MIRA
INFORM REPORT
|
Report Date : |
05.01.2011 |
IDENTIFICATION DETAILS
|
Name : |
GTL LIMITED |
|
|
|
|
Registered
Office : |
‘Global’ Vision “Electronic Sadan No. II, MIDC, TTC, Industrial Area,
Mahape, Navi Mumbai – 400710, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2010 |
|
|
|
|
Date of
Incorporation : |
23.12.1987 |
|
|
|
|
Com. Reg. No.: |
045657 |
|
|
|
|
CIN No.: [Company Identification
No.] |
L99999MH1987PLC045657 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMG08406G |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACG3742L |
|
|
|
|
Legal Form : |
Public Limited Liability Company. Company’s Shares are Listed In Stock Exchange |
|
|
|
|
Line of Business
: |
Network Service Provider |
RATING & COMMENTS
|
MIRA’s Rating : |
A (46) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 46000000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Slow But Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established company having fine track. Financial position
of the company appears to be sound. Fundamentals are strong and healthy.
Trade relations are reported as fair. Business is active. Payments are
reported as slow but correct. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INFORMATION PARTED BY
The Management non cooperative.
LOCATIONS
|
Registered Office : |
‘Global’ Vision “Electronic Sadan No. II, MIDC, TTC, Industrial Area, Mahape,
Navi Mumbai – 400710, |
|
Tel. No.: |
91-22-27684111/27612929 |
|
Fax No.: |
91-22-27689990 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
412, Janmabhoomi Chambers, 29, W. H. Marg, Ballard Estate, Mumbai –
400038, |
|
Tel. No.: |
91-22-22613010 |
|
Fax No.: |
91-22-22619649 |
DIRECTORS
As On 31.03.2010
|
Name : |
Mr. Manoj G. Tirodkar |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Mr. Sadanand D. Patil |
|
Designation : |
Senior Director |
|
|
|
|
Name : |
Mr. Prof. S.C. Sahasrabudhe |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Dipak Kumar Poddar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Ayyar. T.N.V. |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Vinod Sethi |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Prof. Shamkant B. Navathe |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Charudatta K. Naik |
|
Designation : |
Whole time Director |
|
|
|
|
Name : |
Mr. Vijay M. Vij |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Milind Bapat |
|
Designation : |
Sr. Vice President – Finance |
|
|
|
|
Name : |
Mr. N. Balasubramanian |
|
Designation : |
Additional Director |
|
|
|
|
Name : |
Mr. S. K. Roy |
|
Designation : |
Whole Time Director and COO |
KEY EXECUTIVES
|
Name : |
Mr.
Vidyadhar A. Apte |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. L. Y. Desai |
|
Designation : |
Deputy Chief Operating Officer |
|
|
|
|
Name : |
Mr. H.K. Gohil |
|
Designation : |
President |
|
|
|
|
Name : |
Mr. Pinakin Gandhi |
|
Designation : |
Vice President |
|
|
|
|
Name : |
Mr. Rahul Desai |
|
Designation : |
Vice President |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As On 30.06.2010
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
346,673 |
0.36 |
|
|
50,752,526 |
52.47 |
|
|
51,099,199 |
52.83 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
51,099,199 |
52.83 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
1,436,664 |
1.49 |
|
|
106,993 |
0.11 |
|
|
1,322,259 |
1.37 |
|
|
9,654,645 |
9.98 |
|
|
12,520,561 |
12.94 |
|
|
|
|
|
|
19,088,551 |
19.73 |
|
|
|
|
|
|
6,679,423 |
6.91 |
|
|
2,463,985 |
2.55 |
|
|
4,872,746 |
5.04 |
|
|
250,305 |
0.26 |
|
|
4,311,421 |
4.46 |
|
|
311,020 |
0.32 |
|
|
33,104,705 |
34.23 |
|
Total Public shareholding (B) |
45,625,266 |
47.17 |
|
Total (A)+(B) |
96,724,465 |
100.00 |
|
(C) Shares held by Custodians and against which Depository
Receipts have been issued |
- |
- |
|
Total (A)+(B)+(C) |
96,724,465 |
- |
(1)
Indian
Individuals
/ Hindu Undivided Family
Individual
shareholders holding nominal share capital up to Rs. 0.100 millionBUSINESS DETAILS
|
Line of Business : |
Network Service Provider |
||||||
|
|
|
||||||
|
Products : |
|
||||||
|
|
|
GENERAL INFORMATION
|
No. of Employees : |
2000 (Approximately) (Confirmed
by the operator) (Denied to disclose her name) |
||||||||||||||||||
|
|
|
||||||||||||||||||
|
Bankers : |
International
|
||||||||||||||||||
|
|
|
||||||||||||||||||
|
Facilities : |
* Payable within One Year Rs. Nil (Rs. Nil) |
|
|
|
|
Banking
Relations : |
Satisfactory |
|
|
|
|
Auditors : |
|
|
Name : |
Godbole Bhave and Company Chartered Accountant |
|
Address : |
|
|
|
|
|
Name : |
Yeolekar and Associates Chartered Accountant |
|
|
|
|
Fellow Subsidiaries (Subsidiaries of GTL International Limited) : |
|
|
|
|
|
Associates : |
|
|
|
|
|
Subsidiaries : |
|
CAPITAL STRUCTURE
As On 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
120000000 |
Equity Shares |
Rs. 10/- each |
Rs. 1200.000 Millions |
|
2500000 |
Preference Shares |
Rs. 10/- each |
Rs. 250.000 Millions |
|
|
Total |
|
Rs. 1450.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
96724465 |
Equity Shares |
Rs. 10/- each |
Rs. 967.245 Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
967.245 |
947.231 |
945.741 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
10455.214 |
8912.850 |
8290.519 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
11422.459 |
9860.081 |
9236.260 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
23735.000 |
10112.500 |
7018.186 |
|
|
TOTAL BORROWING |
23735.000 |
10112.500 |
7018.186 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
35157.459 |
19972.581 |
16254.446 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
2878.814 |
2239.937 |
2222.488 |
|
|
Capital work-in-progress |
994.262 |
1464.469 |
196.150 |
|
|
|
|
|
|
|
|
INVESTMENT |
8201.388 |
7283.592 |
7379.289 |
|
|
DEFERREX TAX ASSETS |
222.228 |
253.065 |
269.619 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1943.531
|
2462.740 |
1932.354 |
|
|
Sundry Debtors |
2134.159
|
3003.200 |
2854.897 |
|
|
Cash & Bank Balances |
13283.534
|
8914.391 |
6139.721 |
|
|
Other Current Assets |
431.201
|
0.000 |
0.000 |
|
|
Loans & Advances |
13225.602
|
5077.951 |
4859.840 |
|
Total
Current Assets |
31018.027
|
19458.282 |
15786.812 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1957.259
|
1989.896 |
1890.760 |
|
|
Other Current Liabilities |
5576.501
|
8193.871 |
7023.423 |
|
|
Provisions |
623.500
|
542.996 |
685.729 |
|
Total
Current Liabilities |
8157.260
|
10726.764 |
9599.912 |
|
|
Net Current Assets |
22860.767
|
8731.518 |
6186.900 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
35157.459 |
19972.581 |
16254.446 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
15513.292 |
14509.043 |
14333.271 |
|
|
|
Other Income |
20.993 |
17.764 |
10.785 |
|
|
|
TOTAL (A) |
15534.285 |
14526.807 |
14344.056 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of sales and services |
10328.016 |
10149.288 |
10078.346 |
|
|
|
Cost of delivery |
1276.263 |
862.681 |
808.248 |
|
|
|
