MIRA INFORM REPORT
|
Report Date : |
30.06.2014 |
IDENTIFICATION DETAILS
|
Name : |
TATA TELESERVICES ( |
|
|
|
|
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 : |
India |
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|
|
|
Financials (as
on) : |
31.03.2013 |
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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.18972.000 Millions |
|
|
|
|
CIN No.: [Company
Identification No.] |
L64200MH1995PLC086354 |
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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 |
|
|
|
|
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 Japan backed by regular and
timely equity infusion by the TATA Group reflecting the groups long term
commitment to its telecom business. 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.
ECGC Country Risk Classification List – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
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
N E W S
The economy grew 4.7
%in 2013/14, marking a second straight year of sub-5 % growth – the worst slowdown
in more than a quarter of a century. The data was below an official estimate of
4.9 % annual growth and compared with 4.5 % in the last fiscal year. However,
the current account deficit narrowed sharply to $ 32.4 billion at 1.7 % of
gross domestic product, in 2013/14 from a record high of $ 98.8 billion or 4.7
%, the year before.A sharp fall in gold imports due to restrictions on overseas
purchases and muted import of capital goods helped shrink the current account
deficit.
Online retailer
Flipkart has acquired fashion portal Myntra as it prepares to battle with the
rapidly expanding India arm of the global e-commerce giant Amazon. The company
raised $ 210 million from Russian Investment firm DST Global which has also
invested in companies like Facebook, Twitter and Alibaba Group.
General Motors will
start exporting vehicles from its Talegaon plant near Pune in the second half
of 2014. GM was one of the few global carmakers that was using its India plant
only for the domestic market.
Google has overtaken
Apple as the world’s top brand in terms of value, according to global market
research agency Millward Brown. Google’s brand value shot up 40 % in a year to
$ 158.84 billion. The top 10 of the 100 slots were dominated by US companies.
Infosys lost another
heavy weight when B G Srinivas, a board member put in his papers. He is the
third CEO-hopeful to quit after Chairman N R Narayana Murthy’s return to the
company – Ashok Vemuri and V Balakrishnan being the other two.While Vemuri went
on to lead IGate, Balakrishnan joined politics.
Naresh Goyal –
promoted Jet Airways posted biggest quarterly loss – Rs 2153.37 crore – in the
three months ended March 31, mainly because it has been offering discounts to
passengers to fill planes.
William S Pinckney –
Chairman and CEO of Amway India was arrested by the Andhra Pradesh Police in
connection with a complaint against the direct selling firm. This is the second
time that he has been taken into custody. A year, ago the Kerala Police had
arrested Pinckney and two company directors on charges of financial
irregularities.
China has told its
state-owned enterprises to sever links with American consulting firms after the
United States charged five Chinese military officers wih hacking US companies.
China’s action which targets consultancies like McKinsey & Co. and the
Boston Consulting Group, sterns from fears that the first are providing trade
secrets to the US governments.
India has emerged as
a country with some of the highest unregistered businesses in the world.
Indonesia has the maximum number of shadow businesses, says a study of 68
countries by Imperial College Business School in London.
Pfizer has abandoned
its attempt to buy AstraZeneca for nearly $ 118 billion after the latter
refused an offer of 55 pounds a share.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long Term Bank Facilities = A |
|
Rating Explanation |
Adequate degree of safety and low credit
risk. |
|
Date |
25.04.2013 |
|
Rating Agency Name |
CARE |
|
Rating |
Short Term Bank Facilities = A1 |
|
Rating Explanation |
Very strong degree of safety and lowest
credit risk. |
|
Date |
25.04.2013 |
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 DENIED
Management Non-Cooperative (Tel No.: 91-22-66615152)
LOCATIONS
|
Registered Office : |
Voltas Premises, T. B. Kadam Marg, Chinchpokli, Mumbai –
400033, |
|
Tel. No.: |
91-22-66615445/ 66615152 |
|
Fax No.: |
91-22-66671049/ 66605516/ 5517 |
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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, |
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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 |
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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 31.03.2013
|
Name : |
Mr. Kishor A Chaukar |
|
Designation : |
Chairman |
|
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. |
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|
|
|
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 |
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Date of Birth/ Age : |
25.03.1939 |
|
Date of Appointment : |
06.12.2002 |
|
Qualification : |
M. E. (Power Engineering) |
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|
Name : |
Mr. S Ramadoral |
|
Designation : |
Director |
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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.
