MIRA
INFORM REPORT
|
Report Date : |
06.03.2008 |
IDENTIFICATION
DETAILS
|
Name : |
BHARTI AIRTEL LIMITED |
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Formerly Known As : |
BHARTI
TELE-VENTURES LIMITED |
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Registered Office : |
Qutab Ambience,
H-5/12, Mehrauli Road, New Delhi – 110 030 |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
07.07.1995 |
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Com. Reg. No.: |
55-70609 |
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CIN No.: [Company
Identification No.] |
L74899DL1995PLC070609 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELB04730F |
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Legal Form : |
A Public Limited
Liability Company. The company’s
shares are listed on the Stock Exchanges. |
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Line of Business : |
Company is in
engaged in Telecommunications services, Provides telephone services and
Internet access over DSL in 15 circles. The company complements its mobile,
broadband & telephone services with national and international long
distance services. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 456530400 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a
well-established and reputed company. Available information indicates high
financial responsibility of the company. Directors are reported as
experienced and respectable industrialists. Financial position of the company
is good. Payments are usually correct and as per commitments. The company can
be considered for normal business dealings at usual trade terms and
conditions. |
LOCATIONS
|
Registered Office : |
Qutab Ambience,
H-5/12, Mehrauli Road, New Delhi – 110 030, India |
|
Tel. No.: |
91-11-51666000-007 |
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Fax No.: |
91-11-51666011/12 |
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E-Mail : |
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Website : |
DIRECTORS
|
Name : |
Mr. Sunil Bharti
Mittal |
|
Designation : |
Chairman &
Managing Director |
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|
|
|
Name : |
Mr. Rajan Bharti
Mittal |
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Designation : |
Joint Managing
Director |
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|
Name : |
Mr. Akhil Gupta |
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Designation : |
Joint Managing
Director |
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|
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|
Name : |
Mr. Sin Hang Boon |
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Designation : |
Director
nominated by Singtel |
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|
Name : |
Mr. Lim Toon |
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Designation : |
Director
nominated by Singtel |
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|
Name : |
Mr. Lung Chien
Ping |
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Designation : |
Director |
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|
Name : |
Mr. Bashir
Abdulla Currimjee |
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Designation : |
Director |
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|
Name : |
Mr. Pulak Chandan
Prasad |
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Designation : |
Director |
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|
Name : |
Mr. Paul
O’Sullivan |
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Designation : |
Director |
|
Name : |
Ms. Chua Sock
Koong |
|
Designation : |
Director
nominated by SingTel |
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|
Name : |
Mr. Dalip Pathak |
|
Designation : |
Director |
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|
Name : |
Mr. Donald
Cameron |
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Designation : |
Director |
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|
Name : |
Mr. Wong Hung
Khim |
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Designation : |
Director |
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Name : |
Mr. N Kumar |
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Designation : |
Director |
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Name : |
Mr. P M Sinha |
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Designation : |
Director |
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|
Name : |
Mr. Ajay Lai |
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Designation : |
Non-Executive Director |
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Name : |
Mr. Arun Bharat
Ram |
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Designation : |
Non-Executive Director |
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Name : |
Mr. Bashir Currimjee |
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Designation : |
Non-Executive Director |
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Name : |
Mr. Chua Sock
Koong |
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Designation : |
