MIRA INFORM REPORT
|
Report Date : |
17.09.2013 |
IDENTIFICATION DETAILS
|
Name : |
MAHANAGAR TELEPHONE NIGAM LIMITED |
|
|
|
|
Registered
Office : |
Mahanagar Doorsanchar Sadan, 5th Floor, 9 CGO Complex,
Lodhi Road, Delhi-110003 |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
28.02.1986 |
|
|
|
|
Com. Reg. No.: |
55-023501 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 6300.000 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L3210DL1986GOI023501 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
DELM08671F |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACM0828R |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Subject is providing world-class telecom and IT
related services |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
A (63) |
|
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 : |
-- |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Exist |
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|
|
|
Comments : |
Subject is a part of Union Government Company. It is a well established and reputed company having a good track
record. There appear continuous losses recorded by the company. However, the net worth of the company seems to be strong. The company
gets strong financial support from government. Trade relations are reported to be fair. Business is active. Payment
terms are reported to be regular. 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 |
|
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.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
AAA (Non Convertible Debenture) |
|
Rating Explanation |
Having highest degree of safety regarding timely servicing of
financial obligation. It carry lowest credit risk. |
|
Date |
March 2013 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office / Corporate Office : |
Mahanagar Doorsanchar Sadan, 5th Floor, 9 CGO Complex,
Lodhi Road, Delhi-110003, India |
|
Tel. No.: |
91-11-24310212 / 24320051 |
|
Fax No.: |
91-11-24324243 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Head Office : |
15th Floor, Telephone House, MTNL Road, Prabhadevi, Dadar
(West), Mumbai-400 029, Maharashtra, India |
|
Tel. No.: |
91-22-24371900 |
DIRECTORS
AS ON 19.08.2013
|
Name : |
Mr. A K Garg |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Mr. P K Purwar |
|
Designation : |
Director (Finance) |
|
|
|
|
Name : |
Mr. Sunil Kumar |
|
Designation : |
Director (HR) |
|
|
|
|
Name : |
Mr. Sushil Kumar Shingal |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. V Umashankar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Kumar Sanjay Bariar |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. S R Sayal |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.06.2013
|
Category of Shareholder |
No. of Shares |
% of No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
354378740 |
58.88 |
|
|
354378740 |
58.88 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
354378740 |
58.88 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
10244 |
0.00 |
|
|
132699924 |
22.05 |
|
|
10119274 |
1.68 |
|
|
3500 |
0.00 |
|
|
3500 |
0.00 |
|
|
142832942 |
23.73 |
|
|
|
|
|
|
24195284 |
4.02 |
|
|
|
|
|
|
48184259 |
8.01 |
|
|
25789623 |
4.29 |
|
|
6443298 |
1.07 |
|
|
4664915 |
0.78 |
|
|
1778383 |
0.30 |
|
|
104612464 |
17.38 |
|
Total Public shareholding (B) |
247445406 |
41.12 |
|
Total (A)+(B) |
601824146 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
28175854 |
0.00 |
|
|
28175854 |
0.00 |
|
Total (A)+(B)+(C) |
630000000 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is providing
world-class telecom and IT related services |
|
|
|
|
Products : |
|
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
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Facilities : |
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|
|
|
Banking
Relations : |
-- |
|
|
|
|
Statutory Auditors : |
|
|
Name : |
Arun K Agarwal and Associates Chartered Accountant |
|
Address : |
105,South Ex
Plaza -1,389, Masjid Moth South Ex Part - II, New Delhi - 110 049, India |
|
Tel. No.: |
91-11-26256810 / 26257400 |
|
Fax No.: |
91-11-46035037 |
|
|
|
|
Name 1 : |
Bansal Sinha and Company Chartered Accountants |
|
Address : |
18/19, Old Rajinder Nagar, |
|
Tel. No.: |
91-11-25722270/ 25853424 |
