MIRA
INFORM REPORT
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Report Date : |
25.10.2007 |
IDENTIFICATION
DETAILS
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Name : |
RELIANCE
COMMUNICATION LIMITED |
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Formerly Known as : |
RELIANCE COMMUNICATION VENTURES LIMITED |
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Registered Office : |
Main
Administrative Building Block GF 1, Village Meghapur – Padana Taluka Lalpur,
Jamnagar, Gujarat |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
01.03.1994 |
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Com. Reg. No.: |
04-21441 |
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CIN No.: [Company
Identification No.] |
U9999GJ1994PLC021441 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMR16550C |
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PAN No.: [Permanent
Account No.] |
AACCR7832C |
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Legal Form : |
Public Limited
Liability Company. The company’s
shares are listed on the Stock Exchanges. It is a
subsidiary of Reliance Infocom Limited (now – Reliance Communication
Infrastructure Limited). |
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Line of Business : |
Provide
telecommunication services. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 550000000 |
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Status : |
Good |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject is a part
of Anil Dhirubhai Ambani [ADAG] Group.
Available information indicates high financial responsibility of the
company. Trade relations are fair. The company is doing very well. Its financial
position is satisfactory. Payments
are usually correct and as per commitments. The company can
be considered good for any normal business dealings at usual trade terms and
conditions. |
LOCATIONS
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Registered Office : |
Main
Adminstrative Building Block GF 1, Village Meghapur – Padana Taluka Lalpur,
Jamnagar, Gujarat, India |
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Tel. No.: |
91-288-3010101 |
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E-Mail : |
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Website : |
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Area : |
2,000 sq. fts. |
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Location : |
Owned |
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Administrative
Office : |
172/2, “Premchand
House – Annexe”, Ground Floor, Opposite High Court Way Ashram Road, Ahmedabad
– 380 009, Gujarat, India |
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Area : |
5000 sq.fts. |
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Location : |
Owned |
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Branches : |
Ø
“B” Block,
Dhirubhai Ambani Knowledge City, Opposite Koparkhairana Railway Station,
Thane Belapur Road, Navi Mumbai, Maharashtra, India Tel No : 91-22-30373333 /
30386010 Fax No.: 91-22-30376622 Ø 2nd Floor, Brindavan Building,
Sri Ram Mills Compound, Ganpatrao Kadam Marg, Worli, Mumbai - 400 018,
Maharashtra, India Tel. No. 91-22-24981163 / 67-72 Ø
C-5, 3rd
Floor, Chitrakoot, Shree Ram Mills Compound, Ganpatrao Kadam Marg, Worli,
Mumbai, Maharashtra, India |
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Ø
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DIRECTORS
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Name : |
Mr. Mukesh
Dhirubhai Ambani |
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Designation : |
Director |
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Address : |
Sea Wind 39 Cuffe
Parade Mumbai – 400 005, Maharashtra, India |
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Date of Birth/Age : |
19/04/1957 |
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Qualification : |
CH/MD |
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Name : |
Mr. Manoj H. Modi |
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Designation : |
Director |
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Address : |
Flat No 7, Best
Apartments, Walkeshwar Mumbai, Maharashtra, India |
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Date of Birth/Age : |
03/07/1957 |
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Name : |
Mr. Anand
Jaikumar Jain |
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Designation : |
Director |
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Address : |
A-13, Sterling
Apartments, Walkeshwar Mumbai, Maharashtra, India |
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Date of Birth/Age : |
14/01/1957 |
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Name : |
Mr. Bharat
Shymsundar Goenka |
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Designation : |
Director |
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Address : |
Shree Thakur
Niwas 580, 2nd Cross, 12th Main, 4th Block
Koramangala |
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Date of Birth/Age : |
19/08/1961 |
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Name : |
Mr. Ramesh
Nasrinivasn |
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Designation : |
Director |
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Address : |
C-3, Navageeta
CHS Street, Anthony Road, Chembur Mumbai, Maharashtra, India |
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Date of Birth/Age : |
29/04/1957 |
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Name : |
Mr. Chhannalal
Shah |
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Designation : |
Director |
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Address : |
B, 901/902
Shankar Park, Opp. Suman Apts. Shankar Lane Kandivali (West), 501, Sidharth
Apartment, Mumbai, Maharashtra, India |
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Date of
Birth/Age : |
14/09/1972 |
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Name : |
Mr. Gautam Doshi |
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Designation : |
Additional
Director |
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Name : |
Mr. Anil D.
