MIRA
INFORM REPORT
|
Report Date : |
24.07.2013 |
IDENTIFICATION DETAILS
|
Name : |
TATA COMMUNICATIONS LIMITED |
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Registered
Office : |
V S B, |
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Country : |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
19.03.1986 |
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Com. Reg. No.: |
11-039266 |
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Capital
Investment / Paid-up Capital : |
Rs. 2850.000 Millions |
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CIN No.: [Company Identification
No.] |
L64200MH1986PLC039266 |
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|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMV07840A |
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PAN No.: [Permanent Account No.] |
AAACV2808C |
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Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on the
Stock Exchange. |
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Line of Business
: |
The Company is engaged in the business of Providing International
Telecommunications Services. |
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No. of Employees
: |
9474 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (76) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 300650000 |
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|
Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a part of Tata group a premiere industrial house in It is a well established and reputed company having fine track record.
The company has achieved a significant growth in its net profitability
during 2013. Financial position appears to be sound. Trade relations are fair. Business is active. Payment terms are
reported as regular and as per commitments. The company can be considered good for business dealings at usual
trade terms and conditions. |
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) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
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High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Non convertible debenture AA+ |
|
Rating Explanation |
High degree of safety and low credit risk. |
|
Date |
15.04.2013 |
|
Rating Agency Name |
CARE |
|
Rating |
Short term debt A1+ |
|
Rating Explanation |
Very strong degree of safety and low credit risk. |
|
Date |
15.04.2013 |
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.
LOCATIONS
|
Registered Office : |
V S B, |
|
Tel. No.: |
91-22-66578765 |
|
Fax No.: |
91-22-66395162 |
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E-Mail : |
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|
Website : |
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Corporate Office : |
Plot No. C21 and C36, “G” Block, Bandra Kurla Complex, Mumbai –
400098, |
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Tel. No.: |
91-22-66578765 |
|
Fax No.: |
91-22-66395162 |
DIRECTORS
As on : 31.03.2013
|
Name : |
Mr. Subodh Bhargava |
|
Designation : |
Chairman (Independent) |
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|
Name : |
Mr. Vinod Kumar |
|
Designation : |
Panatone Nominee |
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Name : |
N. Srinath |
|
Designation : |
Managing Director and Chief Executive Officer |
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|
Name : |
Mr. Kishor A. Chaukar |
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Designation : |
Panatone Nominee |
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Name : |
Mr. Amal Ganguli |
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Designation : |
Director (Independent) |
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Name : |
Mr. S. Ramadorai |
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Designation : |
Panatone Nominee |
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Name : |
Mr. S. Ramadorai |
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Designation : |
Director (Panatone Nominee) |
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|
Name : |
Mr. Arun Gandhi |
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Designation : |
Director (Panatone Nominee) |
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|
Name : |
Dr. Ashok Jhunjhunwala |
|
Designation : |
Director (Panatone Nominee) |
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|
Name : |
Dr. Uday B. Desai |
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Designation : |
Director (Independent) |
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|
Name : |
Mr. Ajay Kumar Mittal |
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Designation : |
Director (Government Nominee) |
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|
Name : |
Mr. Saurabh Kumar Tiwari |
|
Designation : |
Director (Government Nominee) |
KEY EXECUTIVES
|
Name : |
Mr. Satish Ranade |
|
Designation : |
Company Secretary and Chief Legal Officer |
|
Address : |
Plot No. C-21 and C-36, G Block, Bandra Kurla Complex, Bandra (East)
Mumbai – 400 098, |
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Tel. No.: |
91-22-66578765 |
|
Fax No.: |
91-22-67251962 |
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E-Mail : |
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|
Name : |
Mr. Sanjay Baweja |
|
Designation : |
Chief Financial Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on : 05.07.2013
|
Category of Shareholders |
No. of Shares |
Percentage of
holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
74446885 |
27.19 |
|
|
139286330 |
50.87 |
|
|
213733215 |
78.06 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
213733215 |
78.06 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
4212331 |
1.54 |
