MIRA
INFORM REPORT
|
Report Date : |
22.08.2013 |
IDENTIFICATION DETAILS
|
Name : |
TATA TELESERVICES ( |
|
|
|
|
Formerly Known
As : |
HUGHES TELECOM ( |
|
|
|
|
Registered Office
: |
Voltas Premises, T. B. Kadam Marg, Chinchpokli, Mumbai –
400033, |
|
|
|
|
Country : |
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|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
13.03.1995 |
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|
|
|
Com. Reg. No.: |
11-086354 |
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|
|
|
Capital
Investment / Paid-up Capital : |
Rs.18972.000 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L64200MH1995PLC086354 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMH00331C |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACH1458C |
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|
|
Legal Form : |
A Public Limited Liability Company. Company’s Shares are Listed on the Stock Exchanges. |
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|
|
|
Line of Business
: |
The company is engaged in providing Telecommunication Services. |
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|
|
|
No. of Employees
: |
1458 (Approximately) |
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 |
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|
|
|
Litigation : |
Clear |
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|
|
Comments : |
Subject is a part of Tata Group and is an established company having a
satisfactory track record. There appear accumulated losses recorded by the company which has
increased due to loss recorded by company in 2012. However, subject gets better financial and operational support from
its group. Trade relations are fair. Business is active. Payment terms are
usually correct. The company can be considered for business dealings at usual trade
terms and condition. |
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
We are living in a
world where volatility and uncertainty have become the New Normal. We saw
a change of government in countries like Tunisia, Egypt, Libya and Vietnam.
Once powerful countries in Europe are now fighting for bankruptcy. We have
taken growth in the developing part of the world for granted but economic
growth in China and India has begun to slow. Companies that were synonymous
with their product categories just a few years ago are now no longer in
existence. Kodak, the inventor of the digital camera had to wind up its
operations, HMV, the British entertainment retailing company and Borders, once
the second largest bookstore have shut down due to their inability to evolve their
business models with the changing time. Readers’ Digest, Thomson Register are
no more !
There is another
megatrend happening. The World order is changing as economic power shifts from
West to East. According to McKinsey study, it took Britain more than 100 years
to double its economic output per person during its industrial revolution and
the US later took more than 50 years to do the same. More than a century later,
China and India have doubled their GDP per capital in 12 and 18 years
respectively. By 2020, emerging Asia will become the world’s largest consuming
block, overtaking North America.
The years after the
outbreak of the global financial crisis, the world economy continues to remain fragile.
The Indian economy demonstrated remarkable resilience in the initial years of
the contagion but finally lost ground last year. GDP growth slowed down.
Currency has been weakening. There is a marked deceleration in agriculture,
industry and services. Dampening sentiment led to a cut-back in investment as
well as private consumption expenditure. Inflation remained at high
levels fuelled by the pressure from the food and fuel sectors. The large fiscal
and current account deficit s continued to cause grave concern. It is
imperative that India regains its growth trajectory of 8-9 % sooner than later.
This is crucially important given the need to create gainful livelihood
opportunities for the millions living in poverty as also the large contingent
of young people joining the job market every year.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
A (Long Term Bank Facilities) |
|
Rating Explanation |
Adequate degree of safety and low credit
risk. |
|
Date |
25.04.2013 |
|
Rating Agency Name |
CARE |
|
Rating |
A1 (Short Term Bank Facilities) |
|
Rating Explanation |
Very strong degree of safety and lowest
credit risk. |
|
Date |
25.04.2013 |
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
MANAGEMENT NON CO-OPERATIVE
CONTACT NO.: 91-22-66615152
LOCATIONS
|
Registered Office : |
Voltas Premises, T. B. Kadam Marg, Chinchpokli, Mumbai –
400033, |
|
Tel. No.: |
91-22-66615445/ 66615152 |
|
Fax No.: |
91-22-66671049/ 66605516/ 5517 |
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E-Mail : |
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Website : |
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Administrative
Office : |
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Corporate Office/ Branch : |
D-26, TTC Industrial Area, MIDC, Sanpada, P. O. Turbhe,
Navi Mumbai – 400 613, |
|
Tel. No.: |
91-22-66615445 |
|
Fax No.: |
91-22-66605516/ 5517 |
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E-Mail : |
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Branches : |
Al |
|
Fax No.: |
91-20-66096300 |
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E-Mail : |
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Branches : |
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Tel. No.: |
91-832-6647777 |
|
E-Mail : |
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|
Branches : |
Plot No. 37-A,
M.I.D.C., Ambad, |
|
Tel. No.: |
