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MIRA
INFORM REPORT
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Report Date : |
28.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
TATA TELESERVICES (MAHARASHTRA) LIMITED |
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Registered Office : |
Ispat House, B. G. Kher Marg, Worli, Mumbai - 400 018, Maharashtra |
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Country: |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
13.03.1995 |
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Com. Reg. No.: |
11-86354 |
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CIN No.: [Company
Identification No.] |
U64200MH1995PLC086354 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMH00331C |
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PAN No.: [Permanent
Account No.] |
AAACH1458C |
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Legal Form : |
Public limited liability company The company's shares are listed on the Stock Exchanges |
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Line of Business : |
Telecommunications service provider. |
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 : |
-- |
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Status : |
Moderate |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a part of Tata Group, a well-established and largest industrial house of the country. Trade relations are reported as fair. Payments are reported as correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
Ispat House, B. G. Kher Marg, Worli, Mumbai - 400 018, Maharashtra, India |
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Tel. No.: |
91-22-24615445 / 6445 |
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Fax No.: |
91-22-24605516 / 5517 |
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E-Mail : |
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Website : |
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Administrative
Office : |
International Trade Tower, 2nd Floor, Nehru Place, New Delhi - 110 019 |
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Branches : |
D-26, TTC Industrial Area, MIDC, Sanpada, P. O. Turbhe,
Navi Mumbai - 400 613, Maharashtra |
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Tel. No.: |
91-22-2790 7777 |
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E-Mail : |
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Branches : |
Al Aqmar Building, 5, Ganeshkhind Road, Pune - 411 005, Maharashtra |
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Tel. No.: |
91-20-2400 7777 |
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E-Mail : |
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Branches : |
Tristar Building, 13-B, EDC Complex, Patto Plaza, Panaji, Goa - 403 001, India |
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Tel. No.: |
91-832-25647777 |
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E-Mail : |
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Branches : |
Plot No. 37-A, M.I.D.C., Ambad, Nasik - 422010, Maharashtra |
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Tel. No.: |
91-253-25607777 |
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E-Mail : |
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Branches : |
Vasant Rutu Plaza, "E" Ward, C. S. No. 460, (Daewoo Showroom Building),Venus Corner, New Shahupuri, Kolhapur - 416003, Maharashtra |
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Tel. No.: |
91-231-25687777 |
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E-Mail : |
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Branches : |
Survey No. 3 (Part), Plot No. Commercial Club Plot, Raj Heights, "Sector P-1,Town Centre, Opp. MGM College, Aurangabad, Maharashtra |
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Tel. No.: |
91-240-25627777 |
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E-Mail : |
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Branches : |
Renavikar Mangal Karyalaya Building, Savedi Cell Site, Savedi Road, Ahmednagar - 414003, Gujarat |
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Tel. No.: |
91-241-25607777 |
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Branches : |
Ground Floor, Ranjit Empire, Sangli Miraj Road, Sangli, Maharashtra |
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Tel. No.: |
. 91-233-25607777 |
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Branches : |
Ispat House, B. G. Kher Marg, Worli, Mumbai - 400 018, Maharashtra |
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Tel. No.: |
91-22-56615445 |
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Branches : |
1st Floor, Express Towers, Nariman Point, Mumbai- 400021, Maharashtra |
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Branches : |
c/o Premco Industries, Premco House, A-26, Street No. 3, MIDC Marol,Andheri (East), Mumbai - 400050, Maharashtra |
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Branches : |
Laxmi Park, C.H.S., Shop No. D 6&7, Near Kores Tower,
Phase I Lokmanya Nagar, Thane (West) - 400606, Maharashtra |
DIRECTORS
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Name : |
Mr. Ratan N. Tata |
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Designation : |
Chairman |
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Name : |
Mr. Kishor A. Chaukar |
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Designation : |
Director |
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Name : |
Dr. Naushad Forbes |
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Designation : |
Director |
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Name : |
Mr. R. Gopalakrishnan |
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Designation : |
Director |
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Name : |
Mr. Pradman Kaul (till june 20, 2006) |
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Designation : |
Director |
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Name : |
Mr. N. S. Ramachandran |
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Designation : |
Director |
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Name : |
Mr. Charles Antony |
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Designation : |
Managing Director |
KEY EXECUTIVES
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Name : |
Mr.Ajay Mathu |
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Designation : |
Vice President –Marketing |
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Particulars of
Last Employment Held : |
Reliance Infocomm Ltd, National Head - Direct Marketing |
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Date of Birth/Age : |
33 Years |
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Qualification : |
B.Com, DSM |
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Experience : |
15 Years |
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Date of Appointment : |
9.01.2003 |
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Name : |
CA.AmitShah |
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Designation : |
General Manager - Finance & Accounts |
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Particulars of
Last Employment Held : |
BPL Mobile Communications Ltd, |
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Date of Birth/Age : |
37 Years |
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Qualification : |
B. Com, ACA |
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Experience : |
