MIRA
INFORM REPORT
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Report Date : |
22.11.2008 |
IDENTIFICATION DETAILS
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Name : |
LOOP TELECOM PRIVATE LIMITED |
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Formerly Known As : |
SHIPPING STOP DOT COM PRIVATE LIMITED |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
12.03.1997 |
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Com. Reg. No.: |
085754 |
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CIN No.: [Company
Identification No.] |
U72200DL1997PTC085754 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUML06829E |
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PAN No.: [Permanent
Account No.] |
AAGCS0351R |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Subject offers Wireless Phone Telecommunications Services. |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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Maximum Credit Limit : |
USD 17770000 |
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Status : |
New company |
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Payment Behaviour : |
Unknown |
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Litigation : |
Clear |
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Comments : |
Subject is a new BPL Mobile Group Company. Subject has got few licenses to provide telecom services in various states.
Trade relations are fair. No payment are available. Initially, the company can be considered for normal business dealings
with slight caution. |
LOCATIONS
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Registered Office : |
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E-Mail : |
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Corporate Office : |
Essar Tower ‘B’ , Penninsula Techno Park, LBS Marg, Kurla (West), Near to Kurla Bus Depot,
Mumbai – 400 070, Maharashtra, India |
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Tel. No.: |
91-22-67335000 |
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Fax No.: |
91-22-67082198 |
DIRECTORS
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Name : |
Mr. Madan Mundhra |
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Designation : |
Director |
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Address : |
2nf Floor, Pleasant Park, J.B. Nagar, Andheri (East), Mumbai – 400
059, |
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Date of Birth/Age : |
15.01.1964 |
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Date of Appointment : |
22.08.2005 |
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Date of Ceasing : |
16.08.2007 |
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Name : |
Mr. Girish Sathe |
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Designation : |
Director |
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Address : |
2, Neelkanth Deep, Bhaskar Colony, Naupada, Thane – 400 607, |
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Date of Birth/Age : |
16.08.1970 |
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Date of Appointment : |
10.11.2005 |
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Date of Ceasing : |
16.08.2007 |
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Name : |
Mr. V. Ganesan |
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Designation : |
Director |
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Address : |
2/ 501, Surya Enclave, Opposite Tulsidham, Thane – 400 610, |
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Date of Birth/Age : |
06.07.1966 |
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Date of Appointment : |
02.09.2006 |
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Name : |
Mr. Ajay Madan |
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Designation : |
Director |
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Address : |
Flat No.1, Sonmerg Apartments, 67 B, |
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Date of Birth/Age : |
05.03.1951 |
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Date of Appointment : |
16.08.2007 |
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Name : |
Mr. Subramaniam Somasundaram |
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Designation : |
Director |
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Address : |
Flat No.62, |
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Date of Birth/Age : |
28.11.1960 |
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Date of Appointment : |
16.08.2007 |
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Name : |
Ms. Sangeeta Lakhi |
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Designation : |
Director |
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Address : |
7/ 709, Supriyha Apartments, 4th Road, Parsee Colony,
Mumbai – 400 014, |
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Date of Birth/Age : |
18.01.1969 |
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Date of Appointment : |
16.08.2007 |
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Name : |
Mr. Ashok Tyagi |
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Designation : |
Director |
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Address : |
E – 130, Greater Kailash, |
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Name : |
Mr. Tirunvelli Vishwanathan |
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Designation : |
Director |
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Address : |
E – 22, II Floor. Poorvi Marg, Vasant Vihar, |
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Name : |
Mr. Sanjay Mehta |
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Designation : |
Additional Director |
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Date of Appointment : |
07.02.2001 |
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Name : |
Mr. Rajiv Agarwal |
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Designation : |
Additional Director |
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Date of Appointment : |
07.02.2001 |
KEY EXECUTIVES
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Name : |
Mr. Durgesh S. Dingankar |
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Designation : |
Secretary |
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Address : |
17, Anandashram Colony, B Cabin, Shivaji Nagar, Naupada, Thane – 400
602, |
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Date of Birth/Age : |
07.03.1981 |
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Date of Appointment : |
16.10.2007 |
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Date of Ceasing : |
12.11.2007 |
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Name : |
Ms. Priyadarshi Siddhartha |
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Designation : |
Secretary |
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Address : |
Flat No.1204, D Wing, |
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Date of Birth/Age : |
07.03.1981 |
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Date of Appointment : |
11.12.2007 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2008
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Names of Shareholders |
No. of Shares |
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BPL Communications Limited |
63700000 |
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BPL Mobile Communications Limited |
66948310 |
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S. Subramaniam and BPL Mobile Communications Limited |
1690 |
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Total |
130650000 |
As on 30.06.2008
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Equity Share Breakup |
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Percentage of Holding |
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Category |
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Bodies
corporate |
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100.00 |
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Total |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Subject offers Wireless Phone Telecommunications Services. |
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Products : |
Telecom |
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GENERAL INFORMATION
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Bankers : |
Not Available |
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Banking
Relations : |
Unknown |
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Auditors : |
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Name : |
A.P. Rajagopalan and Company Chartered Accountants |
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Address : |
No.8, 1st Floor, Neelkanth Shopping Arcade, Mumbai – 400
071, |
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Holding Company : |
BPL Mobile Communications Limited CIN No.: U29299KL1975PLC002757 Karthik Financial Services Limited CIN No.: U67190TN1995PLC029804 |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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131000000 |
Equity Shares |
Rs.10/- each |
Rs.1310.000 millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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130650000 |
Equity Shares |
Rs.10/- each |
Rs.1306.500
millions |
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Out of the above 66950000 are held by BPL Mobile
Communications Limited, the holding company along with its nominee, Nil by
Santa Trading Private Limited, the ultimate holding company and 63700000 are
held by BPL Communications Limited, subsidiary of Santa Trading Private
Limited.
