MIRA INFORM REPORT

 

 

 

Report Date :

05.07.2008

 

IDENTIFICATION DETAILS

 

Name :

TATA TELESERVICES (MAHARASHTRA) LIMITED

 

 

Registered Office :

ISPAT House, B. G. Kher Marg, Worli, Mumbai - 400 018, Maharashtra

 

 

Country:

India

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

13.03.1995

 

 

Com. Reg. No.:

11-86354

 

 

CIN No.:

[Company Identification No.]

U64200MH1995PLC086354

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMH00331C

 

 

PAN No.:

[Permanent Account No.]

AAACH1458C

 

 

Legal Form :

Public Limited Liability Company. The company shares are listed on the Stock Exchange. 

 

 

Line of Business :

Telecommunications service provider.

 

 

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

 

Status :

Moderate

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a  part of Tata Group, a well-established and largest industrial house of the country. Trade relations are reported as fair. Payments are reported as correct and as per commitments.

 

The company can be considered normal for business dealings at usual trade terms and conditions.

 

 

LOCATIONS

 

Registered Office :

ISPAT House, B. G. Kher Marg, Worli, Mumbai - 400 018, Maharashtra, India

Tel. No.:

91-22-24615445 / 6445 / 91-22-6661 5445

Fax No.:

91-22-24605516 / 5517 / 91-22-6660 5516 / 5517

E-Mail :

madhav.joshi@tatatel.co.in

investor.relations@tatatel.co.in

Website :

http://www.hughestele.com

http://www.tatatele.co.in

http://www.tataindicom.com

http://www.ir@tatatel.co.in

www.tataindicom.com        

 

 

Corporate Office :

Voltas Premises T B Kadam Marg, Chinchpokli, Mumbai – 400 033, Maharashtra, India

E-Mail :

madhav.joshi@tatatel.co.in

 

 

Administrative  Office :

International Trade Tower, 2nd Floor, Nehru Place, New Delhi - 110 019, India

 

 

Branches :

D-26, TTC Industrial Area, MIDC, Sanpada, P. O. Turbhe, Navi Mumbai - 400 613, Maharashtra

Tel. No.:

91-22-2790 7777

E-Mail :

csmumbai@tatatel.co.in

 

 

Branches :

Al Aqmar Building, 5, Ganeshkhind Road, Pune - 411 005, Maharashtra , India

Tel. No.:

91-20-2400 7777

E-Mail :

ghingorani@tatatel.co.in

 

 

Branches :

Tristar Building, 13-B, EDC Complex, Patto Plaza, Panaji, Goa - 403 001, India

Tel. No.:

91-832-25647777

E-Mail :

sstalin@tatatel.co.in

 

 

Branches :

Plot No. 37-A, M.I.D.C., Ambad, Nasik - 422010, Maharashtra, India

Tel. No.:

91-253-25607777

E-Mail :

 vnaidu@tatatel.co.in

 

 

Branches :

Vasant Rutu Plaza, "E"  Ward, C. S. No. 460, (Daewoo Showroom Building),Venus Corner, New Shahupuri, Kolhapur - 416003, Maharashtra, India

Tel. No.:

91-231-25687777

E-Mail :

vnaik@tatatel.co.in

 

 

Branches :

Survey No. 3 (Part), Plot No. Commercial Club Plot, Raj Heights, "Sector P-1,Town Centre, Opp. MGM College, Aurangabad, Maharashtra, India

Tel. No.:

91-240-25627777

E-Mail :

csaurangabad@tatatel.co.in

 

 

Branches :

Renavikar Mangal Karyalaya Building, Savedi Cell Site, Savedi Road, Ahmednagar - 414003, Gujarat, India

Tel. No.:

 91-241-25607777

 

 

Branch Office :

Ground Floor, Ranjit Empire, Sangli Miraj  Road, Sangli, Maharashtra, India

Tel. No.:

. 91-233-25607777

 

 

Branch Office :

Ispat House, B. G. Kher Marg, Worli, Mumbai - 400 018, Maharashtra, India

Tel. No.:

91-22-56615445

 

 

Branch Office :

1st Floor, Express Towers, Nariman Point, Mumbai- 400021, Maharashtra, India

 

 

Branch Office :

c/o Premco Industries, Premco House, A-26, Street No. 3, MIDC Marol,Andheri (East), Mumbai - 400050, Maharashtra, India

 

 

Branch Office :

Laxmi Park, C.H.S., Shop No. D 6&7, Near Kores Tower, Phase I Lokmanya Nagar, Thane (West) - 400606, Maharashtra, India

 

 

DIRECTORS

 

Name :

Mr. Ratan N. Tata

Designation :

Chairman

 

 

Name :

Mr. Kishor A. Chaukar

Designation :

Director

 

 

Name :

Dr. Naushad Forbes

Designation :

Director

 

 

Name :

Mr. R. Gopalakrishnan

Designation :

Director

 

 

Name :

