MIRA
INFORM REPORT
|
Report Date : |
24.03.2014 |
IDENTIFICATION DETAILS
|
Name : |
TATA COMMUNICATIONS LIMITED (w.e.f. February 13, 2008) |
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Formerly Known
As : |
VIDESH SANCHAR NIGAM LIMITED |
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Registered
Office : |
V S B, Mahatma Gandhi Road, Fort, Mumbai – 400001, Maharashtra |
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Country : |
India |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
19.03.1986 |
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Com. Reg. No.: |
11-039266 |
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Capital
Investment / Paid-up Capital : |
Rs. 2850.000 Millions |
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CIN No.: [Company
Identification No.] |
L64200MH1986PLC039266 |
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TAN No.: [Tax Deduction
& Collection Account No.] |
MUMV07840A |
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PAN No.: [Permanent
Account No.] |
AAACV2808C |
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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
: |
Subject is engaged in the business of providing International
Telecommunications Services. |
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No. of Employees
: |
9474 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (76) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
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Maximum Credit Limit : |
USD 300650000 |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed company having fine track
record. The company has achieved a significant growth in its net profitability
during 2013. Financial position seems to be sound. Trade relations are fair. Business is active. Payment terms are
reported as regular and as per commitments. The company can be considered good 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
India’s current account deficit for the fiscal third quarter ended
September 2013 narrowed to $4.2 billion or 0.9 % of the gross domestic product
from $31.9 billion or 6.5 % of GDP a year earlier, thanks to a pick-up in
exports and moderation in gold imports. Manufacturing activity and new orders
in India showed their strongest growth in a year in February. The news comes as
a relief after data showed Asia’s third largest economy grew by a
slower-than-expected 4.7 % annually in the three months through December. The
HSBC Manufacturing Purchasing Managers’ Index which gauges the business
activity of India’s factories but not its’ utilities, rose to 52.5 in February,
its highest in a year from 51.4 in January. Overall new orders for factory
goods which rose to a one-year high of 54.9 contributed to the surge. China has
emerged as India’s biggest trading partner in the current financial year
replacing the United Arab Emirates and pushing it to the third spot.
India-China trade has reached $49.5 billion with a 8.7 % share in India’s total
trade. The US comes second at $46 billion with 8.1 % share during the first
nine months of the current financial year.
The Reserve Bank of India has granted an additional nine months to the
public to exchange currency notes printed before 2005 including Rs 500 and Rs
1,000 denominations, pushing the deadline to January 1, 2015. A day before
dates for the Lok Sabha polls were announced, the government decided to hike
interest rates on fixed deposit schemes offered by post offices up to 0.2 per
cent. The new rates will be effective April, 1. The Supreme Court will resume
hearing on March, 11 Nokia’s appeal against a ruling over transferring
ownership of its local mobile phones plant which is the subject of a tax
dispute to Microsoft Corp.
In the last days of the current Government, another scam has surfaced.
The defence ministry has ordered a probe into Hindustan Aeronautics Limited’s contracts
from Britain’s Rolls-Royce Holdings worth at least $ 1.2 billion. The Central
Bureau of Investigation will look into allegations that over $80 million was
paid in kickbacks in a deal signed in 2011. India has asked Boeing Co. to
find a solution for problems with state-owned Air India’s 787 Dreamliners. The
aircraft has experienced a series of malfunctions since its debut in 2011.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Short Term debt: A1+ |
|
Rating Explanation |
Have very strong degree of safety and carry lowest credit risk. |
|
Date |
06.02.2014 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DECLINED
MANAGEMENT NON – COOPERATIVE (91-22-66578765)
LOCATIONS
|
Registered Office : |
V S B, |
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Tel. No.: |
91-22-66578765 |
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Fax No.: |
91-22-66395162 |
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E-Mail : |
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Website : |
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Corporate Office : |
Plot No. C21 and C36, “G” Block, Bandra Kurla Complex, Mumbai –
400098, |
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Tel. No.: |
91-22-66578765 |
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Fax No.: |
91-22-66395162 |
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Overseas Office: |
·
Singapore ·
Hong Kong ·
United Arab Emirates ·
United States of America ·
Canada ·
United Kingdom ·
France |
DIRECTORS
As on : 31.03.2013
|
Name : |
Mr. Subodh Bhargava |
|
Designation : |
Chairman (Independent) |
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|
Name : |
Mr. Vinod Kumar |
|
Designation : |
Panatone Nominee |
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Name : |
N. Srinath |
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Designation : |
Managing Director and Chief Executive Officer |
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Name : |
Mr. Kishor A. Chaukar |
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Designation : |
Panatone Nominee |
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Name : |
Mr. Amal Ganguli |
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Designation : |
Director (Independent) |
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Name : |
Mr. S. Ramadorai |
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Designation : |
Panatone Nominee |
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Name : |
Mr. S. Ramadorai |
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Designation : |
Director (Panatone Nominee) |
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Name : |
Mr. Arun Gandhi |
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Designation : |
Director (Panatone Nominee) |
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Name : |
Dr. Ashok Jhunjhunwala |
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Designation : |
Director (Panatone Nominee) |
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Name : |
Dr. Uday B. Desai |
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Designation : |
Director (Independent) |
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Name : |
Mr. Ajay Kumar Mittal |
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Designation : |
Director (Government Nominee) |
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Name : |
Mr. Saurabh Kumar Tiwari |
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Designation : |
Director (Government Nominee) |
KEY EXECUTIVES
|
Name : |
Mr. Satish Ranade |
|
Designation : |
Company Secretary and Chief Legal Officer |
|
Address : |
Plot No. C-21 and C-36, G Block, Bandra Kurla Complex, Bandra (East)
Mumbai – 400 098, |
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Tel. No.: |
91-22-66578765 |
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Fax No.: |
91-22-67251962 |
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E-Mail : |
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Name : |
Mr. Sanjay Baweja |
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Designation : |
Chief Financial Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 31.12.2013
|
Category of Shareholders |
No. of Shares |
Percentage of
holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
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|
74446885 |
26.12 |
|
|
139286330 |
48.87 |
|
|
213733215 |
74.99 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
213733215 |
74.99 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
10112809 |
3.55 |
|
|
16847762 |
5.91 |
|
|
10845909 |
3.81 |
|
|
17473592 |
6.13 |
|
|
55280072 |
19.40 |
|
|
|
|
|
|
4951065 |
1.74 |
|
|
|
|
|
|
7364965 |
2.58 |
|
|
3256879 |
1.14 |
|
|
413804 |
0.15 |
|
|
7400 |
0.00 |
|
|
7250 |
0.00 |
|
|
399094 |
0.14 |
|
|
60 |
0.00 |
|
|
15986713 |
5.61 |
|
Total Public shareholding (B) |
71266785 |
25.01 |
|
Total (A)+(B) |
285000000 |
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) |
285000000 |
0.00 |
Shareholding of securities (including shares, warrants,
convertible securities) of persons belonging to the category Promoter and
Promoter Group
|
SL
No. |
Name
of the Shareholder |
No.