91-253-6607777 |
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E-Mail : |
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Branches : |
Vasant Rutu Plaza, "E" Ward, C. S. No. 460, (Daewoo Showroom Building),Venus Corner, New Shahupuri, Kolhapur - 416003, Maharashtra, India |
|
Tel. No.: |
91-231-6687777 |
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E-Mail : |
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Branches : |
Survey No. 3 (Part),
Plot No. Commercial Club Plot, |
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Tel. No.: |
91-240-6627777 |
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E-Mail : |
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Branches : |
Renavikar Mangal Karyalaya Building, Savedi Cell Site, Savedi Road, Ahmednagar - 414003, Maharashtra, India |
|
Tel. No.: |
91-241-6607777 |
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|
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|
Branch Office : |
Ground Floor, Ranjit Empire, |
|
Tel. No.: |
91-233-6607777 |
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|
Branch Office : |
Ispat House, B. G. Kher Marg, Worli, Mumbai - 400 018, |
|
Tel. No.: |
91-22-56615445 |
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|
Branch Office : |
1st Floor, |
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|
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|
Branch Office : |
C/O Premco Industries, Premco House, A-26, Street No. 3, MIDC Marol, Andheri (East), Mumbai - 400050, Maharashtra, India |
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Branch Office : |
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DIRECTORS
AS ON 31.03.2012
|
Name : |
Mr. Kishor A Chaukar |
|
Designation : |
Chairman |
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|
|
|
Name : |
Mr. Narasimhan Srinath |
|
Designation : |
Managing Director |
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|
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|
Name : |
Mr. Amal Ganguly |
|
Designation : |
Independent Director |
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|
|
|
Name : |
Mr. Nadir Godrej |
|
Designation : |
Additional Director |
|
Date of Birth/ Age : |
26.08.1951 |
|
Date of Appointment : |
12.03.2008 |
|
Qualification : |
B. S. (Chemical Engineering) from the Massachusetts Institution of
Technology, USA M.S. (Chem Eng.) from Stanford University, USA and MBA from
Harvard Business School. |
|
|
|
|
Name : |
Mr. Ashok Jhunjhunwala |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. D. T. Joseph |
|
Designation : |
Independent Director |
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|
|
|
Name : |
Mr. N. S. Ramachandran |
|
Designation : |
Director |
|
Date of Birth/ Age : |
25.03.1939 |
|
Date of Appointment : |
06.12.2002 |
|
Qualification : |
M. E. (Power Engineering) |
|
|
|
|
Name : |
Mr. S Ramadoral |
|
Designation : |
Director |
|
Date of Birth/ Age : |
06.10.1944 |
|
Date of Appointment : |
10.08.2006 |
|
Qualification : |
B. Sc. B. Sc., Bachelor of Engineering degree in Electronics and Telecommunication
from India Institute of science, Bangalore and Master’s degree in Computer
Science from the University of California (UCLA), USA |
|
|
|
|
Name : |
Mr. Koji Ono |
|
Designation : |
Director (w.e.f. June 1, 2012) |
|
Date of Birth/ Age : |
08.10.1956 |
|
Date of Appointment : |
01.06.2012 |
|
Qualification : |
Masters degree in Engineering from Waseda University in Japan as well
as Masters in Computer Science from Syracuse University, USA |
|
|
|
|
Name : |
Mr. Katsuhiko Yamagata |
|
Designation : |
Director (Up to May 30, 2012) |
KEY EXECUTIVES
|
Name : |
Mr.
Madhav Joshi |
|
Designation : |
Chief
Legal Officer and Company Secretary |
|
|
|
|
Name : |
Mr.
Hiten Koradia |
|
Designation : |
Manager
– Investor Relations |
|
Email : |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 30.06.2013)
|
Category of
Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of Shares |
|
|
|
|
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
1234358382 |
65.06 |
|
|
1234358382 |
65.06 |
|
|
|
|
|
|
|
|
|
|
229856926 |
12.12 |
|
|
229856926 |
12.12 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
1464215308 |
77.18 |
|
|
|
|
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
1487552 |
0.08 |
|
|
37000 |
0.00 |
|
|
825000 |
0.04 |
|
|
11655958 |
0.61 |
|
|
|
|
|
|
4689 |
0.00 |
|
|
1000 |
0.00 |
|
|
3689 |
0.00 |
|
|
14010199 |
0.74 |
|
|
|
|
|
|
|
|
|
|
56394034 |
2.97 |
|
|
|
|
|
|
|
|
|
|
260531867 |
13.73 |
|
|
92344106 |
4.87 |
|
|
9701340 |
0.51 |
|
|
49471 |
0.00 |
|
|
9643969 |
0.51 |
|
|
4700 |
0.00 |
|
|
3200 |
0.00 |
|
|
418971347 |
22.08 |
|
|
|
|
|
Total Public shareholding (B) |
432981546 |
22.82 |
|
|
|
|
|
Total (A)+(B) |
1897196854 |
100.00 |
|
|
|
|
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
|
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
|
|
|
Total (A)+(B)+(C) |
1897196854 |
0.00 |
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%20LIMITED%20-%20232740%2022-Aug-2013_files/image004.gif){kind=small}
BUSINESS DETAILS
|
Line of Business : |
The company is engaged in providing Telecommunication Services. |
GENERAL INFORMATION
|
No. of Employees : |
1458 (Approximately) |
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Bankers : |
· Citibank NA, ·
Industrial Development Bank of · Axis Bank Limited |
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Facilities : |
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Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
Address : |
12, |
|
|
|
|
Holding Company : |
· Tata Sons Limited |
|
|
|
|
Fellow Subsidiaries : |
·
Tata Teleservices Limited ·
Tata Internet Services Limited ·
Tata Business Support Services Limited ·
