MIRA
INFORM REPORT
|
Report Date : |
27.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
VODAFONE INDIA LIMITED (w.e.f.11.10.2011) |
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|
|
|
Formerly Known
As : |
VODAFONE ESSAR LIMITED (w.e.f.12.07.2007) HUTCHISON ESSAR LIMITED (w.e.f.26.08.2005) HUTCHISON MAX TELECOM LIMITED (w.e.f.01.12.2004) HUTCHISON MAX TELECOM PRIVATE LIMITED |
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Registered
Office : |
Peninsula
Corporate Park, Ganpatrao Kadam Marg, Lower Parel, Mumbai – 400013,
Maharashtra |
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|
Country : |
India |
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|
|
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Financials (as
on) : |
31.03.2013 |
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|
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Date of Incorporation
: |
21.02.1992 |
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|
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Com. Reg. No.: |
11-119108 |
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Capital
Investment / Paid-up Capital : |
Rs. 4140.870
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U32200MH1992PLC119108 |
|
|
|
|
TAN No.: [Tax Deduction & Collection
Account No.] |
MUMH07197B |
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|
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PAN No.: [Permanent Account No.] |
AAACH5332B |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business
: |
Providing Mobile Telecommunication Services. |
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|
No. of Employees
: |
Information declined by the management |
RATING & COMMENTS
|
MIRA’s Rating : |
A (62) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 308000000 |
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|
|
|
Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Exist |
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Comments : |
Subject is a subsidiary of “VODAFONE GROUP PLC”. It is
well-established company having fine track record. The company has incurred losses from its operational activities over a
year. However, the rating takes into consideration company’s healthy market
position in the Indian wireless telecommunication industry marked by its
adequate liquidity position. Further rating also takes into consideration
managerial and financial support that company receives from its parent
company. Trade relations are reported as fair. Business is active. Payments are
reported to be regular and as per commitment. In view of strong holding support, the Company can be considered good
for normal 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
US investment bank
Goldman Sachs has upgraded its outlook on Indian markets as it expects
positive impact of the election cycle.
India’s economy may
grow 4.7 % in the current financial year, lower than the official estimate of
4.9 %, Fitch Rating said. The global rating agency expects the economy to pick
up in the next two financial years.
Global ratings
agency Standard & Poor said increasing focus by India Inc on lowering debt
is likely to improve their credit profiles.
Singapore (1.1
million Indian tourists in 2012), Thailand (one million), the United Arab
Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred
holidays hotspots for Indians. The total figure is expected to increase to 1.93
million by 2017, according to the latest Eurmonitor international report.
There is a $29.34 bn
outward foreign direct investment by domestic companies between April and
January of 2013/14 which has seen some signs of recovery according to a Care
Ratings report.
There are 264 number
of new companies being set up every day on average during 2014. Most of them
are registered in Mumbai. India had 1.38 million registered companies at the
end of January, 2014.
Twitter like
messaging service Weibo Corporation has filed to raise $ 500 million via a US
initial public offering. Alibaba, which owns a stake in Weibo is expected to
raise about $ 15 billion New York this year in the highest profile Internet IPO
since Facebook’s in 2012.
Bharti Airtel has
raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at
a coupon rate of three per cent and maturing in 2020. This is the largest ever
bond offering by an Indian company in Swiss Francs. Bharat Petroleum
Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98
% coupon rate in February.
Indian Oil
Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex
at its almost complete Paradip refinery in Odhisha in three to four years. The
company board is set to consider the setting up of a 700000 tonne per annum
polypropylene plant at an estimated cost at Rs.3150 crore.