|
Fax No.: |
91-11-41046530 |
|
Email: |
|
|
Website: |
|
|
|
|
|
Cost Auditors : |
|
|
Name 1 : |
R M Bansal and Company Cost Accounts |
|
Address : |
74, State Bank Colony, G T Karnal Road, Delhi-110033, India |
|
|
|
|
Holding 56.25% shares of the Company : |
|
|
|
|
|
Wholly owned
Subsidiary : |
|
|
|
|
|
Joint Venture : |
|
CAPITAL STRUCTURE
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
800000000 |
Equity Shares |
Rs.10/- each |
Rs. 8000.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
630000000 |
Equity Shares |
Rs.10/- each |
Rs. 6300.000
Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
6300.000 |
6300.000 |
6300.000 |
|
(b) Reserves & Surplus |
(34144.250) |
19066.970 |
60164.810 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending
allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
(27844.250) |
25366.970 |
66464.810 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
69373.500 |
70000.000 |
25539.700 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long term
liabilities |
31414.930 |
29349.780 |
27420.260 |
|
(d) long-term
provisions |
107728.290 |
82047.800 |
72332.100 |
|
Total Non-current
Liabilities (3) |
208516.720 |
181397.580 |
125292.060 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
46013.370 |
26474.930 |
49017.050 |
|
(b) Trade
payables |
2054.960 |
2559.400 |
2239.750 |
|
(c) Other
current liabilities |
28893.170 |
26191.700 |
26348.150 |
|
(d) Short-term
provisions |
5871.110 |
7080.790 |
5081.310 |
|
Total Current
Liabilities (4) |
82832.610 |
62306.820 |
82686.260 |
|
|
|
|
|
|
TOTAL |
263505.080 |
269071.370 |
274443.130 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
66939.520 |
69176.880 |
68481.570 |
|
(ii)
Intangible Assets |
82052.310 |
88424.870 |
94748.730 |
|
(iii)
Capital work-in-progress |
9322.420 |
8969.940 |
11538.150 |
|
(b) Non-current Investments |
2019.790 |
2219.790 |
4946.580 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
49401.080 |
49366.950 |
48884.960 |
|
(e) Other
Non-current assets |
37036.400 |
31695.370 |
26555.150 |
|
Total Non-Current
Assets |
246771.520 |
249853.800 |
255155.140 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
200.000 |
2700.000 |
0.000 |
|
(b)
Inventories |
819.540 |
1005.620 |
1254.810 |
|
(c) Trade
receivables |
3809.980 |
3288.320 |
3390.570 |
|
(d) Cash
and cash equivalents |
1098.890 |
868.330 |
1401.410 |
|
(e)
Short-term loans and advances |
7597.600 |
5953.700 |
7995.870 |
|
(f) Other
current assets |
3207.550 |
5401.600 |
5245.330 |
|
Total
Current Assets |
16733.560 |
19217.570 |
19287.990 |
|
|
|
|
|
|
TOTAL |
263505.080 |
269071.370 |
274443.130 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Net Revenue From Operations |
34286.630 |
33732.530 |
36739.520 |
|
|
|
Other Income |
2854.200 |
2511.640 |
3180.440 |
|
|
|
TOTAL (A) |
37140.830 |
36244.170 |
39919.960 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Employee Benefits |
49013.650 |
37115.630 |
32473.220 |
|
|
|
Revenue Sharing |
4508.940 |
4539.950 |
4484.090 |
|
|
|
Licence Fees |
2410.790 |
2389.140 |
2875.910 |
|
|
|
Administrative, Operative And Other Expenses |
7652.820 |
8193.350 |
9219.940 |
|
|
|
Prior Period Items |
193.840 |
650.180 |
0.000 |
|
|
|
TOTAL (B) |
63780.040 |
52888.250 |
49053.160 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(26639.210) |
(16644.080) |
(9133.200) |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
11802.600 |
9491.620 |
4514.760 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(38441.810) |
(26135.700) |
(13647.960) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
14769.420 |
14962.150 |
14101.480 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
(53211.230) |
(41097.850) |
(27749.440) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
0.000 |
0.000 |
285.380 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
(53211.230) |
(41097.850) |
(28034.820) |
|
|
|
|
|
|
|
|
|
|
Prior Period Items |
0.000 |
0.000 |
(15.670) |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) FOR THE PERIOD |
(53211.230) |
(41097.850) |
(28019.150) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Roming |
39.500 |
57.900 |
NA |
|
|
TOTAL EARNINGS |
39.500 |
57.900 |
NA |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