Mr. Pradman Kaul (till June 20, 2006)

Designation :

Director

 

 

Name :

Mr. N. S. Ramachandran

Designation :

Director

 

 

Name :

Mr. Charles Antony

Designation :

Managing Director

 

 

Name :

Mr. Arun Kumar R Gandhi

Designation :

Director

 

 

Name :

Mr. Ashok Kumar R Gandhi

Designation :

Director

 

 

Name :

Mr. S Ramadoral

Designation :

Director

 

 

Name :

Mr. Ashok Jhunjhunwala

Designation :

Director

 

 

Name :

Mr. A R K Sarma

Designation :

General Manager – Network

Date of Birth/Age :

49 years

Qualification :

B.Sc

Experience :

29 year

Date of Appointment :

03.08.2000

Previous Employment:

MTNL – General Manager (OP)

 

 

Name :

Mr. Abhay Metkar

Designation :

General Manager – Sales

Date of Birth/Age :

38 years

Qualification :

MMM

Experience :

16 years

Date of Appointment :

10.12.2004

Previous Employment:

Bharti Cellular – DGM Sales

 

 

Name :

Mr. R N Sujir

Designation :

Geberla Manager – Net Work

Date of Birth/Age :

53 years

Qualification :

BE

Experience :

30 years

Date of Appointment :

01.09.2003

Previous Employment:

TISL – General Manager Network

 

 

Name :

Mr. Sanjay sethi

Designation :

Vice President Sales

Date of Birth/Age :

42 years

Qualification :

B. Com, MBA

Experience :

21 years

Date of Appointment :

01.03.2005

Previous Employment:

SCOA PLC – Head – Corporate Operations

 

 

KEY EXECUTIVES

 

Name :

Mr.Ajay Mathu

Designation :

Vice President –Marketing

Particulars of Last Employment Held :

Reliance Infocomm Ltd, National

Head - Direct Marketing

Date of Birth/Age :

33 Years

Qualification :

B.Com, DSM

Experience :

15 Years

Date of Appointment :

9.01.2003

 

 

Name :

CA.AmitShah

Designation :

General Manager - Finance & Accounts

Particulars of Last Employment Held :

BPL Mobile Communications Ltd,

Date of Birth/Age :

37 Years

Qualification :

B. Com, ACA

Experience :

14 Years

Date of Appointment :

24.12.2003

 

 

Name :

Mr.Chandrajit Pati

Designation :

General Manager – HR

Particulars of Last Employment Held :

Bharti Televentures - Head HR

Date of Birth/Age :

38 Years

Qualification :

MBA, M Sc, BSc.

Experience :

15 Years

Date of Appointment :

16.03.2005

 

 

Name :

Mr.Charles Antony

Designation :

Managing Director

Particulars of Last Employment Held :

TATA Infotech Ltd, President & COO

Date of Birth/Age :

53 Years

Qualification :

B Sc (Maths), B.S.

(Electrical Engineering)

Experience :

26 Years

Date of Appointment :

1.10.2004

 

 

Name :

Mr.Dhananjay Saheba

Designation :

Chief Technical Officer

Particulars of Last Employment Held :

Lucent Technologies,

Sr Manager - Business Development

Date of Birth/Age :

51 Years

Qualification :

B. Tech (IIT) M.S.

(Columbia University)

Experience :

28 Years

Date of Appointment :

19.01.2000

 

 

Name :

Mr.Gopal Srim'vasa Pa

Designation :

GeneralManager – Sales

Particulars of Last Employment Held :

Page Point Services India Ltd , Deputy

General Manager

Date of Birth/Age :

49 Years

Qualification :

B.E., PGDM

Experience :

27 Years

Date of Appointment :

29.10.1998

 

 

Name :

Mr.HaridevKhosIa

Designation :

Vice President & Head - Network

Particulars of Last Employment Held :

Mahanagar Telephone Nigam Limited,

Deputy General Manager

Date of Birth/Age :

49 Years

Qualification :

B.E.

Experience :

31 Years

Date of Appointment :

2.03.1998

 

 

Name :

CA.Kishore Mukund Saletore

Designation :

Vice President- Finance

Particulars of Last Employment Held :

ITC Limited , Exec Asst. To Dy Chairman

Date of Birth/Age :

40 Years

Qualification :

B.Com, ACA, PGDM

Experience :

18 Years

Date of Appointment :

24.11.1997

 

 

Name :

Mr.MadhavjJoshi

Designation :

Chief Legal Officer & Company Secretary

Particulars of Last Employment Held :

Bayer Industries Limited , Director And

Secretary

Date of Birth/Age :

53

Qualification :

B.Com.,LLB,FCS

Experience :

34 Years

Date of Appointment :

1.09.1998

 

 

Name :

Mr.Rajesh Kovil

Designation :

General Manager- Sales

Particulars of Last Employment Held :

Bharti Cellular DGM- Sales

Date of Birth/Age :

35 Years

Qualification :

BE

Experience :