Madhav Joshi |
|
Designation : |
Chief
Legal Officer and Company Secretary |
|
|
|
|
Name : |
Mr.
Hiten Koradia |
|
Designation : |
Manager
– Investor Relations |
SHAREHOLDING PATTERN
As on 31.03.2014
|
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 |
|
|
|
|
|
|
|
|
1995045 |
0.10 |
|
|
44199 |
0.00 |
|
|
935000 |
0.05 |
|
|
10624653 |
0.54 |
|
|
5313 |
0.00 |
|
|
4180 |
0.00 |
|
|
1133 |
0.00 |
|
|
13604210 |
0.70 |
|
|
|
|
|
|
49430176 |
2.53 |
|
|
|
|
|
|
279662083 |
14.31 |
|
|
136378812 |
6.98 |
|
|
11637138 |
0.60 |
|
|
233100 |
0.01 |
|
|
11391986 |
0.58 |
|
|
8426 |
0.00 |
|
|
3626 |
0.00 |
|
|
477108209 |
24.41 |
|
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-%20274192_MIRA%2030-Jun-2014_files/image020.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. |
GENERAL INFORMATION
|
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
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
Address : |
12, |
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|
|
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Investing Parties :
|
|
|
|
|
|
Fellow Subsidiaries
: |
|
CAPITAL STRUCTURE
As on 31.03.2013
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 |
|
|
|
|
|
|
1897196854 |
Equity Shares |
Rs.10/- each |
Rs.18972.000
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 |
- |
- |
|
Decrease during the year |
- |
- |
|
Equity shares outstanding at the end of the year |
1897196854 |
18972.000 |
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 |
393065478 |
|
The Tata Power Company Limited |
Subsidiaries of Ultimate Holding Company |
714317891 |
|
Tata Sons Limited |
Associates of Ultimate Holding Company |
137263174 |
|
NTT Docomo Inc. |
Subsidiaries of Ultimate Holding Company |
17850 |
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 |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
18,972.000 |
18,972.000 |
18,972.000 |
|
(b) Reserves & Surplus |
(36,899.500) |
(30,311.800) |
(25,136.300) |
|
(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) |
(17,927.500) |
(11,339.800) |
(6,164.300) |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
48,970.000 |
45,956.900 |
17,275.000 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long term
liabilities |
668.600 |
2,356.500 |
4,043.400 |
|
(d) long-term provisions |
51.500 |
45.200 |
39.900 |
|
Total Non-current
Liabilities (3) |
49,690.100 |
48,358.600 |
21,358.300 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
10,719.100 |
7,038.000 |
27,960.200 |
|
(b) Trade
payables |
7,891.900 |
7,665.800 |
7,572.100 |
|
(c) Other
current liabilities |
7,598.200 |
7,568.300 |
5,874.900 |
|
(d) Short-term
provisions |
2,232.000 |
1,699.500 |
1,894.900 |
|
Total Current
Liabilities (4) |
28,441.200 |
23,971.600 |
43,302.100 |
|
|
|
|
|
|
TOTAL |
60,203.800 |
60,990.400 |
58,496.100 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
32,461.800 |
32,957.000 |
29,712.400 |
|
(ii)
Intangible Assets |
15,435.500 |
16,905.500 |
18,315.900 |
|
(iii)
Capital work-in-progress |
267.200 |
643.900 |
1,282.300 |
|
(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 |
2,054.600 |
2,087.500 |
497.800 |
|
(e) Other
Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current
Assets |
50,219.100 |
52,593.900 |
49,808.400 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
503.500 |
0.000 |
0.000 |
|
(b)
Inventories |
31.900 |
38.100 |
37.800 |
|
(c) Trade
receivables |
2,976.700 |
3,047.600 |
2,366.300 |
|
(d) Cash
and cash equivalents |
863.100 |
1,373.900 |
746.800 |
|
(e) Short-term
loans and advances |
3,581.700 |
2,466.600 |
4,175.000 |
|
(f) Other
current assets |
2,027.800 |
1,470.300 |
1,361.800 |
|
Total
Current Assets |
9,984.700 |
8,396.500 |
8,687.700 |
|
|
|
|
|
|
TOTAL |
60,203.800 |
60,990.400 |
58,496.100 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
26,345.400 |
24,884.400 |
22,487.400 |
|
|
|
Other Income |
510.100 |
190.300 |
672.000 |
|
|
|
|
0.000 |
0.000 |
8,349.300 |
|
|
|
TOTAL (A) |
26,855.500 |
25,074.700 |
31,508.700 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Office Expenses |
1,598.100 |
1,744.600 |
1,656.500 |
|
|
|
Administrative Expenses |
19,295.700 |
