MIRA INFORM REPORT
|
Report Date : |
06.09.2013 |
IDENTIFICATION DETAILS
|
Name : |
S MOBILITY LIMITED (w.e.f. 07.06.2011) |
|
|
|
|
Formerly Known
As : |
SPICE MOBILITY LIMITED (w.e.f. 07.06.2010) SPICE MOBILES LIMITED (w.e.f 26.04.2007) SPICE LIMITED (w.e.f 04.07.2005) SPICE NET LIMITED (w.e.f 05.12.2000) MOL INDIA LIMITED (w.e.f 23.08.1999) MODI OLIVETTI
LIMITED |
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Registered
Office : |
S Global Knowledge Park, 19 A and 19 B, Sector 125, Noida – 201301,
Uttar Pradesh |
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|
Country : |
India |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
23.12.1986 |
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Com. Reg. No.: |
20-008448 |
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Capital
Investment / Paid-up Capital : |
Rs. 714.258 Millions |
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CIN No.: [Company Identification
No.] |
L72900UP1986PLC008448 |
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Legal Form : |
A Public Limited Liability company. The company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
The company is engaged in the Telecommunications-Mobile
business and Information Technology business. |
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|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (49) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 24000000 |
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|
Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having a satisfactory track record. There
appears some loss recorded by the company during 2012. However, general financial position seems to be strong. There appears
no external borrowings. Trade relations are reported to be fair. Business is active. Payments
are reported to be usually correct and as per commitment. The company can be considered for 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 – 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 |
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High |
B2 |
|
Very High |
C1 |
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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.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Fundamental grade: 2/5 |
|
Rating Explanation |
The fundamentals indicate that its has
moderate degree of safety. |
|
Date |
September 2012. |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office/ Head Office : |
S Global Knowledge Park, 19 A and 19 B, Sector 125, Noida – 201301,
Uttar Pradesh, India |
|
Tel. No.: |
91-120-3355131 |
|
Fax No.: |
Not Available |
|
E-Mail : |
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|
Website : |
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Factory : |
Village Billanwalli, Baddi P.O., Nalagarh, District Solan, Himachal Pradesh-173205, India |
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|
Head Office: |
D-1, Sector -3, Noida – 201301, Uttar Pradesh, India |
DIRECTORS
As on: 30.06.2012
|
Name : |
Dr. Bhupendra Kumar Modi |
|
Designation : |
Chairman |
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|
|
|
Name : |
Mr. Dilip Modi |
|
Designation : |
Director |
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|
Name : |
Mr. Kashi Nath Memani |
|
Designation : |
Director |
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|
Name : |
Ms. Preeti Malhotra |
|
Designation : |
Director |
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|
Name : |
Mr. Saurabh Srivastava |
|
Designation : |
Director |
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|
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|
Name : |
Mr. Subroto Chattopadhyay |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Meghraj Bothra |
|
Designation : |
Company Secretary |
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|
Audit Committee |
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|
Name : |
Mr. Kashi Nath Memani |
|
Designation : |
Chairman |
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|
Name : |
Mr. Dilip Modi |
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|
Name : |
Mr. Subroto Chattopadhyay |
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Remuneration
Committee |
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|
|
|
Name : |
Dr. Bhupendra Kumar Modi |
|
Designation : |
Chairman |
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|
|
|
Name : |
Mr. Kashi Nath Memani |
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|
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|
Name : |
Mr. Saurabh Srivastava |
|
|
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|
Name : |
Mr. Subroto Chattopadhyay |
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|
Shareholders Value
Enhancement and Investors Grievance Committee |
|
|
|
|
Name : |
Dr. Bhupendra Kumar Modi |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Ms. Preeti Malhotra |
|
|
|
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|
Chief Executive Officer
and Manager |
|
|
|
|
Name : |
Mr. R. S. Desikan |
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|
Chief Financial
Officer |
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|
|
|
Name : |
Mr. Subramanian Murali |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 30.06.2013
|
Category of
Shareholder |
No. of Shares |
Percentage of
Holding |
|
|
|
|
|
(A) Shareholding of
Promoter and Promoter Group |
|
|
|
|
|
|
|
|
169447570 |
71.17 |
|
|
169447570 |
71.17 |
|
|
|
|
|
Total shareholding
of Promoter and Promoter Group (A) |
169447570 |
71.17 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
545 |
0.00 |
|
|
11603264 |
4.87 |
|
|
11603809 |
4.87 |
|
|
|
|
|
|
3329314 |
1.40 |
|
|
|
|
|
|
4523571 |
1.90 |
|
|
1826981 |
0.77 |
|
|
47355040 |
19.89 |
|
|
81668 |
0.03 |
|
|
70405 |
0.03 |
|
|
47202967 |
19.83 |
|
|
57034906 |
23.96 |
|
Total Public
shareholding (B) |
68638715 |
28.83 |
|
Total (A)+(B) |
238086285 |
100.00 |
|
(C) Shares held by Custodians
and against which Depository Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
238086285 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
The company is engaged in the Telecommunications-Mobile
business and Information Technology business. |
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
|
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|
|
Bankers : |
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|
|
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Banking
Relations : |
-- |
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Auditors : |
|
|
Name : |
S.R. Batliboi and Company Chartered Accountants |
|
Address : |
Golf View Corporate Towers – B, Sector - 42, Sector Road, Gurgaon – 122 002, Haryana, India |
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|
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|
Internal Auditors : |
Bansal Dalmia and Company Chartered Accountants |
|
Address : |
210, Gupta Tower, Commercial Complex, Azadpur, Delhi – 110033, India |
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|
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Holding Company : |
pursuant to Scheme of Amalgamation) till January 30, 2012) |
|
|
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|
Ultimate Holding
Company : |
(w.e.f. January 31, 2012) |
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|
|
|
Fellow
Subsidiaries: |
(w.e.f. December 20, 2010)
|
|
|
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|
Enterprises over
which individuals having significant influence over the Company is
able to exercise significant influence: |
(Formerly known as Spice i2i and before that Media Ring)
|
* S i2i Mobility Private Limited was the fellow subsidiary of the Group for the period January 12, 2012 to January 30,2012.
