MIRA INFORM REPORT
|
Report Date : |
01.07.2013 |
IDENTIFICATION DETAILS
|
Name : |
QUADRANT TELEVENTURES LIMITED (w.e.f. 24.09.2010) |
|
|
|
|
Formerly Known
as : |
HFCL INFOTEL LIMITED (w.e.f.12.05.2003) THE INVESTMENT TRUST OF INDIA LIMITED |
|
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|
Registered
Office : |
Autocars Compound, Adalat Road, Aurangabad - 431005, Maharashtra |
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|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
02.08.1946 |
|
|
|
|
Com. Reg. No.: |
11-197474 |
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|
|
|
Capital
Investment / Paid-up Capital : |
Rs.8371.057 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L00000MH1946PLC197474 |
|
|
|
|
Legal Form : |
Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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|
|
|
Line of Business
: |
Providing Telecommunication Services |
|
|
|
|
No. of Employees
: |
524 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca (18) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having a moderate track record.
There appear huge accumulated losses recorded by the company. The liquidity
position is weak. However, trade relations are reported to be fair. Business is active.
Payments are reported to be slow. The company can be considered for business on a safe and secured 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.
ECGC Country Risk Classification List – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
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.
LOCATIONS
|
Registered Office : |
Autocars Compound, Adalat Road, Aurangabad - 431005, Maharashtra,
India |
|
Tel. No.: |
91-240-2320754 |
|
Fax No.: |
Not Available |
|
E-Mail : |
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|
Website : |
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Corporate / Head Office : |
B – 71, Phase VII, Industrial Focal Point, Mohali – 160055, Punjab,
India |
|
Tel No. : |
91-172-5090000 |
|
Fax No : |
91-172-5090125 |
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|
|
|
Sales Office : |
Located At :
|
DIRECTORS
As on: 31.03.2012
|
Name : |
Mr. Rahul Sethi |
|
Designation : |
Directors |
|
Qualification : |
B.Com |
|
Date of Birth : |
02.12.1951 |
|
Date of Appointment : |
17.03.2012 |
|
|
|
|
Name : |
Mr. Yatinder Vir Singh |
|
Designation : |
Directors |
|
Qualification : |
B.Com, M.Com |
|
Date of Birth : |
16.08.1962 |
|
Date of Appointment : |
09.04.2010 |
|
|
|
|
Name : |
Mr. Babu Mohanlal Panchal |
|
Designation : |
Directors |
|
|
|
|
Name : |
Mr. Viney Kumar (Nominee of IDBI Bank) |
|
Designation : |
Directors |
|
|
|
|
Name : |
Mr. Vinay Kumar Monga |
|
Designation : |
Directors |
KEY EXECUTIVES
|
Name : |
Mr. Kapil Bhalla |
|
Designation : |
Company Secretary, Manager and Compliance
Officer |
|
|
|
|
Audit Committee : |
Mr. Babu Mohanlal Panchal Mr. Viney Kumar (Nominee IDBI Bank) Mr. Yatinder Vir Singh Mr. Vinay Kumar Monga |
|
|
|
|
Share Transfer And Investor’s Grievance Committee
: |
Mr. Babu Mohanlal Panchal Mr. Yatinder Vir Singh Mr. Vinay Kumar Monga |
|
|
|
|
Remuneration Committee : |
Mr. Babu Mohanlal Panchal Mr. Yatinder Vir Singh Mr. Vinay Kumar Monga |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 31.03.2013
|
Category of Shareholder |
Total No. of
Shares |
Total
Shareholding as a % of total No. of Shares |
|
|
|
|
|
A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
326705000 |
53.36 |
|
|
326705000 |
53.36 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
326705000 |
53.36 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
183357252 |
29.95 |
|
|
125000 |
0.02 |
|
|
183482252 |
29.97 |
|
|
|
|
|
|
77157329 |
12.60 |
|
|
|
|
|
|
11384648 |
1.86 |
|
|
11789526 |
1.93 |
|
|
1741513 |
0.28 |
|
|
8426 |
0.00 |
|
|
1339990 |
0.22 |
|
|
390322 |
0.06 |
|
|
2775 |
0.00 |
|
|
102073016 |
16.67 |
|
Total Public shareholding (B) |
285555268 |
46.64 |
|
Total (A)+(B) |
612260268 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
612260268 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Providing Telecommunication Services |
GENERAL INFORMATION
|
No. of Employees : |
524 (Approximately) |
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Bankers : |
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Facilities : |
NOTE : a)
Secured Loan from Banks and Financial
Institutions will be converted in to Non-Convertible Debentures of equal
amount as per New Restructuring Scheme dated August 13, 2009. b)
Yield of Interest and Premium on redemption of
Secured Non-Convertible Debentures is 8% p.a. c)
Secured Loan Convertible into Non-Convertible
Debentures as per CDR is secured by first pari passu charge on movable and
immovable fixed assets and first pari passu charge on Current Assets,
assignment of license / contracts d)
Redemption Schedule of the Secured Non
Convertible Debenture.