17,709.000 |
16,528.700 |
|
|
|
Advertising Expenses |
955.400 |
132.800 |
1,856.000 |
|
|
|
TOTAL (B) |
21,849.200 |
19,586.400 |
20,041.200 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
5,006.300 |
5,488.300 |
11,467.500 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
5,643.500 |
5,229.800 |
3,461.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(637.200) |
258.500 |
8,006.000 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
5,950.500 |
5,434.000 |
7,507.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
(6,587.700) |
(5,175.500) |
499.000 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
(6,587.700) |
(5,175.500) |
499.000 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(36143.400) |
(30967.900) |
(31466.900) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(42731.100) |
(36143.400) |
(30967.900) |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Capital Goods |
426.600 |
1129.800 |
1934.200 |
|
|
TOTAL IMPORTS |
426.600 |
1129.800 |
1934.200 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(3.47) |
(2.73) |
0.26 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
(24.53) |
(20.64) |
1.58 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(25.01) |
(20.80) |
2.22 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(10.99) |
(8.58) |
0.87 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.37 |
0.46 |
(0.08) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
(3.33) |
(4.67) |
(7.34) |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.35 |
0.35 |
0.20 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
Rs.
In Millions |
Rs.
In Millions |
Rs.
In Millions |
|
Share Capital |
18972.000 |
18972.000 |
18972.000 |
|
Reserves & Surplus |
(25136.300) |
(30311.800) |
(36899.500) |
|
Net
worth |
(6164.300) |
(11339.800) |
(17927.500) |
|
|
|
|
|
|
long-term borrowings |
17275.000 |
45956.900 |
48970.000 |
|
Short term borrowings |
27960.200 |
7038.000 |
10719.100 |
|
Total
borrowings |
45235.200 |
52994.900 |
59689.100 |
|
Debt/Equity
ratio |
(7.338) |
(4.673) |
(3.329) |
%20LIMITED%20-%20274192_MIRA%2030-Jun-2014_files/image022.gif)
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
Rs.
In Millions |
Rs.
In Millions |
Rs.
In Millions |
|
Sales |
22,487.400 |
24,884.400 |
26,345.400 |
|
|
|
10.659 |
5.871 |
%20LIMITED%20-%20274192_MIRA%2030-Jun-2014_files/image024.gif)
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
Rs.
In Millions |
Rs.
In Millions |
Rs.
In Millions |
|
Sales
|
22,487.400 |
24,884.400 |
26,345.400 |
|
Profit |
499.000 |
(5,175.500) |
(6,587.700) |
|
|
2.22% |
(20.80%) |
(25.01%) |
%20LIMITED%20-%20274192_MIRA%2030-Jun-2014_files/image026.gif)
LOCAL AGENCY FURTHER INFORMATION
CURRENT MATURITIES
OF LONG TERM DEBT DETAILS
Rs.
In Millions
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
Current maturities of long term debt |
2781.500 |
1485.500 |
NA |
|
Total |
2781.500 |
1485.500 |
NA |
|
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 |
31.03.2013 Rs.
In Millions |
31.03.2012 Rs.
In Millions |
|
Short Term
Borrowings |
|
|
|
Short Term Loans |
4150.000 |
3250.000 |
|
Inter corporate deposits |
400.000 |
0.000 |
|
Total |
4550.000 |
3250.000 |
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 registered an income growth of 7%
at Rs.26855.500 Millions, compared to Rs.25074.700 Millions in the previous
year. Operating expenses increased by 7% mainly due to an increase in
interconnect cost and network operation cost.
The Company is an integrated player across
technologies viz. wireline, CDMA, GSM and 3G (in Rest of Maharashtra circle),
products (i.e., voice, data and other enterprise services) and customer
segments (Enterprise, SME and Retail) covering over 80% of the population
through a network of Base Transceiver Station (“BTS”) and optical fibre in
Mumbai and Maharashtra. Increase in data penetration and availability of data
enabled devices are expected to drive the growth in Telecom revenues in future.
The Company is well positioned to leverage this opportunity. 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 (EBITDA – financing costs) over the past few years except in the
current year.