12 Years

Date of Appointment :

1.12.2004

 

 

Name :

CA.S.Venkatesan

Designation :

Vice President- Finance

Particulars of Last Employment Held :

IDEA Cellular GM- Finance

Date of Birth/Age :

39 Years

Qualification :

BSc.,AICWA,FCA

Experience :

21.01.2004

Date of Appointment :

19 Years

 

 

Name :

Mr.Sanjay Thakur

Designation :

General Manager-Network

Particulars of Last Employment Held :

Ericssons India Ltd General Manager -

Network Consulting

Date of Birth/Age :

40 Years

Qualification :

ME, BE

Experience :

17 Years

Date of Appointment :

6.07.2004

 

 

Name :

Mrs.Swati Arte

Designation :

General Manager - Customer Care

Particulars of Last Employment Held :

Reliance Infocomm Ltd, Circle Head -

Customer Care

Date of Birth/Age :

39 Years

Qualification :

BA & MMM

Experience :

17 Years

Date of Appointment :

9.08.2004

 

 

Name :

CA.Vivek Sett

Designation :

Chief Financial Officer

Particulars of Last Employment Held :

Ispat Industries Limited, Director - Finance

Date of Birth/Age :

51 Years

Qualification :

B.Com, FCA

Experience :

25 Years

Date of Appointment :

22.06.2002

 

 

Name :

Mr.PravinV. Patil

Designation :

General Manager - Customer Service

Particulars of Last Employment Held :

Reliance Infocomm, Circle Head -

Customer Service

Date of Birth/Age :

'31 Years

Qualification :

B.Com

Experience :

10 Years

Date of Appointment :

6.03.2006

 

 

Name :

Mr.Vivek Garg

Designation :

Deputy Coo

Particulars of Last Employment Held :

BPL Mobile Communications, Dy. COO

Date of Birth/Age :

44 Years

Qualification :

B. Sc., PGDM

Experience :

19 Years

Date of Appointment :

9.02.2004

 

 

Name :

Mr.Louis D'Souza

Designation :

General Manager - Sites & Mtrl

Particulars of Last Employment Held :

Hutchinson Max Telecom Ltd ,

Sr. Manager, Materials

Date of Birth/Age :

52 Years

Qualification :

B.Com, DMS

Experience :

33 Years

Date of Appointment :

18.08.1997

 

 

Name :

Mr.Shishir Kumar

Designation :

General Manager - Network Implementatior

Particulars of Last Employment Held :

Hindustan Cables Ltd, General Manager

Date of Birth/Age :

52 Years

Qualification :

B.E.(Electronics)

Experience :

30 Years

Date of Appointment :

14.07.1998

 

 

Name :

Mr.Rajiv Luthra

Designation :

Vice President-Operations

Particulars of Last Employment Held :

Bharti Cellular, Head - Prepaid Business

Date of Birth/Age :

40 Years

Qualification :

PGDBM

Experience :

16 Years

Date of Appointment :

10.05.2004

 

 

Name :

Mr.V. Sivakumar

Designation :

General Manager - Information Technology

Particulars of Last Employment Held :

MTNL, Mumbai, Sub Division Engineer

Date of Birth/Age :

51 Years

Qualification :

B.Sc (Maths), DCM.M.B.A.

Experience :

28 Years

Date of Appointment :

14.07.1998

 

 

Name :

Mr.ShaileshDudani

Designation :

Product Manager

Particulars of Last Employment Held :

Convergent Communications,

Asst. Manager- Sales

Date of Birth/Age :

31 Years

Qualification :

B.E.(Electronics), MMM

Experience :

9 Years

Date of Appointment :

21.08.2000

 

 

Name :

Ms.VanditaShukla

Designation :

Assistant Manager

Particulars of Last Employment Held :

Bharti Cellular, Sr. Executive

Date of Birth/Age :

30 Years

Qualification :

B.E.(Electronics)

Experience :

8 Years

Date of Appointment :

13.08.2003

 

 

Name :

Mr. P Madhavan

Designation :

Vice president – Operation

Date of Birth/Age :

40 years

Qualification :

B.Sc , MBA

Experience :

19 years

Date of Appointment :

15.12.2005

Previous Employment:

Tata Teleservices Limited , General Manager Operation

 

 

Name:

Mr. Hiten Koradia

Designation :

Assistant Manager – Investor Relations

Tel No.:

91-22-66615152

E-mail:

Investor.relations@tatatel.co.in

 

 

Name :

Mr. Sanjay Thakur

Designation :

General Manager – Network

Date of Birth/Age :

41 years

Qualification :

ME, B E

Experience :

18 years

Date of Appointment :

06.07.2004

Previous Employment:

Ericssons India limited, General Manager – Network Consultants

 

 

Name :

Mr. Shankar Varadhrajan

Designation :

General Manager project

Date of Birth/Age :

41 years

Qualification :

ME, BE

Experience :

10 years

Date of Appointment :

