MIRA
INFORM REPORT
|
Report Date : |
14.06.2007 |
IDENTIFICATION DETAILS
|
Name : |
BHARTI AIRTEL LIMITED |
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Formerly Known As : |
BHARTI
TELE-VENTURES LIMITED |
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Registered Office : |
Qutab Ambience,
H-5/12, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
07.07.1995 |
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Com. Reg. No.: |
55-70609 |
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CIN No.: [Company
Identification No.] |
L74899DL1995PLC070609 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELB04730F |
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Legal Form : |
A Public Limited
Liability Company. The company’s
shares are listed on the Stock Exchanges. |
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Line of Business : |
Company is in engaged
in Telecommunications services, Provides telephone services and Internet
access over DSL in 15 circles. The company complements its mobile, broadband
& telephone services with national and international long distance
services. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 290000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a
well-established and reputed company. Available information indicates high financial
responsibility of the company. Directors are reported as experienced and
respectable industrialists. Financial position of the company is good.
Payments are usually correct and as per commitments. The company can
be considered for normal business dealings at usual trade terms and
conditions. |
LOCATIONS
|
Registered Office : |
Qutab Ambience,
H-5/12, |
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Tel. No.: |
91-11-51666000-007 |
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Fax No.: |
91-11-51666011/12 |
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E-Mail : |
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Website : |
DIRECTORS
|
Name : |
Mr. Sunil Bharti
Mittal |
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Designation : |
Chairman & Managing
Director |
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|
|
Name : |
Mr. Rajan Bharti
Mittal |
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Designation : |
Joint Managing
Director |
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|
Name : |
Mr. Akhil Gupta |
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Designation : |
Joint Managing
Director |
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|
|
|
Name : |
Mr. Sin Hang Boon |
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Designation : |
Director nominated
by Singtel |
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|
|
|
Name : |
Mr. Lim Toon |
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Designation : |
Director
nominated by Singtel |
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|
|
|
Name : |
Mr. Lung Chien
Ping |
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Designation : |
Director |
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|
|
|
Name : |
Mr. Bashir
Abdulla Currimjee |
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Designation : |
Director |
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|
Name : |
Mr. Pulak Chandan
Prasad |
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Designation : |
Director |
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|
Name : |
Mr. Paul
O’Sullivan |
|
Designation : |
Director |
|
Name : |
Ms. Chua Sock
Koong |
|
Designation : |
Director
nominated by SingTel |
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|
|
|
Name : |
Mr. Dalip Pathak |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Donald
Cameron |
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Designation : |
Director |
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|
|
|
Name : |
Mr. Wong Hung
Khim |
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Designation : |
Director |
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|
Name : |
Mr. N Kumar |
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Designation : |
Director |
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Name : |
Mr. P M Sinha |
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Designation : |
Director |
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|
Name : |
Mr. Ajay Lai |
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Designation : |
Non-Executive Director |
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Name : |
Mr. Arun Bharat
Ram |
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Designation : |
Non-Executive Director |
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Name : |
Mr. Bashir
Currimjee |
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Designation : |
Non-Executive Director |
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Name : |
Mr. Chua Sock
Koong |
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Designation : |
Non-Executive Director |
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Name : |
Mr. Donald
Cameron |
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Designation : |
Non-Executive Director |
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Name : |
Mr. Gavin John
Darby |
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Designation : |
Non-Executive Director |
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Name : |
Mr. Kurt
Hellstrom |
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Designation : |
Non-Executive Director |
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Name : |
Mr. N. Kumar |
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Designation : |
Non-Executive Director |
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Name : |
Mr. Paul Donovan |
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Designation : |
Non-Executive Director |
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Name : |
Mr. Paul
O'Sullivan |
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Designation : |
Non-Executive Director |
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Name : |
Mr. Pulak Chandan
Prasad |
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Designation : |
Non-Executive Director |
