MIRA
INFORM REPORT
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Report Date : |
29.01.2011 |
Note: The company has shifted from the above
address.
IDENTIFICATION DETAILS
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Name : |
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Formerly Known As : |
BHARTI
TELE-VENTURES LIMITED |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
07.07.1995 |
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Com. Reg. No.: |
55-70609 |
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CIN No.: [Company
Identification No.] |
L74899DL1995PLC070609 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELB04730F |
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Legal Form : |
A Public Limited
Liability Company. The company’s
shares are listed on the Stock Exchanges. |
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Line of Business : |
Providing
Tele-Communications Services |
RATING & COMMENTS
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MIRA’s Rating : |
A (66) |
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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 1400000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a
well-established and reputed company. Available information indicates high financial
responsibility of the company. Directors are reported as experienced and
respectable industrialists. Financial position of the company is good.
Payments are usually correct and as per commitments. The company can
be considered good for normal business dealings at usual trade terms and
conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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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 |
LOCATIONS
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Registered Office : |
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Tel. No.: |
91-11-46666100 /
42666500 |
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Fax No.: |
91-11-41666137 |
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E-Mail : |
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Website : |
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Corporate Office
: |
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Tel No.: |
91-124-4552222 |
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Fax No.: |
91-124-4552233 |
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Email : |
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Branches : |
Located At:
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DIRECTORS
As On 31.03.2010
|
Name : |
Mr. Sunil Bharti
Mittal |
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Designation : |
Chairman and
Managing Director |
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Name : |
Mr. Manoj Kohli |
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Designation : |
CEO and Joint
Managing Director |
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Name : |
Mr. Rajan Bharti
Mittal |
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Designation : |
Non-Executive Director |
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Date Of Birth : |
05.01.1960 |
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Qualification : |
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Date Of Appointment |
07.07.1995 |
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Name : |
Mr. Akhil Gupta |
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Designation : |
Non-Executive Director |
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Date of Birth / Age : |
22.12.1955 |
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Qualification : |
CA, Advanced
Management Program at |
|
Experience : |
Financial
Management |
|
Other Directorship Held : |
·
Bharti
AXA General Insurance Company Limited ·
Bharti
AXA Life Insurance Company Limited ·
Bharti Infratel Limited ·
Bharti Infratel Ventures Limited ·
Bharti Telecom Limited ·
Bharti
Teletech Limited ·
Bharti Wal-Mart Private Limited ·
Indus
Tower Limited ·
Comviva
Technologies Limited ·
Mehruuli
Realty Consultants Limited |
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Name : |
Mr. Ajay Lal |
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Designation : |
Non-Executive Director |
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Date of Birth / Age : |
08.08.1961 |
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Qualification : |
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Experience : |
Management, Private Equity, Project Finance and Corporate Banking |
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Other Directorship Held : |
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Name : |
Mr. Arun Bharat
Ram |
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Designation : |
Non-Executive Director |
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Date of Birth / Age : |
15.11.1940 |
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Qualification : |
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Experience : |
Management |
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Other Directorship Held : |
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Name : |
Mr. Chua Sock
Koong |
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Designation : |
Non-Executive Director |
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Name : |
Mr. Rakesh Bharti
Mittal |
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Designation : |
Non-Executive Director |
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Date of Birth : |
18.09.1955 |
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Qualification : |
Engineering from the YMCA |
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Date Of Appointment : |
07.07.19555 |
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Name : |
Mr. Rajan Bharti
Mittal |
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Designation : |
Non-Executive Director |
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Name : |
Mr. Craig Edward Enrich |
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Designation : |
Non-Executive Director |
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Date of Birth / Age : |
14.05.1955 |
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Qualification : |
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Name : |
Mr. Nilesh Arora |
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Designation : |
Non-Executive Director |
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Date of Birth / Age : |
09.02.1968 |
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Qualification : |
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Name : |
Lim Chuan Poh |
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Designation : |
Non Executive Director |
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Name : |
Tan Yong Choo |
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Designation : |
Non-Executive Director |
KEY EXECUTIVES
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Name : |
Mr. Sanjay Kapoor |
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Designation : |
DEO ( |
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Name : |
Mr. Vijaya
Sampath |
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Designation : |
Group General
Counsel and Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2010
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Names of Shareholders |
No.
