MIRA INFORM REPORT
|
Report Date : |
10.12.2014 |
IDENTIFICATION DETAILS
|
Name : |
TATA TELESERVICES ( |
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|
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Formerly Known
As : |
HUGHES TELECOM ( |
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Registered Office
: |
Voltas Premises, T. B. Kadam Marg, Chinchpokli, Mumbai –
400033, |
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Country : |
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Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
13.03.1995 |
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Com. Reg. No.: |
11-086354 |
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Capital
Investment / Paid-up Capital : |
Rs. 19549.277 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L64200MH1995PLC086354 |
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|
|
|
IEC No.: |
Not Divulged |
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|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMH00331C |
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PAN No.: [Permanent Account No.] |
AAACH1458C |
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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 providing telecommunication
services. |
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|
No. of Employees
: |
1386 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (47) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
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|
|
Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a part of “Tata Group”. It is a well-established company
having satisfactory track record. The company possesses a weak market position leading to low
profitability, high gearing and modest debt protection metrics because of
large debt funded capital expenditure programmes. Management has reported a consecutive loss from previous years resulting
in accumulation of the same during FY 2014. The rating also take into consideration, the strategic importance of
the subject of TATA Group to expand its presence in the telecom segment as
well as enabling the company to
leverage the TATA brand in marketing its products. Moreover, the subject derives technological support from Docomo, which
is a market leader in cellular phone market in Trade relations are fair. Business is active. Payment terms are
reported as usually correct. In view of strong financial and managerial support from its promoters,
the subject can be considered for business dealings at usual trade terms and
conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
INDIAN ECONOMIC OVERVIEW
N E W S
Verdict Implications
: Apex court order may alter coal import dynamics. Traders go slow on talks
over coal supply contracts, uncertainty over cancellation of blocks weigh on
stocks.
Recent arrest of the
Chennai head of the Registrar of Companies, the ministry of corporate affairs
arm that ensures that companies file all the information required by the
Companies Act is the latest manifestation of a messy fight between a father and
his adopted son for the control of Rs 40000 mn business empire. The Central
Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10
lakhs as bribe from M A M Ramaswamy, a CBI official said.
Central Bureau of
Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.
Infosys maintains revenue
guidance. COO Rao says attrition still an area of concern and it would take a
few more quarters to bring down levels to 13-15 %.
DHL to invest
Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its
e-commerce business model for the Asia-Pacific region.
Blackstone may buy
stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.
Kingfisher Airlines
Ltd grounded in October 2012 under the weight of heavy debt and accumulated
losses, recently approached the Delhi high court for relief in two separate
cases. The airline challenged a notice by Punjab & National Bank alleging
that It had wilfully defaulted on Rs 7700 mn of loans and sought more time to
comply with the requirements under the listing agreements with the Stock
Exchanges.
OnMobile likely to
sack another 300 employees. The lay-offs follow a spate of senior-level exits
over the past two years, starting with of its founder. The overall lay-offs
could number around 600 and are driven by the need to cut costs, says a former
employee.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long Term Bank Facilities = A |
|
Rating Explanation |
Adequate degree of safety and low credit
risk. |
|
Date |
July 16, 2014 |
|
Rating Agency Name |
CARE |
|
Rating |
Short Term Bank Facilities = A1 |
|
Rating Explanation |
Very strong degree of safety and lowest
credit risk. |
|
Date |
July 16, 2014 |
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
31-03-2014.