Administration and other expenses |
1105.055 |
937.843 |
838.082 |
|
|
|
Extra ordinary item |
0.000 |
100.000 |
0.000 |
|
|
|
Prior period item |
(10.341) |
83.361 |
72.042 |
|
|
|
Selling and marketing expenses |
148.055 |
139.717 |
315.570 |
|
|
|
Profit/ loss on sale of business |
0.000 |
0.000 |
(218.880) |
|
|
|
TOTAL (B) |
12847.048 |
12272.890 |
11893.408 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2687.237 |
2253.917 |
2450.648 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
230.232 |
691.942 |
725.854 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2457.005 |
1561.975 |
1724.794 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
480.063 |
434.122 |
458.797 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1976.942 |
1127.853 |
1265.997 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
393.337 |
213.492 |
53.068 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
1583.605 |
914.361 |
1212.929 |
|
|
|
|
|
|
|
|
|
Add |
EXCESS PROVISION
OF EQUITY DIVIDEND AND TAX ON DIVIDEND WRITTEN BACK |
0.000 |
0.000 |
17.061 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1962.078 |
1500.181 |
822.132 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
200.000 |
120.000 |
220.000 |
|
|
|
Equity Dividend |
299.290 |
284.169 |
283.722 |
|
|
|
Dividend Distribution Tax |
50.864 |
48.295 |
48.219 |
|
|
|
Debenture Redemption Reserve |
511.629 |
0.000 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
2483.900 |
1962.078 |
1500.181 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Bank Interest |
0.000 |
104.537 |
291.912 |
|
|
|
Dividend |
107.501 |
41.338 |
36.895 |
|
|
|
Sales and service |
518.275 |
519.415 |
192.760 |
|
|
TOTAL EARNINGS |
625.776 |
665.290 |
521.567 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Capital Goods |
26.211 |
3.945 |
24.135 |
|
|
|
Trading Goods |
0.000 |
0.000 |
119.713 |
|
|
TOTAL IMPORTS |
26.211 |
3.945 |
143.848 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
- Basic |
16.60 |
9.67 |
13.14 |
|
|
|
- Diluted |
16.37 |
9.27 |
12.69 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2010 (1st
Quarter) |
|
Gross Sales |
|
|
4397.000 |
|
Other Operating
Income |
|
|
0.000 |
|
Other Income
|
|
|
(20.300) |
|
Total
Income |
|
|
4376.700 |
|
Total Expenditure
|
|
|
3648.700 |
|
PBIDT |
|
|
728.000 |
|
Interest |
|
|
247.300 |
|
PBDT |
|
|
480.700 |
|
Depreciation |
|
|
148.400 |
|
Tax |
|
|
69.100 |
|
Fringe Benefit
Tax |
|
|
0.000 |
|
Deferred
Tax |
|
|
39.100 |
|
Reported Profit
After Tax |
|
|
224.100 |
|
Extra-ordinary
Items |
|
|
0.000 |
|
Adjusted Profit
After Extra-ordinary item |
|
|
224.100 |
/
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
10.19
|
6.29 |
8.46 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
12.74
|
7.77 |
8.83 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
5.83
|
5.20 |
7.03 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.17
|
0.11 |
0.14 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.79
|
2.11 |
1.80 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.80
|
1.81 |
1.64 |
LOCAL AGENCY FURTHER INFORMATION
The Details of
Sundry Creditors:
|
Particulars |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
Sundry Creditors |
1957.259 |
1989.896 |
|
RESULTS OF
OPERATIONS AND BUSINESS OVERVIEW:
The revenue for the financial year was Rs. 22369.400 millions as against
Rs. 19450.900 millions for the previous financial year registering an increase
of 15%. Revenue contribution from the domestic market grew by 7% due to
increase in competition among telecom operators. However, international market
excelled with 37% growth due to there increased recognition as a leading
network service provider. The Company has presence in 46 countries and worked
with over 70 cellular operators.
GTL is a leading Network Services company that addresses the .Network
Life- Cycle requirements of Telcos/Operators, Tower companies and Technology
Providers (OEMs).
During the year, GTL strengthened its relationship with all major OEMs/
Operators and increased its level of engagement with them. Few of the major
contracts entered into by GTL during the year are given below: 9 GTL entered
into energy management services contract with Aircel for a period of 6 years.
The Service offerings will include energy management of 17,500 towers and
incremental Aircel site rollouts through GTL Infrastructure Limited (GTL
Infra).
• GTL also extended its network deployment capabilities into Power
sector. During the year GTL executed orders worth Rs. 420.000 millions for
MSEDCL (Maharashtra State Electricity Distribution Company Limited). At the end
of FY 2009-10, the order book visibility for these services is in the range of
around Rs. 427 millions. GTL also emerged as the top bidder for power
distribution franchisee contract floated by MSEDCL to distribute power to most
parts of
Business Overview
During the year, GTL increased its operations in the
GTL continues to remain focused on innovations and operational
excellence to adapt quickly to changing business requirements of the telecom
operators and OEMs. As part of sustainability initiatives, the Company has
focused on reducing the energy consumption and carbon footprint of the telecom
industry. GTL aims to reduce the energy expenses by 15%-20% by deploying
innovative Energy Management Solutions and use of clean and green energy on
telecom sites.
Strategic
Investment
GTL owns 33% equity of GTL Infra which has been continuously looking for
inorganic growth opportunities both in the domestic and international markets
and has entered into an agreement to purchase Aircel's tower asset business.
The highlights of the transaction are as under:
• Purchase of 17,500 telecom towers;
• 21,000 active tenants on these towers;
•
• Right of first refusal for additional 20,000 tenancies to GTL Infra
over the next three years.
Aircel is one of the leading GSM operators in the country. GTL has a
strong working relationship with Aircel and provides them services like network
planning and design, network optimisation, network deployment and network
operations and maintenance. In addition to the above mentioned services, there
is opportunity to GTL for energy management business which may result into
revenue of Rs. 85000.000 millions over the period of next 5 years. The purchase
of the Aircel tower business is not only expected to be a transformational
transaction for GTL Infra but also significantly benefit GTL by building a
strong partnership with one of the leading national operators in the.country.
So far, GTL has invested Rs. 3980.900 Million in GTL Infra. This
strategic investment has resulted into following benefits for there
Shareholders:
Revenue growth
Since inception of GTL Infra in, 2004-05, GTL has earned total revenue
of Rs.29241.500 Million and net profit in excess of Rs. 2000.000 millions. Thus
GTL has already recouped more than 60% of its investments so far through the
profit from the business done-with GTL Infra.
