MIRA INFORM REPORT
|
Report Date : |
08.01.2011 |
IDENTIFICATION DETAILS
|
Name : |
TATA COMMUNICATIONS LIMITED |
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Formerly Known As : |
Videsh Sanchar Nigam LIMITED |
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Registered Office : |
Videsh Sanchar Bhavan, |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
19.03.1986 |
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Com. Reg. No.: |
11-39266 |
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CIN No.: [Company
Identification No.] |
L64200MH1986PLC039266 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMV03188D / MUMV07840A |
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PAN No.: [Permanent
Account No.] |
AAACV2808C |
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Legal Form : |
Public Limited Liability Company. The Shares of the Company are Listed on the Stock Exchanges. |
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Line of Business : |
Providing Telecommunication and Internet Services. |
RATING & COMMENTS
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MIRA’s Rating : |
A (69) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 290000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Tata is country’s premier industrial house having fine track. Subject is a well established and a reputed company of Tata group. Financial position of the company is sound. Trade relations re reported as fair. Business is active. Payments are regular and as per commitments. The company can be considered good for normal business dealing 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) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INFORMATION PARTED BY
|
Name : |
Mr. Anand Sakpal |
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Designation : |
Finance Department |
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Date : |
03.01.2011 |
LOCATIONS
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Registered Office : |
Videsh Sanchar Bhavan, |
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Tel No.: |
91-22-66578765/66591965/66591966 |
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Fax No.: |
91-22-66395162 |
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E-Mail: |
heman.desai@tatacommunications.com
satishranade@tatacommunications.com satish.ranade@tatacommunications.com tatacommunications.com |
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Websites : |
http://www.tatacommunications.com |
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Head Office : |
Lokmanya Videsh
Sanchar Bhawan, Kashinath Dhuru Marg, Prabhadevi, Mumbai - 400 028, |
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Tel. No.: |
91-22-24312700 / 56578765 / 66578765 / 2624020 |
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DID No. : |
91-22-24310510 |
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Fax No.: |
91-22-24322678 / 56395162 / 66395162 / 2624027 |
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Info Fax : |
91-22-24320220 |
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Tele Gram : |
VIDESHSANCHAR |
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E-Mail : |
heman.desai@tatacommunications.com
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Corporate Office
: |
C21 and C36, G Block, Bandra Kurla Complex, Mumbai – 400098, |
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Tel No.: |
91-22-3348896/ 66578765 |
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Fax No.: |
91-22-66395162 |
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E mail: |
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Regional Office
: |
Tower A, 6th Floor, Corporate
Centre, Plot No. C – 21 and C – 36, Bandra Kurla Complex, Adjacent to MtNL,
Bandra (East), Mumbai – 400051, Tel No.: 91-22-66289200 Fax No.: 91-2267659302
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Branches : |
Located at :-
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Overseas Office : |
·
Tata Communications ·
Tata Communications ·
Tata Communications Middle East and ·
Tata Communications ·
Tata Communications ·
Tata Communications ·
Tata Communications ·
·
Tata Communications ·
Tata Communications ·
Tata Communications Fax No.: 49 (0)69 9746 1155 |
DIRECTORS
As on 31.03.2010
|
Name : |
Mr. Subodh Bhargava |
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Designation : |
Chairman and Managing Director |
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Date of Birth/Age : |
30.03.1942 |
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Qualification : |
B.E. (Mech.) |
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Date of Appointment : |
15.05.2002 |
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Other
Directorship Held: |
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Name : |
Mr. N. Srinath |
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Designation : |
Managing Director and Chief Executive Officer |
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Date of Birth/Age : |
08.07.1962 |
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Qualification : |
B.E. (Mech), MBA |
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Date of Appointment : |
13.02.2002 (Appointed as Managing Director on 02.02.2007) |
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Other
Directorship Held: |
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Name : |
Mr. Kishor Chaukar |
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Designation : |
Panatone Nominee |
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Date of Birth/Age : |
01.08.1947 |
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Qualification : |
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Date of Appointment : |
01.07.2002 |
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Other
Directorship Held: |
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Name : |
Mr. P. V. Kalyanasundaram |
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Designation : |
Independent |
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Date of Birth/Age : |
25.02.1958 |
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Qualification : |
Bachelor of Arts
degree in history, from the |
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Date of Appointment : |
09.09.2005 |
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Name : |
Dr. V.R.S. Sampath |
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Designation : |
Independent |
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Date of Birth/Age : |
12.08.1956 |
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Qualification : |
Bachelor of Arts degree in History from the Degree from University |
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Date of Appointment : |
09.09.2005 |
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Name : |
Mr. Amal Ganguli |
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Designation : |
Independent |
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Date of Birth/Age : |
17.10.1939 |
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Qualification : |
Fellow of the Institute of Chartered Accountants in England and Wales,
Fellow of Institute of Chartered Accountants of India, Fellow of British
Institute of Management, member of New Delhi Chapter of Institute of Internal
Auditors, Florida, USA, Alumnus of IMI, Geneva |
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Date of Appointment : |
17.07.2006 |
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Name : |
Mr. Vinod Kumar |
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Designation : |
Director |
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Date of Birth/Age : |
14.12.1965 |
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Qualification : |
B.E. (Hons), MBA |
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Date of Appointment : |
02.02.2007 |
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Other Directorship Held: |
VSNL Global Services Limited |
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Name : |
Mr. S. Ramadorai |
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Designation : |
Director |
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Date of Birth/Age : |
06.10.1944 |
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Qualification : |
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Date of Appointment : |
28.06.2007 |
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Other Directorship Held: |
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Name : |
Mr. A K Srivastava |
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Designation : |
Government Nominee |
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Name : |
Mr. Arun Gandhi |
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Designation : |
Pantone Nominee |
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Name : |
Mr. Ashok Jhunjhunwala |
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Designation : |
Additional Director |
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Name : |
Mr. Manish Sinha |
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Designation : |
Government Nominee |
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Name : |
Mr. Ishaat Hussain |
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Designation : |
Director |
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Date of Birth/Age : |
02.09.1947 |
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Qualification : |
Graduated in
Economics from |
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Date of Appointment : |
01.07.2002 |
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Name : |
Mr. Pankaj Agrawal |
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Designation : |
Government Nominee |
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Name : |
Dr. Mukund Rajan |
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Designation : |
Panatone Nominee |
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Date of Birth/Age : |
05.04.1968 |
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Qualification : |
Bachelor of
Technology from IIT |
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Date of Appointment : |
06.05.2005 |
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Name : |
Mr. N. Parmeshwaran |
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Designation : |
Government Nominee |
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Name : |
Mr. H P Mishra |
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Designation : |
Nominee (Government) |
KEY EXECUTIVES
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Name : |
Mr. Satish Ranade |
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Designation : |
Company Secretary and Chief Legal Officer |
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Name : |
Mr. Sanjay Baweja |
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Designation : |
Chief Financial Officer |
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 |
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74,446,885 |
28.12 |
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142,581,988 |
53.86 |
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217,028,873 |
81.98 |
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Total shareholding of Promoter and Promoter Group (A) |
217,028,873 |
81.98 |
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(B) Public Shareholding |
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|
3596793 |
1.36 |
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|
2314787 |
0.87 |
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|
29763383 |
11.24 |
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|
3138169 |
1.19 |
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|
38813132 |
14.66 |
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|
1346833 |
0.51 |
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|
7046380 |
2.66 |
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|
262334 |
0.10 |
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|
241000 |
0.09 |
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1,200 |
- |
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|
7,250 |
- |
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|
232550 |
0.09 |
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8896547 |
3.36 |
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Total Public shareholding (B) |
47709679 |
18.02 |
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Total (A)+(B) |
264738552 |
100.00 |
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(C) Shares held by Custodians and against which Depository Receipts
have been issued |
20261448 |
-- |
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Total (A)+(B)+(C) |
285,000,000 |
-- |
(1) Indian
Central Government / State Government(s)
Individual shareholders holding nominal
share capital up to Rs. 0.100 MillionBUSINESS DETAILS
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Line of Business : |
Providing Telecommunication and Internet Services. |
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Products : |
Product
Description: International Telecommunications Services |
GENERAL INFORMATION
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No. of Employees : |
2926 (Approximately) |
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Bankers : |
·
Bank of · Citibank Inc. · Deustche Bank · HDFC Bank Limited · Hongkong and Shanghai Banking Corporation · Indian Overseas Bank ·
State Bank of · Axis Bank Limited · Vijaya Bank ·
Royal Bank of ·
Development Bank of · Kotak Mahindra Bank Limited · ICICI Bank Limited |
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Facilities : |
Note 1: Secured by plant and machinery of Rs.1270.000
millions and office equipments of Rs. 5.000 millions and Furniture and fixtures
of Rs. 5.000 millions |
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Banking
Relations : |
---- |
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Auditors : |
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Name : |
S.B. Billimoria and Company Chartered Accountants |
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Collaborators : |
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Other Subsidiary
(held indirectly ) |
·
Tata Communications ( ·
Tata Communications ( ·
Tata Communications Services ( ·
Tata Communications ( ·
Tata Communications (Canda) ULC ·
VSNL International (IPCO) LLC ·
Tata Communications (US) Inc. ·
VSNL International (ITXC) Corporation ·
Tata Communications ( ·
VSNL International (Global) Corporation ·
Tata Communications ( ·
Tata Communications ( ·
Tata Communications ( ·
Tata Communications Deutschland GmbH ·
Tata Communications ( ·
Tata Communications ( ·
Tata Communications ( ·
Tata Communications ( ·
TCPoP Communication GmbH ·
Tata Communications ( ·
Tata Communications ( ·
Tata Communications ( ·
ITXC IP Holding S.A.R.L ·
Teleglobe International ·
TLBG ·
Tata Communications (Nordic) AS ·
VSNL International ( ·
Tata Communications ( ·
Tata Communications (Protugal) Instalacao E
Manutencao De Redes LDA ·
Tata communications ( ·
Tata communications ( ·
Teleglobe Asia Pte Limited ·
Videsh Sanchar Nigam ·
Tata Communications ( ·
Tata Communications (Switzedrland) GmbH ·
Tata Communications ( ·
VSNL Telecommunications ( ·
Teleglobe Bermuda Limited ·
VSNL International ( ·
VSNL UK Limited ·
Teleglobe International Limited |
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Subsidiaries (Held Directly) : |
v Tata Communications Internet Services Limited v
Tata Communications Banking Infrasolutions
Limited v
Tata Communications Transformations Services
Limited v
Tata Communications Lanka Limited v
Tata Communications Services ( v
Tatat Communications International Pte.
