1. Summary Information
|
|
|
Country |
|
|
Company Name |
TATA
COMMUNICATIONS LIMITED |
Principal Name 1 |
Mr. Subodh Bhargava |
|
Status |
Excellent |
Principal Name 2 |
Mr. Vinod Kumar |
|
|
|
Registration # |
039266 |
|
Street Address |
V S B, |
||
|
Established Date |
19.03.1986 |
SIC Code |
-- |
|
Telephone# |
-- |
Business Style 1 |
Service Provider |
|
Fax # |
-- |
Business Style 2 |
-- |
|
Homepage |
Product Name 1 |
Telecommunication
Services |
|
|
# of employees |
6457 (As on
31.03.2010)) |
Product Name 2 |
-- |
|
Paid up capital |
Rs.
2,850,000,000/- |
Product Name 3 |
-- |
|
Shareholders |
Promoter and Promoter Group – 81.88% Public Shareholding –
18.12% |
Banking |
Bank of |
|
Public Limited Corp. |
YES |
Business Period |
25 Years |
|
IPO |
YES |
International Ins. |
- |
|
Public |
YES |
Rating |
Aa
(76) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Subsidiaries |
|
Tata Communications Internet Services Limited |
--- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
46,901,300,000 |
Current Liabilities |
19,888,300,000 |
|
Inventories |
12,500,000 |
Long-term Liabilities |
26,389,100,000 |
|
Fixed Assets |
45,048,000,000 |
Other Liabilities |
1,751,100,000 |
|
Deferred Assets |
0 |
Total Liabilities |
48,028,500,000 |
|
Invest& other Assets |
28,874,500,000 |
Retained Earnings |
69,957,800,000 |
|
|
|
Net Worth |
72,807,800,000 |
|
Total Assets |
120,836,300,000 |
Total Liab. & Equity |
120,836,300,000 |
|
Total Assets (Previous Year) |
121,552,700,000 |
|
|
|
P/L Statement as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Sales |
32,180,400,000 |
Net Profit |
4,831,800,000 |
|
Sales(Previous yr) |
37,494,300,000 |
Net Profit(Prev.yr) |
5,159,500,000 |
MIRA
INFORM REPORT
|
Report Date : |
28.05.2011 |
IDENTIFICATION DETAILS
|
Name : |
TATA COMMUNICATIONS LIMITED |
|
|
|
|
Registered
Office : |
V S B, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2010 |
|
|
|
|
Date of
Incorporation : |
19.03.1986 |
|
|
|
|
Com. Reg. No.: |
039266 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 2850.000 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L64200MH1986PLC039266 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMV07840A |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACV2808C |
|
|
|
|
Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on
the Stock Exchange. |
|
|
|
|
Line of Business
: |
Providing Telecommunication Services. |
|
|
|
|
No. of Employees
: |
6457 (As on 31.03.2010) |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (76) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 291231000 |
|
|
|
|
Status : |
Excellent |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a part of Tata group premiere industrial house in It is a well established and reputed company having fine track.
Financial position of the company appears to be sound. Trade relations are reported
as fair. Business is active. Payments are reported to be regular and as per
commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. The company can be considered as promising business partners in medium
to long run. |
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 – June 30, 2010
|
Country Name |
Previous Rating (01.04.2010) |
Current Rating (30.06.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office : |
V S B, |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
C21 & C36, “G” Block, Bandra Kurla Complex, Mumbai – 400098, |
DIRECTORS
|
Name : |
Mr. Subodh Bhargava |
|
Designation : |
Chairman (Independent) |
|
|
|
|
Name : |
Mr. Vinod Kumar |
|
Designation : |
Panatone Nominee |
|
|
|
|
Name : |
N. Srinath |
|
Designation : |
Managing Director and Chief Executive Officer |
|
|
|
|
Name : |
Mr. Kishor A. Chaukar |
|
Designation : |
Panatone Nominee |
|
|
|
|
Name : |
Mr. P.V. Kalyanasundaram |
|
Designation : |
Director (Independent) |
|
|
|
|
Name : |
Dr. V.R.S. Sampath |
|
Designation : |
Director (Independent) |
|
|
|
|
Name : |
Mr. Amul Ganguli |
|
Designation : |
Director (Independent) |
|
|
|
|
Name : |
Mr. S. Ramadorai |
|
Designation : |
Director (Panatone Nominee) |
|
|
|
|
Name : |
Mr. A. K. Srivastava |
|
Designation : |
Director (Government Nominee) |
|
|
|
|
Name : |
Mr. Arun Gandhi |
|
Designation : |
Director (Panatone Nominee) |
|
|
|
|
Name : |
Dr. Ashok Jhunjhunwala |
|
Designation : |
Director (Panatone Nominee) |
|
|
|
|
Name : |
Mr. Manish Sinha |
|
Designation : |
Director (Government Nominee) |
