MIRA
INFORM REPORT
|
Report Date : |
07.02.2013 |
IDENTIFICATION DETAILS
|
Name : |
RELIANCE INFRATEL LIMITED (w. e. f. 04.01.2008) |
|
|
|
|
Formerly Known
As : |
RELIANCE COMMUNICATIONS RAJASTHAN LIMITED (w.e.f. 18.06.2004) RELIANCE COMMUNICATIONS RAJASTHAN PRIVATE LIMITED |
|
|
|
|
Registered
Office : |
H Block, 1st Floor, |
|
|
|
|
Country : |
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|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
16.04.2001 |
|
|
|
|
Com. Reg. No.: |
11-131598 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.28331.419
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U72900MH2001PLC131598 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMR21559G |
|
|
|
|
PAN No.: [Permanent Account No.] |
AACCR0181Q |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company. |
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|
|
|
Line of Business
: |
Providing Wireless Communication Services. |
|
|
|
|
No. of Employees
: |
Not Divulged |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (54) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 289000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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|
Comments : |
Subject is a part of ADA Group of companies. It is a well established and reputed company. The latest financials
are not available. As per previous year’s the company performance capacity
appears to be high. Financially seems to be strong. Liquidity position is
good. Trade relations are reported to be fair. Business is active. Payments
are reported to be regular and as per commitment. The company can be considered for normal business dealings at usual
trade terms and conditions. NOTE: Due to technical error in the government sites, we hereby provide you the report with available details and we would provide you with a on the same company as soon as we get the additional information. |
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 |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
AA [Long Term] |
|
Rating Explanation |
Having high degree of safety regarding timely servicing of financial
obligation it carry low credit risk. |
|
Date |
March 2012 |
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
(91-22-39138043)
LOCATIONS
|
Registered Office : |
H Block, 1st Floor, |
|
Tel. No.: |
91-22-30386286 |
|
Fax No.: |
91-22-30376622 |
|
E-Mail : |
DIRECTORS
AS ON 30.09.2011
|
Name : |
Mr. Anil Dhirubhai Ambani |
|
Designation : |
Director |
|
Address : |
39, Sea Wind, Cuffe Parade, Colaba, Mumbai - 400 005, |
|
Date of Birth/Age : |
04.06.1959 |
|
Date of Appointment : |
18.06.2007 |
|
DIN No.: |
00004878 |
|
|
|
|
Name : |
Mr. Satya Pal Talwar |
|
Designation : |
Director |
|
Address : |
163, |
|
Date of Birth/Age : |
14.06.1939 |
|
Date of Appointment : |
18.06.2007 |
|
DIN No.: |
00059681 |
|
|
|
|
Name : |
Mr. Raj Narain Bhardwaj |
|
Designation : |
Director |
|
Address : |
402, Moksh Apartments, Upper Govind Nagar, Malad East, Mumbai 400097, |
|
Date of Birth/Age : |
08.05.1947 |
|
Date of Appointment : |
19.09.2009 |
|
DIN No.: |
01571764 |
|
|
|
|
Name : |
Mr. Syed Mohammed Aun Safawi |
|
Designation : |
Director |
|
Address : |
1801, Evita Co-operative Housing Society Limited, Central Avenue,
Hiranandani Gardens, Powai, Mumbai – 400076, Maharashtra, India |
|
Date of Birth/Age : |
11.10.1964 |
|
Date of Appointment : |
28.05.2011 |
|
DIN No.: |
02993292 |
KEY EXECUTIVES
|
Name : |
Mr. Anil Chandulal Shah |
|
Designation : |
Company Secretary |
|
Address : |
6, Reliance Bill Collection Center, Near Ambedkar Garden, Road No. 18,
Chembur East, Mumbai – 400071, |
|
Date of Birth/Age : |
24.04.1963 |
|
Date of Appointment : |
30.05.2007 |
|
PAN no.: |
AHBPS7964F |
|
|
|
|
Name : |
Mr. Anil Chandulal Shah |
|
Designation : |
Manager |
|
Address : |
6, Reliance Bill Collection Center, Near Ambedkar Garden, Road No. 18,
Chembur East, Mumbai – 400071, |
|
Date of Birth/Age : |
24.04.1963 |
|
Date of Appointment : |
01.04.2011 |
|
PAN no.: |
AHBPS7964F |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2011
SHAREHOLDING DETAILS FILE ATTACHED
AS ON 30.09.2011
Equity Share Breakup
|
Category |
|
Percentage |
|
|
|
|
|
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
|
19.79 |
|
Bodies
corporate |
|
80.21 |
|
|
|
|
|
Total |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Providing Wireless Communication Services. |