Ambani |
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Designation : |
Chairman |
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Name : |
Mr. Deepak
Shourie |
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Designation : |
Director |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Indian Promoters |
1364811060 |
66.75% |
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Banks Financial
Institution and insurance |
102351217 |
5.01% |
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FII’s |
224263838 |
10.97% |
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Private Corporate
Bodies |
42181158 |
2.06% |
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NRI’s/ OCB’s/
Foreign Others |
12802213 |
0.63% |
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Government |
3629398 |
0.18% |
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Others |
40845249 |
2.00% |
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General Public |
193578966 |
9.47% |
BUSINESS DETAILS
|
Line of Business : |
Provide
telecommunication services. |
GENERAL
INFORMATION
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No. of Employees : |
57 |
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Bankers : |
Not Available |
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Facilities : |
-- |
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Banking
Relations : |
Unknown |
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Auditors : |
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Name : |
Chaturvedi and
Shah Chartered
Accountants |
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Address : |
712/713, Tulsiani
Chambers, 212, Nariman Point, Mumbai – 400 021, Maharashtra, India |
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Tel. No.: |
91-22-22308500 |
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Fax No.: |
91-22-22872703/22846585 |
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Parent Company
: |
v
Reliance
Industries Limited v
Reliance
Infocom Limited (Now Reliance Communications Infrastructure Limited) “Brindavan” 2nd Floor, Shree Ram Mills Premises, Ganpatrao
Kadam Marg, Worli, Mumbai – 400 018, Maharashtra, India Tel. 91-22-24916000 Fax. 91-22-24916112 |
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Associates/Subsidiaries : |
The group is
mainly busy in with the proposed scheme of amalgamation of :-
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CAPITAL STRUCTURE
Authorised Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
10000000000 |
Equity Shares |
Rs. 1/- each |
Rs. 10000.000 millions |
|
3000000000 |
Preferences
Shares |
Rs. 10/- each |
Rs. 30000.000 millions |
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TOTAL |
|
Rs. 40000.000 millions |
Issued, Subscribed & Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
500000 |
Equity Shares |
Rs. 1/- each |
Rs. 0.500 million |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2007 (15 Months) |
31.12.2005 [9 Months] |
31.03.2005 [9 Months] |
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SHAREHOLDERS
FUNDS |
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1] Share Capital |
10223.100 |
0.500 |
0.100 |
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2] share
Application Money |
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3] Reserves &
Surplus |
195032.300 |
147834.300 |
0.000 |
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4] (Accumulated
Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH
|
205255.4 |
147834.800 |
0.100 |
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LOAN FUNDS |
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1] Secured Loans |
51135.700 |
0.000 |
0.000 |
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2] Unsecured
Loans |
94542.700 |
0.000 |
0.000 |
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TOTAL
BORROWING
|
145678.4 |
0.000 |
0.000 |
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DEFERRED TAX LIABILITIES
|
0.000 |
0.000 |
0.000 |
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TOTAL
|
350933.800 |
147834.800 |
0.100 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
|
180984.500 |
1662.400 |
0.000 |
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Capital work-in-progress
|
21856.000 |
0.000 |
0.000 |
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INVESTMENT
|
54344.300 |
120741.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES
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Inventories
|
985.100
|
0.000
|
0.000 |
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Sundry Debtors
|
8021.100
|
0.000
|
0.000 |
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Cash & Bank Balances
|
684.500
|
0.500
|
0.100 |
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Other Current Assets
|
0.000
|
0.000
|
0.000 |
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Loans & Advances
|
191379.700
