MIRA
INFORM REPORT
|
Report Date : |
05.07.2008 |
IDENTIFICATION
DETAILS
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Name : |
BHARAT SANCHAR
NIGAM LIMITED |
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Registered
Office : |
Bharat Sanchar Bhawan,
Harish Chandra Mathur Lane, Janpath, New Delhi - 110001 |
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Country : |
India |
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Financials (as
on) : |
31.03.2007 |
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Date of
Incorporation : |
15.09.2000 |
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Com. Reg. No.: |
107739 |
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CIN No.: |
U74899DL2000G0I107739 |
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Legal Form : |
A Closely Held
Public Limited Liability Company. |
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Line of
Business : |
Providing
comprehensive range of telegraph and telecom services throughout the country. |
RATING &
COMMENTS
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MIRA’s Rating
: |
Aa |
RATING
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STATUS |
PROPOSED
CREDIT LINE |
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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 |
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Maximum Credit
Limit : |
USD 3477920800 |
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Status : |
Excellent |
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Payment
Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a
largest telecom company in public sector. Available information indicates
high financial responsibility of the company. Trade relations are fair.
Payments are correct and as per commitments. The company can
be considered good for normal business dealings. It can be regarded as a
promising business partner in a long run. |
LOCATIONS
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Registered
Office : |
Bharat Sanchar
Bhawan, Harish Chandra Mathur Lane, Janpath, New Delhi – 110001, India |
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Email : |
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Corporate
Office 1: |
10th Floor,
Statesman House, B-148, Barakhamba Road, New Delhi- 110 001, India |
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Tel. No.: |
91-11-23357760 |
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Fax No.: |
91-11-23737760 |
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E-Mail : |
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Website : |
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Location : |
Owned |
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Corporate
Office 2: |
Statesman House,
B – 148, Barakhamba Road, New Delhi – 110 001, India. |
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Head Office : |
5th Floor,
Sanchar Bhawan, 20, Ashoka Road, New Delhi - 110 001, India. |
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Tel. No.: |
91-11-23718698 /
23032980 / 23711209 |
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Fax No.: |
91-11-23730392 |
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E-Mail : |
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Website : |
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Location : |
Owned |
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Branches : |
Located at: v Mumbai, Maharashtra v Kolkata, West Bengal v Jabalpur, Uttar Pradesh v Richhai, v Bhilai v
Kharagpur |
DIRECTORS
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Name : |
Mr. V. P. Sinha |
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Designation : |
Chairman and
Managing Director (w.e.f. 01.01.2004) |
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Name : |
Mr. Prithipal
Singhal |
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Designation : |
Chairman and Managing
Director (upto 31.12.2003) |
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Name : |
Mr. A. K. Sinha |
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Designation : |
Chairman and
Managing Director |
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Name : |
Mr. S. D. Saxena |
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Designation : |
Director
(Finance) |
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Name : |
Mr. N. K. Mangla |
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Designation : |
Director |
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Name : |
Mr. S. K. Jain |
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Designation : |
Director |
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Name : |
Mr. S. C.
Choudhary |
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Designation : |
Director |
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Name : |
Mr. R. N.
Prabhakar |
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Designation : |
Director
(Government Nominee) |
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Name : |
Mr. J. Sreedhara
Sharma |
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Designation : |
Director
(Government Nominee) |
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Name : |
Mr. Arun Bharat
Ram |
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Designation : |
Director |
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Name : |
Mr. Ashok
Jhunjhunwala |
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Designation : |
Director |
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Name : |
Mr. Vivek Singhal |
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Designation : |
Director |
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Name : |
Mr. Nirmal Saroop |
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Designation : |
Director (upto
29.10.2003) |
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Name : |
Mr. H. C. Kochar |
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Designation : |
Director (upto
29.10.2003) |
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Name : |
Mr. P. C. Rawal |
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Designation : |
Director (Government
Nominee) upto 22.10.2003 |
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Name : |
Mr. P. K. Chandra |
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Designation : |
Director
(Government Nominee) upto 13.08.2003 |
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Name : |
Mr. B. B. Singh |
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Designation : |
Director
(Government Nominee) upto 06.02.2004 |
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Name : |
Mr. Tarun Das |
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Designation : |
Director (upto
26.12.2003) |
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Name : |
Mr. G. S. Grover |
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Designation : |
Director |
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Name : |
Mr. Niranjan
Singh |
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Designation : |
Director |
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Name : |
Mr. R. L. Dube |
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Designation : |
Director |
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Name : |
Mr. Y. S. Bhave |
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Designation : |
Director |
