MIRA
INFORM REPORT
|
Report Date : |
07.06.2008 |
IDENTIFICATION
DETAILS
|
Name : |
VODAFONE ESSAR DIGILINK LIMITED |
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Formerly Known As : |
AIRCEL DIGILINK INDIA LIMITED |
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Registered Office : |
C – 48, Okhla Industrial Area, Phase II, New Delhi – 110020 |
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Country : |
India |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
21.03.1995 |
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Com. Reg. No.: |
55 - 88088 |
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CIN No.: [Company
Identification No.] |
U64201DL1997PLC088088 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
RTKA01860F |
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PAN No.: [Permanent
Account No.] |
AAACA3202D |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
Providing Cellular Mobile Telecom Services and Handsets and
Accessories. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 7124900 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is a well – established and reputed telecom service providers.
The company has been successful in wiping-off all its previous losses during
the year 2005-06. Trade relations are fair. Payments are however reported as
slow but correct. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
|
Registered Office : |
C – 48, Okhla Industrial Area, Phase II, New Delhi – 110020, India |
|
Tel. No.: |
91-9811144444/18500 / 9811090001 |
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Fax No.: |
91-9811090001/26388730/9811398002 |
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E-Mail : |
DIRECTORS
|
Name : |
Mr. Ravi Nandkishor Ruia |
|
Designation : |
Director |
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Address : |
Post Box No.61078, Jebelali, Dubai, UAE |
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Date of Birth/Age : |
29.07.1956 |
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Date of Appointment : |
31.01.2000 |
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Name : |
Mr. Anshuman Ruai |
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Designation : |
Director |
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Address : |
Ruia House, 40 Bridge Road, Malabarhill, Mumbai – 400006, Maharashtra |
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Date of Birth/Age : |
11.03.1971 |
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Date of Appointment : |
06.09.2002 |
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|
Name : |
Mr. Asim Ghosh |
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Designation : |
Director |
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Address : |
64 NC PA Apartments, Nariman Point, Mumbai – 400021, Maharashtra,
India |
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Date of Birth/Age : |
07.12.1947 |
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Date of Appointment : |
27.08.2003 |
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|
Name : |
Mr. Christopher John Foll |
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Designation : |
Director |
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Address : |
Lincoln Lodge Main Bunglow, Alta Mount Road, Mumbai – 400026,
Maharashtra |
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Date of Birth/Age : |
06.08.1956 |
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Date of Ceasing: |
08.05.2007 |
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|
Name : |
Mr. Geoffrev Carolan Locke |
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Designation : |
Director |
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Address : |
12th Floor, Urmi 65 Worli Sea Face Mumbai – 400025,
Maharashtra |
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Date of Birth/Age : |
13.03.1966 |
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Date of Appointment : |
27.08.2003 |
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|
Name : |
Mr. Vikash Saraf |
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Designation : |
Director |
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Address : |
203, Orchid, 18 Bg. Khar Marg, Worli, Mumbai – 400018, Maharshtra |
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Date of Birth/Age : |
19.12.1968 |
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Date of Appointment : |
01.02.2005 |
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|
Name : |
Mr. Frank Sixt |
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Designation : |
Director |
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Address : |
Flat G/ Bknights Bridge Court No 28, Banker Road, The Peak Hongkong |
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Date of Birth/Age : |
29.11.1951 |
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Date of Appointment : |
01.02.2005 |
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Name : |
Mr. Dennts Lut |
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Designation : |
Director |
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Address : |
Duplex 5 Dynasty, Villa 8 Dynasty Heights Beacon Hill Kowloon,
Hongkong |
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Date of Birth/Age : |
02.03.1951 |
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Date of Appointment : |
01.02.2005 |
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|
Name : |
Mr. Ian Locke |
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Designation : |
Alternate Director |
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Address : |
38, St. Margaret’s Road, Swindon United Kingdom, SN3 1RX, Swindon |
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Date of Birth/Age : |
18.02.1970 |
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Date of Appointment : |
08.05.2007 |
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|
Name: |
Mr. Sunil Ranka |
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Designation: |
Director |
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|
Name : |
Mr. Robert Nicolas Barr |