Global chief
information officers at gathering in Bangalore in April to meet Indian startups
at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in
the making.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Long term rating : AA |
|
Rating Explanation |
High degree of safety and very low credit
risk. |
|
Date |
April 03, 2014 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short term rating : A1+ |
|
Rating Explanation |
Very strong degree of safety and carry
lowest credit risk. |
|
Date |
April 03, 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
[CONTACT NO.: 91-22-71715000]
LOCATIONS
|
Registered/
Corporate Office : |
Peninsula
Corporate Park, Ganpatrao Kadam Marg, Lower Parel, Mumbai – 400013,
Maharashtra, India |
|
Tel. No.: |
91-22-66645000/ 66661222/
66661200 |
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Fax No.: |
91-22-24963645 |
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E-Mail : |
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Website : |
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Branch Offices : |
Located at: · Delhi Mumbai Bangalore Ahmedabad Jaipur Kolkata Lucknow Mohali Hyderabad Meerut Chennai Karnal Kochi Pune |
DIRECTORS
AS ON 08.08.2013
|
Name : |
Mr. Marten Pieters |
|
Designation : |
Managing director |
|
Address : |
Lyndewood House, Flat No 4, 1st Floor, 9
Bomanji Petit Road, Mumbai - 400026, Maharashtra, India |
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Date of Birth/Age : |
29.04.1953 |
|
Qualification : |
P.G in
Economics, Dutch Law |
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Date of Appointment : |
14.07.2009 |
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PAN No.: |
BBDPP1859D |
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DIN No.: |
02598456 |
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Name : |
Mr. Analjit Singh |
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Designation : |
Director |
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Address : |
15, Aurangzeb Road, New Delhi – 110011, India |
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Date of Birth/Age : |
11.01.1954 |
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Qualification : |
B.A, B.S, MBA
(Boston) |
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Date of Appointment : |
23.03.2006 |
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DIN No.: |
00029641 |
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|
|
|
Name : |
Mr. Chittranjan Dua |
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Designation : |
Director |
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Address : |
88, Sunder Nagar, New Delhi – 110003, India |
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Date of Birth/Age : |
03.11.1951 |
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Qualification : |
B.A. (Hon) &
M.A. (Hon) in Economics, LL.B. |
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Date of Appointment : |
27.09.2006 |
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DIN No.: |
00036080 |
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|
|
Name : |
Mr. Vikram Singh Mehta |
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Designation : |
Director |
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Address : |
18, Friends' Colony West, New Delhi – 110065, India |
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Date of Birth/Age : |
30.10.1952 |
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Qualification : |
BA Maths (Hons),
MA Economics, Oxford University and MA (Energy Economics) , Tufts University |
|
Date of Appointment : |
08.08.2013 |
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DIN No.: |
00041197 |
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|
Name : |
Mrs. Ashwani Windlass |
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Designation : |
Director |
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Address : |
N-53, Panchshila Park, New Delhi - 110017, India |
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Date of Birth/Age : |
02.07.1956 |
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Qualification : |
B.Com, MBA |
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Date of Appointment : |
26.05.2012 |
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DIN No.: |
00042686 |
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|
|
|
Name : |
Mr. Rajesh R Laddha |
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Designation : |
Director |
|
Address : |
3201/3202 of Tower, 4th Floor, Plant Godrej Simplex,
Starata, 30 Keshav Roa Kgadey Marg, Mumbai – 400011, Maharashtra, India |
|
Date of Birth/Age : |
07.05.1967 |
|
Qualification : |
MBA, CPA, CA,
CMA |
|
Date of Appointment : |
16.02.2012 |
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DIN No.: |
02228042 |
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|
|
|
Name : |
Mr. Nicholas Johnathan Read |
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Designation : |
Director |
|
Address : |
8, Cresta, Queens Hill Rise, Ascot, United Kingdom SL5 7DP |
|
Date of Birth/Age : |
29.09.1964 |
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Qualification : |
F.C.M.A., B.A.
