MIRA INFORM REPORT

 

 

Report Date :

07.02.2014

 

IDENTIFICATION DETAILS

 

Name :

RELIANCE INFRATEL LIMITED (w. e. f. 04.01.2008)

 

 

Formerly Known As :

RELIANCE TELECOM INFRASTRUCTURE LIMITED (w.e.f. 11.10.2006)

 

RELIANCE COMMUNICATIONS RAJASTHAN LIMITED (w.e.f. 18.06.2004)

 

RELIANCE COMMUNICATIONS RAJASTHAN PRIVATE LIMITED

 

 

Registered Office :

H Block, 1st Floor, Dhirubhai Ambani Knowledge City, Navi Mumbai - 400710, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

16.04.2001

 

 

Com. Reg. No.:

11-131598

 

 

Capital Investment / Paid-up Capital :

Rs. 28330.000 Millions

 

 

CIN No.:

[Company Identification No.]

U72900MH2001PLC131598

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMR21559G

 

 

PAN No.:

[Permanent Account No.]

AACCR0181Q

 

 

Legal Form :

A Closely Held Public Limited Liability Company.

 

 

Line of Business :

Providing passive telecommunication infrastructure Services.

 

 

No. of Employees :

Information declined by management

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (54)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

USD 324960000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Exist

 

 

Comments :

Subject is a part of RELIANCE GROUP.

 

It is a well established and repurted company having satisfactory track record. There appears slight dip in the turnover of the company during financial year 2013. However, there seems growth in the profitability of the company.

 

General financial position of the company is strong. The company gets good support from its group companies.

 

Trade relations are fair. Business is active. Payments are reported to regular and as per commitment.

 

The company can be considered normal for business dealings at usual trade terms and conditions.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

INDIAN ECONOMIC OVERVIEW

 

The services sector, the largest contributor to India’s GDP, contracted for the sixth consecutive month in December, as orders dipped. However, hiring has risen.  Direct tax collections rose 12.3 % during the April – December period of the current financial year.  The government has decided to retain 100 per cent foreign direct investment in both greenfield (new) and brown field (existing) pharmaceutical companies, despite concerns over genetic drugs going out of production, if multi-national companies take over domestic ones. In M&A deals, a non compete clause would not be allowed, except in special circumstances. The Department of Industrial Policy and Promotion plans to release the next edition of its consolidated foreign direct investment policy document on March 31, incorporating changes made in the past year. DIPP compiles all policies related to India’s FDI regime into a single document to make it easy for investors to understand. 185 million estimated number of mobile internet users in India by June 2014, according to a report by the Internet & Mobile Association of India and IMRB International.  India had 110 million mobile internet users with 25 million in rural areas. $3.77 tn estimated global IT spending in 2014, according to research firm Gartner Inc. The growth forecast for this year is cut to 3.1 %from the earlier estimate of 3.5 %. The spending growth forecast for telecom services – a segment that accounts for more than 40 % at total IT spending – from 1.9 per cent to 1.2 per cent is the main reason for this overall IT cut. A Reserve Bank of India committee has recommended setting up a special category of lenders who would cater to small businesses and households, to expand the number of customers with access to banking services. These banks would focus on providing payment services and deposit products.  Indian banks want the free use of automated teller machines to be capped at five transactions in a month including that of the bank in which the account is active. This follows state government order to banks to install security guards at ATM booths after a woman banker was assaulted in Bangalore. The government is likely to present a vote on Account in mid-February. The annual Economic Survey will be tabled later in Parliament along with the full Budget. A full Budget for 2014/15 is likely to be present in July by the new government formed after the General Election. The government will soon launch an internet spy system, called Netra, to detect malafide messages. Security agency will deploy the system to capture dubious voice traffic on applications such as Skype and Google Talk, as well as tweeters.

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

ICRA

Rating

Long term rating: [BBB + (SO)] Revised from “A-”

Rating Explanation

Moderate degree of safety and carry moderate credit risk.

Date

2013

 

Rating Agency Name

ICRA

Rating

Short term rating: “A2+”

Rating Explanation

Strong degree of safety. It carry very low credit risk.