INFORMATION DENIED
MANAGEMENT NON CO-OPERATIVE (91-22-66671414)
LOCATIONS
|
Registered Office : |
Voltas Premises, T. B. Kadam Marg, Chinchpokli, Mumbai –
400033, |
|
Tel. No.: |
91-22-66671414 |
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Fax No.: |
91-22-66605335 |
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E-Mail : |
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Website : |
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Administrative Office : |
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Corporate Office/ Branch : |
D-26, TTC Industrial Area, MIDC, Sanpada, P. O. Turbhe, Navi Mumbai –
400 613, |
|
Tel. No.: |
91-22-66615445 |
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Fax No.: |
91-22-66605516/ 5517 |
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E-Mail : |
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Branches : |
Al |
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Fax No.: |
91-20-66096300 |
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E-Mail : |
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Branches : |
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Tel. No.: |
91-832-6647777 |
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E-Mail : |
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Branches : |
Plot No. 37-A, M.I.D.C., Ambad, |
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Tel. No.: |
91-253-6607777 |
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E-Mail : |
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Branches : |
Vasant Rutu Plaza, "E"
Ward, C. S. No. 460, (Daewoo Showroom Building),Venus Corner, New
Shahupuri, Kolhapur - 416003, Maharashtra, India |
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Tel. No.: |
91-231-6687777 |
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E-Mail : |
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Branches : |
Survey No. 3 (Part), Plot No. Commercial Club Plot, Raj Heights,
"Sector P-1, Town Centre, Opposite MGM College, Aurangabad, Maharashtra,
India |
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Tel. No.: |
91-240-6627777 |
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E-Mail : |
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Branches : |
Renavikar Mangal Karyalaya Building, Savedi Cell Site, Savedi Road,
Ahmednagar - 414003, Maharashtra, India |
|
Tel. No.: |
91-241-6607777 |
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Branch Office : |
Ground Floor, Ranjit Empire, |
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Tel. No.: |
91-233-6607777 |
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Branch Office : |
Ispat House, B. G. Kher Marg, Worli, Mumbai - 400 018, |
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Tel. No.: |
91-22-56615445 |
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Branch Office : |
1st Floor, |
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Branch Office : |
C/O Premco Industries, Premco House, A-26, Street No. 3, MIDC Marol, Andheri
(East), Mumbai - 400050, Maharashtra, India |
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Branch Office : |
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DIRECTORS
As on 31.03.2014
|
Name : |
Mr. Kishor A Chaukar |
|
Designation : |
Chairman |
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Date of Birth/ Age : |
01.08.1947 |
|
Date of Appointment : |
05.09.2012 |
|
Qualification : |
Post Graduate in Management from the IIM (Ahmedabad) |
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Name : |
Mr. Narasimhan Srinath |
|
Designation : |
Managing Director |
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|
Name : |
Mr. Amal Ganguly |
|
Designation : |
Independent Director |
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|
Name : |
Mr. Nadir Godrej |
|
Designation : |
Additional Director |
|
Date of Birth/ Age : |
26.08.1951 |
|
Date of Appointment : |
12.03.2008 |
|
Qualification : |
B. S. (Chemical Engineering) from the Massachusetts Institution of
Technology, USA M.S. (Chem Eng.) from Stanford University, USA and MBA from
Harvard Business School. |
|
|
|
|
Name : |
Mr. Ashok Jhunjhunwala |
|
Designation : |
Director |
|
Date of Birth/ Age : |
22.06.1953 |
|
Date of Appointment : |
12.04.2007 |
|
Qualification : |
B. Tech from IIT (Kanpur) and MS and Ph. D degrees from
the University of Maine |
|
|
|
|
Name : |
Mr. D. T. Joseph |
|
Designation : |
Independent Director |
|
Date of Birth/ Age : |
21.12.1945 |
|
Date of Appointment : |
08.05.2009 |
|
Qualification : |
Master’s degrees in English Literature and Economics from
the University of Madras and University of Manchester, respectively |
|
|
|
|
Name : |
Mr. N. S. Ramachandran |
|
Designation : |
Director |
|
Date of Birth/ Age : |
25.03.1939 |
|
Date of Appointment : |
06.12.2002 |
|
Qualification : |
M. E. (Power Engineering) |
|
|
|
|
Name : |
Mr. S Ramadoral |
|
Designation : |
Director |
|
Date of Birth/ Age : |
06.10.1944 |
|
Date of Appointment : |
10.08.2006 |
|
Qualification : |