|
31589.100
|
0.000 |
Total Current Assets
|
201070.4
|
31589.600
|
0.100 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
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Current Liabilities
|
63093.300
|
6132.500
|
0.000 |
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Provisions
|
44228.100
|
25.700
|
0.000 |
Total Current Liabilities
|
107321.4
|
6158.200
|
0.000 |
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Net Current Assets
|
93749.000
|
25431.400
|
0.100 |
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MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
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TOTAL
|
350933.800 |
147834.800 |
0.100 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.03.2007 [15 Months] |
31.03.2005 [9 Months] |
|
|
Sales Turnover |
|
127563.000 |
0.000 |
|
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Other Income |
|
2608.200 |
132.600 |
|
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Total Income |
|
130171.200 |
132.600 |
|
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Profit/(Loss) Before Tax |
|
24208.500 |
88.500 |
|
|
Provision for Taxation |
|
120.000 |
32.000 |
|
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Profit/(Loss) After Tax |
|
24088.500 |
56.500 |
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Expenditures : |
|
|
|
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Power & Fuel Cost |
|
2667.400 |
0.000 |
|
|
Manufacturing Expenses |
|
41109.900 |
0.900 |
|
|
Employee cost |
|
6399.000 |
11.100 |
|
|
Selling and Administration Expenses |
|
27761.000 |
1.400 |
|
|
Miscellaneous Expenses |
|
5098.700 |
3.300 |
|
|
Interest |
|
4565.500 |
0.000 |
|
|
Depreciation |
|
18361.200 |
27.400 |
|
Total Expenditure |
|
105962.700 |
44.100 |
|
SUMMARISED RESULTS
|
PARTICULARS |
|
|
30.06.2007 |
|
Type |
|
|
1st
Quarter |
|
Sales Turnover |
|
|
32289.300 |
|
Other Income |
|
|
07.600 |
|
Total Income |
|
|
32296.900 |
|
Total Expenditure |
|
|
19262.800 |
|
Operating Profit |
|
|
13034.100 |
|
Interest |
|
|
109.500 |
|
Gross Profit |
|
|
12924.600 |
|
Depreciation |
|
|
4155.300 |
|
Tax |
|
|
396.300 |
|
Reported PAT |
|
|
8373.000 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 (15 Months) |
31.12.2005 [9 Months] |
31.03.2005 [9 Months] |
|
Debt-Equity Ratio |
|
0.41 |
0.00 |
0.00 |
|
Long Term Debt-Equity Ratio |
|
0.39 |
0.00 |
0.00 |
|
Current Ratio |
|
1.94 |
5.13 |
0.00 |
|
TURNOVER RATIOS |
|
|
|
|
|
Fixed Assets |
|
0.98 |
0.00 |
0.00 |
|
Inventory |
|
207.19 |
0.00 |
0.00 |
|
Debtors |
|
25.45 |
0.00 |
0.00 |
|
Interest Cover Ratio |
|
6.30 |
0.00 |
0.00 |
|
Operating Profit Margin |
(%) |
36.95 |
0.00 |
0.00 |
|
Profit Before Interest And Tax
Margin |
(%) |
22.56 |
0.00 |
0.00 |
|
Cash Profit Margin |
(%) |
33.28 |
0.00 |
0.00 |
|
Adjusted Net Profit Margin |
(%) |
18.88 |
0.00 |
0.00 |
|
Return On Capital Employed |
(%) |
9.23 |
0.16 |
0.00 |
|
Return On Net Worth |
(%) |
10.92 |
0.10 |
0.00 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY:
Reliance Communication Ventures Limited was originally
incorporated in the year 2004 as Reliance Infrastructure Developers Private
Limited. The company was converted into public limited on 25.07.2005. The
company is engaged in Telecommunication consequent of the scheme of arrangement
with Reliance Industries Limited and the company is vested with the
Telecommunication Undertaking of RIL as defined in the scheme.
Reliance Communications Limited (the "Telecommunication Resulting
Company") was originally incorporated on July 15, 2004, under the
Companies Act, 1956 as Reliance Infrastructure Developers Private Limited. The
status of the company changed from private limited to public limited on July
25, 2005. Further the name of the company changed to Reliance Communication
Ventures Limited with effect from August 3, 2005. The name has since been
changed to its present name, viz. Reliance Communications Limited, under Fresh
Certificate of Incorporation consequent on change of name dated June 7, 2006.
In terms of the Scheme of Arrangement ("Scheme") with Reliance
Industries Limited, as sanctioned by the Hon'ble High Court of Judicature at
Bombay by its Order dated December 9, 2005 and which has become effective from
December 21, 2005 the company is vested with the Telecommunication Undertaking
of Reliance Industries Limited as defined in the Scheme.
Subject is a part of the Reliance Group of companies
SCHEME OF
ARRANGEMENT WITH RELIANCE INDUSTRIES LIMITED:
The Hon'ble High Court of Judicature at Bombay by its Order dated
December 9, 2005 had approved the Scheme of Arrangement under Section 391 to
394 of the Companies Act, 1956 (the 'Scheme') for acquisition of the Financial
Services Undertaking of Reliance Industries Limited (RIL) by the Company. The
Scheme has become effective from December 21, 2005 and the appointed date under
the Scheme was September 1, 2005.
