06898258

 

 

Name :

Mr. Rajendra Vithal Naniwadekar

Designation :

Director

Address :

Devchaya 3-4-252/1, Kacheguda, Hyderabad - 500027, Telangana, India

Date of Appointment :

23.12.2008

DIN No.:

00032107

 

 

Name :

Mr. Brijmohan Venkata Mandala

Designation :

Director

Address :

F-405, House No. 7-1-35/1,Viswa Swapnika Apartment, Shyamakaram Road, Ameerpet, Hyderabad - 500016, Telangana, India

Date of Appointment :

09.11.2012

DIN No.:

00295323

 

 

Name :

Mr. Niranjan Reddy Chintam

Designation :

Director

Address :

8-2-293/82/A, Plot No 1367, Road No 45, Jubilee Hills, Hyderabad – 500033, Telangana, India

Date of Appointment :

23.12.2008

DIN No.:

01658591

 

Name :

Mr. Srinivas Potluri

Designation :

Director

Address :

Flat No 204, Block 17, RTP KPHB, Kukatpally, Hyderabad – 500072, Telangana, India

Date of Appointment :

31.12.2009

DIN No.:

03412700

 

Name :

Mr. Pydisetty Veera Venkata Srinivasa Rao

Designation :

Director

Address :

H102, Mantri Espana, Kariyammana Agrahara Behind Passport Office, Outer Ring Road, Bangalore - 560103, Karnataka India

Date of Appointment :

16.02.2016

DIN No.:

06805347

 

Name :

Mr. Kunda Kalpana

Designation :

Director

Address :

Flat No. A703 Rainbow Vistas-1, Cyber City, IDL Road, Near Hitechcity MMTS Station, Moosapetk Ukatpally, Hyderabad -  500072, Telangana, India

Date of Appointment :

07.03.2017

DIN No.:

07328517

 

 

KEY EXECUTIVES

 

Name :

Mr. Niranjan Reddy Chintam

Designation :

Chief Finance Officer

Address :

8-2-293/82/A, Plot No 1367, Road No 45, Jubilee Hills, Hyderabad - 500033 Telagana India

Date of Appointment :

30.03.2015

PAN No.:

AGEPC9383Q

 

 

Name :

Mr. Pawni Bhave

Designation :

Company Secretary

Address :

C-214, Sarvadharm, Sector-C, Kolar Road, Bhopal 462042 Madhya Pradesh India

Date of Appointment :

07.03.2017

PAN No.:

BJXPB3084J

 

 

SHAREHOLDING PATTERN

 

AS ON 31.03.2018

 

Category of Shareholder

No. of Shares

Percentage of Holding

(A) Promoter & Promoter Group

58366284

60.56

(B) Public

38016184

39.44

Grand Total

96382468

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

2394384

2.48

CHINTAM KRISHNA REDDY

1142286

1.19

SREEVIDYA CHINTAM

902776

0.94

MOHANA REDDY CHINTAM

328552

0.34

LAKSHMI CHINTAM

20770

0.02

Any Other (specify)

55971900

58.07

MATNIC FINVEST PRIVATE LIMITED

43171900

44.79

KELLTON WEALTH MANAGEMENT PRIVATE LIMITED

12800000

13.28

Sub Total A1

58366284

60.56

A2) Foreign

 

0.00

A=A1+A2

58366284

60.56

 

Statement showing shareholding pattern of the Public shareholder

 

Category of Shareholder

No. of Shares

Percentage of Holding

B1) Institutions

 

0.00

Mutual Funds/

293400

0.30

Foreign Portfolio Investors

4710522

4.89

GRANDEUR PEAK INTERNATIONAL OPPORTUNITIE

1337558

1.39

GRANDEUR PEAK GLOBAL OPPORTUNITIES FUND

1186000

1.23

GRANDEUR PEAK EMERGING MARKETS OPPORTUNI

1152350

1.20

Financial Institutions/ Banks

45348

0.05

Sub Total B1

5049270

5.24

B2) Central Government/ State Government(s)/ President of India

 

0.00

B3) Non-Institutions

 

0.00

Individual share capital upto INR 0.200 Million

13961884

14.49

Individual share capital in excess of INR 0.200 Million

8297968

8.61

Any Other (specify)

10707062

11.11

KELLTON FINANCIAL SERVICES PVT LTD

3133000

3.25

PROSOFT CYBERWORLD PRIVATE LIMITED

1491842

1.55

KELLTON SECURITIES PRIVATE LIMITED

1269708

1.32

Non-Resident Indian (NRI)