B. Sc. B. Sc., Bachelor of Engineering degree in Electronics and
Telecommunication from India Institute of science, Bangalore and Master’s degree
in Computer Science from the University of California (UCLA), USA |
|
|
|
|
Name : |
Mr. Koji Ono |
|
Designation : |
Director (w.e.f. June 1, 2012) |
|
Date of Birth/ Age : |
08.10.1956 |
|
Date of Appointment : |
01.06.2012 |
|
Qualification : |
Masters degree in Engineering from Waseda University in Japan as well
as Masters in Computer Science from Syracuse University, USA |
KEY EXECUTIVES
|
Name : |
Mr. Kiran Thacker |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. Hiten Koradia |
|
Designation : |
Manager – Investor Relations |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2014
|
Category of
Shareholder |
No. of Shares |
Percentage
of Holding |
|
(A) Shareholding of
Promoter and Promoter Group |
|
|
|
|
|
|
|
|
1234358382 |
63.14 |
|
|
1234358382 |
63.14 |
|
|
|
|
|
|
229856926 |
11.76 |
|
|
229856926 |
11.76 |
|
Total shareholding of
Promoter and Promoter Group (A) |
1464215308 |
74.90 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
1993525 |
0.10 |
|
|
44199 |
0.00 |
|
|
935000 |
0.05 |
|
|
22942073 |
1.17 |
|
|
5313 |
0.00 |
|
|
4180 |
0.00 |
|
|
1133 |
0.00 |
|
|
25920110 |
1.33 |
|
|
|
|
|
|
54943153 |
2.81 |
|
|
|
|
|
|
268858254 |
13.75 |
|
|
129717021 |
6.64 |
|
|
11273881 |
0.58 |
|
|
25066 |
0.00 |
|
|
11240163 |
0.57 |
|
|
8426 |
0.00 |
|
|
226 |
0.00 |
|
|
464792309 |
23.78 |
|
Total Public
shareholding (B) |
490712419 |
25.10 |
|
Total (A)+(B) |
1954927727 |
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) |
1954927727 |
0.00 |
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%20LIMITED%20-%20297948_MIRA%2010-Dec-2014_files/image017.gif){kind=small}
%20LIMITED%20-%20297948_MIRA%2010-Dec-2014_files/image018.gif){kind=small}
%20LIMITED%20-%20297948_MIRA%2010-Dec-2014_files/image019.gif)
Shareholding of securities (including shares, warrants, convertible
securities) of persons belonging to the category Promoter and Promoter Group
|
Name of
Shareholder |
No. of Shares |
Percentage
of Holding |
|
Tata
Teleservices Limited |
714317891 |
36.54 |
|
Tata
Power Company Limited |
137263174 |
7.02 |
|
Tata
Sons Limited |
327759467 |
16.77 |
|
Tata
Sons Limited |
55000000 |
2.81 |
|
Panatone
Finvest Limited |
17850 |
0.00 |
|
NTT
Docomo Inc |
229856926 |
11.76 |
|
Total |
1464215308 |
74.90 |
BUSINESS DETAILS
|
Line of Business : |
The Company is engaged in providing telecommunication
services. |
|
|
|
|
Products : |
Not Divulged |
|
|
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Brand Names : |
-- |
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Agencies Held : |
-- |
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Exports : |
Not Divulged |
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|
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Imports : |
Not Divulged |
|
|
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Terms : |
|
|
Selling : |
Not Divulged |
|
|
|
|
Purchasing : |
Not Divulged |
GENERAL INFORMATION
|
Suppliers : |
Not Divulged |
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Customers : |
Not Divulged |
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|
No. of Employees : |
1386 (Approximately) |
|||||||||||||||||||||||||||||||||
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|
|||||||||||||||||||||||||||||||||
|
Bankers : |
· Citibank NA, Dr. S. S. Rao Road, Parel, Mumbai - 400 012, Maharashtra, India · Industrial Development Bank of India · Axis Bank Limited |
|||||||||||||||||||||||||||||||||
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Facilities : |
Notes : Long Term
Borrowings (a) Term Loans from banks
(b) External Commercial Borrowings (ECB)
Short-Term
Borrowings a) Short-Term Loans
(b) Cash Credit Accounts I. Stipulated securities for the loans are first pari pasu charge on the assets of the Company II. Interest rate :-
(c) Buyers' Credit
Buyers' credit is linked with LIBOR + Spread as Applicable |
|
|
|
|
Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
Address : |
Indiabulls Finance Centre, Tower 3, 32 Floor, Elphinstone Mills Compound, Senapati Bapat Marg, Elphinstone (W), Mumbai - 400 013, Maharashtra, India |
|
|
|
|
Investing Parties :
|
|
|
|
|
|
Fellow Subsidiaries
: |
|
CAPITAL STRUCTURE
As on 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
2500000000 |
Equity Shares |
Rs.10/- each |
Rs.25000.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1954927727 |
Equity Shares |
Rs.10/- each |
Rs.19549.300
Millions |
Reconciliation of
the number of shares
|
Equity Shares |
Number
of Shares |
Rs. In Millions |
|
Shares outstanding at the beginning of the year |
1897196854 |
18972.000 |
|
Increase during the year |
57730873 |
577.300 |
|
Decrease during the year |
- |
- |
|
Equity shares outstanding at the end of the year |
1954927727 |
19549.300 |
Terms/rights attached to equity shares:
The Company has
only one class of equity shares having par value of Rs.10 per share. Each
holder of equity shares is entitled to one vote per share.