GENERAL INFORMATION
|
No. of Employees : |
Not Divulged |
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Bankers : |
Barclays Bank, London |
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Facilities : |
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Banking
Relations : |
-- |
|
|
|
|
Financial Institution : |
· Axis Trustee Services Limited, Axis House, 2nd Floor, Bombay Dyeing Mills Compound,
Pandurang Budhkar Marg, Worli, Mumbai – 400025, Maharashtra, India |
|
|
|
|
Auditors : |
|
|
Name : |
Chaturvedi and Shah Chartered Accountants |
|
Address : |
912-913, Tulsiani Chambers, 212 Nariman Point, Mumbai – 400021,
Maharashtra, India |
|
PAN No.: |
AAAFC0662N |
|
|
|
|
Statutory
Auditors : |
|
|
Name : |
BSR and Company Chartered Accountants |
|
PAN No.: |
AAAFB9852F |
|
|
|
|
Holding Company : |
· Reliance Communications Infrastructure Limited, India CIN No.: U64203MH1997PLC166329 |
|
|
|
|
Ultimate Holding
Company: |
· Reliance Communications Limited, India |
|
|
|
|
Subsidiary : |
· Netizen Rajasthan Limited CIN No.: U45400MH2000PLC128387 · Reliance Global IDC Limited (Merged with the company with effect from 01st January 2011) CIN No.: U72900MH2000PLC128386 |
|
|
|
|
Fellow
Subsidiary : |
·
Reliance Webstores Limited ·
Reliance Telecom Limited ·
Reliance Infocomm Infrastructure Private Limited ·
Reliance Global BV ·
Reliance Telecom Infrastructure (Cyprus) Holding
Limited |
CAPITAL STRUCTURE
AS ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
7500000000 |
Equity Shares |
Rs.10/- Each |
Rs.75000.000 Millions |
|
500000000 |
Preference Shares |
Rs.10/- Each |
Rs.5000.000 Millions |
|
|
Total |
|
Rs.80000.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
2793141868 |
Equity Shares |
Rs.10/- Each |
Rs.27931.419
Millions |
|
40000000 |
Preference Shares |
Rs.10/- Each |
Rs.400.000
Millions |
|
|
Total |
|
Rs.28331.419 Millions |
NOTES:
1. As at 31st
March, 2011, out of the above Equity Shares:
a. 2226415796
Equity Shares of the Company are held by the Holding Company, Reliance
Communications Infrastructure Limited and its nominees.
b. 413064770
Equity Shares are held by subsidiaries of Reliance Communications Limited,
Ultimate Holding Company.
2. Out of the
above Equity Shares, 100010000 were allotted, as fully paid up, pursuant to the
Scheme of Amalgamation between Reliance Next Generation Technology Private
Limited and the Company without payment being received in cash.
3. Out of the above
Equity Shares, 997550667 Equity Shares of Rs.10 each fully paid issued as Bonus
shares in proportion of 5 Equity Shares for every 2 Equity Shares of Rs.10 each
by capitalisation of Share Premium amounting to Rs. 9975.500 Millions allotted
on 19th September 2009.
4. On 5th
September, 2009, the Company allotted 150 00 000 8% Redeemable Non Cumulative
Non Convertible Preference Shares of Rs.10 each at a premium of Rs.990 per
share aggregating Rs.15000.000 Millions to Reliance Communications Limited .
5. During the year
2010-11, the following changes have been effected to the Share Capital.
a. On 30th October
2010, Authorised Share Capital of the Company has increased from Rs.25000.000
Millions to Rs.80000.000 Millions comprising of 500.000 Millions Preference
Shares of Rs.10 each and 7500.000 Millions Equity Shares of Rs.10 each.
b. On 8th
November, 2010, the Company allotted 250 00 000 8% Redeemable Non Cumulative
Non Convertible Preference Shares of Rs.10 each at a premium of Rs.990 per
share aggregating Rs.25000.000 Millions to Reliance Communications Limited.
c. 1396570934
Equity Shares of Rs.10 each fully paid issued as Bonus shares in proportion of
1 Equity Share for every 1 Equity Share of Rs. 10 each by capitalisation of
Share Premium amounting to Rs.13965.700 Millions allotted on 11th November,
2010.
6. The Redeemable
Preference Shares (RPS) shall be redeemed at the end of 20 years from the date
of allotment, at 8.85% yield per annum on face value plus premium paid at the
time of application. However, if dividend has been paid in any year same will
be reduced while calculating 8.85% yield p.a. at the time of redemption. At the
option of holders of Preference Shares, the Preference Shares can be redeemed,
at 8.85% yield p.a. on face value plus premium paid at the time of application,
any time after the date of allotment by giving not less than 3 months advance
request to the Company.