of Shares |
Percentage
of Holding |
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(A) Shareholding of Promoter and Promoter Group |
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1,726,970,056 |
45.48 |
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1,726,970,056 |
45.48 |
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857,180,286 |
22.57 |
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5,663,000 |
0.15 |
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|
5,663,000 |
0.15 |
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|
862,843,286 |
22.72 |
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Total shareholding of Promoter and Promoter Group (A) |
2,589,813,342 |
68.20 |
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(B) Public Shareholding |
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135,129,649 |
3.56 |
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4,330,325 |
0.11 |
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191,640,173 |
5.05 |
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656,856,161 |
17.30 |
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987,956,308 |
26.02 |
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137,480,632 |
3.62 |
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51,787,062 |
1.36 |
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16,678,130 |
0.44 |
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13,814,622 |
0.36 |
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|
1,055 |
- |
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|
5,082,710 |
0.13 |
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|
5,152,791 |
0.14 |
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|
468,258 |
0.01 |
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|
3,109,808 |
0.08 |
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|
219,760,446 |
5.79 |
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Total Public shareholding (B) |
1,207,716,754 |
31.80 |
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Total (A)+(B) |
3,797,530,096 |
100.00 |
|
(C) Shares held by Custodians and against which Depository
Receipts have been issued |
- |
- |
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- |
- |
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- |
- |
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- |
- |
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Total (A)+(B)+(C) |
3,797,530,096 |
- |
(1) Indian
Bodies Corporate
Any OtherBUSINESS DETAILS
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Line of Business : |
Providing
Tele-Communications Services |
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Products : |
Basic and
Cellular Telephone Services, Broad-Band and Long Distance Communication
Services. |
GENERAL INFORMATION
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No. of Employees : |
24538
(approximately) |
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Bankers : |
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Facilities : |
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Banking
Relations : |
- |
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Auditors : |
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Name : |
Statutory Auditors S. R. Batliboi And Associates Chartered
Accountants Auditors-US GAAP Ernst And Young Internal Auditors Price Waterhouse
Coopers Private Limited |
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Address : |
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Associates : |
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Subsidiaries : |
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Joint Venture
: |
·
Forum
I Aviation Limited ·
Bridge
Mobile Private Limited ·
Indus
Tower Limited |
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Entities where
key management personnel exercises significant influence / group companies: |
Entity having
significant influence
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CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
5000000000 |
Equity Shares |
Rs.5 /- each |
Rs. 25000.000 Millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
|
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|
3797530096 |
Equity Shares |
Rs.5 /- each |
Rs.
18987.650 Millions |
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Note:
(a) 49,999,000 and 1,516,390,970
equity shares of Rs 10 each issued as fully paid-up bonus shares on February
24, 1997 and September 30, 2001 respectively out of Share Premium account
(b) 21,474,527 Equity Shares of Rs
10 each (March 31,2009-21,409,142) shares are allotted as fully paid up upon
the conversion of Foreign Currency Convertible Bonds (FCCBs) (Refer Note 8 on
Schedule 22)
(c) 2,722,125 Equity Shares of Rs
10 each (March 31,2009-2,722,125) shares are allotted as fully paid up under
the Scheme of amalgamation without payments being received in cash
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
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1] Share Capital |
18987.650 |
18982.398 |
18979.074 |
|
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2] Share Application Money |
0.000 |
2.933 |
12.318 |
|
|
3] Reserves & Surplus |
346523.215 |
256295.074 |
182859.525 |
|
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
365510.865 |
275280.405 |
201850.917 |
|
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LOAN FUNDS |