Tata Consulting Engineering Limited ·
Tata Consultancy Services Limited ·
Tata Housing Development Company Limited ·
Tata Realty and Infrastructure Limited ·
Tata AIG Life Insurance Company Limited ·
Tata AIG General Insurance Company Limited ·
Tata Sky Limited ·
CMC Limited ·
Tata Assets Management Limited ·
Tata Securities Limited ·
Infiniti Retail Limited ·
E-NXT Financials Limited ·
Tata Petrodyne Limited · Computational Research Laboratories Limited · TCS e- Serve Limited · TC Travel and Services Limited ·
Tata Capital Limited ·
Tata Investment Corporation Limited ·
Ewart Investments Limited · Tata Trustee Company Limited · Tata Advance Systems Limited ·
Viom Networks Limited (Formerly known as Wireless
– TT Info Services Limited) ·
Drive India Enterprise Solutions Limited ·
Viom Infra Networks (Maharashtra) Limited
(Formerly known as 21st Century Infra Tele Limited) ·
Tata International Limited |
CAPITAL STRUCTURE
AS ON 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
2500000000 |
Equity Shares |
Rs.10/- each |
Rs.25000.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1897196854 |
Equity Shares |
Rs.10/- each |
Rs.18972.000
Millions |
|
|
|
|
|
NOTES
1. Of the above 1244664393 Equity Shares are held by Tata Sons Limited (the Ultimate
Holding Company) and its Subsidiaries / Associates as follows:
|
Name of the
shareholders |
Relationship |
As at March 31,
2012 |
|
Tata Sons Limited |
Ultimate Holding Company |
393,065,478 |
|
Tata Teleservices Limited |
Subsidiaries of Ultimate Holding Company |
714,317,891 |
|
The Tata Power Company Limited |
Associates of Ultimate Holding Company |
137,263,174 |
|
Panatone Finvest Limited |
Subsidiaries of Ultimate Holding Company |
17,850 |
2. Details of Equity shares held in the Company by each shareholder holding
more than 5% shares
|
Name of the
Shareholders |
As At March 31,
2012 |
|
|
No of Shares
Held |
% of Holding |
|
|
Tata Teleservices Limited |
714,317,891 |
37.65 |
|
The Tata Power Company Limited |
137,263,174 |
7.24 |
|
Tata Sons Limited |
393,065,478 |
20.72 |
|
NTT Docomo Inc. |
229,856,926 |
12.12 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2012 |
31.03.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
18972.000 |
18972.000 |
|
(b) Reserves & Surplus |
|
(30311.800) |
(25136.300) |
|
(c) Money
received against share warrants |
|
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
|
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
|
(11339.800) |
(6164.300) |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
|
45956.900 |
17275.000 |
|
(b) Deferred tax liabilities (Net) |
|
0.000 |
0.000 |
|
(c) Other long term liabilities |
|
2356.500 |
4043.400 |
|
(d) long-term provisions |
|
45.200 |
39.900 |
|
Total Non-current Liabilities (3) |
|
48358.600 |
21358.300 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
|
7762.500 |
27960.200 |
|
(b) Trade payables |
|
7751.300 |
7572.100 |
|
(c) Other current
liabilities |
|
6758.400 |
5874.900 |
|
(d) Short-term provisions |
|
2006.900 |
1894.900 |
|
Total Current Liabilities (4) |
|
24279.100 |
43302.100 |
|
|
|
|
|
|
TOTAL |
|
61297.900 |
58496.100 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
|
32957.000 |
29712.400 |
|
(ii) Intangible Assets |
|
16905.500 |
18315.900 |
|
(iii) Capital
work-in-progress |
|
643.900 |
1282.300 |
|
(b) Non-current Investments |
|
0.000 |
0.000 |
|
(c) Deferred tax assets (net) |
|
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
|
538.900 |
497.800 |
|
(e) Other Non-current assets |
|
0.000 |
0.000 |
|
Total Non-Current Assets |
|
51045.300 |
49808.400 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
|
0.000 |
0.000 |
|
(b) Inventories |
|
38.100 |
37.800 |
|
(c) Trade receivables |
|
3048.100 |
2366.300 |
|
(d) Cash and cash
equivalents |
|
1379.600 |
746.800 |
|
(e) Short-term loans and
advances |
|
4065.700 |
4175.000 |
|
(f) Other current assets |
|
1721.100 |
1361.800 |
|
Total Current Assets |
|
10252.600 |
8687.700 |
|
|
|
|
|
|
TOTAL |
|
61297.900 |
58496.100 |
|
SOURCES OF FUNDS |
|
|
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
|
18972.000 |
|
|
2] Share Application Money |
|
|
0.000 |
|
|
3] Reserves & Surplus |
|
|
5831.600 |
|
|
4] (Accumulated Losses) |
|
|
(31466.900) |
|
|
NETWORTH |
|
|
(6663.300) |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
|
23004.300 |
|
|
2] Unsecured Loans |
|
|
13090.000 |
|
|
TOTAL BORROWING |
|
|
36094.300 |
|
|
DEFERRED TAX LIABILITIES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
29431.000 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
|
35038.200 |
|
|
Capital work-in-progress |
|
|
1969.100 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
1200.000 |
|
|
DEFERREX TAX ASSETS |
|
|
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
64.000 |
|
|
Sundry Debtors |
|
|
2641.200 |
|
|
Cash & Bank Balances |
|
|
229.800 |
|
|
Other Current Assets |
|
|
0.000
|
|
|
Loans & Advances |
|
|
3010.500 |
|
Total
Current Assets |
|
|
5945.500 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
|
1293.800 |
|
|
Other Current Liabilities |
|
|
13366.700 |
|
|
Provisions |
|
|
61.300 |
|
Total
Current Liabilities |
|
|
14721.800 |
|
|
Net Current Assets |
|
|
(8776.300) |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
29431.000 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
24702.500 |
22487.400 |
20691.000 |
|
|
|
Other Income |
354.400 |
672.000 |
2087.100 |
|
|
|
Profit on sale of long term investment |
0.000 |
8349.300 |
0.000 |
|
|
|
TOTAL (A) |
25056.900 |
31508.700 |
22778.100 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Employee Benefits Expenses |
1744.600 |
1656.500 |
17373.000 |
|
|
|
Operating and Other Expenses |
17709.000 |
16528.700 |
|
|
|
|