1295364

1.34

Clearing Members

110422

0.11

Sub Total B3

32966914

34.20

B=B1+B2+B3

38016184

39.44

 

 

BUSINESS DETAILS

 

Line of Business :

Providing IT services. [Registered Activity]

 

 

Products / Services :

Name and Description of main products / services

NIC Code

IT Services

620

 

 

Brand Names :

Not Divulged

 

 

Agencies Held :

Not Divulged

 

 

Exports :

Not Divulged

 

 

Imports :

Not Divulged

 

 

Terms :

Not Divulged

 

PRODUCTION STATUS – NOT AVAILABLE

 

 

GENERAL INFORMATION

 

Suppliers :

Reference :

Not Divulged 

Name of the Person :

--

Contact No.:

--

Since How Long Known :

--

Experience :

--

Maximum Limit Dealt :

--

Remark :

--

 

 

Customers :

Reference :

Not Divulged 

Name of the Person :

--

Contact No.:

--

Since How Long Known :

--

Experience :

--

Maximum Limit Dealt :

--

Remark :

--

 

 

No. of Employees :

792 (Approximately)

 

 

Bankers :
  • Axis Bank,Corporate Banking Branch , Hyderabad
  • Standard Chartered Bank ,Jubilee Hills Branch
  • HDFC Bank, Khairatabad Branch, Hyderabad
  • Karur Vysya Bank, Secunderbad – Branch
  • IndusInd Bank, Secunderbad – Branch

 

 

Facilities :

SECURED LOANS

31.03.2017

INR In Million

31.03.2016

INR In Million

LONG TERM BORROWINGS

 

 

Vehicle Loans

 

 

HDFC Bank Limited

0.305

0.495

Axis Bank Limited

0.317

0.000

Loan - Indusind Bank

19.325

0.000

SHORT TERM BORROWINGS

 

 

Term Loan - Vehicle

 

 

Kotak Mahindra Prime Limited

1.087

2.594

ICICI Bank Limited

0.000

0.733

Working capital loan - Axis Bank Limited

198.114

80.577

Term Loan Axis Bank Limited

0.000

2.531

Total

219.148

86.930

 

Note:

 

LONG TERM BORROWINGS

 

Lender

 Nature

 Rate of interest

 Security

 Terms of Repay­ment  

 HDFC Bank

 Vehicle Loan

 10.12%

 Vehicle

 Repayable in 60 equated installments out of which 31 are paid  

 Axis Bank Limited

 Vehicle Loan

 9.85%

 Vehicle

 Installments out of which 10 are paid  

 Indusind Bank

 Cash Credit

 Base + 1.90%

 Pari-Passu Charge with Axis Bank

 Multi- Years  

 

SHORT TERM BORROWINGS

 

Lender

 Nature

 Rate of interest

 Security

 Terms of Repay­ment  

 Kotak Ma­hindra Prime Ltd

 Vehicle Loan

 9.52%

 Vehicle

 36 equated install­ments out of which 31 are paid  

 Axis Bank Limited

 Cash Credit

 Base Rate +1.85%

 a) Exclusive charge on the entire current assets and Fixed assets (other than Vehicle) of the Company, both present and future;

b) Hypothecation of the properties owned by the Promoters

c) Pledge of 12 lakh shares held by Mat­nic Finvest Private Limited (Promoter of the Company)

d) Personal Guarantee and comfort let­ters from promoters.

 Yearly Renewals Rollover (based on availability of FC funds) or Bullet re­payment at the end of six months  

 

 

Auditors :

 

Name :

Mahesh, Virender and Sriram

Chartered Accountants

Address :

6-3-788/36 and 37A,  Durganagar Colony, Ameerpet, Hyderabad – 500 040, Telangana, India

Tel. No.:

91-40-23401738

E-Mail :

mvshyd@yahoo.com

 

 

Internal Auditor:

 

Name :

Mr. Kiran Yeturu

Chartered Accountant

 

 

Secretarial Auditor:

Mr. Manoj Kumar Koyalkar,

Practicing Company Secretary

 

 

Memberships :

Not Available

 

 

Collaborators :

Not Available

 

 

Wholly owned Subsidiary:

·         Kellton Tech Inc

·         Kellton Dbydx Software Private Limited

·         Kellton Tech Solutions Inc

·         Kellton Tech Limited (Ireland)

 

 

Step Down Subsidiary

(Wholly owned Subsidiary of Kellton Tech Inc):

