MIRA
INFORM REPORT
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Report Date : |
13.05.2011 |
IDENTIFICATION DETAILS
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Name : |
VIDEOCON TELECOMMUNICATIONS LIMITED (w.e.f. 20.04.2011) |
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Formerly Known
As : |
DATACOM SOLUTIONS LIMITED (w.e.f. 12.11.2009) DATACOM SOLUTIONS PRIVATE LIMITED |
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Registered
Office : |
171 – C, 17th Floor, Mittal Court, C Wing, Nariman Point,
Mumbai – 400021, |
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Country : |
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Financials (as
on) : |
30.09.2009 |
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Date of
Incorporation : |
07.06.2007 |
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Com. Reg. No.: |
16-204763 |
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Capital
Investment / Paid-up Capital : |
Rs.5400.000 Millions |
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CIN No.: [Company Identification
No.] |
U72900MH2007PLC204763 |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business
: |
Providing Telecommunication Services |
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No. of Employees
: |
Not Divulged |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 21600000 |
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Status : |
Yet to commence business |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a subsidiary of Videocon International Electronics Limited.
It is a relatively new company and yet to commence its commercial business
activities. Trade relations are reported as fair. Payments are reported to be
usually correct and as per commitments. Venugopal Dhoot, Videocon Group Chairman and Rajkumar Dhoot, Managing
Director Videocon Telecommunications Limited appeared before the CBI in
connection with the probe into 2G telecom spectrum scam. Datacom Solutions,
which later changed its name to Videocon Telecommunications was the first to
get a spectrum licence in several circles across Keeping in view the aforesaid, it would be advisable to enter into
business dealings on a secured trade terms and conditions. The Profit and Loss of the Company is not available. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
INFORMATION DECLINED BY
|
Name : |
Mr. Chandrashekar Nagarkar |
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Designation : |
Finance Controller |
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Contact No.: |
91-22-42555000 |
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Date : |
11.05.2011 |
LOCATIONS
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Registered Office : |
171 – C, 17th Floor, Mittal Court, C Wing, Nariman Point,
Mumbai – 400021, |
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Tel. No.: |
91-22-42555000 |
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E-Mail : |
DIRECTORS
As On 31.12.2009
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Name : |
Mr. Pradipkumar Dhoot |
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Designation : |
Director |
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Address : |
Flat No. 99, Videocon House, 1st Floor, |
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Date of Birth/Age : |
22.03.1960 |
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Date of Appointment : |
12.12.2007 |
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DIN No. : |
01635315 |
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Name : |
Mr. Rajkumar Nandlal Dhoot |
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Designation : |
Managing Director |
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Address : |
Dhoot Bunglow, |
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Date of Birth/Age : |
11.09.1955 |
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Date of Appointment : |
12.12.2007 |
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DIN No. : |
00419480 |
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Name : |
Mr. Subhash Shamsunder Dayama |
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Designation : |
Director |
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Address : |
Sukharta Society, |
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Date of Birth/Age : |
05.05.1961 |
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Date of Appointment : |
10.06.2008 |
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DIN No. : |
00217692 |
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Name : |
Mr. Kuldeep Kumar Drabu |
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Designation : |
Director |
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Address : |
C – 1/13, DLF Qutub Enclave, Phase I, Gurgaon – 122002, |
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Date of Birth/Age : |
30.09.1958 |
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Date of Appointment : |
12.12.2007 |
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Date of Cessation : |
24.09.2009 |
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DIN No. : |
00087481 |
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Name : |
Manjit Singh |
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Designation : |
Director |
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Address : |
B-54, Sector 14, Noida – 201301, |
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Date of Birth/Age : |
01.10.1944 |
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Date of Appointment : |
22.08.2009 |
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Date of Cessation : |
18.09.2009 |
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DIN No. : |
01747143 |
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Name : |
Shriyans Kumar Jain |
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Designation : |
Director |
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Address : |
BE-43, Janak Puri, |
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Date of Birth/Age : |
09.04.1945 |
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Date of Appointment : |
22.08.2007 |
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Date of Cessation : |
14.03.2009 |
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DIN No. : |
01565460 |
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Name : |
Mr. Mahendra Nahata |
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Designation : |
Additional Director |
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Address : |
93, Phase VI, MOhali – 160055, |
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Date of Birth/Age : |
