MGL Americas Inc., USA, a 100 % subsidiary of the Company achieved total revenue of Rs 19,658 lakhs and EBITDA of Rs (5,695) lakhs. The
above results also include the performance of Mascon Global Information, S.DE.R.L.DE.C.V. (Mexico), step-down subsidiary of the Company. Mascon Global GmbH., Germany another step down subsidiary of the Company did not have any operations during the year and steps are being taken for its revival.
During the year, MGL Americas Inc, USA underwent financial settlement with its bankers, namely, M/S. Laurus Master Fund to adjust their dues towards their term loan and working capital funding.
MGL Americas had also formed another step-down subsidiary called MGL Telecom Inc. to cater to the Telecom business and except for certain payroll being operated through this corporation no other formal business operations are carried out in this subsidiary.
Anthem Technologies was acquired in 2006 for $16 million and renamed Mascon Global Consulting Inc in 2007. This subsidiary was merged with MGL Americas in 2008, but later sold.
This sale of MGL Solutions to Quadrant 4 for $19 million was not mentioned in the report. If that deal was only with the American subsidiary, then how did Quadrant acquire office space and personnel in India? Obviously Mascon Global did this deal keeping shareholders and creditors in the dark.
In 2009, Mascon Global Limited paid to its subsidiary MGL Americas 2.8 crore as advance during the financial year. It also paid 34.8 crore as advance to another subsidiary Mascon Global (Europe) Ltd. but it has not charged any interest from both the transactions. The TPO sought explanation regarding this non-charging of interest, in response to which the assessee replied vide letter dated 14.10.2009 stating that these advances were made as a part of long term working capital for acquiring new business.
As of now the registered office of MGL Americas: 1249, South River Road, # 102, Cranbury, NJ 08512, is occupied by another company named iDEA Solutions inc.
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