14 Years |
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Date of Appointment : |
24.12.2003 |
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Name : |
Mr.Chandrajit Pati |
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Designation : |
General Manager – HR |
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Particulars of
Last Employment Held : |
Bharti Televentures - Head HR |
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Date of Birth/Age : |
38 Years |
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Qualification : |
MBA, M Sc, BSc. |
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Experience : |
15 Years |
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Date of Appointment : |
16.03.2005 |
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Name : |
Mr.Charles Antony |
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Designation : |
Managing Director |
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Particulars of
Last Employment Held : |
TATA Infotech Ltd, President & COO |
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Date of Birth/Age : |
53 Years |
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Qualification : |
B Sc (Maths), B.S. (Electrical Engineering) |
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Experience : |
26 Years |
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Date of Appointment : |
1.10.2004 |
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Name : |
Mr.Dhananjay Saheba |
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Designation : |
Chief Technical Officer |
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Particulars of
Last Employment Held : |
Lucent Technologies, Sr Manager - Business Development |
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Date of Birth/Age : |
51 Years |
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Qualification : |
B. Tech (IIT) M.S. (Columbia University) |
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Experience : |
28 Years |
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Date of Appointment : |
19.01.2000 |
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Name : |
Mr.Gopal Srim'vasa Pa |
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Designation : |
GeneralManager – Sales |
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Particulars of
Last Employment Held : |
Page Point Services India Ltd , Deputy General Manager |
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Date of Birth/Age : |
49 Years |
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Qualification : |
B.E., PGDM |
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Experience : |
27 Years |
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Date of Appointment : |
29.10.1998 |
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Name : |
Mr.HaridevKhosIa |
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Designation : |
Vice President & Head - Network |
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Particulars of
Last Employment Held : |
Mahanagar Telephone Nigam Limited, Deputy General Manager |
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Date of Birth/Age : |
49 Years |
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Qualification : |
B.E. |
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Experience : |
31 Years |
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Date of Appointment : |
2.03.1998 |
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Name : |
CA.Kishore Mukund Saletore |
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Designation : |
Vice President- Finance |
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Particulars of
Last Employment Held : |
ITC Limited , Exec Asst. To Dy Chairman |
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Date of Birth/Age : |
40 Years |
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Qualification : |
B.Com, ACA, PGDM |
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Experience : |
18 Years |
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Date of Appointment : |
24.11.1997 |
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Name : |
Mr.MadhavjJoshi |
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Designation : |
Chief Legal Officer & Company Secretary |
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Particulars of
Last Employment Held : |
Bayer Industries Limited , Director And Secretary |
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Date of Birth/Age : |
53 |
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Qualification : |
B.Com.,LLB,FCS |
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Experience : |
34 Years |
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Date of Appointment : |
1.09.1998 |
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Name : |
Mr.Rajesh Kovil |
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Designation : |
General Manager- Sales |
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Particulars of
Last Employment Held : |
Bharti Cellular DGM- Sales |
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Date of Birth/Age : |
35 Years |
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Qualification : |
BE |
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Experience : |
12 Years |
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Date of Appointment : |
1.12.2004 |
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Name : |
CA.S.Venkatesan |
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Designation : |
Vice President- Finance |
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Particulars of Last
Employment Held : |
IDEA Cellular GM- Finance |
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Date of Birth/Age : |
39 Years |
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Qualification : |
BSc.,AICWA,FCA |
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Experience : |
21.01.2004 |
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Date of Appointment : |
19 Years |
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Name : |
Mr.Sanjay Thakur |
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Designation : |
General Manager-Network |
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Particulars of
Last Employment Held : |
Ericssons India Ltd General Manager - Network Consulting |
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Date of Birth/Age : |
40 Years |
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Qualification : |
ME, BE |
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Experience : |
17 Years |
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Date of Appointment : |
6.07.2004 |
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Name : |
Mrs.Swati Arte |
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Designation : |
General Manager - Customer Care |
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Particulars of
Last Employment Held : |
Reliance Infocomm Ltd, Circle Head - Customer Care |
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Date of Birth/Age : |
39 Years |
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Qualification : |
BA & MMM |
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Experience : |
17 Years |
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Date of Appointment : |
9.08.2004 |
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Name : |
CA.Vivek Sett |