Limited v
VSNL SNOSPV Pte Limited v
S and A Internet Services Private Limited |
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Joint Venture : |
· United Telecom Limited ·
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Joint Venture of
wholly owned subsidiary : |
· SEPCO Communications (Pty) Limited. (Held through VSNL SNOSPV Pte. Limited.) · Neotel Pty Limited. (Subsidiary of SEPCO Communications (Pty) Limited) · BitGravity Inc. |
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
300000000 |
Equity Shares |
Rs. 10/- each |
Rs. 3000.000 Millions |
Issued Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
285000000 |
Equity shares |
Rs. 10/-
each |
Rs. 2850.000
Million |
Of the above:
1) 60000000 (2009: 60000000) shares have been fully paid up pursuant to a contract without payment being received in cash
2) 210000000 (2009: 210000000) shares have been allotted as fully paid bonus shares by capitalisation of General Reserve
3) 15000000 (2009:15000000) shares are allotted as fully
paid up by way of Euro issue represented by 7500000 American Depository Receipts
(ADRs)
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 |
2850.000 |
2850.000 |
2850.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
69957.800 |
65130.500 |
62623.400 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
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NETWORTH |
72807.800 |
67980.500 |
65473.400 |
|
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LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
12817.600 |
12888.200 |
0.000 |
|
|
2] Unsecured Loans |
13571.500 |
10390.500 |
7778.000 |
|
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TOTAL BORROWING |
26389.100 |
23278.700 |
7778.000 |
|
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DEFERRED TAX LIABILITIES |
1751.100 |
1332.500 |
0.000 |
|
|
|
|
|
|
|
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TOTAL |
100948.000 |
92591.700 |
73251.400 |
|
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|
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|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
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|
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FIXED ASSETS [Net Block] |
45048.000 |
40979.400 |
29889.000 |
|
|
Capital work-in-progress |
3861.500 |
5363.800 |
5437.700 |
|
|
|
|
|
|
|
|
INVESTMENT |
25013.000 |
27236.700 |
21037.700 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
12.500
|
15.600
|
54.600
|
|
|
Sundry Debtors |
6322.900
|
13432.200
|
10631.300
|
|
|
Cash & Bank Balances |
1108.600
|
3723.700
|
796.300
|
|
|
Other Current Assets |
1966.100
|
2527.100
|
0.000
|
|
|
Loans & Advances |
37503.700
|
28274.200
|
29919.400
|
|
Total
Current Assets |
46913.800
|
47972.800
|
41401.600
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
11572.800
|
18114.100
|
|
|
|
Other Current Liabilities |
6568.800
|
7960.800
|
21914.700
|
|
|
Provisions |
1746.700
|
2886.100
|
2599.900
|
|
Total
Current Liabilities |
19888.300
|
28961.000
|
24514.600
|
|
|
Net Current Assets |
27025.500
|
19011.800
|
16887.000
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
100948.000 |
92591.700 |
73251.400 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Telecommunication Services |
32180.400 |
37494.300 |
32833.000 |
|
|
|
Other Income |
1654.200 |
2318.000 |
1820.300 |
|
|
|
TOTAL (A) |
33834.600 |
39812.300 |
34653.300 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Salaries and Related Costs |
4184.400 |
|
|
|
|
|
Network Costs |
14150.400 |
17613.700 |
26744.400 |
|
|
|
Operating And other Expenses |
6381.200 |
7860.200 |
|
|
|
|
Exceptional Items |
[2182.800] |
[2510.500] |
|
|
|
|
TOTAL (B) |
22533.200 |
26518.700 |
26744.400 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
11301.400 |
13293.600 |
7908.900 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
2460.800 |
1906.000 |
396.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
8840.600 |
11387.600 |
7512.900 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/ AMORTISATION (F) |
5747.300 |
4252.700 |
3013.100 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
3093.300 |
7134.900 |
4499.800 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
[1738.500] |
1975.400 |
1455.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
4831.800 |
5159.500 |
3044.600 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
20993.800 |
18923.000 |
NA |
|
|
Add |
ADJUSTED
FOR PROFIT FOR MERGER OF VSNL BROADBAND LIMITED (VBL) |
-- |
27.200 |
NA |
|
|
Less: |
Deferred
Tax Adjustment on Merger of VBL |
-- |
74.400 |
NA |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend |
-- |
1282.500 |
NA |
|
|
|
Tax on Dividend |
-- |
218.000 |
NA |
|
|
|
General Reserve |
483.200 |
516.00 |
NA |
|
|
|
Debenture Redemption Reserve |
3548.400 |
1025.000 |
NA |
|
|
BALANCE CARRIED
TO THE B/S |
21794.000 |
20993.800 |
NA |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Revenue from telecommunication services |
7743.100 |
8653.200 |
10017.100 |
|
|
|
Interest Income |
366.700 |
415.800 |
145.800 |
|
|
|
Dividend Income |
41.000 |
39.600 |
0.000 |
|
|
|
Other Income |
164.400 |
223.400 |
189.800 |
|
|
TOTAL EARNINGS |
8315.200 |
9332.000 |
10352.700 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Stores And Spares |
123.000 |
114.200 |
11.400 |
|
|
|
Capital Goods |
2510.900 |
4583.900 |
3127.700 |
|
|
TOTAL IMPORTS |
2633.900 |
4698.100 |
3139.100 |
|
|
|
|
|
|
|
|
|
|
Basic/ Diluted
Earnings Per Share (Rs.) |
16.95 |
18.10 |
10.94 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2010 1st
Quarter |
30.09.2010 2nd
Quarter |
|
Net Sales |
|
8440.100 |
8237.900 |
|
Total Expenditure |
|
6250.600 |
6178.500 |
|
PBIDT (Excl OI) |
|
2189.500 |
2059.400 |
|
Other Income |
|
271.900 |
202.700 |
|
Operating Profit |
|
2461.400 |
2262.100 |
|
Interest |
|
434.600 |
465.600 |
|
Exceptional Items |
|
0 |
0 |
|
PBDT |
|
2026.800 |
1796.500 |
|
Depreciation |
|
1433.200 |
1477.000 |
|
Profit Before Tax |
|
593.600 |
319.500 |
|
Tax |
|
197.300 |
77.100 |
|
Provisions and contingencies |
|
0 |
0 |
|
Profit After Tax |
|
396.300 |
242.400 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
14.28
|
12.96 |
8.79 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
9.61
|
19.03 |
13.71 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.36
|
8.02 |
6.31 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.04
|
0.10 |
0.07 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.64
|
0.77 |
0.49 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.36
|
1.66 |
1.69 |
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITORS
DETAILS AVAILABLE FOR
(Rs.
In millions)
|
PARTICULARS |
AS ON 31.03.2010 |
AS ON 31.03.2009 |
AS ON 31.03.2008 |
|
Creditors for interconnect charges |
5242.200 |
10158.400 |
NA |
|
Dues of micro, small and medium enterprise |
12.700 |
6.900 |
NA |
|
Others |
6317.900 |
7948.800 |
NA |
NOTE:
- There are no dividends due and outstanding for a period
exceeding seven years.