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|
Name : |
Mr. Rakesh Bharti
Mittal |
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Designation : |
Non-Executive Director |
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|
Name : |
Mr. Syeda
Bilgrami Imam |
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Designation : |
Non-Executive Director |
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|
Name : |
Mr. V. S. Raju |
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Designation : |
Non-Executive Director |
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|
Name : |
Mr. York Chye
Chang |
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Designation : |
Non-Executive Director |
KEY EXECUTIVES
|
Name : |
Mr. Vijaya
Sampath |
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Designation : |
General Counsel
and Company Secretary |
|
|
|
|
Name: |
Mr. Sunil Bharti Mittal |
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Designation: |
Chairman and Managing Director |
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Age: |
44 Years |
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Qualification: |
Graduate |
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Experience: |
25 Years |
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Date of
Joining: |
01st October, 2001 |
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Previous
Employment: |
Bharti Telecom Limited, Chairman |
|
|
|
|
Name: |
Mr. Rajan Bharti Mittal |
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Designation: |
Joint Managing Director |
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Age: |
44 Years |
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Qualification: |
B.A. |
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Experience: |
20 Years |
|
Date of
Joining: |
01st October, 2001 |
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Previous
Employment: |
Bharti Healthcare Limited |
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|
|
|
Name: |
Mr. Akhil Gupta |
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Designation: |
Joint Managing Director |
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Age: |
46 Years |
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Qualification: |
FCA |
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Experience: |
20 Years |
|
Date of
Joining: |
01st October, 2001 |
|
Previous
Employment: |
Consultancy |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
PROMOTERS'
HOLDING |
|
|
|
Promoters |
|
|
|
- Indian promoters |
859,986,028 |
45.41% |
|
Persons acting in concert |
1,300,700 |
0.07% |
|
Mutual Funds and UTI |
40,674,230 |
2.15% |
|
Banks, Financial Institution, Insurance
Companies, Central/State Government Institutions/ Non-Government Institutions |
32,300,424 |
1.71% |
|
Fll |
485,119,934 |
25.62% |
|
Private corporate bodies |
24,137,879 |
1.27% |
|
Indian public |
19,136,493 |
1.01% |
|
NRIs/OCBs |
15,550,929 |
0.82% |
|
Foreign Companies |
409,254,605 |
21.62% |
|
Trusts |
4,207,230 |
0.22% |
|
HUF |
247,870 |
0.01% |
|
Clearing Members (NSDL&CDSL) |
1,962,982 |
0.10% |
|
Total |
1,893,879,304 |
100.00% |
As on June
30, 2006
|
Category |
No of Shares |
Percentage of Holding |
|
Promoters
Holding |
|
|
|
Bodies Corporate |
859986028 |
45.38 % |
|
Non
Promoters Holding |
|
|
|
Mutual Funds and
UTI |
41728652 |
2.20 % |
|
Financial
Institutions / Banks |
3929435 |
0.21 % |
|
Insurance
Companies |
29930132 |
1.58 % |
|
Foreign
Institutional Investors |
485351445 |
25.61 % |
|
Any Other |
19951551 |
1.06 % |
|
Bodies Corporate |
25604612 |
1.35 % |
|
Individuals |
20410803 |
1.08 % |
|
Foreign Companies
|
408348907 |
21.55 % |
|
Total |
1895241565 |
100.00 % |
BUSINESS DETAILS
|
Line of Business : |
Company is in
engaged in Telecommunications services, Provides telephone services and Internet
access over DSL in 15 circles. The company complements its mobile, broadband
& telephone services with national and international long distance
services. |
GENERAL INFORMATION
|
No. of Employees : |
300 |
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Bankers : |
ICICI Bank
Limited |
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Facilities : |
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Banking
Relations : |
Good |
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Auditors : |
|
|
Name : |
Price Waterhouse Chartered
Accountants |
|
Address : |
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|
|
|
Associates : |
Ř
Bharti
Hexacom limited Ř
Bharti
Broadband Limited Ř
Satcom
Broadband Equipment Limited Ř
Singapore
Telecommunications Limited Ř
Bharti
Telesoft Limited Ř
Bharti
Teletech Limited Ř
Bharti
Telesoft International Limited Ř
Teletech
Services ( Ř
Mulberry
Projects Private Limited Ř
Bharti
Foundation Ř
Bharti
Tele-Ventures Employees Trust |
|
|
|
|
Subsidiaries : |
Ř
Bharti
Comtel Limited Ř
Bharti
Aquanet Limited |
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|
Joint Venture
: |
Ř
Forum
I Aviation Limited Ř
Bridge
Mobile Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2,500,000,000 |
Equity Shares |
Rs.10.00 each |
Rs. 25,000.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1,893,879,304 |
Equity Shares |
Rs.10.00 each |
Rs. 18938.793 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
SHAREHOLDERS FUNDS |
|
|
|
|
1] Share Capital |
18938.793 |
18560.900 |
18533.668 |
|
2] Share
Application Money |
121.260 |
-- |
-- |
|
3] Reserves & Surplus |
54395.531 |
26775.100 |
29714.890 |
|
NETWORTH |
73455.584 |
45336.000 |
48248.558 |
|
|
|
|
|
|
LOAN FUNDS |
|
|
|
|
1] Secured Loans |
28633.707 |
39598.800 |
13.597 |
|
2] Unsecured Loans |
19329.201 |
10344.100 |
6250.000 |
TOTAL BORROWING
|
47962.908 |
49942.900 |
6263.597 |
|
DEFERRED TAX
LIABILITIES |
1890.459 |
-- |
-- |
|
|
|
|
|
TOTAL
|
123308.951 |
95278.900 |
54512.155 |
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
130068.771 |
97649.900 |
145.571 |
|
Capital work-in-progress |
23412.498 |
9944.600 |
0.994 |
|
|
|
|
|
|
INVESTMENTS |
7196.981 |
9319.000 |
17626.656 |
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
Inventories |
177.444 |
315.800 |
0.000 |
|
Sundry Debtors |
10761.709 |
7157.400 |
0.000 |
|
