MIRA
INFORM REPORT
|
Report Date : |
05.01.2011 |
IDENTIFICATION DETAILS
|
Name : |
|
|
|
|
|
Registered Office : |
|
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2010 |
|
|
|
|
Date of Incorporation : |
14.03.1995 |
|
|
|
|
Com. Reg. No.: |
04-30976 |
|
|
|
|
CIN No.: [Company
Identification No.] |
L32100GJ1996PLC030976 |
|
|
|
|
IEC No.: |
AHMI00670F |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACB2100P |
|
|
|
|
Legal Form : |
Public limited liability company. Company’s shares are listed on the Stock Exchange. |
|
|
|
|
Line of Business : |
Telecommunication
and Cellular System Services. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (45) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 58289400 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is part of Aditya Birla group. Financial Position of the company appears to
be improving. Trade relations are reported as fair. Business are reported to
be usually correct and as per commitments. 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 |
LOCATIONS
|
Registered Office : |
|
|
Tel. No.: |
91-79-23232250 |
|
Fax No.: |
91-79-23232251 / 3232383 / 232240 |
|
E-Mail : |
|
|
Website : |
|
|
Area : |
Owned - 2000 sq. ft |
|
|
|
|
Administrative Office : |
3rd Floor, Century Bhavan, |
|
Tel. No.: |
91-22-24314987 |
|
Fax No.: |
91-22-25467174 |
|
|
|
|
Corporate Office : |
Windsor, 5th Floor, Off CST Road, Near Vidya Nagari, Kalina, Santacruz (East), Mumbai – 400098, Maharashtra, India |
|
|
|
|
Branches : |
3rd Floor, KLK Estate, Tel. 91-40-26562000 Fax. 91-40-26562001 E-mail. ccare.ap@ideacellular.com
Tel. 91-866-2663344 Fax. 91-866-2663333
47-11-3, Eswar
Homes, 1st Lane, Dwaraka Nagar,
Tel. 91-891-2662000 / 2668080 / 2668081 Fax. 91-891-2663000
Shop No. 5, Ground Floor,
L S Tower, Tel. 91-8554-228822 / 228833
Fax. 91-79-28514000 E-mail. info@ideacellular.com
A-30, Mohan Co-operative
Industrial Estate, Fax. 91-11-251678138 E-mail. ccare.dl@ideacellular.com
139, 140, Electronic Complex, Pardesipura, Fax. 91-731-2551304 E-mail. ccare.mp@ideacellular.com |
|
|
|
|
Customer Care Addresses : |
3rd Floor, K.L.K. Estate, Fax: 91-40-55562222 Email: ccare.ap@ideacellular.com
A-30, Mohan Co-operative Industrial Estate, Fax: 91-11-51678138 Email: ccare.dl@ideacellular.com
Fax: 91-79 8514000 Email: 9824012345@ideacellular.com
Anand Banquet Hall, Fax – 91-130-2234213 Email: ccare.hr@ideacellular.com 4th Floor, Mercy Estate, Ravipuram.
