MIRA INFORM REPORT

 

 

Report Date :

20.11.2013

 

IDENTIFICATION DETAILS

 

Name :

RELIANCE TELECOM LIMITED

 

 

Registered Office :

H Block, 1st Floor, A Wing, Dhurubhai Ambani Knowledge City, Koparkhairane, Navi Mumbai – 400710, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

01.03.1994

 

 

Com. Reg. No.:

11-162841

 

 

Capital Investment / Paid-up Capital :

Rs. 800.000 Millions

 

 

CIN No.:

[Company Identification No.]

U32100MH1994PLC162841

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMR08293F

 

 

PAN No.:

[Permanent Account No.]

AAACR2658E

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Providing Cellular Mobile Telephone Services.

 

 

No. of Employees :

Information declined by the management

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (45)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Exist

 

 

Comments :

Subject is a part of Reliance Ada Group Company. It is a well-established company having a satisfactory track record.

 

There appear a huge accumulated losses recorded by the company during the financial year 2013.

 

However, the company ratings are primarily based on strong operational and ownership linkages with its parent company Reliance Communications Limited (RCOM*), the third largest telecom operator in the country (in terms of subscriber base) and the holding company for all the telecom operations of the Reliance Group.

 

Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments.

 

In view of strong holding, the company can be considered normal 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.

 

 

INDIAN ECONOMIC OVERVIEW

 

The current downturn provides an opportunity to push ahead with reforms to accelerate growth, says the latest India Development Update report released by the World Bank. The report says that the adverse effects of rupee depreciation are likely to be offset by the gains in the exports performance due to improved external competitiveness. Since May this year, the local currency has depreciated substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.

 

A stagflation like situation appears to have arisen as inflation jumped to an eight month high of 6.46 % for the month of September. It is up from 6.10 % in August. Growth continues to be muted with factory output plunging to 0.6 % in August. Onion prices have risen nearly 300 % from last September. Vegetables cost nearly 90 % more than they did last year. Wake up to the economic contribution of slum dwellers. They contribute more than 7.5 % to the country’s gross domestic product, according to a recent study conducted in 50 top cities.

 

136000 estimated number of jobs created during the second quarter of the current financial year. 50000 estimated number of additional jobs in the field of corporate social responsibility in the coming years.

 

The International Finance Corporation expects to come out with its rupee linked bonds issue before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has been launched in India from 1st November.

 

The Land Acquisition Act to provide just and fair compensation to farmers will come into force from January 1 next year, said Rural Development Minister Jairam Ramesh. The Act replaces a 119 year old registration. The Securities and Exchange Board of India has approved the trading of currency futures on the Bombay Stock Exchange. The exchange plans to launch the currency futures platform with advanced trading technology by the end of November.

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

ICRA

Rating

Long term rating : BBB+

Rating Explanation

Moderate degree of safety and moderate credit risk

Date

January 2013

 

 

Rating Agency Name

ICRA

Rating

Short term rating : A2+

Rating Explanation

Strong degree of safety and low credit risk.

Date

January 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 BY

 

Name :

Mr. Hitesh Chawda

Designation :

Company Secretary

Contact No.:

91-22-30386286

Date :

15.11.2013

 

 

LOCATIONS

 

Registered Office :

H Block, 1st Floor, A Wing, Dhurubhai Ambani Knowledge City, Koparkhairane, Navi Mumbai – 400710, Maharashtra, India

Tel. No.:

91-22-30386286

Fax No.:

91-22-30376622

E-Mail :

htoprani@leelalace.com

hitesh.chawda@relianceada.com

Website :

http://www.rcom.co.in

 

 

Corporate Office :

“A” Block, 2nd Floor, Dhirubhai Ambani Knowledge City, Opposite. Koparkhairana Railway Station, Thane Belapur Road, Navi Mumbai – 400709, Maharashtra, India

Tel. No.:

91-22-30373333

 

 

DIRECTORS

 

AS ON 29.09.2012

 

Name :

Mr. Gautam Bhailal Doshi

Designation :

Director

Address :

B-131,Grand Paradi, August Kranti Marg, Mumbai – 400036, Maharashtra, India

Date of Birth/Age :