- Includes Rs.10.22 crores overdrawn book bank balance (2009:
Rs. 86.04 crores)
- Sundry
creditors - others includes due to subsidiary companies joint ventures and
associate
|
PARTICULARS |
AS ON 31.03.2010 |
AS ON 31.03.2009 |
|
Tata Communications ( |
141.700 |
129.200 |
|
Tata Communications Lanka Limited |
0.100 |
-- |
|
Tata Communications Banking InfraSolutions Limited |
2.000 |
-- |
|
Neotel Pty Limited |
29.600 |
-- |
|
Videsh Sanchar Nigam |
1.800 |
1.800 |
|
Tata Communications (Hongkong) Limited — |
-- |
0.600 |
|
Tata Communications International Pte Limited |
-- |
50.200 |
|
Tata Communications Internet Services Limted |
1.800 |
-- |
|
United Telecom Limited |
91.100 |
93.200 |
|
Tata Communications Transformation Services Limited |
26.700 |
15.100 |
|
Tata Communications UK Limited |
10.100 |
13.600 |
|
Tata Communications ( |
4.600 |
-- |
HISTORY
Subject was formerly known as Videsh Sanchar Nigam Limited
is a part of the $29 billion Tata Group unites the industry and market
expertise of VSNL. A leading provider of a new world of communications was
incorporated in the year of 1986 as Videsh Sanchar Nigam Limited. It's a
Fortune 1000 and mid-size enterprises. The Company work with the fields of
transmission IP converged voice mobility managed network connectivity hosted
data center communications solutions and business transformation services to
global and Indian enterprises and service providers as well as broadband and
content services to Indian consumers.
The company has benchmarked in Intelsat Business Service in the year 1992 a
dedicated satellite-based service that provides high speed high quality data
circuits on a point-to-point basis through earth stations strategically located
near the customer's premises and also has entered the era of mobile
communications by commissioning its own Land Earth Station (LES) at Arvi near
Pune. During the period 1993 introduced Inmarsat-C service which permits
transmission of messages via small portable terminals and a video conferencing
service (both domestic and international) through studios located at the
company's international gateways at Mumbai New Delhi
The Company has introduced the `Universal Connect' services jointly
with TMI (Tele Media International) a wholly owned subsidiary of
Telecommunications Italia. The company introduced managed data network services
in January 1997 and offers such services through the global alliance networks
of six global partners BT Cable and
Wireless EQUANT Global One IBM Global Services and Tele Media
International and sets up its own facilities for a Direct-to-Home (DTH)
television service platform for Indian satellite television channels also has
suspended new dial-up connections. A memorandum of understanding was signed
with Electronic Corporation of Goa (ECG) for providing allied services in
satellite communication through an earth station at the Verna software
During the year 2000 the company acquired a controlling
stake in VSNL. Tata Indicom the umbrella brand for Tata Telecom Service starts
operations. VSNL formerly a government-owned company was privatised and became
a Tata Group company in February 2002. In April of the year 2003 VSNL joined
hands with Tata Tele services Tata Internet Services and Tata Net to form the Tata
Indicom Enterprise Business Unit. This unit provides specialised sales and
marketing coverage to the top 400-500 Indian corporate accounts offering
integrated voice and data solutions under the Tata Indicom brand through a
single interface. In June of the same year VSNL Lanka Limited . a wholly owned
subsidiary set up by VSNL in
VSNL has signed interconnect agreements/arrangements with
all domestic cellular service providers and private basic operators for direct
termination and pick up of International Long Distance (ILD) traffic. VSNL
acquired Tyeo Global Network in 2005 and becomes one of the world's largest
providers of submarine cable bandwidth. In 2006 VSNL acquired Teleglobe growing
its global reach operational strengths and deep carrier relationships; VSNL
re-brands SNO as Neotel in
In April 2008 another one expansion of its Global VPN
service to
The expansions of the company global voice network and all areas represents
further execution of the Company's mission to expand its global reach and
ability to deliver IP-leveraged communications solutions to businesses and
deliver a new world of communications to consumers worldwide.
Subject was incorporated on 19th March 1986 at Mumbai in
Subject was incorporated to provide international telecommunications
services to and from
In
The company was incorporated in 1986 as a Government of
Government of
In May 2002 the company signed a memorandum of understanding (MoU) with
Antrix the commercial arm of the Indian Space Research Organization (ISRO) for
acquisition of satellite capacity in the
Since the company has no direct access to provide voice services to its
end customers it has decided to invest in Tata Teleservices Limited a company
already holds basic licenses for Andhra Pradesh Tamilnadu Karnataka etc. This
strategic decision has been taken by the company’s board and has decided to
invest up to Rs. 8.5 billion in TTSL’s equity over a seven year period.
Subsequently for the year 2002-2003 the company has invested over Rs. 2.800
billion and picked up 19.9% of TTSL’s equity.
United Telecom Limited a company promoted by VSNL MTNL and TCIL along
with Nepal Ventures Private Limited is providing CDMA based basic service in
PERFORMANCE:
The year saw continued
sluggishness in markets in which the
Company operates. Most
corporates, who are the major
customers of the company, have remained cautious and
focussed on reducing costs and becoming more
efficient thereby limiting the growth in the
addressable market. Despite this,
the Company continued to expand and grow, and has increased its
consolidated revenues to Rs.111.94 billion (previous year Rs.
102.07 billion) and EBIDTA
was at Rs. 10.12 billion (previous
year Rs. 13.66 billion). However, consolidated profit/(loss) after
exceptional items and before tax
was Rs. (6.81) billion (previous
year Rs.
(4.23) billion), whereas profit/(loss)
after tax was Rs. (5.98) billion
(previous year Rs.(3.16)
billion).
On standalone basis, during the year, the
Company earned total revenue
of Rs. 33.83 billion (previous
year Rs.
39.81 billion). Profit before tax
for the year was Rs. 3.09 billion, (previous year Rs.7.13 billion). Profit
after tax was Rs. 4.83 billion (previous year Rs.
5.16 billion).
The Company's profitability
has been affected adversely
by the global economic conditions, nascent stage of some of its
investments and due to increases
in some specific
items of cost. The consolidated
net loss includes Rs. 4.64 billion in respect of the Company's
holding in
Funding:
During the year, the Company continued to borrow for financing its
projects and operations. The
Company issued unsecured debentures
amounting to Rs.7.00 billion in
2009-10. All debentures issued by the Company have been rated AAA'. The trust deeds for the
debentures issued by the Company will be
available for the inspection by the members at the Company's registered office during
normal working hours, 21 days before the date of the
24th Annual General Meeting.
OVERVIEW:
Over the last few years, the Company has consistently pursued its
strategy of providing a range of communication services to enhance
the reach and leadership of
its customers in the
wholesale, enterprise and
retail segments across different geographies. It is leveraging
its integrated wholesale
capability, strong market position in
The Company's focused strategy has enabled it to be
one of
the leading players worldwide in its major business segments,
with operations in more than 50
countries. Tata Communications remains the largest
provider of international wholesale
voice services globally and one
of the largest owners and providers of submarine
cable capacity in the world. The Company
is a global Tier-1 Internet Services
Provider (ISP) and is a major player
in the
growing global IP
Transit market. The
Company also offers telecommunication services
through its subsidiary
in Sri Lanka
and associates/joint ventures in Nepal and South Africa.
In the coming years, the Company will continue
to focus
on redefining telecom services for 'wholesale' commodity and
low-value operations to a partnership-driven, value-enhancing business; on
expanding networks in
During the year, the enterprise customers' demand for greater global connectivity
and services continued to grow,
worldwide broadband
penetration increased and demand for rich media and interactive
digital content continued to
increase globally. This
gave the Company
the opportunity to leverage its Tata Global Network (TGN) of
optical fibre undersea cables and
Internet Protocol (IP) networks to its advantage.
Over the last four years, Tata Communications invested over US$2 billion
in building infrastructure and new service capabilities as well as in entering
new markets. In 2009-10, the Company invested nearly US$509 million towards
capital expenditure and other investments. The Company has
commissioned additional submarine cable systems and is expanding
capacity in the current year, connecting
emerging markets in Asia, the Middle East and
Tata Communications has set up extensive operating framework for servicing the
specific needs of
customers across various
market segments and geographies. The
Company continues to focus on
building long lasting relationships with its customers and business associates
and to lead the industry in responsiveness and
flexibility. The service fulfilment, service assurance and billing functions are integrated into a
single team called Customer Services
and Operations. This provides
the right focus
and synergies across all
'customer touch points' in all stages of the
service life cycle and has led to significantly enhanced
customer satisfaction across the
business segments and geographies.