Equity shares held
by the ultimate holding company and its subsidiaries and associates:
Of the above 1244664393
equity shares are held by Tata Sons Limited (the ultimate holding company) and
its subsidiaries and associates as follows:
|
Name of
Shareholder |
Relationship |
Number
of Shares |
|
Tata Teleservices Limited |
Ultimate Holding Company |
714317891 |
|
The Tata Power Company Limited |
Subsidiaries of Ultimate Holding Company |
137263174 |
|
Tata Sons Limited |
Associates of Ultimate Holding Company |
382759467 |
|
NTT Docomo Inc. |
Subsidiaries of Ultimate Holding Company |
229856926 |
Details of equity shares held in the Company by each shareholder holding
more than 5% shares
|
Name of
Shareholder |
Number
of Shares |
Rs. In Millions |
|
Tata Teleservices Limited |
714317891 |
37.65 |
|
The Tata Power Company Limited |
393065478 |
20.72 |
|
Tata Sons Limited |
229856926 |
12.12 |
|
NTT Docomo Inc. |
137263174 |
7.24 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
19549.300 |
18,972.000 |
18,972.000 |
|
(b) Reserves & Surplus |
(43077.600) |
(36,899.500) |
(30,311.800) |
|
(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) |
(23528.300) |
(17,927.500) |
(11,339.800) |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
47137.900 |
48,970.000 |
45,956.900 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long term
liabilities |
226.300 |
668.600 |
2,356.500 |
|
(d) long-term
provisions |
42.200 |
51.500 |
45.200 |
|
Total Non-current
Liabilities (3) |
47406.400 |
49,690.100 |
48,358.600 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
14224.300 |
10,719.100 |
7,038.000 |
|
(b) Trade
payables |
6781.400 |
7,891.900 |
7,665.800 |
|
(c) Other
current liabilities |
6979.200 |
7,598.200 |
7,568.300 |
|
(d) Short-term
provisions |
4747.200 |
2,232.000 |
1,699.500 |
|
Total Current
Liabilities (4) |
32732.100 |
28,441.200 |
23,971.600 |
|
|
|
|
|
|
TOTAL |
56610.200 |
60,203.800 |
60,990.400 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
31235.300 |
32,461.800 |
32,957.000 |
|
(ii)
Intangible Assets |
13943.600 |
15,435.500 |
16,905.500 |
|
(iii)
Capital work-in-progress |
376.200 |
267.200 |
643.900 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
0.000 |
0.000 |
0.000 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
5597.600 |
2,054.600 |
2,087.500 |
|
(e) Other
Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current
Assets |
51152.700 |
50,219.100 |
52,593.900 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
503.500 |
0.000 |
|
(b)
Inventories |
44.400 |
31.900 |
38.100 |
|
(c) Trade
receivables |
2523.100 |
2,976.700 |
3,047.600 |
|
(d) Cash
and cash equivalents |
216.500 |
863.100 |
1,373.900 |
|
(e)
Short-term loans and advances |
1438.300 |
3,581.700 |
2,466.600 |
|
(f) Other
current assets |
1235.200 |
2,027.800 |
1,470.300 |
|
Total
Current Assets |
5457.500 |
9,984.700 |
8,396.500 |
|
|
|
|
|
|
TOTAL |
56610.200 |
60,203.800 |
60,990.400 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
27311.800 |
26345.400 |
24884.400 |
|
|
|
Other Income |
874.900 |
510.100 |
190.300 |
|
|
|
TOTAL (A) |
28186.700 |
26855.500 |
25074.700 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Provision for Contingencies |
994.000 |
955.400 |
132.800 |
|
|
|
Employees benefits expense |
1726.700 |
1598.100 |
1744.600 |
|
|
|
Other expenses |
19323.000 |
19295.700 |
17709.000 |
|
|
|
TOTAL
(B) |
22043.700 |
21849.200 |
19586.400 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
6143.000 |
5006.300 |
5488.300 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
5650.500 |
5,643.500 |
5,229.800 |
|
|
|
|
|
|
|
|
|
|
PROFIT/LOSS
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
492.500 |
(637.200) |
258.500 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
6093.300 |
5,950.500 |
5,434.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT/LOSS BEFORE
TAX (E-F) (G) |
(5600.800) |
(6,587.700) |
(5,175.500) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT/LOSS
AFTER TAX (G-H) (I) |
(5600.800) |
(6,587.700) |
(5,175.500) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(42731.100) |
(36143.400) |
