|
Report Date : |
04.10.2013 |
IDENTIFICATION DETAILS
|
Name : |
RAILTEL CORPORATION OF INDIA LIMITED |
|
|
|
|
Registered
Office : |
A Government of India Under Taking 10th Floor, Bank of Baroda,
Building 16, Sansad Marg, New Delhi-110001 |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
26.09.2000 |
|
|
|
|
Com. Reg. No.: |
55-107905 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs.3209.400
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U64202DL2000GOI107905 |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business
: |
Providing Telecommunication Services and also engaged in Construction
Activity. |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
A (61) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 28270000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Exist |
|
|
|
|
Comments : |
Subject is a well established public sector undertaking. It has been
granted a “Mini Ratna” status by Government of India. Even though the company has seen a slight dip in its sales turnover,
there appears an increase in the net profitability during 2012. However,
financial and liquidity position of the company appears to be good. Trade relations are fair. Business is active. Payment terms are
reported as regular and as per commitments. In view of strong government supports, the undertaking can be
considered for business dealings at usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very
High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
We are living in a
world where volatility and uncertainty have become the New Normal. We saw
a change of government in countries like Tunisia, Egypt, Libya and Vietnam.
Once powerful countries in Europe are now fighting for bankruptcy. We have
taken growth in the developing part of the world for granted but economic
growth in China and India has begun to slow. Companies that were synonymous
with their product categories just a few years ago are now no longer in
existence. Kodak, the inventor of the digital camera had to wind up its
operations, HMV, the British entertainment retailing company and Borders, once
the second largest bookstore have shut down due to their inability to evolve
their business models with the changing time. Readers’ Digest, Thomson Register
are no more !
There is another
megatrend happening. The World order is changing as economic power shifts from
West to East. According to McKinsey study, it took Britain more than 100 years
to double its economic output per person during its industrial revolution and
the US later took more than 50 years to do the same. More than a century later,
China and India have doubled their GDP per capital in 12 and 18 years
respectively. By 2020, emerging Asia will become the world’s largest consuming
block, overtaking North America.
The years after the
outbreak of the global financial crisis, the world economy continues to remain
fragile. The Indian economy demonstrated remarkable resilience in the initial years
of the contagion but finally lost ground last year. GDP growth slowed down.
Currency has been weakening. There is a marked deceleration in agriculture,
industry and services. Dampening sentiment led to a cut-back in investment as
well as private consumption expenditure. Inflation remained at high
levels fuelled by the pressure from the food and fuel sectors. The large fiscal
and current account deficit s continued to cause grave concern. It is
imperative that India regains its growth trajectory of 8-9 % sooner than later.
This is crucially important given the need to create gainful livelihood
opportunities for the millions living in poverty as also the large contingent
of young people joining the job market every year.
