MIRA INFORM REPORT

 

 

Report Date :

22.11.2012

 

 

IDENTIFICATION DETAILS

 

Name :

RELIANCE TELECOM LIMITED

 

 

Registered Office :

H Block, 1st Floor, A Wing, Dhurubhai Ambani Knowledge City, Koparkhairane, Navi Mumbai – 400710, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

01.03.1994

 

 

Com. Reg. No.:

11-162841

 

 

Capital Investment / Paid-up Capital :

Rs.800.000 Millions

 

 

CIN No.:

[Company Identification No.]

U32100MH1994PLC162841

 

 

PAN No.:

[Permanent Account No.]

AAACR2658E

 

 

Legal Form :

A closely held Public Limited Liability Company

 

 

Line of Business :

To Provide Cellular Mobile Telephone Services.

 

 

No. of Employees :

Not divulged by the management.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (46)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a part of Reliance ADA Group Company. The latest financials of the company are not made available.

 

As per previous year’s record, there appears some accumulated losses recorded by the company. It had incurred losses out of its operations.

 

However, trade relations are reported as decent. Business is active. Payments are reported to be usually correct and as per commitment.

 

In view of strong holding, the company can be considered normal for business dealings at usual trade terms and conditions.

 

Note: Reliance Communications Maharashtra Private Limited (RCMPL) was merged into the subject company which was made effective from 25th May, 2011.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

INDIAN ECONOMIC OVERVIEW

 

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

 

INFORMATION DECLINED BY

 

Management Non Co-Operative

 

LOCATIONS

 

Registered Office :

H Block, 1st Floor, A Wing, Dhurubhai Ambani Knowledge City, Koparkhairane, Navi Mumbai – 400710, Maharashtra, India

Tel. No.:

91-22-30386286

Fax No.:

91-22-30376622

E-mail :

htoprani@leelalace.com

hitesh.chawda@relianceada.com

Location :

Owned

 

 

Head Office :

“E” Block, 1st Floor, Dhirubhai Ambani Knowledge City, Opp. Koparkhairana Railway Station, Thane Belapur Road, Navi Mumbai

Tel. No.:

91-22-3037333/ 27624000

Fax No. :

91-22-30376622

 

 

Administrative Office   :

172/2 Premchand House Annexe, Ground Floor, Opp. High Court Way, Ashram Road, Ahmedabad – 380 009, Gujarat, India

Tel. No.:

91-79- 30331000, 30331011, 30331012

Fax No. :

91-79-26586132, 30331623

E-Mail:

Subodh.saxena@relianceinfo.com

Website:

http://www.ril.com

 

 

Branches :

3rd Floor, Maker Chambers – IV, 222, Nariman Point, Mumbai – 400 021, Maharashtra, India

Tel. No.:

91 – 22 – 284 2929

 

 

DIRECTORS

 

As on 29.09.2012

 

Name :

Mr. Gautam Bhailal Doshi

Designation :

Director

Address :

B-131,Grand Paradi, August Kranti Marg, Mumbai – 400036, Maharashtra, India

Date of Birth/Age :

23.12.1952

Date of Appointment :

30.01.2007

DIN No.:

00004612

 

 

Name :

Mr. Sateesh Seth

Designation :

Director

Address :

4th Floor, Summer Villa,, 7th Road, Santacruz (East), Mumbai – 400055, Maharashtra, India

Date of Birth/Age :

13.08.1955

Date of Appointment :

11.04.1997

DIN No.:

00004631

 

 

Name :

Mr. Prakash Shenoy

Designation :

Director

Address :

Flat No.104, Fortuna B, Lodha Paradise, Near Majiwada Flyover, Eastern Express Highway, Thane (West), Mumbai – 400601, Maharashtra, In

Date of Birth/Age :

01.05.1973

Date of Appointment :

28.05.2011

DIN No.:

00005394

 

 

KEY EXECUTIVES

 

Name :

Mr. Gaurang Chhotalal Shah

Designation :

Secretary

Address :

Flat No. 204, A Wing, Raj Vaibhav-1, Mahavir Nagar, Kandivali (West), Mumbai – 400067, Maharashtra, India

Date of Birth/Age :

13.12.1961

Date of Appointment :

01.09.2004

Pan No.

AAIPS5292A

 

 

Name :

Mr. Viraj Hemchand Karani

Designation :

Manager

Address :

E Room No.24, Kanjur Estate, Near Railway Station, Kanjurmarg (West), Behind Sainath Hotel, Mumbai – 400078, Maharashtra, India

Date of Birth/Age :

18.06.1985

Date of Appointment :

13.03.2011

Pan No.