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 |
28331.400 |
14115.700 |
3990.200 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
44130.200 |
37526.500 |
36377.700 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
72461.600 |
51642.200 |
40367.900 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
37905.800 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
78869.800 |
112501.200 |
151612.900 |
|
|
TOTAL BORROWING |
116775.600 |
112501.200 |
151612.900 |
|
|
DEFERRED TAX LIABILITIES |
3668.000 |
731.900 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
192905.200 |
164875.300 |
191980.800 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
109895.800 |
131145.000 |
147513.300 |
|
|
Capital work-in-progress |
24493.500 |
23854.100 |
38065.200 |
|
|
|
|
|
|
|
|
INVESTMENT |
10000.500 |
1.000 |
0.100 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
282.100
|
356.300
|
449.800
|
|
|
Sundry Debtors |
4932.100
|
1686.800
|
6198.900
|
|
|
Cash & Bank Balances |
780.200
|
29.000
|
1538.300
|
|
|
Other Current Assets |
32.900
|
0.600
|
8930.600
|
|
|
Loans & Advances |
23242.900
|
16151.100
|
4917.500
|
|
Total
Current Assets |
29270.200
|
18223.800 |
22035.100
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
8967.900 |
25428.300 |
14000.400
|
|
|
Other Current Liabilities |
3296.900
|
3140.100
|
1632.300
|
|
|
Provisions |
0.000
|
0.200
|
0.200
|
|
Total
Current Liabilities |
12264.800
|
28568.600 |
15632.900
|
|
|
Net Current Assets |
17005.400
|
(10344.800) |
6402.200
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
31510.000 |
20220.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
192905.200 |
164875.300 |
191980.800 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
66584.000 |
62765.200 |
49198.100 |
|
|
|
Other Income |
154.100 |
2.200 |
141.900 |
|
|
|
TOTAL (A) |
66738.100 |
62767.400 |
49340.000 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing Service Costs |
21034.600 |
23450.300 |
|
|
|
|
Employee Related Expenses |
873.700 |
245.000 |
|
|
|
|
Administrative, Selling, Other Expenses |
398.400 |
8541.800 |
15537.900 |
|
|
|
TOTAL (B) |
22306.700 |
32237.100 |
15537.900 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
44431.400 |
30530.300 |
33802.100 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
10761.100 |
3064.400 |
1293.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
33670.300 |
27465.900 |
32508.500 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
22472.000 |
17678.200 |
16654.100 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
11198.300 |
9787.700 |
15854.400 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
2936.100 |
731.900 |
(1002.800) |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
8262.200 |
9055.800 |
16857.200 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
29119.000 |
20063.200 |
3206.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
20000.000 |
0.000 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
17381.200 |
29119.000 |
20063.200 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Interest |
NA |
0.000 |
3.800 |
|
|
|
Dividend |
NA |
0.000 |
138.900 |
|
|
TOTAL EARNINGS |
NA |
0.000 |
142.700 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Capital Goods |
NA |
585.800 |
9892.700 |
|
|
TOTAL IMPORTS |
NA |
585.800 |
9892.700 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
2.96 |
3.24 |
-- |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
12.38
|
14.43 |
34.17
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
16.82
|
15.59 |
39.47
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
8.05
|
6.55 |
9.35
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.15
|
0.19 |
0.39
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
1.61
|
2.18 |
3.76
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.39
|
0.64 |
1.41
|
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITORS
DETAILS:
|
Particulars |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
(Rs. In Millions) |
||
|
|
|
|
|
|
Sundry Creditors
|
|
|
|
|
-
Creditors dues
Small Micro Enterprises |
348.800 |
947.700 |
591.000 |
|
-
Creditors Due Others |
8619.100 |
24480.600 |
13409.400 |
|
|
|
|
|
|
Total |
8967.900 |
25428.300 |
14000.400 |
|
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 |
No |
|
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 |
OPERATIONS
The Company, in
the fourth year of full operations, has registered an increase of 6% in total
income to Rs.66738.100 Millions against Rs.
62767.400 Millions in the previous year. The profit after tax stands at Rs.
8262.200 Millions against Rs. 9055.800 Millions during the previous financial
year.
The Company is a
leading passive telecommunication infrastructure provider in India, based on
the number of telecommunication towers that it owns. The Company builds, owns
and operates telecommunication towers and related assets at designated sites
and provides these passive telecommunication infrastructure assets on a shared
basis to wireless service providers and other communications service providers
under long-term contracts. These customers use the space on the
telecommunication towers to install their active communication related
equipment to operate their wireless communications networks.