Cash & Bank Balances |
3074.285 |
3841.400 |
1.333 |
|
Other Current Assets |
0.000 |
0.000 |
0.000 |
|
Loans & Advances |
15529.497 |
12056.400 |
36882.246 |
|
Total Current Assets |
29542.935 |
23371.000 |
36883.579 |
|
Less : |
|
|
|
|
Current Liabilities & Provisions |
64655.783 |
43088.900 |
135.527 |
Provisions
|
2335.851 |
2500.100 |
22.153 |
Total Current Liabilities
|
66991.634 |
45589.000 |
157.680 |
|
Net Current Assets |
(37448.699) |
(22218.000) |
36725.899 |
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
79.400 |
583.400 |
13.035 |
|
|
|
|
|
TOTAL
|
123308.951 |
95278.900 |
54512.155 |
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
|
112905.793 |
80268.500 |
631.540 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
22857.955 |
15642.800 |
(2.466) |
Provision for Taxation
|
2737.161 |
3536.100 |
(1.197) |
Profit/(Loss) After Tax
|
20120.794 |
12106.700 |
(3.663) |
|
|
|
|
|
Total Expenditure
|
61323.268 |
70299.300 |
629.074 |
SUMMARISED RESULTS
|
Particulars |
|
|
31.03.2007 (Full year) |
|
Sales Turnover |
|
|
177944.300 |
|
Other Income |
|
|
935.600 |
|
Total Income |
|
|
178879.900 |
|
Total Expenditure |
|
|
106774.800 |
|
Operating Profit |
|
|
72105.100 |
|
Interest |
|
|
2558.400 |
|
Gross Profit |
|
|
69546.700 |
|
Depreciation |
|
|
23533.000 |
|
Tax |
|
|
5205.300 |
|
Reported PAT |
|
|
40332.200 |
|
Dividend (%) |
|
|
0.000 |
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity
Ratio |
0.83 |
0.60 |
0.07 |
|
Long
Term Debt-Equity Ratio |
0.63 |
0.50 |
0.03 |
|
Current
Ratio |
0.41 |
1.10 |
17.30 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
0.72 |
1.19 |
0.00 |
|
Inventory |
455.34 |
500.51 |
0.00 |
|
Debtors |
12.53 |
22.08 |
0.00 |
|
Interest
Cover Ratio |
10.65 |
5.93 |
0.39 |
|
Operating
Profit Margin (%) |
35.22 |
36.70 |
0.00 |
|
Profit
Before Interest And Tax Margin (%) |
22.47 |
23.80 |
0.00 |
|
Cash
Profit Margin (%) |
30.68 |
28.22 |
0.00 |
|
Adjusted
Net Profit Margin (%) |
17.92 |
15.32 |
0.00 |
|
Return
On Capital Employed (%) |
22.55 |
23.96 |
0.16 |
|
Return
On Net Worth (%) |
31.82 |
23.88 |
-0.27 |
STOCK PRICES
|
Face Value |
Rs. 10/- |
|
High |
Rs. 830.95 |
|
Low |
Rs. 800.60 |
LOCAL AGENCY FURTHER INFORMATION
Fixed
assets
Ř
Goodwill
Ř
Leasehold
land
Ř
Freehold
hand
Ř
Leasehold
VSAT assets
Ř
Plant
& machinery
Ř
Air
conditioners
Ř
Building
& leasehold improvements
Ř
Office
equipment
Ř
Computer
Ř
Vehicle
Ř
Furniture
& fixtures
History:
Subject
(Formerly known as Tele-Ventures (BTVL)) was incorporated on 07.07.1995, for
promoting investments in diversified telecom service projects. The company was
formed as 80:20 joint ventures between the Bharti Group through its subsidiary
Bharti Telecom and STETS International Netherlands NV, a company promoted by
Telecom Italia,
Concern is one of
In 2000, subject acquired an effective equity interest of 40.5% in Bharti
Mobinet (formerly Skycell Communication), the cellular service provider in
Chennai. It also acquired a 30.20% equity interest of Telecom Italia in Bharti
Telenet and 18.8% from Bharti Telecom thereby making Bharti Telenet a 100%
subsidiary of subject. Subject also
holds an effective 74% equity in Bharti Mobile and 100% equity in Bharti
Cellular. Bharti Telenet has entered into license agreements to provide
fixed-line services in the Haryana,
Subject’s two subsidiaries Bharti Cellular Limited and Bharti Infotel Limited
have been merged with the company with effect from 01.04.2004. Subsequently
Bharti Broadband Limited and Satcom Broadband Equipment Limited have become the
subsidiaries of the company after the above said merger. During 2005 the
company acquired 1% equity stake of Bharti Hexacom Limited (formally known as
Hexacom India Limited). With this acquisition the company stake in Bharti
Hexacom Limited has increased to 68.50%. Bharti Hexacom owns Licenses to
operate cellular services in the Rajasthan and North East Circles.
In 2005 the company was awarded the 'Indian
The company launched its mobile operations in seven new circles of Assam,
Bihar, Jammu & Kashmir, North East, Orissa, Uttar Pradesh (East) and West
Bengal during 2005. Also the company entered into the partnerships with the
leading companies like Nokia, Siemens, Ericsson and IBM for its network
planning, supply & management and for its IT requirements respectively.
During 2005-2006, Vodafone acquired 10% economic interest in the company by way
of subscription of convertible debentures in Bharti Enterprises Limited,
representing an indirect economic interest in Bharti Airtel Limited and
acquisition of direct interest in the company from Warburg Pincus LLC. The
company also signed a managed capacity expansion contract with Ericsson to
provide managed services and expand its GSM/GPRS network into rural
The company was awarded 'Best Managed Company Award 2005' in the large cap
category by Asia Money, 'Avaya Global Connect Customer Responsiveness Award
2005' for best customer service in the telecom sector, 'Most preferred Mobile
Service' by CNBC Awaaz Consumer Awards, 'Asian Mobile News Awards 2005' and
'Mobile Operator of the Year, India Award', 'Best GSM carrier in Asia' in the
Telecom Asia Awards 2005, 'Best Indian Carrier' in the Telecom Asia Awards
2005, 'Market Leadership Award for Managed WAN Services Market, 2005' By Frost
& Sullivan, 'Wireless service Provider of the year 2006' and 'Competitive
Service Provider of the year 2006' by Frost & Sullivan Asia Pacific. The
company also ranked among the top three companies in The Economics Times Top
500. The company is featured among the Forbes Global 2000 leading companies in
the world for the year 2005 and is ranked 2nd among the 'Best Managed
Companies' in
Business:
The company is a
leading private telecommunications services provider in
During 2002-03 it
also arranged an international funding of USD 300 million. Some of the major
developments in 2002-03 include: Launching of eight new mobile services, two
new fixed line services, ILD services and a submarine cable landing station at
Chennai. In 2002-03 the company made a brief corporate restructuring by merging
all the mobile operations into Bharti Cellular Limited and all fixed line, long
distance and data services into Bharat Infotel Limited.