Growth in Investment value
GTL has invested Rs. 3980.900 Million in GTL Infra. As on 31.03.2010
mark to market value of this investment is Rs. 12541.900 Million. In view of
the new order visibility of around Rs. 85000.000 millions through purchase of
UNLOCKING VALUE
FOR THE SHAREHOLDERS
Buyback and
Dividend:
a) Buyback of
Equity Shares:
The Board of Directors of the Company in its meeting held on January
15,2009 had recommended buyback of fully paid up equity shares of Rs.10/-
(Rupees Ten Only) each at a maximum price of Rs. 260/- per share through open
market route in accordance with the extant statutory provisions and subject to
approvals from the Shareholders and Lenders. The Company obtained approval of
the shareholders for the said buyback program by way of passing a Special
Resolution through Postal Ballot, the result of which was declared on
25.03.2009. With the improvement in the macro-economic conditions coupled with
political stability in the country post announcement of results of general
elections in May 2009, the stock market moved up considerably that led to
trading of the Company's share price consistently above the maximum buyback
price approved by the shareholders, thus, the Board of Directors of the Company
in its meeting held on 22.07.2009 had decided not to act on the enabling
approval received from the shareholders for buyback of equity shares.
CAPITAL MARKET
DEVELOPMENTS:
Trading Group and Futures and Options (F and O) Segment The Company's
equity shares are listed with the Bombay Stock Exchange Limited (BSE) under the
category 'Group A'. The Company's equity shares are listed with National Stock
Exchange of India Limited (NSE) under the category 'CNX Midcap 200'. Effective
29.12.2006, the Company's equity shares were introduced in the 'Futures and
Options Segment (F and O)'.
The Rated Redeemable Unsecured Rupee Non-Convertible Debentures
privately placed by the Company are listed with BSE under the Debt Segment.
Average daily
traded volumes
The average daily traded volume in the Company's shares on BSE and NSE
was 70,005 and 152,289 shares respectively, in the year ended 31.12.2010 as
against 128,687 and 210,090 shares respectively in the previous financial year.
Awards:
|
|
Awards won |
|
1 |
GTL wins the Indian Merchant Chambers (IMC) RBNQA "Outstanding
Achievement Trophy" in the service category from RamKrishna Bajaj
National Quality Award Trust. GTL was chosen for the award for its integrated
model to deliver services in each segment of the network services value
chain. |
|
2 |
GTL features in Standard and Poor's Environment, Society and
Governance (ESG) India Index for 3 years in a row. |
|
3 |
GTL received the "Greentech Environment Excellence Award 2009 and
2008" in the infrastructure sector for outstanding achievement in environment
management. |
|
4 |
GTL has been named as "No.1 Telecom Turnkey Company of the
year" for FY 2007-08 and 2008-09 for the leadership in offering Network
Services by Voice and Dat |
|
5 |
GTL received the "Certificate for strong Commitment" from CII-ITC
Center of Excellence for Sustainable Development, for its initiatives on
Sustainability and Energy Management. |
|
6 |
GTL received the 'Amity HR Excellence' award for its initiatives in
the HR management. |
|
7 |
"Global Engineering Partner" Award - Huawei Technologies
Company Limited |
Introduction of
Energy Management Services
They continue to remain focused on innovations and operational
excellence to adapt quickly to changing business requirements of the telecom
operators and OEMs. As part of there sustainability initiatives they are
focused on reducing energy consumption and carbon footprint of the telecom
industry. As a result of this, they are focused on Energy Management Solutions
that are aimed at providing clean and green energy on telecom sites.
According to CLSA research report,
They have signed an Energy Management contract with Aircel, for a period
of 6 years. They will be responsible for reducing the overall energy
expenditures of Aircel through the use of innovative methods and alternate
sources of energy. The contract will cover 17,500 Aircel sites and the
incremental site rollouts of Aircel through GTL Infrastructure Limited. They
believe this represents a significant recurring revenue opportunity of Rs.
5000.000 Millions. in the first eighteen months and can reach upto Rs.
10000.000 Millions. per annum at the end of three years. They are in talks with
other cellular operators on similar basis.
To complement this effort they propose to invest upto Rs. 25000.000
Millions. over the next three years in energy efficient equipment and
automation of the processes. To part finance the same, they have raised Rs.
14000.000 Millions. through unsecured Non Convertible Debentures. The balance
will be funded through internal accruals.
Investment in GTL
infrastructure Limited (GTL infra)
GTL Infra's
Acquisition of
They own 31.3% stake in GTL Infra which has been continuously looking for
inorganic growth opportunities both in the domestic and international markets.
During the year, it entered into an agreement to purchase Aircel's tower asset
business. The highlights of the transaction are as under:
• Purchase of 17,500 telecom towers;
• 21,000 active tenants on these towers;
•
• Right of first refusal for additional 20,000 tenancies to GTL Infra
over the next three years;
Aircel is one of the leading GSM operators in the country and has
emerged as 3G license winner in 13 out of 22 telecom circles. This may lead to
new opportunities in the field of Network Planning and Design, Network
Optimisation, Network Deployment and Network Operations and Maintenance. Thus,
along with the energy management opportunity as described above the services
may result into a revenue of Rs. 85000.000 Millions. over a period of next 5
years. The purchase of the Aircel tower business is not only expected to be a
transformational transaction for GTL Infra but also significantly benefit us by
building a strong partnership with one of the leading 2G and 3G operators in
the country. So far, they have invested Rs. 3980.900 Millions. in GTL Infra.
This strategic investment has resulted into the following benefits for there
Shareholders:
Revenue growth
Since inception of GTL Infra in FY 2004-05, they have earned total
revenue of Rs.29241.500 Millions. and net profit in excess of Rs. 2000.000
Millions. Thus they have already recouped more than 60% of there investments so
far through the profits from the business done with GTL Infra.
Growth in
Investment value
As on 31.03.2010, they have invested Rs. 3980.900 Millions. And mark to
market value of this investment is Rs. 12541.900 Millions.
In view of the new order visibility of around Rs. 85000.000 Millions.
Through purchase of Aircel's tower business, they have additionally invested
Rs. 10677.900 Millions. as there equity contribution for the acquisition.
They believe that the said investment will provide sufficient returns to
there shareholders as has been demonstrated in the past. To demonstrate my
commitment to this acquisition, I have personally invested Rs. 6500.000
Millions. through my holding company Global Holding Corporation Limited.
New Growth
Opportunities
3G and BWA
Networks
The results for 3G and BWA auctions have been announced and the winning
operators have committed approx. US$ 23 Bn for 3G and BWA licenses. These
operators are further expected to spend US$ 3 . 5 -4 Bn for 3G rollout over
next few years. They have already implemented and maintained 3G networks in
European markets. There acquisition of
Extending Network
Deployment Capabilities in Power Sector
There know how of implementation and maintenance of large telecom
Networks can easily be extended to the power sector. Power sector represents
Rs. 9000000.000 Millions. opportunity in Power Generation, Transmission and
Distribution. Last year they executed orders worth Rs. 420.000 Millions. for
MSEDCL (Maharashtra State Electricity Distribution Company Limited). At the end
of FY 2009-10, there order book visibility for these services is Rs. 4270.000
Millions. Recently, they have emerged as the top bidder for power distribution
frachisee contract floated by MSEDCL to distribute power to most parts of
Key Challenges
Increasing
recurring revenue and improving profitability
They are moving towards recurring revenue and higher margin business
segments. They believe that this will provide greater stability to there
business model. It will also help us in increasing traction with there
customers. This can be achieved through there high margin and skill intensive
business segments like Network Planning and Optimisation, Network Operations
and Maintenance and Energy Management Services.