Date

2013

 

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

 

 

INFORMATION DECLINED

 

MANAGEMENT NON-COOPERATIVE (Tel. No.: 91-22-30386286)

 

 

LOCATIONS

 

Registered Office :

H Block, 1st Floor, Dhirubhai Ambani Knowledge City, Navi Mumbai - 400710, Maharashtra, India

Tel. No.:

91-22-30386286

Fax No.:

91-22-30376622

E-Mail :

hitesh.chawda@relianceada.com

anil.c.shah@relianceada.com

 

 

DIRECTORS

 

As on 30.09.2013

 

Name :

Mr. Anil Dhirajlal Ambani

Designation :

Director

Address :

39, Sea Wind, Cuffe Parade, Colaba, Mumbai - 400005, Maharashtra, India

Date of Birth/Age :

04.06.1959

Qualification :

MBA from the Wharton School of the University of Pennsylvania

Date of Appointment :

18.06.2007

PAN No.:

AHBPS7964F

DIN No.:

00004878

 

 

Name :

Mr. Raj Narain Bhardwaj

Designation :

Director

Address :

402, Moksh Apartments, Upper Govind Nagar, Malad (East), Mumbai - 400097, Maharashtra, India

Date of Birth/Age :

08.05.1947

Qualification :

"B.A. (Hons.), MA(Economics) from Delhi School of Economics, DIR and PM, Punjab University, Patiala

Date of Appointment :

19.09.2009

DIN No.:

01571764

 

 

Name :

Mr. Hasit Navinchandra Shukla

Designation :

Director

Address :

403, Sabita Co-operative Housing Society Limited, 16th Road, Bandra (West), Mumbai-400050, Maharashtra, India

Date of Birth/Age :

28.08.1962

Qualification :

B.Com, FCS,LLB

Date of Appointment :

10.02.2012

DIN No.:

00004549

 

 

Name :

Mr. Jayaraman Ramachandran

Designation :

Director

Address :

417, Faculty Quarters, Indian Institute of Management, Bannerghatta Road, Bangalore – 560076, Karnataka, India

Date of Birth/Age :

01.06.1957

Date of Appointment :

30.09.2013

DIN No. :

00004593

 

 

KEY EXECUTIVES

 

Name :

Mr. Anil Chandulal Shah

Designation :

Company Secretary

Address :

6, Reliance Bill Collection Center, Near Ambedkar Garden, Road No. 18, Chembur East, Mumbai – 400071, Maharashtra, India

Date of Birth/Age :

24.04.1963

Date of Appointment :

30.03.2007

PAN No.:

AHBPS7964F

 

 

Name :

Mr. Anil Chandulal Shah

Designation :

Manager 

Address :

6, Reliance Bill Collection Center, Near Ambedkar Garden, Road No. 18, Chembur East, Mumbai – 400071, Maharashtra, India

Date of Birth/Age :

24.04.1963

Date of Appointment :

01.04.2011

PAN No.:

AHBPS7964F

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 30.09.2011

 

NOTE: MAJOR SHAREHOLDERS DETAILS FILE ATTACHED.

 

 

As on 30.09.2013

 

Equity Share Break up (Percentage of Total Equity)

 

Category

Percentage of Holding

Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others

19.79

Bodies corporate

80.21

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Providing passive telecommunication infrastructure Services.

 

 

Products :

Item Code No. (ITC Code)

Product Description

99999999

NA

 

 

GENERAL INFORMATION

 

No. of Employees :

Information declined by management

 

 

Bankers :

Barclays Bank, London

 

 

Facilities :

SECURED LOANS

31.03.2013

(Rs. In Millions)

31.03.2012

(Rs. In Millions)

LONG TERM BORROWINGS

 

 

Term Loans from Banks

 

 

Foreign Currency Loans from Banks ( ECB )

19000.000

26290.000

SHORT TERM BORROWINGS

 

 

Debenture

 

 

1,160,12% Redeemable Non Convertible Debentures of Rs. 10,00,000 each

870.000

0.000

Total

19870.000

26290.000

 

NOTE

 

LONG TERM BORROWINGS

 

The above mentioned Foreign Currency loans ("the Secured Loans") were secured by first pari passu charge on the whole of the movable plant and machinery, including (without limitation) tower assets and optic fibre cables if any (whether attached or otherwise), capital work in progress ( pertaining to movable fixed assets) both present and future including all the rights, titles, interest, benefits, claims and demands in respect of all insurance contracts relating thereto of the borrower group; comprising of the Company, Reliance Communications Limited, (RCOM) and its subsidiary companies namely; Reliance Telecom Limited (RTL) and Reliance Communications Infrastructure Limited (RCIL) in favour of the Security Trustee for the benefit of the Lenders.

