MIRA INFORM REPORT
|
Report Date : |
14.05.2013 |
IDENTIFICATION DETAILS
|
Name : |
TATA TELESERVICES LIMITED |
|
|
|
|
Registered
Office : |
10th Floor, Tower I , Jeevan Bharati, 124, Connaught Circus, New Delhi-110001 |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
23.03.1995 |
|
|
|
|
Com. Reg. No.: |
55-066685 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 47123.900 millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U74899DL1995PLC066685 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
DELT02239G |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACT2438A |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business
: |
Providing Telecommunications Services. |
|
|
|
|
No. of Employees
: |
Not Divulged |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (42) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 119800000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a part of ‘TATA GROUP’. It is a well established company having a satisfactory track record.
There appears continuous losses recorded by the company. The external
borrowing seems to be huge. However, subject gets strong managerial and financial support from
group companies and NTT DOCOMO INC. Trade relations are reported to be fair. Business is active. Payments
are reported to be fair. Business is active. Payments are reported to be
usually correct and as per commitment. In view of experience promoters, the company can be considered for
normal business dealings at usual 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 – 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 |
Long term rating: A |
|
Rating Explanation |
Having adequate degree of safety regarding timely servicing of financial
obligation it carry low credit risk. |
|
Date |
March, 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.
INFORMATION DECLINED
MANAGEMENT NON-COOPERATIVE (Tel. No.: 91-11-66558555)
LOCATIONS
|
Registered Office : |
10th Floor, Tower I , Jeevan Bharati, 124,
Connaught Circus, New Delhi-110001, India |
|
Tel. No.: |
91-11-65544000 / 03 / 66558555
|
|
Fax No.: |
91-11-23326855 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
A, E & F Blocks, Voltas Premises, T. B. Kadam Marg,
Chinchpokli, Mumbai-400033, Maharashtra, India |
|
Tel. No.: |
91-22-66671414 |
|
Fax No.: |
91-22-66605335 |
|
|
|
|
Branches : |
v
East
Zone
v
West
Zone
v
South Zone
v
North
Zone
|
DIRECTORS
As on 29.10.2012
|
Name : |
Mr. Kishor Anant Chaukar |
|
Designation : |
Nominee director |
|
Address : |
B43, Abhimanshree Co-operative Housing Society, Off Pashan Road, Pune-411008
Maharashtra |
|
Date of Birth/Age : |
01.08.1947 |
|
Qualification : |
M.B.A. |
|
Date of Appointment : |
25.02.1999 |
|
DIN No.: |
00033830 |
|
|
|
|
Name : |
Mr. Ishaat Hussain |
|
Designation : |
Nominee director |
|
Address : |
222-A, NCPA Apartments, Dorabji Tata Road, Nariman Point, Mumbai-400021 Maharashtra, India |
|
Date of Birth/Age : |
02.09.1947 |
|
Qualification : |
B.A. (Eco.), .F.C.A. (Eng. & Wales) |
|
Date of Appointment : |
29.09.1999 |
|
DIN No.: |
00027891 |
|
|
|
|
Name : |
Mr. Ramachandran Nonvinkere Sitharam |
|
Designation : |
Director |
|
Address : |
B-2015, Krest Park, Kanakapura Road, Basavanagudi, Bangalore-560004, Karnataka, India |
|
Date of Birth/Age : |
25.03.1939 |
|
Qualification : |
M. E. (Power Eng.) |
|
Date of Appointment : |
06.12.2002 |
|
DIN No.: |
00108241 |
|
|
|
|
Name : |
Mr. Srinath Narasimhan |
|
Designation : |
Managing director |
|
Address : |
801, Grand Bay Apartments, 8th Floor, 17th Hill Road, Bandra (West), Mumbai-400050, Maharashtra, India |
|
Date of Birth/Age : |
08.07.1962 |
|
Qualification : |
B. Tech. (Mech.), M.B.A. |
|