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Designation : |
Chief Financial Officer |
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Particulars of
Last Employment Held : |
Ispat Industries Limited, Director - Finance |
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Date of Birth/Age : |
51 Years |
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Qualification : |
B.Com, FCA |
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Experience : |
25 Years |
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Date of Appointment : |
22.06.2002 |
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Name : |
Mr.PravinV. Patil |
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Designation : |
General Manager - Customer Service |
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Particulars of
Last Employment Held : |
Reliance Infocomm, Circle Head - Customer Service |
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Date of Birth/Age : |
'31 Years |
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Qualification : |
B.Com |
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Experience : |
10 Years |
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Date of Appointment : |
6.03.2006 |
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Name : |
Mr.Vivek Garg |
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Designation : |
Deputy Coo |
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Particulars of
Last Employment Held : |
BPL Mobile Communications, Dy. COO |
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Date of Birth/Age : |
44 Years |
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Qualification : |
B. Sc., PGDM |
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Experience : |
19 Years |
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Date of Appointment : |
9.02.2004 |
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Name : |
Mr.Louis D'Souza |
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Designation : |
General Manager - Sites & Mtrl |
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Particulars of
Last Employment Held : |
Hutchinson Max Telecom Ltd , Sr. Manager, Materials |
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Date of Birth/Age : |
52 Years |
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Qualification : |
B.Com, DMS |
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Experience : |
33 Years |
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Date of Appointment : |
18.08.1997 |
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Name : |
Mr.Shishir Kumar |
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Designation : |
General Manager - Network Implementatior |
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Particulars of
Last Employment Held : |
Hindustan Cables Ltd, General Manager |
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Date of Birth/Age : |
52 Years |
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Qualification : |
B.E.(Electronics) |
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Experience : |
30 Years |
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Date of Appointment : |
14.07.1998 |
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Name : |
Mr.Rajiv Luthra |
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Designation : |
Vice President-Operations |
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Particulars of
Last Employment Held : |
Bharti Cellular, Head - Prepaid Business |
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Date of Birth/Age : |
40 Years |
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Qualification : |
PGDBM |
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Experience : |
16 Years |
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Date of Appointment : |
10.05.2004 |
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Name : |
Mr.V. Sivakumar |
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Designation : |
General Manager - Information Technology |
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Particulars of
Last Employment Held : |
MTNL, Mumbai, Sub Division Engineer |
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Date of Birth/Age : |
51 Years |
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Qualification : |
B.Sc (Maths), DCM.M.B.A. |
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Experience : |
28 Years |
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Date of Appointment : |
14.07.1998 |
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Name : |
Mr.ShaileshDudani |
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Designation : |
Product Manager |
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Particulars of
Last Employment Held : |
Convergent Communications, Asst. Manager- Sales |
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Date of Birth/Age : |
31 Years |
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Qualification : |
B.E.(Electronics), MMM |
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Experience : |
9 Years |
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Date of Appointment : |
21.08.2000 |
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Name : |
Ms.VanditaShukla |
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Designation : |
Assistant Manager |
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Particulars of
Last Employment Held : |
Bharti Cellular, Sr. Executive |
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Date of Birth/Age : |
30 Years |
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Qualification : |
B.E.(Electronics) |
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Experience : |
8 Years |
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Date of Appointment : |
13.08.2003 |
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MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
Percentage of
Holding |
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Promoters |
66.80 % |
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International
Investors (Flls/NRIs/OCBs/Foreign Banks) |
3.61% |
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Indian Financial Institutions/Banks/Mutual
Funds |
6.28 % |
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Private Bodies
Corporate |
5.20 % |
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Individuals |
18.11 % |
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TOTAL |
100.000 % |
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BUSINESS DETAILS
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Line of Business : |
Telecommunications service provider. |
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Products : |
Item Code No. Product DescriptionNot Applicable Basic Telecom Services |
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GENERAL
INFORMATION
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No. of Employees : |
About 2500 |
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Bankers : |
Citibank NA, Dr. S. S. Rao Road, Parel, Mumbai - 400 012, Maharashtra Industrial Development Bank of India UTI Bank Limited |
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Facilities : |
Notes: Loans from Banks are secured/ to be secured by either one or more of
the following as per teem of the arrangements with respective banks:
Secured by hypothecation of Vehicles acquired out of the loans
Note: During 2004-05, the company issued foreign Currency Convertible Bonds