19.05.1959 |
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Date of Appointment : |
10.06.2008 |
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Date of Cessation : |
15.12.2008 |
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DIN No. : |
00052898 |
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Name : |
Mr. Sunil Kumar Kulshrestha |
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Designation : |
Additional Director |
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Address : |
A-719, Mea Apartments, Sector 62, Noida – 201307, |
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Date of Birth/Age : |
26.05.1953 |
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Date of Appointment : |
15.12.2008 |
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Date of Cessation : |
18.09.2009 |
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DIN No. : |
01070854 |
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Name : |
Mr. Surendra Lunia |
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Designation : |
Additional Director |
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Address : |
H. No. 607, Sector 36-B, |
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Date of Birth/Age : |
18.10.1962 |
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Date of Appointment : |
14.03.2009 |
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Date of Cessation : |
18.09.2009 |
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DIN No. : |
00121156 |
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Name : |
Mr. Anil Kumar Aggarwal |
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Designation : |
Director |
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Address : |
506 Surya Kiran 19 Kasturba Gandhi Marg, |
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Date of Birth/Age : |
15.07.1968 |
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DIN No. : |
00207013 |
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Name : |
Mr. Kamal Kumar Sharma |
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Designation : |
Director |
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Address : |
93, Phase VI, Mohali – 160055, |
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Date of Birth/Age : |
02.09.1959 |
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DIN No. : |
00606090 |
KEY EXECUTIVES
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Name : |
Mr. Chandrashekhar Ashok Nagarkar |
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Designation : |
Company Secretary / Finance Controller |
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Address : |
37/5, Omkar Apartment, Renavikar Nagar, Savedi, Ahmednagar – 414003, |
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Date of Birth/Age : |
17.03.1976 |
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Date of Appointment : |
10.06.2008 |
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Pan No. : |
ACMPN7915R |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2009
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Names of Shareholders |
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No. of Shares |
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Videocon Industries Limited, |
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56000000 |
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Videocon International Electronics Limited, |
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429999960 |
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Jumbo Techno Services Private Limited, |
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54000000 |
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Dhoot Nandlal Venugopal |
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10 |
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Dhoot Nandlal Pradipkumar |
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10 |
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Dhoot Nandlal Rajkumar |
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10 |
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Dhoot Pradipkumar Saurabh |
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10 |
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Total |
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540000000 |
As on 23.01.2010
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List of Allottees |
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No. of Shares |
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Videocon Industries Limited, |
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99552000 |
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Videocon International Electronics Limited, |
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764448000 |
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Jumbo Techno Services Private Limited, |
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96000000 |
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Total |
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960000000 |
As on 31.12.2009
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Equity Share
Breakup |
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Percentage of
Holding |
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Category |
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Bodies corporate |
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100.00 |
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Total
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Providing Telecommunication Services |
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GENERAL INFORMATION
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Bankers : |
Not Available |
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Facilities : |
Notes: Short term loans of Rs.12110.290 millions (previous year Rs.9990.000
millions) are secured by negative lien on the telecom licence, pledge/non
disposal undertaking of shares of the company held by the ultimate holding
company Videocon Industries Limited (VIL) Shore term loan of Rs.3579.980 millions (previous year Nil) will be
secured by first pari-passu charge on the assets of the company after
conversion of the loan into project loan under syndication. Till then the
loan is secured by first pari-passu charge on a property owned by Videocon
Industries Limited, the ultimate holding company. These loans are further secured by corporate guarantee of Videcon
Industries Limited and personal guarantees of Shri. V. N. Dhoot, Shri P. N.
Dhoot and Shri R. N. Dhoot Vehicle loans from banks are secured by way of hypothecation of
vehicles acquired out of the said loans.