Date of Appointment : |
17.01.2003 |
|
PAN No.: |
ABCDE1234F |
|
DIN No.: |
00058133 |
|
|
|
|
Name : |
Kazuto Tsubouchi |
|
Designation : |
Director |
|
Address : |
1-2-5, Shinanomachi
Setagaya-ku, Tokyo, Japan
1540014 |
|
Date of Birth/Age : |
02.05.1952 |
|
Qualification : |
B. L. |
|
Date of Appointment : |
25.03.2009 |
|
DIN No.: |
02455485 |
|
|
|
|
Name : |
Kiyohito Nagata |
|
Designation : |
Director |
|
Address : |
4 20 3 Nakahara Isogoku, Yokohamashi
Kanagawa, Tokyo, Japan
2350056 |
|
Date of Birth/Age : |
17.03.1958 |
|
Qualification : |
Ph. D. |
|
Date of Appointment : |
10.08.2010 |
|
DIN No.: |
03140584 |
|
|
|
|
Name : |
Mr. Chandrasekaran Natarajan |
|
Designation : |
Director |
|
Address : |
201, Sagar Darshan,
8 Worli Seaface, Mumbai-400025,
Maharashtra, India |
|
Date of Birth/Age : |
02.06.1963 |
|
Qualification : |
B. Sc., M.C.A. |
|
Date of Appointment : |
10.06.2011 |
|
DIN No.: |
00121863 |
|
|
|
|
Name : |
Cyrus Pallonji Mistry |
|
Designation : |
Director |
|
Address : |
Sterling Bay, 103, Walkeshwar Road,
Walkeshwar, Mumbai-400006 Maharashtra, India |
|
Date of Birth/Age : |
04.07.1968 |
|
Qualification : |
B.E. (Civil Engg.), M.Sc. (Mgmt.) |
|
Date of Appointment : |
24.02.2012 |
|
DIN No.: |
00010178 |
|
|
|
|
Name : |
Hajime Kii |
|
Designation : |
Director |
|
Address : |
Room # 201, Toyosawa Company
Residence, 2-33-13 ,Ebisu,
Sibuya-Ku, Tokyo Japan |
|
Date of Birth/Age : |
20.04.1960 |
|
Date of Appointment : |
03.07.2012 |
|
DIN No.: |
05307704 |
KEY EXECUTIVES
|
Name : |
Mr. Kiran Tulsidas Thacker |
|
Designation : |
Secretary |
|
Address : |
A/27, Anuja Society Shimpoli Road Borivali (West) Mumbai Maharashtra 400 092 |
|
Date of Birth/Age : |
19.06.1958 |
|
Date of Appointment : |
01.06.2008 |
|
PAN No.: |
AABPT3257D |
|
Voter ID No.: |
MT/09/045/0148211 |
|
|
|
|
Name : |
Mr. Aditya Gupta |
|
Designation : |
Head – Marketing Operations |
|
|
|
|
Name : |
Mr. Anand Dalal |
|
Designation : |
Head – Regulatory Affairs |
|
|
|
|
Name : |
Mr. Arun Kumar Padhi |
|
Designation : |
Chief Strategic HR |
|
|
|
|
Name : |
Mr. Gurinder Singh Sandhu |
|
Designation : |
Head Marketing- Mobility |
|
|
|
|
Name : |
Mr. Neeraj Dindore |
|
Designation : |
Chief Network Planning and Implementation |
|
|
|
|
Name : |
Mr. Praveg Gupta |
|
Designation : |
Head Distribution Transformation |
|
|
|
|
Name : |
Mr. Ritesh Ghosal |
|
Designation : |
Head - Brand Marketing |
|
|
|
|
Name : |
Mr. Saji Mathew |
|
Designation : |
Head-Infrastructure and Projects |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 29.10.2012
|
Names of Shareholders |
|
No. of Shares |
|
Tata Industries Limited, India |
|
257186865 |
|
Tata Steel Limited, India |
|
63153638 |
|
Tata Chemicals Limited, India |
|
1285110 |
|
The Tata Power Company Limited, India |
|
328397823 |
|
Tata Sons Limited, India |
|
1501347856 |
|
Tata Sons Limited, India |
|
92371691 |
|
Tata Communications Limited, India |
|
439863622 |
|
SBM Chemicals and Instruments Private Limited, India |
|
53542 |
|
Rajen Gupta |
|
39958 |
|
Desai Brothers Limited, India |
|
152800 |
|
Kalimati Investment Company Limited, India |
|
1538672 |
|
Tata Investment Corporation Limited, India |
|
5684692 |
|
Ratan N Tata |
|
826466 |
|
Ms Tata Simone Naval Jh-Mr. Noel Naval Tata |
|
613992 |
|
Noel Naval Tata |
|
1551137 |
|
Jimmy Minocher Tata |
|
69801 |
|
Piloo Minocher Tata Jh-Jimmy Minocher Tata |
|
51858 |
|
Piloo Minocher Tata Jh-Vera Farhad Choksey |
|
51858 |
|
Vera Farhad Choksey Jh-Farhad S Choksey |
|
69801 |
|
Crystal Investment Company Private Limited, India |
|
92330 |
|
Leah Noel Tata |
|
13849 |
|
Maya Noel Tata |
|
13849 |
|
Neville Noel Tata |
|
13849 |
|
Cyrus Pallonji Mistry |