of Shares held |
As
a % of grand total (A)+(B)+(C) |
No |
As
a percentage |
As
a % of |
Total
shares (including underlying shares assuming full conversion of warrants and
convertible securities) as a % of diluted share capital |
|
1 |
Panatone Finvest Limited |
8,86,26,654 |
31.10 |
0 |
0.00 |
0.00 |
31.10 |
|
2 |
Tata Sons
Limited |
3,72,37,639 |
13.07 |
10000000 |
26.85 |
3.51 |
13.07 |
|
3 |
Tata Power Company Limited |
1,34,22,037 |
4.71 |
0 |
0.00 |
0.00 |
4.71 |
|
4 |
President of India |
7,44,46,885 |
26.12 |
0 |
0.00 |
0.00 |
26.12 |
|
|
Total |
21,37,33,215 |
74.99 |
10000000 |
4.68 |
3.51 |
74.99 |
Shareholding of securities (including shares, warrants, convertible
securities) of persons belonging to the category Public and holding more than
1% of the total number of shares
|
Sl. No. |
Name of the
Shareholder |
No. of Shares
held |
Shares as % of
Total No. of Shares |
|
|
1 |
Life Insurance Corporation of India |
8409762 |
2.95 |
|
|
2 |
LIC of India Market Plus Growth Fund |
5702590 |
2.00 |
|
|
3 |
LIC of India Money Plus Growth Fund |
5012658 |
1.76 |
|
|
4 |
Government Pension Fund Global |
4124764 |
1.45 |
|
|
|
Total |
23249774 |
8.16 |
|
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in the business of providing International
Telecommunications Services. |
GENERAL INFORMATION
|
No. of Employees : |
9474 (Approximately) |
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Bankers : |
·
Axis Bank ·
Indian Bank ·
ANZ Bank ·
ICICI Bank Limited ·
Bank of ·
Indian Overseas Bank ·
Citibank Inc. ·
Indusind Bank Limited ·
Deustche Bank ·
Kotak Mahindra Bank Limited ·
Development Bank of ·
Royal Bank of ·
HDFC Bank Limited ·
State Bank of ·
Hongkong and Shanghai Banking Corporation (HSBC) ·
Standard Chartered Bank ·
ING Vysya Bank ·
Yes Bank Limited |
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Facilities : |
Rs in Millions
NOTE : (i) Secured
Debentures : During the year 2008-09, the Company issued Taxable Rated Secured
Non-convertible Redeemable Debentures in demat form for cash at par on private
placement basis aggregating Rs. 0.001 Million, IDBI Trusteeship Services
Limited has been appointed as trustee to the debenture issue. Nature of
Security Rs. 10000.000 Millions, 11.70% debentures (face value of Rs. 1.000
Millions each) are secured by a first legal mortgage and charge on the
Company’s immovable property being the free hold land at Mouje Maharajpura, Rs. 2500.000 Millions, debentures (interest ranging from 11.00% to
11.25%, face value of Rs. 1,000,000 each) are secured by a first legal
mortgage and charge on the Company’s free hold land at Perambur Barracks,
Chennai and Plant and machinery. Redemption Terms The outstanding debentures are due for redemption as given below :
For facilitating the above redemptions, the Company has created a
debenture redemption reserve of Rs.
1796.000 Millions (2012: Rs. 6051.900
Millions ), and an amount of Rs. 1744.100 Millions (2012: Rs. 2705.500 Millions ) has been
appropriated during the current year. During the year, 4,000 (2012: 4,000)
11.70% debentures aggregating Rs. 4000.000 Millions (2012: Rs. 4000.000 Millions ) were
redeemed as per terms of issue and consequently debenture redemption reserve
of Rs. 4000.000 Millions (2012: Rs.
4000.000 Millions ) created to facilitate the redemption of above debentures
has been transferred to General reserve. In addition to the above, 2,000 11.70% debentures aggregating Rs.