of USD 2125.000 Millions at an interest rates of 1% per annum (payable
semi-annually). The holders of these bonds have an option to convert the
bonds into equity shares of the company on or after july 1,2004 at a
pre-determined pricej fo Rs. 24.96. The bonds that are not converted into
equity, are redeemable at a premium of 19.38% at the end of 5 years form the
date of issue. Loans- form others include Rs.469.600 Millions where the lender will
have the right to share assets of the Company mortgaged to secured lenders,
in the event of enforcement of the security and subject to consent of the
security and subject to consent of the secured lenders. |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Deloitte Haskins & Sells Chartered Accountants |
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Address : |
12, Dr. Annie Besant Road, Opp. Shiv Sagar Estate, Worli,
Mumbai-400018 |
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Associates/Subsidiaries : |
Hughes Electronics Corporation, USA. Ispat Industries Limited Hughes Network Systems (India) Private Limited Alltel Information (India) Private Limited Hughes Escorts Communications Limited Hughes Software Systems Limited Tata Group of
Companies |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2,500,000,000 |
Equity Shares |
Rs.10/-(each) |
Rs.25000.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1520585484 |
Equity Shares |
Rs.10/-(each) |
Rs.15205.900 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
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 |
15205.900 |
14909.700 |
1,4069.800 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
2152.100 |
1576.800 |
(1,0497.800) |
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4] (Accumulated Losses) |
(22334.100) |
(16923.500) |
0.000 |
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NETWORTH |
(4976.100) |
(437.000) |
3572.000 |
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LOAN FUNDS |
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|
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|
1] Secured Loans |
10801.200 |
11364.800 |
1,2185.3 |
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2] Unsecured Loans |
10317.300 |
7463.600 |
2599.3 |
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TOTAL BORROWING |
21118.500 |
18828.400 |
1,4784.6 |
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DEFERRED TAX LIABILITIES |
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|
|
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|
|
|
|
|
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TOTAL |
16142.400 |
18391.400 |
18356.600 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
22615.100 |
22520.100 |
1,8001.500 |
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Capital work-in-progress |
1750.800 |
2403.700 |
3149.800 |
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|
|
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INVESTMENT |
|
|
450.000 |
|
|
DEFERREX TAX ASSETS |
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Sundry Debtors |
1558.000 |
1422.900 |
2212.500 |
|
|
Cash & Bank Balances |
273.900 |
820.200 |
614.600 |
|
|
Loans & Advances |
1465.900 |
1422.900 |
883.600 |
|
Total
Current Assets |
3297.800 |
3666.000 |
3710.700 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
11521.300 |
10198.400 |
6775.100 |
|
|
Provisions |
0.000 |
0.000 |
180.300 |
|
Total
Current Liabilities |
11521.300 |
10198.4 |
6955.400 |
|
|
Net Current Assets |
(8223.500) |
(6532.400) |
(3244.700) |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
TOTAL |
16142.400 |
18391.400 |
18356.600 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
||
|
Sales Turnover |
0.000 |
0.000 |
6583.200 |
||
|
Telecommunication Service |
10951.300 |
8074.700 |
0.000 |
||
|
Other Income |
16.600 |
290.100 |
0.000 |
||
|
Total Income |
10967.900 |
7784.600 |
6583.200 |
||
|
|
|
|
|
||
|
Profit/(Loss) Before Tax |
(5402.100) |
(5278.600) |
(2696.800) |
||
|
Provision for Taxation |
8.500 |
0.000 |
0.000 |
||
|
Profit/(Loss) After Tax |
(5410.600) |
(5278.600) |
(2696.800) |
||
|
|
|
|
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Earnings in Foreign Currency : |
|
|
|
||
|
|
Interest |
0.000 |
46.900 |
0.000 |
|
|
Total Earnings |
0.000 |
46.900 |
0.000 |
||
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Imports : |
|
|
|
||
|
|
Capital Goods |
2376.300 |
3612.800 |
0.000 |
|
|
|
Others |
0.000 |
0.000 |
724.00 |
|
|
Total Imports |
2376.300 |
3612.800 |
724.00 |
||
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|
|
|
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||
|
Expenditures : |
|
|
|
||
|
|
Other Operational Expenses |
9720.800 |
9026.000 |
0.000 |
|
|
|
Finance and Teasury Charges |
1457.700 |
1447.300 |
0.000 |
|
|
|
Depreciation & Amortization |
4719.000 |
3170.100 |
0.000 |
|
|
|
Other Expenditure |
0.000 |
0.000 |
9280.000 |
|
|
Total Expenditure |
15897.500 |
13643.400 |
9280.000 |
||
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
30.06.2006 |
30.09.2006 |
31.12.2006 |
|
Type |
1st
Qtr |
2nd
Qtr |
3rd
Qtr |
|
Sales
Turnover |
3238.100 |
3400.600 |
3626.800 |
|
Other
Income |
04.600 |
15.800 |
41.400 |
|
Total
Income |
3242.700 |
3416.400 |
3668.200 |
|
Total
Expenditure |
2658.600 |
2771.900 |
2837.300 |
|
Operating
Profit |
584.100 |
644.500 |
830.900 |
|
Interest |
464.600 |
404.200 |
413.800 |
|
Gross
Profit |
119.500 |
240.300 |
417.100 |
|
Depreciation |
1242.400 |
1168.300 |
1006.800 |
|
Tax |
03.000 |
01.500 |
02.000 |
|
Reported
PAT |
-1125.900 |
(-929.500) |
(591.700) |
Notes:
200606 Quarter 1 --------------- Notes Net Sales Indicate Income from Telecommunications Services Expenditure Includes Network operations costs Rs 540.50 million Interconnect and other access costs Rs 904.50 million Payments to and provisions for employees Rs 134.50 million Administration and Other Expenses Rs 446.10 million Marketing and business promotion expenses Rs 633.00 million Tax Indicates Provision for Fringe Benefit Tax EPS is Basic & Diluted Status of Investor Complaints for the quarter ended June 30, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 28 Complaints disposed off during the quarter 28 Complaints unresolved at the end of the quarter Nil 1. Finance and treasury charges are disclosed on net basis. Interest and other income earned from treasury operations are reduced from the costs of treasury operations. Finance and treasury charges include amounts of foreign exchange fluctuations on Foreign Currency Convertible Bonds (FCCB). 2. No provision for current income tax has been made in the accounts, since the Company estimates that there will be no taxable profits for the year. Deferred Tax charges / credits have not been recognized in view of the tax holiday enjoyed by the Company and on considerations of prudence as set out in Accounting Standard 22 on 'Accounting for Taxes on Income'. 3. Previous year/ period figures have been regrouped / reclassified wherever necessary. 4. The Company is engaged in the business of providing Telecommunication Services under Unified Access License. These, in the context of Accounting Standard 17 on segment Reporting, issued by the Institute of Chartered Accountants of India are considered to constitute a single primary business segment. 5. The above financial statement has been reviewed by the Audit Committee of the Board of Directors and taken on record by the Board of Directors of the Company at its meeting held on July 26, 2006.
