|
Report Date : |
04.05.2013 |
IDENTIFICATION DETAILS
|
Name : |
RELIANCE JIO INFOCOMM LIMITED (w.e.f.22.01.2013) |
|
|
|
|
Formerly Known
As : |
INFOTEL BROADBAND SERVICES LIMITED (w.e.f.19.07.2010) INFOTEL BROADBAND SERVICES PRIVATE LIMITED |
|
|
|
|
Registered
Office : |
3rd Floor, Maker Chambers IV, 222, Nariman Point, Mumbai - 400021, Maharashtra |
|
|
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|
Country : |
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|
|
|
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Financials (as
on) : |
31.03.2012 |
|
|
|
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Date of Incorporation
: |
15.02.2007 |
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|
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|
Com. Reg. No.: |
11-234712 |
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|
|
Capital
Investment / Paid-up Capital : |
Rs. 51752.000 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U72900MH2007PLC234712 |
|
|
|
|
TAN No.: [Tax Deduction & Collection
Account No.] |
PTLI10699D MUMI179B |
|
|
|
|
PAN No.: [Permanent Account No.] |
AABCI6363G |
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|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
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|
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|
Line of Business
: |
Subject is engaged in the business of providing Broadband Services,
Telecom and Information Technology enabled and related services. |
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|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
B (29) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 206500000 |
|
|
|
|
Status : |
Project Under Implementation |
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|
|
|
Payment Behaviour : |
Unknown |
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Litigation : |
Clear |
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|
Comments : |
Subject is a subsidiary of ‘Reliance Industries Limited’. The project
of the company is under implementation stage. It holds an All India Internet Services Provider (ISP) Category ‘A’ License
which entitles it to provide countywide ISP services in India. The net worth of the company is good. It receives better support from
its holding company. Payment terms are unknown. The company can be considered for business dealings with some caution. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
PPD 1 and PPD 2 = AAA (SO) |
|
Rating Explanation |
Highest degree of safety and lowest credit risk. |
|
Date |
17.10.2012 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office / Corporate Office : |
3rd Floor, Maker Chambers IV, 222, Nariman Point, Mumbai -
400021, Maharashtra, India |
|
Tel. No.: |
91-22-22785500 |
|
Fax No.: |
91-22-22785560 |
|
E-Mail : |
|
|
|
|
|
Head Office : |
C-135, Industrial Aera, Phase 8, Mohali-160062, Punjab, India |
|
Tel. No.: |
91-172-4604341 |
DIRECTORS
AS ON 27.09.2012
|
Name : |
Mr. Mukesh Dhirubhai Ambani |
|
Designation : |
Chairman |
|
Address : |
Sea Wind, 39, Cuffe Parade, Colaba, Mumbai-400005, Maharashtra, India |
|
Date of Birth/Age : |
19.04.1957 |
|
Date of Appointment : |
22.06.2010 |
|
DIN No.: |
00001695 |
|
|
|
|
Name : |
Mr. Manoj Harjivandas Modi |
|
Designation : |
Director |
|
Address : |
10A/B, Building No.26, Sudhakar Co-operative Housing Society, Narayan Dabholkar
Road, Mumbai-400006, Maharashtra, India |
|
Date of Birth/Age : |
03.07.1957 |
|
Date of Appointment : |
22.06.2010 |
|
DIN No.: |
00056207 |
|
|
|
|
Name : |
Mr. Mahendra Nahata |
|
Designation : |
Director |
|
Address : |
House No.W-48, Greater Kailash, New Delhi-110048, India |
|
Date of Birth/Age : |
19.05.1959 |
|
Date of Appointment : |
22.06.2010 |
|
DIN No.: |
00052898 |
KEY EXECUTIVES
|
Name : |
Mr. Raja Kolumum Ramchandran |
|
Designation : |
Manager |
|
Address : |
F No.1703-1704, Building No.1, Raheja Classique, New Link Road,
Oshieara, Andheri (West), Mumbai-400053, Maharashtra, India |
|
Date of Birth/Age : |
19.12.1956 |
|