2000.000 Millions were prepaid during
the year and consequently debenture redemption reserve of Rs. 2000.000
Millions created to facilitate the
redemption of above debentures has been transferred to General reserve |
|
|
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Auditors : |
|
|
Name : |
S.B. Billimoria and Company Chartered Accountants |
|
Address: |
12, Dr. Annie Besant Road, Opposite Shiv Sagar Estate, Worli, Mumbai –
400018, Maharashtra, India |
|
Tel No.: |
91-22-66071000 |
|
Fax No.: |
91-22-66071001 |
|
|
|
|
Subsidiaries (Held Directly) |
·
Tata Communications Payment Solutions Limited
(formerly known as Tata Communications Banking Infra Solutions Limited) ·
Tata Communications Transformation Services
Limited ·
Tata Communications International Pte. Limited ·
VSNL SNOSPV Pte. Limited ·
S and A Internet Services Private Limited ·
Tata Communications Lanka Limited |
|
|
|
|
Subsidiaries (Held Indirectly) |
·
Tata Communications ( ·
Tata Communications ( ·
Tata Communications Services ( ·
Tata Communications ( ·
Tata Communications ( ·
Tata Communications ( ·
Tata Communications Services ( ·
Tata Communications ( ·
Tata Communications ( ·
Tata Communications ( ·
Tata Communications Deutschland GmbH ·
Tata Communications ( ·
Tata Communications ( ·
Tata Communications ( ·
Tata Communications ( ·
TCPoP Communication GmbH ·
Tata Communications ( ·
Tata Communications ( ·
Tata Communications ( |
|
|
|
|
Investing Parties (Promoters): |
·
Panatone Finvest Limited ·
Tata Sons Limited |
|
|
|
|
Joint Venture : |
·
United Telecom Limited |
|
|
|
|
Joint Venture / Associate of wholly owned subsidiary |
·
SEPCO Communications Pty Limited ·
Neotel (Pty)Limited ·
Number Portability Company (Pty) Limited (Held
through Neotel (Pty) Limited) |
|
|
|
|
Other Related Parties : |
·
Tata Communications ( ·
Tata Communications ( ·
ITXC IP Holdings S.a r.lz ·
Tata Communications (Nordic) AS ·
Tata Communications ( ·
Tata Communications ( ·
Tata Communications ( ·
Tata Communications ( ·
VSNL International (ITXC) Corp. (Merged with Tata
Communications ( ·
Tata Communications ( ·
Tata Communications Services (International) Pte.
Limited ·
Tata Communications ( ·
(Formerly known as Videsh Sanchar Nigam Spain
Srl) ·
Tata Communications ( ·
Tata Communications ( ·
Tata Communications ( ·
BitGravity Inc. ·
Neotel (Pty) Limited (Subsidiary w.e.f 11 April
2011) ·
SEPCO Communications Pty Limited |
CAPITAL STRUCTURE
As on : 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
400000000 |
Equity Shares |
Rs.10/- each |
Rs. 4000.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
285000000 |
Equity Shares |
Rs.10/- each |
Rs. 2850.000 Millions |
NOTE:
A. Authorized:
The authorized capital of the Company increased
from Rs. 300.00 Millions to Rs. 400.00 Millions during financial year 2011-12
due to the Ministry of Corporate Affairs giving effect to the merger of 100%
subsidiary VSNL Broadband Limited into the Company which was approved in
December 2007 by the Company and the Bombay High Court in April 2009.
B. Issued, Subscribed and Paid
up:
There was no movement in the issued,
subscribed and paid up share capital of the Company during the current and past
five financial years.
C. Terms/ rights attached to equity shares:
The Company has only one class of equity
shares with a face value of Rs. 10 per share. Each shareholder of equity shares
is entitled to one vote per share at any general meeting of shareholders. The
Company declares and pays dividends in Indian rupees. The dividend proposed by
the Board of Directors is subject to the approval of the shareholders in the
ensuing Annual General Meeting. The holders of American Depositary Receipts
("ADRs") do not have voting
rights.
Subsequent to the year end the company
announced its intention to delist its American Depositary Shares
("ADSs"), as evidenced by ADRs, from the New York Stock Exchange
("NYSE") and to terminate its ADR program.
The Board of Directors have recommended a
dividend of Rs. 3 (2012: Rs. 2) per share for the year ended 31 March 2013.
D. Number of shares held by each shareholder holding more than 5% of the
issued share capital:
As on 31.03.2013
|
Particulars |
Nos. of Shares |
% of Holding |
|
Panatone Finvest Limited |
88626654 |
31.10 |
|
Government of |
74446885 |
26.12 |
|
Tata Sons Limited |
40533297 |
14.22 |
|
Bank of New York Mellon as depository to
Company’s ADR issue |
14107950 |
4.97 |
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 |
2850.000 |
2850.000 |
2850.000 |
|
(b) Reserves & Surplus |
72314.200 |
68519.700 |
67224.800 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
75164.200 |
71369.700 |
70074.800 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
6250.000 |
8250.000 |
12311.400 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
164.200 |
1259.300 |
|
(c) Other long term liabilities |
3915.600 |
3840.800 |
3363.800 |
|
(d) long-term provisions |
1221.600 |
1276.800 |
951.400 |
|
Total Non-current Liabilities (3) |
11387.200 |
13531.800 |
17885.900 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
1497.000 |
1258.300 |
1752.900 |
|
(b)
Trade payables |
12483.000 |
12021.400 |
10306.300 |
|
(c)
Other current liabilities |
5371.700 |
9526.900 |
13558.500 |
|
(d) Short-term
provisions |
1105.200 |
853.000 |
940.700 |
|
Total Current Liabilities (4) |
20456.900 |
23659.600 |
26558.400 |
|
|
|
|
|
|
TOTAL |
107008.300 |