(Hons) Accounting and Finance |
|
Date of Appointment : |
28.11.2008 |
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DIN No.: |
02392270 |
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|
|
|
Name : |
Mr. John William Lorimer Otty |
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Designation : |
Director |
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Address : |
1, Harvest Place, Wargrave, Reading Berkshire U. K. RG10 8AQ |
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Date of Birth/Age : |
13.01.1964 |
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Qualification : |
Degree in
Electronic Engineering from Cambridge University, ACA - 1989 |
|
Date of Appointment : |
08.08.2013 |
|
DIN No.: |
02432741 |
KEY EXECUTIVES
|
Name : |
Mr. Pushkaraj Vishnu Joshi |
|
Designation : |
Company Secretary |
|
Address : |
5-23, Third Floor, Goregaonkar Lane, Near Central
Cinema, Girgaon, Mumbai – 400004, Maharashtra, India |
|
Date of Birth/Age : |
14.05.1974 |
|
Qualification : |
B.Com, ACA, ACS, PGDBA, ACIS, AIII, CMA, LLB, ARMFA |
|
Experience : |
16 Years |
|
Date of Appointment : |
01.11.2010 |
|
PAN No.: |
ABBPJ7121R |
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|
|
|
Name : |
Prasanna Kumar Das |
|
Designation : |
VP - Distribution Projects |
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|
Name : |
Ajay Patel |
|
Designation : |
EVP - Central Operations Group |
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|
Name : |
Sunil Sood |
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Designation : |
Chief Operating Officer |
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|
Name : |
Deepak Sachdeva |
|
Designation : |
GM - Sales and Marketing Ops |
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|
Name : |
Suresh Bagrodia |
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Designation : |
EVP – Finance and Accounts |
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|
Name : |
Balesh Sharma |
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Designation : |
CEO (Malta) |
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|
Name : |
Zahir Wykes |
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Designation : |
VP Retail Business Experience |
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|
Name : |
Himanshu Jain |
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Designation : |
GM- Applic. Devpt and Maint |
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|
Name : |
Rajiv Kohli |
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Designation : |
Operations Director - North |
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|
Name : |
JPS Choudhary |
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Designation : |
AVP - Human Resources |
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|
Name : |
Sambasivan G |
|
Designation : |
EVP - Finance |
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|
Name : |
Jagadish B |
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Designation : |
AVP - HR Business Partner |
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|
Name : |
Sundeep Kathuria |
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Designation : |
Sr. VP - Regulatory |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 08.08.2013
|
Names of Shareholders (Table A**) |
|
No. of Shares |
|
Central Depository Services (India) Limited, India |
|
395251799 |
|
Vodafone Telecommunications(India) Limited, India |
|
18835021 |
|
Telecom Investments India Private Limited, India |
|
30 |
|
|
|
|
|
Total |
|
414086850 |
(Table A**)
|
Names of Shareholders |
|
No. of Shares |
|
Vodafone Telecommunications (India) Limited |
|
19642064 |
|
Mobilvest |
|
39684917 |
|
Trans Crystal Limited |
|
34600965 |
|
Al-Amin Investments Limited |
|
19238530 |
|
Prime Metals Limited |
|
6346082 |
|
CCII (Mauritius) Inc |
|
10568355 |
|
Euro Pacific Securities Limited |
|
94459317 |
|
Asian Telecommunications Investments (Mauritius) Limited |
|
23218582 |
|
Telecom Investments India Private Limited |
|
53658489 |
|
Usha Martin Telematics Limited |
|
25123355 |
|
Jaykay Finholding (India) Private Limited |
|
2122557 |
|
Piramal Enterprises Limited |
|
45425328 |
|
Omega Telecom Holdings Private Limited |
|
21163258 |
|
|
|
|
|
Total |
|
395251799 |
AS ON 08.08.2013
|
Equity Share Breakup |
Percentage of Holding |