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 : |
A Government of India Under Taking 10th Floor, Bank of
Baroda, Building 16, Sansad Marg, New Delhi-110001, India |
|
Tel. No.: |
91-11-23311707 |
|
Fax No.: |
91-11-23311711 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
Plot No. 143, Industrial Area, Opposite Gold Souk Mall, Sector 44,
Gurgaon-122003, Haryana, India |
|
Tel. No.: |
91-124-2714000 |
|
Fax No.: |
91-124-4236084 |
|
E-Mail : |
|
|
|
|
|
Regional Office : |
RGM (Northern
Region) 501-502,
Arunachal Building, 19, Barakhamba Road, New Delhi-110001, India Tele.: 91-11-23752114 – 16 RGM (Southern
Region) 2nd Floor, B
Block, Rail Nilayam Secunderabad-500426, Andhra Pradesh, India Tele.: 91-40-27820429 Fax : 91-40-27820682 RGM (Eastern
Region) 1st Floor, New
Koilaghat Building, 14, Strand Road, Kolkata-700001, West Bengal, India Tele.:
91-33-2218651 to 653 Fax : 91-33-22138655 RGM (Western
Region) Microwave Complex,
Senapati Bapat Marg, Opp. Ambika Mills, Mumbai-400013, Maharashtra, India Tele.: 91-22-24923925 |
DIRECTORS
AS ON 31.03.2012
|
Name : |
Mr. Kul Bhushan, ML |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. R.K. Bahuguna |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. Rajiv Sinha |
|
Designation : |
Director (POM) |
|
|
|
|
Name : |
Mr. R.K. Mitra |
|
Designation : |
Director (Finance) (upto 30.6.2012) |
|
|
|
|
Name : |
Mr. N.K. Gupta |
|
Designation : |
Director (Finance) from 10.7.2012 |
|
|
|
|
Name : |
Mr. Naresh Salecha |
|
Designation : |
Nominee Director |
|
|
|
|
Name : |
Mr. A.K. Bandyopadhyay |
|
Designation : |
Part Time Non Official Director |
|
|
|
|
Name : |
Mr. A.K. Sinha |
|
Designation : |
Part Time Non Official Director |
|
|
|
|
Name : |
Mr. R.K. Goyal |
|
Designation : |
Part Time Non Official Director |
|
|
|
|
Name : |
Mr. Bhaskar Gupta |
|
Designation : |
Part Time Non Official Director |
KEY EXECUTIVES
|
Audit Committee : |
Mr. A.K.
Bandyopadhyay Mr. Naresh
Salecha Mr. A.K. Sinha Mr. R.K. Goyal Mr. Bhaskar Gupta |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
NOT AVAILABLE
BUSINESS DETAILS
|
Line of Business : |
Providing Telecommunication Services and also engaged in Construction
Activity. |
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||
|
Bankers : |
·
State Bank of India ·
Union Bank of India |
||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Statutory Auditors : |
|
|
Name : |
V.K. Verma and Company Chartered Accountants |
|
Address : |
C-37, Connaught Place, New Delhi-110001, India |
|
Tel. No.: |
91-11-23415811/ 23416858 |
|
E-Mail : |
|
|
|
|
|
Branch Auditors : |
Located At: ·
M K P and Associates Chartered Accountants ·
Guha and Matilal Chartered Accountants ·
T Koteswara Rao and Company Chartered Accountants |
CAPITAL STRUCTURE
AS ON 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1000000000 |
Equity Shares |
Rs.10/- each |
Rs.10000.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
15000007 |
Equity Shares |
Rs.10/- each
|
Rs.150.000
Millions |
|
305938400 |
Equity Shares For Consideration Other Than Cash |
Rs.10/- each
|
Rs.3059.400
Millions |
|
|
TOTAL
|
|
Rs.3209.400 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
|
|
31.03.2012 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
|
3209.400 |
|
(b) Reserves & Surplus |
|
|
3815.100 |
|
(c) Money received
against share warrants |
|
|
43.200 |
|
|
|
|
|
|
(2) Share
Application money pending allotment |
|
|
0.000 |
|
Total Shareholders’ Funds (1) + (2) |
|
|
7067.700 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term
borrowings |
|
|
629.600 |
|
(b) Deferred tax liabilities (Net) |
|
|
12.600 |
|
(c) Other long
term liabilities |
|
|
5949.100 |
|
(d) long-term
provisions |
|
|
46.700 |
|
Total Non-current
Liabilities (3) |
|
|
6638.000 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
|
|
5.700 |
|
(b)
Trade payables |
|
|
484.200 |
|
(c)
Other current liabilities |
|
|
1890.200 |
|
(d) Short-term
provisions |
|
|
418.900 |
|
Total Current
Liabilities (4) |
|
|
2799.000 |
|
|
|
|
|
|
TOTAL |
|
|