CAPITAL STRUCTURE
As on: 30.06.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
330000000 |
Equity Shares |
Rs.3/- each |
Rs.990.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
238086285 |
Equity Shares |
Rs.3/- each |
Rs.714.258
Millions |
|
|
|
|
|
Reconciliation of the
shares outstanding at the beginning and at the end of the reporting period
Equity shares
|
Particulars |
As on 30.06.2012 |
|
|
|
Numbers |
Rs. In Millions |
|
At the beginning of the period |
238,086,285 |
714.258 |
|
Issued during the period |
-- |
-- |
|
Outstanding at the end of the period |
238,086,285 |
714.258 |
Terms/ rights
attached to equity shares
The Company has only one class of equity shares having par value of Rs. 3 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
During the period ended 30 June 2012, the amount of dividend per share recognized as distributions to equity shareholders is Rs. 1.50 (31 March 2011: Rs. 1.50).
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
Shares held by
holding company
Out of equity shares issued by the Company, shares held by its holding company are as below:
(Rs. In Millions)
|
Particulars |
As on 30.06.2012 |
|
Holding Company |
|
|
S i2i Mobility Private Limited |
|
|
169,365,976 (31 March 2011: Nil) equity shares of Rs. 3 each fully paid |
508.098 |
|
Spice Global Investments Private Limited |
|
|
Nil (31 March 2011: 163,448,285) equity shares of Rs. 3 each fully paid |
-- |
Aggregate number of
shares issued for consideration other than cash during the period of five years
immediately preceding the reporting date:
|
Particulars |
As on 30.06.2012 |
|
Equity shares allotted as fully paid-up pursuant to the Scheme of amalgamation for consideration other than cash |
163448285 |
Details of shareholders
holding more than 5% shares in the Company
|
Particulars |
As on 30.06.2012 |
|
|
Numbers |
% holding in the class |
|
|
Equity shares of Rs. 3 each fully paid |
|
|
|
S i2i Mobility Private Limited, the holding company |
169365976 |
71.14% |
|
Spice Global Investments Private Limited, the ultimate holding company (Esrtwhile holding company) |
|
|
|
Independent Non Promoter Trust |
35301215 |
14.83% |
As per of the Company, including its register of shareholders/ members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
30.06.2012 (15 months) |
31.03.2011 |
|
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
714.258 |
714.258 |
|
(b) Reserves & Surplus |
|
5322.344 |
6088.268 |
|
(c) Money received against share warrants |
|
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
|
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
|
6036.602 |
6802.526 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
|
0.000 |
0.000 |
|
(b) Deferred tax liabilities (Net) |
|
0.000 |
0.000 |
|
(c) Other long term liabilities |
|
18.685 |
12.490 |
|
(d) long-term provisions |
|
22.225 |
46.029 |
|
Total Non-current
Liabilities (3) |
|
40.910 |
58.519 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
|
0.000 |
0.000 |
|
(b) Trade payables |
|
1422.049 |
1500.764 |
|
(c) Other current liabilities |
|
123.173 |
125.940 |
|
(d) Short-term provisions |
|
462.151 |
557.907 |
|
Total Current
Liabilities (4) |
|
2007.373 |
2184.611 |
|
|
|
|
|
|
TOTAL |
|
8084.885 |
9045.656 |
|
|
|
|
|
|
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
|
987.915 |
96.976 |
|
(ii) Intangible Assets |
|
20.796 |
17.789 |
|
(iii) Capital work-in-progress |
|
73.232 |
385.173 |
|
(iv) Intangible assets under development |
|
1.588 |
0.000 |
|
(b) Non-current Investments |
|
1808.906 |
1711.439 |
|
(c) Deferred tax assets (net) |
|
0.000 |
6.846 |
|
(d) Long-term Loan and Advances |
|
26.418 |
20.577 |
|
(e) Amount recoverable from employee benefit trust |
|
126.052 |
126.052 |
|
(f) Other Non-current assets |
|
3.415 |
27.141 |
|
Total Non-Current
Assets |
|
3048.322 |
2391.993 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
|
441.707 |
980.703 |
|
(b) Inventories |
|
436.024 |
520.943 |
|
(c) Trade receivables |
|
939.545 |
1306.857 |
|
(d) Cash and cash equivalents |
|
407.799 |
1094.059 |
|
(e) Short-term loans and advances |
|
2779.696 |
2702.073 |
|
(f) Other current assets |
|
31.792 |
49.028 |
|
Total Current Assets |
|
5036.563 |
6653.663 |
|
|
|
|
|
|
TOTAL |
|
8084.885 |
9045.656 |
|
SOURCES OF FUNDS |
|
|
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
|
223.914 |
|
|
2] Share Application Money |
|
|
0.000 |
|
|
3] Reserves & Surplus |
|
|
1117.156 |
|
|
4] (Accumulated Losses) |
|
|
0.000 |
|
|
NETWORTH |
|
|
1341.070 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
|
0.000 |
|
|
2] Unsecured Loans |
|
|
0.000 |
|
|
TOTAL BORROWING |
|
|
0.000 |
|
|
DEFERRED TAX LIABILITIES |
|
|
0.585 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
1341.655 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
|
62.867 |
|
|
Capital work-in-progress |
|
|
0.000 |
|
|
|
|
|
|
|
|
INTANGIBLES |
|
|
18.118 |
|
|
INVESTMENT |
|
|
220.823 |
|
|
DEFERREX TAX ASSETS |
|
|
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
1196.693 |
|
|
Sundry Debtors |
|
|
1042.076 |
|
|
Cash & Bank Balances |
|
|
1239.167 |
|
|
Other Current Assets |
|
|
45.225 |
|
|
Loans & Advances |
|
|
336.200 |
|
Total
Current Assets |
|
|
3859.361 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
|
8.340 |
|
|
Other Current Liabilities |
|
|
2475.618 |
|
|
Provisions |
|
|
335.556 |
|
Total
Current Liabilities |
|
|
2819.514 |
|
|
Net Current Assets |
|
|
1039.847 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
1341.655 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
30.06.2012 (15 months) |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations |
10082.612 |
9447.929 |
10397.796 |
|
|
|
Other Income |
153.395 |
260.471 |
85.134 |
|
|
|
TOTAL (A) |
10236.007 |
9708.400 |
10482.930 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of raw materials and components consumed |
1634.713 |
|
|
|
|
|
Purchase of traded goods |
6648.364 |
6161.030 |
|
|
|
|
(Increase)/ decrease in inventories of finished goods, work-in-progress and traded goods |