08.10.2004

Previous Employment:

Tata Infotech Sr. Consultants

 

 

Name :

Mr. Suresh Singhal

Designation :

Sr. Manager Network

Date of Birth/Age :

43 years

Qualification :

B Tech

Experience :

19 years

Date of Appointment :

01.04.2000

Previous Employment:

Atlaz Digital Private limited, product Manager

 

 

Name :

Mr. T N Srinivasan

Designation :

General Manager – Customer Service

Date of Birth/Age :

41 years

Qualification :

B.Com

Experience :

20 years

Date of Appointment :

11.08.2004

Previous Employment:

Idea Cellular AGM – Credit and Activation

 

 

Name :

Mr. Bimal Khandelwal

Designation :

general Manager Finance and Accounts

Date of Birth/Age :

37 years

Qualification :

B. Com , ACA

Experience :

11 years

Date of Appointment :

23.12.2006

Previous Employment:

Idea Cellualr DGM – Finance and Accounts

 

 

Name :

Mr. Mohan Ranganathan

Designation :

General Manager – PMO

Date of Birth/Age :

55 years

Qualification :

BCS, PGDSM

Experience :

28 years

Date of Appointment :

01.03.2007

Previous Employment:

TCS Consultants

 

 

Name :

Mr. Shekhar Banerjee

Designation :

Vice president – PMO

Date of Birth/Age :

55 years

Qualification :

B.Sc, MBA, LLB

Experience :

35 years

Date of Appointment :

01.05.2006

Previous Employment:

TCS- Vice president Marketing and Communication

 

 

Name :

Mr. C S Ramnath

Designation :

Seniro Manager

Date of Birth/Age :

38 years

Qualification :

DHM

Experience :

16 years

Date of Appointment :

01.11.2005

Previous Employment:

Reliance Infostreams- Manager

 

 

Name :

Mr. Deep Singh

Designation :

Senior Executive Network

Date of Birth/Age :

31 years

Qualification :

DEC , BE

Experience :

7 years

Date of Appointment :

02.01.2003

Previous Employment:

Bharati Cellular engineer

 

 

Name :

Mr. harshal Patil

Designation :

Senior Executive Network

Date of Birth/Age :

26 years

Qualification :

DEC, BE

Experience :

5 years

Date of Appointment :

20.08.2004

Previous Employment:

DAT – Agency – Engineer

 

 

Name :

Mr. MurlidhAR Sarma

Designation :

Senior Manager – SCM

Date of Birth/Age :

39 years

Qualification :

BE

Experience :

18 years

Date of Appointment :

17.01.2000

Previous Employment:

Godrej  And Boyce Mfg. Manager Corporate Procurement

 

 

Name :

Mr. Nell Elljah

Designation :

Head Customer – Service

Date of Birth/Age :

43 years

Qualification :

B Tech

Experience :

23 years

Date of Appointment :

01.09.2002

Previous Employment:

Tata iron and Steel and Company limited, Divisional Manager – Corporate

 

 

Name :

Mr. Rishi Kulshrestha

Designation :

Area Sales manager Sales

Date of Birth/Age :

28 years

Qualification :

B. SC MBA

Experience :

12 years

Date of Appointment :

01.12.2004

Previous Employment:

Bharti Cellular Limited

Territory Manager – Prepaid

 

 

Name :

Mr. Rohit Kelkar

Designation :

Seniro Executive Accounts

Date of Birth/Age :

37 years

Qualification :

B. Com

Experience :

12 years

Date of Appointment :

24.07.2000

Previous Employment:

Blow Plast Officer accounts

 

 

Name :

Mrs. Sangeeta Baheti

Designation :

Senior Manager Collection

Date of Birth/Age :

35 years

Qualification :

B. Com , MBA

Experience :

14 years

Date of Appointment :

20.04.2004

Previous Employment:

BPL Mobile Cellular limited, Sr. Manager

 

 

Name :

Mr. Shyamantak Choudhury

Designation :

Manager sales

Date of Birth/Age :

33 years 

Qualification :

B. com

Experience :

8 years

Date of Appointment :

29.11.2004

Previous Employment:

Hindustan Lever Limited, Asst. Manager – Sales

 

 

Name :

Mrs. Varsha Kothwale

Designation :

Generla Manager Customer care

Date of Birth/Age :

36 years

Qualification :

BA

Experience :

13 years

Date of Appointment :

25.03.2004

Previous Employment:

Reliance infocom – Head Customer services

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.03.2008

 

Names of Shareholders

No. of Shares

Percentage of Holding

Indian

 

 

Bodies corporate

1245339393

65.77

Public Shareholding

 

 

Institutions

 

 

Mutual Funds / UTI

5807159

0.31

Financial Institutions / Banks

4251995

0.22

Central Government / State government

25500

0.00

Insurance companies

35272231

1.86

Foreign Institutional Investors

40767518

2.15

Any others

6617

0.00

Non Institutions

 

 

Bodies Corporate

107535213

5.68

Individuals

 

 

Individual Shareholders holding nominal share capital upto Rs. 0.100 millions

350534201

18.51

Individual shareholder holding nominal share capital excess of rs. 0.100 million

103912711

5.49

Trusts

108780

0.01

Director and Their relatives

2400

0.00

Total

1893563718

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Telecommunications Service Provider.