Of the total equity shares 124800000 have been
issued as Bonus Shares by capitalizing reserves.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
1306.500 |
51.500 |
51.500 |
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2] Share Application Money |
2198.690 |
0.000 |
0.000 |
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3] Reserves & Surplus |
147.100 |
5.600 |
5.600 |
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4] (Accumulated Losses) |
(98.035) |
(1.268) |
(0.557) |
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NETWORTH |
3554.255 |
55.832 |
56.543 |
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LOAN FUNDS |
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1] Secured Loans |
7325.430 |
0.000 |
0.000 |
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2] Unsecured Loans |
200.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
7525.430 |
0.000 |
0.000 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
11079.685 |
55.832 |
56.543 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
14661.490 |
24.397 |
0.000 |
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Capital work-in-progress |
135.863 |
0.000 |
0.000 |
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INVESTMENT |
0.000 |
31.581 |
56.588 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
0.000
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0.000 |
0.000 |
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Sundry Debtors |
1183.436
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0.000 |
0.000 |
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Cash & Bank Balances |
1554.970
|
0.004 |
0.353 |
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Other Current Assets |
143.901
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0.000 |
0.000 |
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Loans & Advances |
0.000
|
0.000 |
0.000 |
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Total
Current Assets |
2882.307
|
0.004 |
0.353 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
6599.975
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0.150 |
0.398 |
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Provisions |
0.000
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0.000 |
0.000 |
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Total
Current Liabilities |
6599.975
|
0.150 |
0.398 |
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Net Current Assets |
(3717.668)
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(0.146) |
(0.045) |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
11079.685 |
55.832 |
56.543 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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Profit on sale of Mutual Fund Units |
10.593 |
0.000 |
0.000 |
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Total Income |
10.593 |
0.000 |
0.000 |
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Profit/(Loss) Before Tax |
(93.167) |
(0.711) |
(0.396) |
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Provision for Taxation |
3.601 |
-- |
-- |
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Profit/(Loss) After Tax |
(96.768) |
(0.711) |
(0.396) |
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Expenditures : |
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Amortization of License Fees |
58.392 |
0.668 |
0.000 |
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Interest on Inter Corporate Deposit |
36.878 |
0.000 |
0.000 |
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Professional Charges |
0.002 |
0.005 |
0.013 |
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Filing Fees |
8.341 |
0.020 |
0.377 |
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Audit Fees |
0.109 |
0.011 |
0.004 |
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Bank Charges |
0.001 |
0.007 |
0.000 |
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Depository Fees |
0.022 |
0.000 |
0.000 |
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Rates and taxes |
0.015 |
0.000 |
0.000 |
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Preliminary Expense W/off |
0.000 |
0.000 |
0.002 |
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Total Expenditure |
103.760 |
0.711 |
0.396 |
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KEY RATIOS
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PARTICULARS |
|
31.03.2008 |
31.03.2007 |
31.03.2006 |
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PAT / Total Income |
(%) |
(913.51)
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NA |
NA |
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Net Profit Margin (PBT/Sales) |
(%) |
(879.51)
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NA |
NA |
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Return on Total Assets (PBT/Total Assets} |
(%) |
(0.53)
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(1.27) |
(0.70) |
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Return on Investment (ROI) (PBT/Networth) |
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(0.03)
|
(0.01) |
(0.01) |
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Debt Equity Ratio (Total Liability/Networth) |
|
3.97
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0.00 |
0.01 |
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Current Ratio (Current Asset/Current Liability) |
|
0.44
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0.03 |
0.89 |
LOCAL AGENCY FURTHER INFORMATION
OPERATIONS:
Unified Access
Service License
The members would be aware that the company has been pursuing opportunities
in the field of telecommunication services. The Directors informed that the
Company has been granted Unified Access Service License (“UASL”) for all the 21
service areas. The Company has been allocated spectrum for 5 circles viz.,
Tamilnadu, Kerala, Andhra Pradesh, Orissa and Karnataka. The services in
respect of the above five circles are expected to be rolled out in the coming
year. The spectrum allocation for the rest of the service areas is awaited and
the services in these areas are expected to be rolled out within a year of
allocation of spectrum. It is estimated that investment approximately to the
tune of Rs.30000 millions would be required for the above operations. The
company also holds International Long Distance and National Long Distance
License.