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Financial Institute : |
SBICAP Trustee
Company Limited - 202, Maker Tower, 'E', Cuffe Parade, Colaba, Mumbai –
400005, Maharashtra, India |
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Banking
Relations : |
- |
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Auditors : |
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Name : |
Khandelwal Jain and Company Chartered Accountant |
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Address : |
221, Hans Bhawan, Bahadur Shah Zafar Marg, |
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Pan No. : |
AAAFK0985C |
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Name : |
Kadam and Company Chartered Accountant |
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Address : |
“Vedant” 8/9, Viraj Estate, Opposite Tarakpur Bus Stand, Ahmednagar –
414003, |
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Pan No. : |
ABBPK8294J |
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Holding Company : |
CIN: U32100MH2003PLC142232 |
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Ultimate Holding Company : |
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Subsidiary : |
CIN: U64201PB2008PTC031630 |
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Associates : |
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CAPITAL STRUCTURE
As on 30.09.2009
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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4000000000 |
Equity Shares |
Rs.10/- each |
Rs.40000.000 Millions |
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4000000000 |
Preference Shares |
Rs.10/- each |
Rs.40000.000 Millions |
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Total |
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Rs.80000.000
millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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540000000 |
Equity Shares |
Rs.10/- each |
Rs.5400.000 Millions |
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FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
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30.09.2009 |
31.08.2008 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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5400.000 |
1500.000 |
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2] Share Application Money |
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0.000 |
0.000 |
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3] Reserves & Surplus |
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0.000 |
0.000 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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5400.000 |
1500.000 |
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LOAN FUNDS |
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1] Secured Loans |
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15695.367 |
9996.982 |
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2] Unsecured Loans |
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3417.552 |
8300.074 |
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TOTAL BORROWING |
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19112.919 |
18297.056 |
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DEFERRED TAX LIABILITIES |
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0.000 |
0.000 |
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TOTAL |
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24512.919 |
19797.056 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
|
43.485 |
26.549 |
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Capital work-in-progress |
|
21045.601 |
17036.031 |
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Preoperative Expenditure Pending Allocation |
|
6382.002 |
1107.459 |
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INVESTMENT |
|
0.499 |
0.499 |
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DEFERREX TAX ASSETS |
|
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
|
0.000
|
0.000 |
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Sundry Debtors |
|
0.000
|
0.000 |
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Cash & Bank Balances |
|
1605.621
|
854.438 |
|
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Other Current Assets |
|
82.228
|
44.686 |
|
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Loans & Advances |
|
304.739
|
802.239 |
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Total
Current Assets |
|
1992.588
|
1701.363 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
2551.177
|
54.632 |
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|
Other Current Liabilities |
|
2396.485
|
19.176 |
|
|
Provisions |
|
3.594
|
1.037 |
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Total
Current Liabilities |
|
4951.256
|
74.845 |
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Net Current Assets |
|
(2958.668)
|
1626.518 |
|
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MISCELLANEOUS EXPENSES |
|
0.000 |
0.000 |
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|
|
|
|
|
|
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TOTAL |
|
24512.919 |
19797.056 |
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KEY RATIOS
|
PARTICULARS |
|
|
30.09.2009 |
31.08.2008 |
|
Debt Equity Ratio (Total Liability/Networth) |
|
|
4.46 |
12.71 |
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Current Ratio (Current Asset/Current Liability) |
|
|
0.40 |
22.73 |
LOCAL AGENCY FURTHER INFORMATION
Details of Sundry Creditors:
|
Particulars |
|
30.09.2009 (Rs. in millions) |
31.08.2008 (Rs.
in millions) |
|
Sundry Creditors |
|
|
|
|
- Due to Micro,
Small and Medium Enterprises |
|
-- |
-- |
|
- Due to Others |
|
2551.177 |
54.632 |
Note:
The Registered office of the company has been shifted from 3055, Sector
– 70, S.A.S. Nagar, Mohali – 160071,
OPERATIONS AND
PERFORMANCE:
The Company has
been awarded UAS License for 21 circles by the Department of
Telecommunications, Ministry of Communications and IT, Government of India.