In terms of the Scheme 1223130422 Equity Shares of the company will be allotted
in the ration of 1(one) equity share of the face value of Rs.5/- (Rupees Five)
each credited as fully paid-up for every 1(one) equity share of Rs.10/- (Rupees
Ten) each fully paid-up held by members of RIL (except to the Specified
Shareholders as defined in Clause 1.37 of the Scheme) on the Record Date i.e.
January 25, 2006.
Equity shares of the company so issued shall be listed and admitted for trading
on the Bombay Stock Exchange Limited ('BSE') and the national Stock Exchange of
India Limited ('NSE').
CHANGE OF NAME:
The name of the company was changed from Reliance Infrastructure
Developers Private Limited to Reliance Infrastructure Developers Limited with
effect from July 25, 2005. The name was further changed from Reliance
Infrastructure Developers Limited to Reliance Capital Ventures Limited with
effect from August 3, 2005.
CHANGE IN THE OBJECTS CLAUSE OF THE COMPANY:
During the period under report, the objects clause of the Memorandum of
Association was altered to carry on the business of telecommunication,
infrastructure, telecommunication on system telecommunication network and
telecommunication services.
PROMOTER
GROUP COMPANIES:
Pursuant to an intimation from Reliance Consolidated Enterprises
Private Limited, Promoter of Reliance Industries Limited (RIL), their name as
also names of other promoters of RIL have been disclosed as 'group' within the
definition of 'group' as defined in the Monopolies and Restrictive Trade
Practices ('MRTP') Act, 1969 in the Annual Report of the Company.
DIRECTORS' REPORT:
The Company registered a profit after tax of Rs. 24088.500 millions for the
period under review in its first year of listing of its equity shares.
The subscriber base of the Company was 25.24 million as on 31st March,
2007.
MANAGEMENT
DISCUSSION AND ANALYSIS:
Management
discussion and analysis of the financial condition and results of operations of
the Company for the period under review as required under Clause 49 of the
listing agreement with the Stock Exchanges, is given as a separate statement
forming part of the Annual Report.
AMALGAMATION AND
ARRANGEMENT:
(a) Scheme of
arrangement with Reliance Industries Limited:
The Company was vested with the Telecommunications Undertaking of Reliance Industries Limited ('Demerged Company') pursuant to the Scheme of Arrangement ('Demerger Scheme') under Sections 391 to 394 of the Companies Act, 1956 as approved by the Hon'ble High Court of Judicature at Bombay vide orders dated 9th December, 2005 with effect from 1st September, 2005.
The telecommunications undertaking, constituted inter-alia, investments in
Reliance Infocomm Limited, Reliance Communications Infrastructure Limited and
Reliance Telecom Limited.
In terms of the said Scheme, 122,31,30,422 equity shares of the Company
were issued and allotted to the shareholders of the Demerged Company (except to
the Specified Shareholders) in the ratio of one equity share each of Rs. 5 of
the Company for every one equity share of Rs. 10 held in the Demerged Company.
The equity shares of the Company so issued were listed and admitted for trading
on Bombay Stock Exchange Limited ('BSE') and National Stock Exchange of India
Limited ('NSE') with effect from 6th March, 2006. The Global Depository
Receipts (GDRs) of the Company were also listed on the Luxembourg Stock Exchange.
(b) Scheme of amalgamation and
arrangement involving reorganization of group telecom business:
As stated above, the Scheme of Amalgamation and Arrangement (Scheme) for the amalgamation of Reliance Infocomm Limited, Ambani Enterprises Private Limited, Reliance Business Management Private Limited, Formax Commercial Private Limited, Reliance Communications Technologies Limited, Reliance Software Solutions Private Limited, Reliance Communications Solutions Private Limited and Panther Consultants Private Limited ('Transferor Companies') and demerger of the Network division of the Reliance Communications Infrastructure Limited with the Company, as approved by the Hon'ble High Court of Judicature at Bombay and the Hon'ble High Court of Gujarat at Ahmedabad, vide orders dated 21st July, 2006 and 18th July, 2006 respectively became effective on 12th September, 2006.