23.12.1952

Qualification :

FCA

Date of Appointment :

30.01.2007

DIN No.:

00004612

 

 

Name :

Mr. Sateesh Seth

Designation :

Director

Address :

4th Floor, Summer Villa, 7th Road, Santacruz (East), Mumbai – 400055, Maharashtra, India

Date of Birth/Age :

13.08.1955

Qualification :

LLB, FCA

Date of Appointment :

11.04.1997

DIN No.:

00004631

 

 

Name :

Mr. Prakash Shenoy

Designation :

Director

Address :

Flat No.104, Fortuna B, Lodha Paradise, Near Majiwada Flyover, Eastern Express Highway, Thane (West), Mumbai – 400601, Maharashtra, India

Date of Birth/Age :

01.05.1973

Qualification :

B.Com, LLB, ACS

Date of Appointment :

30.09.2011

DIN No.:

00005394

 

 

KEY EXECUTIVES

 

Name :

Mr. Hitesh Chawda

Designation :

Company Secretary

 

 

Name :

Mr. Gaurang Chhotalal Shah

Designation :

Company Secretary

Address :

Flat No. 204, A Wing, Raj Vaibhav-1, Mahavir Nagar, Kandivali (West), Mumbai – 400067, Maharashtra, India

Date of Birth/Age :

13.12.1961

Date of Appointment :

01.09.2004

PAN No.:

AAIPS5292A

 

 

Name :

Mr. Viraj Hemchand Karani

Designation :

Manager

Address :

E Room No.24, Kanjur Estate, Near Railway Station, Kanjurmarg (West), Behind Sainath Hotel, Mumbai – 400078, Maharashtra, India

Date of Birth/Age :

18.06.1985

Date of Appointment :

13.03.2011

PAN No.:

BAYPK1278F

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 29.09.2012

 

Names of Shareholders (Equity Shares)

 

No. of Shares

 

Reliance Infocomm Infrastructure Private Limited, India

 

7419900

Prakash Shenoy Jointly with Reliance Communications Limited, India

 

1

Anil C. Shah Jointly with Reliance Communications Limited, India

 

1

Gaurang C. Shah Jointly with Reliance Communications Limited, India

 

1

Hasit Shukla Jointly with Reliance Communications Limited, India

 

1

Hitesh Chawda Jointly with Reliance Communications Limited, India

 

1

Reliance Communications Limited, India

 

27580095

 

 

 

Total

 

 

35000000

 

 

Names of Shareholders (Preference Shares)

 

 

No. of Shares

Reliance Communications Limited, India

 

45000000

 

 

 

Total

 

 

45000000

 

 

AS ON 29.09.2012

 

Equity Share Breakup

Percentage of Holding

Category

 

Bodies corporate

100.00

 

 

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Providing Cellular Mobile Telephone Services.

 

 

Products/ Services :

ITC Code No.

 

Product Descriptions

99999999

Telecommunication

 

 

GENERAL INFORMATION

 

No. of Employees :

Information declined by the management

 

 

Bankers :

IDBI Bank Limited

 

 

Facilities :

 

SECURED LOANS

31.03.2013

(Rs. In Millions)

31.03.2012

(Rs. In Millions)

LONG-TERM BORROWINGS

 

 

Rupee term loans from banks

100.000

100.000

Foreign currency term loans from banks

13435.100

10982.600

SHORT TERM BORROWINGS

 

 

Term loans from banks

4850.000

3000.000

 

 

 

Total

 

18385.100

14082.600

 

LONG-TERM BORROWINGS

 

The Company has availed Secured Loans, which have been secured by way of first pari passu charge on movable plant and machinery, including (without limitations) tower assets and optic fiber cables, if any (whether attached or otherwise), capital work-in-progress (pertaining to movable fixed assets), both present and future, including all the rights, title, interest, benefits, claims and demands in respect of all insurance contracts relating thereto of the Borrower Group; comprising of the Company, Reliance Communications Limited (RCOM), the Holding Company and its fellow subsidiaries namely Reliance Infratel Limited (RITL) and Reliance Communications Infrastructure Limited (RCIL) in favour of the Security Trustee for the benefit of the Lenders. The Company, in favour of the Lenders of the said Secured Loans, has also assigned eight Unified Access Services (UAS) Licenses, by execution of Tripartite Agreements with Department of Telecommunications (DoT) and IDBI Bank, being the agent acting on behalf of the Lenders.