|
|
17005957 |
6.21 |
|
|
13288408 |
4.85 |
|
|
12918432 |
4.72 |
|
|
47425128 |
17.32 |
|
|
|
|
|
|
2551935 |
0.93 |
|
|
|
|
|
|
7455549 |
2.72 |
|
|
2267749 |
0.83 |
|
|
381398 |
0.14 |
|
|
10400 |
0.00 |
|
|
7250 |
0.00 |
|
|
363688 |
0.13 |
|
|
60 |
0.00 |
|
|
12656631 |
4.62 |
|
Total Public shareholding (B) |
60081759 |
21.94 |
|
Total (A)+(B) |
273814974 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
11185026 |
0.00 |
|
|
11185026 |
0.00 |
|
Total (A)+(B)+(C) |
285000000 |
0.00 |
Central Government / State Government(s)
Individual shareholders holding nominal
share capital up to Rs. 1 lakhBUSINESS DETAILS
|
Line of Business : |
The Company is engaged in the business of Providing International
Telecommunications Services. |
GENERAL INFORMATION
|
No. of Employees : |
9474 (Approximately) |
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Bankers : |
·
Axis Bank ·
Indian Bank ·
ANZ Bank ·
ICICI Bank Limited ·
Bank of ·
Indian Overseas Bank ·
Citibank Inc. ·
Indusind Bank Limited ·
Deustche Bank ·
Kotak Mahindra Bank Limited ·
Development Bank of ·
Royal Bank of ·
HDFC Bank Limited ·
State Bank of ·
Hongkong and Shanghai Banking Corporation (HSBC) ·
Standard Chartered Bank ·
ING Vysya Bank ·
Yes Bank Limited |
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Facilities : |
Rs in Millions
Note : (i) Secured
Debentures : During the year 2008-09, the Company issued Taxable Rated Secured
Non-convertible Redeemable Debentures in demat form for cash at par on
private placement basis aggregating Rs. 0.001 Million, IDBI Trusteeship
Services Limited has been appointed as trustee to the debenture issue. Nature of
Security Rs. 10000.000 Millions, 11.70% debentures (face value of Rs. 1.000
Millions each) are secured by a first legal mortgage and charge on the
Company’s immovable property being the free hold land at Mouje Maharajpura, Rs. 2500.000 Millions, debentures (interest ranging from 11.00% to
11.25%, face value of Rs. 1,000,000 each) are secured by a first legal
mortgage and charge on the Company’s free hold land at Perambur Barracks,
Chennai and Plant and machinery. Redemption Terms The outstanding debentures are due for redemption as given below :
For facilitating the above redemptions, the Company has created a
debenture redemption reserve of Rs.
1796.000 Millions (2012: Rs. 6051.900
Millions ), and an amount of Rs. 1744.100 Millions (2012: Rs. 2705.500 Millions ) has been
appropriated during the current year. During the year, 4,000 (2012: 4,000)
11.70% debentures aggregating Rs. 4000.000 Millions (2012: Rs. 4000.000 Millions ) were
redeemed as per terms of issue and consequently debenture redemption reserve
of Rs. 4000.000 Millions (2012: Rs. 4000.000
Millions ) created to facilitate the redemption of above debentures has been
transferred to General reserve. In addition to the above, 2,000 11.70% debentures aggregating Rs.
2000.000 Millions were prepaid during
the year and consequently debenture redemption reserve of Rs. 2000.000
Millions created to facilitate the
redemption of above debentures has been transferred to General reserve |
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Auditors : |
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|
Name : |
S.B. Billimoria and Company Chartered Accountants |
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Subsidiaries (Held Directly) |
·
Tata Communications Payment Solutions Limited
(formerly known as Tata Communications Banking Infra Solutions Limited) ·
Tata Communications Transformation Services
Limited ·
Tata Communications International Pte. Limited ·
VSNL SNOSPV Pte. Limited ·
S and A Internet Services Private Limited ·
Tata Communications Lanka Limited |
|
|
|
|
Subsidiaries (Held Indirectly) |
·
Tata Communications ( ·
Tata Communications ( ·
Tata Communications Services ( ·
Tata Communications ( ·
Tata Communications ( ·
Tata Communications ( ·
Tata Communications Services ( ·
Tata Communications ( ·
Tata Communications ( ·
Tata Communications ( ·
Tata Communications Deutschland GmbH ·
Tata Communications ( ·
Tata Communications ( ·
Tata Communications ( ·
Tata Communications ( ·
TCPoP Communication GmbH ·
Tata Communications ( ·
Tata Communications ( ·
Tata Communications ( |
|
|
|
|
Joint Venture : |
United Telecom Limited |
|
|
|
|
Joint Venture / Associate of wholly owned subsidiary |
·
SEPCO Communications Pty Limited ·
Neotel (Pty)Limited ·
Number Portability Company (Pty) Limited (Held
through Neotel (Pty) Limited) |
|
|
|
|
Other Related Parties : |
·
Tata Communications ( ·
Tata Communications ( ·
ITXC IP Holdings S.a r.lz ·
Tata Communications (Nordic) AS ·
Tata Communications ( ·
Tata Communications ( ·
Tata Communications ( ·
Tata Communications ( ·
VSNL International (ITXC) Corp. (Merged with Tata
Communications ( ·
Tata Communications ( ·
Tata Communications Services (International) Pte.
Limited ·
Tata Communications ( ·
(Formerly known as Videsh Sanchar Nigam Spain
Srl) ·
Tata Communications ( ·
Tata Communications ( ·
Tata Communications ( ·
BitGravity Inc. ·
Neotel (Pty) Limited (Subsidiary w.e.f 11 April
2011) ·
SEPCO Communications Pty Limited |
CAPITAL STRUCTURE
As on : 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
400000000 |
Equity Shares |
Rs.10/- each |
Rs. 4000.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
285000000 |
Equity Shares |
Rs.10/- each |
Rs. 2850.000 Millions |
A. Authorized:
The authorized capital of the Company
increased from Rs. 300.00 Millions to Rs. 400.00 Millions during financial year 2011-12 due to the Ministry
of Corporate Affairs giving effect to the merger of 100% subsidiary VSNL
Broadband Limited into the Company which was approved in December 2007 by the
Company and the Bombay High Court in April 2009.