16504.700 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
|
|
5694.700 |
|
(ii)
Intangible Assets |
|
|
0.000 |
|
(iii)
Capital work-in-progress |
|
|
329.600 |
|
(iv) Intangible assets under development |
|
|
0.000 |
|
(b) Non-current
Investments |
|
|
0.000 |
|
(c) Deferred tax
assets (net) |
|
|
0.000 |
|
(d) Long-term Loan and Advances |
|
|
126.300 |
|
(e) Other
Non-current assets |
|
|
0.000 |
|
Total Non-Current
Assets |
|
|
6150.600 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
|
|
0.000 |
|
(b)
Inventories |
|
|
23.000 |
|
(c)
Trade receivables |
|
|
1068.800 |
|
(d) Cash
and cash equivalents |
|
|
6688.900 |
|
(e)
Short-term loans and advances |
|
|
2280.400 |
|
(f)
Other current assets |
|
|
293.000 |
|
Total
Current Assets |
|
|
10354.100 |
|
|
|
|
|
|
TOTAL |
|
|
16504.700 |
|
SOURCES OF FUNDS |
|
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
3209.400 |
3209.400 |
|
|
2] Share Capital to be Issued |
|
1.500 |
0.000 |
|
|
3] Reserves & Surplus |
|
3119.300 |
2316.800 |
|
|
4] (Accumulated Losses) |
|
0.000 |
0.000 |
|
|
NETWORTH |
|
6330.200 |
5526.200 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
630.000 |
840.000 |
|
|
2] Unsecured Loans |
|
416.400 |
624.800 |
|
|
TOTAL BORROWING |
|
1046.400 |
1464.800 |
|
|
DEFERRED TAX LIABILITIES |
|
8.800 |
3.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
7385.400 |
6994.000 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
6517.100 |
6763.800 |
|
|
Capital work-in-progress |
|
324.600 |
390.400 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
6.500 |
11.500 |
|
|
Sundry Debtors |
|
1255.500 |
1108.100 |
|
|
Cash & Bank Balances |
|
3642.500 |
1003.700 |
|
|
Other Current Assets |
|
89.900 |
4.000 |
|
|
Loans & Advances |
|
2186.600 |
1947.900 |
|
Total
Current Assets |
|
7181.000 |
4075.200 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
1080.400 |
1378.600 |
|
|
Other Current Liabilities |
|
5107.000 |
2397.600 |
|
|
Provisions |
|
449.900 |
459.200 |
|
Total
Current Liabilities |
|
6637.300 |
4235.400 |
|
|
Net Current Assets |
|
543.700 |
(160.200) |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
7385.400 |
6994.000 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
|
|
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Lease Revenue – NLD (Bandwidth) |
|
|
1988.600 |
|
|
|
Lease Revenue – ISP Licence |
|
|
240.000 |
|
|
|
Lease Revenue – IP-1 Licence |
|
|
704.000 |
|
|
|
Lease Revenue – NLD (VPN) |
|
|
91.000 |
|
|
|
Interest From Banks (Gross) |
|
|
565.500 |
|
|
|
TDS Income From Railways Deposit Works |
|
|
357.200 |
|
|
|
Other Income |
|
|
93.400 |
|
|
|
TOTAL |
|
|
4039.700 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Employee's Remuneration & Benefits |
|
|
359.200 |
|
|
|
Cost of Materials Consumed |
|
|
1174.000 |
|
|
|
Administrative & Other Expenses |
|
|
181.000 |
|
|
|
TOTAL |
|
|
1714.200 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
|
|
2325.500 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
|
|
61.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
|
|
2263.600 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
|
|
1103.300 |
|
|
|
|
|
|
|
|
|
Less |
EXCEPTIONAL
ITEMS |
|
|
140.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX |
|
|
1019.400 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
|
|
160.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX |
|
|
858.500 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
|
|
1519.300 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Interim Dividend |
|
|
140.000 |
|
|
|
Dividend Tax |
|
|
22.700 |
|
|
|
Transferred to the General Reserves (Cumulative) |
|
|
2000.000 |
|
|
BALANCE CARRIED
TO THE B/S |
|
|
215.100 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
|
|
2.67 |
|
|
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Lease Revenue – NLD (Bandwidth) |
|
1741.900 |
1971.500 |
|
|
|
Lease Revenue – ISP Licence |
|
223.300 |
170.000 |
|
|
|
Lease Revenue – IP-1 Licence |
|
566.100 |
470.600 |
|
|
|
Lease Revenue – NLD (VPN) |
|
60.400 |