e)
Vehicle Loan is secured by hypothecation of
respective vehicle. f)
On October 16, 2004, the Company issued 1,667,761
zero percent Non Convertible Debentures (‘NCDs’) of Rs 100 each in lieu of
interest accrued on term loans from a financial institution and a bank for
the period April 1, 2003 to December 31, 2003. The ‘NCD’s earlier redeemable
at par on March 31, 2014, are now redeemable at par on March 31, 2016 after
repayment of the term loans as per Reworked Restructuring Scheme dated June
24, 2005 effective from April 1, 2005. Working capital
loan is secured by first pari passu charge on movable and immovable fixed
assets and first pari passu charge on Current Assets, assignment of license /
contracts. |
|
Banking
Relations : |
-- |
|
|
|
|
Financial Institutions
: |
LIC of India |
|
|
|
|
Auditors : |
|
|
Name : |
Khandelwal Jain and Company Chartered Accountants |
|
|
|
|
Internal Auditor : |
Ernst and Young |
|
|
|
|
Holding Company
: |
Quadrant Enterprises Private Limited |
CAPITAL STRUCTURE
As on: 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1200000000 |
Equity Shares |
Rs.10/- each |
Rs.12000.000 Millions |
|
30000000 |
2% Preferences Shares |
Rs.100/- each |
Rs.3000.000 Millions |
|
|
Total |
|
Rs. 15000.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
612260268 |
Equity Shares |
Rs.10/- each |
Rs.6122.603 Millions |
|
6500000 |
2% Cumulative Redeemable Preferences Shares |
Rs.100/- each |
Rs.650.000 Millions |
|
15984543 |
2% Cumulative Redeemable Preferences Shares |
Rs.100/- each |
Rs.1598.454 Millions |
|
|
Total |
|
Rs.8371.057
Millions |
(a) Of the above
(i) 490,750 equity shares of Rs 10 each were allotted as
fully paid bonus shares in the earlier years by way of capitalization of
reserves.
(ii) 326,705,000 (equity shares are held by
Quadrant Enterprises Private Limited (Holding Company).
(iii) 83,070,088 equity shares of Rs 10 each were
allotted on October 16, 2004, pursuant to the Corporate Debt Restructuring
(‘CDR’) Scheme dated March 10, 2004. Out of these, 63,373,110 equity shares of
Rs 10 each were issued by the Company to Industrial Development Bank of India
(‘IDBI’), at par and the balance of 12,171,778 and 7,525,200 equity shares of
Rs 10 each to Oriental Bank of Commerce (‘OBC’) and ING Vysya Bank Limited
(‘ING’), respectively, at a premium of Re 0.50 per equity share as per
provisions of applicable law.
(iv) 8,67,43,116 equity shares of Rs.10/- each
were issued on July 08, 2009 after obtaining in principle approval from the BSE
and MSE, consequent to the conversion of Optionally Fully Convertible
Debentures (OFCDs) pursuant to the Corporate Debt Restructuring (CDR) Cell.
(b) The Company in accordance with the scheme of
amalgamation approved by the High Court of the State of Punjab and Haryana and
the State of Tamilnjadu on March 6, 2003 and March 20, 2003, respectively under
section 391 and 394 of the Companies Act, 1956, the erstwhile HFCL Infotel
Limited (name earlier allotted to the transferor company), amalgamated with
HFCL Infotel Limited now Quadrant Televentures Limited, (formerly The
Investment Trust of India Limited). Subsequent to the approved amalgamation:
(i) 432,000,250 equity shares of Rs 10 each issued for
consideration other than cash pursuant to the amalgamation of erstwhile HFCL
Infotel Limited with the Company.
(ii) 1,730,814 equity shares of Rs 10 each were
allotted on October 13, 2003, on conversion of the warrants issued to the
shareholders of The Investment Trust of India Limited prior to June 11, 2003.