KEY EXECUTIVES
|
Name : |
Mr. Satish Ranade |
|
Designation : |
Company Secretary and Chief Legal Officer |
|
|
|
|
Name : |
Mr. Sanjay Baweja |
|
Designation : |
Chief Financial Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of
Promoter and Promoter Group |
|
|
|
|
|
|
|
|
74,446,885 |
28.09 |
|
|
142,581,988 |
53.79 |
|
|
217,028,873 |
81.88 |
|
|
|
|
|
Total shareholding
of Promoter and Promoter Group (A) |
217,028,873 |
81.88 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
2,843,273 |
1.07 |
|
|
2,405,256 |
0.91 |
|
|
29,410,106 |
11.10 |
|
|
3,769,654 |
1.42 |
|
|
38,428,289 |
14.50 |
|
|
|
|
|
|
1,432,931 |
0.54 |
|
|
|
|
|
|
7,562,445 |
2.85 |
|
|
334,866 |
0.13 |
|
|
271,672 |
0.10 |
|
|
1,500 |
- |
|
|
7,250 |
- |
|
|
262,922 |
0.10 |
|
|
9,601,914 |
3.62 |
|
Total Public
shareholding (B) |
48,030,203 |
18.12 |
|
Total (A)+(B) |
265,059,076 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts have been issued |
- |
- |
|
|
- |
- |
|
|
19,940,924 |
- |
|
|
19,940,924 |
- |
|
Total (A)+(B)+(C) |
285,000,000 |
- |
(1) Indian
Central Government / State Government(s)
Individual shareholders holding nominal share
capital up to Rs. 0.100 MillionsBUSINESS DETAILS
|
Line of Business : |
Providing Telecommunication Services. |
GENERAL INFORMATION
|
No. of Employees
: |
6457 (As on 31.03.2010) |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
S.B. Billimoria and Company Chartered Accountant |
|
|
|
|
Subsidiaries : |
Subsidiaries
(Held Directly)
(formerly known as Banking ATM Infra Solutions Limited)
Other Subsidiaries
(Held Indirectly)
Joint Venture
Joint Venture / Associate of wholly owned
subsidiary
|
|
|
|
CAPITAL STRUCTURE
As on
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
300000000 |
Equity Shares |
Rs.10/- each |
Rs. 3000.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
285000000 |
Equity Shares |
Rs.10/- each |
Rs. 2850.000 Millions |
Of the above:
- 60,000,000 (2009: 60,000,000) shares have been fully paid up, pursuant to a contract without payment being received in cash
- 2) 210,000,000 (2009: 210,000,000) shares have been allotted as fully paid bonus shares by capitalisation of General Reserve
- 3)
15,000,000 (2009: 15,000,000) shares are allotted as fully paid up by way
of Euro issue,represented by 7,500,000 American Depository Receipts (ADRs)
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
2850.000 |
2850.000 |
2850.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
69957.800 |
65130.500 |
62623.400 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
72807.800 |
67980.500 |
65473.400 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
12817.600 |
12888.200 |
0.000 |
|
|
2] Unsecured Loans |
13571.500 |
10390.500 |
7778.000 |
|
|
TOTAL BORROWING |
26389.100 |
23278.700 |
7778.000 |
|
|
DEFERRED TAX LIABILITIES |
1751.100 |
1332.500 |
841.300 |
|
|
|
|
|
|
|
|
TOTAL |
100948.000 |
92591.700 |
74092.700 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
45048.000 |
40979.400 |
29889.000 |
|
|
Capital work-in-progress |
3861.500 |
5363.800 |
5437.700 |
|
|
|
|
|
|
|
|
INVESTMENT |
25013.000 |
27236.700 |
21037.700 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
12.500
|
15.600 |
54.500 |
|
|
Sundry Debtors |
6322.900
|
13432.200 |
10631.300 |
|
|
Cash & Bank Balances |
1108.600
|
3723.700 |
796.300 |
|
|
Other Current Assets |
1966.100
|
2527.100 |
4512.800 |
|
|
Loans & Advances |
37503.700
|
28274.200 |
24282.300 |
|
Total
Current Assets |
46913.800
|
47972.800 |
40277.200 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
11572.800
|
18114.100 |
12043.800 |
|
|
Other Current Liabilities |
6568.800
|
7960.800 |
7905.300 |
|
|
Provisions |
1746.700
|
2886.100 |
2599.800 |
|
Total
Current Liabilities |
19888.300
|
28961.000 |
22548.900 |
|
|
Net Current Assets |
27025.500
|
19011.800 |
17728.300 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
100948.000 |
92591.700 |
74092.700 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
32180.400 |
37494.300 |
32833.000 |
|
|
|
Other Income |
1654.200 |
2318.000 |
1820.300 |
|
|
|
TOTAL (A) |
33834.600 |
39812.300 |
34653.300 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Salaries and Related Costs |
4184.400 |
3555.300 |
2424.300 |
|
|
|
Network Costs |
14150.400 |
17613.700 |
18526.700 |
|
|
|
Operating and Other Expenses |
6381.200 |
7860.200 |
5681.400 |
|
|
|
TOTAL (B) |
24716.000 |
29029.200 |