Non-Executive Director |
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Name : |
Mr. Donald
Cameron |
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Designation : |
Non-Executive Director |
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Name : |
Mr. Gavin John
Darby |
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Designation : |
Non-Executive Director |
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|
Name : |
Mr. Kurt
Hellstrom |
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Designation : |
Non-Executive Director |
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Name : |
Mr. N. Kumar |
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Designation : |
Non-Executive Director |
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Name : |
Mr. Paul Donovan |
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Designation : |
Non-Executive Director |
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Name : |
Mr. Paul
O'Sullivan |
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Designation : |
Non-Executive Director |
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Name : |
Mr. Pulak Chandan
Prasad |
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Designation : |
Non-Executive Director |
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Name : |
Mr. Rakesh Bharti
Mittal |
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Designation : |
Non-Executive Director |
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|
Name : |
Mr. Syeda
Bilgrami Imam |
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Designation : |
Non-Executive Director |
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Name : |
Mr. V. S. Raju |
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Designation : |
Non-Executive Director |
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Name : |
Mr. York Chye
Chang |
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Designation : |
Non-Executive Director |
KEY EXECUTIVES
|
Name : |
Mr. Vijaya
Sampath |
|
Designation : |
General Counsel
and Company Secretary |
|
|
|
|
Name: |
Mr. Sunil Bharti Mittal |
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Designation: |
Chairman and Managing Director |
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Age: |
44 Years |
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Qualification: |
Graduate |
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Experience: |
25 Years |
|
Date of
Joining: |
01st October, 2001 |
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Previous
Employment: |
Bharti Telecom Limited, Chairman |
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|
|
|
Name: |
Mr. Rajan Bharti Mittal |
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Designation: |
Joint Managing Director |
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Age: |
44 Years |
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Qualification: |
B.A. |
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Experience: |
20 Years |
|
Date of
Joining: |
01st October, 2001 |
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Previous
Employment: |
Bharti Healthcare Limited |
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|
|
|
Name: |
Mr. Akhil Gupta |
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Designation: |
Joint Managing Director |
|
Age: |
46 Years |
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Qualification: |
FCA |
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Experience: |
20 Years |
|
Date of
Joining: |
01st October, 2001 |
|
Previous
Employment: |
Consultancy |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 31.12.2007
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Indian |
|
|
|
Bodies Corporate |
859986028 |
45.31 |
|
Foreign
|
|
|
|
Bodies Corporate |
390363150 |
20.57 |
|
Public
Shareholding |
|
|
|
Mutual Funds/UTI |
40978090 |
2.16 |
|
Financial Institutions/Banks |
1244961 |
0.07 |
|
Insurance Companies |
39616948 |
2.09 |
|
Foreign Institutional Investors |
479444279 |
25.26 |
|
Any other Foreign Banks |
93540 |
0.00 |
|
Non
Institution |
|
|
|
Bodies Corporate |
37932411 |
2.00 |
|
Individuals |
|
|
|
i. Individual shareholders holding nominal
share capital up to Rs. 1 lakh |
13901574 |
0.73 |
|
ii. Individual shareholders holding
nominal share capital in excess of Rs. 1 lakh |
9265093 |
0.49 |
|
Foreign National |
40 |
0.00 |
|
Foreign Companies |
16251502 |
0.86 |
|
Non Resident Indians |
910305 |
0.05 |
|
Overseas Corporate Bodies |
5178510 |
0.27 |
|
Trusts |
2478821 |
0.13 |
|
Clearing Members |
191344 |
0.01 |
|
Total |
1897836596 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Company is in
engaged in Telecommunications services, Provides telephone services and
Internet access over DSL in 15 circles. The company complements its mobile,
broadband & telephone services with national and international long
distance services. |
GENERAL
INFORMATION
|
No. of Employees : |
300 |
|
|
|
|
Bankers : |
ICICI Bank
Limited |