(c) Of the above
(i) 6,500,000 7.5 per cent CRPS were allotted on
October 16, 2004, pursuant to the CDR Scheme, where under the specified part of
the amount due to CRPS Holder by the Company was converted into 7.5 per cent
CRPS redeemable after the repayment of Rupee Term Loan (in Financial Year
2016-17). As per the CDR Scheme, prior approval of the lenders would be
required to declare dividend on 7.5 per cent CRPS and all the voting rights
attached to the CRPS to be assigned in favour of the term lenders. On June 24,
2005 as per Reworked Restructuring Scheme, the dividend percentage was reduced
to 2 per cent from 7.5 per cent with effect from date of issuance of CRPS. New
Restructuring Scheme dated August 13, 2009 does not stipulate any reference to
the aforesaid CRPS. Accordingly the CRPS shall be redeemable in the Financial
Year 2016-17 With reference to Reworked Restructuring Scheme dated June 24,
2005
(ii) 15,984,543 2% Cumulative Redeemable
Preference Shares of Rs. 100/- fully paid up, aggregating up to Rs. 1598.454
Millions were allotted on November 9, 2011 to the Banks and Financial
Institution, namely, IDBI Bank Limited, Life Insurance Corporation of India,
Oriental Bank of Commerce, ING Vysya Bank and State Bank (CDR Cell) vide their
letter dated August 13, 2009, in conversion of 25% of their outstanding loans;
the CRPSs shall be redeemed (monthly) over a period of four years commencing
from April 1, 2021 at a premium of 34%.
(iii) Due to accumulated losses provision for
dividend on CRPS of Rs 650.000 Millions and Rs 1598.454 millions and premium on
redemption of CRPS of Rs 1598.454 millions is not required and hence not
provided for in the financials.
(iv) Details of share holding
more than 5% shares in the company
|
Name of the
shareholder |
No. of Shares |
% of holding in the class |
|
Equity Shares |
|
|
|
Quadrant
Enterprises Private Limited |
326705000 |
53.36 |
|
IDBI Bank
Limited |
118271642 |
19.32 |
|
Oriental Bank of
Commerce |
39073070 |
6.38 |
|
|
|
|
|
Preference
Shares |
|
|
|
IDBI Bank
Limited |
10569187 |
47.01 |
|
Shree Dhoot
Trading and Agencies Limited |
6500000 |
28.91 |
|
Oriental Bank of
Commerce |
1981254 |
8.81 |
|
Life Insurance
Corporation of India |
1981165 |
8.81 |
(v) Reconciliation of number of equity shares
outstanding at the beginning and at the end of the year
|
Equity Shares |
March 31, 2012 No. of Shares |
|
Number of Equity shares at the beginning |
612,260,268 |
|
Add: Shares issued during the year |
-- |
|
Number of shares at the end |
612,260,268 |
|
|
|
|
Number of Preference shares at the beginning |
22,484,543 |
|
Add: Shares issued during the year |
-- |
|
Number of shares at the end |
22,484,543 |
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 |
|
8371.057 |
8371.057 |
|
(b) Reserves & Surplus |
|
(15360.030) |
(13568.428) |
|
(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) |
|
(6988.973) |
(5197.371) |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
|
5872.385 |
5872.456 |
|
(b) Deferred tax liabilities (Net) |
|
0.000 |
0.000 |
|
© Other long term
liabilities |
|
966.109 |
818.677 |
|
(d) long-term
provisions |
|
32.726 |
26.372 |
|
Total Non-current
Liabilities (3) |
|
6871.220 |
6717.505 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
|
170.168 |
171.631 |
|
(b) Trade
payables |
|
1031.777 |
1188.852 |
|
© Other
current liabilities |
|
6567.933 |
5505.583 |
|
(d) Short-term
provisions |
|
18.207 |
15.442 |
|
Total Current
Liabilities (4) |
|
7788.085 |
6881.508 |
|
|
|
|
|
|
TOTAL |
|
7670.332 |
8401.642 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
|
4544.842 |
4912.663 |
|
(ii)
Intangible Assets |
|
1875.032 |
2214.673 |
|
(iii)
Capital work-in-progress |
|
184.431 |
305.426 |
|
(iv)
Intangible assets under development |
|
0.000 |
0.000 |
|
(b) Non-current Investments |
|
0.100 |
0.100 |
|
(c) Deferred tax assets (net) |
|
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
|
125.834 |
85.813 |
|
(e) Other
Non-current assets |
|
0.000 |
0.000 |
|
Total Non-Current
Assets |
|
6730.239 |
7518.675 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
|
0.000 |
0.000 |
|
(b)
Inventories |
|
18.446 |
23.088 |
|
(c) Trade
receivables |
|
537.067 |
496.182 |
|
(d) Cash
and cash equivalents |
|
115.069 |
85.843 |
|
(e)
Short-term loans and advances |
|
267.881 |
272.422 |
|
(f) Other
current assets |
|
1.630 |
5.432 |
|
Total
Current Assets |
|
940.093 |
882.967 |
|
|
|
|
|
|
TOTAL |
|
7670.332 |
8401.642 |
|
SOURCES OF FUNDS |
|
|
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
|
6772.603 |
|
|
2] Share Application Money |