26632.400 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
9118.600 |
10783.100 |
8020.900 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
2460.800 |
1906.000 |
396.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
6657.800 |
8877.100 |
7624.900 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
5747.300 |
4252.700 |
3013.100 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE TAXES
AND EXCEPTIONAL ITEMS (E-F) (G) |
910.500 |
4624.400 |
4611.800 |
|
|
|
|
|
|
|
|
|
Less |
CLAIM SETTLEMENT |
0.000 |
956.000 |
0.000 |
|
|
|
|
|
|
|
|
|
Less |
PROFIT ON |
0.000 |
(3466.500) |
0.000 |
|
|
|
|
|
|
|
|
|
Less |
INTEREST ON
INCOME TAX REFUND |
(2182.800) |
0.000 |
11.20 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
3093.300 |
7134.900 |
4499.800 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
(1738.500) |
1975.400 |
1455.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
4831.800 |
5159.500 |
3044.600 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
20993.800 |
18923.000 |
17429.100 |
|
|
|
|
|
|
|
|
|
Add |
ADJUSTMENT FOR LOSSES
FOR RETAIL BUSINESS HIVE OFF |
0.000 |
0.000 |
375.000 |
|
|
|
|
|
|
|
|
|
Less |
TAX ADJUSTMENTON
RETAIL BUSINESS HIVE OFF |
0.000 |
0.000 |
92.500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add |
ADJUSTMENT FOR PROFIT
FOR MERGER OF VSNL BROADBAND LIMITED (VBL) |
0.000 |
27.200 |
0.000 |
|
|
|
|
|
|
|
|
|
Less |
DEFERRED TAX
ADJUSTMENT ON MERGER OF VBL |
0.000 |
74.400 |
0.000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
483.200 |
516.000 |
332.700 |
|
|
|
Debenture Redemption Reserve |
3548.400 |
1025.000 |
0.000 |
|
|
|
Dividend |
0.000 |
1282.500 |
1282.500 |
|
|
|
Tax on Dividend |
0.000 |
218.000 |
218.000 |
|
|
BALANCE CARRIED TO
THE B/S |
21794.000 |
20993.800 |
18923.000 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Revenue from telecommunication services |
7743.100 |
8653.200 |
10017.100 |
|
|
|
Interest Income |
366.700 |
415.800 |
145.800 |
|
|
|
Dividend Income |
41.000 |
39.600 |
0.000 |
|
|
|
Other Income |
164.400 |
223.400 |
189.800 |
|
|
TOTAL EARNINGS |
8315.200 |
9332.000 |
10352.700 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Stores, Spares and Others |
123.000 |
114.200 |
11.400 |
|
|
|
Capital Goods |
2510.900 |
4583.900 |
3127.700 |
|
|
TOTAL IMPORTS |
2633.900 |
4698.100 |
3139.100 |
|
|
|
|
|
|
|
|
|
|
Earnings Per Share
(Rs.) |
16.95 |
18.10 |
10.68 |
|
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
30.06.2010 (1ST
Quarter) |
30.09.2010 (2nd
Quarter) |
31.12.2010 (3rd
Quarter) |
|
Net Sales |
8440.100 |
8237.900 |
8776.000 |
|
Total Expenditure |
6250.600 |
6178.500 |
6797.400 |
|
PBIDT (Excl Ol) |
2189.500 |
2059.400 |
1978.600 |
|
Other Income |
271.900 |
202.700 |
654.400 |
|
Operating Profit |
2461.400 |
2262.100 |
2633.000 |
|
Interest |
434.600 |
465.600 |
469.200 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
2026.800 |
1796.500 |
2163.800 |
|
Depreciation |
1433.200 |
1477.000 |
1507.900 |
|
Profit Before Tax |
593.600 |
319.500 |
655.900 |
|
Tax |
197.300 |
77.100 |
198.500 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
396.300 |
242.400 |
457.400 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
396.300 |
242.400 |
457.400 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
14.28
|
12.96 |
8.78 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
9.61
|
19.03 |
12.98 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.36
|
8.02 |
6.41 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.04
|
0.10 |
0.07 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.63
|
0.77 |
0.46 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.36
|
1.66 |
1.79 |
LOCAL AGENCY FURTHER INFORMATION
PERFORMANCE
The year saw continued sluggishness in markets in which the Company operates. Most corporates, who are the major customers of the company, have remained cautious and focussed on reducing costs and becoming more efficient thereby limiting the growth in their addressable market. Despite this, the Company continued to expand and grow, and has increased its consolidated revenues to Rs.111.94 billion (previous year Rs. 102.07 billion) and EBIDTA was at Rs. 10.12 billion (previous year Rs. 13.66 billion). However, consolidated profit/(loss) after exceptional items and before tax was Rs. (6.81) billion (previous year Rs. 4.23 billion), whereas profit/(loss) after tax was Rs. (5.98) billion (previous year Rs. 3.16 billion).