Provision for contingencies |
132.800 |
1856.000 |
|
|
|
|
TOTAL (B) |
19586.400 |
20041.200 |
17373.000 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
5470.500 |
11467.500 |
5405.100 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
5212.000 |
3461.500 |
3176.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
258.500 |
8006.000 |
2228.900 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
5434.000 |
7507.000 |
5208.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
(5175.500) |
499.000 |
(2980.000) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
0.000 |
0.000 |
0.100 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
(5175.500) |
499.000 |
(2980.100) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(30967.900) |
(31466.900) |
(28486.800) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(36143.400) |
(30967.900) |
(31466.900) |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Capital Goods |
1129.800 |
1934.200 |
5775.100 |
|
|
TOTAL IMPORTS |
1129.800 |
1934.200 |
5775.100 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
(2.73) |
0.26 |
(1.57) |
|
QUARTERLY RESULTS
|
Particulars (Rs. Millions) |
Jun 2013 |
Mar 2013 |
Dec 2012 |
Sep 2012 |
|
Audited / Unaudited |
Unaudited |
Unaudited |
Unaudited |
Unaudited |
|
Net Sales |
6877.400 |
6811.900 |
6509.000 |
6398.300 |
|
Total Expenditure |
5416.900 |
5396.100 |
5769.900 |
5591.600 |
|
PBIDT (Excl OI) |
1460.500 |
1415.800 |
739.100 |
806.700 |
|
Other Income |
79.500 |
279.400 |
163.300 |
122.800 |
|
Operating Profit |
1540.000 |
1695.200 |
902.400 |
929.500 |
|
Interest |
1295.600 |
1332.400 |
1382.000 |
1286.300 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
244.400 |
362.800 |
(479.600) |
(356.800) |
|
Depreciation |
1513.300 |
1515.100 |
1492.000 |
1480.300 |
|
Profit Before Tax |
(1268.900) |
(1152.300) |
(1971.600) |
(1837.100) |
|
Tax |
0.000 |
0.000 |
0.000 |
0.000 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
(1268.900) |
(1152.300) |
(1971.600) |
(1837.100) |
|
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 |
(1268.900) |
(1152.300) |
(1971.600) |
(1837.100) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
(20.65)
|
1.58 |
(13.08) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(20.95)
|
2.22 |
(14.40) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(8.53)
|
0.87 |
(7.27) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.46)
|
(0.08) |
(0.45) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
(4.74)
|
(7.34) |
(5.42) |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.42
|
0.20 |
0.40 |
LOCAL AGENCY FURTHER INFORMATION
CURRENT MATURITIES
OF LONG TERM DEBT
(Rs.
In Millions)
|
Particulars |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
Current maturities of long term debt |
1485.500 |
1290.800 |
NA |
|
|
|
|
|
|
Total |
1485.500 |
1290.800 |
NA |
|
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 |
No |
|
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 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 |
Yes |
UNSECURED LOAN
|
Particulars |
Rs. In Millions 31.03.2012 |
Rs. In Millions 31.03.2011 |
|
Short Term
Borrowings |
|
|
|
From Banks |
|
|
|
Short Term Loans |
3250.000 |
19828.200 |
|
|
|
|
|
Total |
3250.000 |
19828.200 |
FINANCIAL RESULTS
The total income for the year was Rs.25056.900 Millions an increase of 8%
over previous year (excluding the impact of profit on sale of long term
investments). Other income for the year was at Rs.354.400 Millions
India has the
second largest telecom network in the world after. China. As on April 30, 2012,
as per Telecom Regulatory Authority of India ('TRAI"), there were more
than 952 million telephone connections in the country of which 921 million were
wireless connections and 31 million were Wireline connections. Approximately
8-10 million mobile connections (SIMs) are being added every month. The
national tele-density is 78 per hundred.
The Company has
launched several services over the years involving significant investments. The
Company is relatively a new entrant in GSM and 3G services are still in a
gestation phase in the country. It is not uncommon for telecommunication
companies, by virtue of the high operational costs and the capital intensive
nature of the industry, to have longer gestation periods as compared to some
other sectors. The accumulated losses of the Company at the close of the year
have exceeded its paid up capital and reserves. However, the Company has been
consistently making operating cash profits over the past few years.
The Company had
availed of short term loans for the payment of 3G licence fees and the roll out
of the 3G network. The Company got its Business Plan appraised by IDBI Bank
Limited for the availment of long term External Commercial Borrowings
("ECB") of USD 350 million for replacing the short term loans with
new long term loans. In May' 2011, the Company tied up for long term ECB of USD
350 Million for refinancing of short term loans availed for 3G spectrum fees
and for capex. The Company has so far availed ECB of USD 342.03 Million with an
average maturity period of 10 years.
PRODUCTS AND
SERVICES
The Company holds
two Unified Access (basic + cellular) Service Licences ("UASL"), one
for Mumbai Metro and the other for Maharashtra circle i.e. Rest of Maharashtra
and Goa. The subscriber base of 14.13 million as on Apri1'2012 consists of CDMA
wireless, GSM wireless and wireline subscribers.
The successful
launch of GSM services under the Tata DOCOMO brand in 2009 and the integration
of CDMA services under the same brand in the latter part of the last fiscal
have helped to boost the quality of subscriber additions. The Company has the
3" largest wireless subscriber base in Mumbai and Maharashtra circles.