 

 

Products :
Item Code No.
Product Description

Not Applicable

Basic Telecom Services

 

 

GENERAL INFORMATION

 

No. of Employees :

About  2500

 

 

Bankers :

·         Citibank NA, Dr. S. S. Rao Road, Parel, Mumbai - 400 012, Maharashtra, India

·         Industrial Development Bank of India

·         UTI Bank Limited

 

 

Facilities :

Secured Loan:

31.03.2007

(Rs. in millions)

From Bank:

 

Term Loan:

13980.000

Cash Credit Accounts

782.900

Acceptances

2199.000

Total

16961.900

Deferred payment credits

0.700

Total:

0.700

 Grand Total

16962.600

 

Notes:

Loans from Banks are secured/to be secured by either one or more of the following as per terms of the arrangements with respective banks:

 

·         by first pari pasu charge on the movable and/or immovable assets of the Company,

·         by pledge of shares of promoters,

·         by assignment of the proceeds on sale of network in the event of cancellation of the telecom license,

·         by assignment of telecom license,

·         by assignment of insurance policies,

·         by hypothecation of present and future book debts and outstanding money receivable,

 

Secured by hypothecation of vehicles acquired out of the loans.

 

Unsecured Loans

31.03.2007

 

(Rs. in millions)

Foreign Currency Convertible Bonds

2676.100

From Bank

 

Short Term Loans

650.000

From Others

0.000

Total:

3326.100

Notes:

During the year ended March 31, 2005, the Company issued FCCB of USD

12.50 crores at an interest rate of 1% per annum (payable semi-annually). The holders of these Bonds have an option to convert the Bonds into Equity Shares of the Company on or after July 1 2004 at a pre-determined price of Rs.24.96 per Equity Share .Subsequent to rights issue of Equity Shares, the conversion price has been adjusted to Rs.24.49 per Equity Share. The Bonds that are not converted into Equity Shares, are redeemable at a premium of 19.38% at the end of 5 years from the date of issue.

 

2) Loans - From others include NIL (Previous Year Rs. 469.600 millions) where the lender will have the right to share assets of the Company mortgaged to secured lenders, in the event of enforcement of the security and subject to consent of the secured lenders.

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

Deloitte Haskins and Sells

Chartered Accountants

Address :

12, Dr. Annie Besant Road, Opp. Shiv Sagar Estate, Worli, Mumbai-400018, Maharashtra, India

 

 

Associates/Subsidiaries :

v      Hughes Electronics Corporation, USA.

v      Ispat Industries Limited

v      Hughes Network Systems (India) Private Limited

v      Alltel Information (India)  Private Limited

v      Hughes Escorts Communications Limited

v      Hughes Software Systems Limited

v      Tata  Group of Companies

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

2500000000

Equity Shares

Rs.10/-(each)

Rs.25000.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

1809496726

Equity Shares

Rs.10/-(each)

Rs. 18095.000 Millions

 

Notes:

Of the above 1245259393 Equity Shares (Previous year 833832530 shares) are held up by Tata Sons Limited (the Holding Company) and its Subsidiaries

 

2 During the year some employees exercised options issued under the Employee Stock Option Plan resulting in allotment of NIL ( Previous year 342481) fully paid - up Equity Shares for cash at par amounting to Rs. NIL previous year Rs. 3.400 millions)

 

3. Of the above 288911242 (Previous year NIL ) Equity Shares are issued during the year on rights basis at

a premium of Rs.7/-per Equity Share

 

 

 

 

 

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

 

 

 

1] Share Capital

18095.000

15205.900

14909.700

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

4138.700

2152.100

1576.800

4] (Accumulated Losses)

(25445.800)

(22334.100)

(16923.500)

NETWORTH

(3212.100)

(4976.100)

(437.000)

LOAN FUNDS

 

 

 

1] Secured Loans

16962.600

10801.200

11364.800

2] Unsecured Loans

3326.100

10317.300

7463.600

TOTAL BORROWING

20288.700

21118.500

18828.400

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

17076.600

16142.400

18391.400

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

22266.700

22615.100

22520.100

Capital work-in-progress

2031.700

1750.800

2403.700

 

 

 

 

INVESTMENT

0.000

0.000

0.000

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

22.200

0.000

0.000

 

Sundry Debtors

1703.200

1558.000

1422.900

 

Cash & Bank Balances

836.100

273.900

820.200

 

Other Current Assets
0.000

0.000

0.000

 

Loans & Advances

1713.700

1465.900

1422.900

Total Current Assets

4275.200

3297.800

3666.000

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Current Liabilities

10717.900

11521.300

10198.400

 