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|
|
|
|
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Banking
Relations : |
Good |
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Auditors : |
|
|
Name : |
Price Waterhouse Chartered
Accountants |
|
Address : |
Bangalore |
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|
|
|
Associates : |
Ř
Bharti
Hexacom limited Ř
Bharti
Broadband Limited Ř
Satcom
Broadband Equipment Limited Ř
Singapore
Telecommunications Limited Ř
Bharti
Telesoft Limited Ř
Bharti
Teletech Limited Ř
Bharti
Telesoft International Limited Ř
Teletech
Services (India) Limited Ř
Mulberry
Projects Private Limited Ř
Bharti
Foundation Ř
Bharti
Tele-Ventures Employees Trust |
|
|
|
|
Subsidiaries : |
Ř
Bharti
Comtel Limited Ř Bharti Aquanet Limited |
|
|
|
|
Joint Venture
: |
Ř
Forum I
Aviation Limited Ř
Bridge
Mobile Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2,500,000,000 |
Equity Shares |
Rs.10.00 each |
Rs. 25000.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1,893,879,304 |
Equity Shares |
Rs.10.00 each |
Rs. 18938.793 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 |
|
|
|
|
1] Share Capital |
18959.300 |
18938.793 |
18560.900 |
|
2] Share
Application Money |
0.000 |
121.260 |
0.000 |
|
3] Reserves & Surplus |
95173.300 |
54395.531 |
26775.100 |
|
NETWORTH |
114132.600 |
73455.584 |
45336.000 |
|
|
|
|
|
|
LOAN FUNDS |
|
|
|
|
1] Secured Loans |
2664.500 |
28633.707 |
39598.800 |
|
2] Unsecured Loans |
50443.600 |
19329.201 |
10344.100 |
TOTAL BORROWING
|
53108.100 |
47962.908 |
49942.900 |
|
DEFERRED TAX
LIABILITIES |
0.000 |
1890.459 |
0.000 |
|
|
|
|
|
TOTAL
|
167240.700 |
123308.951 |
95278.900 |
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
193056.300 |
130068.771 |
97649.900 |
|
Capital work-in-progress |
23758.200 |
23412.498 |
9944.600 |
|
|
|
|
|
|
INVESTMENTS |
7058.200 |
7196.981 |
9319.000 |
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
Inventories |
515.500 |
177.444 |
315.800 |
|
Sundry Debtors |
14185.200 |
10761.709 |
7157.400 |
|
Cash & Bank Balances |
7804.600 |
3074.285 |
3841.400 |
|
Other Current Assets |
0.000 |
0.000 |
0.000 |
|
Loans & Advances |
31857.800 |
15529.497 |
12056.400 |
|
Total Current Assets |
54363.100 |
29542.935 |
23371.000 |
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
Current Liabilities & Provisions |
98398.400 |
64655.783 |
43088.900 |
Provisions
|
12623.300 |
2335.851 |
2500.100 |
Total Current Liabilities
|
111021.7 |
66991.634 |
45589.000 |
|
Net Current Assets |
(56658.600) |
(37448.699) |
(22218.000) |
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
26.600 |
79.400 |
583.400 |
|
|
|
|
|
TOTAL
|
167240.700 |
123308.951 |
95278.900 |
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
Sales Turnover [including other income]
|
180000.900 |
112905.793 |
80268.500 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
46013.700 |
22857.955 |
15642.800 |
Provision for Taxation
|
5681.400 |
2737.161 |
3536.100 |
Profit/(Loss) After Tax
|
40332.300 |
20120.794 |
12106.700 |
|
|
|
|
|
Total Expenditure
|
134606.600 |
61323.268 |
70299.300 |
QUARTERLY RESULTS
|
Particulars |
30.06.2007 1ST Quarter |
30.09.2007 2nd Quarter |
31.12.2007 3rd Quarter |
|
Sales Turnover |
5,6116.200
|
6,0598.900
|
6,6182.700
|
|
Other Income |
798.300
|
586.400
|
643.000
|
|
Total Income |
5,6914.500
|
6,1185.300
|
6,6825.700
|
|
Total Expenditure |
3,2927.400
|
3,4898.500
|
3,8409.000
|
|
Operating Profit |
2,3987.100
|
2,6286.800
|
2,8416.700
|
|
Interest |
-2597.200
|
-48.800
|
4682.300
|
|
Gross Profit |
2,6584.300
|
2,6335.600
|
2,3734.400
|
|
Depreciation |
7509.200
|
8417.100
|
9250.600
|
|
Tax |
3345.100
|
2082.500
|
1358.600
|
|
Reported PAT |
1,4129.200
|
1,6191.500
|
1,4198.400
|
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity
Ratio |
0.54 |
0.83 |
0.60 |
|
Long
Term Debt-Equity Ratio |
0.50 |
0.63 |
0.50 |
|
Current
Ratio |
0.46 |
0.41 |
1.10 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
0.80 |
0.72 |
1.19 |
|
Inventory |
509.03 |
455.34 |
500.51 |
|
Debtors |
14.31 |
12.53 |
22.08 |
|
Interest
Cover Ratio |
17.31 |
10.65 |
5.93 |
|
Operating
Profit Margin (%) |
41.18 |
35.22 |
36.70 |
|
Profit
Before Interest And Tax Margin (%) |
27.36 |
22.47 |
23.80 |
|
Cash
Profit Margin (%) |
36.42 |
30.68 |
28.22 |
|
Adjusted
Net Profit Margin (%) |
22.59 |
17.92 |
15.32 |
|
Return
On Capital Employed (%) |
33.87 |
22.55 |
23.96 |
|
Return
On Net Worth (%) |
43.04 |
31.82 |
23.88 |
LOCAL AGENCY
FURTHER INFORMATION
Fixed
assets
Ř Goodwill
Ř Leasehold land
Ř Freehold hand
Ř Leasehold VSAT assets
Ř Plant & machinery
Ř Air conditioners
Ř Building & leasehold improvements
Ř Office equipment
Ř Computer
Ř Vehicle
Ř Furniture & fixtures
History:
Subject
(Formerly known as Tele-Ventures (BTVL)) was incorporated on 07.07.1995, for
promoting investments in diversified telecom service projects. The company was
formed as 80:20 joint ventures between the Bharti Group through its subsidiary
Bharti Telecom and STETS International Netherlands NV, a company promoted by
Telecom Italia, Italy.