 

The Secured Loans, apart from the above, are secured by pledge of equity shares held by Reliance Communications Limited (RCOM), the Holding Company and its subsidiary Reliance Infocomm Infrastructure Private Limited, in Reliance Communications Infrastructure Limited (RCIL) and the Company by execution of Share Pledge Agreement with Share Pledge Security Trustee, for the benefit of the Secured Lenders.

 

SHORT-TERM BORROWINGS

 

The Company has been sanctioned rupee loans of Rs. 6650.000 Millions (Term Loan Facility) under consortium banking arrangement on the terms and conditions as set out in sanction letters. Certain Lenders have, pursuant to the sanction letters for Term Loan Facility, agreed to grant Rs. 4850.000 MIllions as interim disbursement/ short term loan (Interim Facility) of the Term Loan Facility, pending the finalization and execution, of definitive documents within twelve months from the drawdown of the said Interim Facility, for availing the Term Loan Facility. The said Interim Facility shall be repaid within its tenure with availment of the Term Loan Facility upon execution of definitive documents and accordingly, has been classified as part of Short Term Borrowings. The said Term Loan Facility is, inter alia, secured by first pari passu charge on Fixed Assets of Borrower Group; comprising of the Company, Reliance Communications Limited (RCOM), the Holding Company and its fellow subsidiaries namely Reliance Infratel Limited (RITL) and Reliance Communications Infrastructure Limited (RCIL) including claims and demands in respect of all insurance contracts relating thereto. Apart from the above, Term Loan Facility has also been secured by assignment of telecom licenses of the Company and pledge of equity shares held by Reliance Communications Limited (RCOM) and Reliance Infocomm Infrastructure Private Limited in the Company and Reliance Communications Infrastructure Limited (RCIL). Rupee Loans include Rs. 4250.000 Millions secured by second pari passu charge on movable Fixed Assets including Capital work-in-progress of the Borrower Group.

 

 

 

 

 

 

Banking Relations :

--

 

 

Financial Institution :

Axis Trustee Services Limited, Axis House, 2nd Floor, Bombay Dyeing Mills Compound, Pandurang Budhkar Marg, Worli, Mumbai - 400025, Maharashtra, India

 

 

Auditors 1 :

 

Name :

Chaturvedi and Shah

Chartered Accountants

Address :

714-715, Tulsiani Chambers, 212, Nariman Point, Mumbai – 400021, Maharashtra, India

Income-tax PAN of auditor or auditor's firm :

AAAFC0662N

 

 

Auditors 2 :

 

Name :

Price Waterhouse

Chartered Accountants

Address :

252, Veer Savarkar Marg, Shivaji Park, Dadar, Mumbai - 400028, Maharashtra, India

Income-tax PAN of auditor or auditor's firm :

AABCP9181H

 

 

Holding company :

Reliance Communications Limited [L45309MH2004PLC147531]

 

 

Ultimate Holding Company :

Reliance Innoventure Private Limited (RIPL)

 

 

Fellow Subsidiary company :

·         Reliance Communications Infrastructure Limited [U64203MH1997PLC166329]

Reliance Infratel Limited [U72900MH2001PLC131598]

Reliance Tech Services Private Limited [U72900MH2007PTC172690]

Reliance IDC Limited [U72900MH2001PLC131600]

Reliance Webstore Limited [U72900MH2000PLC128101]

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

120,000,000

Equity Shares

Rs. 10/- each

Rs. 1200.000 Millions

100,000,000

Preference Shares

Rs. 10/- each

Rs. 1000.000 Millions

280,000,000

Unclassified Shares

Rs. 10/- each

Rs. 2800.000 Millions

 

Total

 