200609 Quarter 2 --------------- Notes: Tax Indicates
Provision for Fringe Benefit Tax EPS is Basic & Diluted Status of Investor
Complaints for the quarter ended September 30, 2006 Complaints Pending at the beginning
of the quarter Nil Complaints Received during the quarter 57 Complaints
disposed off during the quarter 57 Complaints unresolved at the end of the
quarter Nil 1. Finance and Treasury charges are disclosed on net basis.
Interest and other income earned from treasury operations are reduced from the
costs of treasury operations. Finance and treasury charges Include amounts of
foreign exchange fluctuations on Foreign Currency Convertible Bonds (FCCB). 2.
During September 2006, as per the terms of loan agreement, the Company has
repaid the unsecured loan payable to Hughes Network Systems, USA alongwith
Interest thereon, resulting in a waiver of liability of Rs 1383.80 million. Out
of the sold amount, Rs 1278.40 million initially captained to the Plant and
Machinery to reduced from the Gross Block of the respective assets and Rs
105.40 million, charged earlier to the Profit and Loss Account, has been
reduced from the Finance and treasury charges. Accordingly, the Finance and
treasury charges and Depreciation for the quarter and half year ended September
30, 2006, are lower by Rs 105.40 million and Rs 56.20 million respectively. 3.
No provision for current income tax has been made in the accounts, since the
Company estimates that there will be no taxable profits for the year. Deferred
Tax charges / credits have not been recognized in view of the tax holiday
enjoyed by the Company and on considerations of prudence as set out in
Accounting Standard 22 on Accounting for Taxes on Income. 4. Previous year /
periods figures have been regrouped / reclassified wherever necessary. 5. The
Principal business of the Company is of providing telecommunication services
under a Unified Access License. These, in the context of Accounting Standard 17
on 'Segment reporting', issued by Institute of Chartered Accountant of India,
are considered to constitute a single business segment. 6. The above financial
statement has been reviewed by the Audit Committee of the Board of Directors
and taken on record by the Board of Directors of the Company at its meeting
held on October 27, 2006.
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity Ratio |
0.00 |
10.72 |
2.23 |
|
Long Term Debt-Equity Ratio |
0.00 |
9.83 |
2.19 |
|
Current Ratio |
0.23 |
0.37 |
0.37 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
0.32 |
0.28 |
0.26 |
|
Inventory |
0.00 |
0.00 |
0.00 |
|
Debtors |
7.35 |
4.44 |
4.46 |
|
Interest Cover Ratio |
-2.69 |
-2.43 |
-1.21 |
|
Operating Profit Margin(%) |
7.11 |
-7.04 |
9.14 |
|
Profit Before Interest And Tax Margin(%) |
-35.98 |
-46.30 |
-24.76 |
|
Cash Profit Margin(%) |
-6.32 |
-26.11 |
-11.24 |
|
Adjusted Net Profit Margin(%) |
-49.41 |
-65.37 |
-45.13 |
|
Return On Capital Employed(%) |
0.00 |
0.00 |
0.00 |
|
Return On Net Worth(%) |
0.00 |
0.00 |
0.00 |
STOCK PRICES
|
Face Value |
Rs.10.00 |
|
High |
Rs.21.45 |
|
Low |
Rs.21.45 |
LOCAL AGENCY
FURTHER INFORMATION
YEAR OF GROWTH AND CONSOLIDATION
The Company holds two Unified Access (basic + cellular) Services Licences
('UASL'), one for Mumbai Metro and the other for the rest of Maharashtra and
Goa.
During the year, the Company consolidated its position in the market by increasing
its share of new additions in the wireless market (i.e. fixed wireless and
mobile) to 16%. The subscriber base of the Company registered almost 84% growth
with the year-end subscriber base reaching 1.840 Millions.
Despite regulatory issues, the Company retained its market leadership
position in the fixed wireless segment with 61% market share. It launched new
customer premises equipments (CPEs) with enhanced features, such as fixed
wireless phones with FM Radio features.