Concern is one of India's leading private sector providers of telecom services
with more than 20 million customers in India and is the first to have an all
India presence. The company is structured into three main unites, Mobile
Services which offers GSM Mobiles Services and Infotel Services which provides
broadband & Telephone, long distance and enterprise services which offers
carriers and corporate. The company was first GSM Operator to have more than
ten million customers and also the first telecom company to cover all the 23
telecom circles of India, which this coverage facility the company became the
first operator to have an All-India footprint. All the services of company is
been provided under brand name AIRTEL.
In 2000, subject acquired an effective equity interest of 40.5% in Bharti
Mobinet (formerly Skycell Communication), the cellular service provider in
Chennai. It also acquired a 30.20% equity interest of Telecom Italia in Bharti
Telenet and 18.8% from Bharti Telecom thereby making Bharti Telenet a 100%
subsidiary of subject. Subject also
holds an effective 74% equity in Bharti Mobile and 100% equity in Bharti
Cellular. Bharti Telenet has entered into license agreements to provide
fixed-line services in the Haryana, Delhi, Tamilnadu and Karnataka Circles. In
2002-03 the company made a brief corporate restructuring by merging all the
mobile operations into Bharti Cellular Limited and all fixed line, long
distance and data services into Bharat Infotel Limited.
Subject’s two subsidiaries Bharti Cellular Limited and Bharti Infotel Limited
have been merged with the company with effect from 01.04.2004. Subsequently
Bharti Broadband Limited and Satcom Broadband Equipment Limited have become the
subsidiaries of the company after the above said merger. During 2005 the
company acquired 1% equity stake of Bharti Hexacom Limited (formally known as
Hexacom India Limited). With this acquisition the company stake in Bharti
Hexacom Limited has increased to 68.50%. Bharti Hexacom owns Licenses to
operate cellular services in the Rajasthan and North East Circles.
In 2005 the company was awarded the 'Indian Mobile Operator of the Year 2005'
by Asian Mobile News. Also the company became the top-most Telecom Company and
was featured amongst the top three companies across the sectors in the ET 500
published in June 2005. During 2005 the company introduced new products like
Blackberry wireless solution, Airtel Live and the company was the first
wireless services operator to introduce Ring back tones (Hello Tunes). Also the
company was the first to introduce Stock and Portfolio Tracker on the mobile in
association with the Bombay Stock Exchange.
The company launched its mobile operations in seven new circles of Assam,
Bihar, Jammu & Kashmir, North East, Orissa, Uttar Pradesh (East) and West
Bengal during 2005. Also the company entered into the partnerships with the
leading companies like Nokia, Siemens, Ericsson and IBM for its network
planning, supply & management and for its IT requirements respectively.
During 2005-2006, Vodafone acquired 10% economic interest in the company by way
of subscription of convertible debentures in Bharti Enterprises Limited,
representing an indirect economic interest in Bharti Airtel Limited and
acquisition of direct interest in the company from Warburg Pincus LLC. The
company also signed a managed capacity expansion contract with Ericsson to
provide managed services and expand its GSM/GPRS network into rural India in 15
circles. The company also acquired an all-India footprint with the launch of
mobile service in Assam.
The company was awarded 'Best Managed Company Award 2005' in the large cap
category by Asia Money, 'Avaya Global Connect Customer Responsiveness Award
2005' for best customer service in the telecom sector, 'Most preferred Mobile
Service' by CNBC Awaaz Consumer Awards, 'Asian Mobile News Awards 2005' and
'Mobile Operator of the Year, India Award', 'Best GSM carrier in Asia' in the
Telecom Asia Awards 2005, 'Best Indian Carrier' in the Telecom Asia Awards
2005, 'Market Leadership Award for Managed WAN Services Market, 2005' By Frost
& Sullivan, 'Wireless service Provider of the year 2006' and 'Competitive
Service Provider of the year 2006' by Frost & Sullivan Asia Pacific. The
company also ranked among the top three companies in The Economics Times Top
500. The company is featured among the Forbes Global 2000 leading companies in
the world for the year 2005 and is ranked 2nd among the 'Best Managed
Companies' in India, in Asia's Best Companies 2005 poll conducted by Finance
Asia.
About
Bharti Tele-Ventures
Bharti Airtel is the proposed new name of Bharti
Tele-Ventures. This new name is subject to legal and regulatory approval.