The Department of Telecommunications (DoT), through a license
amendment dated 3 December 2009, made it mandatory for all telecom
service providers to obtain security
clearances before placing purchase orders for
procuring telecom equipment from
manufacturers who are not Indian
owned/controlled.
Further notifications issued by
the DoT lay down more conditions
relating to the transfer
of technology requirements
to be
imposed on foreign vendors, self certification regarding equipment being
free from malware, etc.
Service providers and vendors are generally finding it difficult
to comply with these conditions. The Company is facing delays in
fulfilment of its customer orders and in
expanding its network infrastructure in
The Company continues to work with the Government of India to
resolve this issue.
Premature
Termination of Monopoly and Compensation:
As reported earlier,
the Government of India
(GOI) had allowed
other players into the
international long distance (ILD) business from
1 April 2002, terminating the Company's exclusivity two
years ahead of schedule. The GoI gave the Company a
compensation package and had given an
assurance prior to the
disinvestment of 2002 that
it would consider
additional compensation, if found necessary, on a detailed review when
undertaken. However, in February
2002, just before the disinvestment of
the Company, the GoI
unilaterally granted a further
dispensation as full and
final settlement of every
sort of claim
against the premature
ILD demonopolisation.
The Company filed a claim in the Mumbai High Court in 2005 which is
yet to come up for hearing.
Under the terms of the share
purchase and shareholders' agreements
signed between the GoI and the strategic partner (the parties)
at the
time of disinvestment, it was agreed
that certain identified lands
would be demerged into a separate
company. It was further provided that if, for
any reason, the Company cannot hive off or demerge the land
into a
separate entity, alternative courses
as stipulated in the
share purchase and shareholders' agreement would be explored. A draft scheme
of demerger was presented to the
Board in April 2005, and the parties are
examining the legality and feasibility of implementing the scheme.
The land
identified
for demerger at different
locations measured 773.13 acres, and
carried a book value
of Rs.1.64 million. As reported earlier,
the VSNL Employees Cooperative Housing Society,
Chennai (Society) had moved the Hon'ble
Delhi High Court in respect of their long pending issue of transfer of
32.5 acres of land situated at Padianallur, Chennai, which was part of the identified surplus land. According to the
order of the Hon'ble High Court, the process of transferring the said land to
the Society was completed during the year.
HUMAN RESOURCES:
The Company invests in continuous training to enhance employee
skills and capabilities and
offers ample avenues to
its employees to
not only contribute but also
learn and grow.
The different corporate
entities that are part of Tata
Communications together
employed 6,457 people as on 31 March 2010 (5,825 on
31 March 2009). Of these, 1,181 (1,050 in the previous year)
were located outside
The Company seeks
to hire, train and retain the
best talent available globally to enable efficient and effective performance
in the competitive market.
At Tata Communications, employees are encouraged to
live the vision and values
adopted by the Company. Integrity
is recognized and rewarded. An employee satisfaction survey is carried
out annually through an independent global agency across all the different
operating locations. This year, more than
94% of the employees participated in this
survey and the
overall employee satisfaction
scores showed a healthy upward trend in
respect of all major parameters
and across all geographies.
The compensation and employee benefit practices of Tata
Communications are designed to be
competitive in the respective geographies where they operate. Employee relations continued to be
harmonious at all the locations, through the process of continuous dialogue and
openness to find mutually acceptable solutions to issues.
AWARDS AND
RECOGNITION:
The Company's transformational initiatives
are being recognised in
* Best Global Wholesale Offering
Award from Capacity magazine, one of the
most important publications for telecommunications
carriers and service providers.
* Global Telecoms Business Innovation Award for International
Wholesale Infrastructure
Transformation and International
Network Infrastructure Transformation.
* During the year, the Company's MD and CEO, Mr. N Srinath, was named as
the world's eighth most
influential telecom personality
for the second consecutive year by the Global
Telecoms Business magazine.
* European CEO
announced Tata Communications as
Telepresence Managed Service
Provider of the Year 2009.
* Frost and Sullivan named the
Company #1 Enterprise Data Services
Provider in India 2009.
* In March 2010, Tata
Communications entered the Gartner's Magic
Quadrant for Global Network Service Providers.
* Frost and Sullivan's 2009 Product Innovation award for Managed
Telepresence Service.
* 'Best service coverage' in the 2009 Optical
Transmission Vision (OTV) APAC Network Operator Awards.
CONTINUOUS
IMPROVEMENT:
In order to be
able to respond quickly to the
customers, the Company continues with various internal
initiatives to compete effectively, improve organisational flexibility and efficiency, streamline internal
processes across all its
entities globally and
institutionalise a culture
of continuous improvement. The
Company is developing
and deploying a Continuous
Improvement methodology (QUICK) which is being
designed in partnership with Tata Quality Management Services to
serve as a model for continuous
improvement. Some important initiatives are:
Business
Excellence:
The Company continues
to transform itself in
tandem with market
and regulatory changes using the framework of the Tata
Business Excellence Model (TBEM)
which covers areas like leadership, strategy, customer
and market focus, knowledge
management, human resources,
process management, customer
service and social responsibility.
The Company has received TL 9000 certification for three years commencing 31 March
2010 for the
Compliance with
SOX:
Pursuant to its listing on the New York Stock Exchange, Tata
Communications has been complying with section 404 of the Sarbanes Oxley Act,
2002 (SOX). SOX sets forth requirements for internal control
over financial reporting and its
documentation. For the current fiscal year, in addition
to the management's own
assessment of the effectiveness of such internal control, the
Company's external auditors are also required to issue an opinion
on whether effective internal control over financial reporting was maintained in respect of all material aspects
by the management.
Revenue Assurance:
Revenue assurance aims
to prevent revenue leakages
to ensure robust internal controls and IT processes
that keep pace with increasing business
complexities, thus moving towards zero tolerance of revenue leakages. The Company
has recently undertaken a
benchmark' study to enhance
revenue assurance processes and the findings will be implemented this
year.
The Company has
established an enterprise-wide
risk management (ERM) framework to optimise identification and management of
risks globally, as well as to comply
with clause 49 of the listing agreement with Indian stock exchanges. In line with the Company's commitment to deliver
sustainable value, this framework aims to provide an integrated and
organised approach for evaluating and
managing risks.
MANAGEMENT
DISCUSSION AND ANALYSIS:
INDUSTRY ANALYSIS:
Indian Telecom
Market:
Over the last decade the Indian telecom industry has changed
significantly, with all major segments being opened to competition. There are
several new entrants in
areas that the Company operates in, resulting in
increasing competition.
There are now 281 circles-based
access licenses across
23 service areas, 30 licensed
national long distance (NLD) operators
and 25 licensed international long distance (ILD) operators,
several of whom are large international
companies who now have a
direct presence in the
country.
The past year
witnessed significant
regulatory developments including changes in
the access deficit charge (ADC) regime,
a review of the
Interconnect regime, recommendations on issues like Mobile Virtual Network Operators, Internet Telephony and
Carrier Access Code (CAC)/calling cards.
Mobile Number Portability (MNP) is
expected to be implemented during the latter half of 2010.
The auction of spectrum for 3G and Broadband Wireless Access (BWA)
services was conducted during April and June 2010. The revenue
estimates did not enable
the Company to acquire spectrum
in any of the circles in the BWA auction.
The winning bids, in the opinion, were in excess of what current broadband business cases could support, and seemed to
reflect the effects of a
perceived scarcity of spectrum combined with the limited number
of slots being auctioned.
In summary, the telecom landscape continues to evolve and operators such
as the Company will
have to constantly transform
themselves to remain competitive.
Global Telecom
Market:
The global telecom industry has
undergone changes in the segments of
Tata Communications' interests. The
international wholesale voice
market continues to be a business of scale, with constant pressures on
prices and margins. The
recent global economic downturn has further increased
this pressure on prices and
slowed the growth of traffic volumes on a
year-on-year basis. Alternate
services such as portal based offerings on
the Web are growing
in popularity and usage. The share of
mobile communications continues
to grow in relation to fixed voice and there is an increasing use of Voice
over Internet Protocol (VoIP). The need for profitability in a
largely commoditized market is making
operators seek both scale and cost
efficiency in their operations. Apart from driving
consolidation, this could also
create new business models based
on greater collaboration between operators
which, they believe, the Company is well
positioned to benefit from.
The data market is also undergoing rapid changes. With the growing need
for bandwidth around the
world, the demand for submarine cable
capacity continues to grow. Several new cable systems have been
announced or are being constructed in different markets,
such as across the Pacific, within
Asia, connecting Europe and Asia, and on
both the east and west coasts of
The addition of these new cables presents both investment
opportunities as well as downward price
challenges.
The growth of the Internet on the
back of growing global broadband usage,
increasing demand for multimedia services, the success of new collaboration and communications applications and the continued
increase in the use of the web by both individuals and
corporations, is driving the demand for
IP bandwidth. Growth is seen in the demand for IP Transit services in
all the major geographies but prices
continue to fall, thereby increasing pressures on margins.