(30967.900) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(48331.900) |
(42731.100) |
(36143.400) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
Other Income |
62.300 |
86.300 |
0.000 |
|
|
|
TOTAL EARNINGS
IN FOREIGN CURRENCY |
62.300 |
86.300 |
0.000 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Capital Goods |
183.100 |
426.600 |
1129.800 |
|
|
TOTAL IMPORTS |
183.100 |
426.600 |
1129.800 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(2.86) |
(3.47) |
(2.73) |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
Net Profit Margin (PAT / Sales) |
(%) |
(20.51) |
(25.01) |
(20.80) |
|
|
|
|
|
|
|
Operating Profit Margin (PBIDT/Sales) |
(%) |
22.49 |
19.00 |
22.06 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(9.96) |
(10.83) |
(8.58) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.24 |
0.37 |
0.46 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
(2.61) |
(3.33) |
(4.67) |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.17 |
0.27 |
0.35 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Share Capital |
18972.000 |
18972.000 |
19549.300 |
|
Reserves & Surplus |
(30311.800) |
(36899.500) |
(43077.600) |
|
Net worth |
(11339.800) |
(17927.500) |
(23528.300)9 |
|
|
|
|
|
|
long-term borrowings |
45956.900 |
48970.000 |
47137.900 |
|
Short term borrowings |
7038.000 |
10719.100 |
14224.300 |
|
Total borrowings |
52994.900 |
59689.100 |
61362.200 |
|
Debt/Equity ratio |
(4.673) |
(3.329) |
(2.608) |
%20LIMITED%20-%20297948_MIRA%2010-Dec-2014_files/image020.gif)
YEAR-ON-YEAR GROWTH
|
Year on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Revenue from Operations |
24884.400 |
26345.400 |
27311.800 |
|
|
|
5.871 |
3.668 |
%20LIMITED%20-%20297948_MIRA%2010-Dec-2014_files/image021.gif)
NET PROFIT MARGIN
|
Net Profit Margin |
31.03.2014 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Revenue from Operations |
24884.400 |
26345.400 |
27311.800 |
|
Profit |
(5175.500) |
(6587.700) |
(5600.800) |
|
|
(20.80%) |
(25.01%) |
(20.51%) |
%20LIMITED%20-%20297948_MIRA%2010-Dec-2014_files/image022.gif)
LOCAL AGENCY FURTHER INFORMATION
CURRENT MATURITIES
OF LONG TERM DEBT DETAILS
Rs.
In Millions
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
Current maturities of long term debt |
3837.300 |
2781.500 |
1485.500 |
|
Total |
3837.300 |
2781.500 |
1485.500 |
|
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 |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
----------- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
---------- |
|
22] |
Litigations that the firm / promoter involved in |
---------- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
---------- |
|
26] |
Buyer visit details |
---------- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
UNSECURED LOAN:
|
Particulars |
31.03.2014 Rs.
In Millions |
31.03.2013 Rs.
In Millions |
|
Short Term
Borrowings |
|
|
|
Short Term Loans |
4250.000 |
4150.000 |
|
Inter corporate deposits |
0.000 |
400.000 |
|
Total |
4250.000 |
4550.000 |
CORPORATE INFORMATION
The Company was incorporated on March 13, 1995.
The Company is licensed to provide basic and cellular telecommunication
services. The Company presently holds two Unified Access (Basic and Cellular)
Service Licenses, one for Mumbai Service Area and another for Maharashtra and
Goa and provides telecommunication services using Code Division Multiple Access
(CDMA) technology/ Global System for Mobile Communications (GSM) technology
under the aforesaid licenses. The Company also holds the National Internet Service
provider – Internet Telephony license and 3G spectrum in Maharashtra and Goa
circle (excluding Mumbai).
FINANCIAL RESULTS:
The Company reported total revenue of Rs. 28190.000 Millions compared to Rs. 26860.000 Millions the previous year. During the year, The Company continued its focus on improving profitability which has helped to achieve 23% growth in EBITDA at Rs. 6140.000 Millions as against Rs. 5010.000 Millions the previous year. The accumulated losses of the Company at the end of the financial year have exceeded its paid-up equity capital and reserves. However, the Company has been consistently making cash profits over the past few years.