PRODUCTS AND SERVICES
The Company holds two Unified Access (basic +
cellular) Service Licences (“UASL”), one for Mumbai Metro and the other for
Maharashtra circle i.e., Rest of Maharashtra and Goa. The Company is a Category
a (National) ISP Licensee and offers a broad range of internet-related services
including Digital Subscriber Lines (“DSL”), leased lines and dial-up internet
access.
The portfolio of services provided by the
Company includes Data and Internet connectivity across wireline and wireless
technologies, fixed line and Mobile voice services, Managed services, Verticals
based mobile applications and Cloud services.
The Company's subscriber base (wireless +
wireline) was 10.53 million as on March 31, 2013.
Building on the positive momentum in GSM, this
year the Company has started to focus on high-value customers
(“HVCs”) as a category. Around the central
theme of “refreshingly
different, surprisingly accessible”, a series of product
and services targeted at HVCs have been launched during the year. Various other
products were designed to deliver better value for money such as Roam-free and
Unlimited On-net plan, 899 Postpay plan, 250 Smart life plan offering dual
benefit of voice and 3G/2G data to prepay customers.
The Company continues to be successful in its
High Speed Internet Access (“HSIA”) services under the Photon brand. Photon
services have continued to gather both industry and consumer endorsements. Tata
DOCOMO Photon was voted Product of the Year for the third consecutive year by
Product of the Year (India) Pvt. Ltd. This award is affirmation of the
leadership in the market - both in products and amongst users. Being an
innovative brand, the Company continuously strive to make products more
relevant to the needs of the consumers. By offering the consistent and reliable
internet speeds on the network, the Company have been able to retain the trust
of data users. One important experience innovation this year was the
introduction of single-click access to account information from the dialer and
landing page.
To increase its reach to customers, the Company
also introduced the “Demo at Doorstep” offer, under which data services are
made available to the customers with just a phone call.
In accordance with market dynamics, the Company
also revised its base rate tariff. This would further help in improving revenue
per minute & Average Revenue per User (“ARPU”).
This year, the Company introduced several
relevant Value Added Services (“VAS”) catering to the VAS-hungry youth segment.
Music, the largest and most popular VAS service, saw the introduction of a new portal
'Legends of Music' celebrating the
legacy of past greats. 'Guess a song' and 'CRBT app' have enhanced user
engagement with his music. To maintain lead in the growing data segment, the
Company introduced “smart-life plans” that bundle data with voice purchases,
did tie-ups with leading handset manufacturers like Nokia and Samsung under the
“Smartpicks” program and initiated direct selling of data packs on internet and
wireless application portal (“WAP”). To promote the consumption of 3G data in
Rest of Maharashtra circle, a slew of Rich Media Services (“RMS”) have been
launched including a customized gaming portal, Gametanium, High Definition
premium games from EA games and the launch of WorldSpace radio on WAP.
The Company provides broadband services through
its fiber optic cable laid across Mumbai region and the Company has entered
into co-build agreement with other operators to expand its network.
The Company has also made significant
investments in products and services specifically for the Enterprise and Small
and Medium Enterprise (SME) business segments. The Company has established
itself firmly in fixed line voice services. In 2012-13, the Company became one
of the first service providers in India to launch “SIP Trunk” services, which
is a scalable and a cost effective medium for voice connectivity, using IP
technology. In another first, the Company launched Xpress VPN - a cost
effective and secure way to connect remote and small offices of an Enterprise
to VPN, using CDMA network.
The service provides ideal connectivity for
ATMs, warehouses etc. In order to leverage the increased penetration of smart
phones & tablets and the strength in wireless Data, the Company is also
focusing on offering vertical based applications on mobile phones and Tablets.
These include Field Force Management, Sales Force Management, Field Data
Capture, Vehicle tracking and management etc.
OUTLOOK
The outlook for the Company is positive despite
regulatory risks in the short term. The telecom sector continues to offer
opportunities, both in voice and data, to the quality operators in the long
run.
Albeit a late entrant, the Company's GSM
business has witnessed rapid growth all of last year 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 partly offset
the decline in the CDMA business, a decline stemming by shrinking CDMA
ecosystem.
While the initial expectations around 3G are
yet to be realized, the changing demographics and consumer behavior in India
hold the promise of a very bright future for high speed mobile broadband
services.
The Company continues to target at chipping
away marketshare from the incumbents and strongly believes that while the growth
story of the years gone by may have flattened, a comparison of teledensities
with comparable regions shows that there still is significant untapped
potential in the Indian mobile market.