(19.662) |
779.308 |
|
|
|
|
Employee benefit expense |
499.621 |
282.187 |
|
|
|
|
Other expenses |
1825.693 |
1263.928 |
|
|
|
|
Exceptional items |
23.514 |
(94.898) |
|
|
|
|
TOTAL (B) |
10612.243 |
8750.333 |
9389.443 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(376.236) |
958.067 |
1093.487 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
2.422 |
6.763 |
10.736 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(378.658) |
951.304 |
1082.751 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
88.439 |
16.743 |
10.757 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
(467.097) |
934.561 |
1071.994 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
6.846 |
153.307 |
366.912 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
(473.943) |
781.254 |
705.082 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1753.464 |
673.612 |
170.022 |
|
|
|
Balance brought forward of erstwhile Spice Televentures Private Limited pursuant to Scheme of Amalgamation |
0.000 |
800.635 |
0.000 |
|
|
|
after tax for the period Jan 1 ‘2010 to March 31, 2010 of erstwhile Spice Televentures Private Limited pursuant to Scheme of Amalgamation |
0.000 |
(80.092) |
0.000 |
|
|
|
Reversal of Dividend pursuant to Scheme of Amalgamation |
0.000 |
70.813 |
0.000 |
|
|
|
Reversal of proposed dividend on equity shares |
52.952 |
0.000 |
0.000 |
|
|
|
Reversal on tax on proposed dividend reversed |
8.590 |
0.000 |
0.000 |
|
|
|
Profit available
for appropriation |
1341.063 |
2246.222 |
875.104 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
78.125 |
78.125 |
70.508 |
|
|
|
Dividend |
304.178 |
357.130 |
111.957 |
|
|
|
Tax on Dividend |
49.345 |
57.503 |
19.027 |
|
|
BALANCE CARRIED
TO THE B/S |
909.415 |
1753.464 |
673.612 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of Export |
91.793 |
54.689 |
46.542 |
|
|
|
Discount/incentive received on purchases |
0.000 |
179.939 |
0.000 |
|
|
|
Miscellaneous Income |
12.687 |
17.373 |
15.722 |
|
|
TOTAL EARNINGS |
104.480 |
252.001 |
62.264 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1490.317 |
444.433 |
2.524 |
|
|
|
Capital Goods |
0.000 |
13.685 |
4.950 |
|
|
|
Others |
6672.449 |
6261.118 |
8374.594 |
|
|
TOTAL IMPORTS |
8162.766 |
6719.236 |
8382.068 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(1.99) |
3.28 |
9.45 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.09.2012 1st
Quarter |
31.12.2012 2nd
Quarter |
31.03.2013 3rd
Quarter |
30.06.2013 4th
Quarter |
|
Audited / Unaudited |
Unaudited |
Unaudited |
Unaudited |
Unaudited |
|
Net Sales |
1965.000 |
1790.000 |
1582.000 |
1793.700 |
|
Total Expenditure |
1892.000 |
1637.000 |
1452.000 |
1671.800 |
|
PBIDT (Excl OI) |
73.000 |
153.000 |
130.000 |
121.900 |
|
Other Income |
32.000 |
212.000 |
33.000 |
31.900 |
|
Operating Profit |
105.000 |
365.000 |
163.000 |
153.800 |
|
Interest |
0.000 |
1.000 |
0.000 |
0.000 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
105.000 |
364.000 |
163.000 |
153.800 |
|
Depreciation |
19.000 |
18.000 |
22.000 |
22.600 |
|
Profit Before Tax |
86.000 |
346.000 |
141.000 |
131.200 |
|
Tax |
0.000 |
0.000 |
0.000 |
78.000 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
86.000 |
346.000 |
141.000 |
53.200 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
86.000 |
346.000 |
141.000 |
53.200 |
KEY RATIOS
|
PARTICULARS |
|
30.06.2012 (15 months) |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
(4.63) |
8.05 |
6.72 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(4.63) |
9.89 |
10.31 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(7.57) |
13.50 |
27.33 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.08) |
0.13 |
0.80 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.00 |
0.00 |
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.51 |
3.05 |
1.37 |
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 |
No |
|
25] |
Conduct of the banking account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
No |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
Profile
|
Client Industry |
Telecomme sector |
|
Client's discipline |
Telecommunications-Mobile business and Information
Technology business. |
General
|
The growth of the client's industry is best described as: |
Growing |
|
Brief description of the services and/or goods the client provides to the marketplace: |
Same as client desciplin |
|
What is the legal structure of the client? |
Subsidiary of a parent co |
|
What type of company is the client? |
private |
Credit Rating
|
Client's debt tracked by a credit rating agency? |
YES |
|
Name of credit rating agency: |
CRISIL |
|
Credit rating class provided by credit rating agency: |
Non Investment grade |
|
Client credit rating: |
Fundamental 2/5 |
|
Report on credit worthiness of client purchased from: |
Not obtained |
Client Financials
|
Does the client have a credit facility? |
Yes |
|
Do you have financial information on this client? |
Yes |
|
Credit facility type: |
Unknown |
|
Amount of credit facility: |
-- |
|
Currency of financial statements/data: |
INR Millions |
|
Annualized revenues: |
Rs.10082.612 Millions |
|
Annualized COGS: |
Rs.1634.713 Millions |
|
Annualized EBITDA: |
Rs.(376.236) Millions |
|
Annualized net income: |
Rs.(473.943) Millions |
|
Cash balance: |
Rs.0.143 Millions |
|
Marketable Securities balance: |
-- |
|
Accounts Receivable balance: |
Rs.939.545 Millions |
|
Current Assets balance: |
Rs. 3048.322 Millions |
|
Total assets balance: |
Rs. 8084.885 Millions |
|
Current Liabilities balance: |
Rs.2007.373 Millions |
|
Long-Term Debt balance: |
-- |
|
Equity balance: |
Rs.6036.602 Millions |
|
Net cash provided by operating activities: |
Rs.(274.929) Millions |
|
Date of client's financial data populated: |
30.06.2012 (15 months) |
|
Financial information provided above audited? |
Yes |
BOARD OF DIRECTORS
DR. BHUPENDRA KUMAR
MODI CHAIRMAN
“Technology Futurepreneur”
Dr. Bhupendra Kumar Modi (“Dr. BKM”) was appointed to the board on 24th April, 2010 as Non-Executive Director and Chairman.
