MIRA
INFORM REPORT
|
Report Date : |
16.10.2008 |
IDENTIFICATION
DETAILS
|
Name : |
DISHNET WIRELESS LIMITED |
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Formerly Known As : |
Dishnet DSL Limited |
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Registered Office : |
5th Floor, Spencer Plaza, 769, Anna Salai, Chennai - 600 002, Tamil Nadu |
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Country : |
India |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
10.03.1998 |
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Com. Reg. No.: |
18-40075 |
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CIN No.: [Company
Identification No.] |
U74999TN1998PLC040075 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHED02195E |
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PAN No.: [Permanent
Account No.] |
AAACD5767E |
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Legal Form : |
A Closely Held Public Limited Liability Company. |
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Line of Business : |
Provider of Internet Service. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
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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 15000000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well – established company having satisfactory track. Trade relations are fair. Financial position is satisfactory. Payments
are usually correct and as per commitment. The company is doing steady business. It can be considered normal for
business dealings at usual trade terms and conditions. Mr. Kamal Khanna, Finance Department, Mr. Venkatram, accountant, Mr. Vikas (Delhi Office)
Accountant and others denied to up-date the details. |
LOCATIONS
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Registered office : |
5th Floor, Spencer Plaza, 769, Anna Salai, Chennai - 600 002, Tamil Nadu, India |
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Tel. No.: |
91 - 44 - 2849 0849 / 24313065 |
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Fax No.: |
91 - 44 - 2849 6769 / 24313036 |
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E-Mail : |
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Website : |
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Head Office : |
No 301 (Old No: 193)
Poonamallee High Road, Kilpauk Chennai 600 010, Tamil Nadu, India |
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Tel. No.: |
91 – 44 - 25324141 |
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Fax No.: |
91 – 44 – 25323131 |
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Branches : |
Madurai Aircel Limited, Aparna Towers, 3rd Floor, 2/3, By Pass Road, Madurai - 625 010. Salem Aircel Limited, Blossom Plaza, 2nd Floor, Four Roads, Salem - 636 007. Coimbatore Aircel Limited, Arthanari Towers, 3rd Floor, No.114, Race Course Road, Coimbatore - 641018. Puducherry Aircel Towers, No. 284, Kamaraj Salai, Puducherry - 605 008. Trichy Aircel Limited, Lakshmi Complex, 2nd Floor, 73B/1, Salai Road, Thillai Nagar, Trichy - 620 018. |
DIRECTORS
|
Name : |
Mr. Dato Jamaludin Bin Ibrahim |
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Designation : |
Director |
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Address : |
247, Jalan Bungor Rosa, Sierramas, 47000 Sungai Buloh, Selangor Ehsan
– 47000, NA, MA |
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Date of Birth/Age : |
03.03.1959 |
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Date of Appointment : |
02.09.2006 |
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Directorship in other companies: |
CIN of Company: U32201TN1994PLC029608 Name of the Company: Aircel Limited Designation: Director CIN of Company: U74999TN1997PLC039395 Name of the Company: Aircel Cellular Limited Designation: Director CIN of Company: U 72900DL2006PTC146401 Name of the Company: South Asia Communications private Limited Designation: Director CIN of Company: U64202DL2006PTC144852 Name of the Company : Deccan Digital Networks Private Limited Designation: Director |
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Name : |
Mr. Chan Kong Chee |
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Designation : |
Director |
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Address : |
3, Jalan TR6/1, Tropicana Golf and Country Club, 47410 Petaling Jaya,
Selangor Darul Ehsan – 47410, NA, MA |
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Date of Birth/Age : |
23.08.1955 |
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Date of Appointment : |
02.09.2006 |
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Directorship in other companies: |
CIN of Company: U32201TN1994PLC029608 Name of the Company: Aircel Limited Designation: Director CIN of Company: U74999TN1997PLC039395 Name of the Company: Aircel Cellular Limited Designation: Director CIN of Company: U 72900DL2006PTC146401 Name of the Company: South Asia Communications private Limited Designation: Director CIN of Company: U64202DL2006PTC144852 Name of the Company : Deccan Digital Networks Private Limited Designation: Director |
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Name : |
Mr. Raghvendra Madhav |
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Designation : |
Director |
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Address : |
A -154, New Friends colony, New Delhi -110 065, Delhi |
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Date of Birth/Age : |
26.05.1961 |
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Date of Appointment : |
02.09.2006 |
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Directorship in other companies: |
CIN of Company: U32201TN1994PLC029608 Name of the Company: Aircel Limited Designation: Director CIN of Company: U74999TN1997PLC039395 Name of the Company: Aircel Cellular Limited Designation: Director |
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Name : |
Mr. Laxman Prasad Agarwal |
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Designation : |
Nominee Director |
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Address : |