The Company has and shall continue to roll out
all necessary measures to realize this potential and stands steadfast in its
resolve to be counted amongst the top 3 operators.
The Company offers its GSM services in 898
Towns and CDMA services in 947 towns. The Company covers vast population
through a network of ~10,000 Base Transceiver Stations and ~14,000 km of
optical fibre in this region and a significant single brand retail presence.
UNAUDITED FINANCIAL RESULTS FOR THE THREE QUARTER AND HALF YEAR ENDED 31ST MARCH 2014
(Rs. In Millions)
|
Particulars |
Quarter Ended ( Unaudited) |
Year Ended ( Unaudited) |
|
|
|
31.03.2014 |
31.12.2013 |
31.03.2014 |
|
1.
Income from operations |
|
|
|
|
a) Net sales/ Income from operation (net of excise duty) |
6660.000 |
6622.600 |
26494.300 |
|
b) Other operating income |
199.400 |
199.000 |
817.500 |
|
Total
income from Operations(net) |
6859.400 |
6821.600 |
27311.800 |
|
2.Expenditure |
|
|
|
|
a. Network operations costs |
1907.800 |
1838.100 |
7076.400 |
|
b. Interconnection and other access costs |
1254.000 |
1345.100 |
5298.800 |
|
c. License fees and spectrum charges |
600.400 |
598.600 |
2436.000 |
|
d. Employees cost |
453.500 |
392.200 |
1726.700 |
|
e. Administration and other expenses (Net) |
640.700 |
879.500 |
3127.100 |
|
f. Marketing and business promotion expenses (Net) |
347.400 |
311.900 |
1384.700 |
|
g. Provision for Contingencies |
342.000 |
260.000 |
994.000 |
|
h. Depreciation / Amortisation (Net) |
1485.800 |
1540.700 |
6093.300 |
|
Total expenses |
7031.600 |
7166.100 |
28137.000 |
|
3. Profit from operations before other income and
financial costs |
(172.200) |
(344.500) |
(825.200) |
|
4. Other income |
362.600 |
284.700 |
874.900 |
|
5. Profit from ordinary activities before finance costs |
190.400 |
(59.800) |
49.700 |
|
6. Finance costs |
1306.500 |
1563.600 |
5650.500 |
|
7. Net profit/(loss) from ordinary activities
after finance costs but before exceptional items |
(1116.100) |
(1563.600) |
(5600.800) |
|
8. Exceptional item |
0.000 |
0.000 |
0.000 |
|
9. Profit from ordinary activities before tax
Expense: |
(1116.100) |
(1563.600) |
(5600.800) |
|
10.Tax expenses |
0.000 |
0.000 |
0.000 |
|
11.Net Profit
/ (Loss) from ordinary activities after tax (9-10) |
(1116.100) |
(1563.600) |
(5600.800) |
|
12.Extraordinary Items (net of tax expense) |
0.000 |
0.000 |
0.000 |
|
13.Net Profit / (Loss) for the period (11 -12) |
(1116.100) |
(1563.600) |
00 |
|
14.Paid-up equity share capital (Nominal value Rs.10/- per share) |
19549.300 |
19549.300 |
19549.300 |
|
15. Reserve excluding
Revaluation Reserves as per balance sheet of previous accounting year |
- |
- |
(43077.600) |
|
16.i) Earnings per share (before extraordinary
items) |
|
|
|
|
(a) Basic |
(0.57) |
(0.80) |
(2.86) |
|
(b)diluted |
(0.57) |
(0.80) |
(2.86) |
|
ii) Earnings per share (after extraordinary items) |
|
|
|
|
(a) Basic |
(0.57) |
(0.80) |
(2.86) |
|
(b)diluted |
(0.57) |
(0.80) |
(2.86) |
|
Particulars |
Quarter Ended ( Unaudited) |
Year Ended ( Unaudited) |
|
|
|
31.03.2014 |
31.12.2013 |
31.03.2014 |
|
A. Particulars of shareholding |
|
|
|
|
1. Public Shareholding |
|
|
|
|
- Number of shares |
490712419 |
490712419 |
490712419 |
|
- Percentage of shareholding |
25.10% |
25.10% |
25.10% |
|
2. Promoters and Promoters group Shareholding- |
|
|
|
|
a) Pledged /Encumbered |
|
|
|
|
Number of shares |
508281209 |
508281209 |
508281209 |
|
Percentage of shares (as a % of total shareholding of the
promoter and promoter group) |
34.71% |
34.71% |
34.71% |
|
Percentage of shares (as a % of total share capital of the
company) |
26.00% |
26.00% |
26.00% |
|
|
|
|
|
|
b) Non Encumbered |
|
|
|
|
Number of shares |
955934099 |
955934099 |
955934099 |
|
Percentage of shares (as a % of total shareholding of the
promoter and promoter group) |
65.29% |
65.29% |
65.29% |
|
Percentage of shares (as a % of total share capital of the
company) |
48.90% |
48.90% |
48.90% |
|
|
|
|
|
|
B.