BAYPK1278F

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 29.09.2012

 

Names of Shareholders (Equity Shares)

 

No. of Shares

Reliance Infocomm Infrastructure Private Limited, India

 

7419900

Prakash Shenoy Jointly with Reliance Communications Limited, India

 

1

Anil C. Shah Jointly with Reliance Communications Limited, India

 

1

Gaurang C. Shah Jointly with Reliance Communications Limited, India

 

1

Hasit Shukla Jointly with Reliance Communications Limited, India

 

1

Hitesh Chawda Jointly with Reliance Communications Limited, India

 

1

Reliance Communications Limited, India

 

27580095

Total

 

35000000

 

 

Names of Shareholders (Preference Shares)

 

No. of Shares

Reliance Communications Limited, India

 

45000000

Total

 

45000000

 

 

As on 29.09.2012

Equity Share Break up (Percentage of Total Equity)

 

Category

Percentage

Bodies corporate

100.00

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

To Provide Cellular Mobile Telephone Services.

 

 

GENERAL INFORMATION

 

No. of Employees :

Not divulged by the management.

 

 

Bankers :

Axis Trustee Services Limited, Axis House, 2nd Floor, Bombay Dyeing Mills Compound, Pandurang Budhkar Marg, Worli, Mumbai - 400025, Maharashtra, India

 

 

Facilities :

(Rs. In Millions)

Secured Loan

As on

31.03.2011

As on

31.03.2010

Rupee Term Loans Banks Secured

4464.900

0.000

Total

4464.900

0.000

 

Note:

(A) Includes following Long Term Loan from Banks: Term Loan from Banks – Rs.100.000 millions; Term Loan from Banks - COFACE – Rs.4364.900 millions; (Repayable within one year Rs. 305.400 millions)

[Note: The Company has created first pari passu charge on present and future Plant and Machinery, Capital Work in Progress (pertaining to movable fixed assets) of the RCOM Group comprising of the Company, Reliance Communications Limited (RCOM), Holding Company and its fellow subsidiaries namely Reliance Infratel Limited (RITL) and Reliance Communications Infrastructure Limited (RCIL )including all the rights, title, interest, benefits, claims and demands under of all insurance contracts of RCOM Group entered in relation to the assets described above. Apart from the above, the Company, in favour of Lenders of the Secured Loans, has also assigned 8 Telecom Licenses for services under Unified Access Services (UAS), by execution of Tripartite Agreements with Department of Telecommunications (DoT) and IDBI Bank, being the agent acting on behalf of the lenders.]

 

Unsecured Loan

As on

31.03.2011

As on

31.03.2010

Debts Bonds Other Instruments

18000.000

18000.000

Rupee Term Loans Bank Unsecured

3000.000

3472.000

Working Capital Loans Banks Unsecured

478.200

4483.100

Other Debt Unsecured

14912.400

35710.800

Total

36390.600

61665.900

 

Note:

(A) Represents Application money for Zero Coupon Optionally Fully Convertible Debentures

(B) Represents Application money for Zero Coupon Optionally Fully Convertible Debentures

(C) Represents Short Term Loan from Bank

(D) Represents Long Term Loan from Banks - COFACE (Repayable within one year Rs. 94.100 millions) [Note: Long Term Loans from Bank (COFACE ) has been secured during the year (w.e.f 4th March 2011) due to change in terms and condition of the loan. Necessary charge has been created accordingly.]

(E) Represents buyers credit

(F) Represents buyers credit

(G) Consists of following: Short Term Loans from Holding Company – Rs. 14691.100 millions; Short Term Loans from Fellow Subsidiary Company – Rs. 221.300 millions [The above includes due to Reliance Tech Services Private Limited Rs. 221.300 millions (Maximum outstanding during the year Rs. 221.300 millions) ]

(H) Consists of following: Short Term Loans from Holding Company – Rs. 35710.800 millions.