(84.46) |
(65.23) |
(44.47) |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2013 |
|
|
1st
Quarter |
|
Net Sales |
8831.600 |
|
Total Expenditure |
15091.200 |
|
PBIDT (Excl OI) |
(6259.600) |
|
Other Income |
514.600 |
|
Operating Profit |
(5745.000) |
|
Interest |
3206.800 |
|
Exceptional Items |
0.000 |
|
PBDT |
(8951.800) |
|
Depreciation |
3610.200 |
|
Profit Before Tax |
(12561.900) |
|
Tax |
0.000 |
|
Provisions and contingencies |
0.000 |
|
Profit After Tax |
(12561.900) |
|
Extraordinary Items |
0.000 |
|
Prior Period Expenses |
0.000 |
|
Other Adjustments |
0.000 |
|
Net Profit |
(12561.900) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
(143.27)
|
(113.39) |
(70.23) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(155.20)
|
(121.83) |
(75.53) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(21.10)
|
(15.94) |
(10.76) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
1.91
|
(1.62) |
(0.42) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
(4.14)
|
3.80 |
1.12 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.20
|
0.31 |
0.23 |
LOCAL AGENCY FURTHER INFORMATION
|
IN THE HIGH
COURT OF DELHI AT NEW DELHI ORDER
|
|
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 |
No |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
----- |
|
14] |
Estimation for coming financial
year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
Yes |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm
/ promoter involved in |
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] |
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 |
|
Unsecured Loan |
Rs.
In Millions 31.03.2013 |
Rs.
In Millions 31.03.2012 |
|
LONG TERM BORROWINGS |
|
|
|
Debentures** (10050 number of
8.57 % Redeemable Non Convertible Debentures (in the form of Bonds) of INR 1
million each) |
10050.000 |
0.000 |
|
SHORT TERM BORROWINGS |
|
|
|
A. Loans repayable on demand |
|
|
|
(i) From Banks- Overdrafts |
33013.370 |
26474.930 |
|
(ii)From Banks- Short Term Loans |
13000.000 |
0.000 |
|
|
|
|
|
TOTAL |
56063.370 |
26474.930 |
|
NOTES LONG TERM BORROWINGS **Details of Debentures
issued by the Company:- The Debentures
as mentioned above are Government of India Guaranteed, Unsecured, Listed,
8.57 % Redeemable Non Convertible Debentures (in the form of Bonds) having tenure/maturity
period of 10 years with Redemption date being 28.03.2023. The coupon payment
frequency is semiannual interest payment. There was no installment due as on
Balance Sheet date. |
||
VIEW INDEX OF
CHARGES
|
S. No |
Charge ID |
Date of Charge Creation /Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number (SRN |
|
1 |
10310627 |
23/09/2011 |
10,000,000,000.00 |
INDIAN OVERSEAS BANK |
JANPATH BRANCH, F-47,MALHOTRA BUILDING,JANPATH,
NEW DELHI, DELHI - 110001, INDIA |
B22725287 |
|
2 |
10303213 |
30/06/2011 |
10,000,000,000.00 |
UNION BANK OF INDIA |
F14/15, CONNAUGHT PLACE, NEW
DELHI, NEW DELHI, DELHI - 110001, INDIA |
B19176254 |
|
3 |
10278289 |
30/03/2011 |
30,000,000,000.00 |
PUNJAB NATIONAL BANK |
MID CORPORATE BRANCH, A - 9,
CONNAUGHT PLACE, NEW |
B09917915 |
|
4 |
10271493 |
09/03/2011 |
40,000,000,000.00 |
IDBI BANK LIMITED |
3rd floor, INDIAN RED CROSS SOCIETY
BUILDING, 1 RED CROSS ROAD, NEW DELHI, DELHI - 110001, INDIA |
B07756638 |
SUBSIDIARY AND JOINT VENTURE COMPANIES
The company has
two subsidiary and two Joint Ventures companies. The working of the same is as
under:-
(i)
MILLENNIUM TELECOM LIMITED (MTL)
MTL was formed by
MTNL as its wholly owned subsidiary company basically for providing internet
and other value added services. During the financial year 2012-13, MTL has no
revenue from operations. The Board of MTL has decided that MTL may bid in consortium/JV
with MTNL leveraging on financial and experience strength of MTNL, where MTNL
may be the lead partner and MTL be the Technical or support partner or
vice-versa as the requirement may be. For this it has been decided that a
standard consortium/JV agreement will be signed between the two companies. MTL
may be permitted to participate in any tender in consortium/JV with MTNL, where
profitability is 5% or more. For projects, having profitability less than 5%,
permission of MTNL management shall be sought by MTL on case by case basis.