The company presently offers mobile service in fifteen of the 22 circles in
Financial
Review:
Overview
Subject is one of
During the 2005-06 financial year, the Company crossed certain key milestones,
and maintained its position as one of the leading telecommunications services
provider in
Some of the key highlights include the following:
The Company became
Highest ever net addition of 9,084,406 customers in a year;
Full year consolidated gross revenues of Rs 117.3 billion (~US$ 2.63 billion)
and consolidated EBITDA of Rs. 42.2 billion (US$ 947 million);
Full year consolidated net profit of Rs. 20.3 billion (US$ 455 million);
Year-on-year growth of total customer base by 77% resulted in a 44% increase in
revenues, 38% increase in EBITDA and 67% growth in net profit.
The strong
operational performance of the Company during the year culminated into an
equally robust financial performance.
The consolidated revenues and EBITDA for the year ended March 31, 2006 was Rs.
117,255 million and Rs. 42,250 million respectively. The consolidated revenues
and EBITDA grew by 44% and 38% respectively for the year ended March 31,
2006.
The net finance cost for the year was Rs. 2,244 million as compared to Rs.
2,439 million for the corresponding period previous year. The finance cost
declined with the net debt going up front Rs. 41,171 million to Rs. 41,738
million. This has been made possible due to replacement of certain old
borrowings by new borrowings at lower finance cost and funding through
networking capital movement. The increase in absolute EBITDA along-with reduced
finance cost during the year resulted in the cash profit from operations for
the year ended March 31, 2006 of Rs. 40,006 million as compared to Rs. 28,219
million for the year ended March 31, 2005.
Profit before tax for the year ended March 31, 2006 was Rs. 23,455 million, and
the net profit was at Rs. 20,279 million leading to a net profit growth of 67%
over the previous year and an earnings per share (basic) of Rs. 10.776.
Net debt for the year ended March 31, 2006 was Rs. 41,738 million resulting in
the net debt to EBITDA of 0.99 times and interest coverage ratio of 17.71
times.
Subsidiary
companies
The Company has obtained an exemption from the Ministry of Company Affairs,
Government of India vide letter No. 47/164/2006-CL III dated April 26, 2006 in
terms of Section 212(8) of the Companies Act from attaching the audited
accounts of its subsidiaries for the financial year. In pursuance thereof, the
Company undertakes that annual accounts of the subsidiary companies and the
related detailed information for the year ended March 31, 2006 will be made
available to its investors and subsidiary companies investors seeking such
information at any point of time. The annual accounts of the subsidiary
companies are also kept for inspection by any investor at the registered office
of the Company and the concerned subsidiary companies. The statement required
pursuant to the above referred approval letter are disclosed after the
Consolidated Accounts of the Company forming part of this Annual Report.
Highlights of
the Year
Major agreements and alliances: With the objective of consolidation and
achieving business synergies, Bharti Cellular Limited and Bharti Infotel
Limited have been merged with the Company. The same was sanctioned by the
Hon'ble High Court of Delhi on May 21, 2005. The effective date of the merger
was April 1, 2004.
Subject signed a managed capacity expansion contract with Ericsson to provide
managed services and expand its GSM /GPRS network into rural
The Company and IBM launched Managed Services under their joint go-to-market
program. The initial offering portfolio includes managed hosting services and
business resiliency and continuity services to enterprise customers in
The Company entered into an agreement with Nokia to expand its managed
GSM/GPRS/EDGE networks in eight circles. Nokia will provide managed services
and expand the Company's network in Mumbai, Maharashtra and Goa, Gujarat, Bihar
and Jharkhand, Orissa, Kolkata, West Bengal and Madhya Pradesh over a three-year
period.
The Company decided not to proceed with the proposed sponsored ADR due to lack
of sponsorship interest by most of its principal shareholders.
The Company entered into strategic partnership outsourcing agreements for its
customer care call center operations to four international BPOs Hinduja TMT
(HTMT), IBM Daksh, Mphasis and Teletech Services, with the expectation of
significantly enhancing quality of customer service delivery to Bharti Airtel
customers across the country. The Company also entered into an agreement with
Nortel for technological expertise and availing best practices in customer care
developed through Nortel's worldwide customer base.
Vodafone acquired 10% economic interest in the Company during the financial
year 2005-06, by way of subscription of convertible debentures in Bharti
Enterprises Limited, representing an indirect economic interest in Bharti
Airtel Limited and acquisition of direct interest in the Company from Warburg
Pincus LLC.
South East Asia, Middle East and Western Europe 4 (SEA-ME-WE-4) - A consortium
of 16 international telecommunications companies including their Company
successfully commissioned the next generation undersea cable system during the
year.
The Company announced its new integrated organization structure with the
appointment of Manoj Kohli as the President of all business units to lead the
integrated management structure with effect from March 1, 2006.
In order to reflect its brand essence, objective and the nature of its business
activities, the Company name was changed to Bharti Airtel Limited from Bharti
Tele Ventures Limited, effective April 24, 2006.
New products/initiatives:
During the year, the Company introduced new and innovative products that were
received well in the market and enabled the Company to maintain its leadership
position despite competitive pressures.
The Company introduced Rs. 200/- denomination monthly recharge coupon in May
2005. It thus lowered the recharge denomination available in the market, thereby
making mobile services more affordable.