·         Evantage Solutions Inc

·         Supremesoft Global Inc

·         Vivos Professional LLC

·         Prosoft Technology Group Inc

·         Intellipeople Inc

·         Cyberworld Solutions Inc

·         Kellton Tech (UK) Limited

·         Bokanyi Consulting Inc

·         Lenmar Consulting ,Inc

·         SID Computer Group, Inc

 

 

CAPITAL STRUCTURE

 

After 27.09.2017

 

Authorised Capital : INR 310.000 Million

 

Issued, Subscribed & Paid-up Capital : INR 240.956 Million

 

AS ON 31.03.2017

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

62000000

Equity Shares

INR 5/- each

INR 310.000 Million

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

47144573

Equity Shares

INR 5/- each

INR 235.723 Million

 

 

 

 

 

RECONCILIATION OF THE NUMBER OF SHARES OUTSTANDING AT THE BEGINNING AND AT THE END OF THE REPORTING PERIOD

 

Equity Shares

Number of Shares

Amount

Shares outstanding at the beginning of the year

46826260

234.131

Shares issued during the year

318313

1591.565

Shares bought back during the year

Nil

Nil

Shares outstanding at the end of the year

47144573

235.723

 

(d) Terms/rights attached to equity shares including restrictions on distribution of dividends and the repayment of capital

 

(1) Equity shares issued by the company are Equity Shares within the meaning of Section 85(2) of the Companies Act 2013.

 

(2) Each holder of equity share is entitled to one vote per share.

(3) 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

 

(4) the distribution will be in proportion to the number of equity shares held by the shareholders

 

Shares in the Company held by each share holder holding more than 5 percent shares specifying the number of shares

 

Name of Shareholder

Number of Shares

% holding

 

 

 

Matnic Finvest Private Limited

21585950

45.79%

Kellton Wealth Management Private Limited

6400000

13.58%

 

 

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

235.723

234.131

217.408

(b) Reserves & Surplus

651.865

558.361

234.326

(c) Money received against share warrants

0.000

0.000

123.650

 

 

 

 

(2) Share Application money pending allotment

0.000

0.333

0.000

Total Shareholders’ Funds (1) + (2)

887.588

792.825

575.384

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

19.947

0.495

5.075

(b) Deferred tax liabilities (Net)

5.263

6.085

2.400

(c) Other long term liabilities

0.000

0.000

0.000

(d) long-term provisions

10.423

2.888

2.406

Total Non-current Liabilities (3)

35.633

9.468

9.881

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

199.201

86.435

90.775

(b) Trade payables

30.925

19.281

30.114

(c) Other current liabilities

77.648

63.449

31.894

(d) Short-term provisions

76.833

47.159

23.907

Total Current Liabilities (4)

384.607

216.324

176.690

 

 

 

 

TOTAL

1307.828

1018.617

761.955

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

83.981

57.312

55.032

(ii) Intangible Assets

97.248

98.192

98.967

(iii) Capital work-in-progress

10.214

7.214

1.482

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

594.102

407.026

259.032

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

20.504

10.958

8.927

(e) Other Non-current assets

0.411

0.693

0.905

Total Non-Current Assets

806.460

581.395

424.345

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

23.920

33.216

4.673

(c) Trade receivables

223.478

178.973

127.226

(d) Cash and cash equivalents

70.791

21.901

34.448

(e) Short-term loans and advances

106.533

120.532

96.176

(f) Other current assets

76.646

82.600

75.087

Total Current Assets

501.368

437.222

337.610

 

 

 

 

TOTAL

1307.828

1018.617

761.955

 

 

PROFIT & LOSS ACCOUNT (STANDALONE)

 

 

PARTICULARS

31.03.2017

31.03.2016

31.03.2015

 

SALES

 

 

 

 

Income

764.969

487.779

399.003

 

Other Income

1.573

3.385

5.152

 

TOTAL

766.542

491.164

404.155

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Materials Consumed

10.283

34.485

27.980

 

Employees benefits expense

453.722

267.730

220.880

 

Other expenses

136.820

68.551

59.785

 

TOTAL

600.825

370.766

308.645

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

165.717

120.398

95.510

 

 

 

 

 

Less

FINANCIAL EXPENSES

20.129

18.515

14.983

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

145.588

101.883

80.527

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION

18.293

10.890

9.282

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

127.295

90.993

71.245

 

 

 

 

 

Less

TAX

43.236

23.694

9.621

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX 

84.059

67.299

61.624

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

208.528

141.229

79.605

 