|
|
|
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1] Secured Loans |
394.296 |
517.304 |
524.244 |
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2] Unsecured Loans |
49994.936 |
76619.167 |
65179.172 |
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TOTAL BORROWING |
50389.232 |
77136.471 |
65703.416 |
|
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DEFERRED TAX LIABILITIES |
32.543 |
0.000 |
638.684 |
|
|
EMPLOYEE STOCK OPTIONS OUTSTANDING |
1860.902 |
1159.239 |
564.017 |
|
|
|
|
|
|
|
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TOTAL |
417793.542 |
353576.115 |
268757.034 |
|
|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
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FIXED ASSETS [Net Block] |
280249.640 |
250133.585 |
190306.475 |
|
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Capital work-in-progress |
15947.360 |
25666.693 |
27510.788 |
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|
|
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|
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|
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INVESTMENT |
157733.191 |
117777.582 |
109528.528 |
|
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DEFERREX TAX ASSETS |
0.000 |
3271.103 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
272.443
|
621.510 |
568.607 |
|
|
Sundry Debtors |
21049.770
|
25500.488 |
27764.572 |
|
|
Cash & Bank Balances |
8167.415
|
22516.027 |
5029.390 |
|
|
Other Current Assets |
663.743
|
1197.127 |
997.269 |
|
|
Loans & Advances |
62097.457
|
44414.947 |
28238.823 |
|
Total
Current Assets |
92250.828
|
94250.099 |
62598.661 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
86471.055
|
91552.896 |
|
|
|
Other Current Liabilities |
35328.878 |
39626.920 |
119090.690 |
|
|
Provisions |
6587.544 |
6344.004 |
2098.762 |
|
Total
Current Liabilities |
128387.477
|
137523.820 |
121189.452 |
|
|
Net Current Assets |
(36136.649)
|
(43273.721) |
(58590.791) |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.873 |
2.034 |
|
|
|
|
|
|
|
|
TOTAL |
417793.542 |
353576.115 |
268757.034 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
356095.407 |
340142.902 |
257035.096 |
|
|
|
Other Income |
897.295 |
1407.368 |
2358.581 |
|
|
|
TOTAL (A) |
356992.702 |
341550.270 |
259393.677 |
|
|
|
|
|
|
|
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Less |
EXPENSES |
|
|
|
|
|
|
|
Access Charges
|
44356.838
|
52034.149
|
40385.333
|
|
|
|
Network Operating
|
74467.226
|
63268.921
|
33004.746
|
|
|
|
Cost of Goods Sold
|
203.225
|
124.051
|
338.502
|
|
|
|
Personnel
|
14371.323
|
14336.407
|
13341.852
|
|
|
|
Sales And Marketing
|
24049.062
|
21763.991
|
17849.080
|
|
|
|
Administrative and Other
expenditure
|
22401.476
|
20875.328
|
19429.499
|
|
|
|
Licence fee and spectrum charges
(revenue share)
|
37548.702
|
35821.761
|
25838.212
|
|
|
|
Charity and donation paid to
satya electoral trust for political purposes
|
179.626
|
219.463
|
317.416
|
|
|
|
TOTAL (B) |
217577.478 |
208444.071 |
150504.640 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
139415.224 |
133106.199 |
108889.037 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
(8556.474) |
17639.842 |
4837.080 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
147971.698 |
115466.357 |
104051.957 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
40979.212 |
33850.990 |
34326.534 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
106992.486 |
81615.367 |
69725.423 |
|
|
|
|
|
|
|
|
|
Less |
MAT CREDIT |
(10385.866) |
(1396.304) |
(241.767) |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
23116.805 |
5573.286 |
7525.268 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
94261.547 |
77438.385 |
62441.922 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
- Basic |
24.83 |
20.40 |
32.91 |
|
|
|
- Diluted |
24.82 |
20.39 |
32.87 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2010 |
30.09.2010 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
93237.000 |
92999.000 |
|
Total Expenditure |
|
59570.000 |
60015.000 |
|
PBIDT (Excl OI) |
|
33667.000 |
32984.000 |
|
Other Income |
|
500.000 |
199.000 |
|
Operating Profit |
|
34167.000 |
33183.000 |
|
Interest |
|
1446.000 |
(1460.000) |
|
PBDT |
|
32721.000 |
34643.000 |
|
Depreciation |
|
10667.000 |
10662.000 |
|
Profit Before Tax |
|
22054.000 |
23981.000 |
|
Tax |
|
2745.000 |
2978.000 |
|
Profit After Tax |
|
19309.000 |
21003.000 |
|
Net Profit |
|
19309.000 |
21003.000 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
26.40 |
22.67 |
24.07
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
30.05 |
24.00 |
27.13
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
28.72 |
23.70 |
27.57
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.29 |
0.30 |
0.34
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.49 |
0.78 |
0.92
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.72 |
0.69 |
0.52
|
LOCAL AGENCY FURTHER INFORMATION
OVERVIEW:
Subject is one of Asia’s telecommunication service providers
with presence in all the 22 licensed jurisdictions (known as Telecom Circles)
in
LIQUIDITY:
The Company meets its working capital requirement by having
suitable commercial agreement with its creditors and sufficient standby credit
lines with banks and financial institutions. It deploys a robust cash
management system to ensure timely availability of funds and its deployment.
