MIRA
INFORM REPORT
|
Report Date : |
11.01.2011 |
IDENTIFICATION DETAILS
|
Name : |
ETISALAT DB TELECOM PRIVATE LIMITED |
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Formerly Known
As : |
SWAN TELECOM PRIVATE LIMITED |
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Registered
Office : |
7th and 8th Floor, Techniplex Near Veer Savarkar
Flyover, Goregaon (West), Mumbai 400062, |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
13.07.2006 |
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Com. Reg. No.: |
11-163071 |
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CIN No.: [Company Identification
No.] |
U74992MH2006PTC163071 |
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|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMS52989G |
|
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|
|
PAN No.: [Permanent Account No.] |
AAKCS0136Q |
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|
Legal Form : |
Private Limited Liability Company. |
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Line of Business
: |
Providing Telecom Services. |
RATING & COMMENTS
|
MIRA’s Rating : |
B (27) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 173000000 |
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|
|
|
Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is a joint venture between Etisalat Group, UAE and Dynamix
Balwas Group. It is an established company having moderate track. Trade
relations are reported as fair. Business is active. Payments are reported to
be active. The company can be considered for business dealings with some caution.
|
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INFORMATION DECLINED BY
Management Non Co Operative (Name not Disclose)
LOCATIONS
|
Registered Office : |
7th and 8th Floor, Techniplex Near Veer Savarkar
Flyover, Goregaon (West), Mumbai 400062, |
|
Tel. No.: |
91-22-40778600 |
|
Fax No.: |
91-22-28431566/28409444 |
|
E-Mail : |
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Website : |
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Corporate Office : |
5th Floor, Infinity Towers, 5th Floor, Infinity
Towers, Mind Space, Link Road, Malad (West), Mumbai-400 064, Maharashtra,
India |
|
Tel. No.: |
91-22-67858888 |
|
Fax No.: |
91-22-67858759 |
|
E-Mail : |
DIRECTORS
AS ON 30.09.2010
|
Name : |
Mr. Shahid Usman Balwa |
|
Designation : |
Managing Director |
|
Address : |
Aaliya, Menor, Flat No.7 and 8, 38 TPS IV, |
|
Date of Birth/Age : |
04.01.1974 |
|
Date of Appointment : |
01.10.2007 |
|
|
|
|
Name : |
Mr. Vinod Kumar Goenka |
|
Designation : |
Director |
|
Address : |
Karmyog, 6th Floor, Plot No.11, N S Road No.6, Hatkesh
Society, Juhu Scheme, Mumbai-400 040, |
|
Date of Birth/Age : |
02.07.1959 |
|
Date of Appointment : |
01.10.2007 |
|
|
|
|
Name : |
Mr. Ahmed Syed Salahuddin |
|
Designation : |
Director |
|
Address : |
6, |
|
Date of Birth/Age : |
19.02.1976 |
|
Date of Appointment : |
17.12.2008 |
|
|
|
|
Name : |
Mr. Isa Abdul Rasul Isa Mohamed Alhaddad |
|
Designation : |
Director |
|
Address : |
Villa #200, |
|
Date of Birth/Age : |
15.11.1956 |
|
Date of Appointment : |
17.12.2008 |
|
|
|
|
Name : |
Mr. Mohd Ahmed Abdulkarim |
|
Designation : |
Director |
|
Address : |
Villa 104, 261-27, Street Muhaisanah, Post Box-2229, |
|
Date of Birth/Age : |
11.09.1961 |
|
Date of Appointment : |
17.12.2008 |
KEY EXECUTIVES
|
Name : |
Mr. Afzal MD Lodhi |
|
Designation : |
Company Secretary |
|
Address : |
Flat No.701, Plam Cour, |
|
Date of Birth/Age : |
02.10.1969 |
|
Date of Appointment : |
06.04.2009 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2010
|
Names of Shareholders (Equity Shareholders) |
No. of Shares |
|
Tiger Trustees Private Limited, Mumbai |
115520464 |
|
Delphi investment Limited, |
10791000 |
|
Etisalat Mauritius Limited, |
112994231 |
|
Genex Exim Ventures Private Limited, Chennai |
13317245 |
|
Total |
252622940 |
As on 30.09.2010
|
Equity Share Breakup |
Percentage of Holding |
|
Category |
|
|
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
49.00 |
|
Bodies
corporate |
51.00 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Providing Telecom Services. |
GENERAL INFORMATION
|
Bankers : |
·
Punjab
National Bank, PNB House, ·
State
Bank of ·
Bank
of |
||||||||||||||||||
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|
||||||||||||||||||
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Facilities : |
Note:
I.
Vehicle Loans are secured by hypothecation of
vehicle acquired out of the loan II.