Rs. 5000.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

35,000,000

Equity Shares

Rs. 10/- each

Rs. 350.000 Millions

45,000,000

Preference Shares

Rs. 10/- each

Rs. 450.000 Millions

 

Total

 

Rs. 800.000 Millions

 


 

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

800.000

800.000

800.000

(b) Reserves & Surplus

(3486.600)

151.200

(1251.700)

(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)

(2686.600)

951.200

(451.700)

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

13535.100

11082.600

4159.500

(b) Deferred tax liabilities (Net)

0.000

0.000

0.000

(c) Other long term liabilities

0.000

18000.000

18000.500

(d) long-term provisions

17.600

26.900

0.000

Total Non-current Liabilities (3)

13552.700

29109.500

22160.000

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

22694.000

22154.000

18390.600

(b) Trade payables

8929.400

7611.800

4232.900

(c) Other current liabilities

20051.300

20305.600

24603.200

(d) Short-term provisions

3.400

1.200

54.800

Total Current Liabilities (4)

51678.100

50072.600

47281.500

 

 

 

 

TOTAL

62544.200

80133.300

68989.800

 

 

 

 

II.      ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

34057.600

30151.700

14928.600

(ii) Intangible Assets

16345.500

17369.100

5286.100

(iii) Capital work-in-progress

4483.000

8118.300

26527.900

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

0.000

0.000

0.000

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

2229.400

2782.500

1801.100

(e) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

57115.500

58421.600

48543.700

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

133.900

118.500

110.900

(c) Trade receivables

1845.400

1971.000

794.600

(d) Cash and cash equivalents

753.800

65.300

162.900

(e) Short-term loans and advances

2695.600

19556.900

19377.700

(f) Other current assets

0.000

0.000

0.000

Total Current Assets

5428.700

21711.700

20446.100

 

 

 

 

TOTAL

62544.200

80133.300

68989.800

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Revenue from operations

32481.900

26344.400

23461.600

 

 

Other Income

57.300

95.000

539.400

 

 

TOTAL                                     (A)

32539.200

26439.400

24001.000

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of materials consumed

25461.500

21736.200

20968.400

 

 

Employee benefit expense

1003.200

1090.100

397.800

 

 

Other expenses

5486.800

5044.300

1736.300

 

 

TOTAL                                     (B)

31951.500

27870.600

23102.500

 

 

 

 

 

Less

PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

587.700

(1431.200)

898.500

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

1013.000

602.500

609.400

 

 

 

 

 

 

PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                               (E)

(425.300)

(2033.700)

289.100

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

3261.600

(5086.800)

3178.600

 

 

 

 

 

 

EXCEPTIONAL ITEMS

0.000

(16.500)

(0.100)

 

 

 

 

 

 

PROFIT/ (LOSS) BEFORE TAX (E-F)                  (G)

(3686.900)

3036.600

(2889.600)

 

 

 

 

 

Less

TAX                                                                  (H)

0.000

0.000

(710.500)

 

 

 

 

 

 

PROFIT/ (LOSS) AFTER TAX (G-H)                   (I)

(3686.900)

3036.600

(2179.100)

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

International Roaming

362.300

376.400

241.800

 

 

Others

0.000

94.800

0.000

 

TOTAL EARNINGS

362.300

471.200

241.800

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Capital Goods

279.200

1589.200

6867.400

 

 

 

 

 

 

Earnings/ (Loss) Per Share (Rs.)

(105.34)

87.23

(62.26)

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)

(11.33)

11.49

(9.08)

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

(11.35)

11.53

(12.32)

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

(6.35)

4.22

(6.81)

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

1.37

3.19

6.40

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

(13.49)

34.94

(49.92)

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

0.11

0.43

0.43

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

CURRENT MATURITIES OF LONG TERM DEBT

 

Particulars

31.03.2013

(Rs. In Millions)

31.03.2012

(Rs. In Millions)

31.03.2011

(Rs. In Millions)

Current maturities of Long-term Debts

 

 

 

Foreign Currency Loans from Banks

777.600

499.300

305.400

 

 

 

 

 

 

Sr. No.