Tata DOCOMO
introduced Family Plans on CDMA and Walky. These plans authorize subscribers,
multiple connections at one rental with free CUG calling within the family
members. Tata DOCOMO pioneered the launch of Roam Free Plans in GSM wherein
subscribers can enjoy free incoming roaming benefit without extra charges.
The Company
continues to be successful in its High Speed Internet Access ("HSIA")
services under the Photon brand. Photon services have continued to gather both
industry and consumer endorsements. Frost and Sullivan chose Photon as the best
wireless broadband service provider of the year for both 3G as well as HSIA
services. During the year, the Company added 19 additional towns in Maharashtra
circle to offer Photon Plus wireless broadband services. The Company launched
the Photon Max service, which effectively doubles the speed of the
earlier Photon Plus services, in Mumbai and Pune. The Photon Max won
'Product of the Year' in the wireless broadband category (best innovation).
Available on the CDMA technology platform, the Photon Max provides users with a
never-before ' browsing experience and seamless in-building coverage.
The Company has
continued to focus on Value Added Service ("VAS") offerings. Data and
VAS revenues have now grown to account for 32% of the wireless revenues. The
Company introduced several attractive product and service propositions such as
Mobile TV, Music downloads and Personalized Caller tunes. The Company was the
first to launch a Wi-Fi Router Hub on Photon Plus and also on a dual hub
supporting Photon Plus and 3G. The Company implemented innovative ways like
leveraging syndicated ad-networks to drive visibility and ease of discovery of
VAS services via the Internet.
Tata DOCOMO
introduced many innovative VAS to its GSM customers across Voice, Text and
Data. A rich media service called Gametanium, which is an exclusive Android
gaming platform, was launched which allows subscribers to experience a superior
gaming experience with 30 exclusive games. A social initiative titled Saral
Rozgaar was also launched which empowers subscribers to search for blue-collar job opportunities at very conducive
costs. Tata DOCOMO launched Tutor on Mobile to drive education on mobile via
offerings of conferencing and podcasting with domain experts at a very
pocket-friendly cost, Go Bubble for Mumbai customers which is a mobile-coupon
based service offering deals and discounts at popular chains and restaurants,
Jobs and Matrimony search on mobile which allows users to search for the
perfect Job and the right match for themselves among others.
Recent trends in
the business and consumer environment are portending a growth story around
data. Mobile internet is registering phenomenal growth year after year in
India. In order to leverage this trend, the Company has introduced a new
business unit which will focus on life-enhancing services like Home
Surveillance, m-Commerce, Location Based services (eg. School bus tracking)
etc.
The Company obtained 3G
spectrum in Maharashtra circle where it was the first private operator to
launch 3G with a range of new services like Mobile TV and App Stores. The
Company was not successful in its bid for 3G spectrum in Mumbai. The Company
would however continue to address the market requirements through the Photon
Plus which is being made available on a growing range of handsets. The Company
is also exploring the options for 3G roaming with other operators subject to
Regulatory clearances.
The Company has laid over
2,224 km of fiber optic cable across Mumbai and already connects over 20,000
buildings with broadband services. To expand the network further at optimal
cost, the Company has entered into co-build agreement with other operators. The
Company would continue to make investments to strengthen its wireline offerings
and would work to increase voice and data penetration in already wired
buildings.
The Company is a Category a
(National) ISP Licensee and offers a broad range of internet-related services
including Digital Subscriber Lines ("DSL"), leased lines and dial-up
internet access.
The Company has also made
significant investments in products and services specifically for the
Enterprise and Small and Medium Enterprise business segments. The Company along
with Tata Teleservices Limited ("TTSL") has a national footprint for
its Conference Call service with 15 Points of Presence across the country for
providing local access to conference bridges.
MARKETING
INITIATIVES
Tata DOCOMO mounted the
'Keep it Simple' campaign which highlighted service delivery differentiators
and gave proof points of its promise of simplicity.
Maharashtra circle got a splendid
response for its national level SMS based engagement program called "Jeet
Ki Ghanti", the first-of-its-kind in this category. This program was
designed to reward existing Tata DOCOMO customers (CDMA or GSM) for reposing
their faith in their network. In Maharashtra circle, 2 customers won Chevrolet
Beat Cars and approximately one dozen customers won motorbikes.
Another national level
campaign which saw tremendous response in the Maharashtra circle was the
'Network Campaign' which established the promise of ubiquity on Tata DOCOMO'S network.
Various marketing
innovations were implemented during the year and the Company bagged the
prestigious 'Exchange 4 Media' award for using non conventional media (Ganpati
boat branding) undersilvercategory.
MANAGEMENT
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Industry
Structure and Developments
In the last 3 years, the Indian telecom sector has
witnessed tremendous mobile subscriber growth on the back of falling tariffs.
Today, India has the second largest telecom network in the world after China.
As on April 30, 2012 there were more than 952 million telephone connections in
the country of which 921 million were wireless connections and 31 million
Wireline connections and approximately 8-10 million mobile (SIM) connections
are being added every month.
A lot of this has been due to very positive policies
of the Government that have led to increased competition and consequently
falling tariffs which have made Indian mobile services among the cheapest in
the world. However, certain structural imbalances persist that, if corrected,
could lead to even better growth and the country truly leveraging the
capabilities of telecom to bridge the digital divide.
The lack of a level playing field amongst operators,
the absence of true technology neutrality, a changing regulatory environment
creating uncertainty in the minds of investors and lenders and a need for
greater clarity and transparency in the decision making process are important
issues that need to be addressed. These are manifest in the lopsided allocation
and pricing of scarce spectrum in the past. The recent announcement of the
National Telecom Policy 2012 is a welcome step in the right direction and it is
expected that other policy announcements of the Government will address past
issues and set the industry on a growth trajectory for the next 20 years.