From his early days, when he defied family business norms to introduce Photocopying to India or the first mobile service in the Country, Dr. BKM has always shunned conformity in order to embrace the future.
As a “Futurepreneur” with 30 years of business leadership behind him, Dr. BKM has always lived and worked on the principal philosophy of challenging conventional wisdom. In his words “I want to ensure that people everywhere enjoy the highest levels of personal productivity. And today the mobility of the Internet will drive this more than any other phenomenon.”
Over the last three decades Dr. BKM has consistently demonstrated this intent through a series of very successful alliances with category leaders like Xerox, Alcatel, Telstra, Olivetti and more recently with Telekom Malaysia. He preempted the revolutions in Office Automation, Internet infrastructure, Wireless Telephony and Specialty Retailing.
In keeping with this thinking, Dr. BKM now wants to foster Western levels of personal productivity for the youth in the exciting geography that extends from the Ivory Coast to Indonesia. To this end, he has created a US $ 2 bn organization built on some exciting acquisitions to the Spice Group which include successful entrepreneurial brands that together provide a brilliant orchestra of passionate professionals who will drive leadership in the region.
Dr. BKM is a Chemical Engineer and an MBA from university of South California (U.S.C), and was awarded a Ph D in Financial Management. He has also been conferred a D Litt in Industrial Management.
MR. DILIP MODI
NON-EXECUTIVE DIRECTOR
Mr. Dilip Modi was appointed to the board on 21st August, 2006 as Director and has been the Managing Director of the Company till 8th February, 2012.
Mr. Modi started his professional career in 1996 working closely with McKinsey to help restructure the BK Modi Group businesses. This led to formation of Spice Corp (formerly Mcorp Global) and its vision to grow in the ICE (Internet, Communications and Entertainment) domain. He has since executed instrumental roles, amalgamating the inherited business acumen with contemporary professionalism to build the Group into a vibrant, energetic business entity with a highly skilled team managing the core and strong businesses forming the periphery.
Mr. Modi built Modi Telstra, India’s first cellular service provider, and was later instrumental in divestment of this company through one of the smartest deals. As Chairman-MD of Spice Communications, he developed Spice Telecom into one of the most valuable and enduring brands in Punjab and Karnataka, the two highly profitable mobile markets in India.
Over the past five years, Mr. Modi founded and set up Mobility businesses in the areas of Mobile Devices (S Mobility), Mobile Value Added Services (Spice Digital) and Mobile Retail (Spice Hotspot), which have since emerged as amongst the leading players in their respective domains in the fast growing Indian mobility landscape.
Currently Mr. Modi is working towards building a leading Mobile Internet and Digital Lifestyle company across i2i (Ivory Coast to Indonesia) with the objective of building solutions that reduces the digital divide across emerging markets of Asia and Africa.
Mr. Modi was the youngest President of ASSOCHAM (Associated Chamber of Commerce), a leading industry chamber and was also the youngest Chairman of the Cellular Operators Association of India (COAI). Awarded Youth Icon Award by the Gujarat Chamber of Commerce. Mr. Modi holds a BSc from Brunel University and MBA from Imperial College London.
MR. KASHI NATH MEMANI
INDEPENDENT DIRECTOR
Mr. Memani was appointed to the Board w.e.f. 24th April 2010 as Independent Director. Mr. Memani is former Chairman and Country Managing Partner of Ernst and Young, India from where he retired on 31st March 2004.
Mr. Memani specializes in Business and Corporate Advisory, Financial Consultancy etc. and is consulted on the corporate matters by several domestic and foreign companies. He has helped several multi-national companies in setting up businesses in India.
Mr. Memani is member of the boards of various listed Companies besides being a member of governing bodies of some business schools, social, educational and charitable organizations and Foundations.
He is actively associated with various Chambers of Commerce. Currently, he is member of the Managing Committees of Federation of Indian Chambers of Commerce and Industry, Indo American Chamber of Commerce, PHD Chamber of Commerce etc. Mr. Memani has been the Past President of American Chamber of Commerce, Indo American Chamber of Commerce, PHD Chamber of Commerce and Industry, etc. He was member of External Audit Committee of International Monetary Fund (IMF), Washington in the year 1999 and its Chairman in the year 2000, the only Indian so far to sit on this committee.
Mr. Memani holds Bachelor’s Degree in Commerce from Calcutta University and is fellow member of the Institute of Chartered Accountants of India (“ICAI”).
MS. PREETI MALHOTRA
EXECUTIVE DIRECTOR
Ms. Preeti Malhotra was appointed to the Board on 24th April 2010 as Executive Director.
She is also Non- Executive Director of S i2i Limited, a Company listed on Singapore Stock Exchange. Ms. Malhotra is responsible for instituting good Corporate Governance in Spice Group entities and during her tenure with the Group she has handled a number of re-structuring transactions including IPO’s, takeovers, Mergers and other JV initiatives of the Group.