Bharti Tele-Ventures is one of India’s leading private sector providers of
telecommunications services with an aggregate of over 19.74 million customers
as of end of February ‘06, consisting of more than 18.45 million mobile
customers. The company is the only operator to provide mobile services in all
the 23 circles in India. The company also provides telephone services and
Internet access over DSL in 15 circles. The company complements its mobile,
broadband & telephone services with national and international long
distance services. The company also has a submarine cable landing station at
Chennai, which connects the submarine cable connecting Chennai and Singapore.
The company is a part of the consortium, which jointly owns and has developed
the next generation undersea cable system SEA-ME-WE-4. The company provides
reliable end-to-end data and enterprise services to the corporate customers by
leveraging its nationwide fiber optic backbone, last mile connectivity in
fixed-line and mobile circles, VSATs, ISP and international bandwidth access
through the gateways and landing station. For more information, visit www.bhartiteleventures.com
The Hon’ble
Prime Minister inaugurates Bharti School of Telecommunication Technology &
Management at IIT, Delhi
Category: Recent Highlights
2005-2006
20-03-06
·
The
School is an initiative by IIT, Delhi and Bharti Foundation to develop
Young Leaders for the telecommunication industry
- Backed by state-of-the art
infrastructure and best of faculty
New Delhi, March 20, 2006: The Hon’ble Prime Minister of India, Dr. Manmohan Singh,
today inaugurated the Bharti School of Telecommunication Technology &
Management at the Indian Institute of Technology (IIT), Delhi. A joint
initiative of Bharti Foundation and IIT, Delhi, the Bharti School has been
established with a Vision ‘To develop telecom leaders through excellence in
education and research’.
Also
present on the occasion were Prof. Surendra Prasad, Director, IIT, Delhi; Mr.
Sunil Bharti Mittal, Chairman & Group Managing Director, Bharti Enterprises
& Co-chairman, Bharti School Advisory Board; and Mr. Rakesh Bharti Mittal,
Vice Chairman, Bharti Enterprises & Member, Bharti School Advisory Board.
Bharti
School will address the need for a centre of Higher Education that would groom
and develop telecommunication engineers and managers able to take on leadership
roles in this dynamic and cutting-edge industry. The school offers
post-graduate programmes, i.e. M.Tech, MBA, MS (Research) and PhD in
telecommunication and has a state-of-the-art Teaching and Research
infrastructure that includes a Telecom Software Lab, a Wireless Communications
Lab and a Telecom Networks Lab. Bharti School attracts the best teaching talent
both from within IIT, Delhi and in the form of Visiting Faculty from other
institutes.
On
the occasion, Prof. Surendra Prasad, Director, IIT Delhi, said, “The IITs have been
created as centres of excellence for higher learning, research and development
in science, engineering and technology in India and they have a strong emphasis
on industry-academia partnership. Bharti School is a shining example of this
partnership for establishing a world-class education and research centre in the
field of telecommunication.”
Mr.
Sunil Bharti Mittal, Chairman & Group Managing Director, Bharti Enterprises
& Co-chairman, Bharti School Advisory Board, said, “Education is the key
for advancing India’s position in the global market as a hub for technology
innovations and for bringing in all-round development of the economy. India is
one of the fastest growing telecom markets in the world and Bharti School is an
initiative devoted to developing “Young Telecom Leaders” that will make India a
telecom super power. This is a momentous occasion and the realisation of a
personal dream for all of us at Bharti.”
According
to Mr. Rakesh Bharti Mittal, Vice Chairman, Bharti Enterprises & Member,
Bharti School Advisory Board, “They are very proud to be associated with IIT,
Delhi in this initiative. The telecom industry today needs professionals with
special skills and knowledge and Bharti School will go a long way in creating a
wealth of talent for the industry.”
Bharti
has given a grant of Rs 200 millions to establish the Bharti School, of which
Rs. 100 millions has been spent towards infrastructure support, including
construction of the building, while Rs. 100 millions has been set aside as a
corpus to facilitate smooth functioning of the School.
About Bharti Foundation
Bharti
Foundation was established in 2000, with a vision “To help underprivileged
children and young people of their country realize their potential.” The
Foundation creates and supports programs that bring about sustainable changes,
predominantly in the field of education. Bharti Foundation has set for itself
the goals of improving the quality of primary education for disadvantaged
children and ensure education and training opportunities for youth to help them
realize their potential.