The Company has been able to optimise finance cost and generate funds for
expansion by minimising the amount of funds tied-up in the current assets.
As on 31.03.2010, the Company has cash and bank balance of
Rs 25786.000 millions and marketable securities of Rs 51512.000 millions. The
Company actively manages the short-term liquidity to generate optimum returns
by investments made in debt and money market instruments including liquid and
income debt fund schemes, fixed maturity plans and other similar instruments.
The Company foresees liquidity requirements for funding the 3G spectrum and BWA
spectrum auction fees. The strength of the Company's balance sheet has enabled
the Company to adequately tie up funding for expected 3G and BWA liquidity
requirements on favorable terms.
On 30.03.2010, the Company has also announced acquisition of
Zain Africa B.V. in a USD 10.7 bn deal. The Company has tied up adequate
funding to cover the deal. The Company expects to maintain a comfortable
liquidity position post payment of spectrum fees and closure of the
acquisition.
GENERAL
TO RESERVE:
Out of total profit of Rs 94262.000 millions for the
financial year 2009-10, an amount of Rs 7100.000 millions has been transferred
to the General Reserve.
QUALITY:
Quality is an integral element of Bharti Airtel’s DNA. Lean
Six Sigma, Process Standardisation, Performance Variance Reduction (PVR) and
Knowledge Management are some of the quality initiatives which are deeply
ingrained in Bharti Airtel’s processes. The Company continuously invests in
training and development of its employees to champion these initiatives. It
continually raises the benchmark by getting assessed by external quality
agencies. In this regard, its ISO27001 implementation is among the largest in
the world. Bharti Airtel is TL9000 and PCI DSS compliant and its IT
infrastructure and processes are compliant with COBIT and ITIL best practices.
BRANDING:
Bharti Airtel has been rated as the ‘Strongest Brand’ by the
Economic Times - Brand Finance ‘Brand Power Rating’. Brand Airtel was the only corporate
brand to be awarded the AAA rating which means ‘extremely strong’ and it
improved its rating from the previous AA+. Airtel was also rated as the 7th
Most Valuable Brand in
In mobile services, the overarching brand philosophy focused
on celebrating the idea of people and relationships. It continued the segmented
approach, which strengthened the brand’s relevance across various
socio-economic segments of close to 600.000 millions mobile users in the
country.
HIGHLIGHTS
OF THE YEAR:
Major
agreements and alliances:
During the year, the Company signed the following major
agreements relating to operations, customer service,
innovation and technology:
• With Alcatel Lucent to manage Bharti Airtel’s
pan-India access network for broadband and telephone services
through a joint venture company
• With Ericsson and Nokia Siemens extending network
upgradation contract for 2 years for providing a superlative customer
experience at a lower cost
• With Royal Government of Bhutan to launch a new
terrestrial cable network to
• With Cisco to create and launch unique products,
including managed data services, hosted unified communications, connected
branch services and Cisco TelePresence
• With HTMT and Firstsource, expanding the call
center contracts to include two more partners, thereby achieving a capability
to handle 1.4 bn minutes of customer calls
• With Limelight Networks for global content delivery
network
• With global telcos in launching unity cable system
to boost Trans-Pacific connectivity
• With global telcos to build and operate the
Southeast Asia Japan Cable System rated among the highest capacity cable
systems in the world
• With Twitter, allowing its customers to send and receive
SMS tweets on Twitter
• With Dow Jones to launch The Wall Street Journal
India mobile application providing the latest international and
Indian financial and business news from The Wall Street
Journal and Dow Jones Newswires, exclusively for Airtel customers on the mobile
platform
• Investment in Asia America Gateway (AAG), Unity North,
South East Asia Japan Cable system (SJC), India Middle East Western Europe
(IMEWE), East African Submarine System (EASSy) cable systems with consortium
partners for extending global reach to 50 countries across 5 continents
New
products/initiatives:
During the year, the Company launched various new and
innovative products and services, which enabled it to strengthen its leadership
position in an intensely competitive market. Few of the key launches of the
year included:
• World’s first Windows-based Online Desktop powered by Microsoft and Nivio on Airtel