 

 

SHORT TERM BORROWINGS

 

Non Convertible Debentures are secured by first pari passu charge on Fixed Assets of Borrower Group, including claims and demands in respect of all insurance, contracts relating there to.The Company is in the process of creating such security.

 

Banking Relations :

--

 

 

Financial Institution :

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

 

 

Auditors :

 

Name :

Chaturvedi and Shah

Chartered Accountants

Address :

912-913, Tulsiani Chambers, 212 Nariman Point, Mumbai – 400021, Maharashtra, India

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

AAAFC0662N

 

 

Name :

BSR and Company

Chartered Accountants

Address :

Mumbai, Maharashtra, India

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

AAAFB9852F

 

 

Holding company:

Reliance Communications Infrastructure Limited

U64203MH1997PLC166329

 

 

Ultimate Holding company:

Reliance Communications Limited

CIN No.: L45309MH2004PLC147531

 

 

Subsidiary company:

·         Netizen Rajasthan Limited

CIN No.: U45400MH2000PLC128387

 

Reliance Telecom Limited

CIN No.: U32100MH1994PLC162841

 

Reliance Infocomm Infrastructure Private Limited

CIN No.: U45300MH1993PTC173775

 

Reliance Globalcom BV

 

 

Fellow Subsidiary company:

·         Reliance Webstore Limited

CIN No.: U72900MH2000PLC128101

 

Reliance IDC Limited (Formerly known as Reliance Communications Investment and Leasing Limited)

 

Kerela Communication Network Private Limited (w.e.f. March 21, 2013)

 

M P Network Private Limited (w.e.f. March 21, 2013)

 

Reliance big TV Limited

CIN No.: U45203MH2005PLC153294

 

Reliance Tech Services Private Limited

CIN No.: U72900MH2007PTC172690

 

Reliance Telecom Infrastructure (Cyprus) Holdings Limited.

 

 

CAPITAL STRUCTURE

 

As on 31.03.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

7500000000

Equity Shares

Rs.10/- Each

Rs.75000.000 Millions

500000000

Preference Shares

Rs.10/- Each

Rs.5000.000 Millions

 

Total

 

Rs.80000.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

2793141868

Equity Shares

Rs.10/- Each

Rs.27930.000 Millions

40000000

Preference Shares

Rs.10/- Each

Rs.400.000 Millions

 

Total

 

 

Rs.28330.000 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

28330.000

28330.000

28330.000

(b) Reserves & Surplus

52910.000

54340.000

44130.000

(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)

81240.000

82670.000

72460.000

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

52770.000

60060.000

64240.000

(b) Deferred tax liabilities (Net)

13720.000

10180.000

3670.000

(c) Other long term liabilities

10550.000

6890.000

0.000

(d) long-term provisions

0.000

0.000

0.000

Total Non-current Liabilities (3)

77040.000

77130.0000

67910.000

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

26410.000

37840.000

45100.000

(b) Trade payables

6780.000

3230.000

4320.000

(c) Other current liabilities

12810.000

21090.000

15390.000

(d) Short-term provisions

0.000

0.000

0.000

Total Current Liabilities (4)

46000.000

62160.000

64810.000

 

 

 

 

TOTAL

204280.000

221960.000

205180.000

 

 

 

 

II.      ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

115970.000

125860.000

109740.000

(ii) Intangible Assets

150.000

170.000

150.000

(iii) Capital work-in-progress

3000.000

7480.000

24100.000

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

0.000

0.000

10000.000

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

3050.000

3200.000

3090.000

(e) Other Non-current assets

45300.000

44980.000

33320.000

Total Non-Current Assets

167470.000

181690.000

180400.000

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

230.000

520.000

280.000

(c) Trade receivables

6210.000

1030.000

4930.000

(d) Cash and cash equivalents

90.000

40.000

780.000

(e) Short-term loans and advances

19470.000

38670.000

18750.000

(f) Other current assets

10810.000

10.000

40.000

Total Current Assets

36810.000

40270.000

24780.000

 

 

 

 

TOTAL

204280.000

221960.000

205180.000

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2013

 

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Income

70610.000

73170.000

66580.000

 

 

Other Income

110.000

2700.000

310.000

 

 

TOTAL                                     (A)

70720.000

75870.000

66890.000

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of materials consumed

35100.000

37490.000

21030.000

 