B. Issued, Subscribed and Paid
up:
There was no movement in the issued,
subscribed and paid up share capital of the Company during the current and past
five financial years.
C. Terms/ rights attached to equity shares:
The Company has only one class of equity
shares with a face value of Rs. 10 per share. Each shareholder of equity shares
is entitled to one vote per share at any general meeting of shareholders. The
Company declares and pays dividends in Indian rupees. The dividend proposed by
the Board of Directors is subject to the approval of the shareholders in the
ensuing Annual General Meeting. The holders of American Depositary Receipts
("ADRs") do not have voting
rights.
Subsequent to the year end the company
announced its intention to delist its American Depositary Shares
("ADSs"), as evidenced by ADRs, from the New York Stock Exchange
("NYSE") and to terminate its ADR program.
The Board of Directors have recommended a
dividend of Rs. 3 (2012: Rs. 2) per share for the year ended 31 March 2013.
D. Number of shares held by each shareholder holding more than 5% of the
issued share capital:
As on 31.03.2013
|
Particulars |
Nos. of Shares |
% of Shares |
|
Panatone Finvest Limited |
88626654 |
31.10 |
|
Government of |
74446885 |
26.12 |
|
Tata Sons Limited |
40533297 |
14.22 |
|
Bank of New York Mellon as depository to Company’s ADR issue |
14107950 |
4.97 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
2850.000 |
2850.000 |
2850.000 |
|
(b) Reserves & Surplus |
72314.200 |
68519.700 |
67224.800 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
75164.200 |
71369.700 |
70074.800 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
6250.000 |
8250.000 |
12311.400 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
164.200 |
1259.300 |
|
(c) Other long term liabilities |
3915.600 |
3840.800 |
3363.800 |
|
(d) long-term provisions |
1221.600 |
1276.800 |
951.400 |
|
Total Non-current Liabilities (3) |
11387.200 |
13531.800 |
17885.900 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
1497.000 |
1258.300 |
1752.900 |
|
(b)
Trade payables |
12483.000 |
12021.400 |
10306.300 |
|
(c)
Other current liabilities |
5371.700 |
9526.900 |
13558.500 |
|
(d) Short-term
provisions |
1105.200 |
853.000 |
940.700 |
|
Total Current Liabilities (4) |
20456.900 |
23659.600 |
26558.400 |
|
|
|
|
|
|
TOTAL |
107008.300 |
108561.100 |
114519.100 |
|
|
|
|
|
|
II. ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
46949.100 |
46611.000 |
46967.100 |
|
(ii) Intangible
Assets |
1385.400 |
909.000 |
1084.800 |
|
(iii)
Capital work-in-progress |
1746.600 |
3033.400 |
2202.200 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
20305.100 |
17882.700 |
17881.100 |
|
(c) Deferred tax assets (net) |
87.100 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
16830.200 |
27619.400 |
30020.700 |
|
(e) Other
Non-current assets |
80.800 |
80.800 |
80.800 |
|
Total Non-Current Assets |
87384.300 |
96136.300 |
98236.700 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
4624.100 |
0.000 |
447.100 |
|
(b)
Inventories |
42.000 |
4.500 |
53.400 |
|
(c)
Trade receivables |
8610.200 |
8457.700 |
6126.200 |
|
(d) Cash
and cash equivalents |
3286.200 |
533.200 |
4307.700 |
|
(e)
Short-term loans and advances |
2858.500 |
3183.100 |
3401.100 |
|
(f)
Other current assets |
203.000 |
246.300 |
1946.900 |
|
Total Current Assets |
19624.000 |
12424.800 |
16282.400 |
|
|
|
|
|
|
TOTAL |
107008.300 |
108561.100 |
114519.100 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
44161.200 |
40917.700 |
36117.700 |
|
|
|
Other Income |
3802.200 |
1791.000 |
1907.100 |
|
|
|
TOTAL |
47963.400 |
42708.700 |
38024.800 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Network and transmission |
19632.000 |
17365.000 |
15483.600 |
|
|
|
Employees Benefits Expenses |
6394.600 |
6222.400 |
5204.600 |
|
|
|
Operating and other expenses |
8132.500 |
7450.600 |
6869.300 |
|
|
|
TOTAL |
34159.100 |
31038.000 |
27557.500 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
13804.300 |
11670.700 |
10467.300 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
1196.900 |
1948.700 |
2119.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) |
12607.400 |
9722.000 |
8348.000 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
7624.000 |
7070.800 |
6596.500 |
|
|
|
|
|
|
|
|
|
Add |
EXCEPTIONAL
ITEMS (LOSS) / GAIN |
1583.500 |
0.000 |
(211.100) |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
6566.900 |
2651.200 |
1540.400 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
1814.500 |
937.800 |
(85.200) |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
|
4752.400 |
1713.400 |
