MIRA
INFORM REPORT
|
Report Date : |
05.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
AIRCEL CELLULAR LIMITED |
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Formerly Known As : |
RPG CELLULAR SERVICES LIMITED |
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Registered Office : |
5th Floor, Spencer Plaza, 769 Anna Salai, Chennai-600 002, Tamilnadu, India |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
21.02.1992 |
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CIN No.: [Company
Identification No.] |
U74999TN1997PLC039395 |
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Com. Reg. No.: |
18-39395 |
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TAN No.: (Tax Deduction & Collection Account No.) |
CHEM01710C |
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PAN No.: (Permanent Account No.) |
AAACR5136R |
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Legal Form : |
It is closely held public limited liability Company. |
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Line of Business : |
Service Provider of Cellular, Paging, V-SAT and E-Mail |
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RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
RATING
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STATUS |
PROPOSED
CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable
to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 7000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
The company has improved it’s performance by wiping out it’s all previous losses. Directors are reported as experienced, respectable and resourceful businessmen. Their trade relations are fair. Financial position is good. Payments are usually correct and as per commitments. The company can be considered good for any normal business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
5th Floor, Spencer Plaza, 769 Anna Salai, Chennai-600 002, Tamilnadu, India |
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Tel. No.: |
91-44-28490849 |
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Fax No.: |
91-44-28946769 |
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E-Mail : |
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Website : |
DIRECTORS
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Name : |
Mr. V Srinivasan |
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Designation : |
Director |
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Address : |
Flat 2-B, KG Central Court, 9-11. Jagadambal, Street, T. Nagar,
Chennai, Tamilnadu 600017 |
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Date of Birth/Age : |
15.05.1957 |
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Date of Appointment : |
19.12.2003 |
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Name : |
Mr. KVP Baskaran |
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Designation : |
Whole Time Director |
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Address : |
Nathan Akshaya 37-D, Unnamalalii Amman Street, North USMAN Road, T.
Nagar, Chennai, Tamilnadu: 600017 |
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Date of Birth/Age : |
21.07.1961 |
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Date of Appointment : |
19.12.2003 |
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Name : |
Mr. Sriram Chandrasekar |
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Designation : |
Director |
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Address : |
B-1, Sai Krupa Apartments, 2nd Floor, No.5, Sundar Am Salai
Ra, Puram Chennai Tamilnadu 600028 |
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Date of Birth/Age : |
05.06.1966 |
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Date of Appointment : |
19.01.2005 |
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Name : |
Mr. Rohit Chandra |
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Designation : |
Director |
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Address : |
3/10, Shanti Niketan, New Delhi 110021 |
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Date of Birth/Age : |
09.07.1964 |
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Date of Appointment : |
19.01.2005 |
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Name : |
Mr. Ashok Srinivasan |
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Designation : |
Director |
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Address : |
Sterling Tower, 327, Anna Salai, Teynampet Shennai Tamilnadu 600006 |
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Date of Birth/Age : |
21.07.1977 |
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Date of Appointment : |
19.12.2003 |
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Name : |
Mr. R Vijayakakri Shnan |
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Designation : |
Secretary |
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Address : |
66-C, Padmavathy Nagar Virugambakkam, Chennai, Tamilnadu 600092 |
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Date of Birth/Age : |
19.06.1976 |
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Date of Appointment : |
12.04.2004 |
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Name : |
Mr. Chin Chun Yean |
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Designation : |
Director |
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Address : |
30 Jalan Buluh, Perindu Taman Sa, Bukit Damansara, Kuala Lumpur:59000 |
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Date of Birth/Age : |
07.01.1994 |
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Date of Appointment : |
02.09.2006 |
KEY EXECUTIVES
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Audit Committee Members: |
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Name : |
Mr. V Srinivasan |
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Designation : |
Chairman |
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Name : |
Mr. KVP Baskaran |
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Designation : |
Director |
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Name : |
Mr. Sriram Chandrasekar |
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Designation : |
Director |
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Name : |
Mr. Rohit Chandra |
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Designation : |
Director |
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Name : |
Mr. R Vijayakrishnan |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
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Names of Shareholders |
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No. of Shares |