Check List by Info Agents

Available in Report

(Yes / No)

1]

Year of Establishment

Yes

2]

Locality of the firm

Yes

3]

Constitutions of the firm

Yes

4]

Premises details

No

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

Yes

8]

No. of employees

No

9]

Name of person contacted

Yes

10]

Designation of contact person

Yes

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

Yes

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

 

 

LITIGATION DETAILS

 

HIGH COURT OF BOMBAY

 

CASE DETAILS

BENCH: BOMBAY

Lodging No: CPL/401/2013    Filing Date: 21.06.2013     Reg. No.: CP/449/2013     Reg. Date: 07.08.2013

Petitioner: MILLWARD BROWN MARKET RESEARCH SERVICES                Respondent: RELIANCE TELECOM LIMITED CIN NO. U32100MH1994PLC162841

Petn. Adv : ADVAYA LEGAL                                                                              Resp. Adv.: MULLA AND MULLA AND CRAIGIE BLUNT AND CAROE

District: MUMBAI

Bench: SINGLE

Status: Pre-Admission                                                             Category: COMPANY PETITION U/SEC 433,434,439 COMPANIES ACT

Next Date: 03.12.2013                                                             Stage: FOR DIRECTION (COMPANY MATTERS)

Coram: HON’BLE SHRI JUSTICE N.M. JAMDAR

Last Date: 12.11.2013                                                              Stage: FOR DIRECTION (COMPANY MATTERS)                                                             

Last Coram: HON’BLE SHRI JUSTICE N.M. JAMDAR

Act: Companies Act and Rules 1956         UNDER SECTION: 433 AND 434

 

 

INDEX OF CHARGES

 

S.NO.

CHARGE ID

DATE OF CHARGE CREATION/MODIFICATION

CHARGE AMOUNT SECURED

CHARGE HOLDER

ADDRESS

SERVICE REQUEST NUMBER (SRN)

1

10460117

20/11/2013

2,000,000,000.00

AXIS TRUSTEE SERVICES LIMITED

AXIS HOUSE, 2ND FLOOR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI - 400025, MAHARASHTRA, INDIA

B89498414

2

10460129

20/11/2013

10,000,000,000.00

AXIS TRUSTEE SERVICES LIMITED

AXIS HOUSE, 2ND FLOOR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI - 400025, MAHARASHTRA, INDIA

B89501746

3

10447898

16/09/2013

2,500,000,000.00

AXIS TRUSTEE SERVICES LIMITED

AXIS HOUSE, 2ND FLOOR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI - 400025, MAHARASHTRA, INDIA

B84473685

4

10440067

05/08/2013

2,500,000,000.00

AXIS TRUSTEE SERVICES LIMITED

AXIS HOUSE, 2ND FLOOR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI - 400025, MAHARASHTRA, INDIA

B80950801

5

10429174

03/06/2013

1,160,000,000.00

AXIS TRUSTEE SERVICES LIMITED

AXIS HOUSE, 2ND FLOOR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI - 400025, MAHARASHTRA, INDIA

B76287432

6

10413228

26/03/2013

5,000,000,000.00

AXIS TRUSTEE SERVICES LIMITED

AXIS HOUSE, 2ND FLOOR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI - 400025, MAHARASHTRA, INDIA

B71274880

7

10400014

28/01/2013

15,000,000,000.00

AXIS TRUSTEE SERVICES LIMITED

AXIS HOUSE, 2ND FLOOR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI - 400025, MAHARASHTRA, INDIA

B66712456

8

10399058

22/01/2013

3,000,000,000.00

AXIS TRUSTEE SERVICES LIMITED

AXIS HOUSE, 2ND FLOOR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI - 400025, MAHARASHTRA, INDIA

B66416793

9

10396460

11/01/2013

5,000,000,000.00

AXIS TRUSTEE SERVICES LIMITED

AXIS HOUSE, 2ND FLOOR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI - 400025, MAHARASHTRA, INDIA

B65715237

10

10396467

11/01/2013

3,250,000,000.00

AXIS TRUSTEE SERVICES LIMITED

AXIS HOUSE, 2ND FLOOR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI - 400025, MAHARASHTRA, INDIA