 

 

 

Banking Relations :

--

 

 

Auditors 1:

 

Name :

Chaturvedi and Shah

Chartered Accountant

Address :

714-715, Tulsiani Chambers, 212, Nariman Point, Mumbai – 400021, Maharashtra, India

PAN.:

AAAFC0662N

 

 

Auditors 2:

 

Name :

Price Waterhouse

Chartered Accountant

Address :

252, Veer Savarkar Marg, Shivaji Park, Dadar, Mumbai 400028, Maharashtra, India

PAN.:

AABCP9181H

 

 

Ultimate Holding Company:

Reliance Innoventure Private Limited (RIPL)

 

 

Holding Company:

Reliance Communications Limited (RCOM)

 

 

 Fellow Subsidiary :

·         Reliance Communications Infrastructure Limited (RCIL)

·         Reliance Infratel Limited (RITL)

·         Reliance Tech Services Private Limited (RTSL)

·         Matrix Innovations Limited (Matrix) (Merged with RCIL w.e.f. 01.04.2010)

·         Netizen Rajasthan Limited (NRL)

·         Reliance Communications Invesment and Leasing Limited (RCIIL)

·         Reliance Webstore Limited (RWSL)

·         Reliance Global IDC Limited (RGIDC)

 

 

CAPITAL STRUCTURE

 

As on 31.03.2011

 

Authorised Capital :

No. of Shares

Type

Value

Amount

120000000

Equity Shares

Rs.10/- each

Rs.1200.000 Millions

100000000

Preference Shares

Rs.10/- each

Rs.1000.000 Millions

280000000

Unclassified Shares

Rs.10/- each

Rs.2800.000 Millions

 

Total

 

Rs.5000.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

35000000

Equity Shares

Rs.10/- each

Rs.350.000 Millions

45000000

1% Non Convertible Non Cumulative Preference Shares

Rs.10/- each

Rs.450.000 Millions

 

Total

 

Rs.800.00 Millions

 

Note:

 

a)       Reliance Communications Limited (Holding Co) and its nominee holds 2 75 80 100 (78.80%) Equity Shares of Rs.10/- each.

      Reliance Infocomm Infrastructure Private Limited, a subsidiary of Reliance Communications Limited,

      holds 74 19 900 (21.20%) Equity Shares of Rs.10 each.

 

b)       Preference Shares are redeemable

 

i)                     At any time after the expiry of 6 months from the date of allotment (i.e. 3rd March, 2003 )and before the expiry of 20 years from the date of allotment, at a face value of Rs.10/- each by one month notice from Preference shareholders; or

 

ii)                   On the expiry of 20 years from the date of allotment at a price of Rs.100/- per share (including Rs.90/- premium per share), in case above option is not exercised.

 

 


 

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

800.000

800.000

800.000

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

2000.000

2000.000

2000.000

4] (Accumulated Losses)

(3251.700)

(1072.600)

(611.300)

NETWORTH

(451.700)

1727.400

2188.700

LOAN FUNDS

 

 

 

1] Secured Loans

4464.900

0.000

0.000

2] Unsecured Loans

36390.600

61665.900

100509.000

TOTAL BORROWING

40855.500

61665.900

100509.000

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

40403.800

63393.300

102697.700

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

20214.700

16809.700

17658.900

Capital work-in-progress

27004.000

11710.900

12147.900

 

 

 

 

INVESTMENT

0.000

29524.100

78458.400

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

110.900
136.800

164.700

 

Sundry Debtors

794.600
1045.000

737.900

 

Cash & Bank Balances

162.900
1192.500

3141.700

 

Other Current Assets

0.000

0.000

0.000

 

Loans & Advances

20702.700

15076.700

3674.900

Total Current Assets

21771.100
17451.000

7719.200

Less : CURRENT LIABILITIES & PROVISIONS

 
 

 

 

Sundry Creditors

26330.400
9793.900
10690.000

 

Other Current Liabilities

2199.900
2230.000

2538.400

 

Provisions

55.700
78.500

58.300

Total Current Liabilities

28586.000
12102.400

13286.700

Net Current Assets

(6814.900)
5348.600

(5567.500)

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

40403.800

63393.300

102697.700

 


PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2011

31.03.2010

31.03.2009

 

SALES

 

 

 

 

 

Income

23461.600

20739.400

17270.900

 

 

Other Income

422.200

2055.300

3237.400

 

 

TOTAL                                     (A)

23883.800

22794.700

20508.300

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Access Charges and License Fees

9838.000

7192.900

5526.300

 

 

Network Operation expenses

11130.400

10289.700

7151.600

 

 

Sales and Marketing expenses

1573.800

829.700

980.200

 

 

Employee Related Expenses

397.800

506.000

825.100

 

 

General and Administrative expenses

 

 

 

 

 

Administrative expenses

213.700

317.400

595.700

 

 

Foreign Exchange (Gain)/ Loss on Debtors / Creditors (Net)