In terms of the said Scheme, the Company issued and allotted 82, 14, 84,568
equity shares of Rs. 5 each to the promoter group being the shareholders of the
transferor companies. Further, as an integral part of the said Scheme, Reliance
Communications Infrastructure Limited, Reliance Telecom Limited, Flag Telecom
Group Limited Reliance Infocomm Infrastructure Private Limited, Reliable
Internet Services Limited, Campion Properties Private Limited and their
respective subsidiaries including subsidiaries of erstwhile Reliance Infocomm
Limited became wholly owned subsidiaries of the Company.
OVERALL REVIEW:
They are India's largest integrated fully converged communications service provider in the private sector with an individual, enterprise and carrier customer base of over 30 million, out of which 28 million were wireless customers representing a market share of 17.4% of the Indian wireless market.
Subject was incorporated on 15th July, 2004, under the Companies Act, 1956 as a
private limited company in the name of Reliance Infrastructure Developers
Private Limited. Subsequently, the Company changed its status to a public
limited on 25th July, 2005 and changed its name to Reliance Communication
Ventures Limited with effect from 3rd August, 2005. The name of the Company was
again changed from Reliance Communication Ventures Limited to Reliance
Communications Limited with effect from 7th June, 2006. As a result of a Scheme
of arrangement with Reliance Industries Limited, the Company became the holding
company of minority interests in the telecommunications companies formerly
controlled by Reliance Industries Limited. The equity shares of the Company
were listed on the Bombay Stock Exchange Ltd. and the National Stock Exchange
of India Ltd. with effect from 6th March, 2006.
The Company restructured the telecom businesses by realigning the economic
ownership of various businesses into the Company. Under a Scheme of
Amalgamation and Arrangement which became effective from 12th September, 2006,
inter alia, Reliance Infocomm Limited amalgamated with the Company and Reliance
Communications Infrastructure Limited, Reliance Telecom Limited, Flag Telecom Group
Limited, Reliance Infocomm Infrastructure Private Limited, Reliable Internet
Services Limited and Campion Properties Limited became wholly owned
subsidiaries of the Company, making it a fully transparent and integrated
telecom operator.
In order to further enhance shareholder value, the Company has also initiated
demerger and amalgamation processes among its subsidiary companies, the details
of which are mentioned in the Directors' Report.
INDUSTRY STRUCTURE AND REGULATORY
DEVELOPMENTS:
INDUSTRY STRUCTURE:
In March 1999, the Government announced the New Telecommunications Policy, 1999 ('NTP 1999'), which permitted Fixed Service Providers (FSP) and Cellular Mobile Telephone Service Providers (CMTS) to migrate from a fixed licence fee regime to a revenue sharing arrangement and an extension of the initial license term from 10 to 20 years. It also permitted unlimited competition in fixed line services. The Government also permitted the entry of an additional private mobile service provider in all the telecom circles.
In October 1999, the Department of Telecommunications ('DoT') was bifurcated
into two departments: the DoT, which performs the role of licensor and policy
maker, and the Department of Telecom Services, which was to function as the
service provider. The service provider was corporatised in October 2000 as a
new entity with the name Bharat Sanchar Nigam Limited (BSNL), which provides
telecommunication services in the entire country except in Delhi and Mumbai,
where Mahanagar Telephone Nigam Limited (MTNL) is the Government-controlled
service provider. In August 2000, the Government announced the terms of the
policy for liberalization of national long distance services, initiating
unlimited competition in these services. Subsequently, licences were awarded by
the Government to the selected bidders in mobile services.
In January 2001, based on the recommendation of Telecom Regulatory Authority of
India (TRAI), the Government issued guidelines to permit fixed line service
providers to provide limited mobility services using Wireless in Local Loop
('WLL') technology, within the Short Distance Charging Area (SDCA), in which
the subscriber is registered. In October 2003, TRAI recommended to the
Government that basic service providers providing limited mobility services
using WLL technology pay a specified amount as an additional entry fee for such
services.
In November 2003, an addendum to NTP 1999 was issued to include the following
categories of licences for telecommunication services:
A unified licence for telecommunication services, permitting the licensee to
provide all telecommunication/telegraph services covering various geographical
areas using any technology; and
A licence for unified access (fixed line and mobile) services, or a unified
access services licence ('UAS Licence'), permitting the licensee to provide
basic and/or mobile services using any technology in a defined service area.
There is no limitation on the number of UAS Licences that can be granted in any
circle although availability of spectrum will limit the number of service
providers who propose to provide wireless services.