91- 98471 12345 (Prepaid) Fax: 91-484-2382121/2382324 Email: ccare.kerala@ideacellular.com
139, 140 Electronic Complex, Pardesipura, Fax: 91-731 2551304 Email: ccare.mp@ideacellular.com Sharda Centre, 11/1 Erandawane,
Off. Fax: 91-20-4123298/99 Email: 9822012345@ideacellular.com 182 Vidya
Laxmi Complex, Fax: 91-121-2640130 Email: ccare.upw@ideacellular.com |
DIRECTORS
|
Name : |
Mr. Kumar Mangalam Birla |
|
Designation : |
Chairman |
|
Address : |
Mangal Adityayan
20, |
|
Date of Birth/Age : |
14.06.1967 |
|
|
|
|
Name : |
Mrs. Rajashree Birla |
|
Designation : |
Non Executive Director |
|
Address : |
Mangal Adityayan
20, |
|
Date of Birth/Age : |
15.09.1945 |
|
|
|
|
Name : |
Dr. Rakesh Jain |
|
Designation : |
Non Executive Director |
|
|
|
|
Name : |
Dr. Shridhir Sariputta
Hansa Wijayasuriya |
|
Designation : |
Non Executive Director |
|
|
|
|
Name : |
Mr. Biswajit Anna Subramanian |
|
Designation : |
Non Executive Director |
|
Address : |
31 |
|
Date of Birth/Age : |
19.09.1965 |
|
|
|
|
Name : |
Mr. Arun Thiagarajan |
|
Designation : |
Independent Director |
|
Address : |
|
|
Date of Birth/Age : |
07.09.1944 |
|
|
|
|
Name : |
Mr. Gian Prakash Gupta |
|
Designation : |
Independent Director |
|
Address : |
101, Kaveri, B Wing, |
|
Date of Birth/Age : |
11.01.1941 |
|
|
|
|
Name : |
Mr. Mohan Gyani |
|
Designation : |
Independent Director |
|
Address : |
|
|
Date of Birth/Age : |
15.06.1951 |
|
|
|
|
Name : |
Ms. Tarjani Vakil |
|
Designation : |
Independent Director |
|
Address : |
A-1, Ishwardas Mansions Nana Chowk, Mumbai – 400 007 |
|
Date of Birth/Age : |
30.10.1936 |
|
|
|
|
Name : |
Mr. R.C. Bhargava |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. P. Murari |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. Sanjeev Aga |
|
Designation : |
Managing Director |
|
Address : |
703, Raheja Grande, |
|
Date of Birth/Age : |
01.02.1952 |
KEY EXECUTIVES
|
Name : |
Mr. Akshaya Moondra |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Mr. Pankaj Kapdeo |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2010
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
(1) Indian |
|
|
|
Individuals / Hindu Undivided Family |
233333 |
0.01 |
|
Bodies Corporate |
1550222055 |
46.96 |
|
Sub Total |
1550455388 |
46.97 |
|
(2) Foreign |
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
1550455388 |
46.97 |
|
(B) Public Shareholding |
|
|
|
(1) Institutions |
|
|
|
Mutual Funds / UTI |
41620106 |
1.26 |
|
Financial Institutions / Banks |
145670724 |
4.41 |
|
Insurance Companies |
68965655 |
2.09 |
|
Foreign Institutional Investors |
250347309 |
7.58 |
|
Sub Total |
506603794 |
15.35 |
|
(2) Non-Institutions |
|
|
|
Bodies Corporate |
64577154 |
1.96 |
|
Individuals |
|
|
|
Individual shareholders holding nominal share capital up
to Rs. 0.100 million |
83381588 |
2.53 |
|
Individual shareholders holding nominal share capital in
excess of Rs. 0.100 million |
6538868 |
0.20 |
|
Any Others (Specify) |
1089426487 |
33.00 |
|
Directors & their Relatives & Friends |
229907 |
0.01 |
|
Non Resident Indians |
3014506 |
0.09 |
|
Trusts |
16317 |
- |
|
Overseas Corporate Bodies |
1083294281 |
32.82 |
|
Clearing Members |
2871476 |
0.09 |
|
Sub Total |
1243924097 |
37.68 |
|
Total Public shareholding (B) |
1750527891 |
53.03 |
|
Total (A)+(B) |
3300983279 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Telecommunication
and Cellular System Services. |
|
|
|
|
Products : |
|
|
Imports : |
|
|
Countries : |
|
|
|
|
|
Terms : |
|
|
Purchasing : |
L/C terms |
GENERAL INFORMATION
|
No. of Employees : |
4662 |
||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||
|
Bankers : |
|
||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
Address : |
706, B Wing, |
|
Tel. No.: |
91 -20- 6624 4600 |
|
Fax No.: |
91 -20- 6624 4605 |
|
E-Mail : |
|
|
|
|
|
Promoters : |
|
|
|
|
|
Entities having
significant Influence: |
|
|
|
|
|
Subsidiaries : |
|
|
|
|
|
Joint Venture |
|
CAPITAL STRUCTURE
AS ON 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
6775000000 |
Equity Share |
Rs.10/- Each |
Rs.67750.000 Millions |
|
1500 |
Redeemable Cumulative Non Convertible Preference Shares |
Rs.10000000/- Each |
Rs.15000.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
3299837792 |
Equity Share |
Rs.10/- Each |
Rs.32998.380 Millions |
|
|
|
|
|
199,153,469 Equity Shares are allotted as fully paid up under
the Scheme of amalgamation of Spice Communications Limited without payments
being received in cash.