108561.100 |
114519.100 |
|
|
|
|
|
|
II. ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
46949.100 |
46611.000 |
46967.100 |
|
(ii)
Intangible Assets |
1385.400 |
909.000 |
1084.800 |
|
(iii)
Capital work-in-progress |
1746.600 |
3033.400 |
2202.200 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
20305.100 |
17882.700 |
17881.100 |
|
(c) Deferred tax assets (net) |
87.100 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
16830.200 |
27619.400 |
30020.700 |
|
(e) Other
Non-current assets |
80.800 |
80.800 |
80.800 |
|
Total Non-Current Assets |
87384.300 |
96136.300 |
98236.700 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
4624.100 |
0.000 |
447.100 |
|
(b)
Inventories |
42.000 |
4.500 |
53.400 |
|
(c)
Trade receivables |
8610.200 |
8457.700 |
6126.200 |
|
(d) Cash
and cash equivalents |
3286.200 |
533.200 |
4307.700 |
|
(e)
Short-term loans and advances |
2858.500 |
3183.100 |
3401.100 |
|
(f)
Other current assets |
203.000 |
246.300 |
1946.900 |
|
Total Current Assets |
19624.000 |
12424.800 |
16282.400 |
|
|
|
|
|
|
TOTAL |
107008.300 |
108561.100 |
114519.100 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
44161.200 |
40917.700 |
36117.700 |
|
|
|
Other Income |
3802.200 |
1791.000 |
1907.100 |
|
|
|
TOTAL |
47963.400 |
42708.700 |
38024.800 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Network and transmission |
19632.000 |
17365.000 |
15483.600 |
|
|
|
Employees Benefits Expenses |
6394.600 |
6222.400 |
5204.600 |
|
|
|
Operating and other expenses |
8132.500 |
7450.600 |
6869.300 |
|
|
|
TOTAL |
34159.100 |
31038.000 |
27557.500 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
13804.300 |
11670.700 |
10467.300 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
1196.900 |
1948.700 |
2119.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) |
12607.400 |
9722.000 |
8348.000 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/ AMORTISATION |
7624.000 |
7070.800 |
6596.500 |
|
|
|
|
|
|
|
|
|
Add |
EXCEPTIONAL
ITEMS (LOSS) / GAIN |
1583.500 |
0.000 |
(211.100) |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
6566.900 |
2651.200 |
1540.400 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
1814.500 |
937.800 |
(85.200) |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
|
4752.400 |
1713.400 |
1625.600 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Revenue from telecommunication services |
11060.100 |
100858 |
8309.700 |
|
|
|
Interest income |
336.800 |
127.600 |
258.300 |
|
|
|
Dividend income |
261.600 |
47.600 |
16.800 |
|
|
|
Other income |
846.700 |
106.200 |
267.700 |
|
|
TOTAL EARNINGS |
12505.200 |
101139.400 |
8852.500 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Stores & Spares |
14.200 |
16.600 |
13.500 |
|
|
|
Capital Goods |
2743.400 |
1508.400 |
1327.400 |
|
|
TOTAL IMPORTS |
2757.600 |
1525.000 |
1340.900 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
16.68 |
6.01 |
5.70 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
9.91
|
4.01 |
4.28 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
14.87
|
65.99 |
4.26 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
7.74
|
3.02 |
1.63 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.09
|
0.04 |
0.02 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.10
|
0.13 |
0.20 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.96
|
0.53 |
0.61 |
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 |
2850.000 |
2850.000 |
2850.000 |
|
Reserves & Surplus |
67224.800 |
68519.700 |
72314.200 |
|
Net
worth |
70,074.800 |
71,369.700 |
75,164.200 |
|
|
|
|
|
|
long-term borrowings |
12311.400 |
8250.000 |
6250.000 |
|
Short term borrowings |
1752.900 |
1258.300 |
1497.000 |
|
Total
borrowings |
14,064.300 |
9,508.300 |
7,747.000 |
|
Debt/Equity
ratio |
0.201 |
0.133 |
0.103 |
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 |
36117.700 |
40917.700 |
44161.200 |
|
|
|
13.290 |
7.927 |
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 |
36117.700 |
40917.700 |
44161.200 |
|
Profit |
1625.600 |
1713.400 |
4752.400 |
|
|
4.50% |
4.19% |
10.76% |
LOCAL AGENCY FURTHER INFORMATION
CURRENT MATURITIES
OF LONG-TERM DEBT DETAILS: NOT AVAILABLE
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
No |
|
8] |
No. of employees |
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 |
No |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
UNSECURED LOANS:
(Rs in Millions)
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
|
Long term
borrowings |
|
|
|
Taxable Rated
Unsecured Non-Convertible Redeemable Debentures |
|
|
|
1500, 9.85% Rated Debentures of face value Rs. 1.000 Million each |
1500.000 |
1500.000 |
|
1500, 9.50% Rated Debentures of face value Rs. 1.000 Million each |
1500.000 |
1500.000 |
|
Term Loan |
|
|
|
From Bank ((rate of interest 9% p.a, repayable by June 2014)) |
750.000 |
750.000 |
|
From Others (rate of interest 5.95% to 6.90% p.a, repayable by July
2012) |
0.000 |
64.600 |
|
Less: Current maturities of long term borrowings |
|
(4064.600) |
|
Short term
borrowings : |
|
|
|
From banks (rate of interest – 1.09 % to 2.60 %) |
1497.000 |
1258.300 |
|
Total |
5247.000 |
1008.300 |
NOTE:
Unsecured
Debentures
During the year 2009-10, the Company issued Taxable Rated Unsecured
Non-Convertible Redeemable Debentures of face value Rs. 1,000,000 each, in
demat form for cash at par on private placement basis aggregating Rs. 7000.000
Millions.
