MIRA INFORM REPORT

 

 

Report Date :

07.02.2013

 

IDENTIFICATION DETAILS

 

Name :

DIALOG AXIATA PLC

 

 

Registered Office :

# 475, Union Place, Colombo 02

 

 

Country :

Sri Lanka

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

27.08.1993

 

 

Com. Reg. No.:

PQ 38

 

 

Legal Form :

Public Limited Liability Company

 

 

Line of Business :

Maintaining & Operating an Island wide Mobile / CDMA Telephone Network

 

 

No. of Employees :

Approximately 10,000

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Status :

Good

Payment Behaviour :

Regular

Litigation :

Clear

 

 

NOTES :

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

 

ECGC Country Risk Classification List – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

Sri Lanka

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

SRI LANKA - ECONOMIC OVERVIEW

 

Sri Lanka continues to experience strong economic growth, driven by large-scale reconstruction and development projects following the end of the 26-year conflict with the LTTE. Sri Lanka is pursuing a combination of government directed policies, private investment, both foreign and domestic, to spur growth in disadvantaged areas, develop small and medium enterprises, and increase agricultural productivity. The government struggles with high debt interest payments, a bloated civil service, and historically high budget deficits. However recent reforms to the tax code have resulted in higher revenue and lower budget deficits in recent years. The 2008-09 global financial crisis and recession exposed Sri Lanka's economic vulnerabilities and nearly caused a balance of payments crisis. Growth slowed to 3.5% in 2009. Economic activity rebounded strongly with the end of the war and an IMF agreement, resulting in two straight years of high growth in 2010 and 2011. Per capita income of $5,600 on a purchasing power parity basis is among the highest in the region.

Source : CIA

GENERAL

- Basic information at a glance

       

Name of Subject of Inquiry

:

DIALOG AXIATA PLC

Legal Form  & Status

:

A Public quoted company with limited liability .Incorporated as a private limited liability company on August 27, 1993 and subsequently converted to a public limited liability company on May 26, 2005. Listed on the Colombo Stock Exchange in July 2005. (In Operation)

Chairman

 :

Datuk Azzat  Kamaludin

Primary Line of Business

:

Maintaining & Operating an Island wide Mobile / CDMA Telephone Network

Head Office

&

Place of Business

:

 

# 475, Union Place,

Colombo 02,

Sri Lanka.

 

Tel. No:(00 94 77) 7 678700 / (00 94 11) 2 678700

Tel No: (00 94 77) 7 081304 – Investor  Relations

Tel No: (00 94 77) 3 908929 / 7 081471 – Shareholder Services

 

Fax No: (00 94 11) 2 669701

Fax No: (00 94 11) 2 690229

 

E Mail: global@dialog.lk

              info@dialog.lk

              hans@dialog.lk

              ir@dialog.lk  -  Investor  Relations

              cosecunit@dialog.lk  - Shareholder Services

 

 

No. of  Employees

:

Approximately 10,000

           

        

COMPANY DETAILS 

- Registration and Shareholder Details

 

Registration No

:

PQ 38

Date of Registration

:

27th August 1993

Registered Office

:

# 475, Union Place, Colombo 02, Sri Lanka

Issued Share Capital

:

Rs               8,143,778,405.00

 

Nominal Value of Share

:

Rs.                                10.00                

 

Major Share Holders

As At

31st December 2011

:

Major Share Holders

No of Shares

 

Axiata Investments (Labuan) Ltd.

6,785,252,765

 

HSBC-BBH Genesls Smaller Companies

191,221,640

 

Dialog Axiata Employee Share Option Trust

158,572,462

 

Sri Lanka Insurance Corporation Ltd – Life Fund

74,585,920

 

HSBC-SSBT- International Finance Corporation

64,086,800

 

HSBC – BBH Genesis Emerging Markets Opportunities Fund

55,345,900

 

HSBC – JPMLU – Morgan Stanley Asset Management

54,985,167

 

Browns Investments Plc

44,990,600

 

 

Auditors

:

PriceWaterHouseCoopers

Company Secretaries

:

Ms. Viranthi Attygalle

Bankers

:

Citibank N.A, Commercial Bank of Ceylon PLC, Deutsche Bank AG, Hong Kong and Shanghai Banking Corporation Limited, Public Bank Berhad, Standard Chartered Bank Limited