The Government, through Press Note 5 (2005 Series), dated 3rd November, 2005
raised the foreign direct investment limit applicable to the telecommunications
sector from 49% to 74% (held directly or indirectly), subject to compliance
with certain conditions. The Government of India issued Press Note 3 (2007
Series) dated 19th April, 2007 whereby Press Note 5 (2005 Series) was
superseded. All telecom service providers are required to submit unconditional
compliance report within 3 months from date of issue of Press Note 3 (2007
Series).
OUTLOOK:
The Company is very well positioned to capitalize on growth opportunities in
the converged Indian telecom market and with integrated composite telecom
infrastructure setup; the Company will be able to leverage its strengths in all
the operating Circles and across business groups. The Company's strength and
leadership is inspired by:
- Growth potential and with track record of ability to penetrate into the market with cutting edge;
- Expansion of network and covering the untapped rural areas
- Optimum utilization of future technology compliant assets;
- International presence with owned submarine network and gateways
The Company has consistently demonstrated its leadership with several `Reliance Firsts' and introduction of many innovative products, services leading to enhanced customer delight.
KEY DEVELOPMENTS IN
THE COMPANY:
Wireless
business:
· With a view to enhance market penetration, the Company embarked upon the following initiatives.
· Increasing the build-up of their proprietary 'Classic' brand handsets in the mobile segment;
· Increased focus on colour mobile handsets; and
· Massive drive to increase rural telephony services through fixed wireless phones (FWPs).
HANDSETS:
The Company continued to participate in the growing Indian mobile market,
with introduction of a variety of handsets under their proprietary 'Classic'
brand and a clear shift of focus to promote colour phones. This is in line with
their strategy of building an indigenous handset brand, for increasing customer
engagement, while the colour phones would target customers in the mid to
high-end segments.
Reliance SIM based handsets introduced earlier are rapidly gaining popularity among subscribers. A structured handset upgrade programmed, viz. the Rainbow Offer, has received encouraging response.
MOBILE OPERATIONS:
They continued to be aggressive with innovative offers in both the postpaid and the prepaid mobile segments. Their One-India Tariff Plans set the pace for innovation. They increased their activity with frequent targeted promotions, consistent with their approach of providing value for money with a range of transparent plans to meet the needs of all consumers.
FIXED WIRELESS PHONE (FWP) OPERATIONS:
The Fixed Wireless Phone
operations their driven primarily through rural telephony on the prepaid
platform. In their post paid FWP business, steps their taken successfully to
improve quality of acquisitions and reduce churn.
BROADBAND BUSINESS:
Broadband business continues to maintain the position of premium integrated solutions provider for top Corporates. Broadband has maintained its leadership in Centrex, Virtual Private Network (VPN) and Internet Data Centre (IDC) products. Broadband has introduced pro-active innovative services assurance model of 'TechCheck' for its top-line customers. Customers have rated Broadband products and services at a very high customer satisfaction and delight rating. Broadband has obtained ISO 27001:2005 Certification (an Information Security Management System Standard) for its Business IT Systems in March 2007.
The Company's Broadband segment grew significantly during the period, in the
midst of aggressive competition from many other telecom service providers.
Their Broadband business has increased its share of wallet from top Corporates
for their data business.
The Company's Broadband segment has created leadership status in key products
developed and offered during this period. New products launched in the period
included Global Conferencing, Universal Toll Free 1-800, Video Conferencing,
Audio Conferencing, Personal Digital Assistant (PDA) with Win Mobile, High
Availability Leased Line etc.
GLOBAL BUSINESS:
Long distance voice services:
The Company continues to occupy leadership position in the international long
distance voice segment with 40% market share for inbound international voice
traffic to India and is carrying about 6 billion international minutes
annually.
The Company offers all traditional wholesale long distance voice services, viz,
carriage of international calls to and from India and national carriage within
India, international transit services and managed voice services for contact
centers.
Through its offshore subsidiaries, the Company also offers virtual
international calling services in USA, Canada, UK, Australia and New Zealand.
The Company also offers voice content services to its retail customers in USA,
Canada and Australia and is extending this to other countries.
Global data services (including FLAG Telecom):
The Company continues to be leading provider of international
connectivity and data services to telecom operators, content providers and
internet communities around the globe. Bandwidth demand is increasing due to
large-scale, widespread usage of many bandwidth intensive applications that did
not even exist a few years ago. The Company expects most of high value growth
to be from India, the Middle East and Asia especially with the rollout of
Broadband Internet, WIMAX and IPTV.