 

Employee benefit expense

980.000

670.000

870.000

 

 

Other expenses

1630.000

870.000

400.000

 

 

TOTAL                                     (B)

37710.000

39030.000

22300.000

 

 

 

 

 

Less

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

33010.000

36840.000

44590.000

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

10990.000

12280.000

10920.000

 

 

 

 

 

 

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

22020.000

24560.000

33670.000

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

14010.000

17750.000

22470.000

 

 

 

 

 

 

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

8010.000

6810.000

11200.000

 

 

 

 

 

Less

TAX                                                                  (H)

0.000

0.000

2940.000

 

 

 

 

 

 

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

8010.000

6810.000

8260.000

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

24190.000

17380.000

29120.000

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

15000.000

0.000

20000.000

 

 

Transferred to Debenture Redemption Reserve

220.000

0.000

0.000

 

BALANCE CARRIED TO THE B/S

16980.000

24190.000

17380.000

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Capital Goods

30.000

50.000

40.000

 

TOTAL IMPORTS

30.000

50.000

40.000

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

2.87

2.44

2.96

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)

11.33
8.98

12.35

 

 

 
 

 

Net Profit Margin

(PBT/Sales)

(%)

11.34
9.31

16.82

 

 

 
 

 

Return on Total Assets

(PBT/Total Assets}

(%)

3.98
3.18

6.55

 

 

 
 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.10
0.08

0.15

 

 

 
 

 

Debt Equity Ratio

(Total Debt/Networth)

 

0.97
1.18

1.51

 

 

 
 

 

Current Ratio

(Current Asset/Current Liability)

 

0.80
0.65

0.38

 

 

LOCAL AGENCY FURTHER INFORMATION

 

CURRENT MATURITIES OF LONG TERM DEBTS

 

Particulars

31.03.2013

(Rs. In Millions)

31.03.2012

(Rs. In Millions)

31.03.2011

(Rs. In Millions)

 

 

 

 

Foreign Currency Loan from Bank (Secured)

9050.000

8480.000

7430.000

 

 

 

 

 

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

Yes

23]

Banking Details

Yes

24]

Banking facility details

Yes

25]

Conduct of the banking account

-----

26]

Buyer visit details

-----

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

Yes

30]

Major Shareholders, if available

Yes

31]

Date of Birth of Proprietor/Partner/Director, if available

Yes

32]

PAN of Proprietor/Partner/Director, if available

Yes

33]

Voter ID No of Proprietor/Partner/Director, if available

No

34]

External Agency Rating, if available

Yes

 

LITIGATION DETAILS

 

 

HIGH COURT OF BOMBAY

 

CASE DETAILS

BENCH: BOMBAY

Lodging No: CAL/12/2014    Filing Date: 09/01/2014    

Petitioner: IIC POND VIEW R TOWER LTD. AND 8 ORS.       Respondent: RELIANCE INFRATEL LIMITED -

Petn. Adv : AZB AND PARTNERS (14127)

District: OUTSIDE MAHARASHTRA

Bench: SINGLE

Status: Pre-Admission                                                         Category: COMPANY APPLN. U/SEC 78,100 to 105

Last Date: 05/02/2014                                                          Stage:

Last Coram: HON’BLE SHRI JUSTICE G.S. PATEL

Act: Companies Act & Rules 1956                  UNDER SECTION: 78, 100 TO 104

 

 

INDEX OF CHARGES

 

S.NO.

CHARGE ID

DATE OF CHARGE CREATION/MODIFICATION

CHARGE AMOUNT SECURED

CHARGE HOLDER

ADDRESS

SERVICE REQUEST NUMBER (SRN)