Redemption Terms:
The outstanding debentures are due for redemption as given below:
|
Date
of redemption as per terms of issue |
1500,
9.50% Debenture |
1500,
9.85% Debentures |
|
23 January 2019 |
-- |
150 |
|
23 January 2016 |
150 |
-- |
|
Total |
150 |
150 |
For facilitating the above redemptions, the
Company has created a debenture redemption reserve of Rs. 1705.300 Millions
(2012: Rs. 1255.500 Millions), an amount of Rs. 449.800 Millions (2012: Rs.
2420.800 Millions) has been appropriated during the current year.
During the previous year 4,000, 7.74%
debenture aggregating Rs. 4000.000 Millions were redeemed as per terms of issue
and consequently debenture redemption reserve of Rs. 4000.000 Millions created
to facilitate the redemption of above debenture has been transferred to General
reserve.
OPERATIONS:
Geographical Presence
In recent years, the Company has established a
strong presence not just in
Segment and Product Distribution
The Company’s revenues are now broadly
diversified across its various products and segments. During 2012- 13, voice
services contributed 50% to revenues, while 39% came from data services and 11%
from Neotel. Within the data services segment, revenues are well distributed
between its two segments of service providers and enterprises, which
contributed 46% and 54% of the total respectively
Global Voice
In the voice business, the trend of the past
few years continues, as overall volumes continue to grow, although margins are
declining. During the year, the Company’s international long distance voice
traffic grew 14% from 46.72 billion minutes in 2011-12 to 53.4 billion minutes
in 2012-13. National long distance voice traffic in
Global Data
The launch of cloud computing solutions in
Neotel
Neotel, a subsidiary of the Company in
Customer Satisfaction
The Company believes that providing an
excellent customer experience generates a crucial sustainable advantage and has
made this an important focus area. In 2012-13, the Company’s customer loyalty
ratings stood at the 84th percentile of its global peer set. In order to create
a customer-centric culture, the Company is improving existing processes for
faster service deployment and support to customers, investing in a customer
portal that enables customer interaction, initiating programmes around
“Customer Voice” and acting on the feedback received, and strengthening its
people through multi-skilling and leadership training.
MANAGEMENT DISCUSSION AND ANALYSIS
Macro Economic Situation
2012-13 was a challenging year for the Indian economy, which experienced its worst slowdown in nearly a decade on the back of global stagnation and domestic macro-economic fiscal imbalances. The year started with news that the expansion in the previous year’s fourth quarter GDP had dropped to 5.5%. That, coupled with low growth, a high fiscal and current account deficit, persistent high inflation, ballooning subsidies and pessimistic business sentiment added to the slowdown. About half way through the financial year, the Indian Government intervened with measures like reducing oil and fertilizer subsidies and steps to attract foreign direct investment (FDI) and strengthen the rupee. However, economic conditions and the business atmosphere remain largely unchanged due to uncertainty about the results of these reforms. Sources of funding continued to be scarce and borrowing costs remained high during the year.
During last year, the global economy had recovered slightly from the crisis of the earlier year. Nevertheless, the International Monetary fund (IMF), in the update of its World Economic Outlook, lowered the world GDP growth projections for 2013 and 2014, given renewed setbacks in the Eurozone and the risk of excessive fiscal consolidation in the United States. In particular, the Eurozone faced considerable fiscal strain in the face of an austerity driven recession during 2012, and there was little respite from contraction in manufacturing activity. Indian exports to the Eurozone, which constitute around 17% of total exports, were also impacted due to the decreasing demand from that region. Moreover, although the US government was able to formulate a solution to mitigate a dreaded fiscal cliff, near-term risks persist. This makes the global environment in the coming years more uncertain and challenging for exporters
Telecom Industry Situation
The Indian telecom sector and subscriber base
have witnessed tremendous growth over the past decade, catalysed by increasing
fixed and mobile network coverage and a competition-induced decline in tariffs.
Demand has surged, largely due to these factors, as well as the growth of
broadband Internet access, a rapid proliferation of smart mobile devices and
higher levels of video traffic on consumer and business networks. The key
factors which are likely to fuel growth are a growing subscriber base, mobile
applications and technologically advanced end-user devices that will drive
exponential growth in Internet usage. However, the growth in traffic is
accompanied by the countervailing pressure of severe price erosion, especially
for basic voice and connectivity services. This has been further exacerbated by
competition from next-generation service providers. The industry also witnessed
consolidation, especially among business-to-business (B2B) players
Global Telecom Market
In 2012-13, the global telecom market grew marginally, by approximately 3% year-on-year, to USD 2.207 trillion. Telecom services accounted for 78% of the total market while mobile devices accounted for 16% and telecom infrastructure for 6%. The low single-digit growth rate of the past fiscal year is expected to continue over the next four years as well, with the total telecom market expected to grow at a compounded annual growth rate (CAGR) of only 4%, largely due to on-going economic concerns. During 2012-13, the Company’s addressable market in voice services witnessed a slight decline because of declining call rates while the data market showed healthy growth. In the future, they expect the Company’s addressable market to continue to grow at an attractive pace.
Indian Telecom Market
In 2012-13, the Indian telecom market grew to
Rs. 1708540.000 Millions (USD 34 billion), of which Tata Communications’ addressable
market was Rs. 649250.000 Millions (USD
13 billion). The major factors driving growth in the Indian market are
increased penetration of mobile services, growth in consumer broadband services
and increased adoption of network services by Indian businesses. The Company
leads the market in several segments. In the financial year 2012-13, the Indian
International Long Distance (ILD) voice market had eight major operators, a
total inbound market size of 83 billion minutes and outbound market size of 6 billion
minutes. The Company’s market share was 24% in inbound traffic and 18% in
outbound traffic. The country’s National Long Distance (NLD) voice market size
was 351 billion minutes during the year and consisted of 11 major operators.