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Aircel Televentures Limited |
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48999940 |
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Mr. R .Narayan Kumar |
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10 |
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-- |
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Mr. R. Mahesh |
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10 |
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-- |
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Mr. V. Navneeth |
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10 |
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Infrastructure Leasing and Financial Service Limited |
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30 |
BUSINESS DETAILS
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Line of Business : |
Service Provider of Cellular, Paging, V-SAT and E-Mail |
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Products : |
Provision of Cellular Mobile Telephone Services |
GENERAL
INFORMATION
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Customers : |
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No. of Employees : |
Around 2500 |
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Bankers : |
17 Rajaji Salai, Chennai-600 001, Tamilnadu, India
IDBI Towertc Complex, Cuffe Parade, Mumbai
– 400005, Maharashtra, India
Leather and international Branch MVJ Towers 177/1, Poonamelee
high Road Kilpauk Chennai 600 010 |
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Facilities : |
-- |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Pricewaterhouse Chartered Accountant |
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Address : |
32, Khader Nawaz Khan Road, Nungambakkam Chennai Tamil Nadu –TN 600006 |
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Associates : |
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Subsidiaries : |
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Ultimate Holding Company : |
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Holding Company : |
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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50,000,000 |
Equity shares |
Rs.10/- (each) |
Rs.500.000 millions |
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6,00,000 |
Redeemable Cumulative Preference Shares |
Rs.100/- (each) |
Rs.60.000 millions |
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Total |
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Rs.560.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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49,000,000 |
Equity shares |
Rs.10/-(each) |
Rs.490.000 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
490.000 |
490.000 |
490.000 |
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2] Reserves & Surplus |
1270.378 |
545.700 |
220.700 |
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NETWORTH
|
1760.378 |
1035.700 |
710.700 |
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LOAN FUNDS |
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1] Secured Loans |
721.469 |
885.000 |
1125.000 |
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2] Unsecured Loans |
0.000 |
100.000 |
0.000 |
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TOTAL BORROWING
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721.469 |
985.000 |
1125.000 |
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TOTAL
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2481.847 |
2020.700 |
1835.700 |
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APPLICATION OF
FUNDS
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FIXED ASSETS [Net
Block]
|
1990.921 |
1980.500 |
1748.600 |
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Capital
work-in-progress
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433.686 |
0.000 |
0.000 |
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INVESTMENT
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0.000 |
0.000 |
33.500 |
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Deffered tax assets
|
75.571 |
0.000 |
0.000 |
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CURRENT ASSETS,
LOANS & ADVANCES
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Inventories
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6.054
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3.400
|
2.100 |
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Sundry Debtors
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207.520
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166.900
|
163.300 |
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Cash & Bank
Balances
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848.957
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205.600
|
113.200 |
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Other current asset
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10.783
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2.583
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Loans &
Advances
|
210.431
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227.500
|
233.800 |
Total
Current Assets
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1283.745
|
603.400
|
512.400 |
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Less : CURRENT LIABILITIES & PROVISIONS
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Current Liabilities
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1271.130
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560.800
|
442.800 |
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Provisions
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30.946
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2.400
|
16.000 |
Total
Current Liabilities
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1302.076
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563.200
|
458.800 |
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Net Current Assets
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[18.331]
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40.200
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53.600 |
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TOTAL
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24818.847 |
2020.700 |
1835.700 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
2876.606 |
2158.091 |
1566.300 |
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Other Income |
1.720 |
0.840 |
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Total Income |
2878.326 |
2158.931 |
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Profit/(Loss) Before Tax |