 

 

 

 

 

Balance Carried to the B/S

292.587

208.528

141.229

 

 

 

 

 

 

Earnings / (Loss) Per Share (INR)

 

 

 

Basic

1.79

1.51

1.47

Diluted

1.77

1.51

1.47

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2017

31.03.2016

31.03.2015

Current Maturities of Long term borrowings

0.435

0.171

5.766

 

 

 

 

Cash generated from operations

291.567

43.856

14.560

 

 

 

 

Net cash from operating activity

272.659

26.310

8.079

 

 

QUARTERLY RESULTS

 

Particulars

 

30.06.2017

(Unaudited)

30.09.2017

(Unaudited)

31.12.2017

(Unaudited)

 

1st Quarter

2nd Quarter

3rd Quarter

 

 

 

 

Net sales

222.960

229.730

464.050

Total Expenditure

182.610

188.890

409.360

PBIDT (Excluding Other Income)

182.610

40.840

54.690

Other income

1.420

4.710

7.050

Operating Profit

41.770

45.550

61.740

Interest

7.020

10.390

12.140

Exceptional Items

NA

NA

NA

PBDT

34.750

35.160

49.600

Depreciation

5.200

5.300

5.450

Profit Before Tax

29.560

29.860

44.150

Tax

7.470

7.440

10.070

Provisions and contingencies

NA

NA

NA

Profit after tax

22.080

22.420

34.080

Extraordinary Items

NA

NA

NA

Prior Period Expenses

NA

NA

NA

Other Adjustments

NA

NA

NA

Net Profit

22.080

22.420

34.080

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

KEY RATIOS

 

EFFICIENCY RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Average Collection Days

(Sundry Debtors / Income * 365 Days)

106.63

133.92

116.38

 

 

 

 

Account Receivables Turnover

(Income / Sundry Debtors)

3.42

2.73

3.14

 

 

 

 

Average Payment Days

(Sundry Creditors / Purchases * 365 Days)

1097.70

204.08

392.84

 

 

 

 

Inventory Turnover

(Operating Income / Inventories)

6.93

3.62

20.44

 

 

 

 

Asset Turnover

(Operating Income / Net Fixed Assets)

0.87

0.74

0.61

 

LEVERAGE RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Debt Ratio

((Borrowing + Current Liabilities) / Total Assets)

0.31

0.21

0.25

 

 

 

 

Debt Equity Ratio

(Total Liability / Networth)

0.25

0.11

0.18

 

 

 

 

Current Liabilities to Networth

(Current Liabilities / Net Worth)

0.43

0.27

0.31

 

 

 

 

Fixed Assets to Networth

(Net Fixed Assets / Networth)

0.22

0.21

0.27

 

 

 

 

Interest Coverage Ratio

(PBIT / Financial Charges)

8.23

6.50

6.37

 

PROFITABILITY RATIOS

 

PARTICULARS

 

 

31.03.2017

31.03.2016

31.03.2015

Net Profit Margin

((PAT / Sales) * 100)

%

10.99

13.80

15.44

 

 

 

 

 

Return on Total Assets

((PAT / Total Assets) * 100)

%

6.43

6.61

8.09

 

 

 

 

 

Return on Investment (ROI)

((PAT / Networth) * 100)

%

9.47

8.49

10.71

 

SOLVENCY RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Current Ratio

(Current Assets / Current Liabilities)

1.30

2.02

1.91

 

 

 

 

Quick Ratio

((Current Assets – Inventories) / Current Liabilities)

1.24

1.87

1.88

 

 

 

 

G-Score Ratio Financial

(Networth / Total Assets)

0.68

0.78

0.76

 

 

 

 

G-Score Ratio Debt

(Debts / Equity Capital)

0.93

0.37

0.47

 

 

 

 

G-Score Ratio Liquidity

(Total Current Assets / Total Current Liabilities)

1.30

2.02

1.91

Total Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term debts

 

 

STOCK PRICES

 

Face Value

INR 5/-

Market Value

INR 57.25/-

 

 

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

217.408

234.131

235.723

Reserves & Surplus

234.326

558.361

651.865

Share Application money pending allotment

0.000

0.333

0.000

Net worth

451.734

792.825

887.588

 

 

 

 

Long-Term Borrowings

5.075

0.495

19.947

Short Term Borrowings

90.775

86.435

199.201

Current Maturities of Long term debt

5.766

0.171

0.435

Total borrowings

101.616

87.101

219.583

Debt/Equity ratio

0.225

0.110

0.247

 