New services such as Content Distribution Networks are fast
emerging as growth opportunities, leveraging the increasing
demand for video traffic on the
web. The Company is actively offering these
services for both volume and margin growth.
The global enterprise market has seen growing demand for network services, data centre services and value
added services. The global recession
caused delays in decision-making and
deferred procurement by
some customer segments, but
broadly, Information and
Communications Technology
investments by enterprises is showing a steady and
solid recovery. This investment is
motivated by the need for
better engagement and
service levels with their
own customers, the
need for higher
velocity and flexibility in
business, and the growth of
global supply chains
and markets. Industry leaders are more sharply focused on increasing
the ratio of IT budgets that are applied
towards competitive advantage and innovation versus basic services and compliance. The recession
limited their budget growth, and thus has sharpened their focus towards
finding the best value solutions that
will enable their IT to deliver a
competitive edge. The exploration of new
approaches like Ethernet wide area
networking, cloud computing
services and Telepresence virtual meetings is arguably now higher on many CIO
agendas than it would otherwise have been.
Mobile Market:
The mobile industry has shown some
resilience to the economical downturn.
There is some concern on revenue growth
as operators face the prospect of fewer new
subscribers and a flat to declining average revenue
per user (ARPU). This effect is
most pronounced in the established markets of Europe and North America, while developing markets such
as the Middle East, Asia and
Mobile operators are increasingly
focused on costcutting measures, which presents an opportunity for providers of Value Added Services
such as Steering of
Roaming and Roaming Hubbing and
associated services. The sharper focus on costs and price pressure
on supplier contracts creates an
opportunity for the Company to displace competitors.
With the increasing penetration of smart devices and
the rolling-out of broadband HSPA/3G+ networks, mobile data
is rapidly increasing its share of overall
customer usage and revenue. As
operators expand their broadband networks and
subsequently their requirements
for core Internet connectivity, it creates new opportunities for providers
of wholesale IP transit and data services. The Company is
leveraging its strength in Data
Services by extending this offering to Mobile Operators,
notably early adoption of
IPX, a framework that allows the
integration of multiple services and applications over a
single data connection.
Carrier
Outsourcing and Transformation Services:
The new challenges in the global
economy are compelling carriers to find quicker
and more cost-effective ways to
service their customers.
While carriers in developed markets are seeking to reduce costs and
focus on core activities, carriers in emerging markets are attempting to
overcome skills shortages and expedite
time to market for new services or geographies. This is generating
significant demand for various types of network skills
as well as for
process improvement and deployment
capability which are emerging
as good growth opportunities for
the Company's transformation services offering.
Impact of Global
Economic Scenario:
The economic slowdown triggered by events in the
REGULATORY
DEVELOPMENTS:
As reported earlier, in the year 2005, the Company along with several
other service providers had
challenged before the Hon'ble
Telecom Disputes Settlement And
Appellate Tribunal (TDSAT),
the definition of
'gross
revenue' and 'adjusted
gross revenue' (AGR) as applied by
the DoT for levying licence fees as being unfair and
beyond the scope and powers of the DoT.
The final verdict was rendered by
the TDSAT on 30 August 2007 broadly in line
with several of the contentions of the Company. However the industry and
the Company are
not satisfied on two issues, viz.
(i) date of applicability of the TDSAT verdict, which according to the
Company should be the date from which
the license fee based on revenue sharing regime came into effect, and not from the date of filing the
petition in TDSAT (May, 2005
in the case
of the Company) as ordered by
the TDSAT and
(ii) deductibility of charges
passed on to other service providers for
leasing bandwidth, port charges,
etc., which was disallowed by TDSAT. The
Company and also several other
telecom operators have challenged TDSAT's order
of 30 August 2007 on the above two issues in the Hon'ble Supreme
Court of India. As reported earlier, the DoT has also filed
an appeal in the
The Company had also separately filed a petition in the TDSAT on the
matter of applicability of penal
provisions under the international and
national long distance license
agreements towards charging of penalty and
interest on penalty. The TDSAT by
its judgment of 11 February 2010 has allowed
the petitions filed by the Company, striking down the clause
imposing penalty. As a consequence, the
Company is entitled to a refund of Rs. 1157.200 Millions (Rs. 1.15
billion) realised by the DoT in
January 2008 and
interest thereon. A claim of Rs.
1600.000 Millions (Rs. 1.60 billion) was
raised upon the DoT on 10 March 2010, which DoT has refused.
The Company is examining the available
options for its future course of action.
The regulatory scenario in the other geographies across
the world where the Company operates through its subsidiaries
did not see any major policy changes impacting the Company's business.
Tata Communications continues to implement and comply with its obligations under the agreement between the Company (and
several of its subsidiaries) and the
various U.S. Government Departments (Department of Justice, Federal Bureau of
Investigation, the Department of
Homeland Security, and
the Department of Defense). As a
part of these requirements, the Company and its
subsidiaries have, over the last year, invested in enhancing security for its North American networks;
appointed a Chief Security Officer;
hired a Chief Information
Security Officer for North America and
OPERATIONAL
REVIEW:
The Company operates under three main business segments globally - Global Voice, Global
Global Voice:
International Long
Distance (ILD):
Tata Communications remains the leading provider of international
wholesale voice communication services
globally. The Company has over 1,600
direct and bilateral relationships with
leading international voice
telecommunication providers.
During 2009-10, Tata
Communications handled 32.6
billion minutes of international voice
traffic globally, a growth of 33% over
the previous year. Traffic to and
from
The Company is a 'one-stop-shop' for all global voice solutions, offering flexible service
options and a full range of complementary services
for VoIP, Voice over broadband, web portal and
client-based providers. Tata Communications is constantly upgrading
and expanding its offerings in this
segment. In September
2009, the Company launched new
and innovative services like enhanced voice peering and support for
high quality
As per current regulations, the Company does not have direct access to
the end customer and is dependent on
traffic from other access operators for its
long distance voice services. Several of the operators who hand
over
their long distance voice traffic
to Tata Communications have since taken
licenses and started
operations for themselves,
thereby shrinking the Company's
addressable market and hence affecting this business adversely.
Nevertheless, the Company
continues to strive
to be competitive, leveraging its
scale of operations and operational expertise. In
August 2009, the licensor amended the terms of the
International Long Distance (ILD) License
to permit ILD service
providers to access
subscribers directly through calling cards. However, the current policy
framework does not regulate interconnection charges between
operators for the purpose of
calling cards. The Company will need to negotiate these
terms with each access
provider concerned before it can launch a calling card service for international calling.
During the year, there were
further reductions in tariff and
interconnect rates globally, combined with a slower year-on-year
market growth, increasing the downward pressure on revenues. This pressure
was
only partially compensated, since the increase in traffic volumes
was also slower. Globally, the Company continues to focus
on increasing volumes, while cutting costs in order to improve
margins.
The Company has
also moved to
capitalize on the
growing trend of outsourcing by
telecom operators to manage
their international voice services. The
Company offers innovative
and flexible solutions
like infrastructure sharing, customised distribution models, traffic
management, destination management and traffic aggregation to answer various
challenges faced by telecom operators.
The Company hopes to see a significant
growth in this space in coming years.
National Long
Distance (NLD):
Increased mobile penetration has resulted in significant growth in
the NLD traffic within
The Company has
a strong network
infrastructure and interconnect agreements with all basic and
cellular mobile service operators in
While increased competition
in the long distance
space affects the Company's
business, it also opens up opportunities to share the Company's network infrastructure with
new licensees. The
sharing of active infrastructure by NLDOs is now
permitted and a consultation process for the introduction of Internet Telephony in the NLD sector
has been
initiated. The Company hopes that this may provide new avenues for the
Company in the NLD business area.
Global
Carrier Data:
Tata Communications is one of the
world's leading wholesale providers of data, IP and mobile signalling services.
The Company leverages its global
submarine cable network and global Points of Presence
(POPs) to provide high-speed bandwidth connectivity to other telecom
carriers and Internet Service Providers (ISPs) worldwide.
During the past year, the growing demand for
bandwidth has resulted
in substantial capacity upgrades
and new builds on the
Company's global submarine cable
system, the Tata
Global Network (TGN).
The Company announced the new TGN-Gulf cable connecting several
countries in the Gulf to the
TGN and expects the commissioning of
the TGN Eurasia
system connecting
Tata Communications operates one of the world's leading IP networks
and provides wholesale IP
transit services to
tier-2 ISPs and
regional carriers. Tata Communications is one of the few Internet
service providers that has a strong position in all the major
regions worldwide, including North America,
Europe, Asia, Middle East and
The Company has put in place a converged wholesale
strategy, to combine carrier services with the Global
Voice Solutions and Carrier Data Services, to
bring increased value to the
carrier customers. In January 2010
the Company launched an IP Exchange (IPX) solution enabling
mobile service providers to seamlessly and efficiently route all communication
traffic, including voice, IP and
signalling, via one IP pipe while supporting
end-to-end service quality,
security, multilateral connectivity and
cascading payments.