1625.600 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Revenue from telecommunication services |
11060.100 |
100858 |
8309.700 |
|
|
|
Interest income |
336.800 |
127.600 |
258.300 |
|
|
|
Dividend income |
261.600 |
47.600 |
16.800 |
|
|
|
Other income |
846.700 |
106.200 |
267.700 |
|
|
TOTAL EARNINGS |
12505.200 |
101139.400 |
8852.500 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Stores & Spares |
14.200 |
16.600 |
13.500 |
|
|
|
Capital Goods |
2743.400 |
1508.400 |
1327.400 |
|
|
TOTAL IMPORTS |
2757.600 |
1525.000 |
1340.900 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
16.68 |
6.01 |
5.70 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
9.91
|
4.01 |
4.28 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
14.87
|
65.99 |
4.26 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
7.74
|
3.02 |
1.63 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.09
|
0.04 |
0.02 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.10
|
0.13 |
0.20 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.96
|
0.53 |
0.61 |
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 |
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 |
No |
|
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 LOANS :
(Rs in Millions)
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
|
Long term
borrowings |
|
|
|
Taxable Rated
Unsecured Non-Convertible Redeemable Debentures |
|
|
|
1500, 9.85% Rated Debentures of face value Rs. 1.000 Millions each |
1500.000 |
1500.000 |
|
1500, 9.50% Rated Debentures of face value Rs. 1.000 Millions each |
1500.000 |
1500.000 |
|
Term Loan |
|
|
|
From Bank ((rate of interest 9% p.a, repayable by June 2014)) |
750.000 |
750.000 |
|
From Others (rate of interest 5.95% to 6.90% p.a, repayable by July
2012) |
0.000 |
64.600 |
|
Less: Current maturities of long term borrowings |
|
(4064.600) |
|
Short term
borrowings : |
|
|
|
From banks (rate of interest – 1.09 % to 2.60 %) |
1497.000 |
1258.300 |
|
Total |
5247.000 |
1008.300 |
Note :
Unsecured
Debentures
During the year 2009-10, the Company issued Taxable Rated Unsecured Non-Convertible
Redeemable Debentures of face value Rs. 1,000,000 each, in demat form for cash
at par on private placement basis aggregating Rs. 7000.000 Millions .
Redemption Terms:
The outstanding debentures are due for redemption as given below:
|
Date
of redemption as per terms of issue |
1500,
9.50% Debenture |
1500,
9.85% Debentures |
|
23 January 2019 |
-- |
150 |
|
23 January 2016 |
150 |
-- |
|
Total |
150 |
150 |
For facilitating the above redemptions, the Company
has created a debenture redemption reserve of Rs. 1705.300 Millions (2012: Rs.
1255.500 Millions ), an amount of Rs. 449.800 Millions (2012: Rs. 2420.800 Millions ) has been appropriated during the current year.
During the previous year 4,000, 7.74%
debenture aggregating Rs. 4000.000 Millions were redeemed as per terms of issue
and consequently debenture redemption reserve of Rs. 4000.000 Millions created to facilitate the redemption of above
debenture has been transferred to General reserve.
OPERATIONS :
Geographical Presence
In recent years, the Company has established a
strong presence not just in
Segment and Product Distribution
The Company’s revenues are now broadly
diversified across its various products and segments. During 2012- 13, voice
services contributed 50% to revenues, while 39% came from data services and 11%
from Neotel. Within the data services segment, revenues are well distributed
between its two segments of service providers and enterprises, which
contributed 46% and 54% of the total respectively
Global Voice
In the voice business, the trend of the past
few years continues, as overall volumes continue to grow, although margins are
declining. During the year, the Company’s international long distance voice
traffic grew 14% from 46.72 billion minutes in 2011-12 to 53.4 billion minutes
in 2012-13. National long distance voice traffic in
Global Data
The launch of cloud computing solutions in
Neotel
Neotel, a subsidiary of the Company in
Customer Satisfaction
The Company believes that providing an
excellent customer experience generates a crucial sustainable advantage and has
made this an important focus area. In 2012-13, the Company’s customer loyalty
ratings stood at the 84th percentile of its global peer set. In order to create
a customer-centric culture, the Company is improving existing processes for
faster service deployment and support to customers, investing in a customer
portal that enables customer interaction, initiating programmes around
“Customer Voice” and acting on the feedback received, and strengthening its
people through multi-skilling and leadership training.