|
7879063 |
|
Shapoor Pallonji Mistry |
|
7879063 |
|
Pallonji Shapoorji Mistry |
|
3698686 |
|
Siva Industries and Holdings Limited, India |
|
232259163 |
|
SIG Event Management and Enterprises Private Limited, India |
|
17400000 |
|
Aranda Investments (Mauritius) Pte. Limited, India |
|
303888039 |
|
Prem Kumar Bansal |
|
128296 |
|
Tata Sons Limited, India |
|
110684144 |
|
Baytree Investment (Mauritius) Limited, India |
|
12155522 |
|
NTT DOCOMO Inc. , India |
|
1248974378 |
|
Goldman Dealer Private Limited, India |
|
25000000 |
|
2i Capital PCC, India |
|
48000000 |
|
Total |
|
4712391413 |
As on 29.10.2012
Equity Share Break up (Percentage of Total Equity)
|
Category |
Percentage of Holding |
|
Foreign holdings( Foreign institutional
investor(s), Foreign companie(s) Foreign financial institution(s),
Non-resident Indian(s) or Overseas Corporate bodies or Others |
34.23 |
|
Bodies corporate |
65.28 |
|
Directors or relatives of Directors |
0.48 |
|
Others |
0.01 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Providing Telecommunications Services. |
||||
|
|
|
||||
|
Products / Services : |
|
GENERAL INFORMATION
|
No. of Employees : |
Not Divulged |
||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||
|
Bankers : |
|
||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
S.R. Batliboi and Associates Chartered Accountants |
|
Address : |
The Ruby, 29 Senapati Bapat Marg, Dadar - West, Mumbai-400028, Maharashtra, India |
|
PAN No.: |
AABFS3421N |
|
|
|
|
Holding company : |
Tata Sons, India |
|
|
|
|
Jointly controlled
entities : |
Virgin Mobile India Private Limited, India CIN No.: U64201MH2007PTC169408 |
|
|
|
|
Associates : |
Tata Teleservices (Maharashtra) Limited, India CIN No.: L64200MH1995PLC086354 |
|
|
|
|
Subsidiary : |
CIN No.: U72900DL1999PLC100313
CIN No.: U64202DL2007PLC223153
CIN No.: U72200DL2004PLC228400
CIN No.: U64201DL2010PLC205811 |
|
|
|
|
Enterprises which are
owned, or have significant influence of or are partners with Key management
personnel and their relatives : |
NTT Docomo Inc, India |
|
|
|
|
Fellow Subsidiary : |
Note: Fellow subsidiaries include payable balance of Rs. 579.900 millions (March 31, 2011- Rs. 612.000 millions) to Tata Consultancy Services Limited. The Company has outsourced its IT related services to Tata Consultancy Services vide agreement dated September 13, 2005 and the amended agreement dated December 5, 2005, effective July 1, 2005 for a lock-in period of 5 years The agreement is further amended dated December 4, 2009, effective from April 1, 2009 for a further period of five years. The agreement provides for monthly payouts bifurcated into fixed payout and variable payout based on percentage of revenue generated directly or indirectly using customer and subscriber base. The contract has been accounted for as a services contract. The Company for the year ended March 31, 2012 has expensed Rs. 2373.700 millions (March 31, 2011 - Rs. 2095.600 millions). |
CAPITAL STRUCTURE
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
7513682100 |
Equity Shares |
Rs.10/- each |
Rs. 75136.821 Millions |
|
2336317900 |
Preference Shares |
Rs.10/- each |
Rs. 23363.179 Millions |
|
5150000000 |
Unclassified Shares |
Rs.10/- each |
Rs. 51500.000 Millions |
|
|
Total |
|
Rs. 150000.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
4712391413 |
Equity Shares |
Rs.10/- each |
Rs. 47123.900 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 |
47123.900 |
44637.400 |
41444.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
0.000 |
14770.200 |
94808.000 |
|
|
4] (Accumulated Losses) |
(17168.800) |
0.000 |
(55351.200) |
|
|
NETWORTH |
29955.100 |
59407.600 |