Loan repayable within one year – Rs.0.624 million
|
|
|
|
|
Banking Relations
: |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
Address : |
12, |
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Tel. No.: |
91-22-33479000 |
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Fax No.: |
91-22-33479100 |
|
|
|
|
Holding Company: |
Tiger Trustees Private Limited |
|
|
|
|
Subsidiaries : |
Allianz Infratech Private Limited
CIN No.: U70101MH2006PTC192622 |
|
|
|
|
Associates: |
·
D B Realty Private Limited ·
D B Airport Infra Private Limited ·
Dynamix Balwas Infrastructure Private Limited ·
Swan Connect Communication Private Limited ·
Dynamix Realty ·
D B Tele Wimax Private Limited ·
Falgun Consultants Private Limited |
CAPITAL STRUCTURE
As on 30.09.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
360000000 |
Equity Shares |
Rs.10/- Each |
Rs.3600.000 millions |
|
51000000 |
Preference Shares |
Rs.1/- Each |
Rs.51.000
millions |
|
|
Total |
|
Rs.3651.000 millions |
Issued, Subscribed Capital Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
252622938 |
Equity Shares |
Rs.10/- Each |
Rs.2526.229
millions |
|
619218 |
8% Non Cumulative Optionally Convertible Preference Shares |
Re. 1 each |
Rs. 0.619
million |
|
|
|
|
Rs. 2526.848 millions |
Notes:
Preference Shares are optionally convertible or
redeemable at a discount, par or premium within a maximum period of 20 years
from the date of issue or at such earlier date as the directors deem fit at the
option of the issuer. The Same have been
redeemed subsequent to the year end.
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 |
2526.848 |
2526.848 |
1100.020 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
40779.898 |
40791.612 |
9910.080 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
(2.775) |
|
|
NETWORTH |
43306.746 |
43318.460 |
11007.325 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
2.071 |
2.638 |
13054.744 |
|
|
2] Unsecured Loans |
572.815 |
0.000 |
1080.320 |
|
|
TOTAL BORROWING |
574.886 |
2.638 |
14135.064 |
|
|
DEFERRED TAX LI |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
43881.632 |
43321.098 |
25142.389 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
23561.677 |
15443.443 |
15370.180 |
|
|
Capital work-in-progress |
19471.620 |
2489.980 |
967.936 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
1095.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
0.539 |
0.000 |
0.000 |
|
|
Sundry Debtors |
0.000 |
0.000 |
0.000 |
|
|
Cash & Bank Balances |
16457.833
|
25339.729
|
820.174 |
|
|
Other Current Assets |
0.000 |
0.000 |
0.000 |
|
|
Loans & Advances |
4344.072
|
715.801
|
8118.557 |
|
Total
Current Assets |
20802.444
|
26055.530
|
8938.731 |
|
|
Less : CURRENT LI |
|
|
|
|
|
|
Sundry Creditors |
19884.985
|
1714.010
|
2.766 |
|
|
Other Current Liabilities |
32.203
|
16.352
|
127.827 |
|
|
Provisions |
36.921
|
32.493
|
3.865 |
|
Total
Current Liabilities |
19954.109
|
1762.855
|
134.458 |
|
|
Net Current Assets |
848.335
|
24292.675
|
8804.273 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
43881.632 |
43321.098 |
25142.389 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Service Revenue |
|
0.042 |
0.000 |
|
|
|
Other Income |
|
1726.438 |
650.681 |
|
|
|
TOTAL (A) |
|
1726.480 |
650.681 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Employee Cost |
|
800.191 |
149.779 |
|
|
|
Administrative Expenses |
|
723.314 |
152.859 |
|
|
|
TOTAL (B) |
|
1523.505 |
302.638 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
|
202.975 |
348.043 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
|
153.971 |
7.076 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
|
49.004 |
340.967 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
|
60.674 |
3.893 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
|
(11.670) |
337.074 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
|
0.043 |
198.386 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
|
(11.713) |
138.688 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
|
135.914 |
(2.775) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
|
124.201 |
135.914 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Capital Goods |
|
7142.395 |
0.000 |
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
(0.05) |
0.92 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
(0.67)
|
21.31
|
NA |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(27785.71)
|
0.00
|
NA |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(0.03)
|
0.81
|
NA |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.00)
|
0.01
|
NA |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.47
|
0.04
|
1.30 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.04
|
14.78
|
66.48 |
LOCAL AGENCY FURTHER INFORMATION
Note:
Registered office of the company has been shifted from D B House, General
A. K. Vaidya Marg, Goregaon (East), Mumbai- 400 063, Maharashtra, India
to the present address w.e.f. 25.05.2010
OPERATIONS/PERFORMANCE
REVIEW
The Company has
commenced telecom services in nine circles during the last quarter of the
financial year under the brand name “Cheers”.