The Company’s NLD addressable market size was 15 billion minutes, of which its
market share was 55%. In 2012-13, the Company had a 19% market share of the
Rs. 78350.000 Millions Indian enterprise
data market. The Company also had a 27% market share in the Rs. 22500.000 crore Indian data centre market.
SEGMENTWISE PERFORMANCE:
Company Segmentation
Tata Communications’ business and revenues are
well-diversified across business segments, customer profiles and geographies.
Being largely a B2B player, the Company serves two segments of customers:
service providers and enterprise customers.
In the service provider segment, the Company
provides an integrated set of services including wholesale voice, domestic and
international data connectivity, Internet backbone connectivity (also known as
IP transit), value added roaming services for mobile operators and
carrier-specific business process outsourcing services.
In the enterprise segment, the Company’s main
offering comprises a comprehensive suite of connectivity, IT infrastructure and
managed communication and collaboration solutions for businesses seeking voice,
data and video connectivity between their distributed offices, within India or
globally. These services are aimed at improving the operational efficiencies of
business through the adoption of the latest networking and IT technologies, on
a managed solutions basis. Tata Communications also continues to build industry
specific solutions, with a current focus on Banking & Financial Services
and Media and Entertainment.
The Company classifies its operations into
three main business segments – Global Voice Solutions, Global Data and Managed
Services and Neotel (its subsidiary in
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE
CREATION/MODIFICATION |
CHARGE AMOUNT
SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST
NUMBER (SRN) |
|
1 |
10158962 |
23/10/2012 * |
2,500,000,000.00 |
IDBI TRUSTEESHIP
SERVICES LIMITED |
ASIAN BLDG.,
GROUND FLOOR, 17, R.KAMANI MARG, BA |
B61810099 |
|
2 |
90145554 |
10/12/2004 |
600,000,000.00 |
THE HONGKONG AND
SHANGHAI BANKING CORPORATION LIMI |
52/60. MAHATMA
GANDHI ROAD, FORT, MUMBAI, MAHARASHTRA - 400001, INDIA |
- |
|
3 |
90228711 |
09/12/1993 |
1,000,000,000.00 |
BANK OF BARODA |
INDUSTRIAL
FINANCE BRANCH, 42; C.P. PATEL ROAD; FORT, BOMBAY, MAHARASHTRA - 400023,
INDIA |
- |
|
4 |
90228397 |
16/03/1993 * |
500,000,000.00 |
INDIAN OVERSEAS
BANK |
ELIPHINSTONE BLDG.,
2/10 VEER NARIMAN ROAD; FORT, |
- |
Note: * Date of charge modification
CONTINGENT LIABILITIES AND COMMITMENTS:
Rs in Millions
|
Particulars |
31.03.2013 |
|
Guarantees given on behalf of subsidiaries |
118366.900 |
|
Claims for taxes on income (Refer 1) |
|
|
-- Income tax disputes where department is in appeal against the company |
4570.800 |
|
-- Other disputes related to income tax |
20672.700 |
|
Claims for other taxes |
12.800 |
|
Other claims (Refer 2) |
6918.300 |
1. Claims for taxes on income:
Significant claims by the revenue authorities
in respect of income tax matters relate to disallowance of deductions claimed
section 80 IA of the Income Tax Act, 1961 from Assessment years 1996-97 onwards
and transfer pricing adjustments carried out by revenue authorities. The
Company has contested the disallowances/ adjustments and has preferred appeals
which are pending
2. Other claims:
i. Telecom Regulatory Authority of India
(“TRAI”) reduced the Access Deficit Charge (“ADC”) rates effective 1 April
2007. All telecom services providers including National Long Distance (“NLD”)
and International Long Distance (“ILD”) operators in
ii. On 19 February 2013, DoT issued license
fee demand for financial year 2006-07 and 2007-08, based on special audit
reports of auditors appointed by DoT. The total demand is for Rs. 1930.500
Millions, being Rs. 928.600 Millions for financial year 2006-07 and Rs.
1001.900 Millions for financial year 2007-08, including Rs. 1020.600 Millions,
being interest as on 28 February 2013. The Company has challenged the said
demand notice in the Madras High Court which has vide its orders dated 1 March
2013, granted a stay-order against the said demand. Further, the Company is
also contesting a license fee claim of Rs. 1012.400 Millions (2012: Rs. 834.000
Millions) (including interest and penalty) for financial year 2005-06. However,
the said demand notice includes the items which are already the subject-matter
of petitions/appeals, pending for hearing in the Supreme Court of India, for
the previous years.
iii. Other claims of Rs. 857.000 Millions
(2012: Rs. 306.500 Millions) mainly pertains to routine suits for collection,
commercial disputes, claims from customers and/or suppliers and claims from
Employee State Insurance Corporation (ESIC).
3. The Company has taken appropriate
professional advice in respect of the claims / appeals and has taken all
necessary steps to protect its interest. Based on expert opinion, no provision
is required in respect of these claims / appeals.
4. During the year 2008-09, in terms of the
agreements entered into between Tata Teleservices Limited (“TTSL”), Tata Sons
Limited (“TSL”) and NTT DoCoMo, Inc. of Japan (Strategic Partner - SP), TSL
gave an option to the Company to sell 36,542,378 equity shares in TTSL to the
SP, as part of a secondary sale of 253,163,941 equity shares effected along
with a primary issue of 843,879,801 shares by TTSL to the SP. If certain
performance parameters and other conditions are not met by TTSL by 31 March 2014
and should the SP decide to divest its entire shareholding in TTSL, and TSL is
unable to find a buyer for such shares, the Company is obligated to acquire the
shareholding of the SP, at the higher of fair value or 50 percent of the
subscription purchase price in proportion of the number of shares sold by the
company to the aggregate of the secondary shares sold to the SP, subject to
compliance with applicable exchange control regulations, or should the SP
decide to divest its entire shareholding in TTSL and TSL is unable to find a
buyer for such shares and the SP divests the shares at a lower price, subject
to compliance with applicable exchange control regulations, the Company is
obliged to pay a compensation representing the difference between such lower
sale price and the price referred to above in proportion of the number of
shares sold by the company to the aggregate of the secondary shares sold to the
SP.