Changing
geographic mix
Currently, 33% of there revenue is contributed by international
operations. During the year they strengthened there presence in the African
markets of
Creating a Global
Organisation
In line with there vision of becoming the "World's Largest Network
Services Provider", they have started the process of building a global and
professionally managed organisation. They are in the final phase of
implementing project "GenNext", a plan for increasing management
bandwidth to cater to the needs of there growing organisation. Under this
initiative, they have identified potential leaders from within the organisation
and invested in them by imparting different aspects of leadership through
mentoring and various management programs. They have appointed Hewitt, a
leading global Human Resource consulting firm, to ensure execution of the program.
People
They are committed to building a customer centric world-class
organization by investing aggressively on training there manpower resources.
The networking excellence of there engineers is the essence behind there
growth.
During the year there employees and contracted associates grew from
5,947 to 7,066. They have designed programs like "Business Partner",
"Family Jewel" and "Club Orion" to attract and retain
talent at all levels across the organisation. These initiatives have led to
successful institutionalisation of compensation review and performance
management processes.
Corporate Social
Responsibility
In line with there objective of being a committed corporate citizen,
they have taken significant efforts in the area of Corporate Sustainability,
encompassing Corporate Governance, Social Responsibility and Environment care.
The board has authorised us to set aside up to 2% of there net profit
every year towards Corporate Social Responsibility initiatives. They have
focused there attention on areas like imparting education to underprivileged
children and providing employment opportunities to women and physically
challenged people. There vast pool of human capital is helping there future
progress not only in terms of business but also by its impact on the community.
The increased environmental consciousness across the organization has resulted
in drop in electricity, paper and water consumption. This coupled with there
efforts in energy management will further help in reducing the carbon footprint
of the telecom industry.
Awards
For there initiatives in the areas of business excellence, corporate
responsibility and environment management, they have received the following
awards:
• 'No. 1 Telecom Turnkey of the Year Award' for FY 2008-09 from Voice
and Data
• 'Outstanding Achievement Trophy' in the service category from
Ramkrishna Bajaj National Quality Award Trust
• 'Certificate for strong Commitment' from CII-ITC Center of Excellence
for Sustainable Development
• 'Greentech Environment Excellence Award 2009' from Greentech
Foundation
• Amity HR Excellence Award
Conclusion
For all that there Company has accomplished over the years, they would like to thank all there
stakeholders, customers, financial institutions,
partners and employees for their unwavering interest and support and look forward for the same in future.
Management
Discussion and Analysis:
Industry structure
and development
World Telecom
Industry
The global telecommunications industry has experienced more change in the
last decade than in its entire history. In 1999, only 15 percent of the world's
population had access to a telephone; by 2009, nearly 70 percent had mobile
phone subscriptions. The global recession did not prevent people from using
communication services and accelerated the pace of wireline-tomobile
substitution.
In anticipation of increase in subscriber base and uptake of mobile
broadband services, operators across the world made plans for incremental
investments in capacity and coverage expansion. Worldwide, service providers
spent US$ 287 Bn in 2009 on capital expenditure projects, such as Network
infrastructure expansion and upgrades. Beginning 2010, the investment cycle is
expected to accelerate, driven by 3G rollouts in India, Central and Latin
America and Africa, and a ramp-up in Long Term Evolution (LTE) deployments in
Australia, Brazil, Western Europe, Japan, and North America.
GTL acts as a Network Services Provider and typically receives and
executes contracts from wireless operators, OEMs and tower companies to build,
operate and maintain cellular Networks. GTL
continuously develops an innovative range of solutions that meet the
requirements of its customers. GTL's value proposition to its customers is as
follows:
• Networking expertise on various technology platforms
• Global execution capability with presence in 46 countries
• Access to over 7,066 trained and skilled employees and associates
• Relationships with OEMs and Service Providers
• Multi-Partner/Platform Expertise
• Operational Excellence
Opportunities and
threats
Network Deployment
High subscriber base, low mobile penetration and rollout of new Network
services makes emerging markets in South-East Asia and MENA region attractive
markets for Network Deployment services.
Industry estimates indicate increased capex investments by telecom
operators to the extent of US$ 21.7 Bn in FY 2010-11 despite falling ARPUs
mainly driven by -
• Network expansion by new operators
• Capacity expansion/upgradation by incumbent operators
• Impending rollout of 3G and WiMAX services
Of the total capex investment, around US$ 3.4 Bn will come from the new
operators.
Introduction of 3G
and BWA Networks
The results of 3G and BWA auctions have recently been announced. The
winners have collectively committed over US$ 23 Bn for 3G and BWA licenses. In
addition to alleviating the "spectrum crunch", successful 3G and BWA
deployments in
On winning the 3G and BWA spectrum the next biggest challenge for the
successful bidders will be rapid deployment of Networks. The operators are most
likely to use the existing passive infrastructure base to cater to the
immediate Network rollout requirements. However, in the future, the demand for
towers are expected to increase as 3G Networks will require denser tower
network than 2G Networks on account of Quality of Service constraints which are
most critical in 3G services. The operators are expected to spend incremental
capex of US$ 3.5 - 4 Bn for rollout of 3G Network on
Network Deployment has a significant share in GTL's revenue pie. Hence
deployment of 3G, 2G and BWA Networks by new operators will augur well for
GTL's revenue growth in FY 2010-11.
With an overall market penetration of less than 40% and subscriber base
of around 390 mn,
and consolidate their operations realising the pent-up demand for
infrastructure investment.
Middle East has been one of GTL's biggest markets outside
Network Planning
and Design
The world telecom industry is entering a new era. Falling ARPU and
sustained demand for new technological investments to support value-added
services have shifted the focus of Network services provider towards improving
Network efficiency and thereby saving costs.
The combined OPEX savings opportunity worldwide was estimated to be
worth US$ 143 Bn, assuming that each operator achieves a performance similar to
the best-in-class operator in its country. To help its customers innovate,
compete and win in their markets, GTL has enhanced its service capabilities in
Network Planning and Design space, to provide the entire ecosystem required for
the successful execution of existing and emerging business models. Some of the
key markets for GTL in the Network Planning and Design space are as mentioned
below:
The main drivers for Network Planning and Design services in
• Rapid increase in subscriber base is putting increased pressure on the
existing Network Infrastructure of the operators, severely affecting their QoS
• With introduction of 3G Network, operators will switchover to
non-voice based services on 3G platform creating significant opportunities in
Network rationalisation and upgradation
• Introduction of Mobile Number Portability (MNP) would allow
dissatisfied subscribers to switch their network without losing their contact
number. This will force the operators to improve their Network quality
APAC
This market is the most developed amongst the emerging markets. The
operators have rolled out 3G Networks that enable such services and are now
considering 3.5G and 4G Network deployments to ensure the uptake of mobile
broadband services. GTL plans to capitalise on this growth opportunity by
providing Network Planning and Design services for emerging technologies like
WiMAX, 3G and 4G.