(51.200)

(506.900)

(220.000)

 

 

TOTAL                                     (B)

23102.500

18628.800

15076.700

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

781.300

41.65.900

5431.600

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

492.200

1168.700

3238.800

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

289.100

2997.200

2192.800

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

3178.600

1890.800

3874.300

 

 

 

 

 

Add

Adjustments Pursuant to Scheme of Arrangement

0.000

0.000

0.000

Less

Losses on account of change in exchange rate relating to loans/ Liabilities

0.000

0.000

3201.800

 

Amount withdrawn from General Reserve

0.000

0.000

3201.800

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

(2889.500)

1106.400

(1681.500)

 

 

 

 

 

Less

TAX                                                                  (I)

(710.500)

773.600

61.400

 

 

 

 

 

 

PROFIT AFTER TAX (G-I)                                  (J)

(2179.000)

332.800

(1742.900)

 

 

 

 

 

Add

ADJUSTMENT RELATED MERGER ACQUISITIONS

(0.100)

0.000

0.000

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

(1072.600)

(1405.400)

337.500

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

(3251.700)

(1072.600)

(1405.400)

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

241.800

132.000

42.500

 

TOTAL EARNINGS

241.800

132.000

42.500

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Stores & Spares

NA

0.000

50.700

 

 

Capital Goods

NA

331.600

940.200

 

TOTAL IMPORTS

NA

331.600

990.900

 

 

 

 

 

 

Earnings Per Share (Rs.)

(62.26)

9.51

(4.80)

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

PAT / Total Income

(%)

(9.12)
1.46

(8.50)

 

 

 
 

 

Net Profit Margin

(PBT/Sales)

(%)

(12.31)
5.33

(8.20)

 

 

 
 

 

Return on Total Assets

(PBT/Total Assets}

(%)

(6.88)
3.23

(6.63)

 

 

 
 

 

Return on Investment (ROI)

(PBT/Networth)

 

6.39
0.64

0.77

 

 

 
 

 

Debt Equity Ratio

(Total Liability/Networth)

 

(153.73)
42.70

51.99

 

 

 
 

 

Current Ratio

(Current Asset/Current Liability)

 

0.76
1.44

0.58

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

DETAILS OF SUNDRY CREDITORS:

(Rs. in millions)

Particulars

31.03.2011

31.03.2010

31.03.2009

Sundry Creditors - Micro and Small Enterprises

410.900

121.000

227.900

Sundry Creditors - Others

25919.500

9672.900

10462.100

Total

26330.400
9793.900

10690.000

 

 

Sr. No.

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

No

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 involved in

----------------------

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

Yes

31]

Date of Birth of Proprietor/Partner/Director, if available

Yes

32]

PAN of Proprietor/Partner/Director, if available

No

33]

Voter ID No of Proprietor/Partner/Director, if available

No

34]

External Agency Rating, if available

No

 

NOTE:

 The registered office address of the company has been shifted from Main Admn Building Block No. GF-1 Village – Meghpar/Padana, Lalpur, Jamnagar – 361280, Gujarat, India to the present address w.e.f. 01.05.2006.

 

FINANCIAL CONDITION AND RESULTS OF OPERATIONS:

During the year, net billing revenue of the Company increased to Rs. 23460 millions, signifying a growth of 13% over the corresponding amount of Rs. 20740 millions during the previous year.

 

Operating profit for the year amounted to Rs. 780 millions, after charging off of Rs. 8630 millions of Passive Infrastructure charges to Infrastructure Service Providers as compared to Rs. 7610 milions during the corresponding previous year.

 

Increase in Operating Expenses are mainly on account of passive infrastructure charges, Interconnect usage Charges, Content charges, Dealer Commission etc.

 

Financial charges reduced, from Rs. 1170 millions in the corresponding previous year, to Rs. 490 millions during the year. The Company’s borrowings amounted to Rs. 40860 millions (previous year Rs. 6167 millions). The Company’s outstanding, on account of buyer’s credit, term loan etc. from various institutions, decreased from Rs. 7960 millions as at the end of the corresponding previous year to Rs. 7940 millions as at 31st March, 2011.

 

Depreciation/ amortisation charge for the year (other than passive assets) amounted to Rs. 3180 millions as compared to Rs. 1890 millions (net of adjustment of Rs. 790 millions against General Reserve) for the corresponding previous year.

 

The Company has, during the year, entered into various contracts in the area of telecommunication business. While benefits from such contracts will accrue in the future years, the Board of Directors shall periodically review their progress.