On standalone basis, during the year, the Company earned total revenue of Rs. 33.83 billion (previous year Rs. 39.81 billion). Profit before tax for the year was Rs. 3.09 billion, (previous year Rs.7.13 billion). Profit after tax was Rs. 4.83 billion (previous year Rs. 5.16 billion).
The Company’s profitability has been affected adversely by
the global economic conditions, nascent stage of some of its investments and
due to increases in some specific items of cost. The consolidated net loss
includes Rs. 4.64 billion in respect of the Company’s holding in
Over View:
Over the last few years, the Company has consistently
pursued its strategy of providing a range of communication services to enhance
the reach and leadership of its customers in the wholesale, enterprise and
retail segments across different geographies. It is leveraging its integrated
wholesale capability, strong market position in
The Company’s focused strategy has enabled it to be one of
the leading players worldwide in its major business segments, with operations
in more than 50 countries. Tata Communications remains the largest provider of
international wholesale voice services globally and one of the largest owners
and providers of submarine cable capacity in the world. The Company is a global
Tier-1 Internet Services Provider (ISP) and is a major player in the growing
global IP Transit market. The Company also offers telecommunication services
through its subsidiary in
In the coming years, the Company will continue to focus on redefining telecom services for “wholesale” commodity and low-value operations to a partnership-driven, value-enhancing business; on expanding networks in India to reach the customers’ premises; on rapidly growing its global enterprise segment with catalyst services including Telepresence, media and entertainment solutions, Ethernet and cloud computing; and on achieving global benchmarks in customer services and operations.
During the year, the enterprise customers’ demand for
greater global connectivity and services continued to grow, worldwide broadband
penetration increased and demand for rich media and interactive digital content
continued to increase globally. This gave the Company the opportunity to
leverage its Tata Global Network (TGN) of optical fibre undersea cables and
Internet Protocol (IP) networks to its advantage.
Over the last four years, Tata Communications invested over
US$2 billion in building infrastructure and new service capabilities as well as
in entering new markets. In 2009-10, the Company invested nearly
US$509 million towards capital expenditure and other investments. The Company
has commissioned additional submarine cable systems and is expanding capacity
in the current year, connecting emerging markets in Asia, the Middle East and
Africa to each other and onwards to Europe and
Tata Communications has set up extensive operating framework
for servicing the specific needs of customers across various market segments
and geographies. The Company continues to focus on building long lasting
relationships with its customers and business associates and to lead the
industry in responsiveness and flexibility. The service fulfilment, service
assurance and billing functions are integrated into a single team called
Customer Services and Operations. This provides the right focus and synergies across
all “customer touch points” in all stages of the service life cycle and has led
to significantly enhanced customer satisfaction across
our business segments and geographies.
The Department of Telecommunications (DoT), through a
license amendment dated 3 December 2009, made it mandatory for all telecom
service providers to obtain security clearances before placing purchase orders
for procuring telecom equipment from manufacturers who are not Indian owned/
controlled. Further notifications issued by the DoT lay down more conditions
relating to the transfer of technology requirements to be imposed on foreign
vendors, self certification regarding equipment being free from malware, etc.
Service providers and vendors are generally finding it difficult to comply with
these conditions. The Company is facing delays in fulfillment of its customer
orders and in expanding its network infrastructure in
The Company continues to work with the Government of India
to resolve this issue.
AWARDS AND
RECOGNITION
The Company’s transformational initiatives are being
recognised in
- Best Global Wholesale Offering Award from Capacity magazine, one of the most important publications for telecommunications carriers and service providers.
- Global Telecoms Business Innovation Award for International Wholesale Infrastructure Transformation and International Network Infrastructure Transformation.
- During the year, your Company’s MD & CEO, Mr. N Srinath, was named as the world’s eighth most influential telecom personality for the second consecutive year by the Global Telecoms Business magazine.
- European CEO announced Tata Communications as Telepresence Managed Service Provider of the Year 2009.
- Frost & Sullivan named the Company #1 Enterprise Data Services Provider in India 2009.
- In March 2010, Tata Communications entered the Gartner’s Magic Quadrant for Global Network Service Providers.
- Frost & Sullivan’s 2009 Product Innovation award for Managed Telepresence Service.
- “Best service coverage” in the 2009 Optical
Transmission Vision (OTV) APAC Network Operator Awards.
MANAGEMENT DISCUSSION
AND ANALYSIS
INDUSTRY ANALYSIS
Indian Telecom Market
Over the last decade the Indian telecom industry has changed significantly, with all major segments being opened to competition. There are several new entrants in areas that the Company operates in, resulting in increasing competition. There are now 281 circles-based access licenses across 23 service areas, 30 licensed national long distance (NLD) operators and 25 licensed international long distance (ILD) operators, several of whom are large international companies who now have a direct presence in the country.
The auction of spectrum for 3G and Broadband Wireless Access (BWA) services was conducted during April and June 2010. The revenue estimates did not enable the Company to acquire spectrum in any of the circles in the BWA auction. The winning bids, in our opinion, were in excess of what current broadband business cases could support, and seemed to reflect the effects of a perceived scarcity of spectrum combined with the limited number of slots being auctioned.