B, 3-G, PNB Senior Officers Residential Complex, 8 Under Hill Road,
Civil Lines, New Delhi – 110 054, Delhi, India |
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Date of Birth/Age : |
05.11.1949 |
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Date of Appointment : |
06.01.2006 |
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Name : |
Mr. R Chinna Kannan |
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Designation : |
Chief Executive officer |
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Name : |
Mr. Vijay Bhatkar |
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Designation : |
Chairman and Whole Time Director |
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Address : |
29 Vrindavan Co-operative Housing Society Pashan Road, Pune – 411 008,
Pune – 411 008, Maharashtra |
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Date of Birth/Age : |
11.10.1946 |
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Date of Appointment : |
18.03.1999 |
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Name : |
Mr. V Srinivasan |
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Designation : |
Chief Executive Officer and Whole Time Director |
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Address : |
2 B, K G Central Court, 9-11, Jagadambal Street, T Nagar, Chennai –
600 017, Tamil Nadu |
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Date of Birth/Age : |
15.05.1957 |
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Date of Appointment : |
27.11.2002 |
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Name : |
Mr. Sriram Chandrasekar |
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Designation : |
Chief Operating Officer cum Director |
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Address : |
No. B -1, Saikrupa Apartments, 2nd floor, No. 5, Sundaram
Salai, Raja Annamalaipuram, Chennai – 600 028, Tamil Nadu 600 028 |
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Date of Birth/Age : |
05.06.1966 |
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Date of Appointment : |
01.09.2003 |
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Name : |
Mr. Rohit Chandra |
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Designation : |
Director |
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Date of Birth/Age : |
09.07.1964 |
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Date of Appointment : |
10.05.2004 |
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Name : |
Mr. A Subramaniam |
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Designation : |
Director |
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Address : |
D -2, 3rd Floor, Sree Kalki Apartments, 21, Bazullah road,
T Nagar, Chgennai – 600 017, Tamil Nadu |
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Date of Birth/Age : |
02.02.1945 |
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Date of Appointment : |
10.03.1998 |
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Name : |
Mr. V Selvaraj |
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Designation : |
Director |
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Address : |
33, Chokalingam Nagar, Behind DMS office, Gopalapuram, Chennai – 600
086, Tamil Nadu |
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Date of Birth/Age : |
04.08.1939 |
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Date of Appointment : |
28.02.2000 |
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Name : |
Mr. Charles Mcminn |
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Designation : |
Director |
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Address : |
24627, Olive Tree lane, Los Altos Hills, CA -94024, USA, California,
USA |
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Date of Birth/Age : |
02.10.1952 |
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Date of Appointment : |
28.02.2000 |
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Name : |
Mr. Glen F Post III |
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Designation : |
Director |
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Address : |
100, Century Park Drive Monroe, Louisiana - 71203, USA |
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Date of Birth/Age : |
04.10.1952 |
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Date of Appointment : |
28.02.2000 |
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Name : |
Mr. Stacey W Goff |
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Designation : |
Alternate director |
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Address : |
100, Century Park Drive Monroe, Louisiana - 71203, USA |
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Date of Birth/Age : |
17.12.1965 |
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Date of Appointment : |
07.07.2000 |
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Name : |
Mr. T Sivakumar |
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Designation : |
Director |
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Address : |
Flat F, Nu Tech Lakshmi Nilayam, 27/15, Trust Puram II Cross
Street, Chennai – 600 024, Tamil Nadu |
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Date of Birth/Age : |
24.02.1963 |
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Date of Appointment : |
18.11.2002 |
KEY EXECUTIVES
|
Name : |
Mr. R Chinna Kannan |
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Designation : |
Chief Executive Officer |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
|
No. of Shares |
|
Mr. R Chinnakannan |
|
10 |
|
Mr. A Subramaniam |
|
24010 |
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Mr. K V P Baskaran |
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10 |
|
M/s Sterling Infotech Limited |
|
23574030 |
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Dr Vijay P Bhatkar |
|
24000 |
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Mr. V Srinivasan |
|
24000 |
|
M/s Siva limited |
|
2893820 |
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M/s Westgrove International Holdings Limited |
|