The launch of innovative schemes like Non-Stop Mobile in October 2005,
which permitted free incoming calls for a period of two years, and subsequently
Non-Stop Life in December 2005, boosted pre-paid mobile acquisitions.
During the year, the Company improved significantly customer satisfaction
levels by concentrating on soft-skills training and undertaking programmes like
Zero Error Billing. Acknowledging that there is always scope for improvement,
it has undertaken new initiatives like `indicom-Customer Appreciation & Response
Excellence' (i-CARE) to improve customer response time and to empower and make
accountable customer facing personnel.
PRODUCTS AND SERVICES
During the year, the Company focused on increasing its retail presence to penetrate the market better for its various products and services. The Company increased its subscriber base in the mobile and fixed wireless categories apart from enhancing its offerings of value added services.
The Company, using the franchisee model, has opened a large number of
True Value Shops to display its range of services and offer a superior user
experience to its customers.
The mobile subscriber base increased by 204% from 0.260 Millions to 0.790
Millions. The growth driver was the prepaid business where the Company
pioneered in product innovations with the 0123 and Non-Stop Mobile plans. This
growth was also fueled by the introduction of new handsets at attractive
prices. During the year, the Company also introduced Maharashtra on Local by
which customers in Mumbai could connect by way of a local call to customers all
over Maharashtra and Goa and vice-versa.
The Company has reciprocal roaming arrangements with Tata Teleservices Limited
(TTSL), which offers services in 17 other telecom circles, and thus the
Company's subscribers now enjoy pan-India mobility. They would soon enjoy
international roaming.
The fixed wireless service subscriber base increased by 51% from 0.550
Millions to 0.830 Millions. The Company introduced Walky Prepaid and also
launched Indicom10 (ten digit numbering fixed wireless service) in rural
Maharashtra. The Company is the market leader in this service.
During the year, the Walky brand received International accolades when it
won the `Best new service in Emerging Markets' award at the World Communication
Awards, London in October 2005. Further, 3 new instrument models were launched
with features like FM Radio and a `Dust-proof' keypad. Tariff innovations
included the innovative and customer-friendly `Home2Mobile' tariff plans
introduced in the last quarter of the year. A new product, Indicom 10, catering
to the home phone needs of the up-country locations was also launched leading
to a much higher penetration in this category. Prepaid Walky services were also
extended to over 90 towns thus contributing to 20% of the total Walky base of
the Company.
The Company continues to focus on value added services (VAS) offerings.
The launch of Welcome Tunes (Caller Ringback Tunes), video streaming and other
data services and content are bringing in improved revenues.
The Company is a Category A (National) ISP Licensee and offers a broad
range of Internet-related product offerings including DSL, lease lines and
dial-up internet access.
NETWORK INFRASTRUCTURE
The Company has recently constituted a specialized infrastructure cell which will focus on expansion of the Company's network infrastructure whilst improving efficiency and reducing costs by adopting innovative methods and processes.
During the year, the Company rolled out CDMA wireless services in 46 new
towns in Maharashtra and Goa. It now offers services in 171 towns and also
along the major national highways linking various towns in Maharashtra &
Goa. The Company's subscribers are therefore able to enjoy uninterrupted
services while traveling by road and rail along the major travel routes in
Maharashtra and Goa.
The Company and TTSL together provide service in approx. 2205 towns,
which is proposed to be doubled during the current year.
The Company participated in an open bidding process for providing fixed
phones in non-urban areas through Universal Services Obligation (USO) fund
support. It won the bids and started providing services in Jalna, Kalyan,
Nagpur, Pen and Ratnagiri telecom districts. Rural services have been launched
in 43 SDCAs using Fixed Wireless Terminals. The Company is eligible to get
subsidy towards meeting part of the capital expenditure and operating costs
incurred for every line installed and operated at these locations.
The Company's network was operational and could successfully cope with
very high traffic generated during the unprecedented floods in Mumbai in July
2005. The Company restored quickly its wired services in the affected
areas.
The Company implemented cost efficiency measures by optimizing its
infrastructure, increasing utilization factors and by use of power saving
equipment. The Company entered into arrangements with other telecom operators
for sharing of telecom infrastructure to optimize network costs. The Company
has registered with DoT as Infrastructure Provider Class I so as to be able to
share efficiently its infrastructure with other operators. There is no entry
fee for such registration and revenues are not subject to licence fee.
Cost optimization efforts ensured lower rate of increase of 8% in operating expenses, compared with 36% increase in revenues.
The Company reported a positive EBIDTA of Rs.1247.100 Millions,
representing a significant improvement over the previous year's negative EBIDTA
of Rs.661.200 Millions.
During the year, the Company re-estimated the balance useful life of
certain fixed assets on account of technological obsolescence and the
consequently enhanced pace of planned replacement. As a result, the
depreciation charge for the year is higher apart from higher depreciation on
account of substantial expansion of the Company's infrastructure.