 

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

399.003

487.779

764.969

 

 

22.249

56.827

 

 

 

 

 

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

399.003

487.779

764.969

Profit

61.624

67.299

84.059

 

15.44%

13.80%

10.99%

 

 

ABRIDGED BALANCE SHEET (CONSOLIDATED)

 

SOURCES OF FUNDS

 

31.03.2017

31.03.2016

 

 

 

 

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

 

235.723

234.131

(b) Reserves & Surplus

 

1532.478

1023.078

(c) Money received against share warrants

 

0.000

 

 

 

 

 

(2) Share Application money pending allotment

 

0.000

0.333

Total Shareholders’ Funds (1) + (2)

 

1768.201

1257.542

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

 

437.813

321.469

(b) Deferred tax liabilities (Net)

 

13.940

14.270

(c) Other long term liabilities

 

55.458

78.417

(d) long-term provisions

 

12.226

4.674

Total Non-current Liabilities (3)

 

519.437

418.830

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

 

538.189

428.013

(b) Trade payables

 

205.176

176.093

(c) Other current liabilities

 

314.531

206.490

(d) Short-term provisions

 

605.745

603.515

Total Current Liabilities (4)

 

1663.641

1414.111

 

 

 

 

TOTAL

 

3951.279

3090.483

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

 

89.002

69.399

(ii) Intangible Assets

 

1530.181

1115.234

(iii) Capital work-in-progress

 

10.214

7.214

(iv) Intangible assets under development

 

0.000

0.000

(b) Non-current Investments

 

0.000

0.000

(c) Deferred tax assets (net)

 

0.000

0.000

(d)  Long-term Loan and Advances

 

24.475

16.060

(e) Other Non-current assets

 

0.411

0.694

Total Non-Current Assets

 

1654.283

1208.601

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

 

0.000

0.000

(b) Inventories

 

23.920

33.215

(c) Trade receivables

 

1467.726

1222.934

(d) Cash and cash equivalents

 

161.308

78.836

(e) Short-term loans and advances

 

564.693

405.762

(f) Other current assets

 

79.349

141.135

Total Current Assets

 

2296.996

1881.882

 

 

 

 

TOTAL

 

3951.279

3090.483

 

 

PROFIT & LOSS ACCOUNT (CONSOLIDATED)

 

 

PARTICULARS

 

31.03.2017

31.03.2016

 

SALES

 

 

 

 

Income

 

6147.699

3586.804

 

Other Income

 

9.754

9.799

 

TOTAL

 

6157.453

3596.603

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Materials Consumed

 

10.283

34.485

 

Employees benefits expense

 

3018.027

1897.456

 

Other expenses

 

2261.611

1160.967

 

TOTAL

 

5289.921

3092.908

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

 

867.532

503.695

 

 

 

 

 

Less

FINANCIAL EXPENSES

 

102.867

87.667

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

 

764.665

416.028

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION

 

42.276

25.098

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

 

722.389

390.930

 

 

 

 

 

Less

TAX

 

184.845

81.201

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX 

 

537.544

309.729

 

 

 

 

 

 

Earnings / (Loss) Per Share (INR)

 

 

 

Basic

 

11.43

6.96

Diluted

 

11.31

6.95

 

 

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

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

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

 

REVIEW OF PERFORMANCE AND STATE OF THE COMPANY’S AFFAIRS

 

During the year, the overall performance of the Company was reasonable considering to the sector/market conditions.

 

During the year, Members will notice that the gross revenues have increased to INR 766.542 Million from INR 491.164 Million, while the Profit before Tax also increased from INR 90.993 Million to INR 127.295 Million.

 

The profit after tax also increased to INR 84.059 Million from INR 67.299 Million reported in the previous year.

 

The earnings per share is INR 1.79 as compared to INR 1.51 in the previous year.

 

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

 

INDUSTRY OVERVIEW

 

ECONOMY

 

The Global economy, which has been listless in the last couple of years, is now ready to rise, stretch and get moving upwards again. After a lackluster 2016, the economic activity is projected to pick up in 2017 and 2018. Buoyant financial markets, cyclical recovery of manufacturing activities and enhanced trade relations are expected to act as slingshot for the global economy.