|
Category |
|
|
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
64.38 |
|
Bodies
corporate |
35.62 |
|
|
|
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Providing Mobile Telecommunication Services. |
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Products/ Services : |
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GENERAL INFORMATION
|
No. of Employees : |
Information declined by the management |
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Bankers : |
ICICI Bank Limited |
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Facilities : |
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Banking
Relations : |
-- |
|
|
|
|
Financial Institution : |
· IL & FS Trust Company Limited IL & FS Financial Centre, Plot No C22, G Block, Bandra
Kurla Complex Bandra [East], Mumbai - 400051, Maharashtra, India |
|
|
|
|
Auditors : |
|
|
Name : |
Delloite Haskins and Sell Chartered Accountants |
|
Address : |
Tower 3, 27th-32nd Floor, India Bulls
Finance Centre, Elphinstone Mill Compound, Senapati Bapat Marg, Elphinstone
[West], Mumbai – 400013, Maharashtra, India |
|
Income-tax
PAN of auditor or auditor's firm : |
AACFD4815A |
|
|
|
|
Holding
Company : |
Vodafone Group Plc |
|
|
|
|
Intermediate
Holding Company : |
Vodafone International Holdings B.V. |
|
|
|
|
Subsidiary
Company : |
·
Vodafone West Limited [U32100GJ1995PLC035282] Vodafone South
Limited [U74899DL1995PLC074451] Vodafone Cellular
Limited [U64202TZ1995PLC007674] Vodafone Digilink
Limited [U64201DL1997PLC088088] Vodafone Mobile
Services Limited [U64202DL1992PLC088087] Vodafone Shared
Services Limited [U74900GJ2009PLC058189] Vodafone Spacetel
Limited [U72200DL1997PLC085764] Mobile Commerce
Solutions Limited [U74900MH2008PLC183456] Vodafone Towers
Limited [U64200DL2007PLC207420] Unique Intermediary
Facilitators [U65999MH2008NPL182612] Vodafone East
Limited [U32204WB1992PLC079998] Connect (India)
Mobile Technologies Private Limited ( w.e.f February 24, 2012) [U32202MH1999PTC120818] |
|
|
|
|
Fellow
Subsidiary Company
: |
· Vodafone Investments Luxembourg S.A.R.L Vodafone
Group Services Limited Vodafone
India Services Private Limited [U64201GJ1999PTC059542] Vodafone
Procurement Company Vodafone
Netherlands Vodafone
Qatar, Q.S.C Vodafone
Sales and Services Limited Vodafone
Ireland Marketing Limited Vodafone
Overseas Finance Limited Vodafone
Albania Vodafone
Egypt Vodafone
Czech Republic a.s. Vodafone
D2 GmbH Vodafone
Panafon S.A. Vodafone
Hungary Limited Vodafone
Malta Limited Vodafone
Netherlands Vodafone
Portugal Vodafone
Romania S.A. Vodafone
Spain Telsim
Mobile Turkey Vodafone
Limited Vodafone
Omnitel N.V. Vodafone
Espana S.A. Vodacom
Group (Pty) Limited Vodafone
Fiji Vodafone
Asia Pacific Limited Vodafone
Germany (Mobile) Ghana
Telecommunications Company Limited Vodafone
Turkey Vodacom
South Africa Vodafone
New Zealand Limited Cable
and wireless (w.e.f March 31,2013) Vodafone
Global Enterprise INC Vodafone
Australia Limited Vodafone
Procurement Company Sarl |
|
|
|
|
Joint
Venture : |
Indus Towers Limited [U92100DL2007PLC170574] |
CAPITAL STRUCTURE
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
500,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 5000.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
414,086,850 |
Equity Shares |
Rs. 10/- each |
Rs. 4140.870
Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
4140.870 |
4140.870 |
4140.900 |
|
(b) Reserves & Surplus |
72870.000 |
76298.000 |
80739.200 |
|
(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) |
77010.870 |
80438.870 |
84880.100 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
70656.000 |
70090.000 |
64387.200 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
252.300 |
|
(c) Other long
term liabilities |
1881.000 |
1294.000 |
459.800 |
|
(d) long-term
provisions |
3717.000 |
2645.000 |
1621.400 |
|
Total Non-current
Liabilities (3) |
76254.000 |
74029.000 |
66720.700 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
53893.000 |
53981.000 |
43757.100 |
|
(b)
Trade payables |
9633.000 |
7274.000 |
7224.200 |
|
(c)
Other current liabilities |
5527.000 |
5338.000 |
4392.200 |
|
(d) Short-term
provisions |
292.000 |
210.000 |
193.000 |
|
Total Current
Liabilities (4) |
69345.000 |
66803.000 |
55566.500 |
|
|
|
|
|
|
TOTAL |
222609.870 |
221270.870 |
207167.300 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