Under the above mentioned agreements with SP,
TSL and TTSL have jointly and severally agreed to indemnify SP within the
agreed limits against claims arising on account of any failure of certain
warranties provided by TSL and TTSL to be true and correct in all respects
(amount not determinable) and in respect of specified contingent liabilities
(Company’s share Rs. 417.000 Millions). The Company is liable to reimburse TSL,
on a pro-rata basis.
5. Future cash flows in respect of above matters
are determinable only on receipt of judgements/ decisions pending at various
forums/ authorities
STATEMENT OF
STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED
DECEMBER 31, 2013
(Rs. In Millions)
|
Particulars |
For the
quarter ended |
Nine months ended |
|
|
|
31.12.2013 |
30.09.2013 |
31.12.2013 |
|
|
(unaudited) |
(unaudited) |
(unaudited) |
|
Income from Operations |
|
|
|
|
Revenue from operation |
11598.300 |
12192.300 |
35197.100 |
|
Other operating income |
423.500 |
0.000 |
423.500 |
|
Total |
12021.800 |
12192.300 |
35620.600 |
|
Expenses |
|
|
|
|
a. Network and transmission |
4550.200 |
5189.300 |
14731.600 |
|
b. Employee benefit |
1668.500 |
1558.800 |
4790.300 |
|
c. Depreciation and amortization |
1857.300 |
1912.900 |
5676.100 |
|
d. Other |
2513.700 |
2424.600 |
7059.400 |
|
e. Total Expenditure |
10589.700 |
11085.600 |
32257.400 |
|
Profit / (Loss) from
Operations before Other Income, Finance costs and Exceptional Items |
1432.100 |
1106.700 |
3363.200 |
|
Other Income |
806.600 |
1224.400 |
2675.600 |
|
Profit / (Loss) from
Ordinary Activities before Finance costs and Exceptional Items |
2238.700 |
2331.100 |
6038.800 |
|
Finance Cost |
144.700 |
157.700 |
461.000 |
|
Profit / (Loss) from
Ordinary activities after Finance costs but before Exceptional Items |
2094.000 |
2173.400 |
5577.800 |
|
Exceptional Items loss/(gain) |
-- |
(1348.900) |
813.300 |
|
Profit / (Loss) from
Ordinary Activities before Tax |
2094.000 |
824.500 |
6391.100 |
|
Tax Expense |
688.200 |
356.500 |
2200.200 |
|
Net Profit / (Loss) from
Ordinary Activities after Tax |
1405.800 |
468.000 |
4190.900 |
|
Extraordinary Items (net
of Tax Expense) |
-- |
-- |
-- |
|
Net Profit/(Loss) for the
period |
1405.800 |
468.000 |
4190.900 |
|
Paid up Equity Share
Capital (Face value of 10 per share) |
2850.000 |
2850.000 |
2850.000 |
|
Paid up Debt Capital |
|
|
|
|
Reserves excluding
Revaluation Reserve |
|
|
|
|
Debenture Redemption
Reserve |
|
|
|
|
Earnings Per Share (EPS) Basic and diluted
earnings per share before and after Extraordinary Items (Rs.) |
4.93 |
1.64 |
14.70 |
|
Part II |
For the
quarter ended |
Nine months ended |
|
|
|
31.12.2013 |
30.09.2013 |
31.12.2013 |
|
|
(unaudited) |
(unaudited) |
(unaudited) |
|
A) Particulars of
Shareholding |
|
|
|
|
1. Public shareholding |
|
|
|
|
a. Number of shares |
71266785 |
71266785 |
71266785 |
|
b. Percentage of
shareholding |
25.01% |
25.01% |
25.01% |
|
2. Promoters and Promoter
Group |
|
|
|
|
Shareholding |
|
|
|
|
a. Pledged / Encumbered |
|
|
|
|
- Number of Shares |
10000000 |
10000000 |
10000000 |
|
- Percentage of Shares (as a % of the total shareholding of
promoters and promoter group) |
4.68% |
4.68% |
4.68% |
|
- Percentage of Shares (as a % of the total share capital of the
Company) |
3.51% |
3.51% |
3.51% |
|
b. Non-encumbered |
|
|
|
|
- Number of Shares |
203733215 |
203733215 |
203733215 |
|
- Percentage of Shares
(as a % of the total shareholding of promoters and promoter group) |
95.32% |
95.32% |
95.32% |
|
- Percentage of Shares
(as a % of the total share capital of the Company) |
71.48% |
71.48% |
71.48% |
|
Particulars |
Quarter ended on 31.12.2013 |
|
B) Investor complaints |
|
|
Pending at the beginning
of the quarter |
Nil |
|
Received during the
quarter |
0 |
|
Resolved during the
quarter |
0 |
|
Remaining unresolved at
the end of the quarter |
Nil |
Standalone Business
Segment Information:
(Rs.