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Name : |
Mr. J R Gupta |
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Designation : |
Director
(Operations) |
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Name : |
Mr. N K Mangla |
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Designation : |
Director |
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Name : |
Mr. P.K. Purwar |
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Designation : |
Deputy Director |
KEY EXECUTIVES
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Name : |
Mr. H. C. Pant |
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Designation : |
Company Secretary |
BUSINESS DETAILS
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Line of
Business : |
Providing comprehensive
range of telegraph and telecom services throughout the country. |
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Products : |
v Telecom Services v Telex, Telegraph, Circuits, Value Added
Services v
Sale of
Directories, Forms and Waste Paper |
GENERAL
INFORMATION
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No. of Employees
: |
Around 363000 |
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Bankers : |
v State Bank of India v
Punjab
National Bank v
Corporation
Bank v
ICICI Bank v
Indian Bank |
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Banking Relations : |
Good |
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Auditors : |
Thakur Vaidyanath
Aiyar and Company (Chartered Accountants) |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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10000000000 |
Equity Shares |
Rs. 10/- each |
Rs.100000.000 Millions |
|
7500000000 |
Preference Shares |
Rs. 10/- each |
Rs. 75000.000 Millions |
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Total |
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Rs.175000.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
5000000000 |
Equity Shares |
Rs. 10/- each |
Rs.50000.000 Millions |
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7500000000 |
Equity Shares |
Rs. 10/- each |
Rs.75000.000 Millions |
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Total |
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Rs.125000.000 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF
FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
SHAREHOLDERS FUNDS |
|
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|
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1] Share Capital |
125000.000 |
125000.000 |
125000.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
744480.200 |
682565.100 |
602791.100 |
NETWORTH
|
869480.200 |
807565.100 |
727791.100 |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
0.000 |
0.000 |
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2] Unsecured Loans |
55436.600 |
72839.300 |
82208.900 |
TOTAL BORROWING
|
55436.600 |
72839.300 |
82208.900 |
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DEFERRED TAX
LIABILITIES |
0.000 |
17040.000 |
30440.200 |
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TOTAL
|
924916.800 |
897444.400 |
840440.200 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
579339.000 |
601884.900 |
617690.700 |
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Capital work-in-progress |
26330.400 |
38204.800 |
45722.600 |
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Decommissioned Assets |
|
734.600 |
804.500 |
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INVESTMENTS |
2000.000 |
2000.000 |
2000.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
27113.300 |
27892.200 |
22453.500 |
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Sundry Debtors |
62298.600 |
63020.500 |
66370.300 |
|
Cash & Bank Balances |
374529.600 |
305794.800 |
219311.300 |
Other Current Assets
|
0.000 |
6362.700 |
1436.800 |
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Loans & Advances |
181720.200 |
92320.700 |
75216.000 |
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Total Current
Assets |
645661.700 |
495390.900 |
384787.900 |
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Less: CURRENT LIABILITIES
& PROVISIONS |
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Current Liabilities |
236888.000 |
161232.400 |
146154.100 |
Provisions
|
102033.100 |
88822.300 |
73861.600 |
Total Current Liabilities
|
338921.100 |
250054.700 |
220015.700 |
Net Current Assets
|
306740.600 |
245336.200 |
164772.200 |
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MISCELLANEOUS EXPENSES
|
10506.800 |
9283.900 |
9450.200 |
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|
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|
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TOTAL
|
924916.800 |
897444.400 |
840440.200 |
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
346162.100 |
361389.400 |
334500.400 |
|
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Other Income |
52522.100 |
40376.400 |
26400.100 |
|
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Total Income |
398684.200 |
401765.800 |
360900.500 |
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|
|
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Profit/(Loss) Before Tax |
81525.100 |
84469.800 |
79300.800 |
|
|
Provision for Taxation |
3466.400 |
(4927.100) |
(22532.100) |
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Profit/(Loss) After Tax |
78058.700 |
89396.900 |
101832.900 |
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|
|
|
|
|
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Total Earnings |
NA |
NA |
20.000 |
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|
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|
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Total Imports |
NA |
NA |
5712.100 |
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Expenditures : |
|
|
|
|
|
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Manufacturing Expenses |
15225.000 |
0.000 |
0.000 |
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Administrative Expenses |
75429.900 |
104968.900 |
80519.600 |
|
|
Salaries, Wages, Bonus, etc. |
76935.600 |
74206.300 |
83930.200 |
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Financial Expenses |
31561.400 |
10898.000 |
292.900 |
|
|
Power & Fuel |
18548.100 |
0.000 |
0.000 |
|
|
Depreciation & Amortization |
7966.000 |
93766.900 |
96248.600 |
|
|
Other Expenditure |
91493.100 |
35230.500 |
33023.600 |
|
Total
Expenditure |
317159.100 |
319070.600 |
294014.900 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
19.58
|
22.25 |
28.22 |
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|
Net Profit Margin (PBT/Sales) |
(%) |
23.55
|
23.37 |
23.71 |
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|
Return on Total Assets (PBT/Total Assets} |
(%) |
6.65
|
7.70 |
7.91 |
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|
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|
Return on Investment (ROI) (PBT/Networth) |
|
0.09
|
0.10 |
0.11 |
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|
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|
Debt Equity Ratio (Total Liability/Networth) |
|
0.45
|
0.40 |
0.41 |
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|
Current Ratio (Current Asset/Current Liability) |
|
1.90
|
1.98 |
1.75 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
The concern was incorporated
on 15th September 2000 at New Delhi in India having Company
Registration Number 107739.