Further the Board of MTL has decided to request MTNL to allow MTL to
participate in the various tenders floated by it after giving MTL preferential
treatment like exemption from payment of Tender document fee, EMD and Performance
Bank Guarantee, exemption/relaxation in eligibility requirement on Financial,
Experience or any other eligibility criteria defined in any tender. MTL is also
planning to take sales and distribution of MTNL's Products and Services and
enter into FTTH Service, segment of MTNL on revenue share Model.
In addition, MTL
will look forward to take any turnkey project for providing telecom solutions
to any customer within India and overseas market and offer consultancy Service
in Telecom domain.
The Board of MTL
is working on the above line of business and is hopeful to generate revenue in
the years to come.
(ii)
MAHANAGAR TELEPHONE (MAURITIUS) LIMITED (MTML)
MTML is a 100%
subsidiary of MTNL and is operational only in Mauritius. The company is having
license for providing mobile services, international long distance services and
internet services. The company initially started its operations with CDMA
technology and in November, 2011 launched its GSM network of 100K lines
capacity. During the year 2012-13, MTML successfully marketed the GSM services
with attractive offerings and could add more than 70,000 GSM subscribers. With
international roaming connectivity with around 200 networks, MTML has been able
to make GSM as its main line of business in less than 18 months of its
operation. The total subscriber base, including the old CDMA network, ILD and
ISP was 141,699 as on 31st March'13. The company is upgrading the GSM network
and plans to launch 3G services in the year 2013-14. It is also adding more
network elements to ensure good quality service, taking into account the
capacity utilization.
MTML has achieved
a turn-over of INR 522 Million during the fiscal year 2012-13 compared to the
last fiscal year turn-over of INR 475 Million, through these telecom services.
Despite the intense competition and market getting saturated, the company could
increase its revenue. However, the net profit was decreased to INR 19 Million
(before tax) in this fiscal year compared to last fiscal year's net profit
(before tax) of INR 54 Million due to increased depreciation as new GSM network
has been added. MTML's own building (Ground + 7 floors) in Cyber City, is
almost ready and will be available for use and leasing out by June'13.
All the expenses of
the company are paid by its own internal resources and CAPEX for procurement of
equipments is also met. There is no debt /liability on the company.
The company is
managed by CEO, CTO, CFO and 9 more officers all on deputation from the parent
company. Other operations are managed through outsourcing.
(iii)
UNITED TELECOMMUNICATIONS LIMITED (UTL)
The joint venture is working for providing telecom services in Nepal.
UTL has a total
customer base of more than 6,98,298 (As per NTA MIS Report dated 13.4.2013) in
numbers and the PCOs are 1,005. UTLs engineering team follows the O and M
procedures scrupulously thereby ensuring fault free network round the clock.
The Management closely monitors the overall performance of the network, quality
of services, subscriber complaints, fault rates, BTS wise traffic and ILD
traffic.
The company is
sustaining its entire operations from internal revenue generation only. Monthly
OPEX including the interest payments, IUC charges, etc are fully met from its
internal accruals.
During the period
ending 31st March 2013 (2012-13), the company has reported a net loss of INR
84.68 million.
(iv)
MTNL STPI IT SERVICES LIMITED (MSITS)
The main objective
of the company is to provide data center services, messaging services, business
application services etc. In order to implement the objectives, MSITS has
established the physical infrastructure of the Data Center at Chennai and space
taken on lease basis from Software Technology Prices of India (STPI). The Data
Center has server farm area of around 3400 sqft and the total investment made
in this regard is of Rs. 47.700 Millions. The Data center is maintaining 99.98%
uptime on 24 X 7.
The commercial
operation of the Data Center had commenced in 2009, the Ministry of External
Affairs (MEA) has hosted its Passport Seva Project at MSITS Data Center through
M/s TCS.