Launch of Blackberry(R) 7100gTM business phone in
Launch of a suite of mobile services including Bridge Roaming, Bridge prepaid,
Bridge Enterprise and Bridge Concierge. These services will enable their customers
to enjoy a seamless mobile service experience when roaming overseas on the
Alliance Members network. Subject is the founder member of the Bridge Alliance,
which was established in November 2004 and includes Globe Telecom (
The Company launched 'Future Factory - Centres of Innovation' to incubate
pioneering mobile applications. The Future Factory has been conceptualized with
the purpose of developing applications to cater to the needs of customer
segments across the entire spectrum.
Bharti Airtel, ICICI Bank and VISA joined hands to launch mChq - a credit card
on the mobile phone. This is the first mobile-to-mobile payment option, which
enables Bharti Airtel customers and ICICI Bank Visa cardholders to pay for
their purchases with their Airtel mobile phones.
Subject launched a suite of 'One India plans' for
Concern launched the world's first Easy Music service for mobile phones. This
service allows a mobile phone user a choice of over 18,000 songs in over 20
languages for purchase from over 100,000 Bharti Airtel retail outlets in
Concern introduced
Business Review
Mobile Services
During the financial year, the Company expanded its operations to 3,778 census
towns and over 80,687 non-census towns and villages covering approximately 40%
of the country's total population. The Company added 8,594,928 mobile
subscribers during the year, garnering 22.7% share of the all
The revenues from mobile services for the financial year were Rs.83, 095
million, a growth of 50% over the revenues in the previous financial year. The
mobile services business contributed 71% to the consolidated revenues. The
growth in revenues happened despite reductions in tariffs and intense
competition. This robust growth was due to increases in subscriber base on
account of the launch of Rs. 200 monthly recharge coupon and Rs. 993 lifetime
prepaid, higher traffic on networks, and expansion of non-voice services. With
mobile tariffs in
Broadband & Telephone Services
The Company provides Broadband & Telephone Services in 90 cities across
The customer base for the Broadband & Telephone Services grew by 57% in the
year ended March 31, 2006. The revenues from the Broadband & Telephone
Services were Rs.15,075 million, a growth of 33% over the revenues in the
previous financial year. The earnings before interest and taxation was Rs. 606
million as compared to Rs. 1442 in the previous financial year. The decline in
EBIT was essentially due to the launch of services in 38 new cities during the
financial year.
As a part of the new integrated structure, the Company has reclassified and
created two sub units under this business group, viz. Carriers (Long Distance
Services) and Corporates.
The Company complements its
During the financial year, the Company saw significant growth in the long
distance traffic carried on its network due to the increased customer base and
lower tariffs on account of reduction in the regulatory costs (License fee and
Access Deficit Charge).
This sub-unit of Enterprise Services provides secure, scalable, seamless,
reliable and customized integrated solutions of voice and data communications
to corporate, small and medium scale enterprises, thus offering total telecom
solution through a single window. The unit focuses on delivering
telecommunications services as an integrated offering including mobile,
broadband, telephone, national and international long distance and data
connectivity services to key account corporate customers through business
relationship management.
Regulatory and Key Industry
Developments
During the year, the following are the key regulatory developments:
Telecom Regulatory Authority of India (TRAI) introduced a revised Interconnection
Usage Charge (IUC) regime. 'Per-minute' Access Deficit Charge (ADC) on domestic
calls has been replaced by a 'revenue-share' of 1.5% of adjusted gross revenue
as ADC, payable to BSNL. Revenue from Rural Fixed Wire line subscribers is exempt
from ADC. 'Per minute' ADC continues on ILD calls but at a reduced rate.
Carriage charges, which were distance based earlier, are now left to
negotiation between operators subject to a ceiling of Rs.0.65/minute;
The IUC (Fifth Amendment) Regulation, 2005 that imposed ADC on calls originated
by national and international roamers has been set aside by TDSAT;
TRAI has issued a Regulation on Quality of Service Parameters of Basic and
Cellular Mobile Telephone Services and a Regulation on Code of Practice for
Metering and Billing Accuracy in
The ceiling tariffs for IPLCs prescribed by TRAI, which were contested by VSNL,
have been upheld by TDSAT and these are now in effect;
Pursuant to public consultations, TRAI has submitted recommendations to the
Department of Telecom on the following matters:
Spectrum
Convergence and Competition in Broadcasting and Telecommunications Mobile
Number Portability next Generation Networks, measures to promote
growth of telecom services in rural areas, measures to Promote Competition
in IPLC in India, publications of Telephone Directory and Provision of
Directory Enquiry Services.
The Do has issued guidelines for allocation of GSM spectrum beyond 10 MHz and
upto 15 MHz, and allotment of 5th and 6th CDMA carriers. The allocation
criterion continues to be linked to a minimum subscriber base. The rest of the
recommendations are under consideration.
The Government of
India enhanced the FDI ceiling in the telecom sector from 49% to 74% subject to
certain preconditions.
The Central Government revised terms and conditions of several telecom service
licenses which include:
Entry Fee for NLD and ILD licenses reduced from Rs.1,000 million and Rs.250
million respectively to Rs. 25
Million;
Annual License Fee for NLD and ILD licenses reduced from 15% to 6% of Adjusted
Gross Revenue (AGR);
NLD and ILD licensees permitted to access subscribers directly for provision of
Leased Circuits/ Closed User
Groups;
Annual License Fee @ 6% of AGR imposed on Internet Service Providers licensed
with restricted internet
Telephony;
Infrastructure provider category II and VPN licenses abolished. Existing
licensees permitted to migrate to NLD/ILD licenses;
Annual License Fee for VSAT commercial license reduced from 10% to 6% of
AGR.