 

According to the World Bank’s June 2017 Global Economic Prospects, the global growth is projected to strengthen to 2.7% in 2017 and 2.9% in 2018-19 from 2.4% in 2016. The advanced economies are expected to grow at 1.9% in 2017, accelerating from 1.7% in 2016. In emerging market and developing economies (EMDEs), growth is predicted to recover to 4.1% in 2017 and reach an average of 4.6% in 2018-19 from 3.5% in 2016. Risks to the global outlook remain tilted to the downside. These risks include increased trade protectionism, elevated economic policy uncertainty, the possibility of financial market disruptions, and, over the longer term, weaker potential growth. A policy priority for EMDEs is to rebuild monetary and fis­cal space that could be drawn on were such risks to materialize. The report said that over the longer term, structural policies that support investment and trade are critical to boost productivity and potential growth.

 

India continues to remain the fastest growing economy in the world. According to World Bank’s latest re­port, India’s GDP growth is projected to rise at 7.2% in FY2018 and 7.7% in FY2019 from 7.1% in FY2017 led by strong economic fundamentals, reform momentum and improved investment scenario. The implemen­tation of landmark Goods and Service Tax (GST) is on track and is expected to bring transparency through robust IT system. It will broaden the base and tax collections not only under indirect tax but under direct taxes too which will result into raising more revenues for the country in the long term.

 

IT Industry

 

Globally, the IT industry is at the center of a continuing wave of digital innovation. Over next few years, the trends and innovations that will shape the IT industry came into sharper focus in 2016. Cloud is now becom­ing the mainstream for many enterprises and the Internet of Things (IoT) is changing how both industrial and consumer-oriented vendors do business. Digital transformation such as automation, blockchain, virtual reality, chatbots, sophisticated digital assistants, machine learning (artificial intelligence), big data analytics are the list of technological megatrends growing at a faster pace.

 

According to NASSCOM, the Global IT – BPM market in 2016 was at $1.2 trillion (excl. hardware), a growth of 3.9% over 2015. The IT services witnessed a growth of 2.5% aided by increase in demand for digital based projects. The BPM industry reflected a growth of 4.0% in 2016 driven by increased BPaaS adoption, Robotic Process Automation (RPA) and Analytics. Global IT-BPM is projected to increase to $4 trillion by 2025, a CAGR of 3.6% between 2015 – 2025 driven by the adoption of digital technologies.

 

The Indian IT industry is going through transition phase with various global factors impacting its growth and performance. The key factors include the global protectionism, heightened political policy, currency volatility, H1B visa regulations and the emergence of new technologies such as automation and robotics. The Indian IT services sector is facing the brunt of pressing issues, such as pricing pressure, decrease in IT spending and the average deal size getting smaller.

 

According to NASSCOM, the Indian IT-BPM industry witnessed a growth of 8% in FY 2017 to $154 billion from $143 billion in FY 2016. For FY 2017, it has projected the industry to grow at 10-11% for domestic market and 7.8% in the export market in FY2018. Improving financial services and high potential in digital business are cited as a key driver for growth. It is estimated that the sector will clock in export revenue of ~$125 billion and domestic revenue of ~$26.5 billion in FY 2018. According to the guidance, India will con­tinue to gain market share - 7% of global software and IT services and 56% of global sourcing. The Indian IT-BPM industry will receive 14% revenues from digital solutions – four times growth since 2014. Software and IT services globally is set to grow at a healthy pace of 7.2% and 4.4% respectively in FY17. By FY2020, India’s IT-BPM sector is projected to reach approximately $200-$225 billion revenue and $350-$400 billion by FY2025.

 

According to Gartner, worldwide IT spending is projected to total $3.5 trillion in 2017, a 2.7% increase from 2016. However, this growth rate is down from earlier projections of 3%. The worldwide IT services market is forecast to grow 4.2% in 2017. Investments in IoT (Internet of Things), digitization, cloud technologies, intelligent automation, and services optimization and innovation continue to drive growth in the market, but cautioned step fueled by broad economic challenges remains a counter-balance to faster growth.

 

The Indian IT industry is increasingly innovating its value proposition to emerge as the hub for digital solutions. Upskilling for digital, acquiring competencies through acquisitions or partnerships, building platforms and products and leveraging centers of excellence in new technologies are some of the key priorities for the sector. With growing sentiment of digital transformation and immense support from the government, the push towards a Digital India, GST implementation will benefit heavily towards the Indian IT Industry. Constant innovation and improving trade sentiments has paved way for a brighter future for the Indian IT industry.

 

OUTLOOK

 

Over a period of time, the company has rightly strengthened its digital capabilities driven by two fold in­organic strategy. The company has invested significantly in building its expertise in various technologies and has achieved the right mix of traditional and IP-based digital capabilities. Now it is right time to reap the fruits and grow at a higher rate from hereon. Kellton Tech is well poised to gallop the digital wave and capitalize on the new opportunities globally.