broadband
•
550+ devices categorised under 25 customer categories
• ‘Airtel Hosted
Mail’ - powered by Microsoft Exchange Server 2007, a corporate mailing
solution for Small and Medium Business (SMB) across the country to offer a
robust enterprise grade mailing solution with an inbox as big as 4 GB along
with a wider range of communication tools enabling them to share email
messages, contacts, calendars, work folders, task list and documents from
either their PC or mobile phone
• HTC Smart,
world’s first commercial 3G Smartphone based on brew MP platform in partnership
with HTC and Qualcomm
• Ultra fast 50 MBPS
broadband offering the fastest wire line broadband in the country. The
service will be initially available in
• “VPN in a box”,
a bundled product offering – MPLS bundled with last mile connective and
customer premise hardware
• Website Builder
for customers with 15,000 built-in templates, domain names and e-commerce
capabilities
• mChek on
voice, thereby expanding the range of mobile commerce application
• Digital Media
Exchange (DMX) and Teleport services for integrated content delivery for
Media customers thereby marking Airtel’s foray into the “4th screen” for
digital cinema content delivery
• Airtel Digital TV
Recorder, an enhanced Set Top Box (STB) with capability to record live
television, anytime, anywhere
• Mobile Comics
Portal on Airtel Live, allowing its subscribers to access more than 300 Indian
and International comics via WAP
• Freedom Plan, giving
its customers to choose from a variety of plans based on usage and calling
patterns and; Turbo Plan allowing
its customers to enjoy substantial advantage while roaming anywhere
• Far-East Connect
Network to serve global wholesale by linking Singapore and US via Asia America Gateway (AAG) cable landing in Singapore
• Ethernet Services in
more than 25 global cities across Asia, Europe, North America and
• Mobile Application
Tool for Enterprises (MATE) that enables mobile devices to become an
integral part of enterprise network, by allowing seamless, secure and On-Demand
access to enterprise business data from anywhere, anytime
MANAGEMENT
DISCUSSION and ANALYSIS
ECONOMIC OVERVIEW
The global economy is recovering better than expected. With
the recovery gaining traction, risks to global financial stability appears to
be easing out. Better growth prospects in many emerging economies and low
interest rates in major economies shall influence capital flows in emerging
economies. International Monetary Fund (IMF) estimates global GDP to grow at
4.25% in 2010, following a 0.5% contraction in 2009. Amongst economies of size,
Importantly, all these sectors maintained a sustained growth
trend quarter-over-quarter during the year. This trend
together with the prediction of a favourable south-west
monsoon and accelerated spending on infrastructure development shall help
Indian economy return back to the GDP growth range of 8.5-9.0% in the financial
year 2010-11.
INDIAN TELECOM SECTOR
services. The convenience of the mobile phone as an
instrument for conduct of financial transactions and its potential in the
process of financial inclusion and growth has been well recognised. There is a
large untapped potential for these services in the Indian market. Given the
huge growth potential offered by the telecom industry through the increased
coverage and newer products and services, the competition will remain intense
with both existing and new players attempting to maximise their share of the
growing telecom pie.
Indian telecom sector continued to register a robust growth
in the financial year 2009-10 and added 191.550 millions new connections
between April 2009 and March 2010. The number of telecom subscribers in
While wireline connections de-grew by 2.61% during the
financial year 2009-10, the growth of the telecom sector was driven by wireless
segment. The wireless segment grew by 49% during the year reaching 584.320
millions as on 31.03.2010.
Broadband subscriptions reached about 8.750 millions at the
end of March 2010. Broadband connectivity has reached 4,044 cities; 5,431 block
headquarters and 613 district headquarters covering about 106,559 villages.
Recent
developments in regulation:
Telecom sector is one of the highly regulated sectors in
Regulatory Changes
• Auction of 3G and
BWA
On 25.02.2010, DoT issued a notice inviting application
(NIA) for 3G auction to invite potential bidders to apply for 3G (2.1 GHz) and
BWA (2.3 GHz) spectrum auction. The 3G mobile services will allow high-speed
content download and broadband services. BWA (Broadband Wireless Access), also
known as WiMAX in international jargon is wireless (not mobile) broadband
access technology.