Subject came into
being pursuant to an agreement entered into with the Union of India, to acquire
or to take over the management, control, operation and maintenance of
commercial network, manufacturing, research and development and other telecom
services of Department of Telecommunication, Government of India and its entire
business operations, with all assets and liabilities including contractual
right and obligation on 1st October, 2000.
The concern also
took over the entire established officers, staff, employees and industrial
workers posted in the field units and part of the Telecom Department.
Subject was
incorporated with a paid up capital of Rs.50000 millions and licenses to
operate basic, cellular and net services nation-wide, barring Delhi and
Mumbai.
Subject has taken
over with effect from 1st October, 2000 from the Department of
Telecom Operations, which was operating countrywide telegraph / telecom
services - about 24.000 million telephone connections, over 400 satellite earth
stations, over 16000 route kilometres of microwave systems, with an even larger
optic fibre cable network, and with coverage extending to every corner of the
country, managing and operating this vast network were 20 territorial circles,
two metro districts, four project circles, four maintenance regions, with
support from specialised telecom units, over forty training institutions and
other units such as telecom factories, telecom stores, etc. This includes 24.00
million telephone connections with about 20% of this working in rural and
remote areas of the country. To support
this network 29.22 million lines switching capacity, 2 million lines of trunk
automatic exchange capacity, 185000 routes KM of optical fibre cable system,
160000 routes KM of microwave system and about 416 satellite stations are in
operation. In addition about 378000
villages out of a total of 600000 villages are covered with village public
telephones.
BASIC AND LIMITED
MOBILE TELEPHONE SERVICES
The concern continues to remain country’s largest basic
telephone services provider. Despite the cutthroat competition, the basic
services segment showed an unward growth. There was an increase of approximately
423845 lines, in comparison to that of the previous year. Though large number
of basic telephone connections has been surrendered by the subscribers,
continued efforts made by public machinery, together with the trainings
imported to the staff had helped in arresting the surrender rate, thus
maintaining a lead in this business segment. The basic telephone services
segments of the business is expected to get further fillip in demand by the
launch of broadband services of the concern.
CELLULAR MOBILE
TELEPHONE SERVICES
The concern GSM technology based cellular mobile network has
reached a long way, covering more than 3772 cities with a subscriber base of
over 10.700 millions as on 31st July 2005.
BROADBAND ACCESS
NETWORK
The concern has launched its Broadband Services under the brand name
‘Data One’ on 14/1/2005. this offers services like High Speed Internet Access
with speed ranging from 256 kbps to 8 Mbps. Other services like streaming video, video on demand, Bandwidth on demand
etc. have also been planning. The company plans to build up capacity to give one million broadband connections by
December 2005. then after, there are plans to give 2 millions and 3 millions
connection in 2006 and 2007 respectively.
INTERNET SERVICE
(SANCHARNET)
The concern offers dialup internet services to the customers
by post paid services with brand name ‘sancharnet’. The post paid service is a
CLI based access services, currently operational in 100 cities. Sancharnet is
available on local call basis throughout India to ISDN and PSTN subscribers.
The internet dahba scheme of the concern aims to further promote internet usage
in rural and semi urban areas.
To keep pace with the latest and varied values added
services to its customers, BSNL uses uses IP /MPLS based core to offer world
calss IP/VPN services. MPLS based VPNs is a very useful service for corporate,
as it reduces the cost setting involved as well as the complexity in setting up
NPNs for customer networking. As on 31/03/2005 the company total internet
customer base was 1798089 and total internet customer base dhaba were 4143 a
toal of 708594 dial up internet connections have been given during 2004-2005
against a target of 0.700 millions.
INTERNET TELEPHONY
The Concern is providing Internet Telephony Service under
the brand name of WebFone. The service was started on 2nd September 2002.