Investor Complaints |
|
||
|
Pending at the beginning of the quarter |
1 |
||
|
Receiving during the quarter |
34 |
||
|
Disposed of during the quarter |
34 |
||
|
Remaining unreserved at the end of the quarter |
1 |
||
STANDALONE
STATEMENT OF ASSTES AND LIABILITIES AS ON 31.03.2014
Rs. In Millions
|
SOURCES OF FUNDS |
|
|
31.03.2014 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
|
19,549.300 |
|
(b) Reserves & Surplus |
|
|
(43,077.600) |
|
(c) Money received against
share warrants |
|
|
0.000 |
|
|
|
|
|
|
(2) Share Application money
pending allotment |
|
|
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
|
|
(23,528.300) |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
|
|
47,137.900 |
|
(b) Deferred tax liabilities
(Net) |
|
|
0.000 |
|
(c) Other long term
liabilities |
|
|
226.300 |
|
(d) long-term provisions |
|
|
42.200 |
|
Total
Non-current Liabilities (3) |
|
|
47,406.400 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
|
|
14,224.300 |
|
(b) Trade payables |
|
|
6,781.400 |
|
(c) Other current liabilities |
|
|
6,979.200 |
|
(d) Short-term provisions |
|
|
4,747.200 |
|
Total
Current Liabilities (4) |
|
|
32,732.100 |
|
|
|
|
|
|
TOTAL |
|
|
56,610.200 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
45,555.100 |
|
(b) Non-current Investments |
|
|
0.000 |
|
(c) Deferred tax assets (net) |
|
|
0.000 |
|
(d) Long-term Loan and Advances |
|
|
5,597.600 |
|
(e) Other Non-current assets |
|
|
0.000 |
|
Total
Non-Current Assets |
|
|
51,152.700 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
|
|
0.000 |
|
(b) Inventories |
|
|
44.400 |
|
(c) Trade receivables |
|
|
2,523.100 |
|
(d) Cash and cash equivalents |
|
|
216.500 |
|
(e) Short-term loans and
advances |
|
|
1,438.300 |
|
(f) Other current assets |
|
|
1,235.200 |
|
Total
Current Assets |
|
|
5,457.500 |
|
|
|
|
|
|
TOTAL |
|
|
56,610.200 |
Notes:
1. Various demands and notices that have been received from the Department of Telecommunications (DoT) related to the Company’s operations have been disputed by the Company at the appropriate forums such as The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) and the Courts at different levels, including the High Court and the Supreme Court.
2. Provision for contingencies is primarily towards the outstanding claims / litigations against the Company by DoT and other parties.
3. No provision for income tax is required to be made as on the basis of the Company’s computations, as there is no taxable income.
4. Previous period / year figures have been regrouped / reclassified wherever necessary.
5. The Company is engaged in the business of providing Telecommunication Services under Unified Access License. In the context of Accounting Standard 17 on 'Segment Reporting', the results are considered to constitute a single reportable business segment.
6. The figures of last quarter are the balancing figures between audited figures in respect of the full financial year and the published year to date figures up to the third quarter of the current financial year.
7. The above financial results have been reviewed by the Audit Committee and approved by the Board of Directors of the Company at the respective meetings held on May 15, 2014.