INDUSTRY STRUCTURE AND DEVELOPMENTS
Indian telecom Industry
Driven by rising income levels and favourable demographics,
With about 20.93 million mobile and broadband & telephone customers on
March 31, 2006, the Company is the largest private integrated telecom player in
Recent developments
The telecom industry is one of the most dynamic industries in the country today
and is characterized by a constantly evolving regulatory environment. The
relative importance of regulatory changes should be viewed in light of the big
challenges and opportunities that the industry is facing today (as detailed in
Section 2 of this report). On balance, the direction and pace of regulatory
changes is positive for the industry and augurs well for the Company.
OUTLOOK
They believe that subject, will benefit from the overall economic growth
and the potential for further growth of telecom services in the Indian market.
They are the first and only private GSM mobile operator to have an all-India
footprint. They believe that they are in a strong position to enhance their
leadership, based on :-
Ř
Their rich human resource talent pool
Ř
The growth potential of new services in the data market and their
track record in innovation
Ř
The expansion of their networks to rural markets
Ř
Their ability to maximize returns on investment
Ř
The ability to leverage the strengths of their business partners and
their integrated player status
Ř
Their focus on building a strong brand, and enhancing customer
experience.
They have consistently been the first to market with many successful and
innovative products that add to superior customer experience and satisfaction.
For instance, they introduced a validity free world in
They firmly believe that they will continue to provide unique and innovative
products and services to their customers that will help us further consolidate
their market leadership.
Press clippings
BHARTI FULFILLS ITS COMMITMENT TO THE PEOPLE OF ANDAMAN AND NICOBAR
Airtel
becomes the first private service provider to commence mobile services in the
islands
Completes one of the fastest mobile network rollouts
– Keeps its commitment of
Launching Airtel by the end of this
fiscal to accelerate the process of building
Back the islands
Commissions
a world class GPRS mobile network on a VSAT
Backbone in partnership with Siemens –
world leaders in mobile
Technology
Launch
of Airtel heralds the beginning of an era of choice
Investments
of more than Rs. 200 millions earmarked
Airtel
brings a bouquet of unique, innovative services like Hello
Tunes, Airtel Live and Easy Charge
Port Blair,
March 23, 2005: Bharti
Cellular Limited, a subsidiary of Bharti Tele-Ventures, one of
The launch of
Airtel in Andaman & Nicobar is one of the fastest rollouts of a mobile
network and it has been made possible by deploying a VSAT backbone. The launch
heralds the beginning of an era of ‘choice’ in Andaman & Nicobar. This
launch also takes Bharti much closer to establishing an all
Source: Asia
Launching Airtel in
Andaman & Nicobar Islands, Mr. Manoj Kohli, President, Bharti Cellular
Limited, said, “A reliable, world class telecom network is the corner stone of
any city, state or nation. While embarking on this project, they realized the
complexities of laying a network amidst the challenging conditions that
prevailed here. However, they took it as a mission, and today it is my proud
privilege to launch Airtel in this land of history and culture.”
According to Mr.
Rajan Swaroop, Director, Eastern Hub, Bharti Cellular Limited, “This is a
historic moment as the launch of Airtel ushers in an era of ‘choice’ in the
region. Subject’s world class network, high quality customer service,
innovative value added services and seamless coverage will redefine the mobile
telephony experience of customers in Andamans and provide them the same
experience, which has made Airtel the choice of millions of customers across
the country. With the launch of services in Andamans, they have also become the
first private mobile service provider to complete full rollout under the
BHARTI CELEBRATES ITS 23 CIRCLE ALL
Becomes the
first to deliver the Hon’ble Union Communication Minister’s vision of ‘One
Bharti becomes first to offer benefits of an
All India footprint
Bharti
makes roaming accessible & affordable for all – delivering
The vision of the Hon’ble Minister.
All
Airtel customers to enjoy the benefits of roaming – the true
Power of GSM.
Airtel
further underlines it’s commitment to create affordability
For the masses and build a roaming
‘community’.
With the reduction
in roaming tariffs, Bharti becomes the first mobile service provider to offer
the benefit of an All-India footprint for its customers. Both pre-paid &
post-paid customers will now be able to access roaming services across the
country at extremely affordable rates. The reduction in roaming tariffs
underlines Subject’s commitment towards creating affordable mobile services for
the masses and building a roaming community.
The roaming rates
have been reduced to Rs. 1.99 for all Airtel mobile customers, across the
country. The new roaming tariffs come into effect from 1st May. Now all Airtel
customers will be able to enjoy the benefits of roaming – the true power of GSM
– at highly affordable roaming charges.
Announcing the new
roaming tariffs, Mr. Sunil Bharti Mittal, Chairman & Group Managing
Director, Bharti Tele-Ventures Limited, said, “ As a leading player of
the cellular mobile industry, Airtel has always innovated and made
telecom services available to the masses of India. This reduction in the
roaming rate will expand the roaming community in
Bharti, became the
first private service provider in the country to have an All-India footprint
when it launched its services in Assam – the 23rd circle on April 13th
2005, with a call to the Hon’ble Prime Minister of India Dr. Manmohan Singh and
the Hon’ble Minster of Communication & IT, Mr. Dayanidhi Maran. With the
launch of services in
Subject
is one of
Bharti Tele-Ventures
to Observe Silent Period
Category:
FY2005-2006, Recent Highlights 2005-2006
31-03-06
New Delhi, March 31, 2006 - Bharti
Tele-Ventures, India’s leading private telecom services provider would be
observing a 'Silent Period' from the close of business (6:30 p.m.) today till
the declaration of results for the fourth quarter and full year ended March 31,
2006, as a commitment towards highest level of corporate governance.