COMPANY OVERVIEW
The Company holds two Unified Access (basic and cellular) Service
Licenses (“UASL”), one for Mumbai Metro service area and the other for
Maharashtra service area i.e., Rest of Maharashtra and Goa. The Company is an
integrated player across:
- Technologies - Wireline, Code Division
Multiple Access (“CDMA”), Global System for Mobile (“GSM”) & 3G
(Maharashtra service area);
- Products - Voice, Data & Other
enterprise services (Connectivity and Managed services, Verticals based
mobile applications and Cloud services); and
- Customer segments - Retail, Large
Corporate and Small and Medium Enterprises.
The Company provides its range of products
and services to about 10.6 Million (wireline + wireless) subscribers under the
Tata DOCOMO brand. Its network consists of more than 15,000 Base Trans receiver
Stations and optical fiber transmission network of approx.14000 kms. In Mumbai
& Maharashtra.
MANAGEMENT DISCUSSION
AND ANALYSIS REPORT:
OVERVIEW OF INDIA'S
ECONOMY:
As per advanced estimates data released by the Central Statistics Office (“CSO”) of Government of India, India's economy grew by 4.7% in 2013-14, shade above the decade low growth of 4.5% growth in 2012-13. The economy posting two consecutive years of below 5% growth is a result of weak investor sentiments. India's growth challenge has been further accentuated by an adverse global economic climate that is impacting the country's exports growth; the sector accounts for nearly a quarter of the economy.
Growth in 2013-14 was helped by a smart rebound in the farm sector which grew an annual 4.7% compared to 1.4% in the previous year. Industry growth was severely impacted at 0.65%, while services growth at 7% was similar to previous year. The fiscal deficit for the year was restricted to 4.5% of GDP driven by Government's measures to limit the same. Inflation continued to remain high (CPI) at 9.5%, while it has moderated compared to previous year and is a barrier to reducing interest rates required to revive investments.
As per the World Economic Outlook published by the International Monetary Fund (“IMF”) in April 2014, India's GDP growth is projected to strengthen to 5.4% in 2014-15 and 6.4% in 2015-16, assuming that the Government's efforts to revive investment growth succeed and exports' growth strengthens after the recent rupee depreciation and improvement in the global economy.
OUTLOOK:
The outlook for the Company continues to be positive with the telecom
sector continuing to offer opportunities, both in voice and data, to quality
operators in the long run. The Company has set ambitious targets for the future
and concentrated on a set of core themes: better asset productivity, revenue
enhancement through an enhanced customer mix and continued focus of data and
cost optimization.
Albeit a late entrant, the Company's GSM business has witnessed rapid
growth driven by a focus on the High Value Customers (”HVC”), process
improvement across business lines and brand strength. The growth in the GSM
business shall continue to be better than the decline in the CDMA business,
which is stemming from shrinking CDMA ecosystem globally. The Company continues
to focus on profitable revenue growth, with specific focus on data, tapping the
growing data market. While voice continues to be the mainstay for revenue
today, future growth is expected to come more from data services. Despite the
entry of 3G services through multiple operators, The Company continues to lead
the data market for dongles with its highly successful High-Speed Internet
Access Services (“HSIA”) and 3G services under the Tata DOCOMO Photon brand. To
tap emerging opportunities in new generation services, the Company has formed a
dedicated team to focus on non-voice services, which will be the driver of
revenues and margins in the future. Several services have been launched already
— home surveillance, smart tracking solutions, m-commerce and other
machine-to-machine solutions.
The changing needs of customers will necessitate that the Company
continue to evolve with the market if they are to truly provide value and
remain competitive on a sustained basis. With regards to cost optimization, the
strategy revolves around redeploying assets from low potential areas to high
potential regions and focus on generating higher revenues from data services.
The Company has increased its focus on the enterprise business over the last
couple of years and is leveraging its relationship with its group company, Tata
Communicate ions Limited, which is the leading telecommunications player in
India's Enterprise business. With the Indian economy expected to pick up, The
Company’s enterprise segment shall significantly benefit from its recent
investments in the fixed line, Wi-Fi and other product segments.
The Company has and shall continue to roll out necessary measures to
realize this potential and stands steadfast in its resolve to be counted
amongst the top 3 operators.