Due to the unusually heavy rains and resultant floods in the city of
Mumbai and other parts of Maharashtra and Goa during the year, certain fixed
assets were seriously damaged. The Company has written off the amount being the
written down value of these damaged assets and has disclosed the amount as an
'Extraordinary item' in the Profit & Loss Account for the year, since the
event is clearly distinct from the ordinary activities of the Company and
cannot be expected to recur frequently or regularly. The Company is pursuing
its insurance claims and would account the same once settled. As a result of
the above, the Loss for the year was marginally higher.
FINANCING
Despite higher borrowings for expansion, the Company could maintain the
finance costs at the previous year's level.
NATIONAL TELEDENSITY
The year 2005-2006
was an eventful year for the telecommunications sector as well as for the
Company. The national tele-density (currently around 13%) targets were
over-fulfilled. The Government has set a target of 250.000 Millions connections
by December, 2007 which now looks achievable.
The Company has requested the Government that in order to enhance participation
of the private sector in meeting these objectives, the Government needs to
provide expeditiously the required enablers like additional spectrum,
rationalization of various levies including licence fees, taxes and duties and
removal of access deficit charge (ADC), establishment of an effective
interconnection enforcement mechanism, and adoption of flexible regulatory and
licensing policies.
REGULATORY DEVELOPMENTS
* Push to Talk (PTT)
The Company, after holding discussions with the Telecom Regulatory
Authority of India (TRAI) since May 2004, launched in November 2004 the
innovative Push-to-talk (PTT) service on a non-chargeable basis. PTT enables
subscribers to form groups and instantly connect with multiple persons across
the country, who require short bursts of information thus increasing
productivity and efficiency while simultaneously reducing costs. Commencing
January 2005, DoT and TRAI sought some information which was furnished, and
they directed the Company in February 2005 to discontinue the service. DoT
thereafter levied a penalty of Rs.500.000 Millions in January 2006, which has
been challenged by the Company in TDSAT, and the demand has been stayed.
* Numbering Change
Based on numbering allocation received from DoT, the Company had been
allotted '55' and '56' number series for its fixed wireless and wireline
services. DoT in 2005 decided to allot the entire '6' numbering series to the
Company and TTSL and asked them to migrate all existing fixed line connections
to the new numbering series. The Company has migrated its wireline and fixed
wireless subscribers to the '6' series.
* New ADC Regulation
With effect from March 1, 2006, the Telecom Regulatory Authority of India
(TRAI) announced a new interconnection usage charges regime abolishing the
distance bands for NLD/STD calls and imposing a flat maximum rate for the
carriage charges. The operators have the freedom to negotiate the rates. The
new regime also abolished the erstwhile Access Deficit Charges (ADC) payable to
BSNL on a per minute basis and introduced an ADC charge as 1.5% of the Adjusted
Gross Revenue. ADC on international calls still continues on a per minute basis
but the rates have been reduced. The new interconnection usage charge regime
has led to further reductions in tariffs and has prompted the introduction of
One India plans.
The Association of Unified Telecom Service Providers of India (AUSPI), of
which the Company is a member, has represented that Bharat Sanchar Nigam
Limited (BSNL), a wholly owned Government of India undertaking, receives ADC
from private telecom operators on the grounds that it rolls out services in
rural areas; yet, the private operators are also obliged to contribute 5% of
their revenues to the Universal Service Obligation (USO) Fund which was set up
by the Government of India amongst other things for supporting rural telephony.
The private operators thus bear a double burden while BSNL gets ADC even if it
is making substantial profits; indeed, BSNL's use of ADC funds to offer very
low tariffs even in urban areas which are not subject to regulated tariffs
cannot be ruled out. All this creates a non-level playing field in favour of
BSNL.
* Spectrum
The Government of India has appointed a Group of Ministers (GoM) to make
recommendations on Spectrum Policy. This follows various recommendations made
through 2005 by TRAI and by the Standing Committee of Parliament attached to
the Ministry of IT and Telecom.
Without waiting for the GoM report, or specifically addressing the
recommendations made by TRAI and the Standing Committee, the Department of
Telecommunications (DoT) recently issued guidelines for allocation of spectrum
to telecom service providers. These guidelines do not appear to be equitable
and progressive in that they provide for allocation of more spectrum to GSM
operators as compared to CDMA operators like the Company on the grounds that
the CDMA technology is more spectrum efficient and enables the operator to
serve more subscribers with the same amount of spectrum as compared to GSM
technology. This violates the fundamental tenet of technology neutrality
subscribed to by the Government ever since the New Telecom Policy of 1999 was
adopted. The subscriber criterion prescribed, moreover, is unreasonably high
and such method of allocation discriminates against the operators who start
late. There is further no independent agency, which audits subscriber numbers
reported by operators. The Company has represented to the Government against
such inefficient and discriminatory allocation of a scarce national resource
and has requested it to grant spectrum equitably irrespective of the technology
used, utilizing, if necessary, an appropriate pricing methodology to ensure
scarce spectrum is fairly allocated amongst all operators.