For the industry to have a sustained growth and
profitability it is important to find the right balance between providing
affordable tariffs to consumers, ensuring an adequate rate of return to
operators and generating an appropriate income stream to the Government for
allocating scarce national resources like spectrum to the sector.
The market is also going through an evolution with the
changing needs of consumers. While voice and SMS continue to be the mainstay
for revenue today for the operators, future growth is expected to come more
from data services including content and applications. The promise of retail
broadband to fulfill the aspirations of the citizens of this country on the
back of advanced wireless technologies is still evolving. New generation
services like m-commerce, m-health and m-education will play a major role in
driving the larger social agenda forthe country.
This will necessitate that telecom companies
continue to evolve with the market if they are to truly provide value to their
consumers and to remain competitive on a sustained basis. Differentiation on
the back of greater understanding of the consumer will determine success in the
future. Companies must now move beyond simple "minutes and megabytes"
to cater to an ever expanding consumer need of greater speeds and reliability,
a comprehensive portfolio of services and applications running on rapidly
developing handsets such as feature phones, smart phones, tablets and other
similar devices.
OUTLOOK
The national teledensity is
over 78% mark, but accounting for the considerable multi-simming phenomenon in
the industry, the 'actual' tele-density is much lesser. Considering the
teledensity of other comparable regions and countries in Asia, there is a
significant market in India still waiting to be tapped and the Company will
take all the necessary initiatives to become a major player in its chosen areas
of operation.
The Company will also
benefit from its association with TTSL, which has licences to provide telecom
services in 20 circles across India. TTSL has also been permitted by DoTto use
GSM Technology in 17 Circles and has been allocated GSM spectrum in 16 circles.
It has also won 3G spectrum in 8 circles, primarily in the western belt of the
country.
The Company has successfully
launched GSM services under the Tata DOCOMO brand in Mumbai and Maharashtra circles
in August'2009. It has been successful in winning 3G spectrum for Maharashtra
circle (which includes Goa). The Company has been making cash profits in last
25 quarters.
The Company expanded its
network throughout the States of Maharashtra and Goa and the Company now offers
GSM services in 898 Towns and CDMA services in 1,191 towns by the end of the
financial year 2011- 2012. The Company successfully launched 3G wireless
service under 'Tata DOCOMO' brand in 17 Towns in Maharashtra circle. The Company's
Photon* high speed internet services along with some other strategies will
enable it to compete in Mumbai, where it did not pursue, bidding for 3G
spectrum due to what it considered exorbitantly high bid price.
ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
The financial statements have been prepared
in accordance with the requirements of the Act, the Indian Generally Accepted
Accounting Principles (Indian GAAP) and the Accounting Standards as prescribed
by the Institute of Chartered Accountants of India. The Board of Directors
believes that it has been objective and prudent in making estimates and
judgment relating to the financial statements and confirms that these financial
statements are a true and fair presentation of the Company's operations and
profits for the year.
CORPORATE INFORMATION
The Company was incorporated on March 13, 1995. The
Company is licensed to provide basic and cellular telecommunication services. The
Company presently holds two Unified Access (Basic and Cellular) Service
Licenses, one for Mumbai Service Area and another for Maharashtra and Goa and
provides telecommunication services using Code Division Multiple Access (CDMA)
technology/ Global System for Mobile Communications (GSM) technology under the
aforesaid licenses. The Company also holds the National Internet Service
provider - Internet Telephony license. The Company during the previous year had
succeeded in winning the bid for 3G spectrum in Maharashtra and Goa circle
(excluding Mumbai) (Also refer Note 24.12).
The Company is a subsidiary of Tata Sons Limited,
(the ultimate holding company)
STATEMENT
OF UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2013
(RS.
IN MILLIONS)
|
Sr. No. |
Particulars |
Quarter ended |
Year ended |
||
|
|
|
June 30, |
March 31, |
June 30, |
March 31, |
|
|
|
2013 |
2013 |
2012 |
2013 |
|
|
|
(Unaudited) |
(Audited) |