142.100 |
|
|
|
Interest From Banks (Gross) |
|
133.300 |
19.900 |
|
|
|
TDS Income From Railways Deposit Works |
|
671.000 |
1126.800 |
|
|
|
Other Income |
|
234.700 |
96.100 |
|
|
|
TOTAL |
|
3630.700 |
3997.000 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Employee's Remuneration & Benefits |
|
347.500 |
299.000 |
|
|
|
Cost of Materials Consumed |
|
0.000 |
0.000 |
|
|
|
Administrative & Other Expenses |
|
135.700 |
106.300 |
|
|
|
Other Operation & Maintenance Expenses |
|
235.400 |
274.300 |
|
|
|
Operation & Maintenance Expenses |
|
228.000 |
197.900 |
|
|
|
License Fees to DOT |
|
110.000 |
126.500 |
|
|
|
Revenue Share to Railways |
|
210.800 |
137.900 |
|
|
|
Railway Project Expenses |
|
654.900 |
1066.500 |
|
|
|
Provisions For Doubtful Debts/Advances |
|
7.800 |
36.500 |
|
|
|
TOTAL |
|
1930.100 |
2244.900 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
|
1700.600 |
1752.100 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
|
112.700 |
147.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
|
1587.900 |
1604.200 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
|
510.700 |
470.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT FOR THE
YEAR |
|
1077.200 |
1133.500 |
|
|
|
|
|
|
|
|
|
Less |
PROVISION FOR IMPAIRMENT |
|
187.000 |
0.000 |
|
|
|
PROVISION FOR ARBITRATION CLAIM |
|
0.000 |
35.400 |
|
|
|
PRIOR PERIOD ADJUSTMENT (NET) |
|
(35.800) |
10.100 |
|
|
|
PROVISION FOR RAILWAYS |
|
0.000 |
0.000 |
|
|
Add |
DEPRECIATION ADJUSTMENT FOR EARLIER YEARS |
|
39.300 |
88.800 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX |
|
965.300 |
1176.800 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
|
11.200 |
53.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX |
|
954.100 |
1122.900 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
|
1116.800 |
569.400 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Dividend Paid (Interim) |
|
80.000 |
150.000 |
|
|
|
Dividend (Proposed) |
|
50.000 |
0.000 |
|
|
|
Dividend Distribution Tax |
|
21.600 |
25.500 |
|
|
|
Transferred to the General Reserves |
|
400.000 |
400.000 |
|
|
BALANCE CARRIED
TO THE B/S |
|
1519.300 |
1116.800 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Stores & Spares |
|
0.000 |
0.000 |
|
|
|
Capital Goods |
|
107.100 |
13.700 |
|
|
TOTAL IMPORTS |
|
107.100 |
13.700 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
|
|
|
|
|
|
- Basic |
|
2.97 |
3.50 |
|
|
|
- Diluted |
|
2.97 |
3.50 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
21.25
|
26.27 |
28.09 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
33.71
|
37.25 |
42.73 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
6.30
|
7.05 |
10.85 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.14
|
0.15 |
0.21 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.09
|
0.17 |
0.27 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.70
|
1.08 |
0.96 |
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 |
No |
|
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 |
No |
|
31] |
PAN of Proprietor/Partner/Director, if available |
No |
|
32] |
Date
of Birth of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
No |
|
CASE DETAILS: IN THE HIGH COURT OF DELHI AT NEW DELHI ARB.P. 216/2013 UNITED TELECOMS LIMITED ..... Petitioner
Through: Mr. Shambhu Sharma and Mr. Yaman Kumar,
Advocates CORAM: HON'BLE MR. JUSTICE RAJIV SHAKDHER ORDER
Though time was
granted to the respondent, no reply has been filed. The learned counsel
for the respondent states that a section 9 petition
Subject to the orders of Hon?ble the Acting Chief
Justice, list before the same bench on 03.10.2013. RAJIV SHAKDHER, J AUGUST 21, 2013 yg $ 5 |
INDEX OF CHARGES: NO
CHARGES EXIST FOR COMPANY
FINANCIAL PERFORMANCE:
During the
financial year 2011-12, total revenue earned by Subject is Rs. 4040.000
Millions. The operating profit earned during 2011-12 has been Rs. 1159.900
Millions while net profit earned has been Rs. 827.900 Millions. Subject has
also paid an interim dividend of Rs. 50.000 Millions to Ministry of Railways.