13040.000 |
11575.000 |
8927.600 |
|
(ii)
Intangible Assets |
32452.000 |
34215.000 |
35419.700 |
|
(iii)
Capital work-in-progress |
1938.870 |
2210.870 |
2360.200 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
71224.000 |
71226.000 |
69725.600 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
81780.000 |
59524.000 |
21147.000 |
|
(e) Other
Non-current assets |
316.000 |
335.000 |
0.000 |
|
Total Non-Current
Assets |
200750.870 |
179085.870 |
137580.100 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a) Current
investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
0.000 |
0.000 |
0.000 |
|
(c)
Trade receivables |
1942.000 |
1849.000 |
1692.200 |
|
(d) Cash
and cash equivalents |
2942.000 |
2302.000 |
2353.300 |
|
(e)
Short-term loans and advances |
14927.000 |
36463.000 |
59471.700 |
|
(f)
Other current assets |
2048.000 |
1571.000 |
6070.000 |
|
Total
Current Assets |
21859.000 |
42185.000 |
69587.200 |
|
|
|
|
|
|
TOTAL |
222609.870 |
221270.870 |
207167.300 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations |
32227.000 |
29875.000 |
26834.600 |
|
|
|
Other Income |
17222.000 |
10822.000 |
8296.600 |
|
|
|
TOTAL |
49449.000 |
40697.000 |
35131.200 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
21203.000 |
18428.000 |
15697.300 |
|
|
|
Employee benefit expense |
4457.000 |
4281.000 |
3794.000 |
|
|
|
Other expenses |
6141.000 |
6495.000 |
6406.100 |
|
|
|
TOTAL |
31801.000 |
29204.000 |
25897.400 |
|
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
17648.000 |
11493.000 |
9233.800 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
12793.000 |
11886.000 |
6060.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
4855.000 |
(393.000) |
3173.800 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
5066.000 |
4300.000 |
1824.100 |
|
|
|
|
|
|
|
|
|
|
EXCEPTIONAL ITEMS |
(3218.000) |
0.000 |
(12447.100) |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX |
(3429.000) |
(4693.000) |
(11097.400) |
|
|
|
|
|
|
|
|
|
Less |
TAX |
0.000 |
(252.000) |
476.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX |
(3429.000) |
(4441.000) |
(11573.600) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Roaming Revenue |
473.000 |
620.000 |
687.200 |
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Capital Goods |
3289.000 |
2115.000 |
1563.800 |
|
|
|
|
|
|
|
|
|
Earnings/ (Loss)
Per Share (Rs.) |
(8.28) |
(10.72) |
(27.95) |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
(6.93)
|
(10.91)
|
(32.94)
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(10.64)
|
(15.71)
|
(41.35)
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(2.29)
|
(3.17)
|
(8.22)
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.04)
|
(0.06)
|
(0.13)
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
1.62
|
1.54 |
1.27 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.32
|
0.63 |
1.25 |
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 |
4140.900 |
4140.870 |
4140.870 |
|
Reserves & Surplus |
80739.200 |
76298.000 |
72870.000 |
|
Net
worth |
84880.100 |
80438.870 |
77010.870 |
|
|
|
|
|
|
long-term borrowings |
64387.200 |
70090.000 |
70656.000 |
|
Short term borrowings |
43757.100 |
53981.000 |
53893.000 |
|
Total
borrowings |
108144.300 |
124071.000 |
124549.000 |
|
Debt/Equity
ratio |
1.274 |
1.542 |
1.617 |
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 |
26834.600 |
29875.000 |
32227.000 |
|
|
|
11.330 |
7.873 |
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 |
26834.600 |
29875.000 |
32227.000 |
|
Profit/ (Loss) |
(11573.600) |
(4441.000) |
(3429.000) |
|
|
(43.13%) |
(14.87%) |
(10.64%) |
LOCAL AGENCY FURTHER INFORMATION
CURRENT MATURITIES
OF LONG TERM DEBT
|
Particulars |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
31.03.2011 (Rs.
In Millions) |
|
|
|
|
|
|
Current maturities of long-term debt |
804.000 |
782.000 |
31.600 |
|
|
|
|
|
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
-- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm
/ promoter involved in |
Yes |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director,
if available |
Yes |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
LITIGATION
DETAILS
|
HIGH COURT OF
BOMBAY |
|
CASE DETAILS BENCH: BOMBAY |
|
Presentation Date: 25.10.2013 |
|
Lodging No: APPL/426/2013 Filing Date: 25.10.2013 |
|
Main Matter Lodging No: CPL/683/2009 Reg.