Bharti
Computer Centres is one of the key programs, which aims at improving learning
levels of underprivileged children, using computer-aided learning. The Centres
also provide computer exposure and training to disadvantaged youth in the
communities, in which they operate. Bharti Library and Activity Centres aim at
improving basic reading ability and learning levels of children. Mid-day-meal
program of Bharti Foundation provides mid-day meals to underprivileged children
in Vrindavan. Bharti School of Telecommunication Technology and Management (at
IIT, Delhi) is being set up with a vision “To develop Telecom Leaders through
excellence in education and research”. Bharti Scholarship Scheme has been initiated
to enable financially weak meritorious students pursue higher education.
New Delhi,
India, April 28, 2006: Bharti Airtel Limited (“Bharti” or “the company”) today
announced its un-audited
About Profile
Subject is one of India’s 20.93 million
customers as of end of March ‘06, consisting of more than 19.58 million mobile
customers. The company is the only operator to provide mobile services in all
the 23 circles in India. The
company also provides telephone services and Internet access over DSL in 15
circles. The company complements its mobile, broadband & telephone services
with national and international long distance services. The company also has a
submarine cable landing station at Chennai, which connects the submarine cable
connecting Chennai and Singapore. The company is a part of the consortium,
which jointly owns and has developed the next generation undersea cable system
SEA-ME-WE-4. The company provides reliable end-to-end data and enterprise
services to the corporate customers by leveraging its nationwide fiber optic
backbone, last mile connectivity in fixed-line and mobile circles, VSATs, ISP
and international bandwidth access through the gateways and landing station.
(formerly
known as Bharti Tele-Ventues Limited)
The company is a part of Bharti Enterprises, and is India's
leading provider of telecommunications services. The businesses at
Bharti Airtel have been structured into three individual strategic
business units (SBU’s) - mobile services, broadband & telephone services
(B&T) & enterprise services. The mobile services group provides GSM
mobile services across India in 23 telecom circles, while the B&T business
group provides broadband & telephone services in 90 cities. The
Enterprise services group has two sub-units - carriers (long distance services)
and services to corporates. All these services are provided under the Airtel
brand.
Highlights:
v
Bharti
Tele-Ventures is the “BEST INDIAN CARRIER” at Telecom Asia Awards 2006
v
Bharti
announces un-audited results for the fourth quarter and full year ended March
31, 2006
v
Bharti has
been adjudged as India's 'second best employer' by Hewitt Associates.
v
Bharti,
India’s leading telecom conglomerate, declared country’s best-managed company
by Asiamoney.
Bharti Airtel ranked among Best Performing Asian Companies
Bharti
Airtel, India’s leading telecom service provider, has been ranked 13th among
the best performing Asian companies by the BusinessWeek Magazine in the ‘The
Asia BusinessWeek 50’ list. The Asia BusinessWeek 50 is an annual ranking of
Asia’s best performing companies across all sectors.
The
others in the list include Reliance Industries (17), Infosys (23), China
Petroleum & Chemical (25), Yamaha Motor (45) Mitsubishi Corp (53) and Posco
(70). The companies were ranked using a combination of financial measures for
earnings and sales growth, plus return on assets and other benchmarks.
Companies were evaluated over both one year and three year time frames.
Sunil
Bharti Mittal, Chairman and Managing Director, Bharti Airtel Limited said,
“Getting featured among the Asia’s best companies is a proud moment for all of
us. This highlights our relentless pursuit to create a world-class organisation
that provides best in class services. It has been made possible by the
committed efforts of the entire team at Bharti Airtel.”
This is what BusinessWeek said about Bharti Airtel “The company will spend $2 billion on network expansions and marketing to reach underserved markets in rural areas. That’s serious money—and a step toward Mittal’s broader ambition “to be the most admired brand in India by 2010.” Investors already like what they see. Bharti Airtel delivered 30% total shareholder returns in 2005, and a head-turning 493% over the last three years.”
New
Delhi, India, April 27, 2007:
Bharti
Airtel Limited (“Bharti” or “the company”) today announced its US GAAP results
for its fourth quarter and full year ended March 31, 2007. It has once again
maintained its strong growth momentum.
The
consolidated total revenues for the quarter ended March 31, 2007 of Rs. 53930
millions grew by 58% and EBITDA of Rs. 22410 millions grew by 75% on a year on
year basis. The cash profit from operations of Rs. 21930 millions grew by 82%
over last year. The net profit for the quarter ended March 31, 2007 was Rs.
13530 millions, a growth of 98% over last year.
The
revenues & net profit for the full year ended March 31, 2007 was Rs. 185200
millions and Rs. 42570 millions, a growth of 59% & 89% respectively, on a
year on year basis.