Provisions

779.100

0.000

0.000

Total Current Liabilities

11497.000

11521.300

10198.4

Net Current Assets

(7221.800)

(8223.500)

(6532.400)

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

17076.600

16142.400

18391.400

 

 

 

 

 

 

 

 

 

 

 

 

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2007

31.03.2006

31.03.2005

Sales Turnover

0.000

0.000

0.000

Telecommunication Service

14069.800

10951.300

8074.700

Other Income

148.800

16.600

290.100

Total Income

14218.600

10967.900

7784.600

 

 

 

 

Profit/(Loss) Before Tax

(3099.100)

(5402.100)

(5278.600)

Provision for Taxation

(7.000)

8.500

0.000

Profit/(Loss) After Tax

(3106.100)

(5410.600)

(5278.600)

 

 

 

 

Export Value

NA

NA

46.900

 

 

 

 

Import Value

4674.800

2376.300

3612.800

 

 

 

 

Expenditures :

 

 

 

 

Other Operational Expenses

11192.600

9720.800

8445.800

 

Finance and Treasury Charges

1717.600

1930.200

1447.300

 

Depreciation & Amortization

4407.500

4719.000

3170.100

 

Other Expenditure

0.000

0.000

0.000

Total Expenditure

17317.700

16370.000

13063.200

 

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2007

30.09.2007

31.12.2007

31.03.2008

Type

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Sales Turnover

3933.400

4183.700

4397.600

4557.200

Other Income

152.200

95.800

197.400

354.700

Total Income

4085.600

4279.500

4595.000

4911.900

Total Expenditure

3081.900

3214.700

3311.700

3408.600

Operating Profit

1003.700

1064.800

1283.300

1503.300

Interest

250.000

513.000

419.200

527.900

Gross Profit

753.700

551.800

864.100

975.400

Depreciation

1036.000

1042.200

1137.100

1178.200

Tax

2.000

2.700

1.300

0.000

Reported PAT

(284.300)

(493.100)

(274.300)

(205.900)

 

 

KEY RATIOS

 

Year

31.03.2007

31.03.2006

31.03.2005

Debt-Equity Ratio

0.00

0.00

10.72

Long Term Debt-Equity Ratio

0.00

0.00

9.83

Current Ratio

0.25

0.23

0.37

TURNOVER RATIOS

 

 

 

Fixed Assets

0.37

0.32

0.28

Inventory

1267.55

0.00

0.00

Debtors

8.63

7.35

4.44

Interest Cover Ratio

(0.74)

(2.69)

(2.43)

Operating Profit Margin(%)

22.31

7.11

(7.04)

Profit Before Interest And Tax Margin(%)

(9.40)

(35.98)

(46.30)

Cash Profit Margin(%)

9.64

(6.32)

(26.11)

Adjusted Net Profit Margin(%)

(22.08)

(49.41)

(65.37)

Return On Capital Employed(%)

0.00

0.00

0.00

Return On Net Worth(%)

0.00

0.00

0.00

 

 

LOCAL AGENCY FURTHER INFORMATION

 

The revenue growth was commensurate with the growth in subscriber base amidst falling ARPU/tariffs. Cost optimization efforts ensured a lower rate of increase of 15% in operating expenses, compared with 28% increase in revenues. The Company reported a positive EBIDTA of Rs. 3026.000 millions, representing a significant improvement over the previous year's EBIDTA of Rs. 1247.100 millions.

 

Indian Telecom comes of age 

 

The Indian telecom sector continued its rapid growth with a total of 66.51 million subscribers being added during the financial year 2006-07 as compared to 41.91 million in 2005-06, registering an increase of 58% in annual growth. This is the highest ever increase in the subscriber base during a financial year after the opening up of the telecom sector for competition. 

 
The total telephone subscriber base was 206 million (fixed plus mobile) at the end of March 2007. The wireless subscriber base grew to 166.05 million while the wireline base declined marginally to 40.78 million. Teledensity increased from 12.8% to 18.31%. This growth, however, was concentrated mainly in urban areas, while rural teledensity remained low at less than 4%. Despite a steady fall in the average revenue per user (ARPU) with ever declining tariffs (Indian telecommunication tariffs are the lowest in the world) Indian telecom companies have been expanding their networks, and increasing their coverage of hitherto 'dark' areas in rural India. 

 
During the year, the Government of India amended the Indian Telegraph Act, 1885, to give private mobile operators access to the Universal Service Obligation (USO) fund; each operator contributes 5% of its adjusted gross revenue to the USO fund which is intended to provide subsidies towards addressing operating losses incurred by the telecom operators in providing telecom services in the rural areas. The Department of Telecommunications (DOT) floated a tender for providing subsidies under the USO fund to telecom operators for the creation of shared infrastructure in rural areas.

 

In a surprising twist, some operators submitted bids with negative subsidy amounts, implying that instead of seeking support from the USO fund, they were willing to pay the Government to let them provide rural services.