80900.800 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
143294.400 |
120896.000 |
105135.000 |
|
|
2] Unsecured Loans |
42850.000 |
49500.000 |
17500.000 |
|
|
TOTAL BORROWING |
186144.400 |
170396.000 |
122635.000 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
216099.500 |
229803.600 |
203535.800 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
191245.100 |
192995.400 |
135875.700 |
|
|
Capital work-in-progress |
4128.800 |
8891.600 |
19582.100 |
|
|
|
|
|
|
|
|
INVESTMENT |
33711.500 |
32221.500 |
40063.000 |
|
|
DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
92.800
|
163.500 |
366.700 |
|
|
Sundry Debtors |
14252.200
|
10964.100 |
7927.800 |
|
|
Cash & Bank Balances |
7792.300
|
26111.300 |
47488.000 |
|
|
Other Current Assets |
3212.100
|
2578.700 |
0.000 |
|
|
Loans & Advances |
24775.800
|
24949.500 |
20109.800 |
|
Total
Current Assets |
50125.200
|
64767.100 |
75892.300 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
8407.700
|
5728.300 |
25623.400 |
|
|
Other Current Liabilities |
45717.000
|
56713.500 |
35704.400 |
|
|
Provisions |
8986.400
|
6630.200 |
7063.700 |
|
Total
Current Liabilities |
63111.100
|
69072.000 |
68391.500 |
|
|
Net Current Assets |
(12985.900)
|
(4304.900) |
7500.800 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
514.200 |
|
|
|
|
|
|
|
|
TOTAL |
216099.500 |
229803.600 |
203535.800 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
98968.200 |
80610.000 |
62124.600 |
|
|
|
Other Income |
(597.800) |
4783.700 |
9742.900 |
|
|
|
TOTAL (A) |
98370.400 |
85393.700 |
71867.500 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
209.700 |
|
|
|
|
|
Employee benefit expense |
9765.900 |
9334.900 |
59292.200 |
|
|
|
Other expenses |
92086.000 |
80116.800 |
|
|
|
|
Prior period items |
0.000 |
1193.000 |
|
|
|
|
TOTAL (B) |
102061.600 |
90849.700 |
59292.200 |
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION
AND AMORTISATION (A-B) (C) |
(3691.200) |
(5456.000) |
12575.300 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
16716.500 |
10670.100 |
8619.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(20407.700) |
(16126.100) |
3955.800 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
21875.100 |
18954.400 |
17292.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX (E-F)
(G) |
(42282.800) |
(35080.500) |
(13336.800) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX (G-H) (I) |
(42282.800) |
(35080.500) |
(13336.800) |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Components and spare part |
23.600 |
107.300 |
338.400 |
|
|
|
Import of capital equipment |
7334.500 |
11454.700 |
49416.100 |
|
|
TOTAL IMPORTS |
7358.100 |
11562.000 |
49754.500 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
(9.05) |
(8.39) |
(3.22) |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
(42.98)
|
(41.08) |
(18.56) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(42.72)
|
(43.52) |
(21.47) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(17.52)
|
(13.61) |
(6.30) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(1.41)
|
(0.59) |
(0.16) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
6.21
|
2.87 |
1.52 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.79
|
0.94 |
1.11 |
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) |
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 |
Yes |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
BACKGROUND
NATURE OF BUSINESS
Subject, part of the Tata Group, became a pan-India telecom operator in January 2005. The Company has Unified Access (Basic & Cellular) Service License ('UASL') to operate in 20 circles and National Long Distance ('NLD') license to provide the NLD services within India.