Bharti
had over 39 millions customers, as on March 31, 2007, an increase in the total
customer base of 86%, over the last year and maintained its leadership position
through an improved market share of all India wireless subscribers at 22.9% as
on March 31, 2007, up from 20.4% last year.
Commenting
on the results and performance, Mr.
Sunil Bharti Mittal, Chairman & Managing Director, Bharti Airtel Limited,
said, “The Indian telecom sector has witnessed an unprecedented growth this
year led by the mobile segment. At Bharti Airtel, this has been a year of
accelerated growth and market leadership, and we are delighted to be leading
the telecom revolution in the country. The demand for the telecom services
across all segments remains buoyant and we believe that this growth momentum
can be sustained. We are confident that Bharti Airtel’s professional management
team with enhanced empowerment, backed by world-class product offerings is well
placed to strengthen our leadership position in the market.”
In line with emerging international practice, the Board of
Directors has adopted a rotation policy for statutory and internal auditors for
a maximum tenure of five years and rotation of audit partner every three years.
Accordingly, they have recommended the appointment of S R Batliboi and
Associates, Chartered Accountants, a member firm of Ernst & Young Global as
statutory auditors at the conclusion of the forthcoming annual general meeting
on 2 July 2007 and Ernst and Young as auditors for US GAAP for the financial
year ending 31 March 2008. The Board has also proposed to appoint Price
Waterhouse, Chartered Accountants as internal auditors after conclusion of
their tenure as statutory auditors of the company.
Airtel pioneers 8 Mbps Broadband in India
Category:FY2007-08
10.10.07
Airtel is the first service
provider in India to offer 8 Mbps broadband experience and joins select
operators in the world to provide such high speeds
Airtel broadband customers can
browse multiple windows at the same time- downloading heavy files, view
streaming video, enjoy online gaming, chat, email etc. With 8 Mbps speeds,
Airtel network is IPTV ready.
Bangalore, 10th October 2007: For the first time in India, Airtel brings 8mbps broadband internet access
for its customers. This is a significant landmark in the industry as it brings
to Indian consumers speeds, that will revolutionize their experience and
unleash the true power of the internet. Currently, the speeds on offer range
from 256 Kbps to 4 Mbps.
Launching the service, Mr. Atul Bindal,
President, Broadband & Telephone Services, Bharti Airtel Ltd,
said, “At Airtel, our endeavour is to enhance customer experience significantly
and provide. ‘More Value’. With 8 Mbps, we now offer our customers a truly
world-class broadband experience, wherein our customers would be able to
download heavy files, view streaming video, enjoy in online gaming, etc.
Further, they can browse on multiple windows at the same time without compromising
the performance of any application. This service will ensure that our customers
have a truly world-class browsing experience. With 8 Mbps speed, our network
will also be IPTV ready.”
For instance, Airtel customers will no longer have
to wait for a video to get buffered while watching streaming videos. They would
be able to download a 5 MB music file in 5 seconds flat as compared to 160
seconds on a 256 kbps connection.
Airtel’s 8 Mbps broadband service will initially be
available in Bangalore, Chennai, Pune, Kolkata, Delhi and the NCR, with a
subsequent rollout in Mumbai and Hyderabad, in a few weeks.
Airtel has invested in the back end infrastructure
to deliver these speeds. We already have a Carrier Ethernet Network operational
in Delhi, Bangalore and Chennai. In the next phase Mumbai too would be upgraded
to a CEN. CEN allows not only provisioning of high speed plans to broadband
customers but also delivery of triple play services In the other cities the SDH
network has been upgraded to deliver 4 & 8 mbps speeds. This investment is
a part of Airtel’s ongoing commitment to customer in order to ensure the best
consumer broadband experience at the front end. This allows the company to
introduce new technologies to offer innovative services and faster speeds for
Internet access.
Airtel is already working on multiple fronts to
gives its customers a complete internet experience, from innovative tariffs,
consumer centric features to content.
On the content front Airtel has already tied up
with several content providers such as India Games and Soundbuzz to provide
unlimited gaming, music downloads, education and communication services. Airtel
content offering revolves around the themes of “learn, work and play”.
Further Airtel offers features like NetXpert,
India’s first automated broadband self-care technology and PC Secure, which
offers features like anti-virus and parental control.
On the tariff front it has specific plans for each
consumer segment from duration based plans for beginners to unlimited plans for
the evolved user.
About Bharti Airtel Limited:
Bharti Airtel Limited, a group company of Bharti
Enterprises, is India's leading integrated telecom services provider with an
aggregate of 50 million customers. Bharti Airtel has been rated among the best
performing companies in the world in the BusinessWeek IT 100 list 2007.