(Audited) |
(Audited) |
|
1 |
a. Net Sales/Income from Telecommunication services |
6660.000 |
6691.800 |
6593.600 |
26081.600 |
|
|
b. Other Operating Income |
217.400 |
120.100 |
3.700 |
263.800 |
|
|
c. Total Income from Operations (Net) (a+b) |
6877.400 |
6811.900 |
6597.300 |
26345.400 |
|
|
|
|
|
|
|
|
2 |
Expenditure |
|
|
|
|
|
|
a. Network operations costs |
1634.400 |
1656.800 |
1455.000 |
6272.100 |
|
|
b. Interconnection and other access costs |
1321.700 |
1445.200 |
1304.900 |
5376.700 |
|
|
c. License fees and spectrum charges |
654.900 |
641.600 |
793.000 |
2933.400 |
|
|
d. Employees cost |
421.700 |
410.500 |
406.900 |
1598.100 |
|
|
e. Administration and other expenses (Net) |
799.500 |
655.300 |
750.300 |
2959.700 |
|
|
f. Marketing and business promotion expenses (Net) |
402.000 |
354.000 |
565.700 |
1753.800 |
|
|
g. Provision for Contingencies |
100.000 |
232.700 |
0.000 |
955.400 |
|
|
h. Depreciation / Amortization (Net) |
1513.300 |
1515.100 |
1463.100 |
5950.500 |
|
|
i. Total Expenses (a+b+c+d+e+f+g+h) |
6847.500 |
6911.200 |
6738.900 |
27799.700 |
|
|
|
|
|
|
|
|
3 |
Profit / (Loss) from Operations before Other Income,
Finance cost and Exceptional Items (1-2) |
29.900 |
(99.300) |
(141.600) |
(1454.300) |
|
4 |
Other Income |
79.500 |
203.600 |
36.500 |
510.100 |
|
|
|
|
|
|
|
|
5 |
Profit / (Loss) from ordinary activities before Finance cost and Exceptional Items (3+4) |
109.400 |
104.300 |
(105.100) |
(944.200) |
|
6 |
Finance cost |
1378.300 |
1256.600 |
1521.500 |
5643.500 |
|
7 |
Loss after Finance cost but before Exceptional Items
(5-6) |
(1268.900) |
(1152.300) |
(1626.600) |
(6587.700) |
|
8 |
Exceptional Items |
|
|
|
|
|
9 |
Loss from Ordinary Activities before tax (7-8) |
(1268.900) |
(1152.300) |
(1626.600) |
(6587.700) |
|
10 |
Tax expense |
|
|
|
|
|
|
- For Income Tax (See note 7) |
|
|
|
|
|
|
- For Wealth Tax |
|
|
|
|
|
11 |
Net Loss from Ordinary Activities after tax (9-10) |
(1268.900) |
(1152.300) |
(16266) |
(65877) |
|
12 |
Extraordinary items |
|
|
|
|
|
13 |
Net Loss for the period / year (11-12) |
(1268.900) |
(1152.300) |
(1626.600) |
(6587.700) |
|
14 |
Paid up equity share capital |
18972.000 |
18972.000 |
18972.000 |
18972.000 |
|
|
(Face value Rs. 10/- per share) |
|
|
|
|
|
15 |
Reserves excluding revaluation reserves |
-- |
-- |
-- |
(36899.500) |
|
16 |
Earnings
Per Share (EPS) (In Rupees) |
|
|
|
|
|
|
a) Basic and diluted EPS before Extraordinary items |
|
|
|
|
|
|
- Basic |
(0.67) |
(0.61) |
(0.86) |
(3.47) |
|
|
- Diluted |
(0.67) |
(0.61) |
(0.86) |
(3.47) |
|
|
b) Basic and diluted EPS after Extraordinary items |
|
|
|
|
|
|
- Basic |
(0.67) |
(0.61) |
(0.86) |
(3.47) |
|
|
- Diluted |
(0.67) |
(0.61) |
(0.86) |
(3.47) |
|
|
|
|
|
|
|
|
Earning Before Finance cost, Depreciation,
Extraordinary item and Tax (EBITDA) |
1622.700 |
1619.400 |
1358.000 |
5006.300 |
|
|
|
|||||
|
PART
II : SELECT INFORMATION FOR THE QUARTER ENDED JUNE 30, 2013 |
|||||
|
(A) |
Particulars
of Shareholding |
|
|
|
|
|
|
Particulars |
Quarter ended |
Year ended |
||
|
|
|
June 30, |
March 31, |
June 30, |
March 31, |
|
|
|
2013 |
2013 |
2012 |
2013 |
|
|
|
(Unaudited) |
(Audited) |
(Audited) |
(Audited) |
|
1 |
Public
Shareholding |
|
|
|
|
|
|
- Number of shares |
432981546 |
422675535 |
422675535 |
422675535 |
|
|
- Percentage of shareholding |
22.82% |
22.28% |
22.28% |
22.28% |
|
|
|
|
|
|
|
|
2 |
Promoters
and promoter group Shareholding |
|
|
|
|
|
|
a)
Pledged / Encumbered |
|
|
|
|
|
|
Number of shares |
493271182 |
493271182 |
493271182 |
493271182 |
|
|
Percentage of Shares (as a % of total shareholding
of promoter and promoter group) |
33.69% |
33.45% |
33.45% |
33.45% |
|
|
Percentage of Shares (as a % of total share capital
of the Company) |
26.00% |
26.00% |
26.00% |
26.00% |
|
|
|
|
|
|
|
|
|
b)
Non-encumbered |
|
|
|
|
|
|
Number of shares |
970944126 |
981250137 |
981250137 |
981250137 |
|
|
Percentage of Shares (as a % of total shareholding
of promoter and promoter group) |
66.31% |
66.55% |
66.55% |
66.55% |
|
|
Percentage of Shares (as a % of total share capital
of the Company) |
51.18% |
51.72% |
51.72% |
51.72% |
|
|
|
|
|
|
|
|
(B) |
Information on investors' complaints for the 3
months ended June 30, 2013 |
||||
|
|
Particulars |
3 months ended June 30, 2013 |
|
||
|
|
Pending at the beginning of the quarter |
2 |
|
|
|
|
|
Received during the quarter |
18 |
|
|
|
|
|
Disposed of during the quarter |
19 |
|
|
|
|
|
Remaining unresolved at the end of the quarter |
1* |
|
|
|
NOTES:
Finance charges include amounts
aggregating Rs.82.700 Millions, Rs.(75.800 Millions) and Rs.133.200
Millions for the quarters ended June 30,
2013, March 31, 2013 and June 30, 2012 respectively on account of foreign
exchange losses/ (gains).