Going forward, it is anticipated that competitive forces will ensure rapid extension of mobile connectivity to rural areas. 
 
The Company's performance 

 

The Company holds two Unified Access (basic + cellular) Services Licences ('UASL'), one for Mumbai Metro and the other for the Rest of Maharashtra and Goa. 

 
During the year, the Company consolidated its position in the market by increasing its share of new additions in the wireless market (i.e. fixed wireless and mobile) to 15.2%. The subscriber base of the Company registered almost 70% growth with the year-end subscriber base reaching 3.074 million. 

 
Despite regulatory issues as described later in this report, the Company retained its market leadership position in the fixed wireless segment. 

 
Products and Services 

 

During the year, the Company focused on increasing its retail presence to penetrate the market better with its various products and services. The Company increased its subscriber base in the mobile and fixed wireless categories apart from enhancing its offerings of value added services. 

 
The mobile subscriber base more than doubled from 0.79 million to 1.64 million. This growth was fueled by the increase in network coverage, accompanied by the introduction of new handsets at attractive prices, and tariff related actions such as the reduction of roaming tariffs, and the introduction of creative tariffs such as the One India plan. 

 
The Company has reciprocal roaming arrangements with Tata Teleservices Limited (TTSL), which offers services in 18 other telecom circles, and thus the Company's subscribers enjoy pan-India mobility. The Company also entered into arrangements with overseas telecom operators to provide international roaming facilities to its subscribers. 
 
The fixed wireless service subscriber base increased by 36% from 0.83 million to 1.13 million. The Company introduced Walky Prepaid and also launched Indicom10 (ten digit numbering fixed wireless service) in rural Maharashtra during the year. The Company is the market leader in this service. 

 

New Customer Offerings 

 

During the year, the Company launched several value-for-money propositions to delight its customers. 

·         In August 2006, the Company brought down the STD tariff for its Walky customers to Rs.1.20 for 3 minutes. 

·         The Company launched the 'One Nation' plan in November 2006 with a monthly rental of Rs.180 under which the customer could make local and STD calls to anywhere in India @ Re. 1 per minute and local and STD calls to any Tata Indicom Phone across India @ Re. 1 per 3 minute respectively. 

·         The Company commenced international roaming services in partnership with US based Verizon in November 2006. Now, the Company's customers can experience seamless roaming in the US.

·         The Company introduced the Go Colour' Value for Money offer on colour mobile handsets in September 2006. The Company celebrated the festive season of Diwali with attractive offers for prepaid customers. 

·         In November 2006, BEST, which provides bus services within Mumbai city, permitted the Company to offer its PCO service on BEST buses. With this facility, commuters can make calls from BEST buses through coin operated PCOs. 

 
Network Infrastructure

 

During the year, the Company's infrastructure cell rolled out CDMA wireless services in 186 new towns in Maharashtra and Goa. It now offers services in 357 towns and also along the major national highways linking various towns in Maharashtra and Goa. The Company's subscribers are therefore able to enjoy uninterrupted services while traveling by road and rail along the major travel routes in Maharashtra and Goa. 

 
The Company had participated in 2004 in an open bidding process for providing fixed phones in non-urban areas through support from the Universal Services Obligation (USO) fund. It won bids in 43 SDCAs, and started providing services in many rural villages in the interiors of Maharashtra. Till date, over 0.200 million rural lines have been provided by the Company, for which it is eligible to get subsidies towards meeting part of the capital expenditure and operating costs incurred for every line installed and operational at these locations. 

 
The Company's network successfully coped with the very high traffic generated on the day of the serial bomb blasts in suburban trains in Mumbai in July 2006. 

 
The Company implemented cost efficiency measures by optimizing its infrastructure, increasing utilization factors, and through the use of power saving equipment. The Company, in co-operation with other private operators, focused on increasing the sharing of passive infrastructure like towers, duct space and site equipment amongst the operators, with a view to optimizing network costs and operating expenses. 

 

FIXED ASSETS:

·         Leasehold assets

·         Land

·         Office Premises

·         Building

·         Plant and Machinery

·         Own

·         Acquired under

·         Finance Lease

·         Furniture, Fixture and Office Equipment

·         Vehicles

 

Intangible Assets:

·         License

·         Computer Software

 

OTHER DETAILS:

 

Contingent Liabilities:

31.03.2007

(Rs. in millions)

Claims against the Company not acknowledged as debts Telecom Regulatory

1026.100

Others

846.600

Disputed demands before relevant authorities:

 

Income Tax

93.500

Excise Duty

204.800

 

 

TATA Teleservices (Maharashtra) Limited Operating profit crosses Rs 2000 Millions. in 9 months

 

Mumbai, January 19, 2007: TATA Teleservices (Maharashtra) Limited today announced financial results for the third quarter and nine months ended December 31, 2006.