Revenue from the sale of Webfone cards is gradually picking up.
INTELLIGENT
NETWORK
Intelligent Network Services is in-services that incorporate
several value added facilities, though designed to save time and money and
enhance productivity. At present the company offers free phone, premium rate
services, India telephone card, account card calling, virtual private network,
universal access number and televoting in services. With the commissioning of
five numbers of new technology in platforms at Kolkata, Bangalore, Ahmedabad
and Hyderabad the India telephone card facility and new value added services
and being provided throughout the country. Activation of these new IN platforms
had increased the sale of ITC cards taking the figure to Rs.2650 millions in
2004-205 alone.
NETWORK MANAGEMENT
The concern is committed to provide a roust state-of-the
–art infrastructure that will provide stable and superior services to its
customers. Accordingly the MLLN network covering more than 200 cities was made
operational in May 2004. Since then about 22000 circuital, have been provided
on this network. This has provided high level of stability to the leased circuits
and capability to offer NX64 kbps circuits. Keeping in view the growing demand
of leased circuits the network is being expanding to cover about 50 more
locations and additional capacity at many existing locations is also being
provided.
COMPUTERISATION
Subject launched the portal which has the Web Mail Service for subject
Employees, discussion Board, live news channels, e-payment for limited area
etc. In 76 SSAs the integrated billing and customer care packages have been
introduced which provide for better customer care by effective computerization
of all customers related activities. Call Center facility has been introduced
in 38 SSAs, which is a single point approach for addressing all customer needs
cum grievances. The Web enabled Directory Enquiry access has been made more
attractive and simplified by providing access through the map of India. All the
new telephone exchanges with more than 1000 lines are being started with
Computerized Fault Repair Service. All the 331 SSAs have computerized telephone
billing.
Subject is on the look out for CDR based Customer Care and Convergent Billing
System, which will meet out future requirements. The project should prepare
subject to face new challenges due to competition by providing effective and
efficient billing and customer care solutions. It envisages building of country
wide intranet, reduce the cost of operation, increase revenue realization, stop
leakage of revenue and minimize fraud besides providing round-the clock best
customer care operations.
The concern’s fixed assets of important value include land, building,
apparatus and plant, cable lines and wires, office equipments, electrical
fittings, electrical appliances, furniture and fixtures, computers, subscriber
installations, motor vehicle and launches, installation test equipments and
masts and aerials.
FUTURE OUTLOOK
The concern endeavors to remain a leading provider of a range of telecom
services. The future outlook for the national economy specially the Indian
telecom industry is very bring with positive signs of tremendous growth. Having
laid a strong foundation in the growth of telecom sector and nation building
the company expected to grow still taller and scale new heights in coming days,
with its progressive and creative workforce and the support of the government.
AS PER WEB DETAILS
About Us
On October 1, 2000 the Department of Telecom Operations, Government of
India became a corporation and was christened subject. Today, subject is the
No. 1 Telecommunications Company and the largest Public Sector Undertaking of
India with authorized share capital of $ 3977 million and networth of $ 14.32
billion. It has a network of over 45 million lines covering 5000 towns with
over 35 million telephone connections.
With latest digital switching technology like OCB,EWSD,AXE-10,FETEX,NEC
etc. and widespread transmission network including SDH system upto 2.5
gbps, DWDM system upto 80 gbps, Web telephony, DIAS,VPN, Broadband and more
than 400,000 data customers , BSNL continues to serve this great nation .
Its responsibilities include improvement of the already impeccable
quality of telecom services, expansion of telecom network, introduction of new
telecom services in all villages and instilling confidence among its customers.
Subject has managed to shoulder these responsibilities remarkably
and deftly. Today with over 45 million line capacity, 99.9% of its exchanges
digital, nation wide Network management & surveillance system (NMSS) to
control telecom traffic and over 4,00,000 route kms of OFC network, Subject is
a name to reckon with in the world of connectivity. Along with its vast
customer base, subject’s financial and asset bases too are vast and strong.
Consider the figures, as they speak volumes on subject's standing:
The telephone infrastructure alone is worth about Rs.1,00,0000 millions
(US $ 22.74 billion)
Turnover of Rs. 314000 millions (US $ 7.14 billion)
Add to which, subject's nationwide coverage and reach,
comprehensive range of telecom services and a penchant for excellence; and you
have the ingredients for restructuring India for a bright future. Today,
subject is most trusted Telecom Brand of India.
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.43.21 |
|
UK Pound |
1 |
Rs.85.72 |
|
Euro |
1 |
Rs.67.92 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
10 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--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 |
YES |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
81 |
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 |
|