The definition of Adjusted
Gross Revenue (AGR) does not specifically include capital gain from sale of
shares/securities and does not specifically allow exemption for bad debts in
computation of License Fees (LF) payable to the Government. The Telecom Dispute
and Settlement Appellate Tribunal (TDSAT) had vide its' Order dated August 30,
2007, held that income from sale of securities is not related to licensed
activity and hence should not attract LF and that bad debts written off,
waivers and discounts are actual monies lost by service providers and hence
should be deducted from AGR. The Department of Telecommunications (DOT) had
filed an appeal in the Hon'ble Supreme Court of India (SC) against the
aforesaid TDSAT Order. The Company has considered Rs.1548.600 Millions, being
the LF on profit on sale of investment and bad debts written off during the
financial year ended March 31, 2011, as contingent liability and has also made
payment of the same to DOT under protest.
The SC vide its' Order dated
October 11, 2011 has set aside the Order passed by TDSAT and has given leave to
the licensees to approach TDSAT in case if specific demand raised by DOT is not
in accordance with the Licence Agreement. Prior to the aforesaid judgment, the
Company had received provisional assessment orders from DOT, against which
applications have now been filed with the TDSAT in line with the aforesaid
judgment. The Company has not received any further demands on this matter and
hence no accounting treatment for the said order is considered necessary in the
books of account, at this stage.
Tata Sons Limited and NTT
Docomo form the Promoters and Tata Teleservices Limited, The Tata Power Company
Limited and Panatone Finvest Limited form the promoter group of Tata
Teleservices (Maharashtra) Limited (TTML). As per the provisions of the
Securities Contracts (Regulations) Rules, 1957, as amended ("SCRR"),
TTML is required to maintain a public shareholding of25% of the aggregate
paid-up equity share capital ("Minimum Public Shareholding
Threshold"). Accordingly, at present, the public shareholding of TTML
falls short of the required minimum public shareholding by 2.18%.
Pursuant to an order dated
June 4, 2013 ("Order") issued by the Securities and Exchange Board of
India ("SEBI"), it had imposed certain restrictions on the directors
and Promoters / Promoter Group and further sought to take action against the
companies which did not meet the Minimum Public Shareholding Threshold
specified under SCRR as on June 3, 2013.
In order to comply with the
Minimum Public Shareholding Threshold (i.e., 25% of the aggregate paid up
equity share capital of the Company being held by the 'public' category of
shareholders), the TTML Board had recommended a bonus issue of Equity shares in
proportion of2 new equity shares for every 15 existing equity shares held by
the Members of the Company with Promoters/Promoter Group entities
waiving/foregoing their entitlement in the proposed bonus issue. The Promoters
and Promoter group have agreed to forego their entitlement in the said bonus
issue and the Members of the Company approved the bonus issue at their
Extra-Ordinary general Meeting held on July 29, 2013. The said issue is
scheduled to be completed by August 2013 post which TTML is expected to become
compliant to Minimum Public Shareholding norms.
A demand note for
Rs.2901.700 Millions for startup spectrum beyond 2.5MHz in CDMA (800 MHz) band,
being a onetime spectrum charge claimed for the period from 1st January 2013
till the date of expiry of the licence, was received from the DoT. The Company has
filed a writ petition in the High Court against the demand and obtained a stay
order. The Company has written to DoT conveying its intent to surrender 1.25
MHz of CDMA spectrum after retaining 1.25 MHz of spectrum over and above start
up spectrum of 2.5 MHz in Mumbai and to surrender the spectrum beyond 2.5 MHz
in Maharashtra. The licence fees, on the basis of the demand, for the spectrum
retained amount to Rs.1045.800 Millions for Mumbai. The Company has also paid
under protest the first installment of Rs. 2990 lacs. It is not expected that
there would be any significant adverse effect on the Company's operations on
account of the spectrum to be surrendered.
The DoT has stated in its
response that the surrender should be without conditions and payment of
spectrum charges should be made till such time of surrender. The Company has
responded stating that the surrender is without prejudice to the rights of the
Company and subject to outcome of writ petition filed before Mumbai High Court.
The Company having taken steps to effect payments for the spectrum retained and
surrender additional spectrum under protest and without prejudice, the High
Court has restrained DoT from taking coercive action under the demand notice
issued against the company.
Various demands and notices
that have been received from the Department of Telecommunications related to
the Company's operations have been disputed by the Company at the appropriate
forums such as The Telecom Disputes Settlement and Appellate Tribunal (TDSAT)
and the Courts at different levels, including the High Court and the Supreme
Court.
Provision for contingencies
is primarily towards the outstanding claims / litigations against the Company
relating to Department of Telecommunication (DoT) and other parties.
No provision for income tax
is required to be made as on the basis of the Company's computations, as there
is no taxable income.
Previous period/ year
figures have been regrouped / reclassified wherever necessary.
The Company is engaged in
the business of providing Telecommunication Services under Unified Access
License. In the context of Accounting Standard 17 on 'Segment Reporting', the
results are considered to constitute a single reportable business segment.
The above financial results
have been reviewed by the Audit Committee of the Board of Directors and
approved by the Board of Directors of the Company at its meeting held on August
1, 2013.
FIXED ASSETS
· Leasehold assets
· Land
· Office Premises
· Building
· Plant and Machinery
· Own
· Acquired under
· Finance Lease
· Furniture, Fixture and Office Equipment
· Vehicles
INTANGIBLE ASSETS:
· License
· Computer Software
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making anyprohibited 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.63.46 |
|
|
1 |
Rs.99.42 |
|
Euro |
1 |
Rs.85.12 |
INFORMATION DETAILS
|
Information
Gathered by : |
NYA |
|
|
|
|
Report Prepared
by : |
NIT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
4 |
|
--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 |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
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 |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.