Bharti Airtel is structured into three strategic
business units - Mobile services, Broadband & Telephone (B&T) services
and Enterprise services. The mobile business provides mobile & fixed
wireless services using GSM technology across 23 telecom circles. The B&T
business provides broadband & telephone services in 94 cities. The
Enterprise services provide end-to-end telecom solutions to corporate customers
and national & international long distance services to carriers. All these
services are provided under the Airtel brand. Airtel's high-speed optic fibre
network currently spans over 53,000 kms covering all the major cities in the
country. The company has two international landing stations in Chennai that
connects two submarine cable systems - i2i to Singapore and SEA-ME-WE-4 to
Europe.
Media Center
Bharti Airtel participates in a consortium with international companies
to build Unity Cable System linking Asia and US
10,000 Km linear cable system with capacity upto 7.68
Tbps to enhance Trans-Pacific connectivity
New Delhi,
February 26, 2008: Bharti Airtel, India’s leading telecom
services provider, along with five leading international companies has
executed an agreement to build a high-bandwidth undersea fiber-optic cable
linking Asia and the United States. The construction of the new cable system,
known as Unity, will cost an estimated US$ 300 million and will address
broadband demand by providing much needed capacity to sustain the unprecedented
growth in data and Internet traffic between Asia and the United States.
The Unity consortium is a joint
effort by Bharti Airtel (India), Global Transit Ltd. (Malaysia), Google (US),
KDDI Corporation (Japan), Pacnet (Singapore) and SingTel (Singapore). The name
Unity was chosen to signify a new type of consortium, born out of potentially
competing systems, to emerge as a system within a system, offering ownership
and management of individual fiber pairs.
Mr. David Nishball,
President, Airtel Enterprise Services said, “The
partnership in the Unity consortium is yet another important step in our
journey towards meeting our customer’s complete global communication needs.
This investment is in line with our strategy to extend our international
footprint across the globe to provide seamless connectivity to our customers
through partnerships with leading global companies. The Unity cable system will
address the demand for increased bandwidth between Asia and US as more and more
services migrate to an online environment. This partnership will also provide
alternate routes to meet the demands of our customers for increased levels of
network resiliency and redundancy.”
The Unity consortium has
selected NEC Corporation and Tyco Telecommunications to construct and install
the system. Construction will begin immediately, with initial capacity targeted
to be available in the first quarter of 2010.
The Unity cable system will
provide connectivity between Chikura, located off the coast near Tokyo, to Los
Angeles and other West Coast network points of presence. At Chikura, Unity will
be seamlessly connected to other cable systems, further enhancing connectivity
into Asia. The Unity cable system will initially increase Trans-Pacific lit cable
capacity by about 20 percent, with the potential to add up to 7.68 Terabits per
second (Tb/s) of bandwidth across the Pacific.
The Unity cable system will
compliment Bharti Airtel’s existing high bandwidth cable systems in the region.
The company has two international landing stations in Chennai that connects two
submarine cable systems - i2i to Singapore and SEA-ME-WE-4 to Singapore and
Europe. The company has also recently undertaken a series of initiatives to
extend its international footprint and has partnered the Asia America Gateway
cable system to provide the much-needed diversity against traditional routes to
the US, mainly carrying broadband traffic. Earlier this month, it announced the
IMEWE cable - a high-capacity fiber-optic submarine cable that stretches from
India to France via the Middle East.
About Bharti
Airtel Limited:
Bharti Airtel Limited, a group
company of Bharti Enterprises, is India’s leading integrated telecom services
provider with an aggregate of 60 million customers. Bharti Airtel has been
rated among the best performing companies in the world in the BusinessWeek IT
100 list 2007.
Bharti Airtel is structured into
three strategic business units - Mobile services, Telemedia services and
Enterprise services. The mobile business provides mobile & fixed wireless
services using GSM technology across 23 telecom circles. The Telemedia business
provides broadband & telephone services in 94 cities. The Enterprise
services provide end-to-end telecom solutions to corporate customers and national
& international long distance services to carriers. All these services are
provided under the Airtel brand. Airtel’s high-speed optic fibre network
currently spans over 67,000 kms covering all the major cities in the country.
The company has two international landing stations in Chennai that connects two
submarine cable systems - i2i to Singapore and SEA-ME-WE-4 to Europe.
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. 40.29 |
|
UK Pound |
1 |
Rs. 79.97 |
|
Euro |
1 |
Rs. 61.23 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through %)
are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
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 |
|