MANAGEMENT DISCUSSION AND ANALYSIS
Macro Economic Situation
2012-13 was a challenging year for the Indian
economy, which experienced its worst slowdown in nearly a decade on the back of
global stagnation and domestic macro-economic fiscal imbalances. The year
started with news that the expansion in the previous year’s fourth quarter GDP
had dropped to 5.5%. That, coupled with low growth, a high fiscal and current
account deficit, persistent high inflation, ballooning subsidies and
pessimistic business sentiment added to the slowdown. About half way through
the financial year, the Indian Government intervened with measures like
reducing oil and fertilizer subsidies and steps to attract foreign direct
investment (FDI) and strengthen the rupee. However, economic conditions and the
business atmosphere remain largely unchanged due to uncertainty about the
results of these reforms. Sources of funding continued to be scarce and
borrowing costs remained high during the year.
During last year, the global economy had
recovered slightly from the crisis of the earlier year. Nevertheless, the International
Monetary fund (IMF), in the update of its World Economic Outlook, lowered the
world GDP growth projections for 2013 and 2014, given renewed setbacks in the
Eurozone and the risk of excessive fiscal consolidation in the
Telecom Industry Situation
The Indian telecom sector and subscriber base
have witnessed tremendous growth over the past decade, catalysed by increasing
fixed and mobile network coverage and a competition-induced decline in tariffs.
Demand has surged, largely due to these factors, as well as the growth of
broadband Internet access, a rapid proliferation of smart mobile devices and
higher levels of video traffic on consumer and business networks. The key
factors which are likely to fuel growth are a growing subscriber base, mobile
applications and technologically advanced end-user devices that will drive
exponential growth in Internet usage. However, the growth in traffic is
accompanied by the countervailing pressure of severe price erosion, especially
for basic voice and connectivity services. This has been further exacerbated by
competition from next-generation service providers. The industry also witnessed
consolidation, especially among business-to-business (B2B) players
Global Telecom Market
In 2012-13, the global telecom market grew
marginally, by approximately 3% year-on-year, to USD 2.207 trillion.
Telecom services accounted for 78% of the
total market while mobile devices accounted for 16% and telecom infrastructure
for 6%. The low single-digit growth rate of the past fiscal year is expected to
continue over the next four years as well, with the total telecom market
expected to grow at a compounded annual growth rate (CAGR) of only 4%, largely
due to on-going economic concerns. During 2012-13, the Company’s addressable
market in voice services witnessed a slight decline because of declining call
rates while the data market showed healthy growth. In the future, they expect
the Company’s addressable market to continue to grow at an attractive
pace.
Indian Telecom Market
In 2012-13, the Indian telecom market grew to
Rs. 1708540.000 Millions (USD 34 billion), of which Tata Communications’
addressable market was Rs. 649250.000
Millions (USD 13 billion). The major factors driving growth in the Indian
market are increased penetration of mobile services, growth in consumer
broadband services and increased adoption of network services by Indian
businesses. The Company leads the market in several segments. In the financial
year 2012-13, the Indian International Long Distance (ILD) voice market had
eight major operators, a total inbound market size of 83 billion minutes and
outbound market size of 6 billion minutes. The Company’s market share was 24%
in inbound traffic and 18% in outbound traffic. The country’s National Long
Distance (NLD) voice market size was 351 billion minutes during the year and
consisted of 11 major operators. The Company’s NLD addressable market size was
15 billion minutes, of which its market share was 55%. In 2012-13, the Company
had a 19% market share of the Rs.
78350.000 Millions Indian
enterprise data market. The Company also had a 27% market share in the Rs. 22500.000 crore Indian data centre market.
SEGMENTWISE PERFORMANCE :
Company Segmentation
Tata Communications’ business and revenues are
well-diversified across business segments, customer profiles and geographies.
Being largely a B2B player, the Company serves two segments of customers:
service providers and enterprise customers.
In the service provider segment, the Company
provides an integrated set of services including wholesale voice, domestic and
international data connectivity, Internet backbone connectivity (also known as
IP transit), value added roaming services for mobile operators and
carrier-specific business process outsourcing services.
In the enterprise segment, the Company’s main
offering comprises a comprehensive suite of connectivity, IT infrastructure and
managed communication and collaboration solutions for businesses seeking voice,
data and video connectivity between their distributed offices, within India or
globally. These services are aimed at improving the operational efficiencies of
business through the adoption of the latest networking and IT technologies, on
a managed solutions basis. Tata Communications also continues to build industry
specific solutions, with a current focus on Banking & Financial Services
and Media and Entertainment.