1

10475368

05/02/2014

1,500,000,000.00

AXIS TRUSTEE SERVICES LIMITED

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

B95404281

2

10475348

05/02/2014

2,500,000,000.00

AXIS TRUSTEE SERVICES LIMITED

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

B95398251

3

10475378

05/02/2014

2,500,000,000.00

AXIS TRUSTEE SERVICES LIMITED

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

B95407631

4

10465441

17/12/2013

3,000,000,000.00

AXIS TRUSTEE SERVICES LIMITED

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

B91662445

5

10465468

12/12/2013

1,200,000,000.00

AXIS TRUSTEE SERVICES LIMITED

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

B91324947

6

10464619

12/12/2013

48,300,000,000.00

AXIS TRUSTEE SERVICES LIMITED

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

B91312843

7

10460116

20/11/2013

2,000,000,000.00

AXIS TRUSTEE SERVICES LIMITED

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

B89497838

8

10460125

20/11/2013

10,000,000,000.00

AXIS TRUSTEE SERVICES LIMITED

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

B89500482

9

10447897

16/09/2013

2,500,000,000.00

AXIS TRUSTEE SERVICES LIMITED

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

B84473180

10

10440066

05/08/2013

2,500,000,000.00

AXIS TRUSTEE SERVICES LIMITED

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

B80949605

11

10413226

26/03/2013

5,000,000,000.00

AXIS TRUSTEE SERVICES LIMITED

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

B71274492

12

10400013

28/01/2013

15,000,000,000.00

AXIS TRUSTEE SERVICES LIMITED

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

B66716739

13

10398822

22/01/2013

3,000,000,000.00

AXIS TRUSTEE SERVICES LIMITED

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

B66416090

14

10396465

11/01/2013

3,250,000,000.00

AXIS TRUSTEE SERVICES LIMITED

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

B65716219

15

10396456

11/01/2013

5,000,000,000.00

AXIS TRUSTEE SERVICES LIMITED

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

B65714701

16

10387877

27/11/2012

10,000,000,000.00

AXIS TRUSTEE SERVICES LIMITED

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

B62520978

17

10380655

16/10/2012

3,000,000,000.00

AXIS TRUSTEE SERVICES LIMITED

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

B59731224

18

10350292

26/04/2012

5,000,000,000.00

AXIS TRUSTEE SERVICES LIMITED

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

B37747722

19

10350235

26/04/2012

18,000,000,000.00

AXIS TRUSTEE SERVICES LIMITED

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

B37749520

20

10343041

26/03/2012

3,000,000,000.00

AXIS TRUSTEE SERVICES LIMITED

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

B35401835

21

10336710

22/02/2012

47,185,200,000.00

AXIS TRUSTEE SERVICES LIMITED

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

B32610362

22

10293067

30/06/2011

200,000,000.00

AXIS TRUSTEE SERVICES LIMITED

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

B15307903

23

10293038

30/06/2011

27,076,000,000.00

AXIS TRUSTEE SERVICES LIMITED

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

B15299290

24

10269387

09/03/2011

86,850,000,000.00

AXIS TRUSTEE SERVICES LIMITED

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

B07382195

25

10268369

04/03/2011

204,208,617,724.50

AXIS TRUSTEE SERVICES LIMITED

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

B07055585

26

10177585

04/03/2011 *

30,000,000,000.00

AXIS TRUSTEE SERVICES LIMITED

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

B07054976

 

* Date of charge modification

 

 

UNSECURED LOANS

 

PARTICULAR

31.03.2013

(Rs. In Millions)

31.03.2012

(Rs. In Millions)

LONG TERM BORROWINGS

 

 

From Others

 

 

Loan from Holding Company

6580.000

6580.000

Loan from Ultimate Holding Company

27190.00

27190.000

 

 

 

SHORT TERM BORROWINGS

 

 

Loans Repayable on Demand

 

 

Loan From Holding Company

24930.000

27260.000

Loans and Advances from Related Party

 

 

Loan From Fellow Subsidiary

0.000

10000.000

Other Loans

 

 

Foreign Currency Loans from Banks

110.000

580.000

Commercial Papers

500.000

0.000

Total

59310.000

71610.000

 

 

CHANGE OF ADDRESS

 

The registered office of the company has been shifted from E-Block, D Ambani Knod Cityopp Koparkhairane Railway Station, Thane Belapur Road, Navi Mumbai - 400709, Maharashtra, India to the present address w.e.f 11.10.2006.

 

 

BUSINESS OPERATIONS

 

The Company has sixth year of full operations. During the year, the total Income has been decreased by 6.79% to Rs.70720.000 Millions against Rs.75870.000 Millions in previous year. The Profit After Tax has increased by 17% to Rs.8010.000 Millions against Rs.6810.000 Millions in previous year.

 

The Company is a leading passive telecommunication infrastructure provider in India, based on the number of telecommunication towers that it owns. The Company builds, owns and operates telecommunication towers and related assets at designated sites and provides the passive infrastructure assets on a shared basis to wireless telecom and other service providers under long term contracts.