The Company launched new initiative of Value Added Services and rolled out
products including Global Ethernet, Global MPLS VPN and Managed Services.
FLAG Telecom commissioned FALCON which is the first terabit private cable
system connecting India and the Middle East to the rest of the world. The FLAG
Global Network became the world's largest privately owned, all IP-enabled cable
system with the commissioning of the FALCON cable system. FALCON is the single
largest private investment in a cable system to have been initiated since the
year 2000.
MOBILE DATA AND CONTENT SERVICES:
The Company has consistently achieved significant growth in mobile data and content services. With tariff rates for voice services constantly under downward pressure, they have been successful in seeking out new non-voice services to boost revenues, improve profitability, and help in reducing churn of subscribers.
The Company continued to populate the market with data capable ('Reliance
Mobile World') handsets at the entry level. The Company introduced a new
version of Reliance Mobile World service optimized for entry level handsets.
This new version of Reliance Mobile World has helped the Company to maintain
its momentum in growing mobile data and content usage. The Company ended the
period with the highest penetration of usage for such services in the country,
with over 15 million unique users of Reliance Mobile World, Reliance My Tunes
(Caller Ring back tones), DIAL 1234 voice interactive services and SMS content
services.
INFRASTRUCTURE
SHARING FOR MOBILE SERVICES:
Universal Services Obligation Fund Administrator conducted a tender for sharing of infrastructure in order to provide mobile services in rural and remote areas of the country. The Company won 5,118 towers out of 7,871 towers in the bidding process for active infrastructure, i.e. BTS, backhaul, battery and potheyr plant. This is the highest number of towers won by any operator relating to active infrastructure. Reliance Telecom Limited (RTL), a wholly owned subsidiary of the Company, also won 3,844 totheyrs for subsidy related to active infrastructure. RTL won all the towers where it was present. In addition, Reliance Communications Infrastructure Limited, another wholly owned subsidiary of the Company, won 482 towers for subsidy related to passive infrastructure.
FIXED ASSETS:
- Building
- Plant and
Machinery
- Freehold Land
- Lease Hold
Land
- Telecomlincene
AS PER
WEBSITE DETAILS:
RELIANCE - INDIA'S
LARGEST BUSINESS HOUSE
The Reliance Group founded by Dhirubhai H. Ambani (1932-2002) is India's largest business house with total revenues of over Rs 990000 millions (US$ 22.6 billion), cash profit of Rs 125000 millions (US$ 2.8 billion), net profit of Rs 62000 millions (US$ 1.4 billion) and exports of Rs 159000 millions (US$ 3.6 billion).
The
Group's activities span exploration and production (E&P) of oil and gas,
refining and marketing, petrochemicals (polyester, polymers, and
intermediates), textiles, financial services and insurance, power, telecom and
Infocomm initiatives. The Group exports its products to more than 100 countries
the world over. Reliance emerged as India's Most Admired Business House, for
the third successive year in a TNS Mode survey for 2003.
Reliance
Group revenue is equivalent to about 3.5% of India's GDP. The Group contributes
nearly 10% of the country's indirect tax revenues and over 6% of India's
exports. Reliance is trusted by an investor family of over 3.1 million -
India's largest.
RELIANCE INDUSTRIES
LIMITED - INDIA'S LARGEST PRIVATE SECTOR COMPANY
Reliance Industries Limited (RIL) is India's largest private sector company on all major financial parameters with gross turnover of Rs 744180 millions (US$ 17 billion), cash profit of Rs 91970 millions (US$ 2.1 billion), net profit of Rs 51600 millions (US$ 1.2 billion), net worth of Rs 344520 millions (US$ 7.9 billion) and total assets of Rs 711570 millions (US$ 16.3 billion).
RIL
emerged as the only Indian company in the list of global companies that create
most value for their shareholders, published by Financial Times based on a global survey and research conducted
by PricewaterhouseCoopers in 2004. RIL features in the Forbes Global list of world's 400 best big companies and in FT Global 500 list of world's largest
companies.
RIL
emerged as the 'Best Managed Company' in India in a study by Business Today and A.T. Kearney in
2003. The company emerged 'India's biggest wealth creator' in the private
sector over a 5-year period in a study by Business Today - Stern Stewart in 2004.