The practice of silent period does not refrain the company
and its representatives from any press conference & public dissemination of
information. The observation of silent period is only a practice and hence does
not imply any legal obligation for the company under any circumstances.
About
Bharti Tele-Ventures
Bharti Airtel is the proposed new name of Bharti
Tele-Ventures. This new name is subject to legal and regulatory approval. Bharti
Tele-Ventures is one of
The Hon’ble Prime Minister
inaugurates Bharti School of Telecommunication Technology & Management at
IIT, Delhi
Category: Recent Highlights
2005-2006
20-03-06
·
The
School is an initiative by IIT,
- Backed by state-of-the art
infrastructure and best of faculty
Also
present on the occasion were Prof. Surendra Prasad, Director, IIT,
On
the occasion, Prof. Surendra Prasad, Director, IIT Delhi, said, “The IITs have
been created as centres of excellence for higher learning, research and
development in science, engineering and technology in
Mr.
Sunil Bharti Mittal, Chairman & Group Managing Director, Bharti Enterprises
& Co-chairman, Bharti School Advisory Board, said, “Education is the key
for advancing India’s position in the global market as a hub for technology
innovations and for bringing in all-round development of the economy.
According
to Mr. Rakesh Bharti Mittal, Vice Chairman, Bharti Enterprises & Member, Bharti
School Advisory Board, “They are very proud to be associated with IIT,
Bharti
has given a grant of Rs 200 millions to establish the Bharti School, of which
Rs. 100 millions has been spent towards infrastructure support, including
construction of the building, while Rs. 100 millions has been set aside as a corpus
to facilitate smooth functioning of the School.
About Bharti Foundation
Bharti
Foundation was established in 2000, with a vision “To help underprivileged
children and young people of their country realize their potential.” The
Foundation creates and supports programs that bring about sustainable changes,
predominantly in the field of education. Bharti Foundation has set for itself
the goals of improving the quality of primary education for disadvantaged
children and ensure education and training opportunities for youth to help them
realize their potential.
Bharti
Computer Centres is one of the key programs, which aims at improving learning
levels of underprivileged children, using computer-aided learning. The Centres
also provide computer exposure and training to disadvantaged youth in the
communities, in which they operate. Bharti Library and Activity Centres aim at
improving basic reading ability and learning levels of children. Mid-day-meal
program of Bharti Foundation provides mid-day meals to underprivileged children
in Vrindavan. Bharti School of Telecommunication Technology and Management (at
IIT,
Highlights
for Full Year ended March 31, 2006
• Overall customer
base crosses 20 millions marks.
• Highest ever-net
addition of 9.084 millions customers in a year.
• Total Revenues of
Rs. 116630 millions (up 46% Y-o-Y).
• EBITDA of Rs.
43600 millions (up 45% Y-o-Y).
• Cash Profit of
Rs. 40950 millions (up 46% Y-o-Y).
• Net Profit of Rs.
22580 millions (up 51% Y-o-Y).
Highlights for
Fourth Quarter ended March 31, 2006
• Market leader with a market share of all
• Highest ever-net addition of 3.399 millions
customers in a single quarter.
• Total Revenues of Rs. 34110 millions (up 47%
Y-o-Y).
• EBITDA of Rs. 12780 millions (up 41% Y-o-Y).
• Cash Profit of Rs. 12050 millions (up 46%
Y-o-Y).
• Net Profit of Rs. 6820 millions (up 49%
Y-o-Y).
BTVL
Consolidated - Summary of Consolidated Financial Statements (Un-audited) - represents Consolidated Statement of Income as per United States
Generally Accepted Accounting Principles [US GAAP]
|
Particulars |
Quarter Ended |
Y-0-Y Growth |
Full Year Ended |
|
|
|
March 2006 |
March 2005 |
|
March 2006 |
|
Total Revenue |
0.003 |
0.002 |
47 % |
0.011 |
|
EBIYDA |
0.001 |
0.001 |
41 % |
0.004 |
|
Cash profit from
operations |
0.001 |
0.001 |
46 % |
0.004 |
|
Earnings/(loss)
before taxation |
0.001 |
0.001 |
45 % |
0.003 |
|
Net profit /
(loss) |
0.006 |
0.000 |
49 % |
0.002 |
|
EBITDA / Total
Revenues |
37.5 % |
38.9 % |
|
37.4 % |
|
Parameters |
Unit |
March 31 2006 |
Decd 31 2005 |
O-on-Q Growth |
|
Customer on their
|
000’ s |
19579 |
16327 |
20 % |
|
Broadband and
Telephone services |
000’ s |
1347 |
1200 |
12 % |
|
|
000’ s |
20926 |
17527 |
19 % |
About Bharti
Airtel Limited
Bharti Airtel is one of
(formerly
known as Bharti Tele-Ventues Limited)
The company is a part of Bharti Enterprises, and is
Highlights:
v
Bharti
Tele-Ventures is the “BEST INDIAN CARRIER” at Telecom Asia Awards 2006
v
Bharti
announces un-audited results for the fourth quarter and full year ended March
31, 2006
v
Bharti has
been adjudged as India's 'second best employer' by Hewitt Associates.
v
Bharti,
India’s leading telecom conglomerate, declared country’s best-managed company
by Asiamoney.
Bharti Airtel ranked among Best Performing Asian Companies
The
others in the list include Reliance Industries (17), Infosys (23), China
Petroleum & Chemical (25), Yamaha Motor (45) Mitsubishi Corp (53) and Posco
(70). The companies were ranked using a combination of financial measures for
earnings and sales growth, plus return on assets and other benchmarks.