Date of Appointment : |
22.06.2010 |
|
PAN No.: |
ADLPR6435Q |
|
|
|
|
Name : |
Mr. Ratnesh Prasad Rukhariyar |
|
Designation : |
Secretary |
|
Address : |
302, Trishul Terrace, Plot No.36/37, Koperkhairane, Navi
Mumbai-400709, Maharashtra, India |
|
Date of Birth/Age : |
06.02.1980 |
|
Date of Appointment : |
16.11.2011 |
|
PAN No.: |
AHEPR6330F |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 27.09.2012
|
Names of Equity Shareholders |
No. of Shares |
|
Reliance Industries Limited, India |
4797689995 |
|
K Sethuraman
jointly with Reliance Industries Limited, India |
1 |
|
K. R.Raja jointly
with Reliance Industries Limited, India |
1 |
|
Pankaj Mohan
Pawar jointly with Reliance Industries Limited, India |
1 |
|
Ramesh Kumar
Damani jointly with Reliance Industries Limited, India |
1 |
|
Kiran Mathew Thomas
jointly with Reliance Industries Limited, India |
1 |
|
Anant Nahata |
75753000 |
|
Nextwave
Communications Private Limited, India |
37876500 |
|
Infotel Telecom
Holdings Private Limited, India |
6312750 |
|
Digivision Content
Solutions Private Limited, India |
4292670 |
|
Vikash Agarwal |
2020080 |
|
Infotel Infocomm
Enterprises Private Limited, India |
126255000 |
|
TOTAL
|
5050200000 |
|
Names of Preference Shareholders |
No. of Shares |
|
Reliance Industrial Investments and Holdings Limited, India |
125000000 |
|
TOTAL |
125000000 |
AS ON 31.03.2013
|
Names of 9% Cumulative Redeemable Preference Shareholders (Allottees) |
No. of Shares |
|
Reliance Industrial Limited, India |
2647000000 |
|
TOTAL |
2647000000 |
AS ON 27.09.2012
|
Equity Shares
Break Up |
Percentage of
Holding |
|
Bodies corporate |
98.46 |
|
Directors or relatives of Directors |
1.50 |
|
Other top fifty shareholders |
0.04 |
|
TOTAL |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in the business of providing Broadband Services,
Telecom and Information Technology enabled and related services. |
|
|
|
|
Services : |
Broadband Services |
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
Tel No.:- 91-22-22165261 |
||||||||||||
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||||||||||||
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Facilities : |
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Banking
Relations : |
-- |
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|
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|
Auditors : |
|
|
Name : |
Chaturvedi and Shah Chartered Accountant |
|
Address : |
714-715, Tulsiani Chambers, Nariman Point, Mumbai-400021, Maharashtra,
India |
|
PAN No.: |
AAAFC0662N |
|
|
|
|
Name : |
S r Batliboi and Associates Chartered Accountant |
|
Address : |
The Ruby, 14th Floor,, 29 Senapati Bapat Marg, Dadar
(West), Mumbai-400028, Maharashtra, India |
|
PAN No.: |
AABFS3421N |
|
|
|
|
Name : |
Atul Kulshrestha and Company Chartered Accountants |
|
Address : |
506, |
|
Tel. No.: |
91-11-41531330/ 41531331/ 41531332 |
|
E-Mail : |
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|
PAN No.: |
AAHFA0196J |
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|
|
|
Holding Company : |
Reliance
Industries Limited CIN No.:-
L17110MH1973PLC019786 |
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|
|
|
Subsidiaries : |
Infotel Telecom
Limited CIN No.:- U64204MH2011PLC213276 Rancore
Technologies Private Limited CIN No.:- U74999MH2007PTC168562 |
|
|
|
|
Fellow Subsidiaries : |
Reliance Industrial
Investments And Holdings Limited CIN No.:- U65910MH1986PLC041081 Reliance Fresh
Limited CIN No.:- U01100MH1999PLC120563 Reliance Digital
Retail Limited CIN No.:- U70102MH2007PLC170415 Reliance
Leisures Limited CIN No.:- U52100MH2007PLC175533 Reliance
Security Solutions Limited CIN No.:- U51109MH2008PLC185401 |
CAPITAL STRUCTURE
AFTER 27.09.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
7500000000 |
Equity Shares |
Rs.10/- each |
Rs. 75000.000 Millions |
|
2500000000 |
Preference Shares |
Rs.10/- each |
Rs. 25000.000 Millions |
|
|
TOTAL |
|
Rs. 100000.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
5050200000 |
Equity Shares |
Rs.10/- each |
Rs.