2000000 |
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M/s I Q Investments Limited |
|
1258250 |
Equity Shares Breakup (Percentage of Total Equity):
|
Sr No. |
Category |
Percentage |
|
1 |
Bodies corporate |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Provider of Internet Service. |
GENERAL
INFORMATION
|
Bankers : |
Il and FS Trust Company limited Address: IL and FS financial Centre, plot No. C22 G block Bandra –
Kurla Complex, Bandra (East), Mumbai – 400 051, Maharashtra, India Email: t_r_biju@ilfsinida.com |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Price Waterhouse Chartered Accountants |
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Address : |
32, Khader Nawaz Khan Road, Nunganbakkam, Chennai – 600 006, Tamil
Nadu, India |
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Holding Company: |
· Aircel Limited · Sterling Infotech Limited |
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Associates/Subsidiaries : |
· Aircel Televentures Limited · Aircel Limited · Aircel Cellular Limited · Barista Coffee Company Limited · Dishnet Wireless (Mauritius) limited · Aiwo Limited · Fresh and honest café Limited · Siva Compulink Limited · Sterling Futures and Holidays Limited · IQ Investments Limited · Sterling SAT Television Limited · Sterling ETH Trust · Westgrove International Holdings Limited · Sterling Telecom and Net system Limited · Siva Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
75000000 |
Equity shares |
Rs. 10/- each |
Rs. 750.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
29798130 |
Equity shares |
Rs.10/- each |
Rs.297.981
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.12.2006 [
9 months] |
31.03.2006 [12 months] |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
297.981 |
297.981 |
297.981 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
3082.131 |
3822.666 |
3819.449 |
|
|
4] (Accumulated Losses) |
[233.049] |
0.000 |
0.000 |
|
|
NETWORTH |
3147.063 |
4120.647 |
4117.430 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
3341.877 |
2653.634 |
2151.238 |
|
|
2] Unsecured Loans |
5962.600 |
2700.000 |
0.000 |
|
|
TOTAL BORROWING |
9304.477 |
5353.634 |
2151.238 |
|
|
DEFERRED TAX LIABILITIES |
355.025 |
212.468 |
88.768 |
|
|
|
|
|
|
|
|
TOTAL |
12806.565 |
9686.749 |
6357.436 |
|
|
|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
6875.413 |
4126.759 |
1736.884 |
|
|
Capital work-in-progress |
6333.672 |
2283.115 |
1023.192 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
645.544 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
84.563
|
12.517
|
0.000 |
|
|
Sundry Debtors |
151.471
|
275.622
|
78.994 |
|
|
Cash & Bank Balances |
4968.583
|
7553.817
|
5188.255 |
|
|
Other Current Assets |
24.876
|
56.594
|
0.000 |
|
|
Loans & Advances |
1149.437
|
432.774
|
709.777 |
|
Total
Current Assets |
6378.930
|
8331.324 |
5977.026 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
6591.807
|
4979.676
|
3025.211 |
|
|
Provisions |
189.643
|
65.773
|
|
|
Total
Current Liabilities |
6781.450
|
5045.449 |
3025.211 |
|
|
Net Current Assets |
[402.520]
|
3276.875
|
2951.816 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
12806.565 |
9686.749 |
6357.436 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.12.2006 [
9 months] |
31.03.2006 [12 months] |
31.03.2005 |
|
|
|
|
|
|
|
|
Sales Turnover |
2067.146 |
1552.070 |
1558.454 |
|
|
Other Income |
337.849 |
287.368 |
257.934 |
|
|
Total Income |
2404.995 |
1839.438 |
1816.388 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
[822.068] |
147.955 |
747.979 |
|
|
Provision for Taxation |
151.515 |
3.217 |
301.491 |
|
|
Profit/(Loss) After Tax |
[973.583] |
144.738 |
446.488 |
|
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
|
Capital Goods |
0.000 |
0.000 |
87.923 |
|
|
Inventories and Maintenance Spares |
0.000 |
0.000 |
30.961 |
|
Total Imports |
0.000 |
0.000 |
118.884 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Cost of goods sold |
0.000 |
0.000 |
50.759 |
|
|
Purchases made for re-sale |
46.724 |
9.580 |
0.000 |
|
|
Operating and administrative Expenses |
0.000 |
0.000 |
774.492 |
|
|
Personnel Expenses |
0.000 |
0.000 |
96.460 |
|
|
Selling and Marketing expenses |
0.000 |
0.000 |
91.365 |
|
|
Salaries, Wages, Bonus, etc. |
320.898 |
301.470 |
0.000 |
|
|
Managerial Remuneration |
0.965 |
21.682 |
0.000 |
|
|
Payment to Auditors |
4.263 |
1.000 |
0.000 |
|
|
Interest and finance charges |
298.353 |
136.408 |
21.183 |
|
|
Insurance Expenses |
2.306 |
2.403 |
0.000 |
|
|
Power & Fuel |
197.077 |
66.055 |
0.000 |
|
|
Depreciation & Amortization |
778.131 |
376.670 |
34.150 |
|
|
Other Expenditure |
1.578 |
776.215 |
0.000 |
|
Total Expenditure |
3227.063 |
1691.483 |
1068.409 |
|
KEY RATIOS
|
PARTICULARS |
|
31.12.2006 [
9 months] |
31.03.2006 [12 months] |
31.03.2005 |
|
|
|
|
|
|
|
PAT / Total Income |
(%) |
40.48
|
7.86 |
0.02 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
[39.76]
|
0.09 |
47.99 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
[4.19]
|
1.00 |
8.56 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
[0.26]
|
0.03 |
0.18 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
5.11
|
2.52 |
1.25 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.94
|
1.65 |
1.97 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY and
BUSINESS:
A) Significant
Accounting Policies and Note to Accounts:
Background
Dishnet Wireless limited (‘Dishnet’ or the Company) formerly known as Dishnet
DSL Limited, a subsidiary of sterling Infotech Limited was incorporated under
the Companies act, 1956 in March 1998 with its registered office at Chennai
The company has been in the business of providing commercial Internet
access services for which the Company has obtained an all India Category – A
license from the Department of Telecommunication (DOT). The license is for a
period of 15 years and is renewable at the discretion of (DOT. The Company
commenced its Internet service operations in March 1999. During April 2002, the
company has obtained an all India to operate Internet Telephony services from
the Department of Telecommunication DOT).