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 |
32998.380 |
31000.950 |
26353.610 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
85093.260 |
85813.710 |
23134.000 |
|
|
4] (Accumulated Losses) |
(3963.740) |
(4052.830) |
(14064.940) |
|
|
5] outstanding Employee Stock Option |
444.450 |
182.330 |
37.590 |
|
|
NETWORTH |
114572.350 |
112944.160 |
35460.260 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
59886.080 |
55649.320 |
53154.170 |
|
|
2] Unsecured Loans |
5378.050 |
20144.340 |
11993.420 |
|
|
TOTAL BORROWING |
65264.130 |
75793.660 |
65147.590 |
|
|
DEFERRED TAX LIABILITIES |
2256.360 |
1425.380 |
661.850 |
|
|
|
|
|
|
|
|
TOTAL |
182092.840 |
190163.200 |
101269.700 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
149270.590 |
108228.900 |
89828.040 |
|
|
Capital work-in-progress |
4625.810 |
17218.180 |
16257.170 |
|
|
|
|
|
|
|
|
INVESTMENT |
27551.260 |
49288.080 |
5699.310 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
466.990 |
427.290 |
276.150 |
|
|
Sundry Debtors |
4301.170 |
3295.870 |
1985.930 |
|
|
Cash & Bank Balances |
2804.410 |
23444.290 |
4970.55 |
|
|
Other Current Assets |
1243.650 |
1330.840 |
520.66 |
|
|
Loans & Advances |
30002.810 |
19140.170 |
7986.730 |
|
Total
Current Assets |
38819.030
|
47638.460
|
15740.020 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
36796.230 |
31223.91 |
25436.63 |
|
|
Provisions |
1377.620 |
986.510 |
818.21 |
|
Total
Current Liabilities |
38173.850
|
32210.420
|
26254.840 |
|
|
Net Current Assets |
645.180 |
15428.040 |
(10514.820) |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
182092.840 |
190163.200 |
101269.700 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
|
118502.430 |
98570.800 |
67199.900 |
|
|
|
Other Income |
801.440 |
215.770 |
174.550 |
|
|
|
TOTAL (A) |
119303.870 |
98786.570 |
67374.450 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Trading Goods Sold |
0.220 |
189.640 |
0.060 |
|
|
|
Personnel Expenditure |
5698.860 |
4676.850 |
3417.820 |
|
|
|
Network Operating Expenditure |
34394.160 |
20761.570 |
10469.530 |
|
|
|
License and WPC Charges |
12944.790 |
10958.960 |
6851.030 |
|
|
|
Roaming and Access Charges |
17452.90 |
18158.810 |
11334.410 |
|
|
|
Subscriber Acquisition & Servicing
Expenditures |
11343.890 |
8145.660 |
6469.630 |
|
|
|
Advertisement and business Promotion
Expenditure |
4066.940 |
4265.710 |
3224.290 |
|
|
|
Administration & other Expenses |
4456.560 |
3824.930 |
2895.030 |
|
|
|
Amortisations of Intangible Assets |
1845.900 |
1461.340 |
1199.100 |
|
|
|
Surplus from Prepayment of Loan |
(316.940) |
0.000 |
0.000 |
|
|
|
TOTAL (B) |
91887.280 |
72443.470 |
45860.900 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
27416.590 |
26343.100 |
21513.550 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
2063.200 |
4507.240 |
2776.420 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
25353.390 |
21835.860 |
18737.130 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
13666.070 |
10967.220 |
7568.520 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
11687.320 |
10868.640 |
11168.610 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
1150.770 |
856.530 |
724.990 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
10.536.550 |
10012.110 |
10443.620 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(4052.830) |
(14064.940) |
(24508.560) |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Accumulated Losses on Amalgamation of Spice Communications Limited |
15463.770 |
0.000 |
0.000 |
|
|
|
Withdrawal from General Reserve) |
(4844.600) |
0.000 |
0.000 |
|
|
|
Deferred tax on Amalgamation of Spice Communications Limited |
(171.710) |
0.000 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
(3963.740) |
(4052.830) |
(14064.940) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
712.690 |
686.600 |
789.080 |
|
|
|
Other Earnings |
0.000 |
0.000 |
1.180 |
|
|
TOTAL EARNINGS |
712.690 |
686.600 |