|
|
0.000 |
|
|
3] Reserves & Surplus |
|
|
68.566 |
|
|
4] (Accumulated Losses) |
|
|
(11400.327) |
|
|
NETWORTH |
|
|
(4559.158) |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
|
6552.851 |
|
|
2] Unsecured Loans |
|
|
1169.129 |
|
|
TOTAL BORROWING |
|
|
7721.980 |
|
|
DEFERRED TAX LIABILITIES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
3162.822 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
|
3736.145 |
|
|
Capital work-in-progress |
|
|
843.115 |
|
|
Intangible Assets |
|
|
2556.504 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
0.100 |
|
|
DEFERREX TAX ASSETS |
|
|
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
24.064 |
|
|
Sundry Debtors |
|
|
278.160 |
|
|
Cash & Bank Balances |
|
|
123.914 |
|
|
Other Current Assets |
|
|
18.404 |
|
|
Loans & Advances |
|
|
210.584 |
|
Total
Current Assets |
|
|
655.126 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
|
4293.014 |
|
|
Other Current Liabilities |
|
|
304.287 |
|
|
Provisions |
|
|
30.867 |
|
Total
Current Liabilities |
|
|
4628.168 |
|
|
Net Current Assets |
|
|
(3973.042) |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
3162.822 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
2813.018 |
2360.512 |
1962.089 |
|
|
|
Other Income |
15.889 |
22.869 |
16.071 |
|
|
|
TOTAL (A) |
2828.907 |
2383.381 |
1978.160 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Network Operation Expenditure |
2164.992 |
1978.564 |
|
|
|
|
Employee Benefits Expenses |
446.215 |
453.784 |
|
|
|
|
Sales & Marketing Expenditure |
203.780 |
402.311 |
|
|
|
|
Other Expenses |
322.635 |
276.479 |
|
|
|
|
TOTAL (B) |
3137.622 |
3111.138 |
1934.098 |
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND
AMORTISATION (A-B) (C) |
(308.715) |
(727.757) |
39.482 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
281.177 |
278.671 |
(704.236) |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS)
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)
(E) |
(589.892) |
(1006.428) |
743.718 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1201.710 |
1230.239 |
950.165 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) BEFORE TAX (E-F) (G) |
(1791.602) |
(2236.667) |
(206.447) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) AFTER TAX (G-H) (I) |
(1791.602) |
(2236.667) |
(206.447) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(13636.994) |
(11400.327) |
(11193.880) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(15428.596) |
(13636.994) |
(11400.327) |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Import of capital equipment (other than telephone instruments) |
39.972 |
1039.157 |
863.258 |
|
|
|
Import of telephone instruments |
11.592 |
21.590 |
5.390 |
|
|
|
Components and Spares |
2.729 |
6.631 |
4.237 |
|
|
TOTAL IMPORTS |
54.293 |
1067.378 |
872.885 |
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss)
Per Share (Rs.) |
(2.93) |
(3.65) |
(0.35) |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
31.12.2012 |
31.03.2013 |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
|
Unaudited |
Unaudited |
Unaudited |
Unaudited |
|
Net Sales |
790.400 |
835.400 |
850.400 |
882.200 |
|
Total Expenditure |
874.200 |
871.400 |
813.100 |
683.400 |
|
PBIDT (Excl OI) |
(83.800) |
(35.900) |
37.200 |
198.800 |
|
Other Income |
06.500 |
05.300 |
07.800 |
08.300 |
|
Operating Profit |
(77.300) |
(30.600) |
45.000 |
207.100 |
|
Interest |
70.500 |
70.500 |
69.900 |
69.700 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
(147.900) |
(101.100) |
(24.900) |
137.300 |
|
Depreciation |
304.500 |
302.200 |
309.600 |
3020.00 |
|
Profit Before Tax |
(452.300) |
(403.300) |
(334.600) |
(164.700) |
|
Tax |
0.000 |
0.000 |
0.000 |
0.000 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
(452.300) |
(403.300) |
(334.600) |
(164.700) |
|
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 |
(452.300) |
(403.300) |
(334.600) |
(164.700) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
(63.33)
|
(93.84) |
(10.44) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(63.69)
|
(94.75) |
(10.52) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(12.71)
|
(27.92) |
(2.97) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.26
|
0.43 |
0.04 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
(0.86)
|
(1.16) |
(1.69) |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.12
|
0.13 |
7.06 |
LOCAL AGENCY FURTHER INFORMATION
|
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 |
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 |
No |
UNSECURED LOAN:
|
Particulars |
31.03.2012 [Rs.
in Millions] |
31.03.2011 [Rs.