The company has hived off its Wireline ISP Business on 30 th arch 2004
by way of Slump sale to Videsh Sanchar Nigam Limited. During the current year,
the company has forayed into provision of Broadband Wireless Internet access
using Wi – Max and Wi –Fi technologies.
The company is also into Project Management Services in
Telecommunications
During the year, the company has obtained licenses under Unified access
Services (UAS) issued by the Department of telecommunications, Government of
India fro seven Telecom circles namely West Bengal, Bihar, Orissa, North East,
Assam, Jammu Kashmir and Himachal Pradesh. The license is for a period of 20
years and is renewable at the discretion of Department of telecommunication
(DOT) during the year; the company’s GSM division commenced commercial
operations, in two Telecom circles, namely State of Assam and Jammu and Kashmir,
on 30th and 31st March 2005, respectively.
Revenue
Recognition:
Telecom
Services Group Business
a)
Revenue from project management services is recognized proportionately
to the extent of completed sites, using percentage of completion method.
b)
Revenue from vendor negotiation contracts is recognized on a pro data
basis expected period of rendering such services.
Cellular
operations:
a)
Postpaid Schemes:
Revenue from airtime and rentals is recognized
during the period in which the service is rendered activation charges as income
when the subsidiaries are activated on the network.
b)
Enterprises Wireless Internet Services
Business:
Revenue from sale of internet Access Keys is
recognized based on the usage or validity period whichever is earlier.
Enterprise Wireless Internet
Services Business:
Revenue from sale of Internet access Keys is
recognized based on the usage or validity period whichever is earlier
FIXED ASSTES:
· Tangible assets
· Freehold Land
· Building
· Building on Leasehold
· Plant and Machinery
· Office Equipment
· Furniture and fitting
· Motor Vehicles
· Intangible assets
· System software
· Indefeasible Right to use Bandwith Capacity
· Entry fee towards license for cellular Operations
FORM 8:-
|
Corporation identity number or foreign company registrations number of
the company |
U74999TN1998PLC040075 |
|
Name of the company |
DISHNET WIRELESS
LIMITED |
|
Address |
5TH
Floor Spencer Plaza, 769 Anna Salai, Chennai – 600 002, Tamil Nadu, India |
|
This Form is for |
Modification of charge |
|
Type of Charges |
· Immovable property · Any interest in immovable property · Floating charge |
|
Particular of the charge holder
|
Il and FS Trust Company limited Address: IL and FS financial Centre, plot No. C22 G block Bandra –
Kurla Complex, Bandra (East), Mumbai – 400 051, Maharashtra, India Email: t_r_biju@ilfsinida.com
|
|
Nature or description of the instrument creating charge |
· Deed of hypothecation over movables dated November 4, 2006 · Equitable Mortgage by deposit of title deeds dated November 2, 2006 |
|
Date of the instrument creating charge |
04.11.2006 |
|
Amount Secure by the charge |
Rs.12222.000 millions |
|
Brief of the principal terms and conditions and extent and operation
of the charge |
Rate of Interest; Not Applicable Terms of repayment: Not applicable Margin: Not applicable Extent and operation of the charge: The charge operates as security by way of first pari passu charge and
mortgage among the rupee lenders and guarantees for the repayment of the
principal amount of the rupee Loan facility / letter of credit and guaranty
facility including interest, charges cost and expenses and all other amount
payable Others: Not applicable |
|
Short particulars of the
Property charged |
All the movable and immovable properties described in the schedule of
the deeds (enclosed) |
|
Particulars of the present modification |
In addition to the indenture of mortgage over the movable and
immovable properties created in favour of the security trustee a deed of
hypothecation is created over the movable property and mortgage by way of
deposit of title deeds over the immovable property is created in favour of
the security trustee for securing the term loan facilities and the guarantees
facilities availed by the company |
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.48.43 |
|
UK Pound |
1 |
Rs.84.54 |
|
Euro |
1 |
Rs.65.91 |
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 |
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 |
|
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 |
|