Total revenue of
MSITS for the year 2012-13 is Rs. 36.000 Millions while it was Rs. 29.700
Millions during the year 2011-12.
In addition to the
existing facility at Chennai, MSITS is in the process of setting up the Green
Data Centre (GDC) in the area of about 10000 sq ft each at Hyderabad and New
Delhi on Public-Private Partnership (PPP) model. MSITS has appointed a
consultant for assistance and RFP has been floated for selecting Industry
Partner (IP).
MANAGEMENT
DISCUSSIONS AND ANALYSIS REPORT FOR THE FINANCIAL YEAR 2012-13
INTRODUCTION
MTNL was
incorporated as Public Sector Undertaking in the year 1986 with an Authorized
share capital of Rs. 8000.000 Millions to serve the cities of Delhi and Mumbai
cities in India. Its objective is to provide world class telecommunication
services to its customers at affordable tariffs. MTNL got Navratana Status in
1997. It is listed in NSE, BSE and OTCQX. Application for delisting of shares
from Delhi, Calcutta and Madras Stock Exchange has already been made.
Following major risks are faced by MTNL in the current competitive
telecom scenario:-
1. Market Risk
2. Policy and
Regulatory Risk
3. Technology
Risk/Quality of service
4. Overstaffing
Risk and Staff Costs
5. Manpower Risk
FIXED ASSETS
Intangible
Assets:-
·
Application Software
·
3G and BWA Licence Fees
Tangible Assets:-
·
·
·
Building
·
Leased Premises
·
Lines and Wires
·
Cable
·
Apparatus and Plant
·
Vehicles
·
Furniture and Fixtures
·
Office Machinery
·
Office Equipment
·
Electrical Appliances
·
Computer
·
Assets Scrapped / Decommissioned
WEBSITE DETAILS:
History:
|
Historical
Development |
|
|
1911 |
Establishment of Delhi telephones system with manual exchange |
|
1926 |
Opening if 1st automatic exchange (Lothian exchange) |
|
1937 |
Opening of |
|
1945 |
First Manual Trunk exchange opened.
|
|
1950 |
Opening of Cantt exchange |
|
1953 |
Tiz Hazari Exchange (Lothian exchange ceased working) commissioned. |
|
1955 |
Secretariat exchange commissioned |
|
1958 |
Karol Bagh exchange (SXS) commissioned. |
|
1961 |
Jor Bagh exchange (SXS) commissioned. |
|
1961 |
Shahadara exchange (SXS) commissioned.
|
|
1962 |
Opening of First STC service to |
|
1963 |
Delhi Gate (27) exchange commissioned.
|
|
1964 |
|
|
1966 |
Opening of exchanges at Nangloi, Narela, Najafgarh, Bahadurgarh and
Ballabgarh. |
|
1967 |
Rajpath (38) exchange commissioned
|
|
1968 |
1st X-Bar exchange (KB58) commissioned. X-Bar exchange (JB62)
commissioned |
|
1969 |
Trunk automatic exchange (TAX) commissioned |
|
1970 |
Okhla X-Bar exchange commissioned.
|
|
1972 |
Opening of Idgah-I (51) Strowger exchange. |
|
1972 |
X-Bar (31) Janpath-I exchange commissioned. |
|
1973 |
Opening of X-Bar (67) Chanakya Puri exchange. |
|
1975 |
X-Bar Janpath-IV (34) exchange commissioned. X-Bar Shahdara East (20)
exchange commissioned. |
|
1976 |
Shakti Nagar (74) exchange commissioned. Idgah-II (52) X-Bar exchange
inaugurated by Mr. Fakhuriddin Ali Ahmed, President of India, on 28.8.76 and
presided over by Mr S.D. Sharma (Minister of Communications) Opening of Shahdara East (20) Extension-I, X-Bar exchange on 31.8.76.