Tata Communications offers a wide range of customised
telecommunication solutions to its
The Company continues to expand
its coverage of Managed Global MPLS -
VPN (Multi Protocol Label Switching - Virtual Private
Network) and Ethernet services by
directly entering select new markets as
well as through partnerships with
regional / local operators. To further
strengthen its customer value proposition,
the Company partners with software and
systems integration companies
including Tata Consultancy Services, for
integrated joint product and service offerings. The Company also markets
its services through indirect channels
catering to the small and medium
enterprise market in
The Indian enterprise
segment has been growing at a
very healthy rate driven
by two factors. Firstly, Indian business are increasingly adopting IT and networking technology to
improve productivity and create competitive advantage. Secondly,
since Indian business
is growing globally
and international companies are
increasing their Indian presence, there is
an associated need for greater connectivity to and within the country.
Banking and financial services,
information technology and
business process
outsourcing/call centres are some
examples of high growth sectors in the country.
Tata Communications is one
of the largest players in the
data centre business in
Tata Communications sees
business transformation being
led by IP technologies that are enabling converged and cloud-based
services as well as a
new generation of managed services. In line
with its IPenabled business transformation strategy, Tata Communications will complete
the deployment of its global voice network core to an IP-based Next Generation Network (NGN)
by September 2010. The NGN will
provide a dramatically simplified network architecture and enable Tata
Communications' customers to leverage a
single global IP network to deliver their range of services. The
NGN completion will mark the next step in Tata
Communications' IP evolution and
positions the Company as the right partner for convergence in the IP world.
Adoption of new
services and service
delivery models that
enhance competitiveness is
accelerating in areas such as adoption of Ethernet for wide
area networks, in which the Company is a major player both globally and
in
The Company is a global leader in collaboration services
like Managed Telepresence for
companies and between companies. This
service provides 'virtual meetings'
using simple and life-like telepresence endpoints which provide
enhanced collaboration across
global companies and
markets, reducing travel and
raising productivity. Leveraging its
global network, Tata Communications is continuing to grow the
world's largest public room telepresence
network. Tata Communications currently manages 13 telepresence public rooms and is targeting another 25 by the end
of 2010. The Company also
provides a standalone global Telepresence
Exchange Service that enables
telepresence rooms to be interconnected regardless of the network or service provider they belong to.
Tata Communications plans to
continue its growth strategy of
partnership, investment and infrastructure development
in emerging markets.
Tata Communications and
The Company is
continuously developing new
products and services
to enhance value to customers. In September 2009, Tata Communications
combined its next generation
managed security solutions with superior
Internet leased line products, and launched its Internet Clean Pipe
Solution for the small and medium business segments in
The Company has
launched the world's leading dedicated
global video network called
Video Connect which is designed
to help broadcasters, studios and
production houses deliver video content
flexibly and cost-effectively to media hotspots worldwide.
By leveraging Tata Communications' global
network infrastructure, Video
Connect also enables
permanent availability of
bandwidth and seamless transmission of video
at constant bit rates. A dedicated video network operations
centre ensures round-the-clock system
availability along with analytics to provide reports on video quality.
In January 2010,
Tata Communications unveiled
its media management platform, Mosaic.
This platform, with its cloud-based
media management, helps media customers improve cross-enterprise
collaboration for content creation, management and multiformat delivery. Mosaic
enables enterprises to deliver
innovative services that meet rapidly changing consumer demands, maintain and
expand audience numbers, provides
flexibility of an
open operating environment and
lower production costs. One of
Mosaic's unique capabilities is
that it provides
complete digital asset
management, ensuring secure,
efficient access to content and workflow
throughout the value chain, which
is delivered as an online service over the web. The new service is targeted at the entire
spectrum of media customers encompassing
content creators, producers,
post-production houses, digital
media publishers, content service providers and TV channels.
As part of its Global Media and
Entertainment Services (GMES) portfolio, Video Connect
and Mosaic will complement
Tata Communications' existing Media and Entertainment services,
offering companies an integrated
end-to-end solution that enables global collaboration across the
media ecosystem. Other services
in Tata Communications' GMES portfolio
include Satellite
Broadcasting with TV uplinking and
Playout Room capabilities. The Company
intends to invest in the range of US$50 million over the next two years to strengthen
its product offerings addressing
the media and entertainment segment requirements.
Joint Ventures and
Associates:
Neotel
(Proprietary) Limited:
Neotel was set up as
Neotel today employs around 1,100 people, and
offers telecommunication
services to the Wholesale,
As a part of Neotel's growth story, it had acquired Transtel, a division
of the state owned transport company Transnet. This acquisition was completed and the
organization has been
fully integrated with
Neotel. This integration has
resulted in the Company achieving
better scale in its
operations and is now yielding some visible cost synergies.
JV with CEC:
It was reported last year that the Company had
entered into an
equity joint venture agreement (EJV) with the shareholders of China
Enterprise Communications Limited
(CEC). On 10 June 2010, Tata
Communications (Hong Kong) Limited, a wholly-owned indirect subsidiary
of Tata Communications Limited and
the shareholders of CEC jointly
withdrew their equity joint venture application with the Chinese Government and mutually
agreed to terminate the
various agreements regarding Tata Communications' proposed
equity investment in CEC. CEC and Tata Communications will
continue with their existing network services co-operation relationship
and have also entered into a new
co-operation agreement whereby Tata Communications and CEC will work together on a commercial basis to
allow Tata Communications to benefit from
access to CEC's network and assets in
Management of
Business Ethics (MBE):
The Company aims to be recognized
in a sustained manner for being ethical
0and value driven in all its endeavours. It actively promotes demonstration of this behaviour by its
employees and other stakeholders through a
series of activities and
processes within the framework of
the Tata Code
of Conduct. The Company
has put in place
the necessary structures
and processes, to implement and improve ethical standards and practices
in the organization. All new recruits
are provided an overview of the Tata Code of Conduct and the Company's Whistleblower Policy as
part of their induction process. To internalize the code of conduct and
sustain the momentum, the Company conducts
employee seminars, compliance
training and ethics awareness workshops
at frequent intervals. Relevant
personnel are also provided
training on compliance with the
Foreign Corrupt Practices
Act (FCPA) of the US with which the Company must comply by
virtue of its US listing.
The Company understands that a
strong commitment to ethics
is critical to the long term success of business and believes that any
success not achieved ethically is no success at all. In order to
inculcate the ethical value
system deep into the minds of the employees, the Company has launched a Web Based Training Module on
the Tata Code of Conduct available
to all
its employees globally.
It has helped
to create a better
understanding and awareness
about the value system
among the global workforce.
Contingent
Liabilities:
|
Particulars |
31.03.2010 Rs. In Millions |
|
Guarantee given on behalf of subsidiaries |
|
|
i Claims for taxes on income |
55127.600 |
|
a) Income tax disputes where the departments is in appeal
against the company |
|
|
b) Income tax disputes where the company has a favorable
decision in other assessment year for the same issue |
3220.000 |
|
c) Income tax disputes other than the above |
14488.900 |
|
ii. Claims for other taxes |
1180.800 |
|
iii. Other Claims |
4950.800 |
Notes:
1)
Guarantee given on behalf of
subsidiaries
The guarantees have been provided in the ordinary course of business
and no liability on the company is expected to materialize in this respect.
2)
Significant claims by the revenue
authorities in respect of income tax matters are in respect of deductions
claimed under Sections 80-IA of the Income Tax Act, 1961 form Assessment Year
1996-97 onwards have been disallowed by the revenue authorities. The company
has contested the disallowance and has preferred appeals which are pending.
3)
The company has taken appropriate
professional advice in respect of the claims/ appeals and has taken all
necessary steps to project its interest. Based on exporter opinion, no
provision is required in respect of these claims/ appeals.