During the year,
the Company started taking necessary steps for roll-out of services. The
Company has initiated the process of erecting the necessary infrastructure
required for providing the GSM services in different circles. The Company also
is in advanced stage of syndicating the necessary finances for the proposed
capital expenditure programme and is in discussions with various
banks/financial institutions for the same. The Company is also completing the
market research in various circles.
The financial year
of the Company was extended by one month and as such the year has ended on
30.09.2009. This has been done to bring the financial year of the company in
line with that of the holding company.
As of 30th
September, 2009, the total pre-operative expenditure pending allocation, stands
at Rs.6382.002 millions (previous year Rs.1107.459 millions).
During the period,
the Company has further augmented its equity capital. The paid-up capital of
the Company has increased from Rs.1500.000 millions to Rs.5400.000 millions.
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Corporate
identity number of the company |
U72900MH2007PLC204763
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Name of the
company |
VIDEOCON TELECOMMUNICATIONS LIMITED |
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Address of the
registered office or of the principal place of business in |
171-C, 17TH
Floor, Mittal Court, C Wing, Nariman Point, Mumbai - 400021, |
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This form is for |
Creation of
charge |
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Type of charge |
Immovable
Property Movable Property As per attached
Indenture of Mortgage |
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Particular of
charge holder |
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Nature of instrument
creating charge |
Indenture of
Mortgage dated 11.10.2010 executed in favour of SBICAP Trustee Company
Limited acting as Security Trustee for the financial assistance aggregating
of Rs.71500.000 millions given to the company to secure the lenders (list of
lenders is attached). |
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Date of
instrument Creating the charge |
11.10.2010 |
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Amount secured by
the charge |
Rs.71500.000
millions |
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Brief of the
principal terms an conditions and extent and operation of the charge |
Rate of Interest
- At SBAR present effective rate, 11.75% p.a. (floating) with annual reset of
spread from the date of first disbursement, applicable at monthly rests. Terms of
Repayment - To be repaid in 26 quarterly structured installments commencing
at the end of the quarter after the availability period. Extent and
Operation of the charge - The charge shall operate as security for due
repayment by the Company to the Lenders of their Rupee Loan of Rs.71500.000
millions together with interest, liquidated damages, costs, charges and
expenses and all other monies payable by the Company to the Lenders in terms
of the Loan Agreement dated 31.05.2010 entered into by the Company with the
Lenders. |
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Particulars of
the property charged |
Freehold DDA Flat
No. 254, First Floor, Block B, Pocket 5, Janta Category Sector 11, situated
in Layout plan in Rohini, New Delhi -
110 085 together with all the plant and machinery, fixtures and fittings,
both present and future. |
Contingent Liabilities:
Contingent Liabilities not provided for in respect of:
|
Particulars |
30.09.2009 (Rs. in
Millions) |
|
Letters of Guarantees |
8809.095 |
|
Letters of Credit |
973.495 |
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FIXED ASSETS:
v Plant and machinery
v Furniture and fixture
v Computer
v Office equipment
v Vehicles
v Computer-software
WEBSITE DETAILS:
PRESS RELEASES:
DATACOM TO BE
NAMED AS VIDEOCON TELECOMMUNICATIONS LIMITED; SERVICE LAUNCH NEXT MONTH
New entrant Datacom is finally set to launch its GSM-based mobile
services after a prolonged delay. Furthermore, the company is also set to
change its name from Datacom to Videocon Telecommunications Limited (VTL)
reports the Hindustan Times.
The name change signifies the change in management control rights. In fact the
firm was involved in a bitter dispute over the management control rights issue
with the HFCL promoters Nahatas and Dhoots of the Videocon Group staking claim
over the management control rights of the firm.
The Nahatas own 36% stake in the JV. He is set to receive Rs.14000.000 millions
to offload his entire stake in Datacom.