No.: CP/712/2009 |
|
Petitioner: COMMISSIONER OF INCOME TAX-7 Respondent: VODAFONE
INDIA LIMITED Petn. Adv : ABHAY AHUJA (0) District: MUMBAI |
|
Bench: DIVISION Status: Pre-Admission
Category: APPEALS Next Date: 16.06.2014
Stage: APPEALS FOR ADMISSION - FRESH [ORIGINAL SIDE MATTERS] Coram: HON’BLE SHRI JUSTICE S.J. VAZIFDAR HON’BLE SHRI JUSTICE B.P.
COLABAWALLA Last Date: 24.03.2014 Stage:
APPEALS FOR ADMISSION - FRESH [ORIGINAL SIDE MATTERS] Last Coram: HON’BLE SHRI JUSTICE S.J. VAZIFDAR HON’BLE SHRI JUSTICE
B.P. COLABAWALLA |
|
Act: Companies Act and Rules 1956 |
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE CREATION/MODIFICATION |
CHARGE AMOUNT SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST NUMBER (SRN) |
|
1 |
80039461 |
25/05/2009 * |
280,000,000,000.00 |
IL & FS TRUST COMPANY LIMITED |
IL & FS
FINANCIAL CENTRE, PLOT NO C22, G BLOCK, BANDRA KURLA COMPLEX BANDRA [EAST],
MUMBAI - 400051, MAHARASHTRA, INDIA |
A65857302 |
* Date of charge modification
UNSECURED LOANS
|
UNSECURED LOANS |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
|
LONG-TERM BORROWINGS |
|
|
|
Loans and
advances from related parties |
11945.000 |
10575.000 |
|
SHORT TERM BORROWINGS |
|
|
|
Term loans from
banks |
7000.000 |
14481.000 |
|
Term loans from
others |
1893.000 |
0.000 |
|
Commercial paper |
45000.000 |
39500.000 |
|
|
|
|
|
Total |
65838.000 |
64556.000 |
CHANGE OF ADDRESS:
The Registered office of the company has been shifted from Hutch Houde, G
Kadam Marg, Peninsula Corporate Park, L Parel, Mumbai - 400013, Maharashtra,
India to the present address w.e.f.21.09.2007.
BACKGROUND
The Company is engaged in providing mobile telecommunication services in
the Mumbai Metro Circle.
PERFORMANCE
During the year,
on a standalone basis:
Revenue from operations of the Company stood at Rs 32227.000 millions,
representing a growth of 8 % as compared to previous year, primarily driven by
growth in voice minutes and data revenue.
The PBITDA increased to Rs 17648.000 millions, a growth of 54 % compared
to the previous year, mainly driven by cost reduction measures undertaken by
the Company during the year.
The Loss after tax stood at Rs 3429.000 millions for the current year as
compared to Rs 4441.000 millions during the previous year.
YEAR IN RETROSPECT
The year 2012-13 has seen further corporate changes with respect to
Vodafone India Group and the following major events occurred during the year:
1.
Proposed Amalgamation of Telecom Operating
Subsidiaries
2.
Status of Merger of Tower Company with Indus Towers
Limited
3.
Spectrum Auctions Update.
4.
Withdrawal of High Court Order on Demerger of Long
Distance Business
Proposed
Amalgamation of Telecom Operating Subsidiaries
With the objective to restructure, amalgamate and consolidate the
business of Vodafone India Limited (VIL) carried out through certain of its
subsidiaries which form a part of VIL's group, two Schemes of Amalgamation have
been undertaken, subject to necessary approvals, if any required and have filed
the schemes with the respective High Court of their jurisdiction during the
year. They are:
1.
Vodafone Digilink Limited, Vodafone South Limited,
Vodafone East Limited and Vodafone Cellular Limited to amalgamate with and into
Vodafone Mobile Services Limited;
2.