The successful bidders will be allowed to offer 3G services
on commercial basis from 01.09.2010 while fulfilling roll-out obligations
within five years from the time of the grant of spectrum.
• Mobile Number
Portability
On 23.09.2009, TRAI issued “Telecommunication Mobile Number
Portability Regulations, 2009”. Subject to fulfillment of certain conditions,
the Regulation will allow a mobile subscriber to switch to another service
provider with in the same licensed area at a nominal charge. The date of
enforcement of the Regulations is yet to be notified.
• Launch of Calling
Card by Long Distance Operators
On 21.08.2009, DoT has allowed the national and
international long distance operators to offer voice service excluding IN based
services i.e. tele voting, toll free service, value added services, ringtones
and local voice service, through calling cards.
• Restriction on
On 23.07.2009, DoT, vide a circular, introduced a lock-in
period for sale of equity by a person who hold 10% or more share capital in UAS
licensee company on the effective date of UAS license and whose net-worth is
taken into consideration for determining the eligibility for grant of UAS
license, till completion of 3 years from the effective date of the UAS licence
or till fulfillment of all the rollout obligations, whichever is earlier. The
circular permits issue of additional equity share capital by the UAS licensee
company by way of private placement/ public issues and bars declaration of dividend
in such cases. However, the provision of lock-in period will not apply, for
transfer of shares in favour of lending financial institutions/banks in
pursuance of enforcement of pledge of equity shares with them, in the event of
defaults committed by the UAS licensee company.
• Withdrawal of
Benefit of Exemption of Licence Fee for Fixed Wireline Services in Rural Areas
On 15.052009, TRAI withdrew its order /benefit of licence
fee exemption for fixed wire line services in rural
areas which they had provided to all operators vide
theirearlier order dated 29.08 2008.
• Value Added
Services
On 27.04.2009, TRAI issued a direction requiring the service
providers to procure written consent of the subscriber before activation of
chargeable VAS such as Hello Tunes etc. by dialing certain special keys like
‘*’. The direction also requires service providers to seek explicit consent of
the customer for activation of the value added services in case the provision
of VAS is through mechanism of pressing of special keys.
Regulatory Work in Progress
• Subscriber
re-verification
On 30.09.2009, DoT issued a direction mandating the
re-verification of existing subscriber base within a time period of maximum 1
year w.e.f. 01.11.2009.
• DTH Tariff
Related
On 24.12.2009, TRAI issued a consultation paper on tariff
related issues for DTH services. The paper takes up the following important
issues for deliberations:
- Need to differentiate various packages for the purpose of
wholesale tariff determination and related terms and conditions
- Need for a DTH operator to extend a-la-carte mode of
service provisioning of a TV channel to the subscriber and related terms and
conditions
• Passive
Infrastructure Related
On 12.01.2010, TRAI issued a pre-consultation paper seeking
views of the industry players to bring the telecom
tower infrastructure business under the ambit of
regulations. TRAI also wanted to review the impact of radiations from telecom
towers and right of way in erecting these towers.
• Revised Spectrum
Charges
On 25.022010, DoT announced revised 2G spectrum charges for
both the GSM and CDMA operators, which if implemented, would be effective from
01.04.2010. Based on the TDSAT order, as on date the order has not been
enforced by the Government.
• Security
Clearance for procuring Telecom Equipments/Software
On 25.02.2010, DoT made it compulsory for all telecom
operators to get security clearance on all network equipments before it is
imported into
• Co-location
Charges
On 17.03.2010, TRAI issued Consultation Paper on co-location
charges containing detailed terms and conditions for co-location, measures to
ensure transparent and non-discriminatory treatment in pricing, provisioning of
co-location facilities and sharing of cost of co-location by the seeker and
provider.
REVIEW OF OPERATIONS
Bharti Airtel put up a strong performance in the financial
year 2009-10. With the highest-ever net addition of 34.000 millions customers
in a single year, it grew its customer base by 35% and closed the year with
131.000 millions customers on its network in
The Company closed the financial year 2009-10, carrying over
2 bn minutes a day on its network. It added 31 census towns and 24,027
non-census towns and villages under its coverage and grew the population
coverage to 84% (from 81% as at 31.03.2009). The Company’s optic fibre network
grew to 126,357 route kms with addition of 25,020 route kms during the year.