Western 3G Markets
The increasing popularity of data application, network devices like
iphone have lead to clogging of the Networks. A data application device
generates about 30 times the data traffic as compared to other smart devices.
Encouraged by these usage statistics operators are now thinking of making fresh
investments for capacity addition thereby creating demand for Network Planning
and Design for managing data traffic on 3G Network.
Through its acquisition of Genesis and ADA Cellworks GTL has enhanced
its skill sets of managing 3G technology and is well positioned to exploit
growth opportunities in matured markets like Europe and
Energy Management
Energy consumption is one of the leading drivers of operating expenses for
both fixed and mobile network operators. Reliable access to electricity is
limited in many developing countries that are currently the high-growth markets
for telecommunications. At the same time, many operators have adopted corporate
social
responsibility initiatives with a goal of reducing their Networks'
carbon footprints, and Network infrastructure vendors are striving to gain
competitive advantage by reducing the power requirements of their equipment.
All of these factors will continue to converge over the next several years,
creating significant market potential for greener telecom Networks.
In
Electricity has from grid been the cheapest and viable source of energy
and is the most preferred. However, as most of the towers are located in rural
areas where grid power is largely unreliable, operators have to depend heavily
on diesel generators. Power from a diesel generator is not only expensive but
also causes high levels of carbon emissions, leading to global warming. Thus,
shortage in power and energy availability is hampering expansion plans of the
telecom operators and has become a bottleneck to create a strong
Energy requirement
of Telecom sites
In order to keep the Network running on 24x7 basis, electricity from
mains is supported with DG and batteries. Given the power outage in the rural
areas, the diesel generators are run for a longer time.
Telecom Operators'
Energy Expenditures
Currently, the energy expenses of the operators constitute nearly 25% of
the total Network operating cost and as the telecom operators try to reach out
to rural subscribers in remote areas the energy bills are going to rise
exorbitantly. In order to provide 24x7 power supply telecom operators have to
rely heavily on diesel generators and batteries there by increasing their OPEX.
Besides the above, the operators also face problem of increase in CAPEX
as frequent interruption in power reduces the life of the batteries,
non-availability of skilled manpower and spare parts makes maintenance cost
high and face security issues like theft and diesel pilferage at the telecom
sites.
Market Size
By 2013, the telecom industry may have installed 9 lac BTS on 463,000
towers. Uninterrupted electricity is essential for 24x7 availability of mobile
Network, but given the power deficit, operators have to rely on secondary power
from DG and batteries. This is expected to rise with increasing number of
operators trying to- penetrate in to rural areas. With this Energy Management
Services market would be around Rs. 560000.000 Millions.
At GTL, energy management is an opportunity to address a critical need
of there customers and contribute to the reduction of carbon footprint of the
telecom industry. GTL proposes to provide uninterrupted power supply on telecom
sites across the Country with use of alternative energy sources like solar and
wind power.
Future Outlook:
Recognised as "
Growing Along with
Partners
Over the years, GTL has strengthened its relationship with all global
OEMs like Alcatel-Lucent, Ericsson, Huawei, Motorola, Nokia Siemens Networks
and ZTE among others. These partnerships have helped GTL to expand its
operations in overseas markets and acquire new customers. The Company's recent
alliances with leading OEMs
in
Globalisation
To attain leadership position in Network Services business on a global
scale, GTL decided to increase the revenue contribution from its overseas
businesses. For the year ended 31.03.2010, overseas businesses contributed 33%
to GTL's overall revenue. Overseas expansion would help mitigate the business
risk by reducing dependence of revenues from fewer markets. During the year,
GTL strengthened its foothold in the African and European markets by winning
contracts in Network Planning and Design, Network Deployment, Managed Network
Infrastructure Services and Professional Services domains.
Enhancing Skill
Sets
GTL designs, deploys and manages Network Infrastructure for Telecom
Operators and OEMs. Currently most of its revenue comes from deployment of
Network Infrastructure. GTL plans to move up the value chain by enhancing its
skill sets in Network Planning and Design and Professional Services. GTL has in
the past acquired
Increasing
Contribution from Recurring Revenue
Currently, Network Deployment business contributes to majority of GTL's
revenue. However, as the markets mature the demand for rollout of new towers in
expected to taper off. GTL plans to increase recurring revenue from Network
Operation and Maintenance and Energy Management services thereby improving the
profitability of business and predictability of cash flow.
Revenue
With the offerings of various Networking Services to Aircel, the likely
revenue opportunity for the Company is summarized Even if GTL is able to
realize 50% of the above mentioned business opportunity, it will result into
revenue of around Rs. 85000.000 Millions. Over a period of the next 5 years,
which presents significant opportunity for GTL.
Risk Management
Report
This report, prepared in accordance with Clause 49 (IV) of the Listing
Agreement with Stock Exchanges in
Risk Management -
Significance and Approach
In
However, the choice of a framework depends upon individual companies
needs. Some companies have even prepared their own framework by picking up the
relevant recommendations from various frameworks. GTL has also prepared its'
own framework and is adhering to the same. However, as a continual improvement
measure, it has always been striving to adhere completely to COSO framework as
well.
Internal Control
System:
The Company follows the COSO (Committee of Sponsoring Organization)
model of Internal Control Framework and has designed Internal controls to
provide compliance with the COSO standards.
The Internal Control Framework of the Company is devised to provide
reasonable assurance regarding the achievement of objectives in the following
categories:
• Effectiveness and efficiency of operations
• Reliability of financial reporting
• Compliance with applicable laws and regulations
With the objective of safeguarding the Company's assets and ensuring financial
compliance, there are documented and well established operating procedures in
the Company and its subsidiaries, in
The Internal Control Framework of the Company is made up of five
components. They are derived from the way the management runs an operation or
functions and are integrated with the management process. The components of the
internal control framework are:
Control
Environment
The control environment of the Company sets the tone of an organisation,
influencing the • control consciousness of the employees. Control environment
factors include the integrity, ethical values and competence of the Company's
employees; management's philosophy and operatingstyle; the way management
assigns authority and responsibility, and organizes and develops its employees
and the attention and direction provided by the Company.
Risk Assessment
The Company has a system of risk assessment which covers the
identification and analysis of relevant risks to achievement of the objectives,
forming a basis for determining how the risks should be managed.
Control Activities
The Company has a well-defined set of control activities that includes
the policies and procedures that ensure management directives are carried out.
They include a range of activities as diverse as approvals, authorisations,
verifications, reconciliations, reviews of operating performance, security of
assets, and segregation of duties
Information and
Communication
Information systems produce reports containing operational, financial
and compliance-related information that make it possible to run and control the
organization. The Information systems also ensure that effective communication
occurs in a broader sense, flowing down, across and up the organization.