Ms. Malhotra is the past President of the Institute of Company Secretaries of India (ICSI) and was the first and still the only woman to be elected as President amongst the premier National Professional Bodies in India.
Ms. Malhotra was a member of the Dr. J J Irani Expert Committee constituted by the Ministry of Corporate Affairs (MCA), Government of India, to advise the Government on the New Company Law being framed.
She specifically drove the discussions on Management, Board Governance and Shareholders democracy. She is a member on various expert panels in corporate laws, Governance and regualtion and regularly interacts with the Government on new laws being framed. She is/has been Chairperson/Member of various Committees of ICSI and of various Chambers of Industries in India and is presently also the Chairperson of the National Council of Corporate Governance, CSR and Corporate Affairs of ASSOCHAM.
Ms. Malhotra has received several awards and citations and was awarded the Bharat Nirman Talented Ladies Award in the field of profession in the year 2003 and the prestigious Vocational Service excellence Award by Rotary Club of New Delhi in the year 2009. She also received on behalf of ICSI as its Past President “Recognition of Excellence Award” from Her Excellency Smt. Pratibha Devisingh Patil (Hon’ble President of India) during the Celebration of India Corporate Week 2009 by Ministry of Corporate Affairs.
Ms. Malhotra is a Fellow Member of the Institute of Company Secretaries of India. She is a Commerce (Hons) Graduate and a Law Graduate from Delhi University.
MR. SAURABH
SRIVASTAVA INDEPENDENT DIRECTOR
Mr. Saurabh Srivastava was appointed to the Board on 30th May, 2011 as Independent Director.
Mr. Srivastava is one of India’s leading IT entrepreneurs, angel investors and venture capitalists. He founded and chaired IIS InfoTech which was ranked amongst the top 20 Indian software companies within 4 years of inception and was the first Indian IT company to get international quality certification. He has since founded/ invested in over 50 start up ventures.
He is a cofounder and past Chairman of NASSCOM, the Indian Software Industry Association as also NASSCOM Foundation, the IT industry’s community service arm. He serves/has served on the National Executive Committee of the two apex industry chambers in India, CII and FICCI. He serves on various Boards and Chairs the Board in India of CA Technologies Inc, a $4.5 Bill US software MNC, is on the board of X changing plc, a $1 Bill UK IT major listed on LSE and on the Board of Info Edge (India) Limited, listed on BSE and NSE.
He serves / has served on several government committees / task forces / boards such as the Indo EU Round Table, PM’s National Innovation Council, IT Ministry’s Committee on software exports, Planning Commission and SEBI Committees on Venture Capital, National and State VC Funds, Media Lab Asia, Railway Expert Committee, CSIR Tech Limited. (set up by the Council for Scientific and Industrial Research to commercialise its technologies), Government’s Multimodal Transport Task Force and Task Forces for two of India’s largest states, UP and Bihar.
He serves/has served on the Advisory Board of Imperial College Business School, London, on the Entrepreneurship / Incubation boards of IIT Delhi and IIT Kanpur and on the Advisory boards of Uttarakhand and Himachal Universities. He has a Masters from Harvard University and a B Tech from the Indian Institute of Technology (IIT) Kanpur. Awards include “Distinguished Alumnus” from IITK, Honorary Doctorate in Technology from the University of Wolverhampton, UK and Lifetime Achievement award from the IT Industry in India.
MR. SUBROTO
CHATTOPADHYAY INDEPENDENT DIRECTOR
Mr. Chattopadhyay was appointed to the Board w.e.f. 24th April 2010 as Independent Director.
He is Chairman of The Peninsula Foundation, which incubates consumer goods, entertainment and knowledge and insights businesses. As an Independent Director, he is the Chairman of S Mobile Devices Limited, Wall Street Finance Limited and Plus Paper Foodpac Limited.
Mr. Chattopadhyay’s executive career has been with Brooke Bond (now Unilever), ITC Limited. (associate of British American Tobacco) and PepsiCo South Asia where he was an Executive Director. He was Member, Management Board, RPG Enterprises.
He is the former Chairman of Audit Bureau of Circulation and Indian Music Industry. He is an active member of Indian Polo Association. Mr. Chattopadhyay has produced films like Japanese Wife and Khela and music albums with Ustad Amjad Ali Khan.
Mr. Chattopadhyay holds a Hons Degree in Economics, with Mathematics and Statistics from the University of Calcutta and has done a course in finance for senior management in BAT.
FINANCIAL RESULTS
During the year, the Company achieved a revenue of Rs. 10,236 million for the 15 months period ended June 2012 as against Rs.9,708 million for the 12 months period ended March 2011. The Company has incurred a loss of approx Rs. 474 million during the financial year ended on 30th June, 2012 as against the profit of Rs. 781 million in previous year.
With a view to switch as a leader in mobile internet space and to grab the opportunity in mobile handset market particularly to tap the new developments expected in mobile handset industry including 3G introduction, the Company made major investments in people and marketing resulting in higher Manpower and Administrative cost. During the year, the depreciation of Rupee against Dollar by more than 20% resulted in erosion of margins of the Company. Some high end models introduced by the Company also did not do well resulting in liquidation of stock at a reduced margin leading to losses during the year.
The Company is taking a number of steps to improve its market position especially by constantly undertaking innovations towards enriching its product portfolio and rationalization of costs through reduction in manpower and other administrative cost and it is confident that these will yield positive results in the current fiscal.