828.771 |
241.067 |
205.100 |
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Provision for Taxation |
104.080 |
0.000 |
13.800 |
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Profit/(Loss) After Tax |
724.691 |
241.067 |
191.300 |
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Earnings in Foreign Currency : |
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Export Earnings |
116.388 |
NA |
109.894 |
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Total Earnings |
116.388 |
NA |
109.894 |
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Imports : |
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Total Imports |
NA |
NA |
369.310 |
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Expenditures : |
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Purchases made for re-sale |
20.432 |
25.548 |
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Salaries, Wages, Bonus, etc. |
47.935 |
43.458 |
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Payment to Auditors |
0.903 |
0.400 |
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Interest |
88.475 |
112.720 |
1361.192 |
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Insurance Expenses |
1.511 |
3.252 |
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Power & Fuel |
70.543 |
54.782 |
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Depreciation & Amortization |
309.010 |
380.220 |
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Other Expenditure |
1510.746 |
1297.484 |
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Total Expenditure |
2049.555 |
1917.864 |
1361.192 |
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KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
31.03.2004 |
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PAT / Total Income |
(%) |
25.18
|
11.16 |
12.21 |
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Net Profit Margin (PBT/Sales) |
(%) |
28.81
|
11.17 |
13.09 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
5.81
|
9.33 |
9.07 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.47
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0.23 |
0.29 |
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Debt Equity Ratio (Total Liability/Networth) |
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0.74
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0.54 |
0.65 |
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Current Ratio (Current Asset/Current Liability) |
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0.99
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1.071 |
1.11 |
LOCAL AGENCY
FURTHER INFORMATION
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Name of the company |
Aircel cellular limited |
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Presented By |
R Vijaykrishnan,
Company Secretary |
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1) Date and description of instrument creating the change |
17th
October 2005 Deed of Hypothecation executed by the Company in favour of State Bank
of India (SBI) [a certificate copy of the said Deeds of Hypothecation is enclosed] |
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2) Amount secured by the charge/amount owing on the securities of charge |
Corporate Loan
facility of Rs.700.000 Millions Agreed to be granted by SBI to the
Company together with interest,
discount, commission, charges and costs and by SBI in terms of the said
Agreement, both dated the Seventeenth day of October 2005 between the Company
of the one part and SBI of the other part. |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
The whole of the
movable properties of the Company including charge on all movable plant and
machinery, both present and future belonging to or in the possessions or under
the control of the Borrower, wherever lying, stored and kept and whether in
the possession of the Borrower or of the Bank or of any third party, whether
in India or elsewhere throughout the world (including all such goods, other
,movable assets as may be in course of shipments, transit or delivery).
However and wheresover in the possession of the Borrower and either by way of
Substitution or addition. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
(A) the Charge
operates as security, inter alia, for repayment of the Corporate Loan
Facility of Rs. 700.000 Millions, agreed to be granted by SBI to the Company
together with interest discount, commission, charges and costs and expenses,
if any, payable by the Company to SBI in terms of the said Hypothecation and
the facility Agreement both dated the Seventeenth day of October 2005 between
the Company of the one part and SBI of the other part. (B) The Company
has undertaken to keep the goods hypothecated in marketable and goods hypothecated
in marketable and goods condition at its own cost and to insure the same in
the joint names(along with other pari-passu lenders) of the Company and SBI. (C) The security
created under the said Deed of Hypothecation is to be a continuing security. (D) The Charge
shall rank pari-passu with the charge created to/ be created by the Company
in favour of all existing first charge (pari-passu) holders of the Company. (E) The Charge
shall also be exclusive of the charge held by canara Bank for their USD 3.22
million Letter of Credit facility for which Canara Bank hold exclusive first
charge on the assets to procured under the said facilities. |
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5) Name and Address and description of the person entitled to the charge. |
State Bank of
India Leather and
international Branch MVJ Towers 177/1,
Poonamelee high Road Kilpauk Chennai 600 010 |
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6) Date and brief description of instrument modifying the charge |
Not Applicable |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
Not Applicable |
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 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.44.44 |
|
UK Pound |
1 |
Rs.85.89 |
|
Euro |
1 |
Rs.58.54 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
5 |
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FINANCIAL CONDITION |
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|
--BUSINESS SCALE |
1~10 |
5 |
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--PROFITABILIRY |
1~10 |
5 |
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--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
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--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
46 |
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 |
|