In summary, the telecom landscape continues to evolve and operators such as the Company will have to constantly transform themselves to remain competitive.
Global Telecom Market
The global telecom industry has undergone changes in the segments of Tata Communications’ interests. The international wholesale voice market continues to be a business of scale, with constant pressures on prices and margins. The recent global economic downturn has further increased this pressure on prices and slowed the growth of traffic volumes on a year-on-year basis. Alternate services such as portal based offerings on the Web are growing in popularity and usage. The share of mobile communications continues to grow in relation to fixed voice and there is an increasing use of Voice over Internet Protocol (VoIP).The need for profitability in a largely commoditized market is making operators seek both scale and cost efficiency in their operations. Apart from driving consolidation, this could also create new business models based on greater collaboration between operators which, we believe, the Company is well positioned to benefit from.
The data market is also undergoing rapid changes. With the
growing need for bandwidth around the world, the demand for submarine cable
capacity continues to grow. Several new cable systems have been announced or
are being constructed in different markets, such as across the Pacific, within
Asia, connecting Europe and Asia, and on both the east and west coasts of
The growth of the Internet on the back of growing global broadband usage, increasing demand for multimedia services, the success of new collaboration and communications applications and the continued increase in the use of the web by both individuals and corporations, is driving the demand for IP bandwidth. Growth is seen in the demand for IP Transit services in all the major geographies but prices continue to fall, thereby increasing pressures on margins. New services such as Content Distribution Networks are fast emerging as growth opportunities, leveraging the increasing demand for video traffic on the web. Your Company is actively offering these services for both volume and margin growth.
The global enterprise market has seen growing demand for network services, data centre services and value added services. The global recession caused delays in decision-making and deferred procurement by some customer segments, but broadly, Information and Communications Technology investments by enterprises is showing a steady and solid recovery. This investment is motivated by the need for better engagement and service levels with their own customers, the need for higher velocity and flexibility in business, and the growth of global supply chains and markets. Industry leaders are more sharply focused on increasing the ratio of IT budgets that are applied towards competitive advantage and innovation versus basic services and compliance. The recession limited their budget growth, and thus has sharpened their focus towards finding the best value solutions that will enable their IT to deliver a competitive edge. The exploration of new approaches like Ethernet wide area networking, cloud computing services and Telepresence virtual meetings is arguably now higher on many CIO agendas than it would otherwise have been.
Mobile Market
The mobile industry has shown some resilience to the
economical downturn. There is some concern on revenue growth as operators face
the prospect of fewer new subscribers and a flat to declining average revenue
per user (ARPU). This effect is most pronounced in the established markets of
Europe and North America, while developing markets such as the Middle East,
Asia and
Mobile operators are increasingly focused on cost cutting measures, which present an opportunity for providers of Value Added Services such as Steering of Roaming and Roaming Hubbing and associated services. The sharper focus on costs and price pressure on supplier contracts creates an opportunity for the Company to displace competitors.
With the increasing penetration of smart devices and the rolling-out of broadband HSPA/3G+ networks, mobile data is rapidly increasing its share of overall customer usage and revenue. As operators expand their broadband networks and subsequently their requirements for core Internet connectivity, it creates new opportunities for providers of wholesale IP transit and data services. The Company is leveraging its strength in Data Services by extending this offering to Mobile Operators, notably early adoption of IPX, a framework that allows the integration of multiple services and applications over a single data connection.
Carrier Outsourcing
& Transformation Services
The new challenges in the global economy are compelling carriers to find quicker and more costeffective ways to service their customers. While carriers in developed markets are seeking to reduce costs and focus on core activities, carriers in emerging markets are attempting to overcome skills shortages and expedite time to market for new services or geographies. This is generating significant demand for various types of network skills as well as for process improvement and deployment capability which are emerging as good growth opportunities for the Company’s transformation services offering.
Impact of Global
Economic Scenario
The economic slowdown triggered by events in the
OPERATIONAL REVIEW
The Company operates under three main business segments globally – Global Voice, Global Enterprise and Carrier Data and Other Services.
Global Voice
International Long Distance (ILD)
Tata Communications remains the leading provider of international wholesale voice communication services globally. The Company has over 1,600 direct and bilateral relationships with leading international voice telecommunication providers.
During 2009-10, Tata Communications handled 32.6 billion
minutes of international voice traffic globally, a growth of 33% over the
previous year. Traffic to and from
The Company is a “one-stop-shop” for all global voice solutions, offering flexible service options and a full range of complementary services for VoIP, Voice over broadband, web portal and client-based providers. Tata Communications is constantly upgrading and expanding its offerings in this segment. In September 2009, the Company launched new and innovative services like enhanced voice peering and support for high quality Mobile Video Telephony.