The Company classifies its operations into
three main business segments – Global Voice Solutions, Global Data and Managed
Services and Neotel (its subsidiary in
CONTINGENT LIABILITIES AND COMMITMENTS :
Rs in Millions
|
Particulars |
31.03.2013 |
|
Guarantees given on behalf of subsidiaries |
118366.900 |
|
Claims for taxes on income (Refer 1) |
|
|
-- Income tax disputes where department is in appeal against the company |
4570.800 |
|
-- Other disputes related to income tax |
20672.700 |
|
Claims for other taxes |
12.800 |
|
Other claims (Refer 2) |
6918.300 |
1. Claims for taxes on income:
Significant claims by the revenue authorities
in respect of income tax matters relate to disallowance of deductions claimed
section 80 IA of the Income Tax Act, 1961 from Assessment years 1996-97 onwards
and transfer pricing adjustments carried out by revenue authorities. The
Company has contested the disallowances/ adjustments and has preferred appeals
which are pending
2. Other claims:
i. Telecom Regulatory Authority of India
(“TRAI”) reduced the Access Deficit Charge (“ADC”) rates effective 1 April
2007. All telecom services providers including National Long Distance (“NLD”)
and International Long Distance (“ILD”) operators in
ii. On 19 February 2013, DoT issued license
fee demand for financial year 2006-07 and 2007-08, based on special audit
reports of auditors appointed by DoT. The total demand is for Rs. 1930.500
Millions , being Rs. 928.600 Millions
for financial year 2006-07 and Rs. 1001.900 Millions for financial year 2007-08, including Rs.
1020.600 Millions, being interest as on 28 February 2013. The Company has
challenged the said demand notice in the Madras High Court which has vide its
orders dated 1 March 2013, granted a stay-order against the said demand.
Further, the Company is also contesting a license fee claim of Rs. 1012.400
Millions (2012: Rs. 834.000 Millions) (including interest and penalty) for
financial year 2005-06. However, the said demand notice includes the items
which are already the subject-matter of petitions/appeals, pending for hearing
in the Supreme Court of India, for the previous years.
iii. Other claims of Rs. 857.000 Millions
(2012: Rs. 306.500 Millions ) mainly pertains to routine suits for collection,
commercial disputes, claims from customers and/or suppliers and claims from
Employee State Insurance Corporation (ESIC).
3. The Company has taken appropriate
professional advice in respect of the claims / appeals and has taken all
necessary steps to protect its interest. Based on expert opinion, no provision
is required in respect of these claims / appeals.
4. During the year 2008-09, in terms of the
agreements entered into between Tata Teleservices Limited (“TTSL”), Tata Sons
Limited (“TSL”) and NTT DoCoMo, Inc. of Japan (Strategic Partner - SP), TSL
gave an option to the Company to sell 36,542,378 equity shares in TTSL to the
SP, as part of a secondary sale of 253,163,941 equity shares effected along
with a primary issue of 843,879,801 shares by TTSL to the SP. If certain
performance parameters and other conditions are not met by TTSL by 31 March
2014 and should the SP decide to divest its entire shareholding in TTSL, and
TSL is unable to find a buyer for such shares, the Company is obligated to
acquire the shareholding of the SP, at the higher of fair value or 50 percent
of the subscription purchase price in proportion of the number of shares sold
by the company to the aggregate of the secondary shares sold to the SP, subject
to compliance with applicable exchange control regulations, or should the SP
decide to divest its entire shareholding in TTSL and TSL is unable to find a
buyer for such shares and the SP divests the shares at a lower price, subject
to compliance with applicable exchange control regulations, the Company is
obliged to pay a compensation representing the difference between such lower
sale price and the price referred to above in proportion of the number of
shares sold by the company to the aggregate of the secondary shares sold to the
SP.
Under the above mentioned agreements with SP,
TSL and TTSL have jointly and severally agreed to indemnify SP within the
agreed limits against claims arising on account of any failure of certain
warranties provided by TSL and TTSL to be true and correct in all respects
(amount not determinable) and in respect of specified contingent liabilities
(Company’s share Rs. 417.000 Millions ). The Company is liable to reimburse
TSL, on a pro-rata basis.
5. Future cash flows in respect of above matters
are determinable only on receipt of judgements/ decisions pending at various
forums/ authorities
PRESS RELEASES :
WORLD'S FIRST CROSS-BORDER SILICON VALLEY /
New concept tool '
San Francisco and Mumbai - July 18th 2013 - On
the back of two days of intense innovation, Tata Communications unveils the
winning entry entitled, ‘Interactive Place’, which represents the evolution of web
browsing; it was created by a team of developers in Bangalore during the
world’s first simultaneous Silicon Valley and Bangalore hackathon. The ‘
Hot on the heels of
Tata Communications’ recent jamvee™ launch (next generation global
video collaboration), the hackathon was aimed at further developing the future
of collaboration, using Web RTC. During the two-day hackfest nearly 200
developers in both countries worked together to innovate next-generation
open-standard collaboration tools. Following an exciting pitch process ‘
The winning team ('3
Collaborators'), says "This hackathon has allowed us to work together with
people from
Tata Communications'
Future of Collaboration hackathon, co-sponsored by TiE, Media Network Services,
vLine, Twilio, TCS, Tech Meetups, NestGSV and iAccelerator-CIIE saw an
overwhelming response from the developer community, with leading-edge concepts
being presented. The judging committee was made up of Tata Communications
executives, hackathon partners and independent industry experts including Jack
Hidary, Founder and former Chairman and CEO, Dice.com; Prashant Shah, Board
Member and Head of TiE Angels, TiE Silicon Valley; Dan Gonzalez, Director of
Strategic Partnerships, nestGSV; Tanvi Rangwala, Director, iAccelerator and ICT
Initiatives, CIIE and Bill Haskins, Senior Analyst, Wainhouse Research.