MANAGEMENT DISCUSSION
AND ANALYSIS REPORT
INDUSTRY SCENARIO AND
OPPORTUNITIES
The Company operates in one of the world’s fastest growing industries Indian wireless telecommunication industry, which has over 677 million mobile phone subscribers as on June 2012. India is witnessing a growth of 4.6 million subscribers per month based on the data for the quarter ending June, 2012. The total number of mobile phone sold in a month is more than 16 million handsets. It is projected that India will have more than 1.2 billion mobile subscribers by 2013 exceeding the total subscriber count in China. The Company operates in two segments:
(a) Mobile Devices
(b) Mobile Value Added Services
PRODUCT PERFORMANCE
S Mobility is predominantly focused on feature phones which were well received by the users, industry and research organizations. S Mobility in the past is credited with many first by launching numerous innovative products ranging from Dual SIM phones – across GSM, CDMA, Triband / Touch Screen PDA and smart devices on Android platform, etc. The Company has got very good reviews on its Android phone range like Stellar, MI-350n etc from top tech media houses. The company has been successful in launching series of Touch Phones with Analog TV which has been very well accepted by the consumer. Mobile phone market is broadly classified into feature phones and smart phones. Feature phone markets are divided between large MNC players and Indian marketing companies. But Smart phone markets are highly concentrated in MNC players with negligible share for others like Spice. In spite of such challenges, they did attempt to break into Smart phone segment, investing heavily but they have not had significant success so far.
On the retail front the company’s product launch include all recent and successful launch of multi branded phones like Nokia, Samsung, Blackberry, HTC, etc. The Company also opened 16 outlets with new format which are termed as “Version 2” stores offering rich experience for the consumers in terms of product display, attractive pricing and demo experience.
On the VAS front the Company launched various new services during the year. The company’s main product category mobile radio has been appreciated over the last 5 years in India and has Eight million subscribers generating 60 million minutes of usage. It also offers around 250,000 songs across multiple languages and multiple operators. New services like Live Aarti, live FM, 139, Music Mania, youtube channel called SPICE, constituted 27% of Domestic Revenue from new products.
BUSINESS REVIEW AND
OUTLOOK
At the consolidated level the company achieved a revenue of Rs. 27422 million for the 15 months ended June 2012 as against Rs.20165 million for the 12 months period ended March 2011. The loss after tax for the 15 months period is Rs 50 Million as against profit for the 12 months of Rs.1118 million. The reason for significant drop in margins are as follows:
(a) Significant margin erosion in device business due to rupee depreciation over 20% during the last financial year
(b) Certain product failure at the high end of their range resulting in liquidation of stock
(c) Reduction in revenue share and margin on the VAS segment due to market situation
BUSINESS OUTLOOK
The Company will continue to focus on feature phones market for the own branded (Spice branded) devices. The Company has put in place various measures to overcome the difficult situation during the last financial year. The following are some of the strategies that will enable then to strengthen the company’s competitive position and presence:-
PRODUCT
Focus would be to launch new innovative feature phones at competitive prices in India;
On the Smart phone the company would aim to work with multi national brand and bring products in their brand or joint brand leveraging on the product and technology experience of the multi national brands.
The Company is working to consolidate the supply chain and work with fewer vendors who offer state of the art innovative products at competitive prices
The Company is also looking to reduce the number of SKUs to ensure better inventory planning and logistics.
On the retail side the company would continue to focus on latest launched products from multi national brands and making it available at company network of stores including the Version 2 stores for better customer experience.
On the VAS front the Company would continue to focus on 2G services and also come out with 3G VAS offerings through operators and also directly to the consumers through the retail presence
FINANCIAL PERFORMANCE
Financial performance has been provided separately in the Director’s Report.
The Company has a Financial Management Information System in place based on an advanced implementation of the SAP, which involves preparation of a detailed Annual Business Plan for current year for each of the business segments. This plan is formulated after detailed discussions at various levels and includes investments and capital expenditure plan. The Board and Management of the Company and its subsidiaries regularly review the performance of the Company against the budgeted figures in the Plan.
AUDITED STANDALONE RESULTS FOR THE YEAR ENDED JUNE 30.2013
(Rs. In Millions)
|
SI. No. |
Particulars |
30.06.2013 |
31.03.2013 |
30.06.2012 |
30.06.2013 |
30.6.2012 |
|
|
|
(Audited) |
(Unaudited) |
(Unaudited) |
(Audited) |
(Audited) |
|
1 |
a. Net Sales/Income from operation |
1761.900 |
1581.200 |
1590.600 |
7097.900 |
10082.600 |
|
|
b. Other Operating Income |
31.800 |
0.500 |
0.500 |
32.500 |
3.500 |
|
|
Total |
1793.700 |
1581.700 |
1591.100 |
7130.400 |
10066.100 |
|
|
|
|
|
|
|
|
|
2 |
Expenditure: |
|
|
|
|
|
|
|
a. Decrease^ Increase) in stock in trade |
(158.800) |
(52.000) |
(114.700) |
(60.800) |
(19.700) |
|
|
b. Purchase of Finished/Traded Goods |
1499.700 |