SEGMENT- WISE PERFORMANCE
Mobile Services
Mobile services segment is the dominant contributor to the
Company’s revenues and customer base. The Company expanded its operations to
5,091 census towns and 438,933 non census towns and villages in
In
Revenues from mobile services for the financial year were Rs
325717.000 millions, representing a growth of 7% over the revenues in the
previous financial year. Mobile services contributed 78% to the consolidated
revenues. The growth in revenues was despite of the growing competition with
the entry of new players, coupled with significant reduction in tariffs during
financial year 2008-09.
Telemedia Services
Under telemedia services, Bharti Airtel provides broadband,
data and fixed line telephone services across 89 cities of
The revenues from telemedia services for the financial year
were Rs 34194.000 millions, representing a growth of 2% over the revenues in
the previous financial year.
Bharti Airtel’s enterprise services is fast emerging as
India’s leading integrated communications solutions provider for large
enterprise and carrier customers, in and beyond India. Offering a full suite of
telecommunication services across voice, data, network integration and managed
services; Bharti Airtel is a trusted partner to
Enterprise services owns a state of the art national and
international network consisting of cable infrastructure and global Points of
Presence (PoP) and everything else that is required to provide unmatched communication
solutions to its partners and clients. Its national long distance
infrastructure comprises of 126,357 route km of optical fibre, over 4,488 MPLS
and SDH POPs and over 1,700 POIs with the local exchanges, providing a pan
India reach in 304 LDCA’s and 1,741 SDCA’s. The international infrastructure
includes ownership of the i2i submarine cable system connecting Chennai to
Singapore; consortium ownership of the SMW4 submarine cable system connecting
Chennai and Mumbai to Singapore and Europe; and its investments in new cable
systems such as Asia America Gateway (AAG), India Middle East and Western
Europe (IMEWE), Unity North, EIG (Europe India Gateway) and East Africa
Submarine System (EASSy), extending there reach all across the globe with over
225,000 route kms, covering 50 countries spread over 5 continents.
specialises in providing customised solutions to address
unique requirements of different industry verticals: BFSI, IT, ITeS,
Manufacturing and Distribution, Media, Education, Telecom, Government, PSUs and
Retail among others. 43 The revenues from the enterprise services for the
financial year were Rs 84386.000 millions, representing a growth of 1% over the
revenues in the previous financial year.
Digital TV Services
Bharti Airtel’s Digital TV Services is amongst the
frontrunners in DTH domain. In addition to a superior viewer’s experience, the
Company offers innovative packages like pay per view content and interactive
services. It launched digital TV recorder, enabling customers to record live TV
content through their mobile phone.
With a customer base of 2.500 millions; and services
spreading across 5,000 towns and 15,000 villages; Digital TV services is well
placed to increase its customer and market share, and eventually emerge as the
market leader.
Passive Infrastructure Services
Bharti Infratel Limited, a subsidiary of Bharti Airtel,
provides passive infrastructure services on non-discriminatory basis to all
telecom operators in
Bharti Infratel has 30,568 towers in 11 circles, excluding
the 35,066 towers in 12 circles for which the right of use has been assigned to
OUTLOOK
Being the frontrunner in Indian telecom space, Bharti
Airtel’s outlook is promising in line with the future growth potential of the
sector. Company’s successful forays in
Bharti Airtel’s unwavering focus on cost and synergies
across the organisation will keep it in good stead and this very business model
augurs well for its expansion and success in new geographies. The Company has entered
into definitive agreements with the Zain Group to acquire Zain Africa B.V., for
an enterprise value of USD 10.7 bn. The Company, through its overseas wholly
owned subsidiary companies, will acquire Zain Africa’s mobile operations in 15
countries with a total subscriber base of over 42.000 millions, resulting in a
footprint covering 1.8 bn people across Asia and
Contingent
liabilities
a) Total Guarantees outstanding as
at 31.03.2010 amounting to Rs 30435.163 millions (31.03.2009 Rs 20895.580
millions) have been issued by banks and financial institutions on behalf of the
Company.