Companies were evaluated over both one year and three year time frames.
Sunil
Bharti Mittal, Chairman and Managing Director, Bharti Airtel Limited said,
“Getting featured among the
This is what BusinessWeek said about Bharti Airtel “The
company will spend $2 billion on network expansions and marketing to reach
underserved markets in rural areas. That’s serious money—and a step toward
Mittal’s broader ambition “to be the most admired brand in
Bharti
Airtel Limited: FY 2007 - A Year of Accelerated Growth & Market Leadership
27-04-07
Bharti Airtel announces results for the fourth quarter and full year ended March 31, 2007
Highlights
for Full Year ended March 31, 2007
Overall
customer base crosses 39 millions.
Highest
ever-net addition of 18 millions customers in a year.
Market
leader with a market share of all
Total Revenues
of Rs. 185200 millions (up 59% Y-o-Y)
EBITDA
of Rs. 74510 millions (up 72% Y-o-Y).
Cash
Profit of Rs. 73070 millions (up 79% Y-o-Y).
Net
Profit of Rs. 42570 millions (up 89% Y-o-Y).
Highlights
for Fourth Quarter ended March 31, 2007
Highest
ever-net addition of 5.3 millions customers in a single quarter.
Total
Revenues of Rs. 53930 millions (up 58% Y-o-Y).
EBITDA
of Rs. 22410 millions (up 75% Y-o-Y).
Cash
Profit of Rs. 21930 millions (up 82% Y-o-Y).
Net
Profit of Rs. 13530 millions (up 98% Y-o-Y).
The
consolidated total revenues for the quarter ended March 31, 2007 of Rs. 53930
millions grew by 58% and EBITDA of Rs. 22410 millions grew by 75% on a year on
year basis. The cash profit from operations of Rs. 21930 millions grew by 82%
over last year. The net profit for the quarter ended March 31, 2007 was Rs.
13530 millions, a growth of 98% over last year.
The
revenues & net profit for the full year ended March 31, 2007 was Rs. 185200
millions and Rs. 42570 millions, a growth of 59% & 89% respectively, on a
year on year basis.
Bharti
had over 39 millions customers, as on March 31, 2007, an increase in the total
customer base of 86%, over the last year and maintained its leadership position
through an improved market share of all
Commenting
on the results and performance, Mr.
Sunil Bharti Mittal, Chairman & Managing Director, Bharti Airtel Limited,
said, “The Indian telecom sector has witnessed an unprecedented growth this
year led by the mobile segment. At Bharti Airtel, this has been a year of
accelerated growth and market leadership, and we are delighted to be leading
the telecom revolution in the country. The demand for the telecom services
across all segments remains buoyant and we believe that this growth momentum
can be sustained. We are confident that Bharti Airtel’s professional management
team with enhanced empowerment, backed by world-class product offerings is well
placed to strengthen our leadership position in the market.”
In line with emerging international practice, the Board of
Directors has adopted a rotation policy for statutory and internal auditors for
a maximum tenure of five years and rotation of audit partner every three years.
Accordingly, they have recommended the appointment of S R Batliboi and
Associates, Chartered Accountants, a member firm of Ernst & Young Global as
statutory auditors at the conclusion of the forthcoming annual general meeting
on 2 July 2007 and Ernst and Young as auditors for US GAAP for the financial
year ending 31 March 2008. The Board has also proposed to appoint Price
Waterhouse, Chartered Accountants as internal auditors after conclusion of
their tenure as statutory auditors of the company.
Bharti Airtel Limited - Summary of Consolidated Financial
Statements
– represents Consolidated Statement of Income as per United States Generally
Accepted Accounting Principles (US GAAP)
(Amount in Rs. Millions, except ratios)
|
Particulars |
Quarter Ended |
Y-o-Y |
Year Ended |
Y-o-Y |
||
|
Mar.
2007 |
Mar.
2006 |
Mar.
2007 |
Mar.
2006 |
|||
|
Un-audited |
Un-audited |
Audited |
Un-audited |
|||
|
Total
revenues |
53930 |
34110 |
58% |
185200 |
116210 |
59% |
|
EBITDA |
22410 |
12780 |
75% |
74510 |
43370 |
72% |
|
Cash profit
|
21930 |
12050 |
82% |
73070 |
40860 |
79% |
|
Income
before |
15070 |
7410 |
103% |
48860 |
25370 |
93% |
|
Net
profit / (loss) |
13530 |
6820 |
98% |
42570 |
22570 |
89% |
Operating
Highlights
(Figures in nos., except ratios)
|
Parameters |
Unit |
Mar. 31, |
Dec. 31, 2006 |
Q-on-Q |
Mar. 31, 2006 |
Y-on-Y |
|
Customers
on our Network |
000's
000's
|
37,141
1,871
|
31,974
1,738
|
16% 8% |
19,579
1,347
|
90% 39% |
|
Total |
000's |
39,013 |
33,712 |
16% |
20,926 |
86% |
Bharti Airtel Limited
(A Bharti Enterprise)
Regd. Office: Qutab Ambience (at Qutab Minar),
About Bharti Airtel Limited
Bharti
Airtel Limited is one of
Bharti Airtel is structured into three strategic business
units - Mobile services, Broadband & Telephone (B&T) services and
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 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
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 40.84 |
|
|
1 |
Rs. 80.47 |
|
Euro |
1 |
Rs. 54.32 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--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 |
|
TOTAL |
|
54 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|