In Millions)
|
Particulars
|
For the
quarter ended |
Nine months ended |
|
|
|
31.12.2013 |
30.09.2013 |
31.12.2013 |
|
Income
from Operations |
(unaudited) |
(unaudited) |
(unaudited) |
|
Global
Voice Solutions |
2768.600 |
3198.600 |
8952.800 |
|
Global
Data and Managed Services |
9253.200 |
8993.700 |
26667.800 |
|
Total |
12021.800 |
12192.300 |
35620.600 |
|
Segment
result |
|
|
|
|
Global
Voice Solutions |
(268.700) |
(313.600) |
(942.700) |
|
Global
Data and Managed Services |
7376.100 |
7098.600 |
21205.300 |
|
Total |
7107.400 |
6785.000 |
20262.600 |
|
Less
: |
|
|
|
|
(i)Finance
Cost |
144.700 |
157.700 |
461.000 |
|
(ii)
Other Unallocable Expenses (net |
4868.700 |
5802.800 |
13410.500 |
|
Profit
/ (Loss) before Taxes |
2094.000 |
824.500 |
6391.100 |
|
Includes Exceptional Items |
-- |
(1348.900) |
813.300 |
NOTES TO SEGMENTS:
The Company's
reportable business segments are Global Voice Solutions (GVS), Global Data and
Managed Services (GDMS), South Africa Operations and others. The composition of
the reportable segments is as follows:
GVS
includes International and National Long Distance Voice services.
GDMS
includes Corporate Data Transmission services, data center, virtual private
network signalling and roaming services, television and other network and
managed services.
South
Africa Operations are carried out by the Company's subsidiary Neotel Pty
Limited. and comprise wholesale international voice and data transit,
enterprise business solution services for the wholesale and corporate market,
telephony and data services for retail customers in South Africa.
Others
primarily comprise a Joint venture business.
Revenues
and interconnect charges are directly attributable to the segments. Space
segment utilization charges, rent of landlines and other network and
transmission costs are allocated based on utilization of satellite and landlines.
License fee for GVS and GDMS have been allocated based on net adjusted gross
revenues from these services. Segment result is segment revenues less segment
expenses. Certain costs including depreciation which are not allocable to GVS
and GDMS have been classified as "Other Unallocable Expenses (net)".
Telecommunication
services are provided utilizing the Company's assets which do not generally
make a distinction between the types of services. As a result, fixed assets are
used interchangeably between segments. In the absence of a meaningful basis to
allocate assets and liabilities between segments, no allocation has been made
Notes:
The above standalone and consolidated results of the Company for the quarter and nine months ended December 31, 2013 have been subjected to a limited review by the statutory auditors, recommended by the audit committee and taken on record and approved by the Board of Directors at their meeting held on February 12, 2014.
Other income includes
(Rs. In Millions)
|
Net foreign exchange loss/ (gain) |
For the
quarter ended |
Nine months ended |
|
|
|
31.12.2013 |
30.09.2013 |
31.12.2013 |
|
|
(unaudited) |
(unaudited) |
(unaudited) |
|
-
Standalone |
36.500 |
73.500 |
(19.100) |
|
-
Consolidated |
(160.500) |
21.200 |
(295.000) |
Other operating income in the standalone and consolidated financial statements for the quarter and nine months ended December 31, 2013, comprises an amount of Rs. 423.500 Millions towards export benefits received.
Network costs in the consolidated financial statements for the quarter and nine
months ended December 31, 2013 is net of write back amounting to Rs. 337.100
Millions in respect of earlier years with respect to Neotel.
During the quarter ended September 30, 2013, VSNL SNOSPV Pte Limited (SNOSPV),
a wholly owned subsidiary of Tata Communications Limited, has entered into
exclusive discussions with Vodacom Group Limited (Vodacom) to sell all of the
issued share capital of Neotel, held directly or indirectly by SNOSPV.
Discussions with Vodacom are in progress.
Results include exceptional items:
For the quarter ended September 30, 2013 and nine months ended December 31,
2013, in respect of the standalone financial statements amounting to Rs.
1348.900 Millions relating to the provision towards diminution in carrying
amount of investments and advances in Neotel.
For the nine months ended December 31, 2013, in respect of the standalone and
consolidated financial statements, an amount of Rs. 2162.200 Millions towards
Input credits against certain statutory obligations relating to earlier periods
that have been accounted for during the quarter ended June 30, 2013 on
crystallization of the entitlements to such credits.
For the quarter and nine months ended December 31, 2012, in respect of the
standalone and consolidated financial statements, employee cost optimization
expenses amounting to Rs. 250.100 Millions and Rs. 791.400 Millions
respectively.
For the financial year ended March 31, 2013, in respect of the standalone
financial statements, Employee cost optimization expenses amounting to Rs.
312.700 Millions and gain on sale of fixed asset of Rs. 1896.200 Millions and
in respect of consolidated financials, employee cost optimization expenses
amounting to Rs. 854.400 Millions and gain on sale of fixed asset of Rs.
1896.200 Millions.
During the year 2013, the Company had approached the Bombay High Court for
approval of the proposed "Scheme of Arrangement" ("the
Scheme") between the Company and S&A Internet Services Private Limited
("the Subsidiary Company"), for transfer of the IDC division
(Colocation Service division of the Company) on a going concern basis to the
Subsidiary Company. Pending approval of the Bombay High Court, these financial
results do not include any adjustments that may arise on implementation of the
Scheme.
The previous period’s figures have been rearranged wherever necessary to make
them comparable with the current period’s figures.
FIXED ASSETS:
- Land
- Building
- Plant and Machinery
- Furniture and Fixture
- Office Equipment
- Computers
- Motor Vehicle
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 61.05 |
|
|
1 |
Rs. 100.81 |
|
Euro |
1 |
Rs. 84.18 |
INFORMATION DETAILS
|
Information Gathered
by : |
NYA |
|
|
|
|
Report Prepared
by : |
KVT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
|
76 |
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.