Corporate Guarantees outstanding
as at 31.03.2010 amounting to Rs 8498.147 millions (31.03.2009 Rs 1576.542
millions) have been given to banks and financial institutions as mentioned
above on behalf of Group Companies.
b) Claims against the Company not
acknowledged as debt: (Excluding cases where the possibility of any outflow in
settlement is remote):
Fixed
assets
·
Goodwill
·
Leasehold
land
·
Freehold
hand
·
Leasehold
VSAT assets
·
Plant
and machinery
·
Air
conditioners
·
Building
·
leasehold
improvements
·
Office
equipment
·
Computer
·
Vehicle
·
Furniture
and fixtures
·
Software
·
Bandwidth
·
Licenses
·
Vehicle
on Finance Lease
AS PER WEB SITE
DETAILS:
PROFILE:
They are
one of world’s leading providers of telecommunication services with presence in
all the 22 licensed jurisdictions (also known as Telecom Circles) in
The company also deploys, owns and manages passive infrastructure pertaining to
telecom operations under its subsidiary bharti Infratel Limited. bharti
Infratel owns 42% of Indus Towers Limited. bharti Infratel and
About Subject:
Subject
is a leading global telecommunications company with operations in 19 countries
across Asia and
Media Release:
Chennai 27.01.2011: bharti airtel,
Speaking on the occasion, Mr. Atul
Bindal, president-mobile services, bharti airtel said,
"Today, as we introduce the airtel 3G promise in namma Chennai and
Keeping the focus on the user experience and relevant services, airtel’s 3G
price plans are personalised and simple to understand:
1. PAYG VBC (Pay as you go):
For all existing airtel 2G customers who want to experience the power of airtel
internet on 3G for a short while, this tariff plan is the solution. The
customer will pay the same prevailing data rates as on 2G service, but with the
advantage of a faster mobile broadband.
2. Sachet Plans: The
objective of these plans is to drive mass trial and adoption of 3G, and will
serve as the natural upgrade path to higher rental plans. These plans will have
validity of lesser than or equal to 10 days.
|
Name of the plan |
MRP |
Free Data |
Validity |
|
Sachet Plan |
Rs 8 |
10
MB |
1
day (Same day) |
|
Sachet Plan (Time based) |
Rs.
45 |
30
minutes |
3
days (1+2 Days) |
|
Sachet Plan |
Rs.
63 |
65
MB |
1
day (Same day) |
3. Standard Plans:
These plans are best suited for the mid to high-end users of data and will have
a validity of 30 days.
|
Name of the plan |
MRP - Prepaid
|
MRP -
Postpaid |
Free Data |
Validity |
|
Standard Plan |
Rs.
101 |
Rs.
100 |
100MB |
30
Days |
|
Standard Plan |
Rs.
201 |
Rs.
200 |
250MB |
30
Days |
|
Standard Plan |
Rs.
451 |
Rs.
450 |
600MB |
30
Days |
|
Standard Plan |
Rs.
751 |
Rs.
750 |
2GB |
30
Days |
4. FlexiShield Plan: This plan has a combination of free data usage and a low
inbuilt VBC rate. The plan is constructed in a way that it provides the
customer, the flexibility to start from a relatively lower initial rental
commitment and shields from a bill shock.
|
Name of the plan |
MRP - Prepaid
|
MRP -
Postpaid |
Free Data |
Validity |
|
FlexiShield Plan |
Rs.
675 |
Rs.
675 |
1.25GB |
30
Days |
Note: Sachet Plans available only on prepaid,flexi shield plan available on
both postpaid and prepaid
airtel also introduces an initiative to help customers manage their 3G data
usage and prevent ‘bill shock’ - by offering proactive, personalized and timely
data usage alerts to its customers. The company has also introduced a first of
its kind ‘internet usage calculator’ (www.airtel.in/Airtel-3G/) that will help
customers monitor and analyse their current internet data usage and choose an
airtel 3G plan accordingly.
About bharti airtel limited :
bharti airtel limited is a leading global telecommunications company with
operations in 19 countries across Asia and
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 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.45.74 |
|
|
1 |
Rs.72.73 |
|
Euro |
1 |
Rs.62.73 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
46 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.