The Company has obtained amendment letters to its UASL license agreements to use GSM technology under the existing UASL licenses, on March 4, 2008 from the DoT. The Company has paid Rs.1,2569.100 millions as one time charge for use of GSM technology and is paying revenue share license fees and spectrum charges on an ongoing basis under the original terms of the UASL agreement. The Company has launched services under GSM technology at all circles where it has been allocated spectrum.
The Company had participated in the auction of Third Generation ('3G') services spectrum conducted by the Department of Telecommunication ('DoT') during the previous year. Consequently, the Company has won 3G spectrum in 8 circles namely -Gujarat, Karnataka, Kerala, Punjab, Haryana, Uttar Pradesh (West), Rajasthan and Madhya Pradesh and paid Rs. 46064.700 millions as a one-time spectrum fee. The Company has received the spectrum from the DoT during September 2010 and has launched the 3G services during January, 2011.
On November 12, 2008, the Company, Tata Sons Limited ('TSL') and NTT DOCOMO, Inc. ('DOCOMO') entered into definitive agreements for the acquisition of 26 per cent equity stake (on a fully diluted basis) by DOCOMO in TTSL. As at March 31, 2012, DOCOMO holds 26.50 percent (March 31, 2011 - 26.27 percent) stake in TTSL.
Under the Share Subscription Agreement ('SSA') dated November 12, 2008 with DOCOMO, the Company and TSL have jointly and severally agreed to indemnify DOCOMO within the agreed limits, against (i) claims arising on account of any failure of the warranties provided by the Company and TSL to be true and correct in all respects, (ii) any material breach by the Company or TSL of any covenants or other provisions of SSA to the extent such covenants or provisions are not capable of specific performance; and (iii) in respect of specified contingent liabilities.
PROJECT FINANCING /
FUND UPDATE
The revised business plan of the Company (including its CDMA, GSM and 3G operations has been approved by the lenders.
As of March 31, 2012, the Company has a net current liabilities of Rs. 75009.800 millions (March 31, 2011 - Rs. 78246.900 millions) and loans of Rs. 58669.300 millions (March 31, 2011 - Rs. 70229.000 millions) are due for repayment within the next twelve months. As at March 31, 2012, the net worth of the Company is eroded by 82 percent. Based on the undrawn loan facilities, approved loan sanction facilities and the advanced stage of discussion for the additional loan facilities within the appraised debt limit amount, the Company is confident of meeting its repayment obligations, operating and capital expenditure requirements for the next 12 months.
FINANCIAL RESULTS
Financial results of the Company's operations during the year are given below:
Telecom revenue grew by 22.8% to Rs. 98953.200 millions. The Company has ramped up services under GSM technology in all circles where it has been allocated spectrum. It has not yet received start-up 2G GSM spectrum in Delhi.
The Mobility business has generated consolidated revenues of Rs. 80550.000 millions as compared to Rs. 64920.000 millions in the previous year. Other income includes co-location income and earnings from sale of equipment. Loss before exceptional item and tax for the year is higher mainly on account of higher finance and treasury charges. The exceptional item of Rs. 1193.000 millions in previous year includes provision for Access Deficit charges payable to other operators for prior years.
The Company has launched many services over the years involving significant investments. The Company is relatively a new entrant in GSM and 3G services are still at a gestation phase in the country. It is not uncommon for telecommunications companies, by virtue of the high operational costs and the capital intensive nature of the industry, to have longer gestation periods as compared to some other sectors.