in Millions] |
|
Long Term
Borrowing |
|
|
|
Zero per cent Non Convertible Debentures ('NCDs') (erstwhile OFCDs) |
166.776 |
166.776 |
|
Loans from Body Corporate |
2508.700 |
2508.700 |
|
Total |
2675.476 |
2675.475 |
BACKGROUND:
NATURE OF BUSINESS AND OWNERSHIP:
Subject (‘the
Company’ or ‘QTL’), Unified Access Services Licensee for Punjab Circle
(including Chandigarh and Panchkula), is providing complete telecommunication services,
which includes voice telephony, both wireline and fixed wireless, CDMA and GSM
based mobiles, internet services, broadband data services and a wide range of
value added service viz., centrex, leased lines, VPNs, voice mail, etc. The
services were commercially launched in October 2000 and as on March 31, 2012,
the Company has an active subscriber base of over 1,682,567.
The Company was
incorporated on August 2, 1946 with the name of The Investment Trust of India
Limited (ITI) which was subsequently changed to HFCL Infotel Limited on May 12,
2003. This was done pursuant to a Scheme of amalgamation (the Scheme), approved
by the Hon’ able High Court of the State of Punjab and Haryana and the State of
Tamil Nadu on March 6, 2003 and March 20, 2003, respectively, whereby the erstwhile HFCL Infotel Limited
(name earlier allotted to the transferor Company) (‘erstwhile HFCL Infotel’) was merged with the Company with
effect from September 1, 2002. As per the Scheme envisaged, the Company’s then
existing business of hire purchase, leasing and securities trading was
transferred by way of slump sales to its wholly owned subsidiary, Rajam Finance
and Investments
Company (India)
Limited (‘Rajam Finance’) with effect from September 1, 2002. Rajam Finance was
renamed as The Investment Trust of India Limited with effect from June 17, 2003
and it ceased to be the subsidiary of the Company with effect from September
30, 2003, due to allotment of fresh equity by Rajam Finance to other investors.
The Company,
during the year ended March 31, 2004, surrendered its license granted by
Reserve Bank of India (‘RBI’) to carry out NBFC business. RBI confirmed the
cancellation of the NBFC license as per their letter dated May 24, 2004.
On September 24,
2010 the name of Company was changed to Quadrant Televentures Limited. During
the year ended March 31, 2009, the Company had incorporated one wholly owned
subsidiary Company, Infotel Tower Infrastructure Private Limited (‘ITIPL’) with
an investment of Rs. 99,800 During the year ended March 31,2011 the Company has
acquired beneficial interest in the remaining 20 equity shares which were
earlier held by the subscribers to the Memorandum of Association. Declaration
of beneficial Interest in the said shares has been duly filed with the Registrar
of Companies. Consequently, the company now holds 100% of the issued equity
share capital in the subsidiary company. The principal business of the Company
is building, establishing, setting-up, accruing, developing, advising on,
managing, providing, operating and/or maintaining, facilitating conduct of,
fully or partially infrastructure facilities and services thereof for all kinds
of value added services including Broadband Towers for telecom
operations/services, payment gateway services and international gateway
services.
LICENSE FEES:
The Company
obtained license for Basic Telephony Service for the Punjab circle (including
Chandigarh and Panchkula) by way of amalgamation of the erstwhile HFCL
Infotel with the Company. Erstwhile HFCL Infotel had obtained this
license under fixed license fee regime under National Telecom Policy (‘NTP’)
1994, valid for a period of 20 years from the effective date, and subsequently
migrated from the fixed license fee regime to revenue sharing regime upon
implementation of NTP 1999. Further to the Telecom Regulatory Authority of
India’s (‘TRAI’) recommendations of October 27, 2003 and the Department of
Telecommunications (‘DOT’) guidelines on Unified Access (Basic and Cellular)
Services License (‘UASL’) dated November 11, 2003, the Company migrated its
license to the UASL regime with effect from November 14, 2003. A fresh License
Agreement was signed on May 31, 2004. Pursuant to this migration, the Company
became additionally entitled to provide full mobility services. HFCL Infotel
also entered into a License Agreement dated June 28, 2000, and amendments
thereto, with DOT to establish maintain and operate internet service in Punjab
circle (including Chandigarh and Panchkula).
Fixed license fees
of Rs 1775.852 millions paid under the old license fee regime from inception
till July 31, 1999, were considered as the License Entry Fees of the Punjab
circle (including Chandigarh and Panchkula) as part of the migration package to
NTP 1999.
With effect from
August 1, 1999, the Company is required to pay revenue share license fees as a
fraction of Adjusted Gross Revenue (‘AGR’). The revenue share fraction was set
at 10 per cent of AGR with effect from August 1, 1999 and was reduced to 8 per
cent of AGR with effect from April 1, 2004. In addition, spectrum charges
calculated at 3 per cent of the AGR earned through the wireless technology is
payable under the license agreement. Income from internet services is excluded
from the service revenue for the purpose of the calculation of AGR as it is
governed by a separate ISP license between the Company and the Department of
Telecommunications (‘DOT’).