50502.000 Millions |
|
125000000 |
Preference Shares |
Rs.10/- each |
Rs. 1250.000 Millions |
|
|
TOTAL |
|
Rs. 51752.000 Millions |
AS ON 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
6004900000 |
Equity Shares |
Rs.10/- each |
Rs. 60049.000 Millions |
|
150050000 |
Preference Shares |
Rs.10/- each |
Rs. 1500.500 Millions |
|
|
TOTAL |
|
Rs. 61549.500
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
5050200000 |
Equity Shares |
Rs.10/- each |
Rs.
50502.000 Millions |
|
125000000 |
Preference Shares |
Rs.10/- each |
Rs. 1250.000 Millions |
|
|
TOTAL |
|
Rs. 51752.000 Millions |
AS ON 27.09.2012
Authorised Capital : Rs. 150000.000
Millions
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
5050200000 |
Equity Shares |
Rs.10/- each |
Rs.
50502.000 Millions |
|
125000000 |
Preference Shares |
Rs.10/- each |
Rs. 1250.000 Millions |
|
2647000000 |
9% Cumulative Redeemable Preference Shares |
Rs.10/- each |
Rs. 26470.000 Millions |
|
|
TOTAL |
|
Rs. 78222.000 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
51752.000 |
45335.000 |
25.100 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
(111.300) |
(58.100) |
0.000 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
(9.908) |
|
|
NETWORTH |
51640.700 |
45276.900 |
15.192 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
8.900 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
96312.500 |
86892.500 |
74.729 |
|
|
TOTAL BORROWING |
96321.400 |
86892.500 |
74.729 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
147962.100 |
132169.400 |
89.921 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
28.700 |
12.300 |
16.463 |
|
|
Capital work-in-progress |
149694.200 |
133804.100 |
64.534 |
|
|
|
|
|
|
|
|
INVESTMENT |
116.600 |
16.200 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
0.000
|
0.000
|
0.000
|
|
|
Sundry Debtors |
0.300
|
0.500
|
0.065
|
|
|
Cash & Bank Balances |
11.200
|
9.300
|
1.607
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
1244.800
|
186.600
|
10.743
|
|
Total
Current Assets |
1256.300
|
196.400 |
12.415 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
0.000
|
0.000
|
1.746 |
|
|
Other Current Liabilities |
1691.000
|
1856.500
|
0.616
|
|
|
Provisions |
1442.700
|
3.100
|
1.129
|
|
Total
Current Liabilities |
3133.700
|
1859.600 |
3.491 |
|
|
Net Current Assets |
(1877.400)
|
(1663.200)
|
8.924
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
147962.100 |
132169.400 |
89.921 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
1.200 |
2.000 |
1.478 |
|
|
|
Other Income |
3.500 |
4.600 |
0.087 |
|
|
|
TOTAL (A) |
4.700 |
6.600 |
1.565 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Purchases of Stock-in-trade |
0.400 |
0.000 |
0.000 |
|
|
|
Employees Benefits Expenses |
20.400 |
4.300 |
0.000 |
|
|
|
Other Expenses |
27.500 |
45.400 |
6.461 |
|
|
|
TOTAL (B) |
48.300 |
49.700 |
6.461 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(43.600) |
(43.100) |
(4.896) |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
0.900 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(44.500) |
(43.100) |
(4.896) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
8.700 |
5.100 |
5.012 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
(53.200) |
(48.200) |
(9.908) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
(53.200) |
(48.200) |
(9.908) |
|
|
|
|
|
|
|
|
|
|
IMPORTS VALUE |
162.900 |
23.200 |
0.000 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(0.01) |
(0.05) |
(3.95) |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
(1131.91)
|
(730.30) |
(633.10)
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(4433.33)
|
(2410.00) |
(670.37)
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(4.14)
|
(23.10) |
(34.31)
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.00
|
0.00 |
(0.65)
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
1.87
|
1.92 |
4.92
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.40
|
0.11 |
3.56
|
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 |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
----- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
Yes |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm
/ promoter involved in |
----- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
----- |
|
26] |
Buyer visit details |
----- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
|
UNSECURED LOAN |
Rs.
In Millions 31.03.2012 |
Rs.