790.260 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Capital Goods |
20252.070 |
19095.140 |
16030.040 |
|
|
|
Others |
0.000 |
189.190 |
0.000 |
|
|
TOTAL IMPORTS |
20252.070 |
19284.330 |
16030.040 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
3.39 |
3.42 |
3.96 |
|
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
|
30.06.2010 1st
Quarter |
30.09.2010 2nd
Quarter |
|
Net Sales |
|
36296.100 |
36289.200 |
|
Total Expenditure |
|
28819.100 |
29174.100 |
|
PBIDT (Excl OI) |
|
7477.000 |
7115.100 |
|
Other Income |
|
0.000 |
0.000 |
|
Operating Profit |
|
7477.000 |
7115.100 |
|
Interest |
|
764.700 |
664.800 |
|
Exceptional Items |
|
0.000 |
0.000 |
|
PBDT |
|
6712.300 |
6450.300 |
|
Depreciation |
|
4650.300 |
4764.600 |
|
Profit Before Tax |
|
2062.000 |
1685.700 |
|
Tax |
|
45.600 |
25.900 |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
2016.400 |
1659.800 |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
2016.400 |
1659.800 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
9.79 |
10.14 |
15.50 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
9.86 |
11.03 |
16.62 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
7.39 |
6.97 |
10.58 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.10 |
0.10 |
0.31 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.90 |
0.96 |
2.57 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.01 |
1.48 |
0.59 |
LOCAL AGENCY FURTHER INFORMATION
Management Discussion
And Analysis Report
Sector
Growth
The year was marked by the uncommonly large new service launches by new
licensees, leading to an over-crowded sector. Resultant hyper-competitive
market conditions led to a steep decline in tariffs and introductory offerings
of free minutes. Consequently, while subscriber growth was high, the sector
revenue growth slowed to 5.1% compared to 22.3% in the preceding year.
Regulatory
Some major regulatory developments for the period were:
TRAI on MNP Regulation and porting charges
The TRAI on November 20, 2009 issued the Mobile Number Portability (MNP)
porting charges regulation. As per it, the porting charges (paid by the
subscriber to the Recipient Operator) should not exceed Rs.
19 per request. The per port transaction charges (payable by the Recipient
Operator to the Mobile Number Portability Service Provider) for processing the
porting request of a mobile number, has been fixed at Rs.
19.
Extension of timeline for implementation of MNP
The Dot, keeping in view the complexity and enormity of the testing
involved before MNP is implemented, and the present status of implementation by
some operators, has extended the timeline for implementation of MNP from June
30, 2010 to October 31, 2010.
Amendment in licensing conditions on equipment purchase
The Dot, vide its letter of December 03, 2009 and subsequent
clarifications, issued an amendment in the licensing conditions (valid for
CMTS, UASL, NLD and ILD) for telecom equipment purchase. Licensees, before
issuing purchase orders relating to telecom equipment, are required to make an
application giving details of the original equipment manufacturer / supplier
for security clearance from the Dot. The revert from the Dot on applications is
to come within 30 days, failing which the licensee can take it as a deemed
approval.
Auction of 3G and BWA Spectrum
The Dot, on February 25, 2010 issued Notice Inviting Applications (NIA),
from prospective bidders to participate in the auction of 3G and BWA spectrum.
As per the NIA, 3 slots of 3G spectrum were available in 17 service areas and 4
slots were available in 5 service areas, while in the case of BWA, 2 slots were
available in each service area for auction. The NIA included auctioning rules,
timelines and other procedural requirements. The 3G auction started on April
09, 2010 and concluded on May 19, 2010 after 183 rounds of bidding. The BWA
auction started on May 24, 2010 and concluded on June 11, 2010 after 117 rounds
of bidding.