During the year
ended March 31, 2008, the Company has deposited the entry fee of Rs 1517.500
millions with The Department of Telecommunication (‘DOT’) for the use of GSM
Technology in addition to CDMA technology being used under the existing Unified
Access Services License (‘UASL’) for the Punjab Service Area. The UASL has
since been amended to incorporate the license for use of GSM technology on
January 15, 2008 vide DOT’s letter number F.No.10-15/2004/BS.II/HITL/ Punjab/17
dated January 15, 2008. The Company has launched its GSM services on March 29,
2010 in Punjab Circle.
PROJECT FINANCING:
The Company’s
project was initially appraised by Industrial Development Bank of India
(‘IDBI’) during the year ended March 31, 2000.
Pursuant to the
migration to UASL regime, the consortium of lenders, led by IDBI, through the
Corporate Debt Restructuring (‘CDR’) mechanism approved an overall restructuring
of the liabilities of the Company and thereby revised the peak funding
requirements.
Further, the CDR
Empowered Group has approved the proposal of the Company for expansion of
services, change in the scope of the project, cost of project and means of
finance and restructuring of debt as per the reworked restructuring scheme
dated June 24, 2005.
During the year,
the Company has incurred losses of Rs 1,791,601,978 resulting into accumulated
loss of Rs 15,428,596,916 as at March 31, 2012 which has completely eroded its
net worth and has a net current liability of Rs 6,847,992,445 The ability of
the Company to continue as a going concern is substantially dependent on its
ability to successfully arrange the remaining funding and achieve financial closure
to fund its operating and capital funding requirements and to substantially
increase its subscriber base. The management in view of its business plans and
support from significant shareholders is confident of generating cash flows to
fund the operating and capital requirements of the Company. Accordingly, these
statements have been prepared on a going concern basis.
PERFORMANCE:
The Company holds
the UASL (Unified Access Services License) for providing Telephony Services in the
Punjab Telecom Service Area comprising of the state of Punjab, the union
territory of Chandigarh and the Panchkula Town of Haryana. Currently, the
Company is providing Fixed Voice (Landline) services, DSL (Internet) services,
Leased Line services, CDMA Mobile Services and GSM Mobile Services in the
Punjab Telecom Circle.
As on March 31,
2012, the Broadband DSL subscriber base touched 1,15,538 (previous Year
1,04,850) witnessing a growth of about 10%, and the Fixed Voice (Landline)
Subscriber Base touched 2,00,044 (previous year 1,89,988); the CDMA Mobile
Services Segment customer base at 27,768 subscribers (previous year 2,41,798 )
since many of the Subscribers have opted to shift to the GSM Services of the
Company by using the Mobile Number Portability (MNP) option.
As of March 31,
2012, the GSM Mobile Services Segment customer base has touched 1321225
(Previous Year 1227493) at the end of second year of operations.
The Revenue from
operations of the Company increased by 19 % from Rs.2360.510 millions in
2010-11 to Rs.2813.020 millions in 2011-12. The Total Expenses changed
marginally from Rs. 4620.040 millions in 2010-11 to Rs. 4620.490 millions in
2011-12.
Consequently the
Loss during the year reduced from Rs. 2236.670 millions in 2010-11 to Rs. 1791.600
millions in 2011-12.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT:
OVERVIEW:
Subject is a
Unified Access Services Licensee in the Punjab Telecom Circle, which comprises
of the state of Punjab, the Union Territory of Chandigarh and the Panchkula
town of Haryana. The Company initially started its operations as a ‘fixed line
service provider’ under the brand name “CONNECTS” in the year 2000.
Subsequently, the Company was granted the UASL License (Unified Access Services
License) in the Punjab Telecom Circle in 2003; In September 2007, the Company
launched its CDMA based full mobility services under the brand name “PING”. In
March 2010, the Company also launched its GSM based Mobile Services in Punjab
Telecom Circle. Apart from the UASL License, the Company also holds the ISP
Category B (Internet Service Provider) License for the Punjab Telecom Circle
and the IP-1 (Infrastructure Provider-Category – 1) License for providing
services in the Punjab Telecom Circle.
Currently, the
Company is providing Fixed Voice (Landline) services, DSL (Internet) services,
Leased Line services, CDMA Mobile Services and GSM Mobile Services in the
Punjab Telecom Circle.
As at 31.03.2012 ,
the company had a total subscriber base of 16,64,575 telephony customers,
including 2,00,044 fixed line customers, 1,15,538 Broadband customers 27,768
CDMA mobile customers and 13,21,225 GSM mobile customers.