From NLD (Bandwidth) services, Subject earned Rs. 1990.000 Millions. during the
year which is 13% higher than last year. While earning from IP-1 services has
been Rs. 700.000 Millions. reflecting a growth of 25% over last year. Total
earning from IP-VPN and IBW services has been Rs. 330.000 Millions. registering
a growth of 18% over last year. The services offered by Subject includes
National Long Distance Bandwidth leasing (2 Mbps to 155 Mbps and above),
Internet Services, Tower Space for Antennae (1000+ towers nationwide),
Co-location services, Dark Fibre leasing and VPN services. Under the new
revised business plan, the target for the year 2012-13 is to achieve a total
OFC network of 46000 RKM and increasing PoPs to 4500. During the year 2012-13,
Subject shall also commission DWDM network in the remaining part of the country
on important routes with initial capacity of 100G.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT:
ECONOMY OVERVIEW:
Economic Survey
2010-11 had anticipated that the Indian economy would register a growth of
around 9% in 2011-12, almost reverting the growth levels to the pre-crisis
levels. However, during the course of the year it became increasingly clear
that economy would fall short of that growth rate by a significant margin due
to various international and national macroeconomic factors. This was indeed
pointed out during the Mid-Year Analysis for the year 2011-12 which stated that
the Indian economy was expected to register a growth rate of 7.5% during the
year. However as per the Economic Survey 2011-12 and the advance estimate
brought out by the CSO (Central Statistics Office) the growth rate of the
Indian Economy had been 6.9% only during 2011-12. Also as per the latest
survey, Telecom and IT services contributed approx. 3% to the country's GDP
during the year.
INDUSTRY STRUCTURE AND DEVELOPMENT:
The Indian
telecommunication industry is one of the fastest growing in the world. As per
TRAI report, the number of telephone subscribers (fixed and mobile) in the
country reached 951.34 million in March 2012 implying a teledensity of 78.66%
registering a growth of 12.5% over the last year. Wireless subscribers have
increased to 919.17 million by the end of March 2012, registering a growth of
13.25% over the same quarter of last year. Wireless teledensity stood at 76%
with only 38% tele-density in rural area. The growth of broadband subscriber
base in India has hitherto been below expectations. The broadband subscribers
have grown from a meager 11.89 million as on March 2011 to about 13.79 million
as on March 2012. The internet usage in India is also low by world standards.
In 2012, the estimated number of internet subscribers is about 22.39 million
apart from 431.37 million wireless subscribers who have subscribed to Data
services. The dominant access technology is DSL accounting for 85.12% market
share followed by Cable Modem at 5.75%. Fibre access share is still less being
0.23%.