In Millions 31.03.2011 |
|
Non convertible debentures for banks |
10000.000 |
10000.000 |
|
Non convertible debentures for others |
10000.000 |
10000.000 |
|
Foreign Currency Term Loans from Banks |
76312.500 |
66892.500 |
|
|
|
|
|
TOTAL |
96312.500 |
86892.500 |
NOTE
Registered office has been shifted C-135, Industrial Aera, Phase 8,
Mohali-160062, Punjab, India to the present address w.e.f. 21.08.2012.
OPERATIONAL REVIEW
The Company holds
an All India Internet Service Provider (ISP) Category 'A' License which
entitles it to provide countrywide ISP services in India. The Company is
providing bandwidth to a few clients in a limited scale.
The Company was
the only successful bidder in all of the 22 telecom service areas in the
Broadband Wireless Access (“BWA”) spectrum auction conducted by Department of
Telecommunications, Government of India. The Company can offer broadband
services across the nation through the 20 Mhz, contiguous, pan-India spectrum
secured through this acquisition.
The Company is in
the process of setting up a world class broadband network using
state-of-the-art technologies and finalizing the technical and commercial
arrangements with the leading global technology companies, service providers,
infrastructure providers, application developers, device manufacturers and few
others to help usher the broadband revolution into India. The Company perceives
the broadband opportunity as a new frontier of knowledge economy in which it
can take a leadership position and provide India with an opportunity to be in
the forefront among the countries providing world class broadband network and services.
The Company aims to be a
comprehensive,
value added digital services player, providing rich, affordable multimedia
enabled digital services and experiences to crores of their citizens across
entertainment, education, healthcare, agriculture, urban-rural market linkages,
government-citizen interfaces, thereby increasing productivity and employment
potential not only in the formal, but also informal sector of the economy which
provides livelihood to more than 90% of the labour force. This makes the Company’s
strategy closely aligned to India’s national goals.
AMALGAMATION (AS
ON 31.03.2011)
During the year
the Hon'ble High Court of Punjab and Haryana and Hon'ble High Court of Delhi
sanctioned the Scheme of Amalgamation ("Scheme") pursuant to which Infotel
Digicomm Private Limited (IDPL) and Infotel Holdings Private Limited (IHPL)
were amalgamated with the Company. The Scheme became effective on 16th February
2011 with the appointed date of the Scheme being 1st April 2010. In terms of
the Scheme, the Company issued and allotted 25,25,10,000 Equity Shares of
Rs.10/- each to the existing Equity Share holders of IHPL and 12,50,00,000
Preference Shares of Rs.10/- each to the Preference Shareholders of IDPL.
Further in terms of
the said Scheme, the Authorised Share Capital of the Company increased to Rs.
61549.500 Millions.
FIXED ASSETS
WEBSITE DETAILS
NEWS
BHARTI, RELIANCE JIO PARTNER FOR INTERNATIONAL DATA
CONNECTIVITY
First Published: Tue, Apr 23 2013
New Delhi: Mukesh Ambani -controlled Reliance Jio Infocomm Limited,
which is expected to roll out its 4G-based communications services in India
this year, has signed an agreement with Bharti Airtel Limited
to use international data capacity on its i2i submarine cable that links India
and Singapore.
The submarine cable is expected to provide
Reliance Jio access to Singapore, a crucial communication hub in the Asia
Pacific region. The financial terms of the transaction were not disclosed.
The accord comes almost three weeks after
Reliance Jio announced a Rs.12000.000
Millions deal with younger brother Anil Ambani controlled-Reliance Communications Limited for the latter’s 120,000
km fibre optic network connecting cities across India. This was the first
commercial partnership between the two Ambani brothers since a 2010 truce
between the feuding brothers. At the time of announcing this deal, Reliance
Communications officials said that talks for sharing towers were ongoing.
Both the deals are for indefeasible right to
use the network by Reliance Jio.
Bharti and Reliance Jio will continue to
build on this strategic framework and consider other mutual areas of
cooperation and development to leverage their respective assets, a joint
statement issued on Tuesday said.
“The deal marks Reliance Jio’s continued
efforts to rapidly grow and expand both its international and domestic network
and infrastructure by building an ecosystem with multiple carriers and service
providers,” the statement said.
Reliance Jio has not announced any tie-ups
for telecom towers that it will need in the country or international optical
fibre for the rest of the country.