B65716516

11

10387880

27/11/2012

10,000,000,000.00

AXIS TRUSTEE SERVICES LIMITED

AXIS HOUSE, 2ND FLOOR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI - 400025, MAHARASHTRA, INDIA

B62521836

12

10380766

16/10/2012

3,000,000,000.00

AXIS TRUSTEE SERVICES LIMITED

AXIS HOUSE, 2ND FLOOR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI - 400025, MAHARASHTRA, INDIA

B59731562

13

10363296

06/07/2012

3,000,000,000.00

AXIS TRUSTEE SERVICES LIMITED

AXIS HOUSE, 2ND FLOOR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI - 400025, MAHARASHTRA, INDIA

B42745299

14

10350236

26/04/2012

18,000,000,000.00

AXIS TRUSTEE SERVICES LIMITED

AXIS HOUSE, 2ND FLOOR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI - 400025, MAHARASHTRA, INDIA

B37749702

15

10350294

26/04/2012

5,000,000,000.00

AXIS TRUSTEE SERVICES LIMITED

AXIS HOUSE, 2ND FLOOR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI - 400025, MAHARASHTRA, INDIA

B37748142

16

10343037

26/03/2012

3,000,000,000.00

AXIS TRUSTEE SERVICES LIMITED

AXIS HOUSE, 2ND FLOOR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI - 400025, MAHARASHTRA, INDIA

B35398973

17

10337097

22/02/2012

47,185,200,000.00

AXIS TRUSTEE SERVICES LIMITED

AXIS HOUSE, 2ND FLOOR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI - 400025, MAHARASHTRA, INDIA

B32763955

18

10320900

09/12/2011

5,000,000,000.00

AXIS TRUSTEE SERVICES LIMITED

AXIS HOUSE, 2ND FLOOR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI - 400025, MAHARASHTRA, INDIA

B26735910

19

10307311

22/09/2011

15,000,000,000.00

AXIS TRUSTEE SERVICES LIMITED

AXIS HOUSE, 2ND FLOOR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI - 400025, MAHARASHTRA, INDIA

B21023056

20

10293046

30/06/2011

27,076,000,000.00

AXIS TRUSTEE SERVICES LIMITED

AXIS HOUSE, 2ND FLOOR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI - 400025, MAHARASHTRA, INDIA

B15301476

21

10293078

30/06/2011

200,000,000.00

AXIS TRUSTEE SERVICES LIMITED

AXIS HOUSE, 2ND FLOOR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI - 400025, MAHARASHTRA, INDIA

B15309594

22

10269393

09/03/2011

86,850,000,000.00

AXIS TRUSTEE SERVICES LIMITED

AXIS HOUSE, 2ND FLOOR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI - 400025, MAHARASHTRA, INDIA

B07382690

23

10268389

04/03/2011

204,208,617,724.50

AXIS TRUSTEE SERVICES LIMITED

AXIS HOUSE, 2ND FLOOR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI - 400025, MAHARASHTRA, INDIA

B07053960

24

10177606

04/03/2011 *

30,000,000,000.00

AXIS TRUSTEE SERVICES LIMITED

AXIS HOUSE, 2ND FLOOR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI - 400025, MAHARASHTRA, INDIA

B07054364

 

* Date of charge modification

 

 

UNSECURED LOANS

 

UNSECURED LOANS

31.03.2013

(Rs. In Millions)

31.03.2012

(Rs. In Millions)

SHORT TERM BORROWINGS

 

 

Term loans from banks

1329.900

766.500

Loans and advances from related parties

16514.100

18387.500

 

 

 

Total

 

17844.000

19154.000

 

 

Note:

 The registered office of the company has been shifted from Main Admn Building, Block No. GF-1, Village – Meghpar/Padana, Lalpur, Jamnagar – 361280, Gujarat, India to the present address w.e.f. 01.05.2006.

 

 

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

During the year, net billing revenue of the Company increased to Rs. 32481.900 Millions, signifying a growth of 23% over the corresponding amount of Rs. 26344.400 Millions during the previous year.

 

Operating profit for the year amounted to Rs. 587.700 Millions (as compared to loss during the previous year Rs. 1431.200 Millions).