1207.800 |
1059.200 |
5434.000 |
6648.400 |
|
|
c. Consumption of Raw Materials |
-- |
-- |
347.700 |
0.200 |
1634.700 |
|
|
d. Staff Cost |
69.200 |
55.800 |
64.600 |
249.100 |
499.600 |
|
|
a. Depreciation/Amortization |
22.600 |
22.200 |
18.400 |
81.700 |
88.400 |
|
|
f. Branding Expenses |
115.400 |
71.800 |
148.000 |
336.000 |
839.000 |
|
|
g. Other expenditure |
146.300 |
168.000 |
206.200 |
693.800 |
987.400 |
|
|
Total expenditure |
1694.400 |
1473.600 |
1729.400 |
6734.000 |
10677.800 |
|
3 |
Profit/)Loss) from
Operations before other income, Interest, exceptional item and taxes (1-21 |
99.300 |
108.10 |
(138.300) |
396.400 |
(591.700) |
|
4 |
Other Income |
31.900 |
33.200 |
25.900 |
308.700 |
149.900 |
|
5 |
Profit/Loss) before
interest, exceptional item and taxes (3+4) |
131.200 |
141.300 |
(112.400) |
705.100 |
(441.800) |
|
6 |
Interest |
(0.000) |
0.500 |
(5) |
1.400 |
1.9 |
|
7 |
Profit/1 Loss)
before exceptional items and taxes (5-6) |
131.200 |
140.800 |
(111.900) |
703.700 |
(443.700) |
|
8 |
Exceptional Items |
|
|
|
|
|
|
|
- Provision for diminution in the value of long term investments |
|
- |
(23.400) |
|
(23.400) |
|
9 |
Profit/Loss) from
ordinary activities before taxes (7+8) |
131.200 |
140.800 |
(135.300) |
703.700 |
(467.100) |
|
10 |
Provision for Taxation |
78.000 |
- |
|
78.000 |
6.800 |
|
11 |
Net Profit/Loss)
for the period (9-10) |
53.200 |
140.800 |
(135.300) |
625.700 |
(473.900) |
|
12 |
Paid up Equity Share Capital (Face value of Rs.3/- each) |
714.300 |
714.300 |
714.300 |
714.300 |
714.300 |
|
13 |
Reserves excluding revaluation reserves |
- |
- |
- |
5625.600 |
5322.300 |
|
14 |
Basic and Diluted Earning Per Share [in Rs.) (Not Annualized) |
0.22 |
0.59 |
(0.57) |
2.63 |
(1.99) |
|
|
|
|
|
|
|
|
|
A. |
PARTICULARS OF
SHAREHOLDING |
|
|
|
|
|
|
1 |
Public Shareholding |
|
|
|
|
|
|
|
- No. of Shares |
68,638,715 |
68,638.715 |
68,720,309 |
68.638.715 |
68.720,309 |
|
|
- Percentage of Shareholding |
28.83% |
28.83% |
28.86% |
28.83% |
28.86% |
|
2 |
Promoters and promoter a group shareholding |
|
|
|
|
|
|
|
a) Pledged / Encumbered |
|
|
|
|
|
|
|
- Number of shares |
|
|
|
|
|
|
|
- Percentage of shares (as a % of the total shareholding of promoters and promoter group) |
|
|
|
|
|
|
|
- Percentage of shares (as a % of the total share capital the Company) |
|
|
|
|
|
|
|
Non-encumbered |
|
|
|
|
|
|
|
- Number of shares |
169,447,570 |
169,447,570 |
169,365,976 |
169,447,570 |
169,365,976 |
|
|
- Percentage of shares (as a % of the total shareholding of promoters and promoter group) |
100% |
100% |
100% |
100% |
100% |
|
|
- Percentage of shares (as a % of the total share capital of the Company) |
71.17% |
71.17% |
71.14% |
71 17% |
71.14% |
|
B. |
INVESTOR COMPLAINTS |
|
|
|
Pending at the beginning of the quarter |
Nil |
|
|
Received during the quarter |
6 |
|
|
Disposed off during the quarter |
6 |
|
|
Remaining unresolved at the end of Ihe Quarter |
Nil |
The above results were reviewed by the Audit Committee and were approved and taken on record by the Board of Directors in their respective meetings held on 26th August, 20I3.
In pursuance to the approval obtained from the members of the Company by way of Postal Ballot, the Board of Directors of the Company in its meeting held on 28th June, 20] 3 has decided to sell/ transfer the Mobile Handset business of the Company to Spice Retail Limited (SRL), a Wholly Owned Subsidiary of the Company, as a going concern w.e.f 1st July, 2013 by way of slump sale and accordingly the Company has entered into a Business Transfer Agreement with SRL. Following table shows revenue and profit/loss) after tax from the discontinuing business.
The Board in its meeting held on June 28, 2013 decided to close down both the Manufacturing Units of the Company (i e Unit 1 & Unit 11) at Baddi (Himachal Pradesh), which were predominantly for manufacturing feature phone handsets, with immediate effect.
The Board of Directors has recommended a dividend of 50% (Rs 1.50/- on equity shares of the face value of Rs 3/- each] on the paid-up Capital of the Company for the financial year 201213, subject to the approval by the members of the Company. Independent Non Promoter Trust which holds 35,301,215 equity shares of the Company has waived off its right to receive dividend on 34,100,000 equity shares held by them. Accordingly, no dividend has been provided on these shares in the current period.
The Board of Directors of the Company in its meeting held on 19th June, 2013 approved the Buy-Back of the Company's fully paid-up Equity Shares of Rs. V- each from the open market through Stock exchange mechanism. Subsequent to year end, the Buy-Back has commenced on 10th July, 2013 and till date the Company has bought back 38,17,037 equity shares of the face value of Rs 3/- each and out of them 33.04.416 equity shares have been extinguished till dale and the issued and paid-up capital of the Company has reduced accordingly. For the purpose of providing dividend al the year end, these extinguished shares have not been considered.
Provision for income tax is inclusive of/ net of deferred tax charge/ credit and tax adjustments for earlier years
As the Company's business activities fall within a single primary business segment viz. Telecommunications - Mobile business, the disclosure requirement of Accounting Standard (AS-17) 'Segment reporting' issued by the Institute of Chartered Accountants of India is not applicable.
Previous period's figures have been regrouped and/or recast wherever considered necessary to conform to the current period presentation. The figures for the preceding quarter ended 30th June, 2013 are the balancing figures between the audited figures in respect of the full financial year ended 30th June, 2013 and the published year to date figures upto the third quarter of that financial year.