The Company has
earned total Revenue of Rs. 1726.481 millions for the financial year 2009-10.
The Operating Profit for the year was Rs. 51.174 millions and resulted in Net
Loss of Rs. 11.713 millions. The Company during the year has been able to roll
out its network to support initial launch of telecom services on prepaid
platform with other value added services like SMS etc. supported by able back
end support of IT and Customer Care Services.
Bankers Charges
Report as per Registry
|
Corporate
identity number of the company |
U74992MH2006PTC163071 |
|
Name of the
company |
ETISALAT DB TELECOM PRIVATE LIMITED |
|
Address of the
registered office or of the principal place of business in |
D B House, General A. K. Vaidya Marg, Goregaon (East), Mumbai- 400
063, |
|
This form is for |
Modification of
charge |
|
Charge
identification number of the modified |
10143198 |
|
Type of charge |
Others Transferability Assignability
of Telecom Licence. |
|
Particular of
charge holder |
Punjab National
Bank, Pnb House, |
|
Nature of
description of the instrument creating or modifying the charge |
No Dues Certificate
from Punjab National Bank confirming repayment of Rupee Term Loan of Rs.
12000 millions extended by Punjab National Bank, State Bank of India, Bank of
Baroda, Infrastructure Leasing and Financial Services Ltd and IDFC Limited
and requiring the security cover for Bank Guarantee Limit of Rs.7170 millions
extended by Punjab National Bank, State Bank of India, Bank of Baroda to
continue. |
|
Date of
instrument Creating the charge |
23.09.2009 |
|
Amount secured by
the charge |
Rs.7170.000
millions |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest Commission on
Guarantee @ 1% p.a. Terms of
Repayment Repayment of Dues
arising out of invocation of guarantees to be settled by the “selectee”
(defined in the Article 1-9 of the Tripartite Agreements) company in
consideration of transfer/assignment of license by t he Licensor (DOT) Margin Cash Margins of
10% of the amount of the respective guarantees issued to DOT by the lenders
on behalf of the Company. Extent and
Operation of the charge Transferability /
assignability in para 14 shall cover Telecom Licenses nos 20/202, 205, 206,
209, 210, 212, 215 to 220 and 222 granted to the company for Service Areas in
AP, Gujarat, Haryana, Karnataka, Kerala, Maharashtra, Punjab, Rajasthan,
Tamil Nadu, UP Western, UP Eastern, Delhi and Mumbai respectively in
consideration of the ‘Selectee’ company, inter alia, settling Non Fund Based
Dues thus: PNB Rs. 2100 millions, SB) Rs 3970 millions, BOB Rs.1100 millions Others Nothing in
Tripartite Agreements entitles the charge holders themselves to operate the
services under the Telecom Licenses as a LICENSEE either individually or
collectively. |
|
Short particulars
of the property charged |
Telecom Licenses
granted to the company by the Department of Telecommunication, government of |
|
Particulars of
the present modification |
Out of the Total Financial
Assistance of Rs. 19170 millions (Fund based-Rs.12000 millions and Non-Fund
based-Rs. 7170 Millions)
extended by consortia of 5 Banks, the term loan of Rs. 1200 has been repaid
in full. However, the Security Cover for the Non-Fund based facility, i.e.
the Bank guarantee aggregating to Rs.7170 millions extended by Punjab
National Bank, State Bank of |
Fixed Assets:
·
Computer
·
Furniture and Fitting
·
Office Equipments
·
Vehicle
·
Leasehold Improvement
Website Details:
Subject has been awarded the Unified Services Access License in 15 circles including Andhra Pradesh, Delhi, Gujarat, Haryana, Karnataka, Kerala, Maharashtra, Mumbai, Punjab, Rajasthan, Tamil Nadu (including Chennai), Uttar Pradesh (East), Uttar Pradesh (West), Madhya Pradesh and Bihar.
These licenses enable the Company to provide a full spectrum
of telecom services covering a population of over 900 million across
Subject is today recognized as one of the largest
telecommunications providers in the world and also the largest operator in the Middle
East with operations in 17 countries across Asia, the Middle East and
Subject offers fixed line services over Next Generation Network, and enables mobile users with a range of services and applications such as voice and data applications like WAP, GPRS, 3G, MMS, Push to Talk, Black Berry, iPhone and others. Internet users too experience high-speed internet connectivity and value-additions such as free anti-spam and anti-virus programmes, expanded mailboxes, upgrades of broadband connection speeds and other benefits.
The telecom leader entered
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international anti-terrorism
laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l Anti-Money
Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws, regulations
or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.44 |
|
|
1 |
Rs.70.61 |
|
Euro |
1 |
Rs.58.63 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFIT |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
27 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this report.
The assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.