RIL
alone accounts for:
- 17 per cent
of the total profits of the private sector in India
- 7 per cent of
the profits of the entire corporate sector in India
- 6 per cent of
the total market capitalization in India
- Weightage of
13 per cent in the BSE Sensex
- Weightage of
10 per cent in the Nifty Index
One out of every four investors in India is a Reliance shareholder.
With globally competitive capital and operating cost positions, Reliance Group
dominates the rapidly growing Indian market deriving over 80% of its revenues
from the domestic market.
CHAIRMAN’S PROFILE
Regarded as one of the foremost corporate leaders of contemporary India,
Anil Dhirubhai Ambani is the Chairman of all listed Group companies, namely:
Reliance Communications, Reliance Capital, Reliance Energy and Reliance Natural
Resources Limited.
Till recently, he also held the post of Vice Chairman and Managing
Director in Reliance Industries Limited (RIL), India's largest private sector
enterprise.
Anil D Ambani joined Reliance in 1983 as Co-Chief Executive Officer, and
was centrally involved in every aspect of the company's management over the
next 22 years.
He is credited with having pioneered a number of path-breaking financial
innovations in the Indian capital markets. He spearheaded the country's first
forays into the overseas capital markets with international public offerings of
global depositary receipts, convertibles and bonds. Starting in 1991, he
directed Reliance Industries in its efforts to rise over US$ 2 billion. He also
steered the 100-year Yankee bond issue for the company in January 1997.
HE IS A MEMBER OF:
v
Wharton Board of Overseers, the Wharton School, USA
v
Central Advisory Committee, Central Electricity Regulatory Commission
v
Board of Governors, Indian Institute of Management, Ahmedabad
v
Board of Governors Indian Institute of Technology, Kanpur
v
In June 2004, he was elected for a six-year term as an independent
member of the Rajya Sabha, Upper House of India's Parliament a position he
chose to resign voluntarily on March 25, 2006.
AWARDS AND ACHIEVEMENTS
- Conferred the 'CEO of the Year 2004' in the Platts Global Energy
Awards
- Rated as one of 'India's Most Admired CEOs' for the sixth consecutive
year in the Business Barons – TNS Mode opinion poll, 2004
- Conferred 'The Entrepreneur of the Decade Award' by the Bombay
Management Association, October 2002
- Awarded the First Wharton Indian Alumni Award by the Wharton India
Economic Forum (WIEF) in recognition of his contribution to the
establishment of Reliance as a global leader in many of its business
areas, December 2001
- Selected by Asiaweek magazine for its list of 'Leaders of the
Millennium in Business and Finance' and was introduced as the only 'new
hero' in Business and Finance from India, June 1999
MEDIA RELEASE
RELIANCE COMMUNICATION VENTURES LIMITED
Name Changed To
RELIANCE COMMUNICATIONS LIMITED
Mumbai, June 07, 2006: Consequent to issue of new certificate of
incorporation for change of name by Registrar of Companies, Maharashtra, Mumbai
on 7th June, 2006 the name of Reliance Communication Ventures
Limited stands changed to Reliance Communications Limited.
The new name will transform the company into a fully integrated communication
business provider. After effectuation
of Scheme of Amalgamation and Arrangement, the company will offer services that
span the entire information and communication value chain including Wireline
and wireless, voice, data, broadband, internet, value added services and
international and domestic long distance services. The new name, Reliance
Communications Limited, enables the company to more accurately reflect its
business.
ABOUT RELIANCE
COMMUNICATIONS:
Reliance Communications, a member of Reliance Anil Dhirubhai Ambani
Group, is India’s foremost integrated telecommunications company with close to
21.5 million Indian and 500,000 global individual consumers. Reliance Communications corporate clientele
includes 600 Indian and 250 multinational corporations, and – through
subsidiary FLAG Telecom – over 200 global carriers.
The company has as pan- India, next generation, integrated [wireless and
Wireline], convergent [voice, data and video] digital network that is capable
of supporting best-of-class services spanning the entire communications value
chain.
RELIANCE COMMUNICATIONS LIMITED (FORMERLY KNOWN AS RELIANCE
COMMUNICATION VENTURES LIMITED)
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling shareholders,
director, officer or employee of the company is a government official or a
family member or close business associate of a Government official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.39.40 |
|
UK Pound |
1 |
Rs.81.12 |
|
Euro |
1 |
Rs.56.69 |
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 |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|