Discussion on
Consolidated Financial Statements and Operational Performance
Subscriber Base
As on March 31, 2010, the company had 63.82 mn
subscribers representing a 48.4% increase compared to the subscriber base of
43.02 mn on March 31, 2009.
Revenues
Revenues and Other Income for the year ended March 31, 2010, stood at
Rs.124,990 mn, as compared to Rs.
101,544 mn during the previous year, showing a growth
of 23.1%, in a sector which grew at 5.1%. VAS Revenues grew at 43.2% over the
previous year. Revenues from Long Distance services, and from Passive
Infrastructure, forming part of total revenues after inter segment
eliminations, were Rs. 858 mn,
and Rs. 677 mn
respectively. Growth in Other Income was predominantly due to reversals arising
from conversion of lease agreements from finance lease to operating lease.
Operating Expenses
Operating Expenses stood at Rs. 90,399 mn vis-ŕ-vis Rs. 73,180 mn for the previous year. The contributors to the total
Operating Expense of 72.3% were Personnel Expenditure 5.2%, Network Operating
Expenses 25.0%, License and WPC charges 10.8%, Roaming and Access Charges
14.4%, Subscriber Acquisition and Servicing Expenses 9.3%, Advertisement and
Business Promotion Expenditure 3.4% and Administration and Other Expenditure
4.3%.
Profit before Interest, Depreciation and Amortisation
The Company generated a Profit before Interest, Depreciation and Amortisation of Rs. 34,591 mn for the year ended March 31, 2010, a growth of 22%
compared to the previous year. The operating profit margin for the current
financial year stood at 27.7 % compared to 27.9% for the previous year.
Depreciation, Amortisation and Finance
Charges
Depreciation And Amortisation expenses
increased to Rs. 20,149 mn
for the year ended March 31, 2010 showing an increase by 43.6%, as against Rs. 14,028 mn for the previous
year. Net finance charges for the year decreased by 19% from Rs. 4,945 mn to Rs. 4,005 mn, mainly due to
foreign exchange fluctuations.
Profits and Taxes
For the year ended March 31 2010, Cash Profit from operations stood at Rs. 30,555 mn, a growth of 31.1%
over the previous year. The Profit before Tax for the year stood at Rs. 10,754 mn, an increase of
14.5% over the previous year. The tax charge for the year, mainly consisting of
deferred tax liability, stood at Rs. 1,215 mn. The Net Profit for the year ended March 31, 2010 was Rs. 9,539 mn, resulting in a net
profit margin of 7.6%.
Capital Expenditure
During the year ended March 31, 2010, the Company (including the
erstwhile Spice Communications Limited) incurred a capital expenditure of Rs. 39,814 mn.
Balance Sheet
During the year, the paid-up equity share capital of the company
increased by Rs. 1,997.43 mn,
due to issuance of 199.15 mn equity shares to the
shareholders of erstwhile Spice Communications Limited upon its amalgamation
with the Company and issuance of 0.59 mn equity
shares to the employees pursuant to exercise of stock options granted under
Employee Stock Option Scheme, 2006. The total shareholders’ funds stood at Rs. 113,704 mn as at March 31,
2010.
The Gross Block stood at Rs. 270,585 mn, and Net Block including Capital Work in Progress (CWIP)
stood at Rs. 187,143 mn as
at March 31, 2010. Treasury investments in mutual funds decreased by Rs. 9,148 mn during the year and
stood at 11,304 mn as at March 31, 2010. During the
year, Current Assets decreased due to utilization of surplus funds lying in
fixed deposits, and hence the net Current Liabilities as at March 31, 2010
stood at Rs. 4,050 mn.
Outlook
The business models of telecom operators are being stress-tested by
overcapacity led hyper-competition. With several licensees operating at tariffs
lower than cost, the eventual phasing out of this period of over-capacity is
inevitable. The Company, with a focus on strengthening its leadership position
in its incumbent service areas, and a calibrated and measured approach to newer
service areas, is well placed to emerge competitively stronger. The telecom
sector provides lucrative long term opportunities for strong operators, of which
the Company is one of a handful.