During 2011,
Department of Telecommunication also initiated the process of public
consultation on draft telecom policy (NTP 2012). Subject actively participated
in the process and submitted its views and recommendations to DoT on various
aspects of the policy. The objective of the proposed NTP 2012 is to ensure that
India plays the leadership role in the field of telecommunication and
transforms the socioeconomic scenario through accelerated equitable and
inclusive economic growth by providing affordable and quality telecommunication
services in rural and remote areas. One of the key recommendation of draft NTP
is to provide affordable and reliable broadband-on-demand services by the year
2015 and to achieve 175 million broadband connections by the year 2017 and 600
million by the year 2020 at minimum 2 Mbps download speed and making available
higher speeds of at least 100 Mbps on demand.
The policy also
recommends promoting indigenous R and D, IPR creation, and manufacturing of
state-of-the-art telecom products and services to meet the Indian telecom
sector demand to the extent of 60% and 80% with a minimum value addition of 45%
and 65% by the year 2017 and 2020 respectively. In a major shift from the
present licensing regime, the policy recommends to strive to create One Nation
- One License across various services and service areas. In addition, NTP
strives to achieve for One Nation - Full Mobile Number Portability and work
towards One Nation - Free Roaming.
RAILTEL - AN OVERVIEW:
Subject
Corporation is one of the largest neutral telecom infrastructure providers in
the country owning a Pan-India optic fiber network on exclusive Right of Way
(ROW) along Railway track. The OFC network presently reaches to over 4000 towns
and cities of the country including several rural areas. Subject with strong
nationwide presence is committed to bring cutting edge technology and offer
innovative services to the Indian Telecom market. With its Pan India high
capacity network, Subject is working towards creating a knowledge society at
various fronts.
Equipped with an
ISO 9001:2010 certification, Subject offers a wide gamut of managed telecom
services to Indian Telecom market. The service includes Managed lease lines,
Tower colocation, MPLS based IP-VPN, Internet and NGN based voice carriage
services to Telecom Operators, Internet Service Providers, MSOs, Enterprises,
Banks, Govt. Institutions/dept., Educational Institutions/Universities, etc.
Over a decade ago,
Subject embarked on a challenging journey to create nationwide telecom
infrastructure in the country by harnessing the exclusive Right of Way along
the Railway track. Today the dedication shown by all present and past
individuals associated with the organisation have been recognized with
conferring of the "Mini Ratna (Category-I)" status from the Ministry.
In addition to this, as per the latest report issued by ACTO (Association of
Competitive Telecom Operators) the company has now become second leading NLD
player in the enterprise segment with a market share of 13% in the category.
AWARDS:
During the year,
Subject bagged the National Telecom Award 2012 organised by CMAI for category
of "Excellence in Innovation with Rural Telecom Focus". The award was
received by Sh. Rajiv Sinha, Director/POM in an award ceremony held on 8th May
2012 held at Siri Fort Auditorium. The award received in total 541 nominations
over several categories and witnessed participation from the leaders of Global
Telecom industry, Senior Government officials and Heads of Indian Telecom
Industry.
OUTLOOK:
Despite
experiencing several hitches in the industry, the outlook seems to be positive
in the light of robust customer growth in retail as well as enterprise segment
as well as introduction of new NTP-12. In addition, Govt. spending in creation
of various telecom based ICT projects incl. NOFN, USOF, CCTNS, E-toll, DCN, etc
will also add to the optimism in the industry. Subject will greatly benefit
specially in the various areas of Govt. projects. In addition, opportunities
are also being explored in the creation of network for implementation of modern
signaling technology in Indian Railways. Further introduction of new services
in the areas of consultancy, data center, TP, CDN shall also open new
opportunities for revenue earning.
FIXED ASSETS:
·
Land Free Hold Building
·
Leasehold Land and
Building
·
Plant and Equipments
·
Computers
·
OFC and Related Assets
·
Telecom and Radio
Equipments
·
Prefab Building
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.61.94 |
|
|
1 |
Rs.100.44 |
|
Euro |
1 |
Rs.84.23 |
INFORMATION DETAILS
|
Report Prepared
by : |
TPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
61 |
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.