Monitoring
The Company has also a process to ensure that Internal Control Systems
are properly monitored - a process that assesses the quality of the system's
performance over time. This is accomplished through ongoing monitoring
activities, separate evaluations or a combination of the two. Ongoing
monitoring occurs in the course of operations.
An independent review of the internal control systems is also carried
out by the Statutory Auditors. Any significant deficiency in internal control
along with the progress in implementation of recommended remedial measures is
regularly presented to and reviewed by the Audit Committee of the Board.
Internal Audit
The Role of Internal Audit Department is in line with the role for
Internal Auditors as laid down by the Institute of Chartered Accountants of
India, as given below.-
• Understanding and assessing the risk
• Identifying areas for systems improvement and strengthening controls
• Ensuring optimum utilization of the resources of the Company
• Ensuring proper and timely identification of liabilities
• Ensuring compliance with internal and external guidelines and policies
of the Company as well as the applicable statutory and regulatory requirements
• Safeguarding the assets of the Company
• Reviewing and ensuring adequacy of information systems security
control
• Reviewing and ensuring adequacy, relevance, reliability and timeliness
of management information system
The Internal Audit process is designed to review the adequacy of
internal control checks in the system and covers all the significant areas of
the Company's operations. The Internal audit department performs risk based
audits, based on an internal audit plan, which is reviewed each year in
consultation with statutory auditors and the Audit Committee. The Audit
Committee reviews monthly Audit reports submitted by the Internal Auditors and
tracks the implementation of corrective actions. The Internal Audit Department
is well staffed with experienced members.
Some significant features of the Internal Control systems are:
• Corporate policies on accounting and major processes
• Well-defined processes for formulating and reviewing annual and long
term business plans
• Preparation and monitoring of annual budgets for all operating and support
functions
• Monthly meeting of the Operating Council to review operations and
plans in key business areas
• A well established Internal Audit team, which reviews and reports
monthly to management and the Internal Audit Committee about the compliance
with internal controls and the efficiency and effectiveness of operations
• Audit Committee of Board of Directors, regularly reviews the audit
plans, significant audit findings, adequacy of internal controls, compliance
with Accounting Standards as well as reasons for changes in accounting policies
and practices, if any.
Thus effective internal controls enhance the organizational performance
and contribute towards accomplishment of company objectives.
Quality and
Processes:
There quality system has been laid on strong systems and. Processes in order to capture "Voice of
Customers" and "Voice of Business" to help achieve there core value of "Delighting Customers
through Superior Services".
There quality philosophy has resulted in achieving significant benefits
like edge over competition, lowering cost of delivery and reduced project
completion time. This would further lead to better business results, increase
in market share and help achieve there vision of becoming the world's largest
Network Services provider. They have adopted holistic approach that affects and
involve everyone - employees, customers, suppliers, shareholders and
society.
The various initatives that were taken as part of the business
excellence are depicted below.
Quality
Initiatives at GTL
Quality initiatives at GTL are initiated to achieve excellence in
Business, Operations and Processes.
Business
Excellence
They adopted IMC's Ramakrishna Bajaj Business Model based on Malcolm Baldrige
Business excellence Framework in 2004 and Cll - ITC's Business Sustainability
Award Model in 2007. The adoption of these models has helped us to understand
the systems and processes that have to be optimized for ensuring sustainable
growth and excellence. There efforts were recognized and validated when GTL was
awarded Ramakrishna Bajaj Performance Excellence Trophy in 2008-09 and
Ramakrishna Bajaj Outstanding Achiever Trophy in 2009- 10 for its exemplary
performance in all aspects of Business Excellence. GTL was awarded Commendation
Certificate for Strong Commitment towards Sustainability in 2009-10 by Cll -
ITC Centre of Sustainable Development. Process Excellence Reinforcing its
commitment to high levels of quality, best-in-class project management and
robust service delivery practices, GTL attained a number of milestones during
FY 2009-10.
• GTL achieved TL 9000 Release 4.0 (a telecom domain specific quality
standard) certification
• GTL was recommended for continuation of the ISO 9001:2000 (Quality
Management) certification
• GTL was recommended for continuation of the ISO 14001:2004
(Environment Management) certification
• GTL was recommended for continuation' of the OHSAS 18001:2007
(Occupational Health and Safety'Management) certification
• GTL achieved SA 8001:2008- .(Social Accountability Management)
certification-
A successful enterprise-wide appraisal endorses the best in class
deployment of the Business Management System which enables consistent delivery
experience to GTL's, customers across the globe. It reiterates customers'
expectations to experience a high degree of certainty in service delivery, as
GTL stays focused on improving quality and processes constantly in an
environment of rapid growth.
The above certifications are a testimony to GTL's commitment to achieve
the highest standards of quality. The cornerstone of these certifications is
the in-house developed Business Management System, a vibrant, process-driven,
people-oriented and customerfocused management system which is continuously
evolving to cater to the requirements of the Company's varied business
offerings.
Further several management tools like Six Sigma, Problem Solving are
practiced to optimize the processes. During the year 154 mandays of training on
Quality Management was done
Operational
Excellence
GTL's operational excellence is a result of implementing blend of
Sustainability Initiatves. During the year 525 mandays of training related to
Environment, Health and Safety and Social Accountability was done.
ISO 14001: 2004: GTL is an ISO
14001:2004 certified company. In the pursuit of Environment excellence GTL has
reduced paper, electrical, diesel and water consumption substantially across
all its offices and is complying with all rules and regulations.
OHSAS 18001: 2007:
Health
and Safety of its employees is of paramount importance for GTL. Hence the
company introduced elements of Occupational Health and Safety Management
standard in all its operational level processes across all the locations.
Training and awareness on Safety at sites, offices and safe work practices is
provided to all employees including contract employees and vendors.
SA 8000: 2008: They always
believed that Social Accountability is an integrated approach towards operating
in an economically, socially and environmentally sustainable manner. Hence they
adopted SA 8000 standard and set up a Social
Accountability Management system which got certified in July 2009 for. Its
compliance to SA8000:2008. This recognition implies that GTL conducts its
business keeping in view its accountability to society while respecting
applicable laws and regard for welfare of employees and other stakeholders.
Environmental
Excellence
Subject is an energy conscious and an environment friendly business
organisation. The Company has been taking various measures to achieve the
target of continual sustainable development. The top management showcases there
commitment towards the environment and sustainable development through there
Integrated Health, Safety and Environment Policy and other policies adopted by
the Company.
The main objectives of the policies are :
• To tap new business opportunities that help in the areas of energy
conservation and reduction of carbon footprint
• To ensure optimum utilization of renewable and non-renewable resources
• To comply with all identified / applicable legal and other
requirements to which the Company subscribes
• To ensure proper disposal of all wastes
• To carry out all there business activities in eco-friendly manner
• ,To demonstrate continual improvement in there operations and help
there customers reduce their carbon footprint
They have put in a comprehensive Environment Management System (EMS)
that guides us in achieving there objectives and goals. GTL being a service
provider has limited impact in terms of environmental pollution. They only
consume natural resources to a limited extent and are not involved in
processing or utilizing hazardous material or polluting substances. As part of
EMS GTL has adhered to the HSE management system based on ISO 14001:2004 and
OHSAS 18001:2007 standards. GTL has a pool of certified ISO 14001:2004 auditors
to drive the ISO 14001 initiative across the organization.