 

 

SCHEME OF AMALGAMATION:

 

i. In terms of the Scheme of Amalgamation (“the Scheme”) filed under Sections 391 to 394 of the Companies Act, 1956, and duly sanctioned by Hon’ble High Court of Bombay with Appointed date of 1st April, 2010, Reliance Communications Maharashtra Private Limited (RCMPL) (“Transferor Company”), which became a subsidiary of the Company during the year, has been amalgamated into the Company as per the Scheme. High Court order has been filed with Registrar of Companies (ROC) on 25th May, 2011.

 

ii. Investment of the Company in Equity Share Capital of Rs/0.100 Million in RCMPL has been cancelled and all Assets and Liabilities as appearing in the books of RCMPL are recorded in the books of the Company at their respective book value as at 1st April, 2010 and the excess of the Net Assets of Rs.0.100 Million is charged to Profit and Loss Account of the Company.

 

 

CONTINGENT LIABILITIES

Rs. In Millions

Particular

31.03.2011

31.03.2010

Bonds executed in favour of Government authorities

571.700

571.700

Claims against the Company not acknowledged as debts*

865.300

289.100

Bank Guarantee

--

5050.000

 

* This represents demand received from Sales Tax / Service Tax / Entry Tax authorities in various States, which are pending before the Appellate Authorities / Tribunal / High Court and the stay orders are granted against the demands. The Company is confident that the claims will be successfully contested.

 

The Company has deposited Rs.82.000 Millions (Previous year Rs.65.700 Millions) under protest with the Sales tax / Service Tax / Entry Tax authorities against the demand. Deposit amount is included in Loans and Advances.

 

The Company accounts for its liabilities in respect of Licence Fees payable by way of Revenue Share to be computed on the Gross Revenue of the Company after taking into account the decision of TDSAT dated 30th August, 2007 and 7th May, 2010 specifying that revenues not related to UAS and Other Licences under which the Company operates are not to be included in the computation of Revenue Share. The decision of the TDSAT is the subject matter of Appeal pending before the Supreme Court. No provision is considered necessary in this regard.

 

 

BANKERS CHARGES REPORT AS PER REGISTRY

 

Corporate identity number of the company

U32100MH1994PLC162841

Name of the company

RELIANCE TELECOM LIMITED

Address of the registered office or of the principal place of  business in India of the company

H Block, 1st Floor, A Wing, Dhurubhai Ambani Knowledge City, Koparkhairane, Navi Mumbai – 400710, Maharashtra, India

hitesh.chawda@relianceada.com

This form is for

Creation of charge

Type of charge

Movable property (not being pledge)

Particular of charge holder

Axis Trustee Services Limited, Axis House, 2nd Floor, Bombay Dyeing Mills Compound, Pandurang Budhkar Marg, Worli, Mumbai - 400025, Maharashtra, India

 debenturetrustee@axistrustee.com

Nature of instrument creating charge

Unattested Memorandum of Hypothecation dated 16th October, 2012 executed by Reliance Communications Limited, Reliance Communications Infrastructure Limited, Reliance Infratel Limited and Reliance Telecom Limited, the Chargors in favour of Axis Trustee Services Limited acting as the Security Trustee for Rupees Loan Facility of Rs.3000.000 Millions sanctioned by State Bank of India.

Date of instrument Creating the charge

16.10.2012

Amount secured by the charge

Rs.3000.000 Millions

Brief of the principal terms an conditions and extent and operation of the charge

Rate of Interest

13.5%

 

Terms of Repayment

As per sanction letter

 

Extent and Operation of the charge

Second pari-passu charge on Chargers (Reliance Communications Limited; Reliance Telecom limited; Reliance Communications Infrastructure Limited; Reliance Infratel Limited) assets

Short particulars of the property or asset(s) charged (including complete address and location of the property)

All and singular of the whole of the Chargors present and future moveable plant and machinery including tower assets and optic fibre cables and capital work in progress

 

 

FIXED ASSETS:

 

·         Building

·         Plant and Machinery

·         Equipments

·         Furniture and Fixtures

·         Vehicles

 

 

 


CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

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 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.55.20

UK Pound

1

Rs.87.79

Euro

1

Rs.70.43

 

 

INFORMATION DETAILS

 

Information Gathered by :

SVA

 

 

Report Prepared by :

NTH

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

4

--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

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

46

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 


 

RATING EXPLANATIONS

 

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

-

NB

                                       New Business

-

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.