Bank of Ceylon, DFCC Bank, Hatton National Bank PLC, Indian Overseas Bank, NDB Bank, Nations Trust Bank PLC, Pan Asia

Banking Corporation PLC, Peoples Bank, Public Bank Berhad, Sampath Bank PLC, Seylan Bank PLC, Standard Chartered Bank, Union Bank of  Colombo Ltd 

Board of Directors

As at

31st March 2012

:

Datuk Azzat  Kamaludin

Chairman

Dr. Hans Wijayasuriya

Group Chief Executive

Moksevi Prelis

Director

Mohamed Muhsin

Director

Jayantha Dhanapala

Director

Azwan Khan bin Osman Khan

Director

Dato Sru Jamaludin Ibrahim

Director

James Maclaurin

 

 

 

 

      

 

 

 

 

 

            

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT INVESTIGATION                      

 

 

·         History.

 

 

The Subject Company DIALOG AXIATA PLC, was initially incorporated as M T N NETWORKS (PVT) LIMITED on 27th August 1993 as a private Limited Liability company and changed it’s name to DIALOG TELECOM (PVT) LIMITED on 16th February 2001 and again changed it’s name to M T N NETWORKS (PVT) LIMITED on 02nd August 2001 and again change its name to DIALOG TELEKOM LIMITED on 25th May 2005. As well as, company name again changed to DIALOG TELECOM PLC due to re-registered under new company act 07 – 2007. Furthermore, recently name of the company has been changed to DIALOG AXIATA PLC. The Subject Company DIALOG AXIATA PLC listed with Colombo Stock Exchange on 26th May 2005.

 

·         Location.

                  The subject company is located at client # 475, Union Place, Colombo-02, Sri Lanka.    

 

·         Operational Details.

 

General

                 

                  The subject company’s primary line of business is Maintaining & Operating an Island wide Mobile Telephone Network.

 

                  DIALOG AXIATA PLC and its subsidiaries provide communication (mobile, internet, international gateway, data and backbone, fixed wireless and transmission infrastructure) and media related services (television broadcasting services, pay television and cable television dervices, operation of a television broadcasting station and direct to home satellite TV service)

 

DIALOG AXIATA PLC, an ISO 9001 certified company, is a subsidiary of Axiata Group Berhad. Dialog is the undisputed leader in Sri Lanka’s mobile telephony sector. The company operates 2.5G and 3/3.5G Mobile Communications networks supporting the very latest in multimedia and mobile Internet services. Dialog’s domestic coverage spans all provinces of Sri Lanka; while the company’s international roaming network spans over 200 countries. DBN, a fully owned subsidiary of Dialog Axiata PLC operates CDMA WLL Fixed Telephony, and WiMAX 16d Broadband Wireless Access Networks, and is a key player in Sri Lanka’s ICT Infrastructure sector. DTV, also a fully owned subsidiary, operates Dialog TV, Sri Lanka’s leading digital satellite television service, an ISO 9001 certified company, is a subsidiary of Axiata Group Berhad. Dialog is the undisputed leader in Sri Lanka’s mobile telephony sector. The company operates 2.5G and 3/3.5G Mobile Communications networks supporting the very latest in multimedia and mobile Internet services. Dialog’s domestic coverage spans all provinces of Sri Lanka; while the company’s international roaming network spans over 200 countries. DBN, a fully owned subsidiary of DIALOG AXIATA PLC operates CDMA WLL Fixed Telephony, and WiMAX 16d Broadband Wireless Access Networks, and is a key player in Sri Lanka’s ICT Infrastructure sector. DTV, also a fully owned subsidiary, operates Dialog TV, Sri Lanka’s leading digital satellite television service

 

                  Fully own Subsidiary Companies

o        Dialog Broadband Networks (Pvt) Ltd (“DBN”)

o        Dialog Television (Pvt) Ltd (“Dialog TV”)

 

 

No of Employees            

                  Approximately 10,000 employees.   

 

 

 

·         Financial Data

 

Received from company annual report.

 

·         Trade references

 

                  The subject company did not provide any trade reference

 

 

·         Credit Recommendations

 

                  No computerised data bases exist to make checks whether the partners or the company has any legal action or lawsuit initiated against any of them but informal (but not in-depth) checks do not indicate any such cases in the public knowledge.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.53.08

UK Pound

1

Rs.83.12

Euro

1

Rs.72.02

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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 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%)

 

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.