The differences over management control scaled to such an extent that things
almost came to a standstill for more than a year.
This also led to exit of the company’s CEO, Ravi Sharma and others at helm.
Finally R.N. Dhoot took over charge of the company affairs and is now assisted
by his other brother P.N. Dhoot.
Things at Datacom had started to look positive when the company awarded IT
outsourcing contract to IBM and also inked a tower sharing agreement with
Aircel and Datacom. The company’s advertising contract was also up for grabs
and Singapore-based T.A.G was a front runner to bag the contract. For wireless
equipment the company had signed a MoU with Huawei.
The company is scheduled to launch its mobile services next month starting with
Mumbai circle to be followed by Tamil Nadu and
CBI QUESTIONS DHOOT BROTHERS ON 2G SCAM; SHOURIE MISSES DATE
BS Reporter /
Videocon Group Chairman Venugopal Dhoot appeared before the Central
Bureau of Investigation (CBI) today in connection with the probe into the 2G
telecom spectrum scam. Dhoot, with his brother and Rajya Sabha MP, Rajkumar
Dhoot, was questioned for five hours.
The brothers arrived before the investigating agency at 11 am and left
in the evening.
Datacom Solutions, which later became Videocon Telecommunications, had
made ‘false’ declarations to the Department of Telecommunications (DoT) on its
paid-up capital. Months later, the company gave the corrected version to the
government. CBI is learnt to have questioned the brothers on the anomaly linked
to the paid-up capital amount.
The agency had recently questioned the brass of companies which had
received a telecom licence in 2007-2008. Those already interrogated include
Reliance ADAG chairman Anil Ambani, Essar CEO Prashant Ruia and Unitech MD
Sanjay Chandra.
In its report tabled in Parliament during the winter session, the
Comptroller and Auditor General (CAG) had noted out that Datacom Solutions, in
August 2007, had shown its paid-up capital at Rs.1500.000 millions while
appealing for a telecom licence to the DoT. However, the documents filed along
with this declaration failed to match this claim.
Videocon Telecommunication was among the first in queue to get a
spectrum licence in several circles across
Meanwhile, former telecom minister Arun Shourie, who was scheduled to
meet CBI officials today, could not come due to a personal emergency. Shourie,
who was telecom minister in the NDA regime, was called for consultation on the
spectrum policies followed since 2001.
The agency along with the Enforcement Directorate is likely to question
A Kalia Perumal, brother of jailed ex-telecom minister A Raja. The CBI has also
summoned Raja’s close aide, Sadiq Batcha to appear for questioning on
Wednesday.
Datacom Solutions, which later became Videocon Telecommunications, had
made ‘false’ declarations to the Department of Telecommunications (DoT) on its
paid-up capital. Months later, the company gave the corrected version to the
government. CBI is learnt to have questioned the brothers on the anomaly linked
to the paid-up capital amount.
The agency had recently questioned the brass of companies which had
received a telecom licence in 2007-2008. Those already interrogated include
Reliance ADAG chairman Anil Ambani, Essar CEO Prashant Ruia and Unitech MD
Sanjay Chandra.
In its report tabled in Parliament during the winter session, the
Comptroller and Auditor General (CAG) had noted out that Datacom Solutions, in
August 2007, had shown its paid-up capital at Rs.1500.000 millions while
appealing for a telecom licence to the DoT. However, the documents filed along
with this declaration failed to match this claim.
Videocon Telecommunication was among the first in queue to get a
spectrum licence in several circles across
Meanwhile, former telecom minister Arun Shourie, who was scheduled to
meet CBI officials today, could not come due to a personal emergency. Shourie,
who was telecom minister in the NDA regime, was called for consultation on the
spectrum policies followed since 2001.
The agency along with the Enforcement Directorate is likely to question
A Kalia Perumal, brother of jailed ex-telecom minister A Raja. The CBI has also
summoned Raja’s close aide, Sadiq Batcha to appear for questioning on
Wednesday.