PRODUCTS AND SERVICES
The Company holds Unified Access Service Licenses (UASL) in 20 out of 22 telecom circles in India. The Company is a major shareholder in Tata Teleservices (Maharashtra) Limited ('TTML') which operates in the remaining two circles of Mumbai and Maharashtra. The Company's subscriber base as of April 2012 was 6.91 crore which consists of CDMA wireless, GSM wireless and wireline subscribers.
As you know, the Company obtained 3G spectrum in 8 circles and TTML in 1 circle in 2010 (the Company and TTML together hereafter referred to as 'TTL').
The successful launch of GSM services under the Tata DOCOMO brand in 2009 and the integration of CDMA services under the same brand in the latter part of the last fiscal year have helped to boost the quality of subscriber additions. The Company has the 6th largest wireless subscriber base in India.
Tata DOCOMO introduced several innovative plans on GSM such as the Family Plans, which allow subscribers, multiple connections at one rental with free CUG calling within family members. Tata DOCOMO pioneered the launch of Roam Free Plans in GSM in which subscribers can enjoy free incoming roaming benefit without extra charges.
The Company continues to be successful in its High Speed Internet Access ('HSIA') services under the Photon brand. Photon services have continued to gather both industry and consumer endorsements. The Photon Max won 'Product of the Year' in the wireless broadband category (best innovation). Frost and Sullivan chose Photon as the best wireless broadband service provider of the Year for both 3G as well as HSIA services. The Company added 220 new towns in various circles to offer Photon Plus wireless broadband services. Photon Plus now covers 375 cities of which 94 are in the top 100 cities. The network footprint would continue to expand with market opportunities. During the year, the Company launched the Photon Max service, which effectively doubles the speed of the Photon Plus services, in 30 key cities. Available on the CDMA technology platform, the Photon Max provides users with a never-before browsing experience and seamless in-building Coverage.
The Company has continued to focus on value added service offerings. Data and Value Added Services ('VAS') revenues have now grown to account for 25.8% of the wireless revenues. The Company introduced many attractive product and service propositions such as Mobile TV, Music downloads and Personalized Caller tunes. The Company was the first to launch a Wi-Fi Router Hub on Photon Plus and also a dual hub supporting Photon Plus and 3G. The Company leveraged innovative marketing tools like syndicated ad-networks to drive visibility and ease of discovery of VAS services via the Internet.
Tata DOCOMO introduced many innovative VAS to its GSM customers across Voice, Text and Data. A rich media service called Gametanium, which is an exclusive Android gaming platform, was launched which allows subscribers to experience a superior gaming experience with 30 exclusive games. Tata DOCOMO launched Tutor on Mobile to drive education on mobile via offerings of conferencing and podcasting with domain experts at a very pocket-friendly cost and Jobs and Matrimony search on mobile which allows users to search for the perfect job and the right match.
Recent trends in the business and consumer environment are forecasting a strong growth story around data. Mobile internet is registering phenomenal growth year after year in India. In order to leverage this trend the Company has introduced a new business unit which will focus on life-enhancing services like Home Surveillance, m-Commerce, Location Based services (e.g. School bus tracking) etc.
TTL was the first private operator to launch 3G with a range of new services like Mobile TV and App Stores. The Company would also continue to address market requirements through the Photon Plus which is being made available on a growing range of handsets. The Company is also exploring the options for 3G roaming with other operators subject to Regulatory clearances.
The Company has also made significant investments in products and services specifically for the Enterprise and Small and Medium Enterprise business segments. The Company, along with TTML, has a national footprint for its Conference Call service with 15 Points of Presence across the country for providing local access to conference bridges.
MARKETING INITIATIVES
Tata DOCOMO mounted the 'Keep it Simple' campaign which highlighted service delivery differentiators and gave proof points of its promise of simplicity.
TTL got a splendid response for its national level SMS based engagement program called 'Jeet Ki Ghanti', the first-of- its-kind in this category. This program was designed to reward existing Tata DOCOMO customers (CDMA or GSM) for reposing their faith in their network.
Another national level campaign which saw tremendous response was the 'Network Campaign' which established the promise of ubiquity on Tata DOCOMO's network.