As per current regulations, the Company does not have direct access to the end customer and is dependent on traffic from other access operators for its long distance voice services. Several of the operators who hand over their long distance voice traffic to Tata Communications have since taken licenses and started operations for themselves, thereby shrinking the Company’s addressable market and hence affecting this business adversely. Nevertheless, the Company continues to strive to be competitive, leveraging its scale of operations and operational expertise. In August 2009, the licensor amended the terms of the International Long Distance (ILD) License to permit ILD service providers to access subscribers directly through calling cards. However, the current policy framework does not regulate interconnection charges between operators for the purpose of calling cards. The Company will need to negotiate these terms with each access provider concerned before it can launch a calling card service for international calling.
During the year, there were further reductions in tariff and interconnect rates globally, combined with a slower year-on-year market growth, increasing the downward pressure on revenues. This pressure was only partially compensated, since the increase in traffic volumes was also slower. Globally, the Company continues to focus on increasing volumes, while cutting costs in order to improve margins.
The Company has also moved to capitalize on the growing trend of outsourcing by telecom operators to manage their international voice services. The Company offers innovative and flexible solutions like infrastructure sharing, customised distribution models, traffic management, destination management and traffic aggregation to answer various challenges faced by telecom operators. The Company hopes to see a significant growth in this space in coming years.
National Long Distance (NLD)
Increased mobile penetration has resulted in significant
growth in the NLD traffic within
The Company has a strong network infrastructure and
interconnect agreements with all basic and cellular mobile service operators in
While increased competition in the long distance space affects the Company’s business, it also opens up opportunities to share the Company’s network infrastructure with new licensees. The sharing of active infrastructure by NLDOs is now permitted and a consultation process for the introduction of Internet Telephony in the NLD sector has been initiated. The Company hopes that this may provide new avenues for the Company in the NLD business area.
Global
Carrier Data
Tata Communications is one of the world’s leading wholesale providers of data, IP and mobile signaling services. The Company leverages its global submarine cable network and global Points of Presence (POPs) to provide high-speed bandwidth connectivity to other telecom carriers and Internet Service Providers (ISPs) worldwide.
During the past year, the growing demand for bandwidth has
resulted in substantial capacity upgrades and new builds on the Company’s
global submarine cable system, the Tata Global Network (TGN). The Company
announced the new TGN-Gulf cable connecting several countries in the Gulf to
the TGN and expects the commissioning of the TGNEurasia system connecting
Tata Communications operates one of the world’s leading IP
networks and provides wholesale IP transit services to tier-2 ISPs and regional
carriers. Tata Communications is one of the few Internet service providers that
has a strong position in all the major regions worldwide, including North America,
Europe, Asia, Middle East and
Tata Communications is also a leading provider of mobile signalling services to mobile operators worldwide. Its offerings include signalling conversion and managed roaming services. In addition, the Company is introducing new, innovative services such as hubbing for prepaid services and is working with its partners to develop offerings in the emerging mobile-commerce market.
The Company has put in place a converged wholesale strategy, to combine carrier services with their Global Voice Solutions and Carrier Data Services, to bring increased value to their carrier customers. In January 2010 the Company launched an IP Exchange (IPX) solution enabling mobile service providers to seamlessly and efficiently route all communication traffic, including voice, IP and signalling, via one IP pipe while supporting end-to-end service quality, security, multilateral connectivity and cascading payments.
Tata Communications offers a wide range of customised
telecommunication solutions to its
The Company continues to expand its coverage of Managed
Global MPLS - VPN (Multi Protocol Label Switching - Virtual Private Network)
and Ethernet services by directly entering select new markets as well as
through partnerships with regional / local operators. To further strengthen its
customer value proposition, the Company partners with software and systems
integration companies including Tata Consultancy Services, for integrated joint
product and service offerings. The Company also markets its services through
indirect channels catering to the small and medium enterprise market in
The Indian enterprise segment has been growing at a very healthy rate driven by two factors. Firstly, Indian business are increasingly adopting IT and networking technology to improve productivity and create competitive advantage. Secondly, since Indian business is growing globally and international companies are increasing their Indian presence, there is an associated need for greater connectivity to and within the country. Banking and financial services, information technology and business process outsourcing/call centres are some examples of high growth sectors in the country.
Tata Communications is one of the largest players in the
data centre business in
Tata Communications sees business transformation being led by IP technologies that are enabling converged and cloud-based services as well as a new generation of managed services. In line with its IPenabled business transformation strategy, Tata Communications will complete the deployment of its global voice network core to an IP-based Next Generation Network (NGN) by September 2010. The NGN will provide a dramatically simplified network architecture and enable Tata Communications’ customers to leverage a single global IP network to deliver their range of services. The NGN completion will mark the next step in Tata Communications’ IP evolution and positions the Company as the right partner for convergence in the IP world.
Adoption of new services and service delivery models that
enhance competitiveness is accelerating in areas such as adoption of Ethernet
for wide area networks, in which the Company is a major player both globally
and in
The Company is a global leader in collaboration services like Managed Telepresence for companies and between companies. This service provides “virtual meetings” using simple and life-like telepresence endpoints which provide enhanced collaboration across global companies and markets, reducing travel and raising productivity. Leveraging its global network, Tata Communications is continuing to grow the world’s largest public room telepresence network. Tata Communications currently manages 13 telepresence public rooms and is targeting another 25 by the end of 2010. The Company also provides a standalone global Telepresence Exchange Service that enables telepresence rooms to be interconnected regardless of the network or service provider they belong to.