I-T report on 2G scam nails DB Realty, Swan Telecom, ADAG link
The Income Tax department's status report on the role played by Swan
Telecom and Videocon in the 2G scam has called into question transactions by
two Reliance companies and Shahid Balwa's DB Realty just days before the
licence was disbursed. The 1,500-page document will be filed with the Supreme
Court on Monday by the I-T department's Mumbai division.
According to the report, on the day Swan Telecom acquired the 2G spectrum
license, Rs.9200.000 millions were transferred from Reliance Communications to
the account of Swan Telecom through a Mauritius-based company, Tiger Trading
Private Limited This money was from the sale of preferential shares of the
company at a premium of Rs 999 each. Swan Telecom later transferred this money
to Reliance Telecom.
Though these transactions were shown as payments made towards buying passive
assets, I-T sources say it was a ploy to circulate money from one Anil
Dhirubhai Ambani Group ( ADAG )) company to Swan, and then back to another
company owned by the group.
"The eligibility of 2G license demanded that the company must have assets
worth Rs.10000.000 millions and liquidity of at least Rs.1000.000 millions. The
transactions were done to ensure that Swan met the criteria on the day it
acquired the license," the I-T official, who asked not to be named, told
Mumbai Mirror. "After that, the agreements were cancelled and the money
returned to Reliance. Though the companies haven't faulted on their I-T
returns, the transfer of funds is doubtful and must be investigated by the
Department of Telecom (DoT)," he added.
Also indicting DB Realty, the report raised doubts over its share trading when
it took the 2G license through Swan. It said that DB sold one share of the
company for Rs.0.600 million and another for a whopping Rs.1060.000 millions,
in order to create liquidity. "There are very obvious discrepancies in
this transaction and must be investigated," the official said.
As far as Videocon is concerned , while the report found the company's dealings
to be clean in most part, it raised a red flag over how the company's shares
traded at the same price as before on the day it acquired the license. It also
expressed suspicion on Videocon's sudden acquisition of the thendefunct HFCL, a
telecom equipment manufacturer. "This is surprising and the DoT should
investigate this matter," the report noted.
High-profile corporates, including Shahid Balwa, and politicians, such as A
Raja, have been put in jail in connection with the 2G scam. Reliance has
repeatedly denied any role in the scam but Anil Ambani was questioned in
connection with it. The company has maintained that it exited Swan after the
dual spectrum policy was implemented and the stakes were bought by DB Realty.
Soon after acquiring the license for Rs.15370.000 millions, DB sold 45 per cent
stake to the UAE-based Etisalat for Rs.42000.000 millions.
The allocations were authorised by then telecom minister, Raja, who changed
rules midway through the process and advanced the date of application to favour
Swan Telecom and Unitech. Further, the spectrum was sold at rates set in 2001,
flouting guidelines set by Telecom Regulatory Authority of India (TRAI), which
had asked for the sale to take place at the 2008 market rate.
RADIA'S ROLE TO BE
PROBED IN 2G CASE: CBI
November 22, 2010
20:00 IST
The role of corporate lobbyist Neera Radia would be examined by the
Central Bureau of Investigation on Monday in the 2G spectrum allocation case in
which the irregularities were of 'enormous magnitude', with international
ramifications, the agency on Monday told the Supreme Court.
The CBI, which filed a fresh affidavit, said the telephonic conversation
between Radia and others were being examined and she would be called for
questioning at an appropriate time.
"It should be pointed out that the recordings, which are the main
basis of investigation regarding her role, are still being examined. It is only
when the materials based on these calls are cross-checked, verified and
relevant evidence on matters disclosed by these calls are obtained through
investigation, entirety of the material would be put to Radia at an appropriate
time," the agency said in its seven-page affidavit.
While admitting that the case in which the FIR was registered against
unknown persons in October 2009 is of 'enormous magnitude', the CBI said that
the investigation was "not merely confined to
It also gave the list of companies whose premises were raided and
searched during the investigations in different parts of the country.