Vodafone Spacetel Limited and Vodafone West Limited
to amalgamate with and into Vodafone Mobile Services Limited;
It is believed that the above mentioned two merger schemes would be in
the interests of all the stakeholders of the respective Amalgamating Companies,
as it would result in increased operational efficiencies, bring economies of
scale and result in synergetic integration of businesses presently being
carried on by the Amalgamating Companies. These Scheme will further result in
consolidation of the business of provision and marketing of telecom services
and products in one entity and would strengthen the position of the proposed
merged entity i.e., Vodafone Mobile Services Limited, by enabling it to harness
and optimise the synergies of the Amalgamating Companies.
The proposed amalgamation is in line with the global trend to achieve
size, scale, integration and greater financial strength and flexibility, in the
interests of maximising shareholder value. The proposed merged entity i.e.,
Vodafone Mobile Services Limited is likely to achieve higher long-term
financial returns than could be achieved individually by each of these
subsidiaries.
Status of Merger
of Vodafone infrastructure Limited (Tower Company) with Indus Towers Limited
As informed to the shareholders in the last annual report, the Tower
Company, together with Idea Cellular Towers Infrastructure Limited (ICTIL),
Bharti Infratel Ventures Limited (BIVL) and Indus Towers Limited (Indus), a joint
venture between Vodafone India Limited, Idea Cellular Limited and Bharti Airtel
Limited, had filed a scheme of arrangement in the Hon'ble Delhi High Court
under section 391 to 394 of the Companies Act, 1956, for transfer of all assets
and liabilities of the Tower Company, ICTIL and BIVL to Indus with effect from
1 April 2009.
On 18 April 2013, the High Court has sanctioned the said scheme which
also provides for winding up of the Tower Company. The Delhi High Court Order
sanctioning the merger of VINFL with Indus has been received and the copy
thereof is filed with the Registrar of Companies and is effective w.e.f 11 June
2013. With this the Indus merger scheme has been sanctioned and made effective.
Spectrum won in
Auctions
During the year, the Department of Telecommunications had announced
auction of spectrum in October 2012 in the 1800MHz Band. Certain subsidiaries
viz: Vodafone South Limited, Vodafone Spacetel Limited, Vodafone Cellular
Limited and Vodafone Digilink Limited participated and won spectrum in 14
Service Areas / Circles
1.25 MHz in MandG, Uttar Pradesh (East), Kerala, Punjab and Himachal
Pradesh
2.5 MHz in Assam, North East, Bihar, Jammu and Kashmir, Orissa, Madhya
Pradesh, Uttar Pradesh (West), Haryana and West Bengal
Application for
Withdrawal of High Court Order on Demerger of Long Distance Business
Further to the update given to the shareholders in the last annual
report, Vodafone Spacetel Limited (VSPL) and Vodafone South Limited (VSL) had
applied to the Department of Telecommunications seeking its approval for
effecting the demerger of the Long Distance Business from VSL to VSPL. However,
subsequently, the DoT had denied approval to the Scheme. Thereafter, VSL and
VSPL had in their respective commercial and business interests applied the
Hon'ble Delhi High Court seeking necessary Order / Declaration that the Scheme
has not become effective. The Hon'ble Delhi High Court has considered the
application and has passed suitable order granting withdrawal of the said Scheme.
OUTLOOK FOR FY14
With the select exit and scaling down of operations by some players,
some level of market rationalization is expected in FY14. The change in the
market structure from high gross additions post the new verification norms is
expected to reflect in improving quality focus and healthier subscriber base.
Tightened acquisition norms and reduced viability of some players will likely
see a reduction in competitive intensity. The current trend of rationalization
of acquisition and free minutes and discounts is expected to continue in the
next year. This is most likely to translate into improvement in revenue per
minute. However regulatory uncertainties over license extension and auctions,
MandA norms and regulation impacting revenue streams like 3G ICR, free roaming
will have a significant impact.
Revenue growth in FY14 is expected to be driven by a mix of growth in
subs, MOU per subscriber, and RpM hardening. Increasing data usage resulting
from growth of smartphone penetration and high bandwidth consuming
applications, video streaming and downloads would also be a contributing factor
to revenue growth during FY14. Vodafone is one among the top multinational
consumer brands in India and we expect to leverage the brand especially in the
areas of fixed and mobile data business with Multinationals, Small and Medium
enterprise segments.