Highlights for the
year 2009-10
1) Statutory and Voluntary
Compliances
Through there
2) Consumption of
Natural Resources
Paper consumption has demonstrated a declining trend by approximately
5.1% in 2009-10. Owing to there nature of operations, GTL is an indirect energy
consumer. The electricity consumption reduced by approximately 2.5% in 2009-10.
Water is considered a scarce resource and is utilised with utmost
efficiency. Water Consumption has reduced by 6.5% per employee in 2009-10. This
has been the cumulative result of awareness, controlling wastage and installing
devices that use less water.
Reduction of
consumption of natural resources for there customers and innovating new
business offering under EMS
As an offshoot from the
3) Emissions,
Effluents and Waste
GTL being a telecom service provider does not contribute significantly
to the global E-waste scenario. However measures are taken to handle e-waste in
a responsible manner. They are committed towards 100% environment friendly
disposal of e-waste and so they give it to authorised E-waste recyclers. As a
strategic approach only energy efficiency rated hardware is procured.
• Biodegradable waste is converted to manure through organic composting.
This manure is utilised in there campuses or donated as part of there CSR
activity
• Used oil and batteries are given to the CPCB authorised recyclers
Green House Gas
Emission
GTL has carried out an aggressive greening program around the Corporate
office vicinity. Over the years the company has planted more than 2000 trees.
About 1800 sq. metres of land is covered by green foliage which besides making
the campus green also acts as a carbon sink. GTL Foundation has also undertaken
tree
plantation activities at Hellen Keller institute for deaf and blind as
part of its CSR activities.
Car Pool Portal
They have introduced a Carpool Portal to help there staff use lesser
cars for commuting to office, thus reducing GHG emissions. Approximately 50
cars are being shared. PUC checking camps were also organised in FY 2009-10 for
vehicles entering Mahape premises. The company adopts a policy of "NO PUC
- NO ENTRY" for vehicles entering there registered office.
3) Awareness and
Education
Training and awareness sessions at GTL are specifically designed to
cater to the employees based on their role and interface with the probable
health, safety and environment impact of there operations. GTL drives
continuous awareness programs across various levels or geographies of the
organisation. Health, Safety and Environment awareness/trainings are carried
out through various forums like: Instructor led trainings and Web based
trainings, Display of posters, Induction trainings, ISO 14001 initiatives
trainingand certifications, Environment week celebrations etc.
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER ENDED 30.06.2010
|
Particulars |
|
Quarter Ended 30.06.2010 (Unaudited) |
|
Net Sales / Income from Operations |
|
4396.973 |
|
Cost of sales/services |
|
|
|
(a) (Increase)/decrease in Stock in Trade and Work in Progress |
|
(675.334) |
|
(b) Consumption of Raw Materials and Services |
|
3421.778 |
|
(c) Purchase of traded goods |
|
253.568 |
|
(d) Other Expenditure |
|
420.186 |
|
Gross Profit |
|
976.775 |
|
General Administrative Expenses |
|
198.868 |
|
Selling and Distribution Expenses |
|
29.609 |
|
Deprecation |
|
148.353 |
|
Operating Profit before Interest |
|
599.945 |
|
Interest |
|
247.254 |
|
Exceptional Items |
|
Nil |
|
Operating Profit after Interest and Exceptional items |
|
352.691 |
|
Other Income (includes foreign exchange gain/ (loss) - net |
|
(20.317) |
|
Profit / (Loss) From
Ordinary activities before Tax |
|
332.374 |
|
Tax Expenses |
|
|
|
- Current |
|
69.147 |
|
- Differed |
|
39.081 |
|
Net Profit/(Loss) From Ordinary activities after Tax |
|
224.146 |
|
Extraordinary Items |
|
Nil |
|
Net Profit/(Loss) for the period |
|
224.146 |
|
Share of profit / (loss) in associates |
|
NA |
|
Minority Interest |
|
NA |
|
Reserve on consolidation |
|
NA |
|
Net Profit after Tax
attributable to Consolidated Group |
|
NA |
|
Paid Up Equity Share Capital ( Face Value of the share Rs.10/- each ) |
|
967.245 |
|
Reserves (Excluding Revaluation Reserves) |
|
-- |
|
Earning Per Share
(EPS) (Not Annualised) |
|
|
|
Before
Extraordinary Items |
|
|
|
-Basic |
|
2.32 |
|
-Diluted |
|
2.29 |
|
After Extraordinary Items |
|
|
|
-Basic |
|
2.32 |
|
-Diluted |
|
2.29 |
|
Public Share Holding |
|
|
|
- Number of Shares |
|
45625266 |
|
- Percentage of shareholding |
|
47.17% |
|
Promoters and Promoter group share holding |
|
|
|
a) Pledged / Encumbered |
|
|
|
- Number of Shares |
|
0 |
|
- Percentage of share (as a % of the total shareholding of promoter and promoter group) |
|
0.00% |
|
- Percentage of shares(as a % of the total share capital of the company) |
|
0.00% |
|
b) Non-encumbered |
|
|
|
- Number of Shares |
|
51099199 |
|
- Percentage of Share (as a % of the total shareholding of promoter and promoter group) |
|
100.00% |
|
- Percentage of Share (as a % of the total share capital of the company) |
|
52.83% |
Note:
- The above Unaudited
financial results of the company and its subsidiaries (group) for the
quarter ended 30.06.2010 were reviewed by the audit committee and approved
by the board of directors in its meeting held on 27.07.2010
- The statutory
auditors of the company have carried out limited review of the financial
results for the quarter ended 30.06.2010 in accordance with clause 41 of
the listing agreement.
- details of
expenses exceeding 10% of the total expenditure (unless stated other wise)
Rs. In Millions
|
Particulars
|
Consolidated |
Standalone |
||||
|
Quarter ended |
Year ended |
Quarter ended |
Year ended |
|||
|
30.06.2010 |
30.06.2009 |
31.03.2010 |
30.06.2010 |
30.06.2009 |
31.03.2010 |
|
|
Staff Costs |
1104.946 |
900.217 |
3981.744 |
454.763 |
299.036 |
1533.653 |
- The company’s
associate Chennai Network Infrastructure Limited (CNIL) has completed
purchase of tower business of aircel limited and its subsidiaries
(Aircel). On 12.07.2010, CNIL has allotted equity shares of Rs. 10677.860 millions
against equivalent equity share application money paid by the company
during last quarter ended 31.03.2010.
- The company’s
share in associates, GTL infrastructure limited is accounted for based on
audited financial results for the year ended 31.03.2010 and Global Rural
Netco Limited and Chennai Network Infrastructure Limited is accounted for
based on Unaudited financial results for the period ended 30.06.2010.
- The group has
single reportable business segment namely “Network Services”.
- The company
did not have any investor complaints as on 01.04.2010 and as on
30.06.2010. There were two investors complaints received and disposed of
during the quarter ended 30.06.2010.