The companies named in the affidavit are -- Unitech Wireless Private
Limited having its branches in different telecom circles, S.Tel Limited, Shyam
Telelinks Limited, Swan Telecom Private Limited, Datacom Solution Private
Limited, Loop Telecom Private Limited, Tata Teleservices Limited, Allianz
Infratech Private Limited, Spice Communication Limited and Idea Cellular
Limited
"More than 20 searches have been carried out so far. The searches
carried out as well as the seizures made by the CBI have resulted into the
retrieval of as many as 866 documents/ files running into about 82,665
pages," the affidavit said.
"The exercise is a prolonged and painstaking one and is still
continuing as recordings of 5,851 calls, many of them being 30-40 minutes-long,
have to be listened to and analysed," it said, adding about 3,500 calls
have been analysed so far.
"It is submitted that investigation of the cases of this mammoth
dimension require considerable time to conclude," the CBI affidavit said.
2G ALLOCATION:
DHOOT, NAHATA WERE PRESENT IN
NEW DELHI: Four Department of Telecom officials, who oversaw the crucial
formalities of 2G allocation on January 10, 2008, have told CBI that Rajya Sabha
MP Rajkumar Dhoot of Videocon
group was present in the reception area of DoT building where
applicants were completing various formalities and complying with Letters of
Intent.
They have also told CBI that HFCL's
Mahendra Nahata created "disturbance and chaos" and had to
be escorted out by security personnel on the crucial day of the controversial
allocation of licence and spectrum of 2G.
Videocon and HFCL together own Datacom Solutions, which won 2G spectrum and
licence in several circles. The CBI has already questioned both R K Dhoot and
his elder brother Venugopal
Dhoot as well as Nahata. Datacom was originally owned by HFCL but
was later named Videocon Telecommunications, after the Dhoots picked up stake
in it.
When contacted, Nahata told TOI, "I was there and was shocked at getting a
rejection letter so I wanted to submit a protest letter right then, but was
told that at that time, only LOIs were being dealt with so I was escorted out
by security." Rajkumar Dhoot was not available for his reaction.
The CBI has made four DoT officials -- Kirthy Kumar, S K Saxena, S E Rizwi and
S C Sharma -- witnesses in the 2G spectrum scam case. These eyewitnesses have
given the agency a detailed description of what happened on January 10, 2008,
when DoT opened counters for receipt of documents, bank guarantees, demand
drafts and compliances of Letters of Intent for UAS licences for 2G.
The CBI has told the 2G trial court that "physical fitness" of the
applicants became the deciding factor in the grant of licences on that crucial
day. The priority list under first-come first-served basis was to be decided on
when they applied, but then telecom minister A Raja changed it to who completed
the formalities on January 10, 2008, such as submission of demand draft. Added
to it, the counters were open for just a few hours, creating chaos in the DoT
office.
DoT officials told CBI that Dhoot managed to gain entry inside the hall where
counters were set up for receipt of documents. He entered the area on the basis
of his Rajya Sabha I-card and claimed he had come to ensure everything was
being done transparently as he was also a member of the parliamentary standing
committee on communications and IT, the officials told CBI.
Kumar, who was then deputy director general in charge of overall security,
said, "No other person (apart from DoT officials and those representatives
of telecom companies with documents) was allowed to remain in the reception
area." Confirming Dhoot's presence, Kumar said, "Being an MP, I
couldn't evict him from the reception. However, one Nahata of HFCL entered the
reception area without any LOI or any document and was trying to hinder smooth
functioning of the process of receipt of the said documents and was also
indulging in a scuffle with other representatives standing in the queue having
valid documents."
S C Sharma, an upper division clerk of DoT, said in his statement, "Dhoot
didn't obstruct or block the entry gate of reception. He also didn't instruct
any of us to show any favour to any of the companies. He left the room immediately
when the process of deposit of LOI started."
He added, "The Hon'ble MP was going out and coming in the reception
room/counter and while he was trying to manage the entry of some
representatives in the reception room, other representatives had exchange of
hot talks (sic) with him."
