MIRA
INFORM REPORT
|
Report Date : |
11.01.2012 |
IDENTIFICATION DETAILS
|
Name : |
|
|
|
|
|
Registered Office : |
|
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2011 |
|
|
|
|
Date of Incorporation : |
14.03.1995 |
|
|
|
|
Com. Reg. No.: |
04-30976 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.33032.720 Millions |
|
|
|
|
CIN No.: [Company
Identification No.] |
L32100GJ1996PLC030976 |
|
|
|
|
IEC No.: |
AHMI00670F |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACB2100P |
|
|
|
|
Legal Form : |
Public limited liability company. Company’s shares are listed on the Stock Exchange. |
|
|
|
|
Line of Business : |
Providing
Telecommunication and Cellular System Services. |
|
|
|
|
No. of Employees : |
7282 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (45) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 490000000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a part of Aditya Birla Group. Financial position of the
company appears to be improving. The company has been successful in
wipping-off accumulated losses of the previous years. Trade relations are reported
as fair. Business is active. Payments are reported to be usually correct and
as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
|
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 : |
|
|
Tel. No.: |
91-79-66714000 / 23232250 |
|
Fax No.: |
91-79-23232251 |
|
E-Mail : |
|
|
Website : |
|
|
Area : |
2000 sq. ft |
|
Location : |
Owned |
|
|
|
|
Administrative Office : |
3rd Floor, Century Bhavan, |
|
Tel. No.: |
91-22-24314987 |
|
Fax No.: |
91-22-25467174 |
|
|
|
|
Corporate Office : |
|
|
Tel. No.: |
91-95940-04000 |
|
Fax No.: |
91-95940-03181 |
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. Kumar Mangalam Birla |
|
Designation : |
Chairman |
|
Address : |
Mangal Adityayan 20, |
|
Date of Birth/Age : |
14.06.1967 |
|
|
|
|
Name : |
Mrs. Rajashree Birla |
|
Designation : |
Non Executive Director |
|
Address : |
Mangal Adityayan 20, |
|
Date of Birth/Age : |
15.09.1945 |
|
|
|
|
Name : |
Dr. Rakesh Jain |
|
Designation : |
Non Executive Director |
|
|
|
|
Name : |
Mr. Biswajit Anna Subramanian |
|
Designation : |
Non Executive Director |
|
Address : |
31 |
|
Date of Birth/Age : |
19.09.1965 |
|
|
|
|
|
|
|
Name : |
Mr. Juan Villalonga Navarro |
|
Designation : |
Non Executive Director |
|
|
|
|
Name : |
Mr. Sanjeev Aga |
|
Designation : |
Non Executive Director |
|
Address : |
703, Raheja Grande, |
|
Date of Birth/Age : |
01.02.1952 |
|
|
|
|
Name : |
Mr. Arun Thiagarajan |
|
Designation : |
Independent Director |
|
Address : |
|
|
Date of Birth/Age : |
07.09.1944 |
|
|
|
|
Name : |
Mr. Gian Prakash Gupta |
|
Designation : |
Independent Director |
|
Address : |
101, Kaveri, B Wing, |
|
Date of Birth/Age : |
11.01.1941 |
|
|
|
|
Name : |
Mr. Mohan Gyani |
|
Designation : |
Independent Director |
|
Address : |
|
|
Date of Birth/Age : |
15.06.1951 |
|
|
|
|
Name : |
Ms. Tarjani Vakil |
|
Designation : |
Independent Director |
|
Address : |
A-1, Ishwardas Mansions
Nana Chowk, Mumbai – 400 007, |
|
Date of Birth/Age : |
30.10.1936 |
|
|
|
|
Name : |
Mr. R.C. Bhargava |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. P. Murari |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. Himanshu Kapania |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Dr. Shridhir Sariputta Hansa
Wijayasuriya |
|
Designation : |
Alternate Director to Mr. Juan Villalonga Navarro |
KEY EXECUTIVES
|
Name : |
Mr. Akshaya Moondra |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Mr. Pankaj Kapdeo |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2011
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
233,333 |
0.01 |
|
|
1,520,445,714 |
45.99 |
|
|
1,520,679,047 |
46.00 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
1,520,679,047 |
46.00 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
113,074,262 |
3.42 |
|
|
140,380,153 |
4.25 |
|
|
34,907,753 |
1.06 |
|
|
390,852,803 |
11.82 |
|
|
679,214,971 |
20.54 |
|
|
|
|
|
|
25,465,301 |
0.77 |
|
|
|
|
|
|
67,915,857 |
2.05 |
|
|
6,554,035 |
0.20 |
|
|
1,006,179,991 |
30.43 |
|
|
22,039 |
- |
|
|
2,292,599 |
0.07 |
|
|
141,655 |
- |
|
|
1,000,882,407 |
30.27 |
|
|
2,841,291 |
0.09 |
|
|
1,106,115,184 |
33.46 |
|
Total Public shareholding (B) |
1,785,330,155 |
54.00 |
|
Total (A)+(B) |
3,306,009,202 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
3,306,009,202 |
- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 millionBUSINESS DETAILS
|
Line of Business : |
Providing Telecommunication
and Cellular System Services. |
|
|
|
|
Products : |
· Cellular Mobile Phone Services ·
Handsets |
GENERAL INFORMATION
|
No. of Employees : |
7282 (Approximately) |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
·
Dena Bank, Dccan Gymkhana Branch, Pune, ·
Deutsche Bank, Mumbai - 400001, ·
Standard Chartered Bank,90, · Standard Chartered Grindlyas Bank ·
HDFC
Bank 26-A, Narayan Properties, Chandivali Farm Road, Saki Naka,
Andheri (E), Mumbai- 400 072, ·
·
IDBI
Limited IDBI House, Dnyaneshwar Paduka Chowk, |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
Address : |
706, B Wing, |
|
Tel. No.: |
91-20-66244600 |
|
Fax No.: |
91-20-66244605 |
|
E-Mail : |
|
|
|
|
|
Promoters : |
·
Hindalco Industries Limited (Hindalco) ·
Grasim Industries Limited (Grasim) ·
Aditya Birla Nuvo Limited (ABNL) ·
Birla TMT Holdings Private Limited (Birla TMT) |
|
|
|
|
Subsidiaries : |
·
Swinder Singh Satara and Company Limited (SSS and
Company) ·
Aditya Birla Telecom Limited (ABTL) ·
Idea Cellular Services Limited (ICSL) ·
Idea Cellular Infrastructure Services Limited
(ICISL) ·
Idea Cellular Towers Infrastructure Limited
(ICTIL) ·
Idea Mobile Commerce Services Limited (IMCSL)
(Formerly known as Carlos Towers Limited) |
|
|
|
|
Joint Venture |
·
Indus Towers Limited (ITL) ·
Spice Communications Limited (SCL) ( Upto
February 28th, 2010) |
|
|
|
|
Entities having significant Influence : |
·
TMI Mauritius Limited ·
TMI India Limited (TMI) ·
Axiata Group Berhad |
CAPITAL STRUCTURE
After 28.09.2011
Authorised Capital : Rs.82750.000
Millions
Issued, Subscribed & Paid-up Capital : Rs.33074.278
Millions
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
6775000000 |
Equity Shares |
Rs.10/- each |
Rs.67750.000 Millions |
|
1500 |
Redeemable Cumulative Non Convertible Preference Shares |
Rs.10000000/- each |
Rs.15000.000 Millions |
|
|
Total |
|
Rs.82750.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3303271505 |
Equity Shares |
Rs.10/- each |
Rs.33032.720
Millions |
Out of the above
199153469 Equity Shares are allotted as fully paid up under the Scheme of
Amalgamation of Spice Communications Limited without payments being received in
cash.
FINANCIAL DATA
[All figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
33032.720 |
32998.380 |
31000.950 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
89796.210 |
85093.260 |
85813.710 |
|
|
4] (Accumulated Losses) |
0.000 |
(3963.740) |
(4052.830) |
|
|
5] Outstanding Employee Stock Option |
478.090 |
444.450 |
182.330 |
|
|
NETWORTH |
123307.020 |
114572.350 |
112944.160 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
77600.390 |
59886.080 |
55649.320 |
|
|
2] Unsecured Loans |
27974.210 |
5378.050 |
20144.340 |
|
|
TOTAL BORROWING |
105574.600 |
65264.130 |
75793.660 |
|
|
DEFERRED TAX LIABILITIES |
2870.150 |
2256.360 |
1425.380 |
|
|
|
|
|
|
|
|
TOTAL |
231751.770 |
182092.840 |
190163.200 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
191316.240 |
149270.590 |
108228.900 |
|
|
Capital work-in-progress |
35940.510 |
4625.810 |
17218.180 |
|
|
|
|
|
|
|
|
INVESTMENT |
25728.070 |
27551.260 |
49288.080 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
522.160 |
466.990 |
427.290 |
|
|
Sundry Debtors |
4614.460 |
4301.170 |
3295.870 |
|
|
Cash & Bank Balances |
4515.350 |
2804.410 |
23444.290 |
|
|
Other Current Assets |
741.110 |
1243.650 |
1330.840 |
|
|
Loans & Advances |
22902.760 |
30002.810 |
19140.170 |
|
Total
Current Assets |
33295.840
|
38819.030
|
47638.460
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
15692.210 |
11941.100 |
11285.170 |
|
|
Sundry Creditors |
24855.130 |
19938.740 |
|
|
|
Provisions |
1291.730 |
1377.620 |
986.510 |
|
Total
Current Liabilities |
54528.890
|
38173.850
|
32210.420
|
|
|
Net Current Assets |
(21233.050) |
645.180 |
15428.040 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
231751.770 |
182092.840 |
190163.200 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Service Revenue |
153327.770 |
118502.210 |
98383.470 |
|
|
|
|
0.250 |
0.220 |
187.330 |
|
|
|
Other Income |
561.950 |
801.440 |
215.770 |
|
|
|
TOTAL (A) |
153889.970 |
119303.870 |
98786.570 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Trading Goods Sold |
0.200 |
0.220 |
189.640 |
|
|
|
Personnel Expenditure |
7288.830 |
5698.860 |
4676.850 |
|
|
|
Network Operating Expenditure |
46798.170 |
34394.160 |
20761.570 |
|
|
|
License and WPC Charges |
17728.000 |
12944.790 |
10958.960 |
|
|
|
Roaming and Access Charges |
24754.480 |
17452.900 |
18158.810 |
|
|
|
Subscriber Acquisition & Servicing
Expenditures |
16427.530 |
11343.890 |
8145.660 |
|
|
|
Advertisement and business Promotion
Expenditure |
3848.380 |
4066.940 |
4265.710 |
|
|
|
Administration and other Expenses |
5763.720 |
4456.560 |
3824.930 |
|
|
|
Amortisations of Intangible Assets |
2500.150 |
1845.900 |
1461.340 |
|
|
|
Surplus from Prepayment of Loan |
0.000 |
(316.940) |
0.000 |
|
|
|
TOTAL (B) |
125109.460 |
91887.280 |
72443.470 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
28780.510 |
27416.590 |
26343.100 |
|
|
|
|
|
|
|
|
|
Less |
FINANCE AND
TREASURY CHARGES (NET) (D) |
2487.350 |
2063.200 |
4507.240 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
26293.160 |
25353.390 |
21835.860 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
17229.950 |
13666.070 |
10967.220 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
9063.210 |
11687.320 |
10868.640 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
617.240 |
1150.770 |
856.530 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
8445.970 |
10536.550 |
10012.110 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(3963.740) |
(4052.830) |
(14064.940) |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Accumulated Losses on Amalgamation of Spice Communications Limited |
0.000 |
15463.770 |
0.000 |
|
|
|
Withdrawal from General Reserve) |
0.000 |
(4844.600) |
0.000 |
|
|
|
Deferred tax on Amalgamation of Spice Communications Limited |
0.000 |
(171.710) |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
4482.230 |
(3963.740) |
(4052.830) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
International roaming services |
811.670 |
712.690 |
686.600 |
|
|
|
Termination / carriage services |
301.580 |
0.000 |
0.000 |
|
|
TOTAL EARNINGS |
1113.250 |
712.690 |
686.600 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Capital Goods |
13980.860 |
20252.070 |
19095.140 |
|
|
|
Trading Goods |
0.000 |
0.000 |
189.190 |
|
|
TOTAL IMPORTS |
13980.860 |
20252.070 |
19284.330 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) Basic Diluted |
2.56 2.55 |
3.39 3.38 |
3.42 3.42 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2011 1st
Quarter |
30.09.2011 2nd
Quarter |
|
Net Sales |
|
44841.100 |
45771.500 |
|
Total Expenditure |
|
34672.000 |
35847.500 |
|
PBIDT (Excl OI) |
|
10169.100 |
9924.000 |
|
Other Income |
|
0.000 |
0.000 |
|
Operating Profit |
|
10169.100 |
9924.000 |
|
Interest |
|
2061.800 |
2538.400 |
|
Exceptional Items |
|
0.000 |
0.000 |
|
PBDT |
|
8107.300 |
7385.600 |
|
Depreciation |
|
5960.600 |
6308.700 |
|
Profit Before Tax |
|
2146.700 |
1076.900 |
|
Tax |
|
649.400 |
337.500 |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
1497.300 |
739.400 |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
1497.300 |
739.400 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
5.49 |
8.83 |
10.14 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
5.91 |
9.86 |
11.03 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
4.04 |
6.21 |
6.97 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.07 |
0.10 |
0.10 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.30 |
0.90 |
0.96 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.61 |
1.02 |
1.48 |
LOCAL AGENCY FURTHER INFORMATION
OPERATIONS REVIEW
The Company’s
total subscriber base as on March 31, 2011 stood at 89.5 million, an increase of
40.2% over the previous year. On a national basis, the Company’s subscriber
market share stood at 11.0% as of end March, 2011. Further, the Company’s
revenue market share increased to 13.2% for the year ended March, 2011 from
12.4% in the previous year.
During the
financial year, the Company’s total minutes of usage on the network crossed the
daily one billion minutes mark in terms of daily voice traffic, placing the
Company amongst the largest 10 telecom operators in the world. The Company grew
its Optic Fibre network by ~ 7,000 route kilometers during the financial year
to cater to almost all of its captive National Long Distance traffic.
As a result of the
above, on a standalone basis, the total revenues for the financial year were
Rs.153890 Million representing a growth of 29.0% over the previous year.
During the last
financial year (FY 10), the Company had launched 7 new service areas, which, in
FY 11 operated for the first full financial year and are yet to generate cash
from operations. The Profit after tax was lower at Rs.8446 Million, a decrease
of 19.8% as compared to the previous year. However, the brought forward losses
from the previous years (including those acquired on amalgamation of Spice
Communications Limited in March 2010) have been completely wiped off during
this financial year. As of March 31, 2011, the company has carried the
accumulated Profit and Loss balance of Rs.4482 Million to Reserves and Surplus.
On a consolidated
basis, the total revenues were higher by 24.0% at Rs.155032 Million over the
previous year. The consolidated Net Profit after tax stood at Rs.8987 Million,
a decrease of 5.8% compared to the previous year.
SIGNIFICANT
DEVELOPMENTS
Launch of 3G Services
The Company was
winner of 3G spectrum in 11 services areas. During the period March’11 to
July’11, the Company has launched 3G services in 9 out of these 11 service
areas. The Company is in the process of launching 3G services in
Besides providing
3G services in the service areas where the Company has won spectrum, the
Company has also entered into bilateral roaming arrangements with other leading
operators. Consequent to these arrangements, the Company is providing 3G
services in 6 service areas through roaming arrangements, and is in talks to
launch its 3G services in the remaining service areas.
ISO 9001:2008 Certification
The Service
Delivery function of the Company is ISO 9001:2008 certified. The ISO 9001:2008
certification (by TUV-Nord) ensures a unified platform for providing consistent
services to all the customers the Company serves across the markets and hence
the processes that are implemented are customer centric, best in class and in
line with the international quality management systems.
Change in Leadership
Mr. Sanjeev Aga relinquished
the office of the Managing Director of the Company from the close of business
hours on March 31, 2011. Mr. Aga continues to be on the Board as a
Non-Executive Director of the Company. Mr. Himanshu Kapania assumed the role of
the Managing Director with effect from April 1, 2011. Mr. Kapania has over 26
years of experience and has indepth knowledge of the Telecom Industry including
the current competitive landscape in
Merger of Spice Communications Limited
The Department of
Telecommunications (DoT) had obtained an ex-parte stay on March 30, 2011 from
the Hon’ble High Court of Delhi against its order dated February 5, 2010
sanctioning the Scheme of Amalgamation of Spice Communications Limited (Spice)
with the Company. The Hon’ble High Court of Delhi while pronouncing its
judgment on July 4, 2011, reaffirmed the amalgamation of Spice with the
Company. However, the said judgment transferred and vested unto the DoT, the
six licenses granted to erstwhile Spice along with the spectrum (including the
two operational licenses for Punjab and Karnataka service areas), till the time
permission of DoT is obtained. Upon an appeal filed by the Company before the
Appellate Bench, challenging the above judgment of July 4, 2011, the Appellate Bench
through interim orders, has directed DoT to:-
·
Accept the License Fee from the Company without
prejudice, as the Company is continuing to operate the licenses for Punjab
& Karnataka service areas granted to erstwhile Spice;
·
Maintain status quo in relation to the aforesaid
two operating licenses and not to take any coercive steps in relation to any
demand pertaining to the four non operating licenses till the next date of
hearing.
The matter remains
sub-judice.
3G Spectrum for
The Company had
participated in the 3G auction conducted by the Department of
Telecommunications (DoT), basis the 2G licenses held by it for various service
areas and was declared winner for the allotment of 3G spectrum in 11 service
areas on May 21, 2010, including
As the Company did
not receive any response to repeated requests made to DoT, it approached
Telecom Disputes Settlement and Appellate Tribunal (TDSAT) and filed Petition
for necessary direction to the DoT to allow the commercial usage of allocated
3G Spectrum for
Notices from DoT for alleged violation of terms and conditions of
License Agreement
Due to the DoTs
alleged contention that the acquisition of erstwhile Spice Communications
Limited and its subsequent amalgamation violates certain license conditions /
guidelines, the Company had received various Show Cause / Demand Notices from
the DoT in respect of the operational and non operational licenses including
for alleged failure to meet rollout obligations. The Company is contesting the
same before the appropriate forums.
AWARDS AND
RECOGNITIONS
The Company’s
contribution and efforts is being recognized through prestigious awards and
recognitions in various fora. Some of them are listed below:
·
The company has been ranked 1st in the
Telecommunications sector and ranked 12th in the country under India’s Best
Companies to Work for – 2011 Study conducted by Great Place to Work Institute,
India, in partnership with The Economic Times.
·
The Company has also been adjudged amongst the Top
3 companies in Telecommunications sector in the “Best Companies to Work For”
Study conducted by Business Today.
·
The Company has been ranked 3rd in Best Investor
Relations category for Telecommunications sector (Nominated by Sell Side) in
2011 All-Asia Executive Team rankings by Institutional Investor magazine in a
sector based survey, which had a participation of 522 portfolio managers and
investors, as well as 348 sell-side analysts.
·
Brand !dea has been ranked the 4th Buzziest
Brand by Agencyfaqs for second consecutive year.
·
Outdoor Innovation for “Break the Language Barrier
campaign” won two Silver Awards at the OAC (Outdoor Advertising Convention)
Awards 2011 for Telecom Category for Multiple Executions and Best New Media
Format Innovation.
·
The ‘Use Mobile Save Paper’ campaign was one of the
most awarded campaigns with over 7 awards in various media awards like the
EMVIES 2010, EFFIES 2010, Digital Media Awards 10-11 and Yahoo big Chair Awards
10- 11. The campaign was also creditably nominated at the Asian Marketing
Effectiveness Awards and it also won us the Olive Crown Gold Award for the
Green Brand of the Year at Goafest 2011.
·
The Company also received the award for ‘Most
outstanding use of Radio in an Ad campaign’ at the India Radio Forum 2011, Best
Televised Event - EEMAX Awards 2010 for ‘Idea Rocks India’ and an award for
Rural Marketing Programme at the WOW Awards.
NEW INITIATIVES
AND ALLIANCES
During the year,
the Company made extensive progress on the marketing and customer care front by
introducing various innovative products and services and also entered into
various alliances. Some of these are:
·
“IMAGINE” promotions management system won the
Prepaid Excellence Awards 2011 for Best Product Innovation category. This
system enables the Company to launch targeted promotions for the prepaid
subscribers and ensures enhancement in take rate of the promotions.
·
Matrix, the number and SIM management system is
being rolled out to enable seamless provisioning of numbers
·
and starter packs in the various network elements.
·
Siebel CRM (Christened as
·
To facilitate higher adoption of 3G services by
customers and to provide better face-to-face service, 3G Experience Zones have
been established at the Service Centers across various cities. The 3G
Experience Zones are managed by trained Data Specialist equipped with TV,
Netbook, 3G compatible handset, NetSetter and device simulators for
demonstration and query handling.
·
The Company launched a unique Interactive Voice
Response rural service called ‘Behtar Zindagi’ in 16 regional languages, which
provides information on key requirements of the rural segment like mandi rates,
livestock, weather information,
agriculture etc.
·
Classified Services have been launched as a new VAS
service, offering access to Jobs, Real Estate, Matrimony, Best Deals etc.
·
Idea continued on its ‘What an Idea Sirji’ campaign
and launched the much appreciated ‘Break the Language Barrier’ campaign. It was
supported with a unique service of ‘Idea Language Helpline’ offering instant
translations in 15 Indian languages.
·
The Idea 3G media campaign was launched to support
Idea’s 3G rollout.
·
Idea strengthened its brand through a series of
media properties with associations with Kaun Banega Crorepati, Koffee With
Karan, Mission Army and Grammy Awards on VH1, in addition to existing marquee
properties like Idea Filmfare Awards, Idea Present Citizens Journalist and
other regional media properties. The brand continued its association with the
Delhi Daredevils team in IPL4.
·
Idea launched a unique National Inter School Skill fest
called “Kaho Whats Your Idea” in association with renowned Quizmaster Derek O
Brien. The program was very well received as it became one of the largest
National School Connect Programs in the country touching 2.5 Lakh students
across 3000 schools in 100 cities.
SUBSIDIARIES AND
JOINT VENTURES
The Company has
the following subsidiaries and joint ventures:
SUBSIDIARIES
·
Aditya Birla Telecom Limited, holds 16%
shareholding in Indus Towers Limited and 100% shareholding in Idea Cellular
Towers Infrastructure Limited.
·
Idea Cellular Services Limited, provides manpower
services to the Company.
·
Idea Cellular Infrastructure Services Limited, is a
tower company owning towers in
·
Idea Cellular Towers Infrastructure Limited
(ICTIL), holds towers de-merged from the Company. ICTIL has filed a scheme of
arrangement in the Hon’ble High Court of Delhi which provides for its merger
into Indus Towers Limited.
·
Idea Mobile Commerce Services Limited (Formerly
Carlos Towers Limited), is engaged in the business of Mobile Banking, though it
is yet to commence commercial operations.
·
Swinder Singh Satara and Company Limited, is
engaged in the trading of Data Cards, mobile handsets and Fixed Wireless
Phones.
In terms of
general exemption granted by the Ministry of Corporate Affairs, Government of
India, vide its circular no. 2/2011 dated February 8, 2011, and in compliance
with the conditions enlisted therein, the reports and annual
accounts of the
subsidiary companies for the financial year ended March 31, 2011 have not been
attached to the Company’s accounts.
JOINT VENTURES
Indus Towers
Limited, in which Aditya Birla Telecom Limited (ABTL) holds a 16% stake, is a
joint venture between the Bharti group, Vodafone Essar group and the Company
(through ABTL), and provides passive infrastructure services in 16 service
areas.
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT
INDIAN WIRELESS
SECTOR
With the award of
new mobile licenses in 2008 by the DoT, the Indian wireless sector is
experiencing a phase of hypercompetition and over-capacity. As a result, in the
last 8 quarters, the industry has witnessed savage price drops, restricting the
revenue growth inspite being among the fastest growing global markets in terms
of subscribers. Last year industry wireless subscriber base grew by 38.9% but
the sectorial gross revenue increased only by 11.9%, slower than gross GDP,
counterintuitive for a high growth market.
The country’s wireless
tele-density stands at 68.0% as on March 31, 2011, while the rural tele-density
is still under-penetrated at 32.8%, offering good growth opportunity in the
voice business for the strong incumbent telecom operators.
The Indian
wireless market has reached global proportions and is the second largest
wireless market in the world. In
comparison, as fixed-line penetration is low, the broadband subscriber base is
only at 11.89 Mn, a penetration of 1%. This is expected to change with the
arrival of 3G and BWA platforms.
DISCUSSION ON
IDEA’S OPERATIONAL PERFORMANCE AND CONSOLIDATED FINANCIAL STATEMENTS
Mobile Business
Idea provides
mobile services in all 22 service areas of
Long Distance and Other Services
The Company holds
licenses for NLD, ILD, ISP and IP-1 services. The Company has Pan
Telecom Infrastructure
As on March 31,
2011, the Company has a portfolio of 73,668 2G cell sites. The demerged 11,094
towers are under IRU arrangement with
Launch of 3G services
In April-June
2010, the DoT conducted open auction for 3G and BWA spectrum inviting the
existing Indian and Global telecom operator. Idea is delighted to win 3G
spectrum in 11 important service areas, through the market determined auction
process. These 11 service areas cover 76% of Idea’s revenue base as well as
account for half of national mobility revenue. In March, 2011 Company launched
its 3G services and same is now extended to 9 out of these 11 service areas.
Company also
entered into bilateral roaming arrangement for the service areas of Mumbai,
Bihar, Karnataka, Delhi, Kolkata and Tamil Nadu (including Chennai), with
leading quality operators, enabling it to offer 3G services in 15 service
areas. Idea subscribers would very soon be able to enjoy 3G services, across
most parts of
Idea’s gold
standard 3G services connect to the world of faster internet with the speed of
upto 21 Mbps, video calling and conferencing on the handset, Mobile TV, Idea
Mall applications store, besides many other infotainment services.
Idea has also
introduced a choice of affordable data billing option for Pre-paid and
Post-paid subscribers, including time based billing plans for 3G services,
enabling user to avail high end data services without worrying about the volume
of usage. Idea is the first company to introduce the sachet pricing at as low
as Rs.8 for trial purpose and attractive ‘Gigabyte’ bundles, for medium to
heavy users.
With launch of 3G
services and all around improvement in 3G ecosystem in terms of devices,
applications and contents the Company is all set to exploit the untapped wireless
broadband data market and other emerging verticals of revenue like Mobile
banking, M-commerce, M-health, M-education etc.
Revenue Market Share
The Company
remains focused to improve its revenue market share. From 5th ranked operator
in FY09, company improved its national standing and as per latest TRAI release,
is positioned as No. 3 Indian operator, in terms of gross revenues. The revenue
market share for the company stands at 13.2% in FY11 compared to 12.4% in FY10,
the testimony to its growing performance. Company was placed among top two
operators in terms of incremental gross revenue market share in FY11. In its
established service areas Company commands a revenue market share of 17.7%.
Quality Subscriber Base
As at end March,
2011 the Company’s subscriber base stands at 89.5 Million as compared to 63.8
Million last year, an increase of 40.2%. To monitor the quality of subscribers
reported by the industry, the TRAI recently started releasing the data of VLR
subscribers (surrogate for active subscribers). Idea has always been stringent
in monitoring the quality of its subscriber base. As per TRAI release (March,
2011), the Company leads the industry with 93% of reported subscribers as VLR
subscribers. Company’s VLR EoP subscriber market share stands at 14.6% in
March, 2011 compared to a reported subscriber market share of 11.0%, true
reflection of competitive strength of the Company.
Mobile Number Portability
The Mobile Number
Portability (MNP) - an invite to all Indian mobile customers to change their
Wireless Operator, while retaining their mobile number was implemented by a
nationwide launch on January 20, 2011. On an overall basis, the subscribers who
opted to change their operator are not very large in numbers. However, the
trends emerging from MNP are clearly distinguishing Idea in terms of customers’
preference for better quality of services and perception of brand value. With a
net gain of over 930,000 subscribers (as on July 24, 2011) and lowest port-out
ratio of only 58 subscribers against every 100 subscribers, your Company leads
the industry with respect to Mobile Number Portability.
The success on MNP
can be attributed to winning the MNP space in consumer’s mind. We were the
first mover to promote MNP, highlighting our network quality, superior consumer
service and brand strength, using the power of ‘No Idea, Get Idea’ campaign.
Idea has been most
successful on the MNP drive as its program is based on the insights that mobile
consumer look for, a Pan India network
offering seamless connectivity across the length and breadth of the country,
accessible and humane customer care, accurate billing system, voice quality and
low call drops. The overwhelming response from the Indian consumers on MNP
reflects the power of these parameters, being delivered by the company.
Non Voice Revenue
Idea believes
there is significant potential for the growth in the ‘Non Voice Segment’
revenues across all three categories – Text, Voice and Data.
Indian telecom
operators manages only 12-13% of VAS revenue, thereby lagging behind other
emerging markets counterparts in China, Indonesia etc, where Non-voice revenue
is significantly high. Idea is focused on capturing this opportunity in VAS.
The Company is
targeting to improve adoption of SMS services, where current penetration is
only 39%. Similarly while 60% of Idea consumers use GPRS/EDGE devices, only 10%
are active users of wireless data services and the company is making all
efforts to change the same.
Idea VAS strategy is
to offer rich and high quality content around music, bollywood, cricket and
other mass appeal
products to over
93 million mobile users.
Mobile Banking
RBI has allowed
the mobile operators to acquire a ‘Semi Closed Wallet’ to offer M-banking
services for the unbanked so as to improve the financial inclusion of masses.
Idea became the
first major telecom operator to initiate Mobile Banking services through an
alliance with Axis Bank. Idea has developed a facility titled ‘Idea MyCash’
which provides basic banking services including money transfer using the mobile
platform.
Project ‘Idea
MyCash’ along with Axis Bank is currently at a pilot stage. This is mobile
based financial inclusion initiative which besides providing basic banking
services to the unbanked like cash deposit, cash withdrawal and balance
enquiry, will also enable money transfer between the migrant population in
urban areas to their beneficiaries back home. The remittance facility is
currently being offered on pilot basis from Mumbai (Dharavi) to Uttar Pradesh
East (
Power Brand
Idea is envisioned
as a ‘Champion’ brand, driven by a cause. Their mission is to shift paradigms,
making mobile telephony a way of life. To be a leader in the fast changing
telecom industry, it is important to be ahead of the times. Idea represents
innovation and vitality, is imaginative and future ready. Idea strives to build
preference for the brand through its services.
Idea’s
communication has been about simple ideas that have the potential to change
your life. It paints a picture of possibilities that lift mobile telephony from
just communication to being an enabler of positive change in the lives of millions.
They have creatively used the role Mobile Services is playing in uniting the
country and providing innovative suggestions to long standing social and
societal issues. The brand communication is designed to be perceived as humane,
caring, warm and friendly.
This framework has
led to the creation of some very noticeable and memorable advertising like the
Caste War, Education for all, Use Mobile Save Paper, Break the Language
Barrier, which have not only won many awards but also millions of hearts. This
time they have embarked on an even more ambitious social issue that looms large
on
Idea is the
fastest growing telecom operator in the world’s fastest growing telecom market,
and has also been ranked among
Global Scale of Operation at World’s Lowest Pricing Points
The Company
carried 362.6 billion minutes on its network during FY11, placing it among the
top 10 operators in the world in terms of voice minutes of usage.
Due to
hyper-competition, the realised rate fell by 12.3%, from Q4FY10 to Q4FY11 and
stands at 40.6p. But the Company has worked hard to manage its cost structure
with better assets utilisation and efficiencies in operation. As a result, the
cost per minute during the same period declined by 10.6%, and stands at 32.6p.
Idea is one of the few companies in the world, which is able to run high
quality telecom services at the world’s lowest price.
REGULATORY
Major regulatory developments
for the period are:
3G and BWA Spectrum Allotment
The DoT conducted
the auction of 3G and BWA spectrum in 2010. The 3G auction conducted by
International auctioneers under supervision by Department of Telecommunications
concluded in May 2010, which was followed by auction for BWA spectrum. The 3G
and BWA auction fetched a total of approximate Rs.1060000.000 millions to the
Government of India. A total of 71 slots for 3G spectrum were auctioned, while
MTNL and BSNL were allocated spectrum in respective areas with equivalent
winning bid prices. Post conclusion of the 3G and BWA spectrum auctioning
process, spectrum has been allocated to successful bidders, as per the timeline
provided in the Notice Inviting Application (NIA). The DoT has also amended the
CMTS/UAS license conditions to use 3G/BWA spectrum for provision of telecom
access services. During the last quarter of the year, some operators have
started roll-out of 3G services. However issues relating to interference etc.
have impacted services at certain locations like
Mobile Number Portability
The facility of
Mobile Number Portability (MNP) service was introduced on a pilot basis in the
service area of Haryana on November 25, 2010. After successful trial, same was
introduced across all remaining service areas of the country from January 20,
2011. By the end of March 2011, around 64.23 lakh subscribers have submitted
their requests to different service providers for porting their mobile number. (Source: TRAI)
Security Compliances
On July 28, 2010,
the DoT had issued the license amendment, as per which, a security template had
to be signed between the licensees and vendors. There were many clauses in the
template which were incoherent and not acceptable to the vendors and the
operators. As a result, majority of the vendors were not able to sign the
agreement. The amendment effectively visualized a penalty of Rs.500.000
millions for any incidence of non-compliance – valid for each purchase order.
Later on the DoT clarified that the process of import of equipment could also
be considered under specific approval process. This clarification – valid for
vendors, who did not sign template agreements, led to considerable delays in
import of equipment and associated roll-out, especially in rural areas.
On other security
linked compliances, it may be noted that DoT extended the time frame for
completion of subscriber reverification process – which considering the
existing subscriber base was a mammoth exercise. After deliberations from
service providers the DoT also accepted the UID as a valid Proof of Identity
and Address for acquiring mobile connections. In fact, the DoT will shortly
conduct a Proof of Concept for the same with a few operators.
The service
providers also had to face fresh requirements related to compliance on EMF
radiation norms. Post discussions with service providers, the DoT agreed for
extension of deadline for EMF compliance from November 30, 2010 to March 31,
2011.
TRAI Recommendations on Spectrum Management and Licensing Framework
The TRAI on May
11, 2010, announced recommendations on Spectrum Management and Licensing
Framework. As per the recommendations:
·
The contracted spectrum will be 6.2 MHz for GSM
operators and 5 MHz for CDMA operators.
·
The prescribed limit for spectrum to be assigned to
a service provider will be 8 MHz for all service areas, other than
·
All future licenses should be unified licenses and
spectrum to be delinked from the license.
·
There should be uniform license fee across all
telecom licenses and service areas.
·
Spectrum in 800 MHz and 900 MHz bands should be
refarmed at the time of renewal of licenses and to be replaced with 450/1900
MHz (for CDMA) /1800 MHz (for GSM) bands with equal amount of spectrum.
·
The 3G price should be adopted to determine the
current price of spectrum in the 1800 MHz band. 900MHz spectrum band will be
valued at 1.5 times of 1800MHz band. The TRAI is separately initiating the
exercise to further study this subject and would apprise the Government of its
findings.
·
Spectrum sharing to be allowed between 2 operators,
who do not hold more than 4.4 MHz.
However no final
decision has been taken by the Department of Telecommunications on this issue.
Report on the 2010 value of spectrum in the 1800 MHz Band
The TRAI post
their recommendations in May, 2010 had entrusted four experts to study the
issues involved and provide the value of spectrum in 1800 MHz band. On February
9, 2011 the TRAI has released the experts report on “The 2010 value of spectrum
in 1800 MHz band”. As per the report, the price for per MHz of the Pan India
spectrum, upto 6.2 MHz, is estimated to be Rs.17697.500 millions while for the
spectrum beyond 6.2 MHz, the estimated price of the Pan India spectrum is
Rs.45718.700 millions. In a letter to DoT, while submitting the above report,
the TRAI has also mentioned the following points:
·
If the cancellation of licenses, as advised by the
authority, takes place then in certain service areas spectrum would be
available and in that event it should be possible for the government to auction
the surplus spectrum and treat the auction price as the relevant price of
spectrum beyond 6.2 MHz.
·
The price given by the experts be adopted as the
best available figures for spectrum up to 6.2 MHz and these prices may be made
applicable w.e.f. April, 2010 prorated for the remaining validity of the
respective licenses while charging for excess spectrum.
However no final
decision has been taken by the Department of Telecommunications on this issue.
OUTLOOK
The over-capacity
and hyper-competitive scenario over the last two years resulted in compulsion
to operate at tariff levels which are lower than costs for most of the new
operators. In this phase, Idea has significantly improved its competitiveness
in the world’s fastest growing telecom market and now ranks among the top three
Indian wireless operators, in terms of gross revenue. Idea based on its strong
position in the leadership service areas, calibrated approach for new service
areas, brand power, sophisticated management processes coupled with its strong
Balance Sheet and generation of steady cash profits is poised to benefit from
long term sector opportunities.
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED
30.09.2011
[Rs.
in million]
|
Particulars |
Quarter Ended 30.09.2011 Unaudited |
Period Ended 30.09.2011 Unaudited |
|
Income |
|
|
|
Net Sales / Income from Operations |
45653.600 |
90450.400 |
|
Other Operating Income |
117.900 |
162.200 |
|
Total Operating Income |
45771.500 |
90612.600 |
|
Expenditure |
|
|
|
(Increase)/decrease in Stock in Trade |
-- |
-- |
|
Consumption of Raw Materials |
-- |
-- |
|
Cost of trading goods |
-- |
-- |
|
Personnel Expenditure |
2203.500 |
4097.700 |
|
Network Operating Expenditure |
13412.200 |
26502.100 |
|
License and WPC Charges |
5132.400 |
10248.500 |
|
Roaming and Access Charges |
7877.200 |
15198.600 |
|
Subscriber Acquisition and Servicing Expenditure and advertisement and business promotion Expenditure |
5564.300 |
11198.100 |
|
Depreciation and Amortisation |
6308.700 |
12269.300 |
|
Other Expenditure |
1657.900 |
3274.500 |
|
Total Expenditure |
42156.200 |
82788.800 |
|
Profit From Operations before other Income Interest, Finance Charges and Tax |
3615.300 |
7823.800 |
|
Other Income |
-- |
-- |
|
Profit before finance charges and Tax |
3615.300 |
7823.800 |
|
Finance and Treasury Charges (Net) |
2538.400 |
4600.200 |
|
Profit Before Tax |
1076.900 |
3223.600 |
|
Provision for Taxation (Net of MAT credit) |
337.500 |
986.900 |
|
Net Profit After Tax |
739.400 |
2236.700 |
|
Paid Up Equity Share Capital ( Face Value of the share Rs.10/- per share) |
33060.100 |
33060.100 |
|
Reserves Excluding Revaluation Reserves |
|
|
|
EPS for the period (Rupee) |
|
|
|
-Basic |
0.22 |
0.68 |
|
-Diluted |
0.22 |
0.68 |
|
Average of Public Share Holding |
|
|
|
- Number of Shares |
-- |
1785330155 |
|
- Percentage of shareholding |
-- |
54.00% |
|
Promoters and Promoter group share holding |
|
|
|
a) Pledged / Encumbered |
|
|
|
- Number of Shares |
|
|
|
- Percentage of share (as a % of the total shareholding of promoter and promoter group) |
-- |
0.00% |
|
- Percentage of shares(as a % of the total share capital of the company) |
-- |
0.00% |
|
b) Non-encumbered |
|
|
|
- Number of Shares |
-- |
1520679047 |
|
- Percentage of Share (as a % of the total shareholding of promoter and promoter group) |
-- |
100.00% |
|
- Percentage of Share (as a % of the total share capital of the company) |
-- |
46.00% |
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED
30.09.2011
[Rs.
in million]
|
Particulars |
Quarter Ended 30.09.2011 Unaudited |
Period Ended 30.09.2011 Unaudited |
|
1. Segment Revenue |
|
|
|
Net sales / income from each
segment |
|
|
|
Mobility |
45546.300 |
90185.100 |
|
Long Distance |
615.400 |
1261.300 |
|
Total |
46161.700 |
91446.400 |
|
Less : Inter-segment
revenue eliminations |
(508.100) |
(996.000) |
|
Net sales / Income from operations |
45653.600 |
90450.400 |
|
2.Segment Results |
|
|
|
Profit/ loss before finance
charges and tax from each segment |
|
|
|
Mobility |
3567.400 |
7709.500 |
|
Long Distance |
47.900 |
114.300 |
|
Profit before finance charges and tax |
3615.300 |
7823.800 |
|
Less : Finance and Treasury
Charges [net] |
2538.400 |
4600.200 |
|
Profit Before Tax |
1076.900 |
3223.600 |
|
|
|
|
|
3.Capital Employed |
|
|
|
[Segment assets – segment
liabilities] |
|
|
|
Mobility |
|
212748.700 |
|
Long Distance |
|
105.100 |
|
Unallocable |
|
29773.600 |
|
Total
|
|
242627.400 |
Notes
·
The above unaudited financial results, as reviewed
by the Audit Committee of the Board, were approved and taken on record by the Board
of Directors at their meeting held on 21st October 2011. Limited
Review, as required under Clause 41 of Listing Agreement, has been carried out
by the Statutory Auditors.
·
National long distance business which predominantly
provides captive connectivity to Mobility services has been merged with
Mobility business effective 1st April 2011. Accordingly, previous
period segmental figures have been regrouped.
·
The Company’s appeal before the Appellate Bench of
the Hon’ble High Court of Delhi, challenging its judgment dated 4th
July 2011 passed by single judge concerning amalgamation of erstwhile Spice
Communications Limited (Spice) with the Company and issues relating thereto is
pending to be further heard. The next hearing is scheduled in November 2011. Through
interim orders, Appellate Bench had earlier directed DoT to :-
- Accept the
License Fee from the Company without prejudice, as the Company is
continuing to operate the licenses for Punjab and Karnataka service areas
granted to erstwhile Spice;
- Till the next
date of hearing maintain status quo in relation to the aforesaid two
operating licenses and no coercive steps in relation to any demand
pertaining to the four non operating licenses.
Pending the final disposal of the appeal,
the consequential financial impact, if any, cannot be ascertained.
·
The Hon’ble Supreme Court, vide its judgment dated
11th October 2011, has set aside orders dated 7th July
2006 and 30th August, 2007 passed by the Telecom Disputes Settlement
and Appellant Tribunal (TDSAT) whereby TDSAT, on petition of certain Telecom
Operators, had ruled that income derived by a telecom Operator from non
licensed activities should not be taken into account while calculating the
Adjusted Gross Revenue (AGR) which farms the basis on which License fee is paid
to DoT. The Supreme Court while passing the above judgment held that under the
National telecom Policy 1999, as the telecom Operators had signed the amended
License Agreement under which a percentage of AGR was to be paid to DoT as
License Fee instead of a fixed license fee, it was beyond the jurisdiction of
the TDSAT to have entertained petitions from Telecom Operators and to decide on
the definition of AGR without a specific demand being disputed before it. It
has further held that TDSAT can go into the facts and materials related to the
demand of a particular licensee if a licensee disputes the demand raised by the
DoT. The Company is, currently reviewing the judgment for the further course of
action pending which, the financial impact, if any, has not been presently
determined.
·
The Company has received a demand notice dated 12th
October 2011 from DoT imposing penalty of Rs.500.000 millions for alleged
breach of terms and conditions of the CMTS license agreement for
·
Statement of
Assets and Liabilities
|
Particulars |
As
at 30.09.2011 Unaudited
Rs.
in millions |
|
SHAREHOLDERS
FUNDS |
|
|
a) Capital |
33060.100 |
|
b) Reserves and Surplus |
92204.500 |
|
c) Outstanding ESOP’s |
418.800 |
|
LOAN FUNDS |
113087.000 |
|
Deferred Tax Liability (Net) |
3857.000 |
|
Total |
242627.400 |
|
|
|
|
FIXED ASSETS |
236596.900 |
|
INVESTMENTS |
16368.100 |
|
|
|
|
CURRENT ASSETS, LOANS AND ADVANCES |
|
|
a) Inventories |
537.300 |
|
b) Sundry Debtors |
6670.800 |
|
c) Cash and Bank Balances |
1029.000 |
|
d) Other Current Assets |
810.900 |
|
e) Loans and Advances |
36179.300 |
|
Less : Current Liabilities and Provisions |
|
|
a) Current Liabilities |
54074.600 |
|
b) Provisions |
1490.300 |
|
PROFIT AND LOSS ACCOUNT |
0.00 |
|
Total |
242627.400 |
·
The status of investors’ complaints is as under:
Opening – 0, Received – 61, Resolved – 61,
Closing – 0
·
Previous period’s figures have been regrouped and
rearranged wherever necessary.
FIXED ASSETS
·
Land
·
Leasehold Land
·
Building
·
Plant and Machinery
·
Furniture and Fixture
·
Office Equipment
·
Vehicles
WEB DETAILS
BUSINESS DESCRIPTION
Subject is a mobile services operator in
BOARD OF DIRECTORS
Dr. Kumar Mangalam
Birla - Non-Executive Chairman
Dr. Kumar Mangalam Birla is Non-Executive Chairman of the Board of
subject. He is Chairman of the Aditya Birla Group, was appointed as the
Chairman of the company in June 2006. Dr. Birla also serves as a director on
the Board of the Aditya Birla Group’s international companies spanning
Education
MBA ,
Mr. Sanjeev
Aga - Non-Executive Director
Mr. Sanjeev Aga has been appointed as Non-Executive Director of subject,
effective April 1, 2011. He served as Managing Director of the Company till
March 31, 2011. He has been a Director on the Board of the Aditya Birla
Management Corporation Limited, since he joined the Aditya Birla Group in April
2002. He was also the Managing Director of Aditya Birla Nuvo Limited, a
flagship company of the Aditya Birla Group. He is currently Chairman of the
Cellular Operators Association of India. Mr. Aga is an honors graduate in
Physics from St. Stephen’s College,
Education
MBA, Indian Institute of Management,
Physics,
Mr. R. C.
Bhargava - Non-Executive Independent
Director
Education
Mathematics,
Mrs. Rajashree
Birla - Non-Executive Director
Smt. Rajashree Birla is Non-Executive Director of subject, since June
2006. She is a director on the boards of all the Aditya Birla Group companies,
viz, Grasim Industries Limited, Hindalco Industries Limited, Aditya Birla Nuvo
Limited and UltraTech Cement Limited. Additionally, Mrs. Birla serves as a
director on the Board of the Aditya Birla Group’s international companies
spanning
Education
BA ,
Mr. Gian Prakash
Gupta - Non-Executive Independent Director
Shri. Gian Prakash Gupta is Non-Executive Independent Director of
subject, since December 11, 2006. He holds a post graduate degree in commerce.
He is the former Chairman and Managing Director of IDBI. He has varied
experience in the areas of general management, financial management, banking
and industrial and financial restructuring. He serves as a director on the
board of companies such as National Thermal Power Corporation Limited and
Hindustan Aeronautics Limited.
Education
M Commerce,
Mr. Mohanbir Singh
Gyani - Non-Executive Independent Director
Mr. Mohanbir Singh Gyani is Non-Executive Independent Director of
subject, since September 2006. He was formerly President and the Chief
Executive Officer of AT and T Wireless Mobility Group, and has considerable
telecommunications and GSM-based industry experience. He holds an MBA in
Finance from
Education
MBA Finance,
BA Business,
Mr. Himanshu
Kapania - Managing Director,
Mr. Himanshu Kapania is Managing Director, Director of subject, since
April 1, 2011. Mr. Kapania has over 26 years of experience and has indepth
knowledge of the Telecom Industry including the current competitive landscape
in
Education
B Electrical Engineering, Birla Institute of Technology
Mr. Biswajit Anna
Subramanian - Non-Executive Director
Mr. Biswajit Anna Subramanian is Non-Executive Director of subject. He
has a Master of Business Administration degree from the
Education
MBA, The
M Electrical Engineering,
B Electrical Engineering, Indian Institute of Technology
Mr. Arun K.
Thiagarajan - Non-Executive Independent Director
Shri. Arun K. Thiagarajan is Non-Executive Independent Director of
subject, since September 2006. He started his career with Asea AB Vasteras,
Sweden in 1969. In 1975, he became Managing Director of Flakt India Limited
(previously SF India Limited),
Education
M Electrical Engineering, Royal Institute of Technology
Business Administration,
Ms. Tarjani Vakil
- Non-Executive Independent Director
Ms. Tarjani Vakil is Non-Executive Independent Director of subject,
since September 2006. Ms. Vakil an M.A. from
Education
MA ,
PRESS RELEASES
3G CASE: TRIBUNAL'S
Tuesday adjourned to January 9 the hearing on top telecom operators providing 3G roaming services after the Department of Telecom (DoT) questioned its jurisdiction to decide the matter.
A two-judge bench
headed by Justice (retd) S.B. Sinha asked the DoT, represented by Additional
Solicitor General A.S. Chandhiok, to file an application to ascertain if TDSAT
had powers to decide licensing issues.
The mobile service
providers were also asked to state their position on the DoT application.
Meanwhile, the 3G
roaming agreements will continue to be serviced by the companies till the next
hearing on Jan 9.
Last month TDSAT
had asked DoT not to take any "coercive" action in enforcing a ban on
3G roaming against the telecom service providers till it heard the case on Jan
3.
Bharti Airtel,
Idea Cellular and Vodafone had moved the telecom tribunal challenging a DoT
order to stop 3G roaming services within 24 hours, saying it would harm
customers and the cause of investment in the sector.
According to DoT,
the roaming agreement among telecom companies for 3G services is illegal and
would lead to a significant loss of revenue to the government. Earlier, telecom
regulator TRAI and the enforcement cell of the telecom department had also
termed the agreement illegal.
The service
providers had entered into a roaming agreement to offer 3G services such as
video calling, mobile TV and multi-media gaming in telecom circles where they
could not win 3G spectrum auctioned last year.
The operators have
termed DoT's actions arbitrary, unreasonable and retrograde.
India, December 29 -- After hearing a petition regarding additional charges on SMSes during festival days, the Madras High Court has issued a notice to TRAI and the regional managers of 10 telecom operators, directing them not to hike prices during such periods.
The petition seeks
an interim stay on what it calls "unfair" SMS rate hikes during
festivals, hoping for it be put into place by New Year's eve. It further said
such hikes, enforced when people most use the service, to be "fully
violating natural justice and rights given in the Constitution."
While the news
certainly is heartening, we don't expect much to come of it just yet, certainly
not India-wide, or even before the upcoming New Year's celebration. Another
hearing handling the admitted petition will be held on January 21.
The list of
telecom operators who've been issued notices by the Madras High Court: Aircel,
Bharti Airtel, BSNL Mobile, Idea, MTS, Reliance, Tata Indicom/Docomo, Uninor,
Vodafone, and Videocon.
FOR VODAFONE, IT WAS AS
SIMPLE AS 123
India, December 28 -- Commercials of Vodafone India Limited and two other mobile phone operators captured four of the top 10 slots in the November Mint-Synovate-TVAdIndx survey, continuing their dominance in the rankings.
While Vodafone
took the top spot, scoring 79 points on the ad reach index that measures ad
awareness and brand recall, an Idea Cellular Limited commercial was ranked No.
3. Advertisements for Tata Teleservices Limited's Tata Docomo brand captured
two spots (eighth and 10th) in the top 10 index in November, less than the four
spots it had in the preceding month. An ICICI Bank Ltd ad was ranked second,
with 74 points.
Consumer products
took the rest of the positions. An advertisement for the Boost health drink
ranked fourth, followed by Cadbury Perk with Glucose Energy and Domino's Pizza
at fifth and sixth positions, respectively. A commercial for Whisper Ultra
Clean sanitary napkins took the seventh slot.
The survey polled
753 respondents from high-income groups in
The month's ad
diagnostics index, which measures the softer features of advertisements, such
as likeability, enjoyment, believability and claim, showed a similar mix. The
only new entrants in the ad diagnostics index were advertisements for Cadbury 5
Star chocolate and Tanishq diamond jewellery. Vodafone and ICICI Bank also led
the ad diagnostics index.
November's top 10
ads scored 81-57 points on the diagnostics index, compared with 86-64 in the
previous month.
HC ISSUES NOTICE TO MOBILE COMPANIES ON CHARGING
EXTRA FOR SMS
Madurai, December 28 (PTI)
The Madras High Court today issued notices to 10 mobile companies on a petition
seeking to bar them from charging extra for SMSes during festivals and other
important days.
The high court bench issued
notices while admitting a petition by a lawyer, seeking a direction to the
companies and the Telecom Regulatory Authority of India (TRAI) not to hike the
tariff for this period.
Petitioner Arunachalam also
sought an interim stay on undue and sudden hike on SMS charges during important
festivals and special occasions like New year's eve on December 31 and January
1.
He contended that mobile
companies offered attractive packages while enrolling customers, including 200
Free SMS for Rs one a day, 50 paise per SMS but later announce they would
maintain special SMS tariffs on December 31.
This forces users to restrict
SMS and curtail private space and free communication on important festival
days. TRAI was also not taking steps to control it, he alleged.
Arunachalam said mobile
operators, regardless of tariff plans would charge Rs 1.50 per SMS on Dec 31,
"which is unfair." Last year SMS revenue of the companies was
Rs.1000.000 millions, he claimed.
The petitioner said users
were being charged extra at a time when they want to use their mobiles the
most, "fully violating natural justice and rights given in the
Constitution."
Among important days on
which extra tariff was collected was Pongal, Christmas, New year, Valentines
day, Independence day and Diwali, he said.
The bench after hearing him,
ordered notices to the TRAI chairperson and Zonal/Regional Managers of 10
companies-- Bharti Airtel Limited, Aircel Limited, Vodafone, Reliance, Idea
Cellular, Unitech, Tata Docomo, MTS mobile, BSNL mobile and Videocon and posted
the case for further hearing on January 21 2012.
CMT REPORT (Corruption, Money Laundering and
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.52.23 |
|
|
1 |
Rs.80.84 |
|
Euro |
1 |
Rs.66.80 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
45 |
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.