 

The emergence of new technologies will be the key driver for the Company. All the existing towers of the Company are designed to handle upto 4 tenants with minor utility upgrade without any further capital expenditure and upto 7 tenants with relatively minimal incremental capex. The Company’s towers have the capacity of over 2,00,000 slots. The Company also owns 1,90,000 route kilometres optical fibre network in India, providing a more economical and better quality linking for tenants compared to microwave. The Company offers extensive and diverse portfolio of well-positioned assets and their wide and expanding portfolio of tower sites positions the Company to be able to address the needs of national,  regional, local and emerging wireless telecom service providers in India.

 

 

Schemes of Arrangement and Amalgamation of earlier years

 

The Company, during previous years undertook various Schemes so as to align the interest of the shareholders. Accordingly, pursuant to Schemes of Amalgamation and Arrangement ('the Schemes") under Sections 391 to 394 of the Companies Act, 1956 approved by the Hon'ble High Court of respective Judicature, the Company, during the respective years, recorded all necessary accounting effects, along with requisite disclosure in the Notes on Account, in accordance with the provisions of the said Schemes. The cumulative effects of the Schemes in case of Equity Share Capital of the company have been disclosed below the respective Notes on the Accounts. Reserves and Surplus, pursuant to the said Schemes, include:

 

(i) General Reserve I of Rs. 1910.000 Millions being unadjusted balance, on fair valuation of assets pursuant to the Scheme of Arrangement for transfer of Passive Infrastructure into the Company

 

(ii) During the year, Deferred Tax Liabilities of Rs. 3540.000 Millions (Previous year Rs. 6510.000 Millions ) has been provided by the Company and adjusted by withdrawing an equivalent amount from General Reserve - II pursuant to the Scheme of Amalgamation between the Company and Reliance Global IDC Limited ( RGIDCL).

 

 

Scheme of Amalgamation

 

During the previous year, pursuant to the Scheme of Amalgamation ("the Scheme") under Section 391 to 394 of the Companies Act, 1956 sanctioned by the Hon’ble High Court of Bombay vide Order dated April 20, 2012, with an Appointed date being March 1, 2012, Netizen Rajasthan Limited (NRL or ?the Transferor Company), a Wholly Owned Subsidiary of the Company, has been amalgamated into the Company and ceased to be subsidiary of the Company.

 

Upon the Scheme becoming effective:-

 

i) All the assets and liabilities as appearing in the books of NRL as on the Appointed Date had been recorded in the books of the Company at their respective book values and inter-company balances had been cancelled.

 

ii) Investment of Rs. 10000.000 Millions in Preference Shares and Rs. 5,00,000 in Equity Shares of NRL had been written off by the Company to its Statement of Profit and Loss and adjusted by withdrawing an equivalent amount from General Reserve I.

 

iii) Excess of assets over liabilities of Rs. 17930.000 Millions has been credited to Capital Reserve by the Company.

 

 

CONTINGENT LIABILITIES:

 

PARTICULARS

31.03.2013

(Rs. In Millions)

31.03.2012

(Rs. In Millions)

Disputed Liabilities in tower construction pending adjudication

60.000

80.000

Disputed Liability for Entry Tax,VAT / CST and Service Tax *

4280.000

250.000

Bank Guarantee

50.000

60.000

NOTE:

 

* The Company has deposited Rs. 100.000 Millions (Previous Year Rs. 100.000 Millions) under protest with the Entry Tax authorities and Rs. 4.734 Millions (Previous Year Rs. 0.400 Million) with VAT / CST authority against the demand. Deposit amount is included in Loans and Advances.

 

 

FIXED ASSETS

 

v                  Tangible Assets

Freeehold Land

Buildings

Plant and Machinery

Vehicle

 

v                 Intangible Assets

Indefeasible Right to Use

 


 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

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

 

1]         INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

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

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                              None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

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

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

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

 

8]         Affiliation with Government :

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

 

9]         Compensation Package :

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

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

CORPORATE GOVERNANCE

 

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

 

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

 

 

CONTRAVENTION

 

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

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.50

UK Pound

1

Rs.101.92

Euro

1

Rs.84.50

 

 

INFORMATION DETAILS

 

Information Gathered by :

PDT

 

 

Report Prepared by :

MRI

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

7

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

6

--RESERVES

1~10

6

--CREDIT LINES

1~10

5

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

YES

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

54

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 


 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

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

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

 

--

 

 

 

 

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

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