FIXED ASSETS:
v Land
v Building
v Plant And Machinery
v Furniture And Fixtures
v Office Equipment
v Computers
v Motor Vehicles
v Goodwill
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER ENDED 30.09.2010
(Rs. In millions)
|
Particulars |
Standalone For the quarter ended 30.09.2010 |
|
Revenues from telecommunication services |
8237.900 |
|
|
|
|
Expenditure |
|
|
(a) Network Costs |
3690.800 |
|
(b) Operating and Other Expenses |
1287.800 |
|
(c) Salaries and Related Cost |
1136.600 |
|
(d) Depreciation |
1477.000 |
|
e. Total Expenditure |
7592.200 |
|
Profit / (Loss) From Operations before other Income Interest and Exceptional Items |
645.700 |
|
Other Income |
139.400 |
|
Profit/(Loss) before Interest and Exceptional items |
785.100 |
|
Interest |
465.600 |
|
Profit / (Loss) after interest before Exceptional items |
319.500 |
|
Exceptional Items |
-- |
|
a. Interest on Income Tax Refund |
-- |
|
Profit / (Loss) From
Ordinary activities before Tax |
319.500 |
|
Tax Expenses |
77.100 |
|
Net Profit/(Loss) From Ordinary activities after Tax |
242.400 |
|
Extraordinary Items (Net of Tax Expenses) |
-- |
|
Net Profit / Loss Before Minority Interest and Associate Loss |
242.400 |
|
Minority Interest |
-- |
|
Share in Loss of Associates |
-- |
|
Net Profit/(Loss) for the period |
242.400 |
|
Paid Up Equity Share Capital ( Face Value of the share Rs.10/- each ) |
2850.000 |
|
Reserves (Excluding Revaluation Reserves) |
-- |
|
Earnings per Share |
0.85 |
|
Basic and Diluted
Earnings per Share Before and After
Extraordinary Items |
|
|
Aggregate of Public Share Holding |
|
|
- Number of Shares |
47709679 |
|
- Percentage of shareholding |
16.74 |
|
Promoters and
Promoter group share holding |
|
|
a) Pledged / Encumbered |
|
|
- Number of Shares |
26700000 |
|
- Percentage of share (as a % of the total shareholding of promoter and promoter group) |
12.30 |
|
- Percentage of shares(as a % of the total share capital of the company) |
9.37 |
|
b) Non-encumbered |
|
|
- Number of Shares |
190328873 |
|
- Percentage of Share (as a % of the total shareholding of promoter and promoter group) |
87.70 |
|
- Percentage of Share (as a % of the total share capital of the company) |
66.78 |
|
Debt Service Coverage Ratio (DSCR) |
1.66 |
|
DSCR= (Profit form ordinary Activities before tax and Exceptional items + Interest on long term Loans)/ (Interest on long Term Loans + Repayment of Long – Term Loans during the year) |
-- |
|
Interest service coverage ratio (ISCR) |
4.25 |
|
ISCR= (Profit from Ordinary Activities before tax and exceptional items+ Interest on Long- term Loans)/ Interest on Long- Term Loans) |
|
# DSCR = (Profit from Ordinary Activities before Tax and Exceptional
Items + Depreciation + Interest on Long-Term Loans) / (Interest on Long-Term
Loans + Repayment of Long - Term Loans during the year)*
## ISCR = (Profit from Ordinary Activities before Tax and
Exceptional Items + Depreciation + Interest on Long -Term Loans) I Interest on
Long-Term Loans*
* Loans having original maturity of more than 360 days are
considered as Long-Term Loans.
BUSINESS SEGMENT
|
Particulars |
Standalone For the quarter ended 30.09.2010 |
|
Revenue from Telecommunication and other services |
|
|
Global Voice Solutions |
2488.400 |
|
Global Data and Managed Services |
5749.500 |
|
Others |
0.000 |
|
Total |
8237.900 |
|
Segment Result |
|
|
Global Voice Solutions |
17.700 |
|
Global Data and Managed Services |
4480.700 |
|
Others |
0.000 |
|
Total |
4498.400 |
|
Less: |
|
|
i) Interest Cost (net) |
465.600 |
|
ii) Other Unallocable Expenses (Net) |
3713.300 |
|
Profit / Loss Before Taxes and
Exceptional Items |
319.500 |
|
Exceptional Expenses/ Income (Net) |
-- |
|
Profit / Loss Before Taxes |
319.500 |
|
Tax Expenses |
77.100 |
|
Net Profit/ Loss for the period |
242.400 |
STATEMENT OF
ASSETS AND LIABILITIES AS ON SEPTEMBER 30, 2010
|
|
|
Rs
in Millions |
|
Particulars |
Quarter ended |
|
|
As on 30.09.2010
|
||
|
(Unaudited) |
||
|
|
|
|
|
SHAREHOLDERS FUNDS |
|
|
|
Share Capital |
2850.000 |
|
|
Convertible Warrants |
0.000 |
|
|
Reserves & Surplus |
70594.300 |
|
|
|
|
|
|
LOAN FUNDS |
23291.700 |
|
|
|
|
|
|
DEFERRED TAX LIABILITIES |
1673.000 |
|
|
|
|
|
|
TOTAL |
98409.000 |
|
|
|
|
|
|
FIXED ASSETS |
48677.700 |
|
|
|
|
|
|
INVESTMENT |
20988.800 |
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
Inventories |
4.400 |
|
|
Sundry Debtors |
8268.800 |
|
|
Cash & Bank Balances |
341.500 |
|
|
Other Current Assets |
1989.200 |
|
|
Loans & Advances |
37799.400 |
|
|
|
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
Other Current Liabilities |
18248.500 |
|
|
Provisions |
1412.300 |
|
|
|
|
|
|
Net Current Assets |
28742.500 |
|
|
|
|
|
|
TOTAL |
98409.900 |
|
NOTES:
- The above results of the Company for the quarter and half year
ended September 30, 2010 have been subjected to a limited review by the statutory
auditors, recommended by the audit committee and were taken on record and
approved by the Board of Directors at their meeting held on October 28,
2010.
- Other Income includes:
|
PARTICULARS |
For
the Quarter ended September
30,2010 (Rs. In millions) |
|
Net foreign exchange (gain)/Ioss |
63.300 |
- Profit from Ordinary Activities before tax for the quarter and half year ended September 30, 2010 includes Rs 265.400 lakhs (previous period Rs Nil) of Revenue from telecommunication services of previous period based on settlement with a carrier in the current quarter.
- Standalone Profit from Ordinary Activities before tax for the half year ended September 30, 2010 includes Rs. 256.000 Iakhs (previous period Rs. Nil) of Revenues from telecommunication and Other services pertaining to previous periods. This has no impact on consolidated results.
- Effective April 01, 2010, the Company has changed its accounting policy for Financial Instruments for limited purpose of Hedge accounting. The effective portion of Mark-to-market loss on interest rate swaps for quarter ended and half year ended September 30, 2010 is Rs. Nil for standalone financial statements and Rs. 136.400 lakhs and Rs 311.200 Iakhs respectively in consolidated financial statements which is recognized in Hedge Fluctuation Reserve.
- The previous period’s figures have been regrouped and reclassified wherever necessary to make them comparable with the current period’s figures.
- Investor Complaint status:
|
Outstanding
as on July 01,
2010 |
Total
received during the September
quarter ended 30, 2010 |
Total
resolved During
the September quarter
ended 30, 2010 |
Outstanding as
on September 30, 2010 |
|
NIL |
1 |
1 |
NIL |
AS PER Website Details:-
Overview
The global
reach and industry expertise of Subject drives and delivers a new world of
communications. The company leverages its Tata Global Network vertical
intelligence and leadership in emerging markets to deliver value-driven
globally managed solutions.
The Company s a
member of the $62.5 billion Tata Group is a leading global provider of a new
world of communications. The emerging markets communications leader leverages
its advanced solutions capabilities and domain expertise across its global and
pan-India network to deliver managed solutions to multi-national and Indian
enterprises service providers and Indian consumers.
The Company
range of services include transmission IP converged voice mobility managed
network connectivity hosting and storage managed security managed collaboration
and business transformation for global enterprises and service providers as
well as Internet retail broadband and content services for Indian consumers.
The Tata Global Network encompasses one of the most advanced and largest
submarine cable networks a Tier-1 IP network with connectivity to more than 200
countries across 300 Pops and more than 1 million square feet of data center
and co-location facilities.
The Company
unique emerging market depth and breadth of reach includes a national fiber
backbone network and access to network in over 60 cities and 125 Pops in India
strategic investments in South African converged services operator Neotel
Servicing
customers from its offices in over 80 cities in 40 countries Subject is the
number one global international wholesale voice operator and number one provider
of international long distance enterprise data and Internet services in India
the Company was named "Best Wholesale Carrier" at the World
Communications Awards in 2006 "Best Pan-Asian Wholesale Provider" at
the 2006 and 2007 Capacity Magazine Global Wholesale Telecommunications Awards
and was awarded "Best Progress in Emerging Markets" at the 2008
Mobile Communication Awards.
The Company
along with its global subsidiaries (Tata Communications) is listed on the
Bombay Stock Exchange and the National Stock Exchange of India and its ADRs are
listed on the New York Stock Exchange. (NYSE: TCL)
TATA GROUP
COMPANIES
Profile
Subject is a rapidly growing business group based in
The business operations of the Tata Group currently encompass seven business sectors: communications and information technology engineering materials services energy consumer products and chemicals. The Group's 27 publicly listed enterprises have a combined market capitalisation of some $60 billion among the highest among Indian business houses and a shareholder base of 3.2 million. The major companies in the Group include Tata Steel Tata Motors Tata Consultancy Services (TCS) Tata Power Tata Chemicals Tata Tea Indian Hotels and the Company.