- The figures
for the previous period / year have been regrouped / rearranged / recast
wherever considered necessary.
- The
standalone financial results for the quarter ended 30.06.2010 of the
company will be available on the company’s website www.gtllimited.com from the dose of
business hours on 27.07.2010.
Fixed Assets:
- Land –
freehold
·
Building (including leasehold)
·
Plant and equipments
·
Furniture and fixtures
·
Office equipments
·
Computers
·
Networking assets
·
Test and repair equipments
·
Vehicles
·
Networking software
·
Other than networking software
AS PER WEB SITE
DETAILS:
PROFILE:
Subject, a Global Group Enterprise, is a leading Network
Services company, offering services and solutions to address the Network Life
Cycle requirements of Telecom Carriers and Technology providers (OEMs).
GTL's consolidated revenues for FY 2009-10 ending 31.03.2010
stood at Rs. 22369.400 millions (US$ 478.80 million). Today GTL executes
projects across 46 countries and has built over 70 cellular networks.
Global Group is
Global Holding Corporation Private Limited is the holding
company of "Global Group" that has 7 operating companies, two of
which are listed on Indian Stock Exchanges. The Group is expected to own more
than 32,500 towers and have revenues in excess of US$ 1.5 Billion, Balance
sheet size of over US$ 5 Billion, and more than 35,000 professionals (FY
2011E). The Group has operations across 46 countries, employs people of 22 nationalities
and supports 18 social causes.
For over 2 decades Global Group has been partnering with
leading telecom operators and OEMs offering its expertise in wireless
communications. From 2G Networks to 3G, from WiMAX to IPTV, Global group provides
complete life-cycle solutions around Network Services. The services include
Network Planning and Design, Network Deployment, Network Operations and
Maintenance, Infrastructure Management, Energy Management and Professional
services.
Global Group Enterprises have received more than 35
accolades and awards for excellence in Business, CSR and Corporate Governance.
The group's flagship company GTL features in the in the S and P's ESG India
Index, is the recipient of "Outstanding Achievement" trophy from IMC
RBNQA, "Certificate for strong Commitment" from CII-ITC for
Sustainable Development and "Greentech Environment Excellence" Award.
GTL Infra has won "Best Independent Infrastructure Provider" from
Tele.Net, "Innovative Infrastructure Company of the year" by CNBC
TV18 and "Top Independent Infrastructure Provider of India" by V and
D.
By 2013, the Group plans to Erect, Engineer and Manage
100,000 Cell Sites across 150 Networks. These Networks are expected to connect
more than 100 million subscribers in 50 countries across the world.
PRESS RELEASE:
GTL
registers a Revenue growth of 26% on Y-o-Y basis;
EBITDA
grows by 28% on Y-o-Y basis
Highlights for the quarter ended 30.06.2010
• Consolidated Revenue from Global Operations was Rs. 616.98 Millions
for the quarter ended 30.06.2010 as against Rs. 490.71 Millions for the
corresponding quarter in the previous year, recording a Y-o-Y growth of 26%.
• EBITDA for the quarter ended 30.06.2010 was Rs. 971.400 Millions as
against Rs. 758.100 Millions for the corresponding quarter in the previous
year, recording a Y-o-Y growth of 28%.
Mumbai, 27.07.2010
GTL Limited today announced the un-audited results of the Company
(including its international subsidiaries on consolidated basis) for the quarter
ended 30.06.2010. GTL is
The gross profit for the quarter ended 30.06.2010 was Rs. 1498.100
Millions (24.28% of revenue) as against Rs. Rs. 1238.500 Millions (25.24% of
revenue) during the corresponding quarter in the previous year.
The Selling and Marketing Expenses increased to Rs. 16.67 Millions
(2.70% of revenue) in the current quarter from Rs. 134.300 Millions (2.74% of
revenue) in the corresponding quarter for the previous year. Administration
Expenses were Rs. 360.000 Millions (5.84% of revenue) in the current quarter as
against Rs. 346.100 Millions (7.05% of revenue) in the corresponding quarter
for the previous year.
Depreciation charged for the quarter stood at Rs. 177.300 Millions as
against Rs. 139.800 Millions in the corresponding quarter of last financial
year.
The Net profit of the Company has reduced from Rs. 532.600 Millions to
Rs. 374.900 Millions mainly due to exchange loss of Rs. 24.100 Millions as
against an exchange gain of Rs. 197.200 Millions reported in the corresponding
quarter in the previous year.
Manpower at GTL
The total manpower of the Company stood at 7,064 as on 30.06.2010, as against
5,942 as on 30.06.2009.
Award won during
the quarter
GTL has won the “International Asia Pacific – World Class Award” in
large service category. This award is given to companies displaying world class
quality performance. The award follows the U.S. Malcolm Baldrige Performance
Excellence Model.
About GTL Limited
GTL, a Global Group Enterprise, is a leading Network Services company,
offering services and solutions to address the Network Life Cycle requirements
of Telecom Carriers and Technology providers (OEMs).
Global Group is
The Group, owns 32,500 Telecom Towers, is expected to have revenues in
excess of US$ 1.5 Billion, Balance sheet size of over US$ 5 Billion and more
than 35,000 professionals (FY 2011E). The Group has Operations across 46
countries, employs people of 22 nationalities and supports 18 social causes.
For over 2 decades Global Group has been partnering with leading telecom
operators and OEMs offering its expertise in wireless communications. From 2G
Networks to 3G, from WiMAX to IPTV, Global group provides complete life-cycle
solutions around Network Services. The services include Network Planning and
Design, Network Deployment, Network Operations and Maintenance, Infrastructure
Management, Energy Management and Professional services.
Global Group Enterprises have received more than 35 accolades and awards
for excellence in Business, CSR and Corporate Governance. The group’s flagship
company GTL features in the in the S and P’s ESG India Index, is the recipient
of “Outstanding Achievement” trophy from IMC RBNQA, "Certificate for
strong Commitment” from CII-ITC for Sustainable Development and “Greentech
Environment Excellence” Award. GTL Infra has won “Best Independent
Infrastructure Provider” from Tele.Net, “Innovative Infrastructure Company of
the year” by CNBC TV18 and “Top Independent Infrastructure Provider of India”
by V and D.
By 2013, the Group plans to Erect, Engineer and Manage 100,000 Cell
Sites across 150 Networks. These Networks are expected to connect more than 100
million subscribers in 50 countries across the world.
This press release may contain predictions, estimates or other
information regarding the Company's operations, which are forward looking in
nature. While these forward looking statements represent our best current
judgment on what the future holds, they are subject to risks and uncertainties
that could cause actual results to differ materially and may involve risk and
uncertainty. This press release is prepared for general purposes only and does
not have any regard to the specific investment objectives, financial situation
and particular needs of any specific person. No liability for any loss will
arise with the company as a result of the action taken on the basis of
information contained herein. For a discussion of the risks and uncertainties
that may cause results to differ, you should review GTL Limited’s filings with
stock exchanges, including the annual report and quarterly disclosures.
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.44.84 |
|
|
1 |
Rs.69.32 |
|
Euro |
1 |
Rs.59.79 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
46 |
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 |
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 |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.