Various marketing innovations were implemented during the year and the Company bagged the prestigious 'Exchange 4 Media' award for using non conventional media under silver category.
NETWORK QUALITY AND
CUSTOMER SERVICE
As per the Indian Telecom Services Performance Indicators Reports by TRAI, the Company's network is congestion free for the last seven consecutive quarters.
The Company continues to improve the quality of its customer services. Brand Tata DOCOMO offers easy and simple tariff plans, and easy to navigate customer care IVR and access to the customer care executives. As a retention measure, the Company has launched a tool which models usage patterns, flags customers with high propensity to churn for subsequent health check call and issue resolution, if any.
On Photon, a Data Traffic Management Module was implemented to enhance customer experience. Multiple initiatives were successfully implemented on the network and IT systems which are the backbone of the business.
NETWORK ROLLOUT
During the year, the Company successfully expanded GSM wireless services to reach 9,608 towns. The Company has also entered into international bi-lateral agreements with more than 140 operators globally to offer seamless International roaming. The Company has also now spread CDMA voice and Photon Whiz services in 6,574 towns and provides HSIA service in various circles across the country.
During the year, the Company focused on operational efficiency and quality control measures with a constant endeavor to further improve its network quality. The Company also successfully unlocked the bandwidth potential in its existing transmission network and offered transmission bandwidth to new operators.
ENTERPRISE BUSINESS
In Financial Year 2011-12, while Frost and Sullivan (F&S) reported a single digit industry growth, the Enterprise Business achieved a year-on-year growth of about ~21%. Top Corporate (TC) team notched up several large orders including a single MPLS order worth USD 5Mn. Other significant wins were MPLS contracts from Government organizations for supporting their Accelerated Power Development and Reform Programme projects.
GSM business has started to gain traction in the Enterprise segment. NLD business continued to maintain its strong position in the Wholesale Voice business segment in India. Their share of business with MNC Carriers has seen an upward trend. SME business, which is in the growth phase, extended market coverage to 55 cities and grew by 35% over previous year.
The Customer Satisfaction Management and Measurement (CSMM) survey done by IMRB has shown substantial improvement in CSI Index scores across all process areas. The improvement in the areas of Service Delivery and Onsite Complaint Resolution have been testimony to the special improvement projects undertaken by the team.
The Enterprise team faced numerous challenges on the regulatory front this year. The 2G ruling from the Hon'ble Supreme Court resulted in many operators who form a major part of the carrier business of the company, putting their future rollout plans on hold. The team foresees these challenges will continue in FY 2012-13 putting further pressure on growth.
NETWORK
INFRASTRUCTURE
During the year, the Company focused on network quality, institutionalization of best practices, opex optimization and expansion of the GSM, CDMA and 3G networks. The Company has achieved another milestone by expanding the GSM Intra Circle Roaming (ICR) agreements with other domestic operators. This achievement has significantly helped in enhancing the coverage as well as in optimizing costs. TTL closed the year with 44,000 own BTS for GSM services and an additional 20,000 sites on ICR.
The Company has taken many new initiatives to improve the Network Quality and Coverage. Measures were introduced to enable better exception highlighting, action planning and monitoring of network quality. The Company has institutionalized some of the best practices and learning from these initiatives and has replicated those across its network.
During the year, the Company was awarded the 'Operator Offering the Best Quality of Service' for 2011-12 by tele. net Telecom Operator Awards 2012. The Gujarat circle achieved the 'Best Telecom Company' award at the Prestigious Gujarat Electronics and Software industries association (GESIA) fifth annual awards.
The Company has one of the largest fiber optic networks in the country with more than 93,000 Kms. of backbone fiber and 27,000 Kms. of Intra-city access fiber. The Company has entered into bi-lateral agreements with other operators to build and share fiber networks and optimize cost. The Company has also expanded its IP-MPLS technology platform to 119 nodes and now has reach in all major cities.
BUSINESS EXCELLENCE
The Company along with TTML has also recently been awarded the ISO 27001:2005 Certification, for Information Security Management System.