Directors’ Report
Performance Review
During the year, The Company’s operations covered all service areas of
India. The total revenue for the year ended March 31, 2010 stood at Rs.124,990 mn against Rs. 101,544 mn in the previous year, registering a growth of 23%. The
Net Profit for the financial year stood at Rs. 9,539 mn against Rs. 8,816 mn in the previous year.
Review of
Consolidated Operations
During the year, Spice Communications Limited which had operations in
the
Dividend
As the Company does not have distributable profits as on March 31, 2010,
The Directors regret their inability to recommend any dividend for the year
under consideration.
Share Capital
During the year , the Company issued and allotted 199,153,469 Equity
Shares of Rs. 10/- each, fully paid-up, to the equity
shareholders of Spice Communications Limited (Spice), in the ratio of 49 equity
shares of the Company for every 100 equity shares held in Spice, as per the
approved Scheme of Amalgamation. Further, the Company issued and allotted
589,114 Equity Shares of Rs. 10/- each to the Option
Grantees pursuant to the exercise of stock options under Employee Stock Option
Scheme, 2006. Consequently, the paid-up equity share capital of the Company
increased by Rs. 1,997.43 mn
to Rs. 32,998.38 million.
Credit Ratings
The Company has received P1+ rating for its short term debt program from
CRISIL, and an AA rating for its long term debt program from CARE.
Capital
Expenditure
During the year, the Company rolled out services in the Orissa, Tamil Nadu, Jammu and
Kashmir, Kolkata, West Bengal, Assam and North East
service areas, thereby making it a nationwide service provider. Moreover, The
Company continues to expand network in the incumbent service areas for enhanced
coverage and quality. The Company incurred a capex of
Rs. 39,814 mn (including
the capex incurred by erstwhile Spice Communications
Limited) during the financial year 2009-10.
The Company also made significant progress in rolling out its National
Long Distance (NLD) network, and augmenting the International Long Distance
(ILD) network. As at end March, 2010, it carried about 70% and 62% of its
captive NLD and ILD traffic respectively.
Significant
Developments:
• Merger of Spice Communications Limited with
the Company
During the financial year 2009-10, Spice Communications Limited (Spice),
having mobility operations in Punjab and Karnataka service areas including
license for National and International Long Distance operations, has been
merged with the Company, pursuant to sanction of the Scheme of Amalgamation by
the Hon’ble High Court of Gujarat and the Hon’ble High Court of Delhi. The High Court Orders have
been filed with the respective Registrar of Companies, pursuant to which the
Scheme become effective from March 1, 2010.
• De-merger of Telecom Undertaking (including Unified Access Services
License of the Bihar service area from Aditya
Birla Telecom Limited (ABTL) to the
Company)
The Directors wish to inform that the telecom operations of the Bihar
service area (alongwith certain assets and
liabilities) which were hitherto carried out in Aditya
Birla Telecom Limited (a wholly owned subsidiary)
have been de-merged into the Company, pursuant to the Scheme of Arrangement
approved by the Hon’ble High Court of Gujarat, and
the Hon’ble High Court of Bombay. The said Scheme
became effective on 1st March, 2010 with an Appointed Date of 1st April, 2009.
• De-merger of
Licenses
The Scheme of Arrangement filed by the Company with the Hon’ble High Court of Gujarat for de-merging the UAS
Licenses in respect of Punjab and Karnataka service areas to an eligible entity
has been withdrawn. Similarly, the Scheme of Arrangement filed by
erstwhile Spice Communications Limited with the Hon’ble
High Court of Delhi for de-merging UAS Licenses in respect of Delhi, Haryana, Mahrashtra and Andhra
Pradesh service areas has also been withdrawn.
• ISP License
In April, 2010, The Company received a License for providing pan India
Internet Services (ISP License). This License will enable the Company to offer
a gamut of services to the enterprise segment on a national basis.