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE
CREATION/MODIFICATION |
CHARGE AMOUNT
SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST
NUMBER (SRN) |
|
1 |
10468662 |
26/12/2013 |
1,400,000,000.00 |
IDBI TRUSTEESHIP SERVICES LIMITED |
ASIAN BUILDING GROUND FLOOR, 17 R KAMANI MARG BAL |
B92920867 |
|
2 |
10460711 |
13/11/2013 |
4,000,000,000.00 |
IDBI TRUSTEESHIP SERVICES LIMITED |
ASIAN BUILDING, GROUND FLOOR, 17, R. KAMANI MARG, |
B89740765 |
|
3 |
10446465 |
28/08/2013 |
4,246,000,000.00 |
IDBI TRUSTEESHIP SERVICES LIMITED |
ASIAN BUILDING, GROUND FLOOR, 17, R. KAMANI MARG, |
B83738583 |
|
4 |
10310340 |
15/09/2014 * |
16,890,000,000.00 |
IDBI TRUSTEESHIP SERVICES LIMITED |
ASIAN BUILDING, GROUND FLOOR, 17 R KAMANI MARG, BALLARD ESTATE, MUMBAI, MAHARASHTRA - 400001, INDIA |
C25451485 |
|
5 |
10239381 |
20/11/2014 * |
61,970,000,000.00 |
IDBI TRUSTEESHIP SERVICES LIMITED |
ASIAN BUILDING, GROUND FLOOR, 17 R KAMANI MARG, BALLARD ESTATE, MUMBAI, MAHARASHTRA - 400001, INDIA |
C34519264 |
* Date of charge modification
FIXED ASSETS
· Leasehold assets
· Land
· Office Premises
· Building
· Plant and Machinery
· Furniture, Fixture and Office Equipment
· Vehicles
· License
· Computer Software
PRESS RELEASE:
TATA TELESERVICES (MAHARASHTRA) LIMITED (TTML) EBIDTA FOR FY’ 14 SHOWS AN
ANNUAL GROWTH OF 22.5PER CENT
- TTML EBIDTA for FY14 stands at Rs 6140.000 Millions, a 22.5% annual growth, as compared to Rs 5010.000 Millions in FY’ 13
- TTML EBIDTA for Q4 FY14 stands at Rs 1680.000 Millions, registering a growth of 13.5% as compared to Q3 of FY 2014
- Company’s revenues for FY14 is Rs 28190.000 Millions, year-on-year growth of 5 per cent
Mumbai, 15 May 2014: TTML today announced its quarterly and yearly financial results for the year ended 31stMarch 2014. The strategy of profitable revenue growth has started yielding results, as the company grew EBIDTA by 22.5% in FY’14. The Quarter on Quarter EBIDTA growth achieved was 13.5%. TTML’s EBIDTA stood at Rs 1680.000 Millions for the quarter in review.
The Company showed a 2.9per cent growth in year-on-year revenues at Rs 7220.000 Millions for the quarter ended 31stMarch 2014, compared to Rs 7020.000 Millions in the corresponding quarter of the previous year. The company registered a revenue growth of 5 per cent, at Rs 28190.000 Millions, compared to Rs 26860.000 Millions in the previous year.
The Company showed a 2.9 per cent growth in year-on-year revenues at Rs 7220.000Millions for the quarter ended 31stMarch 2014, compared to Rs 7020.000 Millions in the corresponding quarter of the previous year. The company registered a revenue growth of 5 per cent, at Rs 28190.000 Millions, compared to Rs 26860.000 Millions in the previous year.
Some of the other business areas, where the company has gained momentum and traction are Public Wi-Fi services, deployment of Enterprise solutions at GVKMIAL (T2 Mumbai), launch of Photon Max Wi-Fi, and a host of industry first initiatives in VAS and NVS category like GET App (in the Mobile Advertising space), Social Networking Data packs, Music led Data plans, amongst others.
The company has been constantly enhancing its network reach and coverage both through organic expansion as well as through partnerships with other operators. TTML has enhanced its network coverage by adding approximately 1900 GSM cell sites , taking the total count to over 10,000 GSM cell sites I n FY’14 and providing services across 900 towns
RCOM, TATA TELE TOP NET LOSERS OF SUBSCRIBERS UNDER MNP
Reliance Communications, Tata Teleservices and Aircel are among the top
net losers of subscribers under mobile number portability (MNP) services,
Telecom Minister Ravi Shankar Prasad said today.
Idea Cellular has been the biggest net gainer of mobile subscribers
though MNP service, as per data till October, 2014 presented in the Lok Sabha
by the minister.