The Company is also taking active part in the Tata Business Excellence Model ('TBEM') process, with knowledge sharing and appropriate support being extended by Tata Quality Management Services ('TQMS'), a division of Tata Sons Limited.
The model enables the leadership to set the direction of the organization based on its Vision, Mission and Values and to strategize its business priorities based on a variety of environmental factors like competition, industry, technology and regulatory changes as well as internal capabilities. The Company attempts to achieve business excellence through various quality (six sigma/ Kaizen) projects and drive service excellence and cost optimization throughout the organization.
The Company promotes a culture of innovation and has provided various forums for employees to post innovative ideas and suggestions. Many employees have posted their ideas on Tata Innoverse and were considered for implementation within the Company as well as in other companies.
UNSECURED LOAN
|
Particulars |
31.03.2012 (Rs.
in Millions) |
31.03.2011 (Rs.
In Millions) |
|
Non-convertible debentures banks |
5000.000 |
5000.000 |
|
Rupee term loans from banks |
15000.000 |
16750.000 |
|
Term loans from banks |
10100.000 |
16000.000 |
|
Term loans from others |
12750.000 |
11750.000 |
|
Total |
42850.000 |
49500.000 |
BANKERS CHARGES
REPORT AS PER REGISTRY
|
Corporate
identity number of the company |
U74899DL1995PLC066685 |
|
Name of the
company |
TATA TELESERVICES
LIMITED |
|
Address of the registered office or of the principal place of business in India of the company |
10th Floor, Tower I , Jeevan Bharati, 124, Connaught Circus, New Delhi-110001, India E-mail: kiran.thacker@tatatel.co.in |
|
This form is for |
Creation of charge |
|
Type of charge |
Book debts Movable property (not being pledge) Others (Receivables, insurance policies etc.) |
|
Particular of
charge holder |
Axis Bank Limited, Axis House, C-2, Wadia International Centre, Pandurang Budhkar Marg, Worli, Mumbai - 400025, Maharashtra, India E-mail: debenturetrustee@axistrustee.com |
|
Nature of
instrument creating charge |
Deed of
Hypothecation dated February 28, 2013 ("DOH") executed between the
Company and Axis Bank Limited as Security Trustee. |
|
Date of
instrument Creating the charge |
28.02.2013 |
|
Amount secured by
the charge |
Rs.3500.000
millions |
|
Brief of the
principal terms an conditions and extent and operation of the charge |
Rate of Interest As per Facility
Agreement with lender. Terms of Repayment As per Facility
Agreement with lender. Margin As per Facility
Agreement with lender. Extent and Operation of the charge First pari passu
charge on whole of the borrower's moveable properties including current
assets,moveable plant and machinery, equipment, book debts,
revenues/receivables, insurance policies,securities,investments etc. more particularly
described in Schedule II to Deed of Hypothecation dated February 28, 2013 in
favour of Axis Bank in its capacity as Security Trustee for Lender as
mentioned in Schedule I to DOH. |
|
Short particulars
of the property or asset(s) charged (including complete address and location
of the property) |
First pari passu
charge on whole of the Borrower's moveable properties including current
assets, moveable plant and machinery, equipment, book debts, operating cash
flows, revenues/receivables; insurance policies, securities, investments etc.
both present and future, more particularly described in Schedule II to Deed
of Hypothecation dated February 28, 2013. |
CONTINGENT
LIABILITIES:
(Rs. in millions)
|
PARTICULARS |
31.03.2012 |
|
|
|
|
Claims against the Company not acknowledged as debts |
16689.700 |
|
|
|
FIXED ASSETS
v Tangible Assets
- Land
- Buildings
- Leasehold Improvements
- Plant and Machinery
- Network Interface Units
- Furnitures and Fittings
- Vehicles
v
Intangible
Assets
- Indefeasible Right to Use (IRU)
- License Entry Fees
- 3G Spectrum Fees
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.54.92 |
|
|
1 |
Rs.84.44 |
|
Euro |
1 |
Rs.71.32 |
INFORMATION DETAILS
|
Information
Gathered by : |
SVA |
|
|
|
|
Report Prepared
by : |
MRI |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
4 |
|
--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 |
|
42 |
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.