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Designation : |
Director (Foreigner) |
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Name: |
Mr. Gavin Darby John |
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Designation : |
Director |
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Name: |
Mr. Hargreaves Eric Thomas |
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Designation : |
Director |
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Name: |
Mr. Sandip Das |
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Designation : |
Director |
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Date of Ceasing : |
22.12.2006 |
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Name: |
Mr. Dennis Lui |
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Designation : |
Director |
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Date of Ceasing : |
08.05.2007 |
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Name: |
Mr. Sanderson John Christopher |
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Designation : |
Director (Foreigner) |
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Date of Ceasing : |
08.05.2007 |
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|
Name : |
Hutchison Essar Limited |
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Designation |
Alternate Director |
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CIN of company: |
U32200MH1992PTC119108 |
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Name : |
Hutchison Essar South Limited |
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Designation |
Alternate Director |
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CIN of company: |
U74899DL1995PLC074451 |
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|
Name : |
Hutchison Telecom East Limited |
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Designation |
Alternate Director |
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CIN of company: |
L32204WB1992PLC079998 |
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|
Name : |
Fascel Limited |
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Designation |
Alternate Director |
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CIN of company: |
U32100GJ1995PLC035282 |
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|
Name : |
Hutchison Essar Celluar Limited |
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Designation |
Alternate Director |
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CIN of company: |
U64202TZ1995PLC007674 |
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Name : |
Hutchison Essar Mobile Services Limited |
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Designation |
Alternate Director |
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CIN of company: |
U64202DL1992PLC088087 |
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|
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|
Name : |
Essar Spacetel Limited |
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Designation |
Alternate Director |
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CIN of company: |
U72200DL1997PLC085764 |
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|
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|
Name : |
Telecom Investments India Private Limited |
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Designation |
Additional Director |
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CIN of company: |
U65990MH1997PTC112707 |
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|
Name : |
Jaykay Finholding (India) Private Limited |
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Designation |
Additional Director |
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CIN of company: |
U65990MH1999PTC121979 |
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Name : |
UMT Investments Limited |
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Designation |
Additional Director |
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CIN of company: |
U65993WB1997PTC085278 |
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|
|
|
Name : |
Usha Martin Telematics Limited |
|
Designation |
Additional Director |
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CIN of company: |
U32202WB1995PTC069502 |
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|
|
|
Name : |
Omega Telecom Holding Private Limited |
|
Designation |
Additional Director |
|
CIN of company: |
U64200MH1995PTC087657 |
KEY EXECUTIVES
|
Name : |
Mr. Nivasan Venkateshan |
|
Designation : |
Company Secretary |
|
Address : |
3/132 Vipulkhand Gomat Nagar, Lucknow – 226010, UP |
|
Date of Birth/Age : |
27.01.1961 |
|
Date of Appointment : |
16.04.2001 |
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|
Name : |
Mr. Khanna Nishchini |
|
Designation : |
Manager |
|
Address : |
2/138, Vijay Khand, 11 Gomti Nagar, Luknow – 226010, UP |
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Date of Birth/Age : |
30.01.1965 |
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Date of Appointment : |
31.12.2004 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 31.12.2006)
|
Names of Shareholders |
|
No. of Shares |
|
Central Depositary Services India Limited- Beneficiary Hutchison
Telecom East Limited |
|
101099992 |
|
Chandramurali Iyer Jointly with Hutchison Telecom East Limited |
|
1 |
|
Aseem mohan Jointly with Hutchison telecom East Limited |
|
1 |
|
Asim Ghosh Jointly with Hutchison Telecom East Limited |
|
1 |
|
Christopher Foll Jointly with Hutchison Telecom East Limited |
|
1 |
|
Geoffrey Caroian Jointly with Hutchison Telecom East Limited |
|
1 |
|
Sundeep Kathuria Jointly with Hutchison Telecom East Limited |
|
1 |
|
Manish sansi Jointly with Hutchison Telecom East Limited |
|
1 |
|
Sunil Ranka Jointly with Huthison Telecom East Limited |
|
1 |
|
Total |
|
101100000 |
|
|
|
|
|
Category |
|
Percentage |
|
Bodies Corporate |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Providing Cellular Mobile Telecom Services and Handsets and
Accessories. |
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Products : |
|
GENERAL
INFORMATION
|
Financial Institutions: |