Tata Communications plans to continue its growth strategy of
partnership, investment and infrastructure development in emerging markets.
Tata Communications and
The Company is continuously developing new products and
services to enhance value to customers. In September 2009, Tata Communications
combined its next generation managed security solutions with superior Internet
leased line products, and launched its Internet Clean Pipe Solution for the
small and medium business segments in
The Company has launched the world’s leading dedicated global video network called Video Connect which is designed to help broadcasters, studios and production houses deliver video content flexibly and cost-effectively to media hotspots worldwide. By leveraging Tata Communications’ global network infrastructure, Video Connect also enables permanent availability of bandwidth and seamless transmission of video at constant bit rates. A dedicated video network operations centre ensures round-the-clock system availability along with analytics to provide reports on video quality.
In January 2010, Tata Communications unveiled its media management platform, Mosaic. This platform, with its cloud-based media management, helps media customers improve cross-enterprise collaboration for content creation, management and multiformat delivery. Mosaic enables enterprises to deliver innovative services that meet rapidly changing consumer demands, maintain and expand audience numbers, provides flexibility of an open operating environment and lower production costs. One of Mosaic’s unique capabilities is that it provides complete digital asset management, ensuring secure, efficient access to content and workflow throughout the value chain, which is delivered as an online service over the web. The new service is targeted at the entire spectrum of media customers encompassing content creators, producers, post-production houses, digital media publishers, content service providers and TV channels.
As part of its Global Media and Entertainment Services (GMES) portfolio, Video Connect and Mosaic will complement Tata Communications’ existing Media and Entertainment services, offering companies an integrated end-to-end solution that enables global collaboration across the media ecosystem. Other services in Tata Communications’ GMES portfolio include Satellite Broadcasting with TV uplinking and Playout Room capabilities. The Company intends to invest in the range of US$50 million over the next two years to strengthen its product offerings addressing the media and entertainment segment requirements.
Other Services
In the retail and small business space, Tata Communications remains a premier Internet Service Provider, offering connectivity, messaging, Internet telephony and a wide variety of content services.
Retail Services
Tata Communications Internet Services Ltd (TCISL), a 100%
subsidiary, was set up to be the vehicle for expansion in retail services like
broadband in
Further growth in this business was linked to the Company being able to successfully acquire spectrum for creating access networks in the recently concluded auctions for Broadband Wireless Access. Unfortunately, the Company was not able to acquire spectrum in any of the circles. The auction closed at prices that were seen to be in excess of what the current Broadband business cases would be able to support and seemed to reflect the effects of a perceived scarcity of spectrum combined with the limited number of slots being auctioned. In the immediate term, the Company will step up its focus on small and medium businesses (SMBs) and will approach the market led by a portfolio of business applications.
The small business segment in
Wi-Fi
Wi-fi services are an important supplement to the Company’s
Internet access services. Wi-Fi enables computers, PDAs and other computing
devices to use highspeed Internet without any wires or cables, at places that
are Wi-Fi enabled, called hotspots. With over 500 hotspots, TCISL is India’s
leading Wi-Fi hotspot provider spread across segments such as airports, hotels,
coffee shops, restaurant chains, hospitals, educational institutes, railway
stations, shopping malls and even stores. TCISL now offers its customers a
Global Internet Roaming service in over 160 countries.
Contingent
Liabilities and Capital Commitments:
|
Particulars |
As on 31.03.2010 (Rs. in Millions) |
As on 31.03.2009 (Rs. in Millions) |
|
Guarantees given on behalf of subsidiaries (Refer note 1) |
55127.600 |
49410.300 |
|
i) Claims for taxes on income (Refer note 2 ) |
0.000 |
0.000 |
|
(a) Income tax disputes where the department is in appeal
against the Company |
3220.000 |
3106.100 |
|
(b) Income tax disputes where the Company has a favorable decision
in other assessment year for the same issue |
223.900 |
223.900 |
|
(c ) Income tax disputes other than the above |
14488.900 |
15217.800 |
|
ii) Claims for other taxes |
1180.800 |
498.000 |
|
iii) Other claims |
4950.800 |
7887.100 |
|
Total |
79192.000 |
76343.200 |
Notes:
(1) Guarantees given on behalf of subsidiaries
· The guarantees have been provided in the ordinary course of business and no liability on the Company is expected to materialize in this respect.
(2) Significant claims by the revenue authorities in respect of income tax matters are in respect of deductions claimed under Section 80-IA of the Income Tax Act, 1961 from Assessment Year 1996-97 onwards have been disallowed by the revenue authorities. The Company has contested the disallowance and has preferred appeals which are pending.
(3) The Company has taken appropriate professional advice in respect of the claims / appeals and has taken all necessary steps to protect its interest. Based on expert opinion, no provision is required in respect of these claims / appeals.