The demand of the
Indian market coupled with the emergence of new technologies will be the key
driver for the Company. Entry of new mobile operators will be proved beneficial
to the Company. Our portfolio of towers is one of the youngest portfolio with an
average age of 4 years. All existing towers are designed to handle upto 4
tenants without any further capital expenditure and upto 7 tenants with
relatively minimal incremental capex.
The Company has
entered into various contracts in the areas of passive telecommunication
infrastructure service businesses. While benefits from such contracts will
accrue in the future years, their progress is periodically reviewed.
CHANGES IN CAPITAL
STRUCTURE
During the year,
pursuant to the approval received from the members, the Company had increased
its Authorized Share Capital from Rs. 25000.000 Millions to Rs.80000.000
Millions with effect from 30th October, 2010. Also, the Company had issued and
allotted 2,50,00,000, 8% Redeemable Non convertible Preference shares of
Rs.10/- each at a premium of Rs.990/- per preference shares to Reliance
Communications Limited, holding company.
ISSUE OF BONUS
EQUITY SHARES
The Company had further allotted Bonus Equity Shares in the ratio of 1:1
(one for one) out of Securities Premium Account to the tune of Rs.1,3965.700
Millions as per the approval at Extraordinary General Meeting held on 30th
October, 2010.
PRESS RELEASE
RCOM SHAREHOLDERS APPROVE SCHEME OF ARRANGEMENT FOR
DEMERGER OF FIBER OPTICE DIVISION
Scheme of arrangement for demerger of optic fiber
division of Reliance Communications Limited to Reliance Infratel Limited
approved by the shareholders of RCOM
Mumbai, May 26, 2009: The Equity shareholders of Reliance Communications Limited (RCOM) at their Meeting convened as per the Order of the Hon'ble High Court of Judicature at Bombay, held on 26th May, 2009, have approved the Scheme of Arrangement (Scheme) between RCOM and Reliance Infratel Limited for demerger of the Optic Fiber Division of RCOM to Reliance Infratel Limited under Sections 391 to 394 of the Companies Act, 1956, with the requisite majority. Reliance Infratel is the Subsidiary of RCOM.
The demerger of Optic Fiber Division of RCOM would benefit the respective
companies and the stakeholders on account of:
a) Reduced set-up and operating costs resulting in cost efficiency coupled with
a greater financial flexibility;
b) Segregation of the business of providing telecommunication services and the
business of providing Infrastructure on a consolidated basis, thereby enabling
each of the companies to concentrate on its core business activities;
c) Promote high valued standalone business by conversion of cost-centric assets
to revenue-centric ones by sharing of the Infrastructure of Reliance Infratel
Limited with other wireless service providers operating in the same field.
The said Scheme is now subject to requisite approvals and sanctions, inter-alia
of Hon/ble High Court of Judicature at Bombay.
About
Reliance Communications
Reliance Communications Limited founded by the late Mr. Dhirubhai H Ambani
(1932- 2002) is the flagship company of the Reliance Anil Dhirubhai Ambani
Group. The Reliance Anil Dhirubhai Ambani Group currently has market
capitalization of around Rs 1650000.000 Millions (US$ 35.1 Bn), net worth in excess of Rs
640000.000 Millions (US$ 13.6 Bn), operating cash flow of Rs 130000.000
Millions (US$ 2.8 Bn) and net profit of around Rs.84000.000 Millions (US$ 1.8
Bn).
Reliance Communications is India's foremost and truly integrated
telecommunications service provider. The Company, with a customer base of over
77 million including over 2 million individual overseas retail customers, ranks
among the Top 10 Telecom companies in the world by number of customers in a single
country. Reliance Communications corporate clientele includes 2,100 Indian and
multinational corporations, and over 800 global, regional and domestic
carriers.
Reliance Communications has established a pan-India, next generation,
integrated (wireless and wireline), convergent (voice, data and video) digital
network that is capable of supporting best-of-class services spanning the
entire communications value chain, covering over 20,000 towns and 450,000
villages. Reliance Communications owns and operates the world's largest next
generation IP enabled connectivity infrastructure, comprising over 175,000
kilometers of fibre optic cable systems in India, USA, Europe, Middle East and
the Asia Pacific region.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l Anti-Money
Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws, regulations
or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.09 |
|
|
1 |
Rs.83.12 |
|
Euro |
1 |
Rs.72.02 |
INFORMATION DETAILS
|
Information
Gathered by : |
SVA |
|
|
|
|
Report Prepared
by : |
BSN |
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 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
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.