 

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

 

 

 

Revenue From Operation

464.050

229.726

916.733

Other Operating Income

7.046

4.706

16.780

Total Income from Operations

471.096

234.432

933.513

 

 

 

 

EXPENSES

 

 

 

Cost of materials consumed

236.330

15.969

277.109

Employee benefits expense

124.821

118.025

358.882

Finance Costs

12.141

10.388

29.548

Depreciation and Amortization expenses

5.445

5.296

15.940

Other Expenditure

48.208

54.892

148.465

Total Expenses

426.945

204.570

829.944

Profit/(loss)before tax

44.151

29.862

103.569

Tax Expense:

 

 

 

Current tax

10.020

7.853

24.885

Deferred tax

0.052

(0.407)

0.104

Profit (Loss) for the period from continuing operations

34.079

22.416

78.580

Other Comprehensive Income:

 

 

 

Items that will not be reclassified to profit or loss

0.000

0.000

(0.044)

Income tax relating to items that will not be reclassified to profit or loss

0.000

0.000

0.015

Total Comprehensive Income for the period

34.079

22.416

78.551

Earnings per equity share(for continuing operation);

 

 

 

Basic

0.72

0.047

0.166

Diluted

0.71

0.046

0.163

 

 

 

 

NOTES:

 

1. The Financial results are in compliance with Ind AS pursuant to Ministry of Company Affairs notification notifying the Companies Act (Accounting Standards) Rules, 2015. The Company has adopted Ind AS with effect from April 01, 2017 with the transition date of April 1, 2016 comparatives being restated. These financial results have been prepared in accordance with Ind AS prescribed under section 133 of the Companies Act, 2013 read with relevant rules issued there - under and in terms of Regulation 33 of SEBI Circular No. CIR/CFD/FAC/62/2016 dated July 5, 2016


2. The Statutory Auditors of the Company has conducted a limited review of the financial results for the quarter ended Dec 31, 2017 pursuant to the requirement of Regulation 33of the SEBI (Listing Obligation and Disclosure Requirements) Regulation 2015 and have given an unqualified opinion in their report. These financial results have been reviewed by the Audit Committee and thereafter approved by Board of Directors at their respective meetings held on February 6, 2018.


3. Reconciliation of Net Profit after tax for the quarter ended and year Dec 31, 2016 previously reported under Indian GAAP with Ind AS is as under:

 

Particulars

Quarter ended

31-Dec-2016

(unaudited)

   Year ended

31-Dec-2016

(unaudited)

 

 

 

Net profit for the period (As per IGAAP)

24.719

72.926

Benefit/(Charges)

 

 

Recognition of stock compensation cost

(1.609)

(4.826)

Recognition of deferred tax on Ind AS adjustments

           0.557

1.670

Other miscellaneous

              (0.005)        

(0.015)

Net Profit for the period (As per Ind-AS)

       23.662

69.755

 

4. There is a possibility that these quarterly financial results may require adjustment before constituting the final Ind AS financial statements as of and for the year ending 31st March, 2017 due to changes in financial reporting requirements arising from the new or revised standards or interpretations issued by Ministry of Corporate Affairs (MCA) or changes in the use of one or more optional exemptions from full retrospective application as permitted under Ind AS 101.


5. Figures of the corresponding previous periods are regrouped and reclassified wherever considered necessary to correspond with current period's presentation.

 

 

INDEX OF CHARGES:

 

S

NO

SRN

CHARGE ID

CHARGE HOLDER NAME

DATE OF CREATION

DATE OF MODIFICATION

DATE OF SATISFACTION

AMOUNT

ADDRESS

1

G46697025

100105544

INDUSIND BANK LTD.

16/03/2017

-

-

280000000.0

240 GEN THIMMAYYA ROADCONTONMENTPUNEMA411001IN

2

C59166694

10580475

THE KARUR VYSYA BANK LIMITED

22/06/2015

-

-

27550000.0

RASHTRAPATI ROADSECOND BAZAAR AREASECUNDERABADTG500003IN

3

G60833738

10420056

AXIS BANK LIMITED

30/03/2013

29/09/2017

-

545500000.0

6-3-879/B, 1ST FLOOR, G PULLA REDDY BUILDING,GREENLANDS ROAD, BEGUMPETHYDERABADTG500016IN

4

Y10233323

90140518

THE VYSYA BANK LTD.