* ADC on fixed wireless phones
The Company and TTSL are market leaders in fixed wireless phones (FWPs)
offered under the brand 'Tata Indicom Walky'. These phones, with the latest
consumer friendly features like calling line identification, SMS, phone book,
speaker phone, high speed internet without modem, voice mail etc, have become
popular and are attracting wire line subscribers. As mentioned in last year's
report, BSNL unilaterally treated these FWPs as mobile phones and raised demands
for Access Deficit Charges (ADC). TDSAT upheld these demands and the Company
has gone in appeal to the Supreme Court. Effective March 2006 the ADC is to be
calculated as a percentage of revenues and hence this dispute is now confined
to demands for past periods.
* Unilateral Licence Clarifications, Directives and Amendments
In several cases in the recent past, clarifications and directives which
were retrospective in nature have been issued by the Government, instead of
amendments to licences that would normally be prospective in nature, thus
imposing unforeseen liabilities on the licencees. Examples include the
clarification that fixed wireless phones, if not technically confined to
subscriber premises, are to be treated as wireless limited mobility phones and
thus would attract ADC payable to BSNL; and the directive for changing of the
numbering scheme for fixed services. Such clarifications and directives have
tended to be issued unilaterally by the Government, and have not been
negotiated or subjected to any prior consultation process.
Licence amendments have also been made unilaterally by the Government.
The latest such amendments made in December 2005, based on the Government of
India's decision to permit foreign equity participation upto 74% (instead of
49%) stipulate that the majority of the Directors on the Board and Chairman,
Managing Director, CEO, CTO and CFO are to be resident Indian citizens. These
amendments also require the licencees to include a clause in their Memorandum
of Association providing that the licencee would cease to carry on business in
case of violation of certain conditions introduced by the December 2005
amendments. The Members have already consented to these amendments in the Extra
Ordinary General Meeting held in March this year and they have authorised the
Board to decide whether and when to include in the Memorandum & Articles of
Association such clauses. The Board has not taken any decision so far as the
Government, based on representations made by the Company, TTSL and some other
operators, has extended the period for compliance till July 2, 2006 and it is
understood that it is currently reviewing applicability of various conditions
to telecom licencees who do not intend to increase the foreign equity participation
beyond the earlier sectoral limit of 49%.
Fixed Assets:
Leasehold assets
Land
Office Premises
Building
Plant and Machinery
Own
Acquired under
Finance Lease
Furniture, Fixture and Office Equipment
Vechicles
Intangible Assets:
License
Computer Software
TATA Teleservices (Maharashtra) Limited Operating profit crosses Rs
2000
Millions. in 9 months
Mumbai, January 19, 2007: TATA Teleservices (Maharashtra) Limited today announced
financial results
for the third quarter and nine months ended December 31, 2006.
•
EBITDA
crossed Rs. 2000 Millions. in Nine months
•
EBITDA
margins more than doubled in Nine months
•
Cash
profit of Rs. 780.000 Millions in Nine months compared to cash loss of Rs.
470.000 Millions. in
the corresponding period of the previous year
•
Subscriber
base grew by 62% in Nine months
Financial Results Summary
Q3 revenue grew by
27% at Rs.3670.000 Millions. compared to Rs.2900.000 Millions. in the
corresponding quarter of the previous year.
Nine months revenue
grew by 31% at Rs.10330.000 Millions. compared to Rs.7890 Millions. in the
corresponding
period of the previous year.
Q3 loss reduced by
54% at Rs.59 Cr. compared to Rs.129 Cr. in the corresponding quarter of
the previous year.
Nine Months loss
reduced by 32% at Rs.2650.000 Millions. compared to Rs.3890.000 Millions. in
the corresponding period of the previous year.
Q3 EBITDA grew by
144% at Rs.830.000 Millions. compared to Rs.340.000 Millions. in the
corresponding quarter of the previous year.
Nine months EBITDA
grew by 194% at Rs.2060.000 Millions. compared to Rs.700.000 Millions. in the
corresponding period of the previous year.
Q3 EBITDA margin is
at 23% compared to 12% in the corresponding quarter of the previous
year
Nine months EBITDA
margin is at 20% compared to 9% in the corresponding period of the
previous year.
Q3 Cash Profit at
Rs. 420.000 Millions. compared to Cash Loss of Rs. 9 Millions. in the
corresponding
quarter of the
previous year
Nine months Cash
Profit is Rs. 780.000 Millions. compared to Cash Loss of Rs. 470.000 Millions.
in the
corresponding
period of the previous year.
Thrust on Rural and
Enterprise markets enabled robust Q3 performance. The total Subscriber
base crossed 2.700
Millions. Optimization of operations was achieved through planned cost control
measures coupled
with enhanced productivity.
A strategic two
level training program was implemented during the quarter ensuring
certification of all employees towards enhancing the quality of customer service.
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 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 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] 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.43.14 |
|
UK Pound |
1 |
Rs.84.71 |
|
Euro |
1 |
Rs.57.58 |
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 |
|