INDEX OF CHARGE:
|
Sr. 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 Ballard Estate, Mumbai, Maharashtra - 400001, India |
B92920867 |
|
2 |
10460711 |
13/11/2013 |
4,000,000,000.00 |
IDBI Trusteeship Services Limited |
Asian Building Ground Floor, 17 R Kamani Marg Ballard Estate, Mumbai, Maharashtra - 400001, India |
B89740765 |
|
3 |
10446465 |
28/08/2013 |
4,246,000,000.00 |
IDBI Trusteeship Services Limited |
Asian Building Ground Floor, 17 R Kamani Marg Ballard Estate, Mumbai, Maharashtra - 400001, India |
B83738583 |
|
4 |
10310340 |
06/12/2013 * |
17,290,000,000.00 |
IDBI Trusteeship Services Limited |
Asian Building Ground Floor, 17 R Kamani Marg Ballard Estate, Mumbai, Maharashtra - 400001, India |
B92348986 |
|
5 |
10239381 |
09/09/2010 |
64,970,000,000.00 |
IDBI Trusteeship Services Limited |
Asian Building Ground Floor, 17 R Kamani Marg Ballard Estate, Mumbai, Maharashtra - 400001, India |
A94420387 |
FIXED ASSETS:
· Leasehold assets
· Land
· Office Premises
· Building
· Plant and Machinery
· Own
· Acquired under
· Finance Lease
· Furniture, Fixture and Office Equipment
· Vehicles
· License
· Computer Software
NEWS:
REVENUE OF TELECOM OPERATORS UP AT RS.606570.000 MILLIONS IN Q4
NEW DELHI: The gross revenue of telecom service companies increased by about 12 per cent to Rs.606566.100 Millions in the last quarter of 2013-14, according to Trai data.
The gross revenue of telecom service providers was Rs.542837.800 Millions in the same period a year ago.
Mobile phone service providers alone reported gross revenue of Rs.584427.900 Millions. The rest came from companies services such as Internet and long-distance calls.
The highest gross revenue was reported by Bharti Airtel at Rs.172260.000 Millions, followed by Vodafone India at Rs.119090.500 Millions, Idea Cellular Rs.82325.000 Millions, BSNL Rs.75643.200 Millions, Reliance Communications Rs.41976.000 Millions, Tata Teleservices Rs.33482.100 Millions, Aircel Rs.30418.300 Millions, MTNL Rs.10520.000 Millions and Uninor Rs.10495.700 Millions.
Videocon Telecom's gross revenue stood at Rs.3784.300 Millions, Sistema Shyam at Rs.3186.600 Millions and Loop Mobile Rs.1219.900 Millions.
The adjusted gross revenue during the January-March quarter, based on which the government gets licence fee and spectrum charges, increased by about 16 per cent to Rs.410113.600 Millions, from Rs.352795.000 Millions in the year-ago period as recorded by the Telecom Regulatory Authority of India.
AGR is calculated after deducting income from non-telecom activities such as rentals and certain charges paid to other telecom operators.
Telecom service providers jointly paid license fees of Rs.30260.000 Millions and spectrum charges of about Rs.14430.000 Millions during the period.
Airtel paid Rs.14445.500 Millions toward both licence fees and spectrum charges. Vodafone contributed about Rs.10497.300 Millions and Idea Cellular Rs.7337.800 Millions.
BSNL paid Rs.5427.200 Millions, RCom Rs.2975.400 Millions, Tata Teleservices Rs.2533.200 Millions and Aircel Rs.2277.600 Millions.
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.250000.000 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-judice.
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.52010.000 Millions, Vodafone Rs.3599 Millions, MTNL Rs.32050.000 Millions.
Idea Cellular Rs.21130.000 Millions (includes Rs.2315.000 Millions of Spice), Aircel Rs.13650.000 Millions (includes Rs.140.000 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.
DOT TO BAR 3G SPECTRUM HOLDERS FROM SHARING AIRWAVES
NEW DELHI: The Department of Telecom may bar operators holding 3G airwaves from sharing the high-speed spectrum.
As per draft rules, "spectrum sharing will not be permitted among licences having 3G spectrum," a DoT source said.
Bharti Airtel, Vodafone, Idea Cellular, Reliance Communications, Tata Teleservices, BSNL, MTNL and Aircel hold 3G spectrum. S-Tel too had acquired 3G spectrum in 2010 but the company has now closed its operations in India.
Companies jointly paid over Rs.677000.000 Millions in 2010 for buying 3G airwaves through the auction route.
T
he DoT has started working on detailed guidelines for spectrum sharing that are expected to address the scarcity of suitable airwaves for providing good quality mobile services.
The Notice Inviting
Application
(NIA), the main document for the next round of spectrum auction starting January 23, mentions that telecom operators who hold liberalise spectrum in frequency bands, 900 Mhz and 1800 Mhz, being put for auction will be able to share spectrum.
As per present rules, telecom operators who have been assigned pan-India spectrum at the old rate of Rs 1,658 Millions are required to pay an additional one-time spectrum fee for liberalising spectrum. No such fee is imposed on telecom companies who have purchased spectrum through auction.