 

• EBITDA crossed Rs. 2000 Millions. in Nine months

• EBITDA margins more than doubled in Nine months

 

• Cash profit of Rs. 780.000 Millions in Nine months compared to cash loss of Rs. 470.000 Millions. In the corresponding period of the previous year

 

• Subscriber base grew by 62% in Nine months

 

Financial Results Summary

 

Q3 revenue grew by 27% at Rs. 3670.000 Millions. compared to Rs. 2900.000 Millions. in the corresponding quarter of the previous year.

Nine months revenue grew by 31% at Rs. 10330.000 Millions. compared to Rs. 7890.000 Millions. in the corresponding period of the previous year.

 

Q3 loss reduced by 54% at Rs. 590.000 millions. compared to Rs. 1290.000 millions in the corresponding quarter of the previous year.

Nine Months loss reduced by 32% at Rs. 2650.000 Millions. compared to Rs. 3890.000 Millions. in the corresponding period of the previous year.

 

Q3 EBITDA grew by 144% at Rs. 830.000 Millions. compared to Rs. 340.000 Millions. in the corresponding quarter of the previous year.

Nine months EBITDA grew by 194% at Rs. 2060.000 Millions. compared to Rs. 700.000 Millions. in the corresponding period of the previous year.

 

Q3 EBITDA margin is at 23% compared to 12% in the corresponding quarter of the previous year

Nine months EBITDA margin is at 20% compared to 9% in the corresponding period of the previous year.

 

Q3 Cash Profit at Rs. 420.000 Millions. compared to Cash Loss of Rs. 9 Millions. in the corresponding quarter of the previous year

 

Nine months Cash Profit is Rs. 780.000 Millions. compared to Cash Loss of Rs. 470.000 Millions. in the corresponding period of the previous year.

 

Thrust on Rural and Enterprise markets enabled robust Q3 performance. The total Subscriber base crossed Rs.  2.700 Millions. Optimization of operations was achieved through planned cost control measures coupled with enhanced productivity.

 

A strategic two level training program was implemented during the quarter ensuring certification of all employees towards enhancing the quality of customer service.

 

PRESS RELEASES:

 

Mumbai, April 22, 2008: Tata Teleservices (Maharashtra) Limited, India's premier telecommunication service provider licensed to provide telecommunication services in Maharashtra (including Mumbai) and Goa today announced the appointment of  Mr. Rajesh Puri as President – Operations.

 

Mr. Rajesh Puri joins the company with rich experience in the telecom industry. Mr Puri most recently served as Chief Operating Officer (COO) of the Enterprise Business (East) and International Calling Business, Airtel. Prior to this, he was Chief Operating Officer (East Circle), Tata Teleservices Limited.

 

About Tata Teleservices (Maharashtra) Limited:

 

Tata Teleservices (Maharashtra) Limited is India's premier telecommunication service provider licensed to provide telecommunication services in Maharashtra (including Mumbai) and Goa. The company presently offers telephony and ISP services in the cities of Mumbai and Navi Mumbai, Pune, Nagpur, Nashik, Aurangabad, Kolhapur, Panaji, Sangli, Thane, Ahmednagar and other cities, towns and villages of Maharashtra and Goa. It focuses on all market segments, i.e. commercial, residential and Public telephony. Tata Teleservices (Maharashtra) launched Tata Indicom Mobile services in 2003. Tata Teleservices (Maharashtra) Limited has over 5 million customers in Maharashtra and Goa. These include reputed corporates, SMEs and residential customers.

 

Mumbai, January 22, 2008: TATA Teleservices (Maharashtra) Limited today announced financial results for the Quarter ended December 31, 2007.

 

• Cash Profit of Rs. 860.000 millions for the quarter against Cash Profit of Rs. 420.000 millions for the corresponding quarter in the previous year.

 

• EBITDA crossed Rs. 1280.000 millions for the quarter against EBITDA of Rs. 830.000 millions for the corresponding quarter in the previous year.

 

• Revenue touched Rs. 4600.000 millions for the quarter against Revenue of Rs. 3670.000 millions for the corresponding quarter in the previous year.

 

Financial Results Summary

 

Revenue touched Rs. 4600.000 millions for the quarter against Revenue of Rs. 3670.000 millions for the corresponding quarter in the previous year.

 

The subscriber base crossed Rs. 4.700 millions during the quarter. Revenues grew to Rs. 12980.000 millions for the nine months compared to Rs. 10340.000 millions for the corresponding period of the previous year.

 

EBITDA grew to Rs. 3350.000 millions for the nine months compared to the EBITDA of Rs. 2060.000 millions for the corresponding period of the previous year.

 

The company posted a Cash Profit of Rs. 2170.000 millions for the nine months against Cash Profit of Rs. 780.000 millions in the corresponding period of the previous year.

 

During the nine month period, FCCB holders converted 46 Million US Dollar holdings to Equity shares.

 

 

 

 

 

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 :

The 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.

 

The 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

 

 

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, they have no basis upon which to recommend credit dealings

No Rating

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions