MIRA
INFORM REPORT
|
Report Date : |
30.06.2012 |
IDENTIFICATION DETAILS
|
Name : |
RELIANCE COMMUNICATIONS LIMITED (w.e.f 03.06.2006) |
|
|
|
|
Formerly Known
As : |
RELIANCE COMMUNICATION VENTURES LIMITED |
|
|
|
|
Registered
Office : |
H Block, 1st Floor, Dhirubhai Ambani, |
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Country : |
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|
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Financials (as
on) : |
31.03.2011 |
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|
|
|
Date of Incorporation
: |
15.07.2004 |
|
|
|
|
Com. Reg. No.: |
11-147531 |
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|
|
|
Capital
Investment / Paid-up Capital : |
Rs.10320.100 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L45309MH2004PLC147531 |
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|
|
|
Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on
the Stock Exchange. |
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|
|
|
Line of Business
: |
Providing Telecommunication Services. |
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|
|
|
No. of Employees
: |
2100 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (42) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 1900000000 |
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|
|
|
Status : |
Satisfactory |
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|
|
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Payment Behaviour : |
Usually Correct |
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|
|
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Litigation : |
Clear |
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Comments : |
Subject is a company of Reliance Anil Dhirubhai Ambani Group. It is a well established company having satisfactory track. The
company has incurred some loss during the current year, 2011. However, the
financial position of the company appears to some strong. Trade relations are reported as fair. Business is active. Payments are
reported to be usually correct and as per commitments. The company’s name is involved in the 2 G spectrum scam. In view of
this, the company can be considered for business dealings with some caution. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – 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 : |
H Block, 1st Floor, Dhirubhai Ambani, |
|
Tel No. : |
91-22- 30386010/ 6286/ 30373333 |
|
Fax No. : |
91-22-30376622 |
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Email : |
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|
Website : |
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Corporate Office : |
Reliance Centre, 19, Walchand Hirachand Marg, Ballared
Estate, Mumbai – 400 038, |
|
Tel No. : |
91-22-30327409 |
|
Fax No. : |
91-22-30327896 |
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|
|
|
Reliance BPO : |
A Block 2nd Floor, Dakc Kopar Khairane, Navi Mumbai 400710,
|
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. Anil D. Ambani |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. J. Ramachandran |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S.P. Talwar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Deepak Shourie |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. A.K. Purwar |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Hasit Shukla |
|
Designation : |
Company Secretary and Manager |
|
|
|
|
Name : |
Mr. Prakash Shenoy |
|
Designation : |
Company Secretary and Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2012
|
Category of Shareholder |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
9,845,089 |
0.48 |
|
|
1,369,584,468 |
66.60 |
|
|
21,279,000 |
1.03 |
|
|
21,279,000 |
1.03 |
|
|
1,400,708,557 |
68.12 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
1,400,708,557 |
68.12 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
22,261,355 |
1.08 |
|
|
5,591,565 |
0.27 |
|
|
984,211 |
0.05 |
|
|
163,702,553 |
7.96 |
|
|
152,563,475 |
7.42 |
|
|
345,103,159 |
16.78 |
|
|
|
|
|
|
56,473,974 |
2.75 |
|
|
|
|
|
|
220,293,343 |
10.71 |
|
|
20,105,313 |
0.98 |
|
|
13,641,243 |
0.66 |
|
|
13,641,243 |
0.66 |
|
|
310,513,873 |
15.10 |
|
Total Public shareholding (B) |
655,617,032 |
31.88 |
|
Total (A)+(B) |
2,056,325,589 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
7,701,292 |
- |
|
|
7,701,292 |
- |
|
Total (A)+(B)+(C) |
2,064,026,881 |
- |
BUSINESS DETAILS
|
Line of Business : |
Providing Telecommunication Services. |
GENERAL INFORMATION
|
No. of Employees : |
2100 (Approximately) |
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Bankers : |
Not Available |
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Facilities : |
(Rs. in Millions)
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Banking
Relations : |
-- |
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Auditors : |
|
|
Name : |
C Chaturvedi and Shah Chartered Accountants B.S.R. and Company Chartered Accountants hartered Accountant |
|
|
|
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Joint Venture: |
·
Alcatel Lucent Managed Solutions India Private Limited |
|
|
|
|
Holding Company : |
·
Reliance Innoventures Private Limited |
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|
|
|
Associates : |
|
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|
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Name of the
Subsidiary Companies (direct and step down subsidiaries): |
·
Global Innovative Solutions Private Limited (Upto
April 1, 2010) |
|
|
|
|
Name of the
Subsidiary Companies (direct and step down
subsidiaries): |
·
Reliance WiMax Limited ·
Reliance Digital Home Services Limited ·
Reliance Webstore Limited ·
Reliance Infocomm Infrastructure Private Limited ·
Campion Properties Limited ·
Reliance Big TV Limited ·
Reliance Tech Services Private Limited ·
Reliance Telecom Limited ·
Reliance Communications Infrastructure Limited ·
Reliance Communications Investment and Leasing
Limited ·
Reliance Infratel Limited ·
Netizen Rajasthan Limited ·
Reliance Globalcom BV ·
Reliance Communications (UK) Limited ·
Reliance Communications (Hong Kong) Limited ·
Reliance Communications (Singapore) Pte. Limited ·
Reliance Communications (New Zealand) Pte.
Limited ·
Reliance Communications (Australia) Pty. Limited ·
Anupam Global Soft (U) Limited ·
Gateway Net Trading Pte. Limited ·
Reliance Globalcom Limited ·
FLAG Telecom Singapore Pte. Limited ·
FLAG Atlantic UK Limited ·
Reliance FLAG Atlantic France SAS ·
FLAG Telecom Taiwan Limited ·
Reliance FLAG Pacific Holdings Limited ·
FLAG Telecom Group Services Limited ·
FLAG Telecom Deutschland GmbH ·
FLAG Telecom Hellas AE ·
FLAG Telecom Asia Limited ·
FLAG Telecom Nederland BV ·
Reliance Globalcom (UK) Limited ·
Yipes Holdings Inc. ·
Reliance Globalcom Services Inc. ·
YTV Inc. ·
Reliance Infocom Inc. ·
Reliance Communications Inc. ·
Reliance Communications International Inc. ·
Reliance Communications Canada Inc. ·
Bonn Investment Inc. ·
FLAG Telecom Development Limited ·
FLAG Telecom Development Services Company LLC ·
FLAG Telecom Network Services Limited ·
Reliance FLAG Telecom Ireland Limited ·
FLAG Telecom Japan Limited ·
FLAG Telecom Ireland Network Limited ·
FLAG Telecom Network USA Limited ·
FLAG Telecom Espana Network SAU ·
Reliance Vanco Group Limited ·
Euronet Spain SA ·
Net Direct SA (Properietary) Limited (Under
liquidation) ·
Vanco (Shanghai) Company Limited ·
Vanco (Asia Pacific) Pte. Limited ·
Vanco Australasia Pty. Limited ·
Vanco EpE ·
Vanco Sp Zoo ·
Vanco Euronet Sro (Under liquidation) ·
Vanco Gmbh ·
Vanco Japan KK ·
Vanco Net Direct Limited, Ireland (Struck off
w.e.f. April 8, 2011) ·
Vanco NV ·
Vanco SAS ·
Vanco South America Ltda ·
Vanco Srl ·
Vanco Sweden AB ·
Vanco Switzerland AG ·
Vanco Deutschland GmbH ·
Vanco BV ·
Vanco Benelux BV ·
Vanco UK Limited ·
Vanco International Limited ·
Vanco Row Limited ·
Vanco Global Limited ·
WANcom Gmbh ·
VNO Direct Limited ·
Vanco US LLC ·
Vanco Solutions Inc ·
Reliance WiMAX World BVI ·
Reliance WiMAX World BV ·
Reliance WiMAX World Limited ·
Reliance WiMAX World LLC ·
Reliance WiMAX Congo Brazzaville BV ·
Interconnect Brazzaville S. A. ·
Reliance WiMAX Guinea BV ·
Acess Guinea SARL ·
Reliance WiMAX Sierra Leone BV ·
Equatorial Communications Limited ·
Reliance WiMAX Cameroon BV ·
Equatorial Communications SARL ·
Reliance WiMax D.R.C. BV ·
Reliance WiMax Gambia BV ·
Reliance WiMax Mauritius BV ·
Reliance WiMax Mozambique BV ·
Reliance WiMax Niger BV ·
Reliance WiMax Zambia BV ·
Access Bissau LDA ·
Reliance Mobile Commerce Limited (w.e.f December
6, 2010) ·
Seoul Telenet Inc. (Board Control) ·
FLAG Holdings (Taiwan) Limited (Board Control) ·
Reliance Telecom Infrastructure (Cyprus) Holdings
Limited (Board Control) ·
Lagerwood Investments Limited (Board Control) ·
Flag Pacific Limited (Upto March 25, 2011) ·
Flag Web Limited (Upto March 25, 2011) ·
Flag Telecom Servizi Italia SpA (Upto January 21,
2011) ·
Flag Telecom Belgium Network SA (Upto March 29,
2011) ·
FLAG Telecom Taiwan Services Limited (Upto
October 18, 2010) ·
RCOM Malaysia SDN.BHD (Upto March 29, 2011) ·
Vanco Aps (Upto March 29, 2011) ·
Vanco Hongkong Solutions Limited (Upto March 29,
2011) ·
Yipes Systems Inc. (Upto March 25, 2011) ·
FLAG Access India Private Limited, India (Upto
March 23, 2011) ·
Vanco Net Direct Limited, UK (Upto March 29,
2011) ·
Matrix Innovations Limited (Upto April 1, 2010) ·
Reliance Global IDC Limited (Upto January 1,
2011) |
|
|
|
|
Associate: |
·
Warf Telecom International Private Limited ·
Mumbai Metro Transport Private Limited |
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|
|
|
Fellow Subsidiaries : |
·
Reliance Capital Limited ·
Reliance General Insurance Company Limited |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3000000000 |
Equity Share |
Rs.5/- each |
Rs.15000.000 millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2064026881 |
Equity Share |
Rs.5/- each |
Rs.10320.100 millions |
|
|
|
|
|
(1) Out of the above:
1,15,29,001 (Previous
year 1,15,29,001) Equity Shares are held by the Holding Company, Reliance
Innoventures Private Limited.
72,31,10,172
(Previous year 80,81,10,172) Equity Shares are held by AAA Communication
Private Limited.
30,00,00,000
(Previous year 25,00,00,000 ) Equity Shares are held by AAA Industries Private
Limited.
30,00,00,000
(Previous year 25,00,00,000 ) Equity Shares are held by ADA Enterprises and
Ventures Private Limited.
(2) Equity Shares
allotted in earlier years as fully paid up without payment being received in
cash.
(a) Pursuant to
demerger of Telecom Undertaking of Reliance Industries Limited into the Company
(b) Pursuant to
the Scheme of Amalgamation and Arrangement involving group companies.
|
(2)
Equity Shares allotted in earlier years as fully paid up without payment
being received in cash |
Number
of Shares |
|
Pursuant to demerger of Telecom Undertaking of Reliance
Industries Limited into the Company |
1,22,31,30,422
|
|
Pursuant
to the Scheme of Amalgamation and Arrangement involving group companies |
82,14,84,568
|
|
|
2,04,46,14,990 |
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 |
10320.100 |
10320.100 |
10320.100 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
471124.700 |
494668.800 |
506583.100 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
481444.800 |
504988.900 |
516903.200 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
152260.200 |
30000.000 |
30000.000 |
|
|
2] Unsecured Loans |
162267.200 |
214782.800 |
279036.100 |
|
|
TOTAL BORROWING |
314527.400 |
244782.800 |
309036.100 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
795972.200 |
749771.700 |
825939.300 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
288409.000 |
306124.800 |
314077.700 |
|
|
Capital work-in-progress |
99076.600 |
16835.200 |
36438.600 |
|
|
|
|
|
|
|
|
INVESTMENT |
321021.300 |
318986.000 |
313647.500 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
3061.100
|
2983.400
|
2531.400 |
|
|
Sundry Debtors |
19692.500
|
17386.300
|
14822.200 |
|
|
Cash & Bank Balances |
38132.100
|
821.800
|
5351.500 |
|
|
Other Current Assets |
21108.200
|
19287.200
|
19193.800 |
|
|
Loans & Advances |
109544.300
|
159580.700
|
213531.200 |
|
Total
Current Assets |
191538.200
|
200059.400
|
255430.100 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
18203.700 |
18175.200 |
14895.400 |
|
|
Other Current Liabilities |
57315.700
|
870190.100
|
42919.500 |
|
|
Provisions |
28553.500
|
33868.400
|
35839.700 |
|
Total
Current Liabilities |
104072.900
|
922233.700
|
93654.600 |
|
|
Net Current Assets |
87465.300
|
107825.700
|
161775.500 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
795972.200 |
749771.700 |
825939.300 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Service Revenue and Other Operating Income |
121297.700 |
122906.100 |
136105.800 |
|
|
|
Other Income |
4842.500 |
2211.100 |
840.800 |
|
|
|
TOTAL (A) |
126140.200 |
125117.200 |
136946.600 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Access Charges, Licence Fees and
Network Expenses |
93276.600 |
90176.400 |
70547.400 |
|
|
|
Payments to and Provisions for
Employees |
6080.700 |
6717.900 |
7583.600 |
|
|
|
Provision for Commission to Non
Executive Directors (net) |
0.000 |
6.000 |
(38.000) |
|
|
|
Sales and General Administration
Expenses |
17721.500 |
17310.100 |
22525.500 |
|
|
|
Stamp Duty paid on Demerger |
0.000 |
250.000 |
0.000 |
|
|
|
Amortisation/ (Write back) of Compensation under Employee
Stock Option Scheme |
(67.300) |
(66.500) |
74.700 |
|
|
|
Other Expenses |
0.000 |
0.000 |
(34673.000) |
|
|
|
TOTAL (B) |
117011.500 |
114393.900 |
66020.200 |
|
|
|
|
|
|
|
|
Less |
PROFIT/(LOSS)
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
9128.700 |
10723.300 |
70926.400 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1781.100 |
(10583.800) |
3440.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION
(C-D) (E) |
7347.600 |
21307.100 |
67485.800 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
15942.700 |
15112.400 |
19335.100 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) BEFORE TAX (E-F) (G) |
(8595.100) |
6194.700 |
48150.700 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(1015.200) |
1405.400 |
124.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) AFTER TAX (G-H) (I) |
(7579.900) |
4789.300 |
48026.700 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
6621.400 |
5027.500 |
43002.400 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transferred to Debenture Redemption Reserve |
0.000 |
749.600 |
69.800 |
|
|
|
Transferred to General Reserve III |
(2161.900) |
400.000 |
84000.000 |
|
|
|
Proposed Dividend on Equity Shares |
1032.000 |
1754.400 |
0.000 |
|
|
|
Interim Dividend on Equity Shares |
0.000 |
0.000 |
1651.200 |
|
|
|
Tax on Proposed/ Interim Dividend |
171.400 |
291.400 |
280.600 |
|
|
BALANCE CARRIED
TO THE B/S |
0.000 |
6621.400 |
5027.500 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
|
|
Long Distance Operations |
9321.900 |
8490.500 |
13128.900 |
|
|
|
Interest and Other Income |
2.800 |
0.900 |
806.500 |
|
|
TOTAL EARNINGS |
9324.700 |
8491.400 |
13935.400 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Capital Goods |
10954.300 |
2693.700 |
26637.200 |
|
|
|
Stores & Spares |
553.000 |
681.400 |
2397.600 |
|
|
TOTAL IMPORTS |
11507.300 |
3375.100 |
29034.800 |
|
|
|
|
|
|
|
|
|
|
Earnings/(Loss)
Per Share (Rs.) |
(3.67) |
2.32 |
23.27 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
31.03.2012 |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
28350.000 |
28430.000 |
27880.000 |
26450.000 |
|
Total Expenditure |
25430.000 |
25220.000 |
25220.000 |
11150.000 |
|
PBIDT (Excl OI) |
2920.000 |
3210.000 |
2660.000 |
15300.000 |
|
Other Income |
190.000 |
80.000 |
670.000 |
1950.00 |
|
Operating Profit |
3110.000 |
3290.000 |
3330.000 |
17250.000 |
|
Interest |
2110.000 |
370.000 |
1380.000 |
4150.000 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
1000.000 |
2920.000 |
1950.000 |
13100.000 |
|
Depreciation |
3720.000 |
3910.000 |
4720.000 |
5060.000 |
|
Profit Before Tax |
(2720.000) |
(990.000) |
(2770.000) |
8040.000 |
|
Tax |
0.000 |
0.000 |
0.000 |
0.000 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
(2720.000) |
(990.000) |
(2770.000) |
8040.000 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
(2720.000) |
(990.000) |
(2770.000) |
8040.000 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
(6.01)
|
3.83
|
35.07 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(7.09)
|
5.04
|
35.38 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(4.49)
|
3.10
|
18.85 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.02)
|
0.01
|
0.09 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.87
|
0.67
|
0.18 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.84
|
2.17
|
2.73 |
LOCAL AGENCY FURTHER INFORMATION
|
Check List by Info Agents |
Available in Report (Yes / No) |
|
1) Year of Establishment |
Yes |
|
2) Locality of the firm |
Yes |
|
3) Constitutions of the firm |
Yes |
|
4) Premises details |
No |
|
5) Type of Business |
Yes |
|
6) Line of Business• |
Yes |
|
7) Promoter’s background |
Yes |
|
8) No. of employees |
Yes |
|
9) Name of person contacted |
No |
|
10) Designation of contact person |
No |
|
11) Turnover of firm for last three years |
Yes |
|
12) Profitability for last three years |
Yes |
|
13) Reasons for variation <> 20% |
-- |
|
14) Estimation for coming financial year |
No |
|
15) Capital in the business |
Yes |
|
16) Details of sister concerns |
Yes |
|
17) Major suppliers |
No |
|
18) Major customers |
No |
|
19) Payments terms |
No |
|
20) Export / Import details (if applicable) |
No |
|
21) Market information |
-- |
|
22) Litigations that the firm / promoter |
-- |
|
23) Banking Details |
Yes |
|
24) Banking facility details |
Yes |
|
25) Conduct of the banking account |
-- |
|
26) Buyer visit details |
-- |
|
27) Financials, if provided |
Yes |
|
28) Incorporation details, if applicable |
Yes |
|
29) Last accounts filed at ROC |
Yes |
|
30) Major Shareholders, if available |
No |
Financial
Performance
During the year,
the Company has earned income of Rs. 126140.200 Millions against 125117.200
Millions in the previous year. The Company has incurred loss of 7579.900
Millions compared to profit after tax of 4789.300 Millions in the previous
year.
Business
Operations
The Company
operates on a pan-India basis and offers the full value chain of wireless (CDMA
and GSM including 3G services), wireline, national long distance,
international, voice, data, video, Direct-To-Home (DTH) and internet based
communications services under various business units organised into three
strategic customer-facing business segments; Wireless, Global and Broadband.
These strategic business units are supported by passive infrastructure
connected to nationwide backbone of Optic Fibre Network fully integrated
network operation system and by the largest retail distribution and customer
services facilities. The Company also owns through its subsidiaries, a global
submarine cable network infrastructure and offers managed services, managed
Ethernet and application delivery services.
During the year,
the Company along with its wholly owned subsidiary i.e; Reliance Telecom
Limited (RTL) have been awarded 3G spectrum in 13 out of 22 telecom circles, at
a price of 85,850 million. The Company is one among the only 3 operators who
won in 13 circles, the highest circle coverage for any existing player. The
Company won in all the 3 metros namely Mumbai, Delhi and Kolkata and also in
all those circles in which the Company has GSM incumbents.
On December 13,
2010, the Company became the first operator to offer 3G services to customers
in top 3 metro circles namely Mumbai, Delhi and Kolkata. The Company rolled-out
3G services, on trial basis, in a record time of 100 days of receiving 3G
spectrum in the above said metros, once again demonstrating all round execution
and innovation capabilities. The Company is in discussion with like-minded
operators to offer nation-wide 3G services to the subscribers. During the year,
the Company had crossed the landmark of 136 million wireless customers as on
March 31, 2011. The Company ranks among top two wireless operators in the
country.
Management Discussion and Analysis
Forward looking statements
Statements in this Management Discussion and Analysis of Financial Condition
and Results of Operations of the
Company describing the Company’s objectives, expectations or
predictions may be forward looking within the meaning of applicable securities
laws and regulations. Forward looking statements are based on certain assumptions
and expectations of future events.
The Company cannot guarantee that these assumptions and expectations
are accurate or will be realised. The Company assumes no responsibility to
publicly amend, modify or revise forward-looking statements, on the basis of
any subsequent developments, information or events. Actual results may differ
materially from those expressed in the statement. Important factors that could
influence the Company’s operations include interconnect usage charges,
determination of tariff and such other charges and levies by the regulatory
authority, changes in government regulations, tax laws, economic developments
within the country and such other factors globally.
The financial statements are prepared under historical cost convention,
on accrual basis of accounting, and in accordance with the provisions of the
Companies Act, 1956 (the Act) and comply with the Accounting Standards notified
under Section 211(3C) of the Act read with the Companies (Accounting Standards)
Rules, 2006. The management of Reliance Communications Limited has used
estimates and judgments relating to the financial statements on a prudent and
reasonable basis, in order that the financial statements reflect in a true and
fair manner, the state of affairs and loss for the year.
The following discussions on their financial condition and result of
operations should be read together with their audited consolidated financial
statements and the notes to these statements included in the Annual Report.
Unless otherwise specified or the context otherwise requires, all
Unless otherwise specified or the context otherwise requires, all references
herein to “they”, “than”, “their”, “the Company”, “Reliance”, “RCOM”, “RCOM
Group” or “Reliance Communications” are to Reliance Communications Limited and
its subsidiaries and associates.
Macro economics
The Indian economy
has emerged from the slowdown caused by the financial crises witnessed in FY
07-08 to register a growth of 8.6 per cent in FY 10-11. Service sector remains
the fastest growing sector in the economy with growth pegged at 8.9 per cent,
which is lagging only slightly behind China’s service sector growth of 10.5 per
cent. A look at the global service sector industry shows that India compares
well even with the top 12 developed countries which have the highest overall
GDP in the world. In terms of exports, India is moving towards a servicesled
export growth. In the first half of 2010-11, services exports grew 27.4 per
cent despite a dip caused by the global crisis which led to a fall in the
contribution of merchandise trade to GDP.
Service sector now
contributes 55.2 per cent of India’s GDP and has been growing in the range of
10 per cent annually. In terms of employment, although the primary sector is
the dominant employer followed by the services sector, the share of the
services sector has been increasing over the years.
The global
economic and financial crisis has had a dampening effect on cross border FDI
flows and in order to maintain earlier levels of foreign investment, it is
imperative to retain India’s competitiveness in this sector.
Overall review
RCOM is India’s
truly integrated and fully converged telecommunications service provider. They
operate across the full spectrum of wireless, wireline, voice, data, video and
internet communication services. They also have an extensive international
presence through the provision of long distance voice, data and internet
services and submarine cable network infrastructure globally. With a customer
base of over 142 million (including over 2.5 million overseas retail customers
and 3.5 million Reliance Digital TV customers) as on March 31, 2011, RCOM is
the world’s 4th largest wireless operator in terms of number of customers in a
single country. Their corporate clientele includes over 35,000 Indian and
multinational corporations including small and medium enterprises and over 800
global, regional and domestic carriers. Their enterprise customers include 850
of the top 1000 enterprises in India.
RCOM is India’s first
telecom service provider offering nationwide CDMA and GSM mobile services with
digital voice clarity. Reliance Communications has established a pan-India,
next generation, integrated (wireless and wireline), convergent (voice, data
and video) digital network that is capable of supporting best-of-class services
spanning the entire communications value chain, covering over 24,000 towns and
600,000 villages.
Their superior 3G
offering, coupled with Mobile Number Portability (MNP) and marquee partnerships
will further accelerate and the acquisition of high-end customers significantly
ramp up their ARPU.The high-speed 3G data offering will also add to their
undisputed leadership position in the wireless data space. Their mobile portal,
R World, offers the widest range of mobile content spanning e-commerce,
m-commerce, entertainment, music, news, astrology, cricket, bollywood, maps,
search, oneclick set-up, and access to email and social networking. In short,
it provides the full range of communication tools and infotainment that comes
with a personal computer, at the price and convenience of a handset.
RCOM owns and
operates the world’s largest next generation IP enabled connectivity
infrastructure, comprising over 277,000 route kilometers of fibre optic cable
systems in India, USA, Europe, Middle East and the Asia Pacific region. In
India, they provide long distance business services including wholesale voice,
bandwidth and infrastructure services. Globally, they provide carrier’s carrier
voice, carrier’s carrier bandwidth, enterprise data and consumer voice
services.
RCOM offers the
most comprehensive portfolio of enterprise voice, data, video, internet and IT
infrastructure services catering to large, medium and small enterprises for
their communications, networking and IT infrastructure needs. Their product
portfolio includes national and international private leased circuits, internet
access for Enterprises, SMBs and consumers, Voice solutions including PRI for
PBX, Centrex, toll free services, voice VPN, audio and video conferencing ,
MPLS-VPN, remote access VPN, Global MPLS VPN managed internet data centre
(“IDC”) services to name a few. RCOM has the world’s biggest Metro Ethernet
network which is now available in 180 cities with about 37,000 Metro Devices in
ring architecture thus enabling more than 1.1 million buildings to provide
reliable and scalable bandwidth Metro Ethernet solutions.
RCOM operates
nationwide Direct-to-Home satellite TV services under the aegis of its wholly
owned subsidiary, Reliance Big TV Limited (Reliance Digital TV). Reliance
Digital TV uses stateof- the-art MPEG4 technology to deliver over 250 channels
in HD like quality, including 11 exclusive movie channels, to its subscribers.
They deliver high definition content and digital voice quality to their viewers
on this platform to create a highly personalized video and theatre experience.
New Initiatives
RCOM redefines
industry benchmarks
Following the
success of its first three Simply Reliance Initiatives, they announced the extension
of Simply Reliance initiative another ground-breaking ‘Simply Unlimited CDMA’
Offer, as part of 100 Million Customers Milestone celebrations. ‘Simply
Unlimited CDMA’ packs offer unlimited free calls to any Reliance phone in India
(Reliance GSM, CDMA or Fixed Line) whether Local or National. The Pack also
offers Virtually Unlimited local or national long distance free calls to other
Networks in India.
Alliance with
Radio Netherlands Worldwide
RCOM signed an
agreement with Radio Netherlands Worldwide (RNW), an established player in news
and entertainment broadcasting for over 60 years. Under the agreement, R World
– the next generation mobile portal accessible to over 136 million Reliance 3G,
GSM and CDMA customers as on March 31, 2011, would offer 24/7 live streaming of
Radio Netherlands Worldwide and will showcase its RNW WAP news feed on R-World
which includes regularly updated international news.
Alliance with
GetJar Inc.
RCOM has formed a
strategic alliance with GetJar Inc., the world’s largest applications store, to
offer extensive catalog of over 65,000 free mobile applications. Reliance
Communication’s over 136 million subscribers will gain access to GetJar’s
massive library of applications via a GetJar apps store through RCOM’s VAS
platform R-World. GetJar will also enable RCOM to offer its Apps Store to a
large bandwidth of mobile handsets across multiple brands and not remain
restricted to a few high-end smartphones. Reliance Communications will offer
the GetJar Apps Store across to GSM and CDMA networks.
RCOM Launch Free
Website Package for all Netconnect Customers
In a significant
move towards vision of fostering the digital economy and enctheiraging
entrepreneurship, RCOM has announced the launch of free website package for all
their Netconnect users. The website package includes a domain name of user’s
choice, a user-friendly website builder with hosting and 10 business email
accounts at the chosen domain name. SMEs, SEPs and individuals can now have
their own website and attract newer customers even though they might not have
the technical know-how or restheirces to create and host one of theirs.
RCOM signs
agreement with Facebook in India
RCOM and Facebook announced
the launch of a new Facebook mobile app exclusively available for their
subscribers in India for a three months period. The new Facebook app for
Java-powered feature phones will be made available for most of the popular
handset models in India. Their customers who are also Facebook users can now
stay connected on their mobile phones without having to upgrade to a
smartphone. RCOM is the first and only operator in India to offer this
application. RCOM is providing a special promotional offer where all users can
enjoy this application free for three months without incurring any data
charges. Reliance is offering free access to download and use the app to its
subscribers for three months from the time of installation on their phone.
Launch of Braille
Bill Service
As part of its
strategy to drive leadership through innovations across its Wireless business,
Reliance Mobile has launched Braille Bill service. The Braille Bill service is
part of multiple innovative and reliable convenience options that Reliance
Mobile has introduced. This service is first-of-its kind initiative introduced
by an Indian telecom operator aiming to create an enabling and convenient
customer service environment for the visually impaired. The service is in line
with Reliance Group’s Corporate Social responsibility objectives.
Alliance with
Nokia
Reliance
Communications and Nokia India jointly announced a first-of-its-kind
multi-facet business alliance. The RCOM – Nokia alliance will aim to foster
greater use of mobile services, giving consumers an opportunity to get richer
experiences and explore more with their phones. The RCOM–Nokia partnership is
structured on a one-of-its-kind blue-print to engage with the Indian consumes
to offer an array of unmatched and innovative mobile, data and services
offerings in India.
The business
partnership with Nokia is in line with the multitude of innovations lined-up by
the two companies to take mobility to the next level. The alliance covers Ovi
Life Tools services targeted at the rural and semi-urban segments for Reliance
customers, exclusive offers on Ovi Music Unlimited (OMU) devices for faster
music downloads, an exclusive offer on Reliance Netconnect Broadband + USB
Datacards on the purchase of Nokia OMU enabled phones and special data packages
for Nokia GPRS phones.
Launch of Live
Chat Customer Service Initiative
Reliance
Communications has announced the launch of first-of its kind Customer Care
Initiative ‘Live Chat’. This Live Chat service will enable Reliance’s customers
with real-time query and issue handling through chat-based online platform.
Following the implementation of the service across the data business, RCOM
plans to extend the service to other business groups.
Alliance with
Microsoft
In addition to the
existing “Reliance Cloud Computing Services” which was launched by RCOM
Enterprise Business in partnership with Microsoft, now the partners, for the
first time in India also offer “Hosted Exchange 2010” solution to the customers
of RCOM. The service provides latest Microsoft email Platform to the customers
on “pay as you go” model, thus mitigating the risk of technology adoption.
Microsoft’s virtualisation and management technologies has helped us in
reducing the input costs involved in providing these services, thereby enabling
Reliance to pass on the cost benefits to the customers.
Alliance with
NetApps
RCOM and NetApps
have signed an agreement to launch cloud based “Storage as a Service”. The cloud
storage solution which launched along with NetApps include “Storage as a
Service (StaaS), disaster recovery as a service and data protection as a
service. These services are available on a “pay as you go” model. These
services will accelerate the use of storage infrastructure among their existing
and new enterprise customer and will provide a significant entry in to SMB
segment, which is a focus area for current year.
Reliance Infratel
Limited (RITL) new agreements signed
During the year
2010-11, RITL signed contracts with Bharti Airtel, Idea and Loop. Presently
RITL has contracts with all new and existing operators for providing passive
infrastructure which has been an effective strategy for their customers for
cost savings, improving quality of service. All these agreements are of long
term for around 10 to 15 years. These agreements will result in incremental
growth in the tenancy rates for RITL and thus,provide significant operating
leverage. BWA players are in the process of finalising their plans and they are
in discussion with the operators who
have won the spectrum in BWA auction.
Reliance Globalcom
new agreements signed
In the Carrier
Data segment, they signed total contract value of over 9500.000 Millions with
their existing customer base. They continued to be the preferred service
provider to leading global carriers, ISPs and content providers around the
world. As part of the constant process of cable system upgrade, they have
completed the upgrade of their FA1 cable system with capacity addition of 400
Gbps between Europe and USA across Trans Atlantic Link. Their Next Generation
cable “Hawk” in the Mediterranean between Middle East and Europe will be ready
for service in FY 2011-12 as there were delays due to disturbance in Egypt.
Reliance Globalcom
retail expansion
The global calling
card market is experiencing hyper competition. They have been able to maintain
their margins despite the introduction of aggresive competitive tariffs by
other Indian operators both in the US and UK markets. They have focused on
delivering more value to their existing base of over 2.5 million Reliance
Global Call customers through event-based campaigns.
They have also
expanded their network to Ireland, Spain, Austria, Belgium and Netherlands,
taking the total number to 16 countries, where Reliance Global Call is now
present.
They are now
engaging more closely with their customers in US, Canada, UK, Australia, New
Zealand, Singapore, Malaysia and promoting their brand across local communities
and events. This has been well received and will form the basis for the launch
of their new services “Reliance Mind Bridge”.
Enterprise
The Enterprise
service business continues to win big deals in the US, Europe and India. In
India, Enterprise business has signed contracts of over 8000.000 Millions and
added more than 100 new logos.
They are
empanelled as an ISP for the prestigious UID project. This strengthens their
commitment to provide seamless connectivity services for UID Enrolment Agencies,
across India. They remain preferred integrated solution provider for
Enterprises and Multinational companies in India and abroad.
They continue to
bringing in leading edge services like Application Aware networking, Managed
Security services and Cloud based services like Managed Storage, Software as a
Service for their Customers.
Home / DTH
They have launched
India’s fully Digital Home Entertainment Service on the world’s most advanced
MPEG4 Direct-To-Home (DTH) Platform. They have launched the stand alone HD STB,
offering the most comprehensive product line up inclusive of SD, HD and HD DVR
STB. They are the first one to offer all 250 channels in HD like quality, as
compared to a few channels offered by their competitors. The DTH industry in
India added 11 million subscribers in Financial Year 2010-11. They are one of
the six players in the industry, with a market share of 11 per cent. They are
today present across 8,100 towns with a pan-India service and installation
network. The brand name underwent a major change over from Reliance Big TV to
Reliance Digital TV, enhancing the overall brand value.
Industry Structure
and Regulatory Developments
Industry Structure
Wireless
The Indian telecom
sector continues to demonstrate strong growth in spite of sluggishness in the
global economic environment. The number of telephone subscribers in India
increased to 846.32 Million at the end of March 2011 Wireless and Wireline) as
against 621.28 million as on March 2010. Wireless subscribers reached 811.59
million in March 2011 as compared to 584.32 million in March 2010 and wireless
teledensity stood at 67.98 per cent as compared to 49.60 per cent in last year.
The share of
private sector in wireless connections touched 88.01 per cent as on March 31,
2011.
The year witnessed
further dramatic drop in telecom tariffs. With the launch of services by
several new operators in the year, the total number of operators in the market
now stands at 15.
The competition
caused a further shift with operators increasing footprints in rural areas and
focusing on increased value-added and data services to subscribers in the
saturated urban markets.
Internet and
Broadband
Internet
subscribers in India grew moderately to 17.90 million and broadband subscribers
to 11.87 million as on March 31, 2011.
Telecom
Infrastructure
The demand for
Telecom infrastructure in India is driven by the robust growth in the mobile
Industry. Also, the need for telecom infrastructure is necessitated by the
focus on growth in the rural areas for increasing coverage in new markets by
mobile operators.
During the last 2
years, wireless subscriber base growth has led to significant increase in
demand for towers space. Tower industry has seen an accelerated growth rate
of22 per cent in last 2 years. This growth was supported by network expansion
by existing operators, entry of new operators, and favourable regulatory
framework for tower sharing. 2G network rollout during next year (2011-12) is expected
to be in line with rollout during 2010-11 with operators completing their
network coverage. New operators are expected to expand their network footprint
while incumbent players will add network capacity, with some additional
coverage.
In Financial year
2010-11, 3G and BWA auctions were completed by the Government, leading to
additional demand for towers.
3G: RCOM along with RTL won 13 out of 22 circles at price of 85850.400
Millions. RCOM was among the only 3 operators, who won 13 circles, the highest
circle coverage for any existing player including 3 metros (Mumbai, Delhi and
Kolkata). Other operators who won the, 3G licenses are Aircel (13 Circles),
Bharti Airtel (13 circles), Idea (11 Circles) Vodafone (9 Circles), TATA (9
Circles), S-Tel (3 Circles).
BWA: The operators, who
got BWA licenses are Aircel (8 Circles), Tikona (5 Circles), Bharti Airtel (4
Circles), Qualcomm (4 Circles), Augere
(1 Circle) and Infotel (Pan India)
Global
Their global business
participates in diverse industry segments, viz.
(i) global
submarine capacity sales;
(ii) gateways
facility for international traffics;
(iii) national
long distance for voice and data;
(iv) international
voice transit;
(v) international
retail voice;
(vi) enterprise
connectivity and managed services business.
A market leader
across different segments, they have the largest private submarine cable in the
world and the largest NLD network in India. They have moved up to become one of
the top 15 Voice Traffic Carriers in the world. They are No.1 International
voice carrier in India and have established a strong retail brand in the US.
Their global
business operates a service delivery platform for internet, data, voice and
multimedia communications and is particularly strong in the fast growing
emerging markets of India, China and the Middle East. They have also achieved
leadership positions in the developed markets of the US, UK, Western Europe,
Australia and Singapore. They are uniquely positioned to provide complete
end-to-end solution through their diverse bestin- class product range.
Industry Trends
Sustained High
Growth
India continues to
be the fastest growing telecom market in the world in terms of the total number
of new subscriber additions. This exponential growth phase is expected to last
for few more years before the rate of growth starts leveling off.
3G
3G services are
finally surfacing on the Indian telecom horizon, giving way to 5 MHz of extra
spectrum to 9 successful operators which will help in improving the
inconsistent voice network and additionally provide a plethora of data
applications like live mobile TV, video calling, video and music streaming,
video conferencing, and much more. No operator won Pan India spectrum, Reliance
is amongstthe highest to bag 13 circles, including 3 metro circles.
Mobile Number
Portability (MNP)
As far as MNP is
concerned, with 15 operators in the market, and now with the integration of 3G,
there is enough choice for customers in terms of choosing a quality network
provider. Dynamics like MNP will kick in and will further challenge the life
cycle of the consumers. Operators will have to focus on better segmentation of
market and retention of existing base.
Innovations in
internet technology
Innovations in
internet technology will have a material impact on the mobile communications
industry.
Rural Penetration
Rural coverage
remains one of the key parameters for the growth of wireless business. The
growth of rural subscription is higher than urban subscription and share of
rural subscriber stands at 31.05 per cent.
Infrastructure
sharing
There will be a
greater potential for tower sharing / outsourcing model with the entry of new
telecom players into India and also due to the advent of 3G and WiMax.
Competition
There will be
fierce competition among existing and new telecom operators, leading to
substantial benefits for the
subscribers.
BWA
Newer Access
technologies like BWA and 3G can significantly transform the character of
internet/broadband scenario in India, opening new opportunity for us.
Outlook
Telecom - Pivotal
for future growth:
Telecommunication,
as an infrastructure, is a major key pivot to the socio-economic development.
The global telecommunication industry is witnessing a fundamental change. It
was voice segment that was dominant key driver of money earner to the
operators, which also led equipment manufactures to concentrate on
voice-enabled devices. Now, voice is shifting to a backseat, while data and
video are emerging the core focus areas. A new network standard aims at faster
data connectivity, quick video streaming with high resolution, and rich
multimedia
applications. They
at RCOM are vibrant to this shift.
Telecom as a
Catalyst:
The telecommunications
is one of the main catalyst of the accelerated growth and progress of different
segments of the economy by narrowing access gaps and removing barriers to
information. Their enhanced Network capabilities and global footprint makes us
preferred carrier choice amongst other players.
Broadband
penetration:
India is catching
up other Asia-pacific peers in terms of broadband penetration. At 6 per cent,
India’s household (fixedline and wireless) broadband penetration is among the
lowest in the Asia-Pacific. This is mainly due to low personal computer
penetration and a lack of 3G and BWA services.With the launch of 3G services,
wireless broadband penetration is expected to increase. In August 2010, TRAI
set a household penetration target rate of 30 per cent by end-2012 and 60 per
cent by end-2014. The uptake of wireless broadband will depend on 3G/ BWA
handset penetration and 3G/ BWA tariff plans.
Contingent
Liabilities and Capital Commitment (As represented by the Management)
|
Particulars |
31.03.2011 (Rs.
in millions) |
|
1. Estimated amount of contracts remaining to be executed
on capital accounts (net of advances) and not provided for |
3567.800 |
|
2. Disputed Liabilities in Appeal |
124.800 |
|
- Sales Tax and VAT |
20.800 |
|
- Excise
and Service Tax |
233.000 |
|
-
Entry Tax and Octroi |
271.900 |
|
-
Other Litigations |
1604.000 |
|
3.
Guarantees given by the Company on behalf of its Subsidiaries |
11161.400 |
|
4. Guarantees given by the Company
on behalf of other companies for business purpose |
|
|
|
4206.400 |
FIXED ASSETS
- Buildings
- Plant and Machinery
- Furniture and Fixtures
- Vehicles
- Indefeasible Rights of Connectivity (IRC)
- Software
- Brand
Licence
- Telecom
Licences
PRESS RELEASES
Mumbai; June 13,
2012:
On April 10, 2012,
Reliance Communications (the “Company”)
announced that it was evaluating a potential initial public offering and
listing in Singapore of its subsea telecommunications infrastructure network
business, through a Singapore business trust. On June 12, 2012, the Singapore
Exchange Securities Trading Limited has granted an “eligibility to list” to the
business trust subject to the requisite conditions being satisfied. The Company
will provide subsequent updates to the stock exchanges in due course.
About Reliance
Communications Limited:
Reliance Communications Limited founded by the late Shri Dhirubhai H
Ambani (1932-2002) is the flagship company of the Reliance Group. The Reliance
Group currently has a net worth in excess of Rs. 890000.000 Millions (US$ 19.7
billion), cash flows of Rs.109000.000 Millions (US$ 2.8 billion), net profit of
Rs. 36000.000 Millions (US$ 0.8 billion).
Reliance Communications is India's foremost and truly integrated
telecommunications service provider. The Company, with a customer base of over
161 million including over 2.5 million individual overseas retail customers,
ranks among the Top 4 Telecom companies in the world by number of customers in a
single country. Reliance Communications corporate clientele includes 35,000
Indian and multinational corporations, and over 800 global, regional and
domestic carriers.
Reliance Communications has established a pan-India, next generation,
integrated (wireless and wireline),convergent (voice, data and video) digital
network that is capable of supporting best-of-classservices spanning the entire
communications value chain, covering over 24,000 towns and 600,000 villages.
Reliance Communications owns and operates the world's largest next
generation IP enabled connectivity infrastructure, comprising over 277,000
kilometers of fibre optic cable systems in India, USA, Europe, Middle East and
the Asia Pacific region.
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.56.30 |
|
|
1 |
Rs.88.06 |
|
Euro |
1 |
Rs.70.90 |
INFORMATION DETAILS
|
Report Prepared
by : |
KVT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
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 |
4 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
4 |
|
--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 |
YE |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
42 |
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.