 

The Company has, during the year, entered into various contracts in the area of telecommunication business. While benefits from such contracts will accrue in the future years, the Board of Directors shall periodically review their progress.

 

 

CONTINGENT LIABILITIES:

 

Particulars

31.03.2013

(Rs. In Millions)

31.03.2012

(Rs. In Millions)

(a) Claims against the Company not acknowledged as debts*

 

* These represent demands received from Sales Tax / Service Tax / Entry Tax authorities in various States/ Department of Telecommunications, which are pending before the Appellate Authorities / Tribunal / High Court/TDSAT and the stay orders are granted against the said demands. The Company is confident that the aforesaid claims will be successfully contested.

 

The Company has deposited Rs. 373.000 Millions (Previous year Rs. 299.700 Millions) under protest with the Sales tax / Service Tax / Entry Tax authorities/ Department of Telecommunications against the demand, which is included in Loans and Advances

3064.100

1369.100

(b) Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for

668.100

1333.900

 

(c) Department of Telecommunication (DoT) has issued a demand on the Company towards levy of one time Spectrum Charges, being retrospective charges of Rs. 47.000 Millions for holding GSM Spectrum beyond 6.2 MHz for the period from July 1, 2008 to December 31, 2012 and prospective charge of Rs. 1687.700 Millions for GSM spectrum held beyond 4.4 MHz for the period from January 1, 2013 till the expiry of the initial terms of the respective Licenses. Based on a petition filed by the Company, the Hon’ble High Court of Kolkata, vide its order dated February 14, 2013, has stayed the operation of the impugned demand till further order. The Company is of the opinion that the said demand, inter alia, is an alteration of financial terms of the licenses issued in the past and has also been legally advised. Accordingly, no provision in this regard is required.

 

(d) Pursuant to the Telecom License Agreement, Department of Telecommunications (DoT) directed audit of various Telecom companies including of the Company. The Special Auditors appointed by DoT were required to verify of the Company for the years ended March 31, 2007 and March 31, 2008 relating to license fees and revenue share. The Company has received show cause notices dated January 31, 2012 and subsequently received demand note dated November 8, 2012 based on report of the Special Audit directed by DoT relating to alleged shortfall of license fees of Rs.130.000 Millions and interest thereon as applicable. The company has challenged the Special audit demand notices dated November 11, 2012, inter alia demanding license fee on non-telecom revenue based on Special Audit Report before the Hon’ble TDSAT. The Hon’ble TDSAT has stayed the operation of such impugned demand during the pendency of the Petitions before them. The Company is confident that based on advice and, inter alia, on current understanding of the regulation by the industry and judicial pronouncements directly applicable to the issues raised in the special audit report, there shall not be any liability in this regard and hence, no provision is required in the accounts of the Company.

 

(e) Consequent to the investigations by an investigative agency (CBI) in relation to the entire telecom sector in India, certain preliminary charges have been framed by a Trial Court in October, 2011 against a Director and the Company. The charges so framed are preliminary in nature based on investigations only, and the persons named are presumed to be innocent, till their alleged guilt is established after a fair trial.

 

As legally advised, the persons so named deny all charges, and a writ petition for quashing the charges framed have been filed in October, 2011 in the Hon’ble High Court of Delhi has been objected by the investigative agency before Hon’ble Supreme Court for seeking stay there against and transferring the matter thereto, which is pending for hearing. These preliminary charges have no impact on the business, operations, and/ or licenses of the Company.

 


FIXED ASSETS:

 

·         Land

Buildings

Plant and equipment

Furniture and fixtures

Vehicles

Office equipment

Leasehold improvements

Computer software

Licenses and franchise


 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

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 records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                              None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 


 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs. 62.23

UK Pound

1

Rs. 100.18

Euro

1

Rs. 84.06

 

 

INFORMATION DETAILS

 

Information Gathered by :

PDT

 

 

Report Prepared by :

BVA

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

3

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

5

--RESERVES

1~10

3

--CREDIT LINES

1~10

5

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

YES

--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

DEFAULTERS 

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

45

 

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

 

--

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.