The second place
award ($10K) was given to a team from Silicon Valley for their app called
'DeMobo' and Neehraj N Joshi, Prince Jain and Nilabh Pandey from Bangalore
received the third place award ($5k) for their collaborative tool called
'Dev+join'. Other awards include, Best Business Model ($10K), Best
Collaboration between locations ($5K), Audience Favourite in
Julie Woods-Moss,
Chief Marketing Officer and CEO of Nextgen, Tata Communications, says "The
Internet has become the go-to source of information worldwide, but they're only
at the start of what's possible. They’ve already seen the advantages of crowd
sourcing and this weekend, they saw innovation at scale and on a global level.
Tata Communications has always believed in the benefits of co-creation and that
if diverse talented teams are given the right framework to collaborate, then
magical things happen."
Tata Communications
has an open ecosystem approach to voice, mobility and business video solutions.
Last week, the company launched jamvee™ video conferencing, a
self-service, cloud-based solution that lets virtually anyone, across any
device, participate in a video meeting. Tata Communications has the largest
interconnected ecosystem for business video and mobile network operators.
Underpinning its robust collaboration offerings is its undersea cable network
which is the world’s largest and includes the first wholly-owned fibre optic
cable network ring around the world. Its network also enables 20% of the
world’s internet routes today.
TATA COMMUNICATIONS
LIMITED CONFIRMS ITS DELISTING FROM THE
New York (NYSE) and Mumbai (NSE
and BSE) June 7th 2013 - Tata Communications
Limited (the “Company”) (NYSE: TCL) confirms that the delisting of its American
Depositary Shares (“ADSs”), as evidenced by American Depositary Receipts
(“ADRs”), from the New York Stock Exchange will become effective at the close
of business today. This follows the filing by the Company of a Form 25 with the
Securities and Exchange Commission on May 28th, 2013.
As a consequence of the delisting
becoming effective, termination of the Deposit Agreement under which the ADRs
were issued (the "Deposit Agreement") will become effective on July 14th,
2013. On and after this date, the Bank of New York Mellon, as depositary (the
"Depositary") may (i) discontinue the registration of transfers of
ADRs, (ii) suspend distribution of dividends, (iii) give no further notices,
and (iv) subject to certain limited exceptions, cease performing any acts under
the Deposit Agreement.
Holders of the Company's ADRs can
surrender their ADRs to the Depositary in exchange for the underlying ordinary
shares in the Company at any time prior to August 13th, 2013. As soon as practicable after that
date, the Depositary will sell the shares underlying any outstanding ADRs and
the ADRs will represent only the right to receive the cash proceeds from such
sale.
The Company's equity shares will
continue trading on the BSE Limited and the National Stock Exchange of India
Limited in
About Tata Communications
Tata Communications Limited, along with its subsidiaries (Tata Communications), is a leading global provider of a new world of communications. With a leadership position in emerging markets, Tata Communications leverages its advanced solutions capabilities and domain expertise across its global and pan-India network to deliver managed solutions to multi-national enterprises, service providers and Indian consumers.
The Tata Communications global network
includes one of the most advanced and largest submarine cable networks and a
Tier-1 IP network with connectivity to more than 200 countries and territories
across 400 PoPs, as well as nearly 1 million square feet of data centre and
collocation space worldwide.
Tata Communications' depth and breadth
of reach in emerging markets includes leadership in Indian enterprise data
services, leadership in global international voice, and strategic investments
in
TATA COMMUNICATIONS LAUNCHES JAMVEE™ AN
EASY-TO-USE, ON-DEMAND BUSINESS VIDEO SERVICE FOR ENTERPRISES AND PROFESSIONALS
THAT BRINGS TOGETHER ALL VIDEO PLATFORMS, DEVICES AND OPERATING SYSTEMS
Video conferencing service for a
world without borders: for the first time anyone, anywhere1, can
instantly access a business video meeting with jamvee™ on ANY device
London and Mumbai - July 9th 2013 -Ushering in an era of truly global video communications, Tata Communications today launches jamvee™ conferencing, a multi-device compatible cloud-based video conferencing service that allows anyone to take part in a video meeting from any location via a desktop computer, laptop, tablet, smartphone or a dedicated Telepresence room.
Delivered through the world’s only fibre optic cable ring around the globe, jamvee™ is a truly a global video conferencing tool for enterprises that makes video conferencing - both within and between companies - as easy as making a traditional audio conferencing call. Now making a multi-person business call from home, the office or even on route to the airport has never been so easy
With today's mobile workforce, video conferencing
is becoming increasingly popular amongst organisations as a way to increase
productivity. However, it hasn't yet realised its true potential due to quality
and interoperability issues, especially with multi-user global video
conferencing. This can often be seen with the over-the-top (OTT) video
communication solutions that use only the Internet to connect users.