The Company with
its extensive optic fiber cable network of over 3800 km, provides services in
over 150 cities / towns covering 52 of the 55 Short Distance Charging Areas
(“SDCAs”) of Punjab Telecom Circle, as defined by the Department of
Telecommunications, Ministry of Communications and Information Technology,
Government of India.
The Company had
launched its GSM Mobile Services in March 2010, in Punjab Telecom Circle.
Currently, there are 10 Operators providing GSM Mobile Service in Punjab
Telecom Circle. The Company’s GSM Services have been launched in a substantial
part of the Circle over the last one year in the face of intense competition
from the established Players who were already present and operating in the
Circle.
Key Business and
Financial highlights for the financial year ended 31.03.2012 are:
- The Broadband customer base has increased by
10% to 115538 (previous year 104850).
- CDMA based mobile customer base has gone down
to 27,768 (previous year 241798) – pursuant to migration to GSM Services
of the Company.
- The Fixed Voice Subscriber base has increased
to 200044 (previous year 189988).
- GSM based Mobile Subscriber base now stands at
1321225 (previous year 1227493).
- During the financial year 2011-12, the
Company generated gross revenue of Rs. 2813.010 millions, which is higher
by 19% as compared to the previous year’s Rs. 2360.510 millions.
INDUSTRY STRUCTURE
The
Telecommunication Services Sector operates in a licensed and highly regulated
environment. The sector can be classified in terms of segments for which the
Government of India (GOI) issues Licenses through the Department of Telecommunications
(DOT):
- Unified Access Service Operators (UAS) –
Offering fixed line and Mobile Services.
- National Long Distance Operators (NLDO) –
Interlinking the Access Operators.
- International Long Distance Operators (ILDO)–
Connecting the domestic operators (Access and National Long Distance) with
operators in other countries.
- Other Value-added Services Providers –
Internet Access Services including Internet Telephony, VSAT based
services, Radio Paging Services, Public Mobile Radio Trunking Services,
Global Mobile Personal Communications Services through Satellite.
The Government of
India is empowered to decide on the policies that govern the Telecommunication
Services Sector and issue licenses to the private sector players. The
Government plays these roles through the Department of Telecommunications (DOT)
and the Telecom Commission, both functioning under the Ministry of
Communications and Information Technology.
Apart from the
above, the Telecom Regulatory Authority of India (TRAI), an autonomous body with
quasi-judicial powers to regulate the Telecommunications Services was
established in early 1997. The Act governing the establishment and role of TRAI
was amended in 2000, pursuant to which TRAI’s powers to adjudicate disputes
have been vested in the Telecom Disputes Settlement Appellate Tribunal (TDSAT).
KEY INDUSTRY
DEVELOPMENTS:
GROWTH AND MARKET
TRENDS:
The Indian Telecom
market has grown to 951.340 millions telecom subscribers as at March 31, 2012
(as against 846.320 millions telecom subscribers as at March 31, 2011). With
919.170 millions wireless connections there is an addition of over 8.500
millions connections per month.
The share of
private sector in Total Telephony is 87.01%. Overall teledensity has reached
78.66%. Urban Tele-density is about 169.55%, whereas rural teledensity is at
39.22% which is also steadily increasing. Broadband connections have also
crossed 13.810 millions connections.
The customer base
of Wire line Telephony has been overshadowed by the growth in mobile services
mainly due to convenience of use of mobile set with features like telephony
directory and SMS coupled with cheaper or more affordable tariffs.
Indian telecom
market has still a huge untapped potential to grow further. With a large
population yet to have access to telecommunication and tele-density still being
78.66% and rural tele-density being 39.22%; there is therefore a significant
growth opportunity for the sector, especially in rural areas with 3G and BWA
yet to make significant inroads. The rural market is expected to drive the next
round of growth for the voice based services while data services will create
the much needed boost in the maturing urban markets. One can therefore safely
assume that the Indian Telecom market will achieve the mark of one billion
telecom subscribers much before March 31, 2013.
BROADBAND:
It is necessary to
increase the broadband connectivity for the masses for the knowledge based
society to grow quickly and for reaping the consequent economic benefits.
Telecommunication is significantly driving the economic and social development
across the globe. The telecom industry in India too has achieved a tremendous
growth in the last decade; the telecom industry has now embarked on the
transition from voice services to data services. The voice telephony market has
almost attained saturation limits; however there is a huge scope for the
data/broadband services; the telecom sector with the support of the government
is taking great strides for providing the much needed boost to data/ broadband
services.
INSIGHTS:
- Broadband telephony in India has a great
opportunity.
- When mobile broadband picks up, there will be
greater scope for development.