The Group's major companies are beginning to be counted
globally. Tata Steel became the sixth largest steel maker in the world after it
acquired Corus. Tata Motors is among the top five commercial vehicle
manufacturers in the world and has recently acquired Jaguar and Land Rover. TCS
is a leading global software company with delivery centres in the US UK Hungary
Brazil
In tandem with the increasing international footprint of its
companies the Group is also gaining international recognition. Brand Finance a
UK-based consultancy firm recently valued the Tata brand at $11.4 billion an
Founded by Jamsetji Tata in 1868 the Tata Group's early
years were inspired by the spirit of nationalism. The Group pioneered several
industries of national importance in
Subject has always believed in returning wealth to the society it serves. Two-thirds of the equity of Tata Sons the Tata Group's promoter company is held by philanthropic trusts which have created national institutions in science and technology medical research social studies and the performing arts. The trusts also provide aid and assistance to NGOs in the areas of education healthcare and livelihoods. Tata companies also extend social welfare activities to communities around their industrial units. The combined development-related expenditure of the Trusts and the companies amounts to around 4 per cent of the Group's net profits.
Going forward the Group is focusing on new technologies and
innovation to drive its business in
From customer to community the Tata Group invests in resources for the various markets and communities it serves. The Tata Group's philanthropic trusts and global community initiatives develop and sustain services that promote health and education leadership and technical training and arts and sports programs.
Press Releases
Tata
Communications Adds New Global Head to Its Leadership Team
Laurie Bowen appointed Global Carrier and Enterprise Solutions Head
Commenting on Laurie’s appointment, Vinod Kumar, President and Chief
Operating Officer of Tata Communications says, “The enterprise business is of
strategic importance to them as we expand our traditional wholesale voice and
IP business into enterprise offerings. Laurie brings with her a world-class
track record in leadership and business growth which will assist in driving our
fast growing business forward.”
Prior to joining Tata Communications, Laurie held a number of leadership
roles at British Telecommunications (BT), most recently, as the Managing
Director of Commercial and Brands for BT Global Services. She managed over 250
of BT’s largest corporate clients in twelve principle sectors, ranging from
retail to energy. Other senior engagements include President of Global Business
Management at BT and President of Global Financial Services and CEO of BT
Radianz.
“I am very pleased to have joined such an innovative and dynamic company
and look forward to working with the global team to take the carrier and
enterprise business to the next level. It has never been a more exciting time
for the Telco space and they have a wealth of opportunity ahead of us” says
Laurie Bowen, President of Sales and Strategy for Global Data and Enterprise
Solution.
Laurie also spent over 20 years at IBM in a number of senior positions
focusing on the telecommunications and financial services industries. Her most
recent role at IBM was that of Managing Director where she was responsible for one
of IBM’s largest customers in
Laurie has an MBA and BSc degrees in Electrical Engineering and Computer
Science from
About Tata Communications
Tata Communications is a leading global provider of a new world of
communications. With a leadership position in emerging markets, Tata
Communications leverages its advanced solutions capabilities and domain
expertise across its global and pan-India network to deliver managed solutions
to multi-national enterprises, service providers and Indian consumers.
The Tata Global Network includes one of the most advanced and largest
submarine cable networks, a Tier-1 IP network, with connectivity to more than
200 countries across 400 PoPs, and nearly 1 million square feet of data center
and collocation space worldwide.
Tata Communications’ depth and breadth of reach in emerging markets
includes leadership in Indian enterprise data services, leadership in global international
voice, and strategic investments in operators in
Tata Communications Limited is listed on the Bombay Stock Exchange and
the National Stock Exchange of India and its ADRs are listed on the New York
Stock Exchange. (NYSE: TCL)
Forward-looking and
cautionary statements
Certain words and statements in
this release concerning Tata Communications and its prospects, and other
statements, including those relating to Tata Communications’ expected financial
position, business strategy, the future development of Tata Communications’
operations, and the general economy in India, are forward-looking statements.
Such statements involve known and unknown risks, uncertainties and other
factors, including financial, regulatory and environmental, as well as those
relating to industry growth and trend projections, which may cause actual
results, performance or achievements of Tata Communications, or industry
results, to differ materially from those expressed or implied by such
forward-looking statements. The important factors that could cause actual
results, performance or achievements to differ materially from such
forward-looking statements include, among others, failure to increase the
volume of traffic on Tata Communications’ network; failure to develop new
products and services that meet customer demands and generate acceptable
margins; failure to successfully complete commercial testing of new technology
and information systems to support new products and services, including voice
transmission services; failure to stabilize or reduce the rate of price
compression on certain of the company’s communications services; failure to
integrate strategic acquisitions and changes in government policies or
regulations of India and, in particular, changes relating to the administration
of Tata Communications’ industry; and, in general, the economic, business and
credit conditions in India. Additional factors that could cause actual results,
performance or achievements to differ materially from such forward-looking
statements, many of which are not in Tata Communications’ control, include, but
are not limited to, those risk factors discussed in Tata Communications’ various
filings with the United States Securities and Exchange Commission. These
filings are available at www.sec.gov. Tata Communications is under no
obligation to, and expressly disclaims any obligation to, updates or alters its
forward-looking statements.
Cisco and Tata Communications Choreograph Dancers’
Young
This event marks the beginning of an initiative by Tata Communications
and Cisco to use technology to virtually reunite families separated by
distance. The two companies will open their TelePresence facilities for two
Sundays so that families in
The children who are participating at today’s family reunion traveled to
“Today’s technology has the power to connect people in ways that were unimaginable
10 years ago, and Cisco TelePresence offers users an unparalleled real-time
video collaboration experience,” said Benny Lee, managing director, Unified
Communications and Collaboration, Greater China, Cisco. “The Cisco TelePresence
experience is a key aspect of Cisco’s vision of a smart and connected life, and
by reconnecting families, Cisco’s technology is able to spark the imaginations
of a wider demographic, from children to grandparents, and to change the way
people live, work, play and learn.”
“Tata Communications is excited to expand accessibility to TelePresence
technology beyond the traditional role of being a tool for businesses,” said
Peter Quinlan, senior director, Managed Telepresence Services, Tata
Communications. “Although these families are separated, they can use our
TelePresence rooms all over the world in places like
The Shanghai Five have been participating in NDI’s Irene Diamond Summer
Institute, an intensive month long dance workshop, along with talented dancers
from the
“Dance allows these students to express themselves fully through both
music and movement,” said d’Amboise. “As they have performed with some of our
dancers here in
These students have performed in
Cisco and Tata Communications continue to invite families to register
for a chance to participate in a virtual family reunion. Winners are chosen
based on both compelling applications and the benefit that Cisco and Tata
Communications believe the families would receive from this opportunity to
experience a Smart+Connected Life.
About Cisco Systems
Cisco, (NASDAQ: CSCO), the worldwide leader in networking that transforms how people
connect, communicate and collaborate, this year celebrates 25 years of
technology innovation, operational excellence and corporate social
responsibility. Information about Cisco can be found at http://www.cisco.com. For
ongoing news, please go to http://newsroom.cisco.com.
Cisco products are supplied in
About Tata Communications
Tata Communications is a leading global provider of a new world of
communications. With a leadership position in emerging markets, Tata
Communications leverages its advanced solutions capabilities and domain
expertise across its global and pan-India network to deliver managed solutions
to multi-national enterprises, service providers and Indian consumers.
The Tata Global Network includes one of the most advanced and largest
submarine cable networks, a Tier-1 IP network, with connectivity to more than
200 countries across 400 PoPs, and nearly 1 million square feet of data center
and collocation space worldwide.
Tata Communications’ depth and breadth of reach in emerging markets
includes leadership in Indian enterprise data services, leadership in global
international voice, and strategic investments in operators in
Tata Communications Limited is listed on the Bombay Stock Exchange and
the National Stock Exchange of India and its ADRs are listed on the New York
Stock Exchange. (NYSE: TCL)
About National Dance Institute
National Dance Institute is a not-for-profit organization founded in the belief
that the arts have a unique power to engage children and motivate them towards
excellence. Using professional artists and a distinctive combination of dance
classes and performances integrated with music, literature and the visual arts,
children learn how to work together to reach for their personal best. Over 2
million children have participated in NDI programs. NDI was founded in 1976 by
world-renowned New York City Ballet dancer Jacques d’Amboise, and since 1995
has been under the artistic leadership of Ellen Weinstein..
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 :
The market
survey revealed that the amount of compensation sought by the subject is fair
an
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.
The 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. 45.37 |
|
|
1 |
Rs. 70.04 |
|
Euro |
1 |
Rs. 58.93 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
69 |
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.