The spectrum sharing rule suggests that companies may be allowed to share airwaves for an initial period of 5 years and extended further after evaluation.
The telecom companies will be allowed to share spectrum in the same service area and the total quantum of spectrum, as a result of the spectrum sharing, shall not exceed the limit prescribed in case of mergers of licences.
The guidelines of mergers and acquisitions have been approved by Cabinet but are in the process of legal vetting before release.
Meanwhile, Bharti Airtel, Vodafone and Idea Cellular have entered in to mutual agreement to use each other 3G spectrum in service areas where they do not hold these airwaves.
This agreement, however, has been termed illegal by the DoT and the matter is at present sub-judice.
MOBILE USER BASE FALLS TO RS.870.500 MILLIONS IN SEPTEMBER
The country's wireless subscriber base fell to Rs.870.500 Millions at the end
of September, registering the first drop in five months, after Reliance
Communications (RComm) deactivated services of over 1.000 Millions
"unprofitable" users.
According to data released by sectoral regulator Telecom Regulatory Authority
of India (Trai), the mobile user base declined 0.70 percent to 870.500 Millions
from 876.700 Millions at the end of August 2013. This was the first time after
April this year that the subscriber base has declined. In April, the user base
fell by Rs.1.000 Millions. Reliance Communications lost 10.400 Millions users
in September. Its subscriber base at the September 2013 stood at 116.200
Millions. As a result of the deactivations, RComm has slipped to fourth
position in the wireless user base in the country with 13.35 percent market
share.
Reliance Communications has deactivated the services of around 10 million
unprofitable, low-end subscribers at the lowest end of the ARPU range, who had
not used their phones for over two months. This is in line with the industry
practice and has no impact on customer experience or (the Company's)
revenues," an RComm spokesperson said in a statement.
"We continue to focus on improving the contribution from profitable
minutes on our network," he added. The overall share of urban wireless
subscribers has declined from 59.98 percent to 59.75 percent whereas share of
rural wireless subscribers has increased from 40.02 percent to 40.25 percent.
The overall wireless teledensity in India has declined to 70.63 percent from
71.21 percent of previous month, Trai said.
The overall telecom user base (including wireline) also declined 0.70 percent to 899.800 Millions at the end of September 2013 from 906.100 Millions at the end of August. "The number of telephone subscribers in India decreased from 906.18 million at the end of August, 2013 to 899.860 million at the end of September 2013, thereby showing a monthly decline of 0.70 percent," Trai said.
The regulator said at the end of September, private operators hold 88.33 percent of the wireless market share (based on subscriber base) where as BSNL and MTNL, the two PSU operators, hold only 11.67 percent market share. In terms of net additions, Idea Cellular added 1.207 Millions users to take its base to 127.200 Millions at the end of September. It is now the third largest telecom player in the country in terms of subscribers with 14.61 percent market share.
Vodafone added 1.205 Millions subscribers during the month and its user base at the end of September stood at 15.55 Millions. Country's largest telecom operator Bharti Airtel added 1.164 Millions users in September to take its base to 193.300 Millions at the end of month. The company has a market share of 22.21 percent in terms of user base.
Aircel added 0.642 Millions users during September to take its user base to 63.200 Millions at the end of the month. State-run BSNL and MTNL lost 74,566 and 0.232 Millions users respectively during the reported period. The respective user base of the PSU players stood at 97.800 Millions and 374.100 Millions.
Tata Teleservices and Sistema Shyam Teleservices also lost 14.300 Millions and 12,690 users respectively. Trai said, in September 2013, 2.290 Millions requests have been made for mobile number portability (MNP). Broadband subscription base inched up to 15.300 Millions in September 2013 from 15.200 Millions in August 2013.
"Total broadband subscriber base has increased from 15.280 million at the end of August 2013 to 15.360 million at the end of September 2013, there by showing a monthly growth of 0.52 percent," Trai said.
The regulator said there are 158 internet service providers (ISPs) which are providing broadband services in the country as on September 30, 2013. "Top five ISPs in terms of market share (based on subscriber base) are: BSNL (9.98 million), Bharti Airtel (1.44 million), MTNL (1.10 million), Hathway (0.37 million) and You Broadband (0.33 million)," Trai added.
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.60.10 |
|
UK Pound |
1 |
Rs.102.40 |
|
Euro |
1 |
Rs.81.88 |
INFORMATION DETAILS
|
Information
Gathered by : |
NYA |
|
|
|
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
VNT |
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.