- Wireless data services have captivated a major
chunk of internet customers in India. Several policies have been announced
and are being implemented by the Government in order to promote broadband
in the country.
- The coming year will provide a great boost for
the broadband services; there are quite a few significant strides being
undertaken by the government. The National Telecom Policy 2012 has
‘broadband on demand’ vision and intends to leverage telecom
infrastructure to offer internet and web economy in order to ensure
equitable and inclusive development across the country; NTP 2012 further
aims to strengthen the e-governance and mobile governance in key social
sectors such as health, education and agriculture. The Government
envisages to offer citizen centric democratic governance through the help
of technology by providing affordable and reliable broadband on demand by
2015 and to achieve 175 mn broadband connections by 2017 and 600mn by the
year 2020 at minimum 2 Mbps download speed and to make available higher
speeds of at least 100 Mbps on demand. Clearly, this will provide a
tremendous opportunity for all the internet service providers in India.
- Government is all set to provide national
optic fiber network to all village Panchayat by 2014. It has a dream to
provide broadband access for all by 2020. These prominent initiatives will
throw umpteen opportunities in the Indian broadband market. Broadband is
the key driver for many other technologies. Industry consensus is that
India would became the second largest mobile broadband market globally,
when mobile broadband picks up there will be greater scope for
development.
FUTURE
PERSPECTIVE:
After being in the
overdrive for the last one decade, the telecom sector has now come in the grip
of strong rates to woo customers has resulted in shrinking margins for almost
all the players – established as well as new; while the older established
players are able to survive on wafer thin margins on account of larger volumes,
the going has become very tough for the new entrants especially in view of the
high initial network costs and licensing issues. Currently the industry is
faced with high overheads and operating costs and continuously shrinking
margins and increasing competition.
OUTLOOK:
The Company foresees a high degree of competition in the years to come,
especially in the mobile telephony segment. The Company during the financial
year 2009-10 had expanded the wireless network footprint to most parts of
Punjab. In terms of subscriber base, all existing mobile operators are showing
a healthy growth pattern and no single major operators holds sway over the
market. The Company derives a substantial part of its earnings from wire line
(copper based network) services.
Even the overall market for Fixed Line services – the Company’s largest
service stream – has witnessed considerable growth and the Management believes
that the Company will sustain all round healthy growth in both the Wire line as
well as the GSM /CDMA segments on account of following factors:
- The planned expansion of wireless
services into Pan Punjab, at low incremental capital cost and low
incremental operating cost will help improve the overall asset utilization
and profitability ratios.
- The Company expects its subscriber base
to grow faster as the mobile telephony segment is growing significantly
faster than the fixed line segment.
- With equipment becoming cheaper in
recent times, the Company has started offering very affordable tariff
packages for broadband internet access services. Increasing demand for
high-speed Internet access would be a key driver for the Company’s copper
based wire line service.
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2012 [Rs. in
Millions] |
31.03.2011 [Rs. in
Millions] |
|
Estimated value of contracts remaining to be executed on capital
account and not provided for net of capital advances Rs. 3,987,253 (March 31,2011 Rs
2,677,951) Bank Guarantees
given against Bid Bonds/Performance/Advance |
64.947 |
296.672 |
|
Financial Bank
Guarantees |
82.843 |
74.134 |
|
Performance Bank
Guarantees |
53.052 |
53.542 |
|
Open Letter of Credits (Margin Deposit Rs. 18514929 [March 31, 2011 - Rs. 14143944)] |
18.515 |
14.144 |
|
Income tax
matters under appeal |
12.679 |
11.838 |
|
Claims against
the company not acknowledged as debts |
3.278 |
5.382 |
|
Dividend on 2% cumulative
redeemable preference shares ('CRPS') |
63.939 |
95.907 |
|
Others |
852.854 |
852.854 |
|
|
|
|
|
Total |
1152.107 |
1404.473 |
FIXED ASSETS:
- Land – Freehold
- Land – Leasehold
- Building
- Leasehold Improvements
- Network Equipment
- Optical Fibre Cable and Copper Cable
- Telephone Instruments at Customers Premises
- Computers Office Equipment
- Furniture and Fixture
- Vehicles
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 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.59.70 |
|
|
1 |
Rs.91.14 |
|
Euro |
1 |
Rs.77.98 |
INFORMATION DETAILS
|
Report Prepared
by : |
ANK |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
2 |
|
PAID-UP CAPITAL |
1~10 |
2 |
|
OPERATING SCALE |
1~10 |
2 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
2 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
2 |
|
--LEVERAGE |
1~10 |
2 |
|
--RESERVES |
1~10 |
2 |
|
--CREDIT LINES |
1~10 |
2 |
|
--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 |
|
18 |
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 |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.