Another eyewitness Sudhir Saxena, then a director in the telecom ministry, told
CBI that around 3.30 pm that day, all unauthorized persons were asked to vacate
the reception area and only those with LOI's were permitted to remain.
2G SPECTRUM SCAM
Response to scam
In early November 2010 Telecom Minister A Raja
resigned.
In mid November the comptroller Vinod Rai issued
show-cause notices to Unitech, S Tel, Loop Mobile, Datacom (Videocon), and
Etisalat to respond to his assertion that all of the 85 licenses granted to
these companies did not have the up-front capital required at the time of the
application and were in other ways illegal. Some media sources have speculated
that these companies will receive large fines but not have their licenses
revoked, as they are currently providing some consumer service.
In response to the various allegations, the
Government of India has replaced the then incumbent Telecom minister, A. Raja
with Kapil Sibal
who has taken up this charge in addition to being the Union minister for Human
Resources Development. Mr Sibal contends that the "notional" losses
quoted are a result of erroneous calculations and insists that the actual
losses are nil.
The CBI conducted raids on Raja and four other
telecom officials - former telecom secretary Siddharth Behura, Raja's personal
secretary R K Chandolia, member telecom K Sridhar and DoT deputy director
general A K Srivastava on 8 December 2010.
Arrests and Chargesheets
On February 2, 2011, the CBI arrested former Telecommunications Union Minister A. Raja. The CBI also arrested R.K. Chandolia, Raja's personal aide, and Siddharth Behura, the former Telecom Secretary. Both A. Raja and R.K Chandolia are heard in conversation with Niira Radia in the released Radia tapes.
On February 8, 2011, the CBI arrested Mumbai based
Dynamix Balwas (DB) group managing director Shahid Usman
Balwa in connection with the 2G spectrum allocation scam. The CBI
has evidence from the Income Tax department that Shahid Usman Balwa, considered
close to A. Raja, was instrumental in channelling the kickbacks allegedly
received by the former telecom minister.
On March 29, 2011, in Delhi, the CBI arrested Asif Balwa (younger
brother of the arrested former Managing Director of DB-Etisalat Group, Shahid
Balwa) and Rajeev Agarwal for their alleged involvement in money transfer to
the Dravida Munnetra Kazhagam's (DMK) Kalaignar TV
channel.
On April 2, 2011, the CBI filed its first 80,000
page chargesheet
in the 2G spectrum scam before a
1) A. Raja, arrested former Telecom minister 2) Siddharth Behura, arrested
former Telecom Secretary 3) R.K. Chandolia, A. Raja's arrested former personal
secretary 4) Shahid Usman Balwa, arrested former Director of
Swan Telecom (now Etisalat DB) 5) Sanjay
Chandra, Managing Director of Unitech Limited and Unitech Wireless 6) Gautam Doshi, Group MD,
Reliance Anil Dhirubhai Ambani Group 7) Hari Nair, Senior
Vice-President, Reliance Anil Dhirubhai Ambani Group 8) Surendra Pipara, Senior
Vice-President, Reliance Anil Dhirubhai Ambani Group and Reliance Telecom
Limited 9) Vinod Goenka, Director, Swan Telecom and Managing Director of DB
Realty
The three companies named are: 1) Swan Telecom
2) Unitech Wireless 3) Reliance Telecom
In the first chargesheet, the CBI had named
lobbyist Niira Radia and 124 others as witnesses.
On 25 April 2011, in its second chargesheet in the
scam, the Central Bureau of Investigation
(CBI) named five more accused individuals:
1) Kanimozhi - Rajya Sabha Member of Parliament (DMK) and daughter of Tamil
Nadu Chief Minister M Karunanidhi 2) Sharad Kumar of Kalaignar TV
3) Karim Morani of Cineyug Films 4) Asif
Balwa of Kusegaon Realty 5) Rajiv B Agarwal of
Kusegaon Realty.
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.44.79 |
|
|
1 |
Rs.73.19 |
|
Euro |
1 |
Rs.63.59 |
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.