Change in
ownership:
During the year, BPL Mobile Communications Limited (BMCL), a cellular
mobile services provider in Mumbai acquired the entire equity stake in the
Company. By virtue of such acquitting by BMCL, the company became the subsidiary
of BMCL. As of Balance Sheet date, BMCL holds 51% equity stake in the company.
Santa Trading Private Limited is the ultimate holding company.
Change of name:
The name of the company was changed to Loop Telecom Private Limited
w.e.f. September 21, 2007 to get it in line with the main activities.
Additional
Capital:
To meet the net worth criteria stipulated under the guidelines issued by
Department of Telecommunication with respect to UASL, the Company made
preferential and Bonus issue of equity shares during the year.
NEWS:
01 Sep 2008
Loop Telecom has reportedly roped in former
Hutchison Essar Senior Executive, Rajiv Sawhney to head its business. Sawhney currently
serves as the President of Hutch
Loop Telecom has received pan-India licences and is now awaiting
start-up spectrum to launch operations. The company is owned by people close to
the Essar Group.
It is in news offlate due to differences between Vodafone and Essar as
Vodafone alleges that Essar’s move to have stake in loop Telecom is violation
of shareholders agreement between the two companies and also violation of the
policies and regulation of the country.
Loop Telecom in talks
to sell majority stake
4 Jun 2008, 0045 hrs IST, Boby Kurian and George Smith Alexander, TNN
BANGALORE/MUMBAI: Ruias of Essar, Vodafone's JV partner, are in play to cut a new telecom deal. Loop Telecom, a subsidiary of BPL Mobile in which the Ruias of Essar have a 9.9% stake, has initiated talks with international telco giants to sell controlling stake, valuing the enterprise at around $3 billion.
Sources said Middle East telecom giants Mobile
Telecommunications Co (Zain) of
When contacted, BPL Mobile declined to comment. Sources said two investment
banks have been mandated to scout for a partner.
Incidentally, banking sources said Essar may also look at the option of
combining its stake in BPL Mobile, which operates in the lucrative Mumbai
circle. This is interesting as BPL Mobile’s majority shareholding is under
arbitration following a dispute with the Vodafone JV.
“BPL figures in early dialogue with potential suitors, but it’s not clear as to
how it will be structured as part of the Loop transaction,” a source said,
while explaining that the final valuation of Essar’s standalone telecom
interests would depend on the structure they put before the investors.
Sectoral analysts said
The list excludes other ongoing deals involving established players like Tata
Teleservices and Spice Telecom. ET has
already reported that Etisalat has emerged as a strong front-runner to take
8-10% stake in Tata Tele for about $1 billion. And it is the Middle East telcos
that lead the list of foreign players seeking entry into
The global telcos are seen exploring most of the potential deals on offer.
Crowded
telecom space becomes over-crowded, needs consolidation
Already crowded telecom
space is becoming over crowded - 6 more operators will join the scene. Though
Bharti in GSM and Reliance in CDMA dominate the space, the new operators will
add to the competition. Indian telecom industry is seeing an explosive growth
with 9.22 million new mobile subscriptions
in July. This would take the total to 305.24 million. Total telephone
connections stand at 343.87, which is a tele-density of 29.83%. 1 in 3 Indians have access
to a phone.
6 new operators who were
given start-up spectrum are:
- Unitech Wireless (22 circles): Sold 49%
stake to telecom Italia valued at $3billion
- Shyam Telelink :
- Swan telecom (14 circles): Sold 45%
stake to Eilisat (UAE based) for $900 million.
- Datacom (JV of Dhoot of Videocon and Mahendra
Nahata)
- Loop Telecom (owned by BPL Telecom)
- Stel
Loop Telecom Hires Head Honcho; In Talks With Telenor, Zain
By Nikhil Pahwa
⋅ September 2, 2008 ⋅
Rajiv
Sawhney, the President Director at Hutchison Telecom, has been roped in to head
Loop Telecom, reports the Economic
Times.
Loop Telecom opens
talks with Zain and Telenor
Indian news source Business
Standard is reporting that two international telecoms groups, Kuwait-based Zain
and
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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.50.03 |
|
|
1 |
Rs.74.42 |
|
Euro |
1 |
Rs.62.71 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
-- |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
-- |
|
--PROFITABILIRY |
1~10 |
-- |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
-- |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
28 |
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 |
|