(4) As on 31 March, 2010, the Company has issued Letters of
Comfort for the credit facility agreement in respect of various subsidiaries –
|
Name of Subsidiary |
As on 31.03.2010 (Rs. in Millions) |
As on 31.03.2009 (Rs. in Millions) |
|
Tata Communications (US) Inc (TCU) |
0.000 |
894.800 |
|
Tata Communications Transformation Services Ltd (TCTSL) |
270.100 |
305.000 |
|
Tata Communications International Private Limited (TCIPL) |
450.100 |
508.400 |
|
VSNL SNOSPV Limited |
2025.500 |
0.000 |
|
Tata Communications (Netherland) Limited |
2250.500 |
0.000 |
|
Tata Communications ( |
6751.500 |
0.000 |
|
Tata Communications Banking InfraSolutions Limited (TCBIL) |
520.000 |
0.000 |
|
Total |
12267.700 |
1708.200 |
The Company has undertaken to the lenders of TCU, TCTSL and
TCIPL that it shall retain full management control so long as amounts are due
to the lenders.
5) The Company has issued a support letter to Tata
Communications International Private Limited (TCIPL), for providing financial
support enabling, in turn, TCIPL to issue such support letters to certain
subsidiaries having negative net worth as at 31 March, 2010 aggregating Rs.
15084.100 Millions (2009: Rs 14175.500 Millions) in various geographies in
order that they remain going concerns with reference to the provisions of
applicable insolvency laws in their country of residence.
The Company has also issued a support letter to Tata Communications Internet Services Limited (TCISL) for providing financial support so that it remains going concern with reference to the provisions of applicable insolvency laws in the country.
The letters of comfort / support mentioned in (4) and (5) above have been provided in the ordinary course of business and no liability on the company is expected to materialize in these respects.
6) Contingent liabilities, if any, in respect of sale of shares of Tata Teleservices Limited has been stated in Note B-5, schedule 20.
B. Capital commitments
Estimated amount of contracts remaining to be executed on capital account (including loan commitment to wholly owned subsidiaries), not provided for Rs. 24898.600 Millions (2009: Rs. 23500.800 Millions).
Fixed Assets:
- Land
- Building
- Plant and Machinery
- Furniture and Fixture
- Office Equipment
- Computers
- Motor Vehicles
Web site Details:
Over View:
The global reach and industry expertise of Tata Communications drives and delivers a new world of communications. The company leverages its Tata Global Network, vertical intelligence and leadership in emerging markets to deliver value-driven, globally managed solutions.
About Subject
Subject a leading global provider of a new world of communications. With a leadership position in emerging markets, Subject leverages its advanced solutions capabilities and domain expertise across its global and pan-India network to deliver managed solutions to multi-national enterprises, service providers and Indian consumers.
The Tata Global Network includes one of the most advanced and largest submarine cable networks, a Tier-1 IP network, with connectivity to more than 200 countries across 400 PoPs, and nearly 1 million square feet of data center and colocation space worldwide.
Subject depth and breadth of reach in emerging markets
includes leadership in Indian enterprise data services, leadership in global
international voice, and strategic investments in operators in
Tata Communications Limited is listed on the Bombay Stock Exchange and the National Stock Exchange of India and its ADRs are listed on the New York Stock Exchange. (NYSE: TCL)
Company Profile
Subject along with its global subsidiaries (Tata Communications) is a leading global provider of the new world of communications. The company leverages its Tata Global Network, vertical intelligence and leadership in emerging markets, to deliver value-driven, globally managed solutions to the Fortune 1000 and mid-sized enterprises, service providers and consumers.
The Subject portfolio includes transmission, IP, converged voice, mobility, managed network connectivity, hosted data center, communications solutions and business transformation services to global and Indian enterprises and service providers as well as, broadband and content services to Indian consumers. The Tata Global Network encompasses one of the most advanced and largest submarine cable networks, a Tier-1 IP network, connectivity to more than 200 countries across 400 PoPs and more than one million square feet data center space. Subject serves its customers from its offices in 80 cities in 40 countries worldwide. Tata Communications has a strategic investment in South African operator Neotel, providing the company with a strong anchor to build an African footprint.
The number one global international wholesale voice operator
and number one provider of International Long Distance, Enterprise Data and
Internet Services in
Becoming the leading integrated provider to drive and deliver a new world of communications, Subject became the unified global brand for VSNL, VSNL International, Teleglobe, Tata Indicom Enterprise Business Unit and CIPRIS on February 13, 2008.
Subject is a part of the $67.4 billion Tata Group; it is listed on the Bombay Stock Exchange and the National Stock Exchange of India and its ADRs are listed on the New York Stock Exchange (NYSE: TCL).
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction registered
against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling shareholders,
director, officer or employee of the company is a government official or a
family member or close business associate of a Government official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.21 |
|
|
1 |
Rs.74.30 |
|
Euro |
1 |
Rs.64.40 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
76 |
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.