IL and FS Trust
Company Limited, Mumbai |
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Banking Relations
: |
Satisfactory |
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Auditors : |
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Name : |
Price Waterhouse Chartered Accountants Mr. V Nishawan , Partner, Membership No. F-87228 |
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Address : |
Building 8, 7th and 8th Floor, Tower – B, DLF
Cyber City, Gurgaon – 122002, Haryana, India |
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
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|
101200000 |
Equity shares |
Rs.10/- each |
Rs.1012.000 Millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
101100000 |
Equity shares |
Rs.10/- each |
Rs.1011.000
Millions |
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FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.12.2006 |
31.12.2005 |
31.12.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
1011.000 |
1011.000 |
1011.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
770.225 |
0.000 |
0.000 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1781.225 |
1011.000 |
1011.000 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
4861.846 |
3520.490 |
3495.740 |
|
|
2] Unsecured Loans |
5460.000 |
5371.080 |
3941.080 |
|
|
TOTAL BORROWING |
10321.846 |
8891.570 |
7436.820 |
|
|
DEFERRED TAX LIABILITIES |
10.969 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
12114.040 |
9902.570 |
5069.660 |
|
|
|
|
|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
14067.122 |
7240.010 |
4616.860 |
|
|
Capital work-in-progress |
2549.210 |
1390.660 |
723.460 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
250.320 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
0.000 |
0.000 |
0.000 |
|
|
Sundry Debtors |
414.264 |
371.810 |
414.180 |
|
|
Cash & Bank Balances |
509.304 |
1132.970 |
296.280 |
|
|
Other Current Assets |
410.748 |
190.210 |
147.740 |
|
|
Loans & Advances |
2397.040 |
825.740 |
1267.570 |
|
Total
Current Assets |
3731.356
|
2520.730 |
2125.770 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
7758.556 |
4039.830 |
2389.800 |
|
|
Provisions |
475.092 |
213.250 |
6.630 |
|
Total
Current Liabilities |
8233.648
|
4253.080 |
2396.430 |
|
|
Net Current Assets |
(4502.292) |
(1732.350) |
(270.660) |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
Profit and loss Acount |
0.000 |
2753.930 |
3378.160 |
|
|
|
|
|
|
|
|
TOTAL |
12114.040 |
9902.570 |
5069.660 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.12.2006 |
31.12.2005 |
31.12.2004 |
|
|
Sales Turnover |
12754.100 |
6685.040 |
3930.750 |
|
|
Other Income |
221.700 |
74.640 |
59.510 |
|
|
Total Income |
12975.800 |
6759.680 |
3990.260 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
3810.810 |
443.710 |
182.260 |
|
|
Provision for Taxation |
286.660 |
(180.520) |
17.500 |
|
|
Profit/(Loss) After Tax |
3524.150 |
624.230 |
164.760 |
|
|
|
|
|
|
|
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Imports : |
|
|
|
|
|
Total Imports |
3854.640 |
1679.160 |
NA |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Access and Regulatory Charges |
3220.820 |
1758.340 |
1096.690 |
|
|
Network Operating Expenditures |
1972.760 |
942.350 |
539.970 |
|
|
Personnel Expenses |
429.740 |
314.130 |
204.900 |
|
|
Advertisement, Marketing, Sales and
Distributed Expenses |
2363.740 |
1250.210 |
912.000 |
|
|
Administrative, General and Other Expenses |
1352.710 |
923.780 |
721.970 |
|
|
Prior Year Items |
0.000 |
3.850 |
0.000 |
|
|
Financial Charges |
539.950 |
409.640 |
331.260 |
|
|
Exceptional Income |
2026.530 |
0.000 |
25.390 |
|
|
Depreciation & Amortization |
(131..800) |
(713.670) |
(391.120) |
|
|
Other Expenditure |
9339.770 |
5192.660 |
3475.530 |
|
Total Expenditure |
21114.220 |
10081.290 |
6916.180 |
|
KEY RATIOS
|
PARTICULARS |
|
31.12.2006 |
31.12.2005 |
31.12.2004 |
|
PAT / Total
Income |
(%) |
23.49 |
3.89 |
4.12 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
29.87 |
6.66 |
4.63 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
21.41 |
4.54 |
8.57 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
2.13 |
0.43 |
0.18 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
10.41 |
13.00 |
2.37 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.45 |
59.26 |
0.11 |
LOCAL AGENCY
FURTHER INFORMATION
Note:
The Subject was Originally Incorporated on “Aircel Digilink India
Limited” on June 12, 1997 and Charged into the present name “Vodafone Essar
Digilink Limited” w.e.f. Jauly 7, 2007
Form
8:
|
Corporate
identity number (CIN) Foreign company registration number |
U64201DL1997PLC088088 |
|
Name of the
Company |
AIRCEL DIGILINK INDIA LIMITED |
|
Address |
C – 48, Okhla Industrial Area, Phase II, New Delhi – 110020, India |
|
This form is for |
Creation of
charge |
|
Type of Charge |
Hypothecation |
|
Particulars of
the charge holder |
IL and FS Trust
Company Limited IL and FS
Financial Centre Plot No.C.- 22, G Block – Bandra Kurla Complex, Bandra (E),
Mumbai – 400051, Maharashtra, India |
|
Nature or
description of the instrument(s) creating or modifying the charge |
Deed
Hypothecation Dated 21, February 2006, Executed by the company in favour of
IL and FS Trust Company Limited as security Trustee – Details in annexure 1 |
|
Date of the
instrument creating or modifying the charge |
21.02.2006 |
|
Amount secured by
the charge |
Rs.67100.000
Millions |
|
Brief particulars
of the principal terms and conditions and extent and operation of the charge |
As Detailed In
Annexure 2 |
|
Short particulars
of the property charged (including location of the property) |
As detailed in
annexure 3 |
|
Particular of the
present modification |
N.A. |
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 records 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.42.79 |
|
UK Pound |
1 |
Rs.83.77 |
|
Euro |
1 |
Rs.66.71 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--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 |
YES |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
52 |
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. |
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 |
|