STATEMENT OF ASSETS AND LIABILITIES
(Rs. In Millions)
|
S No. |
Particulars |
Standalone |
|
|
As on 30.06.2013 |
As on 30.06.2012 |
||
|
(Audited) |
(Audited) |
||
|
A |
EQUITY AND
LIABILITIES |
|
|
|
|
|
|
|
|
1 |
Shareholder's funds |
|
|
|
|
(a) Share Capital |
714.300 |
714.300 |
|
|
(b) Reserves & Surplus |
5625.600 |
5322.300 |
|
|
Total Shareholder's funds |
6339.900 |
6036.600 |
|
|
|
|
|
|
2 |
Non-current
liabilities |
|
|
|
|
(a) Long-term liabilities |
23.800 |
18.700 |
|
|
(b) Long-term provisions |
3.300 |
2.900 |
|
|
Total Non-current
liabilities |
27.100 |
21.600 |
|
|
|
|
|
|
3 |
Current Liabilities |
|
|
|
|
(a) Trade Payables |
1403.300 |
1422.000 |
|
|
(b) Other current liabilities |
213.700 |
123.200 |
|
|
(c) Short term provisions |
518.900 |
481.500 |
|
|
Total Current
liabilities |
2135.900 |
2026.700 |
|
|
|
|
|
|
|
TOTAL- EQUITY AND
LIABILITIES |
8502.900 |
8084.900 |
|
|
|
|
|
|
B |
ASSETS |
|
|
|
|
|
|
|
|
1 |
Non- current assets |
|
|
|
|
(a) Fixed assets(including intangible assets and capital work in progress) |
997.600 |
1083.500 |
|
|
b) Non- current investments |
1840.000 |
1808.900 |
|
|
(c) Deferred tax assets (net) |
- |
- |
|
|
(d) Long-term loans and advances |
15.500 |
26.400 |
|
|
(e) Amount recoverable from Employee Benefit Trust |
126.100 |
126.100 |
|
|
(f) Other non-current assets |
0.900 |
3.400 |
|
|
Total Non-current assets |
2980.100 |
3048.300 |
|
|
|
|
|
|
2 |
Current assets |
|
|
|
|
(a) Current Investments |
100.000 |
441.700 |
|
|
(b) Inventories |
496.700 |
436.000 |
|
|
c) Trade Receivables |
638.900 |
939.500 |
|
|
(d) Cash and bank balances |
1436.700 |
407.800 |
|
|
(e) Short term loans and advances |
2764.300 |
2779.700 |
|
|
(f) Other Current assets |
86.200 |
31.900 |
|
|
Total Current
Assets |
5522.800 |
5036.600 |
|
|
|
|
|
|
|
TOTAL ASSETS |
8502.900 |
8084.900 |
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10227290 |
24/03/2011 * |
1,100,000,000.00 |
HDFC BANK LIMITED |
HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W , MUMBAI, Maharashtra - 400013, INDIA |
B09377409 |
|
2 |
10176086 |
17/07/2013 * |
1,600,000,000.00 |
HDFC BANK LIMITED |
HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W , MUMBAI, Maharashtra - 400013, INDIA |
B81129967 |
|
3 |
90268893 |
11/03/1995 |
60,000,000.00 |
THE BANKOF NOVA SCOTIA |
DR. GOPAL DAS BHAVAN, 28; BRAKHAMBA ROAD, NEW DEL |
- |
|
4 |
90268453 |
08/11/2001 * |
10,000,000.00 |
LIFE INSURANCE CORP. OF INDIA |
Y OGAKSHEMA, JEEVAN BIMA MARG, BOMBAY, Maharashtra - 400021, INDIA |
- |
* Date of charge modification
WEBSITE DETAILS
CRISIL RESEARCH
ASSIGNS FUNDAMENTAL GRADE 2/5 TO S MOBILITY
S Mobility was incorporated in 1986 as Modi Olivetti Limited and was licensed to manufacture minicomputers and microprocessor-based systems in collaboration with Ing. C. Olivetti and C S.p.A. of Italy. The company was a subsidiary of Spice Televentures Limited (STVL) till the reverse merger between the two companies in November 2010. Post the reverse merger, Spice Retail and Spice Digital, which were earlier subsidiaries of STVL, became subsidiaries of S Mobility. The company sells mobile handsets under the Spice brand (37% of FY12 revenues), retails multi-brand mobile handsets (52% of FY12 revenues) and develops mobile VAS (11% of FY12 revenues).
CRISIL Research has assigned a CRISIL IER fundamental grade of 2/5 (pronounced two on five) to S Mobility Ltd (S Mobility). The grade indicates that the company’s fundamentals are ‘moderate’ relative to other listed equity securities in India. CRISIL Research has assigned a valuation grade of 4/5, indicating that market price has ‘upside’ from the current levels. Our one-year fair value of the stock is Rs 50. The stock is currently trading at Rs 43 per share. The grades are not a recommendation to buy, sell or hold the graded instrument, or a comment on the graded instrument’s future market price or its suitability for a particular investor.
The assigned fundamental grade takes into account S Mobility’s presence across the majority of the mobile handset value chain, which places the company in a sweet spot to capture the emerging opportunities in the mobile handset industry. The mobile handset industry is expected to see strong growth driven by an increase in share of smart phones and higher usage of data services though there are short term macroeconomic challenges. In a fiercely competitive retail market, S Mobility has emerged as one of the largest mobile handset retailers and has managed to breakeven at the operating level in FY12. The grade also factors in the company’s strong balance sheet position with almost zero debt and Rs 1.6 bn cash, which allows the company to pursue its growth plans across all segments. Adequate management bandwidth along with their strong domain knowledge supports the grade.
The company faces strong competition from established players in the handset and mobile value-added services (VAS) business. The mobile industry has been impacted by the rupee depreciation as mobile components are imported from Chinese players. This adversely impacted margins in FY12. The grade is constrained by the low profitability - expected to continue over FY13-14 - across its three businesses. The current slowdown in the macroeconomic environment has impacted consumption and is expected to lessen discretionary spending on products such as mobile handsets in the short run. The grade factors in challenges in the handset and VAS businesses due to rapidly changing technology, frequent new product launches, short product life cycles, evolving industry standards and changes in consumer preferences.
Financial outlook: We expect revenues to register a two-year CAGR of 19% to Rs 30.9 bn in FY14 driven by 28% growth in the retail business. EBITDA and PAT margins (currently in the red) are expected to improve with cost rationalisation in the handset business, better operating leverage in the retail segment due to higher smart phone sales, and increased revenue contribution from the VAS business in Africa. We expect a positive PAT margin of 2.1% in FY14.
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 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. 66.04 |
|
|
1 |
Rs. 103.10 |
|
Euro |
1 |
Rs. 86.99 |
INFORMATION DETAILS
|
Report Prepared
by : |
DPH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
|
|
|
|
TOTAL |
|
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 |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.