• Auction of 3G Spectrum
The Department of Telecommunications, Ministry of Communications and
Information Technology had conducted an Auction for 2.1 GHz band (3G Spectrum)
in the month of April, 2010. After the bidding spanning over 34 days and 183
rounds, The Company emerged winner in 11 Service Areas viz. Maharashtra,
Gujarat, Andhra Pradesh, Kerala, Punjab, Haryana, Uttar Pradesh (E), Uttar Pradesh (W), Madhya
Pradesh, Himachal Pradesh and Jammu and Kashmir, at a
total cost of Rs. 5,7685.900 millions. The 3G footprint
of the Company in the 11 service areas accounts for as much as 81% of its
national revenue, of these 11, the Company is number 1 in 4 service areas , and
number 2 in another 3 service areas.
Awards and
Recognitions
Some key awards and recognitions received by The Company are:
• The Company has been ranked 6th in Investor Relations and ranked 7th
in Corporate Governance amongst Indian Companies by Finance Asia magazine’s
annual poll of investors and analysts.
•· Brand !dea has been ranked the 4th Buzziest Brand by Agencyfaqs.
• Idea won the award for the ‘Best Ad Campaign’ at tele.net Telecom
Operator Awards, 2010.
• The campaign “What an Idea Sirjee” continue
to win accolades with the campaign recently winning Silver at EFFIES 2009 for
“Democracy” Campaign, while the ‘Walk when you Talk’ Campaign was adjudged the
2nd best campaign of the year by Brand Wagon (FE) and ‘All about Ads’ on NDTV
Profit.
New Initiatives
and Alliances
During the year, The Company made extensive progress on the marketing
and customer care front by introducing various innovative products and services
and also entered into various alliances. Some of these are:
• The Company deployed a best-in-class Interactive Voice Response (IVR)
system, based on a highly efficient technology architecture deployed by IBM in
partnership with CISCO. This IVR is the world’s largest Cisco CVP deployment in
telecom, and the largest deployment in APAC (Asia Pacific American Coalition).
The Company currently manages close to 5 million customer interactions per day
using this IVR.
• The Company conceptualized and launched “Insta
Alert”, an innovative tool to convey latest offers and service related
communication to customers who latch on to the network after a period of
inactivity. This application was nominated for the global GSM Awards at
Barcelona.
• Idea launched a standardized self care portal “CARE” which gives
information to the customer on products / tariffs and information of their
account such as billed amount, last recharge, last calls, unbilled amount, etc.
• Idea was the first operator to launch “Pre Tones”. Pre Tones is an
innovative VAS service which allows the user to listen to the caller tones of
his / her own choice while making an outgoing call instead of listening to the
respondent’s caller tone.
• Idea launched 3G Compatible Net Setter Data Cards to cater to the
needs of its data -savvy customer segments.
• As one of Idea’s new VAS activities, Idea launched “Buddy Recharge” –
a unique peer-to-peer talk time transfer product.
• Idea strengthened its brand through a series of media properties like
the Idea Cup, Cricket Series, Talk for India,
Bingo Night, etc. Idea associated with IPL teams, Deccan
Chargers and Delhi Daredevils as Principal Partners.
• Idea also launched Oongli Cricket during the
IPL season, which was well received.
Subsidiaries and
Joint Ventures
The Company has the following subsidiaries and joint ventures:
Subsidiaries
• Aditya Birla
Telecom Limited (ABTL), holds 16% shareholding in Indus Towers Limited and 100%
shareholding in ICTIL.
• Idea Cellular Services Limited (ICSL), provides manpower services to
the Company.
• Idea Cellular Infrastructure Services Limited (ICISL), is a tower
company owning towers in
• Idea Cellular Towers Infrastructure Limited (ICTIL), holds towers
de-merged from the Company. ICTIL will subsequently merge into Indus Towers
Limited.
• Carlos Towers Limited (Carlos), became subsidiary pursuant to the
amalgamation of Spice Communications Limited with the Company and is presently
not having any operations.
• Swinder Singh Satara
and Company Limited (SSS and Co.), is engaged in the business of sale and
purchase of Data Cards, mobile hand sets and Fixed Wireless Phones.