30/05/1998

-

-

460670.0

KOKAMALLYHYDERABADAPIN

5

B95006169

90139116

THE VYSYA BANK LTD.

07/09/1997

-

29/01/2014

8262000.0

CHIRALA BRANCHGUNTURAPIN

6

B72296262

10300969

STATE BANK OF INDIA

07/07/2011

-

05/04/2013

20000000.0

CITY CENTRE BRANCHM.S. TOWERS, ROAD NO: 1, BANJARA HILLSHYDERABADAP500034IN

 

CONTINGENT LIABILITIES

 

PARTICULARS

31.03.2017

INR In Million

31.03.2016

INR In Million

 

 

 

Bank Guarantees (Gross amount)

75.561

69.389

SBLC Guarantee

342.355

134.650

 

FIXED ASSETS:

 

Tangible Assets

 

  • Plant and Machinery
  • Equipment
  • Electrical Equipment
  • Communication Equipment
  • Air Conditioners
  • Computers
  • Furniture and Fixtures
  • Vehicles

 

Intangible Assets

  • SoftWare
  • Good Will

 

 

PRESS RELEASES

 

KELLTON TECH ACQUIRES US-BASED LENMAR GROUP

 

MARCH 30, 2017

 

HYDERABAD: Hyderabad-headquartered Kellton Tech announced today the acquisition of US-based Lenmar Group of Companies, a global IT services and solutions group with a presence in banking and financial services space, for an undisclosed sum.

Kellton Tech sources said Lenmar Group had annual revenues of about $11 million.

 

Lenmar Consulting, the flagship company, provides a broad range of IT offerings, including cloud services and cutting-edge custom development, and has carved a niche for itself in the BFSI market, a Kellton Tech statement said.

 

"This acquisition will deepen Kellton Tech's BFSI IT capabilities and support its next phase of growth in existing markets of the US, India and Europe and new markets in APAC region," it said.

 

Kellton Tech, through this acquisition, will expand its market share in the banking and financial services space and deliver composite strategic value to a wider range of customers.

 

Lenmar will leverage Kellton Tech's capability edge and global footprint to expand its technological and geographical reach, the statement said.

 

Niranjan Chintam, Founder and Chairman, Kellton Tech, said, "the key factor underpinning our rapid growth as a leading enabler of digital transformation has been our ability to invest on the winning technologies ahead of the curve and acquire strategic customers who will help sustain the momentum. The fusion of these two companies with complementary competencies will unleash the synergistic power of our collective capabilities. It will further strengthen our ability to provide authoritative thought leadership in digital transformation."

 

KELLTON TECH ACQUIRES PLANETPRO

 

APRIL 2, 2018

 

Hyderabad-based IT and digital transformation solutions company, Kellton Tech Solutions Limited today announced the acquisition of US-headquartered PlanetPro, which provides Salesforce.com, analytics, and custom programme services to enterprise clients.

 

PlanetPro also has offices in Canada, Singapore, India and a strong business presence across Asia, Kellton Tech said in a statement.

 

PlanetPro specialises in improving sales and marketing performance of businesses by delivering actionable insights through analytics and leveraging the power of Salesforce.com and its ecosystem of applications.

 

It also delivers bespoke programmes designed to improve sales and marketing effectiveness, the statement said.

 

The acquisition enables Kellton Tech to expand its Asia Pacific footprint with PlanetPro's experience in servicing industry leaders in the region, it said.

 

"This augments Kellton Tech's digital transformation capabilities for larger Asian engagements and provides a gateway to increase market share.

 

In addition, the analytics services provided by PlanetPro will further strengthen Kellton Tech's coverage of analytics offerings across functional domains and technology platforms," it was stated.

 

Founder and Chairman of Kellton Tech, Niranjan Chintam said, "PlanetPro has experience providing long-term programs to large enterprise clients with a track record of delivering excellent customer service over an extended period of time."

 

"These strengths will help Kellton Tech penetrate enterprise accounts and deliver analytics services," he said.

Founder and CEO of PlanetPro, Ravi Thota said, "I see great opportunity to combine complementary skill sets and market presence as we expand our suite of services to our combined client base.

 

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

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

 

1]         INFORMATION ON DESIGNATED PARTY

No 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 67.53

UK Pound

1

INR 91.49

Euro

1

INR 80.53

 

 

INFORMATION DETAILS

 

Information Gathered by :

SUP

 

 

Analysis Done by :

NIS

 

 

Report Prepared by :

KVT

 

 

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)

 

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

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