MIRA INFORM
REPORT
|
Report
Date : |
02.05.2007 |
IDENTIFICATION DETAILS
|
Name: |
BHARTI
AIRTEL LIMITED |
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|
|
|
Formerly
Known as : |
BHARTI TELE-VENTURES LIMITED |
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|
|
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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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|
|
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Com.
Reg. No.: |
55-70609 |
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CIN
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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|
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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 |
|
Maximum
Credit Limit : |
USD
290000000 |
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|
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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, |
|
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 |
|
|
|
|
Name : |
Mr. Rajan
Bharti Mittal |
|
Designation
: |
Joint
Managing Director |
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|
|
|
Name : |
Mr. Akhil
Gupta |
|
Designation
: |
Joint
Managing Director |
|
|
|
|
Name : |
Mr. Sin
Hang Boon |
|
Designation
: |
Director
nominated by SingTel |
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|
|
|
Name : |
Mr. Lim
Toon |
|
Designation
: |
Director
nominated by SingTel |
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|
|
|
Name : |
Mr. Lung
Chien Ping |
|
Designation
: |
Director |
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|
|
|
Name : |
Mr.
Bashir Abdulla Currimjee |
|
Designation
: |
Director |
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|
|
|
Name : |
Mr. Pulak
Chandan Prasad |
|
Designation
: |
Director |
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|
|
|
Name : |
Mr. Paul
O’Sullivan |
|
Designation
: |
Director |
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|
|
|
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 |
|
Designation
: |
Director |
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|
|
|
Name : |
Mr. Wong
Hung Khim |
|
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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|
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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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|
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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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|
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|
Name : |
Mr. Pulak
Chandan Prasad |
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Designation
: |
Non-Executive Director |
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|
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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 |
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OTHER PERSONNEL |
|
|
|
|
|
Name : |
Mr.
Vijaya Sampath |
|
Designation
: |
General
Counsel and Company Secretary |
KEY EXECUTIVES
|
Name: |
Mr. Sunil Bharti Mittal |
|
Designation: |
Chairman and Managing Director |
|
Age: |
44 Years |
|
Qualification: |
Graduate |
|
Experience: |
25 Years |
|
Date
of Joining: |
01st October, 2001 |
|
Previous
Employment: |
Bharti Telecom Limited, Chairman |
|
|
|
|
Name: |
Mr. Rajan Bharti Mittal |
|
Designation: |
Joint Managing Director |
|
Age: |
44 Years |
|
Qualification: |
B.A. |
|
Experience: |
20 Years |
|
Date
of Joining: |
01st October, 2001 |
|
Previous
Employment: |
Bharti Healthcare Limited |
|
|
|
|
Name: |
Mr. Akhil Gupta |
|
Designation: |
Joint Managing Director |
|
Age: |
46 Years |
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Qualification: |
FCA |
|
Experience: |
20 Years |
|
Date
of Joining: |
01st October, 2001 |
|
Previous
Employment: |
Consultancy |
MAJOR SHAREHOLDERS
|
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
: |
Ř
Price Waterhouse Chartered Accountants |
|
|
|
|
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 |
|
|
|
|
Joint
Venture : |
Ř Forum I Aviation Limited Ř Bridge Mobile Pte Limited |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
2,500,000,000 |
Equity
Shares |
Rs.10/- 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/- 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:
Bharti Airtel Limited (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
venture between the Bharti Group through its subsidiary Bharti Telecom and STET
International Netherlands NV, a company promoted by Telecom Italia,
Bharti is one of
In 2000, BTVL 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
Bhati Tele-Ventures. BTVL 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,
BTVL'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 has become the
subsidiaries of the company after the above said merger. During 2005 the
company acquired 1% equity stake of Bharti Hexacom Limited (formely 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 expande 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 prefered 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
Bharti Airtel 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.
Bharti Airtel 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. Bharti Airtel 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.
Bharti Airtel launched a suite of 'One India plans' for
Bharti Airtel 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
Bharti Airtel 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
Wireline 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 DoT 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 characterised 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 Bharti Airtel Limited, 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 realised 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. Airtel’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 Airtel’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
About
Bharti:
Bharti
Tele-Ventures 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
mark.
• 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 inter
national 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.41.18 |
|
|
1 |
Rs.82.02 |
|
Euro |
1 |
Rs.56.07 |
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
|
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 |