Bharti has, through partnerships in
consortiums, access to submarine cable capacity across the globe. These include
partnerships in major cable systems like SeMeWe4 (connecting Chennai/Mumbai to
Singapore and Europe), the Asia America Gateway, India Middle East and Western
Europe, Unity, EIG (Europe India Gateway) and East Africa Submarine System.
Bharti also has terrestrial connectivity to neighbouring countries including
Nepal, Pakistan, Bhutan and China.
“Such deals are good from industry point of
view as it results in sharing of infrastructure which is costly to build. It is
a part of industry consolidation and could be a win-win for all including the
ultimate consumer,” said Hemant Joshi, partner, Deloitte
Haskins and Sells. “Networks should be viewed as National resources to
be used for enabling GDP growth.”
The accord between Reliance Jio and Bharti
may be the first of many such partnerships, according to analysts.
“Though this deal is not very big in size,
there are some signals that there could be more partnerships coming. Bharti has
a lot of unused capacity, as do the other operators, including Reliance
Communications and Tata Teleservices,” said a
Mumbai-based telecom analyst with a foreign brokerage.
RELIANCE
COMMUNICATIONS DOUBLES INVESTORS’ WEALTH SINCE APRIL 2013
By
ECONOMICTIMES.COM | 3 May, 2013,
NEW DELHI: Anil Ambani group company Reliance Communications BSE 4.85 %
Limited has rallied nearly 100 per cent since April this year, largely led by
optimism sparked by its Rs 12000.000 Millions fibre sharing agreement with
RIL's subsidiary Reliance Jio Infocomm Limited.
Even on Friday, RComm rallied over 8 per cent in intraday trade to touch
its 52-week high of Rs 111.85. The stock finally closed 4.8 per cent higher at
Rs 110.15.
The recent upsurge in Anil Ambani group stocks comes amid reports of increased
co-operation with his elder brother Mukesh Ambani-led Reliance group.
In the month of April, companies controlled by both brothers had said in
separate statements that RIL-subsidiary Reliance Jio Infocomm Limited would pay
Rs 12000.000 Millions as a onetime fee to use RComm's fibre network.
Most brokerage firms and analysts have given thumbs up to the Ambani brothers'
fibre sharing agreement, and termed the deal as a 'win-win' situation for both
the companies.
Morgan Stanley gave 'equal weight' rating on RComm and said that the deal with
RIL was a win-win for both the companies. The brokerage firm is of the view
that the deal also opens discussion for towers and incremental tower use, which
will increase possibility for further unlocking of value in the tower and
global business.
Reliance Communications has been looking out for strategic investors for
the business to reduce its debt which has been a big overhang on the stock.
Some analysts think that more such arrangements would be the next big trigger
for Rcom's stock.
"The share price of RComm has moved in a big way which indicates that all
the catalysts have played out in terms of reduction of debt," said
Mayuresh Joshi, VP-Institution, Angel Broking in an interview with ET Now.
"So if all the catalysts have played out there can be substantial
reduction of debt going forward which stands at Rs 370000.000 Millions on its
balance sheet at the moment," he added.
Joshi is of the view that reduction of debt will help the telecom major in
reducing its interest cost going forward and protect margins. So if investors
are holding on to the stock, they can at least book half their profits on RComm
at this point of time, he added.
The news flow from the management of Reliance Communications has largely been
positive, which has given a big booster to the stock. However, the market now
awaits more substantial efforts from the telecom major to carry on the
de-leveraging process to actually reduce debt on the balance sheet.
"If we see more such positive news flow going forward, we will see the bottom
line of the company getting fatter and that would re-rate the stock going
forward," said Avinnash Gorakssakar, Head of Research, Mintdirect.com in
an interview with ET Now.
"I would not be surprised if there could be some more consolidation at
current levels and then probably in the next six months, once you see the
results coming out from these news flows the stock would rally further,"
he added.
Meanwhile shares of other ADAG Group companies also rallied for the second
consecutive session. Reliance Infrastructure pared most of its gains and ended
0.3 per cent higher at Rs 390.90. Reliance Capital Limited ended 1.8 per cent
higher at Rs 371.05.
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. 53.95 |
|
|
1 |
Rs. 83.80 |
|
Euro |
1 |
Rs. 70.49 |
INFORMATION DETAILS
|
Report Prepared
by : |
DPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
-- |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
-- |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
29 |
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.