It was inaugurated by Mr H.K.L Bhagat (Minister of State for Works and
Housing) and Mr S.D. Sharma (Minister of Communications). |
|
1977 |
Opening of STD Service to |
|
1978 |
Opening of Opening of Hauz Khas -II (66) X-Bar exchange on 15.2.78, by Mr Brij Lal
Verma (Minister of Communications). Opening of |
|
1986 |
Creation of Mahanagar Telephones Nigam Limited |
|
1986 |
First digital exchange world technology brought to |
|
1987 |
Largle Scale introduction of push button telephone made dialling
easier. |
|
1988 |
Phone Plus services multiplied benefits to telephone users. |
|
1992 |
Voice Mail Service Introduced
|
|
1996 |
ISDN services introduced |
|
1997 |
Wireless in Local loop introduced
|
|
1999 |
Internet services introduced.
|
|
2000 |
Millennium Telecom Limited, a wholly owned subsidiary of subject is
born |
|
2001 |
Launched GSM Cellular Mobile service under the brand name Dolphin The company listed at United telecom Limited, MTNL Joint venture in CLI based Internet express services introduced. |
|
2002 |
Launched pre-paid GSM Mobile services under the brand name Trump.
Email on PSTN lines introduced under the brand name mtnlmail. |
|
2003 |
Introduced CDMA 1x 2000 Technology under the brand name Garuda
1-x.Introduced pilot project of ADSL based Broadband services. Introduced
Virtual Phone services. Mahanagar Telephone Mauritius Limited bagged second operator license in |
|
2004 |
Expanded GSM and CDMA capacity by 800,000 lines each (total 1.6 million
lines expanded) STD/ISD rates slashed by almost 60%. MTNL subsidiary MTML
obtained license to provide fixed, mobile and
ILD services in |
|
2005 |
Leading market in GSM customer additions. Launched broadband services
under the brand name “TRI BAND”. Floated tender for 1 million 3G GSM lines. |
NEWS
GOM APPROVES REFUND
FOR BSNL, MTNL FOR RETURNING BWA SPECTRUM
New Delhi, Sept 12,
2013 (PTI)
A Group of
Ministers (GoM) on revival of BSNL and MTNL today decided to refund the money
paid by the state-run players for surrendering BWA spectrum worth more than Rs
110000.000 Millions.
The GoM, headed by
Finance Minister P Chidambaram, also took a decision on providing pension to
MTNL employees, which is likely to cost about Rs 5700.000 Millions a year.
"The Group of
Ministers took firm decisions, one in relation to pension of MTNL employees,
the second in relation to the spectrum that was allocated both to BSNL and MTNL
in the 2.5 GHz band and one other small issue," Telecom Minister Kapil
Sibal told reporters here. He said the decision will now be taken to the
Cabinet for approval.
As per BSNL, there is no business case at such a high cost of spectrum. The
government had given the spectrum to both companies, which paid auction prices
for the airwaves."I think that having resolved these issues and if the
Cabinet approves, I think that both BSNL and MTNL will be on course (to profitability),"
Sibal said.
MTNL shares surged
19.92 per cent to Rs 15.35 at the close on the BSE today.
Both MTNL and BSNL
had requested the government to refund the amount they paid in 2010 for
Broadband Wireless Access spectrum, used to provide 4G data services.
According to
sources, BSNL has sought Rs 67245.100 Millions for return of BWA spectrum fee
while the amount for MTNL was about Rs 57000.000 Millions.
With regard to the pension liability of MTNL
staff, which will cost Rs 5700.000 Millions annually, the state-run company
will pay Rs 1700.000 Millions while the rest will be paid by the government.
MTNL's net loss widened to Rs 53211.200 Millions in the financial year 2012-13
from Rs 41097.800 Millions in FY'12. Sources said BSNL's losses are expected to
be around Rs 81980.000 Millions for the last financial year.
High wage costs had been a major reason for these companies running into
losses. Overall, salary and pension expenses of MTNL employees from 103 per
cent of revenue while for BSNL the same stands at 49 per cent.
The members of GoM include Sibal, Commerce and Industry Minister Anand
Sharma, Planning Commission Deputy Chairman Montek Singh Ahluwalia, Information
and Broadcasting Minister Manish Tewari and Minister of State in the Prime
Minister's Office V Narayanasamy.
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] on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 62.48 |
|
UK Pound |
1 |
Rs. 99.66 |
|
Euro |
1 |
Rs. 83.49 |
INFORMATION DETAILS
|
Report Prepared
by : |
DPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
63 |
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.