"The public sector companies, i.e. BSNL and MTNL have not lost the
maximum number of subscribers cumulatively since the launch of MNP in the
country," Prasad said in a written reply to the Lok Sabha.
The MNP service allows mobile subscribers to change their service
provider while retaining their existing numbers. RCom net loss of subscribers
stood over 78 lakhs as on October 30, 2014, Tata Teleservices 53 lakhs and
Aircel over 36 lakh net subscribers-- which is more than that of BSNL and MTNL.
BSNL net loss of subscribers was over 22 lakh and MTNL lost over 2.7
lakh customers. MTNL, however, lost about 4 times more number of customers than
it gained.
Only four operators have gained subscribers through MNP-- Idea, Airtel,
Vodafone and RCom subsidiary Reliance Telecom.
Idea net gain of subscribers at the end of October 2014 stood at over
1.25 Millions, Vodafone gained over 1.04 Millions, Airtel 50 lakh and Reliance
Telecom over 3.84 lakh subscribers, as per the official.The MNP at present
allows a mobile customer to change network within same telecom service area.
The government has asked telecom operators to implement full MNP from May 3
which will allow mobile customers to change their operator in case they shift
to a place outside the service provider's area part while retaining their same
number.
DOT TO CALCULATE ONE-TIME SPECTRUM FEE AFRESH AFTER AUCTION
The Department of Telecom is planning a re-calculation of the one-time
spectrum charge, which has been estimated at about Rs 25,000 Millions, to be
levied on telecom operators after completion of next round of auction.
"We will need to re-calculate it (the one-time spectrum charge)
once auctions are completed," a DoT official told PTI.
One spectrum fee is the charge operators have been asked to pay for
holding additional spectrum.
Initially, telecom firms were given 4.4 MHz spectrum along with licence
for Rs 16580.000 Millions for pan-India operations. They were entitled to get
another 1.8 MHz on fulfilment of certain subscriber-base conditions.
Most of the operators were allocated additional spectrum without paying
any upfront charges for it.
In November last year, the government decided that operators should pay
for holding spectrum above 6.2 MHz retrospectively, from July 2008 to January
1, 2013 based on market determined price decided in auction.
Besides, for spectrum above 4.4 MHz operators would have to pay for the
period between January 2013 and the expiry of licences. The rule applied to
CDMA players like Reliance Communications, Tata Teleservices for spectrum above
2.5 MHz.
In the estimates, DoT had included price of spectrum in four
cities--Delhi, Mumbai, Kolkata and Rajasthan-- based on reserve price fixed by
government as there were no bidders.
DoT had raised demand for about Rs 260000.000 Millions as one-time
spectrum fee. TTSL, however, surrendered additional spectrum under protest in
all service area, except Delhi and Mumbai, which brings down the total estimates
calculated by DoT. The company has also approached court challenging order on
one-time spectrum fee.
DoT issued demand notice to companies in January but no amount has been
recovered yet as most of the telecom service providers have challenged the
order before courts and the matter is now sub-juice.
GSM operators were asked to pay total of about Rs 231770.000 Millions
and CDMA operators were jointly asked to pay Rs 30000.000 Millions.
As per demand raised by DoT for GSM airwaves, BSNL will have to pay
around Rs 69120.000 Millions, Bharti Airtel Rs 5,201 Millions, Vodafone Rs
35990.000 Millions, MTNL Rs 32050.000 Millions.
Idea Cellular Rs 21130.000 Millions (includes Rs 231.500 Millions of
Spice), Aircel Rs 13650.000 Millions (includes Rs 14 Millions of Dishnet), Loop
Mobile Rs 6060.000 Millions and Reliance Communications Rs 1730.000 Millions.
Charges for additional CDMA spectrum held by RCom is estimated to be around Rs
17520.000 Millions and for Tata Teleservices Rs 11550.000 Millions approximately.
CMT REPORT (Corruption, Money Laundering
& Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered
forfeited for violation of money laundering or international anti-terrorism
laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other official
proceeding for making any prohibited payments or other improper payments to
government officials for engaging in prohibited transactions or with designated
parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or investigation
registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.87 |
|
|
1 |
Rs.96.90 |
|
Euro |
1 |
Rs.76.29 |
INFORMATION DETAILS
|
Information
Gathered by : |
SVD |
|
|
|
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
MTN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER
|
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
47 |
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.