Joint Ventures
Indus Towers Limited (Indus), in which ABTL holds a 16% stake, is a
joint venture between the Bharti group, Vodafone Essar group and the Company (through ABTL), and provides
passive infrastructure services in 15 service areas.
Fixed Assets:
- Land
- Leasehold
Land
- Building
- Furniture
and Fixture
- Office
Equipment
- Vehicle
- Plant
and Machinery
About Idea Cellular Limited
A leading GSM mobile services operator
with over 51 Millions subscribers, Idea Cellular along with Spice
Communications and ABTL, has licenses and spectrum to operate in all 22 service
areas of
Idea is part of the Aditya Birla Group,
anchored by an extraordinary force
of over 130,000 employees belonging to 30 nationalities and derives over half
of its revenues from operations outside
Company Information
IDEA Cellular is a publicly listed company, having listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) in March 2007.
IDEA Cellular is a leading GSM mobile services operator in
A frontrunner in introducing revolutionary tariff plans,
IDEA Cellular has the distinction of offering the most customer friendly and
competitive Pre Paid offerings, for the first time in
IDEA offers affordable and world-class mobile services to varied segments of
mobile users. Be it high end users, or low-end, price sensitive consumers - IDEA's tariff plans are designed to suit every pocket.
With a vision of delighting its customers while meeting their individual communication needs anytime, anywhere, IDEA offers seamless coverage to roaming customers traveling to any part of the country, as well as to international traveling customers across over 200 countries. IDEA Cellular has partnership with over 400 operators to ensure that customers are always connected while on the move, within the country or other parts of the world.
IDEA is the winner of ‘The Emerging Company of the Year
Award' at The Economic Times Corporate Excellence Awards 2008-09. The company
has received several other national and international recognitions for its
path-breaking innovations in mobile telephony products and services. It won the
GSM Association Award for “Best Billing and Customer Care Solution” for 2
consecutive years. It was awarded “Mobile Operator of the Year Award -
IDEA Cellular is an Aditya Birla Group Company,
Service Areas
The Indian telecommunications market for mobile services is divided into 22 "Service Areas" classified into "Metro", Category "A", Category "B" and Category "C" service areas by the Government of India. These classifications are based principally on a Service Area's revenue generating potential.
IDEA is a pan-India operator with services being made available in all parts of the country.
The telecom service areas have been divided into Established and New Service Areas.
Established Service Areas
The established service areas are Delhi, Andhra Pradesh, Gujarat, Maharashtra, Haryana, Kerala, Madhya Pradesh and Uttar Pradesh (West).
Licenses for the
In June 2001, the mobile operations in Madhya Pradesh Service Area were fully integrated with IDEA through an acquisition of RPG Cellcom Limited. In October 2001, the license for Delhi Service Area was acquired during the fourth mobile license auction, with network rollout and commercial launch in November 2002.
In January 2004, Escotel Mobile Communications Private Limited ("Escotel"), was acquired with its original licenses in the Service Areas of Haryana, Uttar Pradesh (West) and Kerala. All these Service Areas were re-branded and integrated with IDEA in June 2004.
New Service Areas
The New Service Areas are Uttar Pradesh (East), Rajasthan, Himachal Pradesh, Bihar, Mumbai, Karnataka, Punjab, Orissa, Chennai and Tamilnadu, Jammu and Kashmir, Kolkata and West Bengal, and Assam and North East.
Licenses for Uttar Pradesh (East), Rajasthan and Himachal Pradesh were acquired through the acquisition of Escotel (Escorts Telecommunications Limited).
Idea launched its services in Mumbai and
Brand Idea was launched in Karnataka and
The company has expanded its pan-India presence through service launches in Orissa, Chennai and Tamilnadu,
Jammu and Kashmir, Kolkata and West Bengal, and the
North East states in FY10.
CMT REPORT (Corruption, Money Laundering and
Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a
proceedings for violating money-laundering, anti-corruption or bribery or
international economic or anti-terrorism sanction laws or whose assets were
seized, blocked, frozen or ordered forfeited for violation of money laundering
or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject are
derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.84 |
|
|
1 |
Rs.69.32 |
|
Euro |
1 |
Rs.59.79 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
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 |
|
45 |
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 |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.