Jamvee™ is different because
every jamvee™ video meeting is carried across the world's largest
and furthest-reaching undersea cable network. This robust connectivity backbone
from Tata Communications ensures consistent global access and reliability
needed by enterprises and professionals for crisp, secure and hassle-free video
collaboration - whether at the office, at home, or on the move.
John Hayduk, Tata Communications, President and CTO,
says, "Lack of interoperability, consistency of experience per location,
complicated price plans and the need for third-party reservations have stood in
the way of truly global enterprise collaboration. Jamvee™ overcomes
these barriers by making video conferences easy and on-demand, while seamlessly
bringing together all video platforms, room systems and endpoints in a simple,
as-you-need it and elastic pre-packaged service. It's so easy to use, instant
and affordable. It's what enterprises have been asking for."
The jamvee™ software
application is compatible with Windows, OSX software-based devices, iPhone and
iPad devices - with Android™ software support following in August
2013. Users of Lync and other video conferencing software, as well as those
with access to standard video conferencing systems such as Immersive
Telepresence, can also meet using jamvee™. Up to 46 participants can
join each conference at the touch of a button, bringing globally dispersed
teams in fast-moving businesses closer together than ever before as the
bring-the-own-device (BYOD) culture continues to gather pace.
So how does it work? Just like an audio conference you can access host and participant PINs on the jamvee™ portal, and send the participant PIN to people you want to meet with. Participants can then use any existing video system or Telepresence room that they have access to, or they simply download the free jamvee™ app from the Apple App Store or the jamvee™ portal. Everyone taking part in the meeting just dials the same number (or in the case of the jamvee™ app, presses the ‘Join Conference’ button) and enters their PIN to join the meeting - ensuring secure and private meetings both within the business and across multiple organisations / parties.
TATA COMMUNICATIONS LAUNCHES WORLD'S FIRST
CLOUD-BASED
BROADCAST-QUALITY VIDEO TRANSCODING AND DELIVERY SERVICE
Viacom18 uses service
to tackle piracy through faster transcoding and delivery of HD video, globally
in the cloud
Mumbai (NSE and BSE) - July 2nd
2013 - Tata Communications, a leading provider
of A New World of Communications, today announces that it has launched the
world’s first cloud-based broadcast quality video transcoding and delivery
service. The new content transformation service has already been selected by
Viacom18, a joint venture between Viacom Inc. and the Network18 Group, to
provide high-definition (HD) content transcoding and delivery via the cloud.
Developed in partnership with Harmonic, the service allows Viacom18 to maximise
its return on investments made in creative programming and to tackle piracy by
enabling simultaneous syndication play-out anywhere in the world.
The new service offers content
creators, service providers and media professionals an integrated end-to-end
workflow for moving content files to the cloud and transcoding them into
broadcast quality formats ready for immediate delivery and transmission
globally. This drastically reduces the delivery time compared with traditional
solutions that rely on the physical transport of media.
Viacom18 is currently using the service
for the daily transcoding and delivery of HD Masters of leading Indian soap
programmes to its customers in
Rajasekharan Harikrishnan, Chief Technical
Officer at Viacom18, says, "Tata Communications' cost-effective and
intuitive service has meant that our shows are picked up and transcoded to
formats as required by our international customers, all delivered in a seamless
manner. Authorised content available for simulcast in HD format has resulted in
more revenue for us while also discouraging piracy."
Viacom18 submits jobs to the content
transformation service by using accelerated connections on Tata Communications'
network, and monitors their status in real-time via a simple browser user
interface. The agreed transcode uses the source file to create a TX-ready
variant for Viacom18's broadcast partners in
Sameer Kanse, Business Head of Tata
Communications' Media Services says, "Content creators, service providers
and media professionals are under tremendous pressure to maximise the return on
their investments, as pirated content can be so easily accessed on illegal
websites. By speeding up monetisation of creative content through more
efficient production and distribution of digital content globally, we are
helping the industry to bridge the gap between broadcast and the Internet, and
to remain competitive in the rapidly evolving digital media economy."
The cloud-based content transformation
service has a pay-as-you-go pricing model, making it highly scalable,
cost-effective and it eliminates the need for dedicated new hardware. Unlike
many other cloud-based transcoding services - which can be used for transcoding
video files into low-resolution versions for playback on devices such as
smartphones, tablets and PCs only - Tata Communications' service makes it
possible to transcode HD video for broadcast purposes. The service leverages
Tata Communications' global data centre facilities and expert understanding of
the media ecosystem requirements to deliver an optimal solution.
FIXED ASSETS:
- Land
- Building
- Plant and Machinery
- Furniture and Fixture
- Office Equipment
- Computers
- Motor 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. 59.69 |
|
|
1 |
Rs. 91.66 |
|
Euro |
1 |
Rs. 78.69 |
INFORMATION DETAILS
|
Report Prepared
by : |
|
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
|
76 |
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.