Vodafone will also continue expanding its rural coverage, monetize its
3G/ Broadband investments and exploit new revenue opportunities in Enterprise
and SME sectors. Vodafone also plans to extend the m-pesa services across
telecom circles over next 12 to 18 months. The focus on cost reduction and
working capital improvement will continue with more rigor in the coming year.
Given the strong presence across India and brand strength of Vodafone, the
management is confident of delivering consistent results.
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
|
1. Regulatory Matters: |
|
|
|
a) Demand from Department
of Telecom (DoT) for one-time fee for Spectrum in excess of 6.2 MHz and in
excess of 4.4 MHz. TDSAT has stayed the DoT's order till July, 2013. The
Company has obtained legal counsel that such fee cannot be levied for
Spectrum allocated in accordance with policies as at the date of such
allotments. |
6067.000 |
0.000 |
|
b) Demands
(March 2012: Show cause notice) received from DoT for short payment of
licence fees for 2006-07 and 2007-08 relating to the computation of AGR for
determining licence fees payable, including interest. The TDSAT has stayed
the demand order till the date of next hearing. |
410.000 |
553.000 |
|
c) Demand from DoT, including interest and penalty, on provisional
assessment of annual Licence Fees for FY 2008-09. |
2332.000 |
0.000 |
|
d) Demands from
DoT towards short payment of licence fees (including interest and penalties)
with respect to deductions claimed on PSTN and roaming charges (access
charges). |
1070.000 |
0.000 |
|
e) Additional charges for license and WPC fees, including interest and
penalty, levied by DoT and contested by the Company. |
1336.000 |
562.000 |
|
f) Demand from BSNL and MTNL for Port charges. |
15.000 |
129.000 |
|
g) Show cause
notice by DoT for delays in submission of self-certificates required under
Electro-magnetic field exposure norms, contested by the company. |
9.000 |
0.000 |
|
2. Income Tax
matters pending in appeal in respect of disallowance under section 80IA,
other disallowances and non deduction of tax at source * |
17660.000 |
7401.000 |
|
3. Service Tax demands in respect of disallowance of CENVAT credit on
towers, shelters and other matters. |
1462.000 |
1361.000 |
|
4. Custom duty for classification issue. |
67.000 |
65.000 |
|
5. Consumer / civil cases. |
19.000 |
34.000 |
|
*In addition to above, the Company has received few draft assessment
orders, the impact of which is presently not determinable. Future cash
outflows in respect of the above matters are determinable only on receipt of
judgements / decisions pending at various forums / authorities |
||
|
Guarantees: |
|
|
|
Joint and
several guarantees given to banks by the Company together with certain of its
Indian subsidiaries for loans , including interest thereon: |
284108.000 |
297766.000 |
|
Total amount of cross guarantees utilised against the above guarantee |
236722.000 |
234645.000 |
FIXED ASSETS:
· Plant and equipment
Other
plant and equipment
Furniture
and fixtures
Vehicles
Motor
vehicles
Office
equipment
Computer
equipments
Other
equipments
Leasehold
improvements
Computer
software
Licenses
and franchise
PRESS RELEASES:
FIPB TO TAKE UP
VODAFONE’S FDI PROPOSAL ON NOVEMBER 13
New Delhi, November 7, 2013
The Foreign Investment Promotion Board will take a decision on November 13 on British telecom major Vodafone’s proposal seeking approval to invest Rs 101410.000 Millions for raising its stake in India unit to 100 per cent. CGP India Investments Limited, an indirect Mauritian subsidiary of Vodafone International Holdings B V, has applied to FIPB seeking its approval to buy stake held by minority shareholders in Vodafone India Limited.
The application is listed on the agenda of November 13 meeting of the Foreign
Investment Promotion Board (FIPB), which is headed by Economic Affairs
Secretary Arvind Mayaram.
The UK-based telecom major at present holds 64.38 per cent stake in its
Indian arm Vodafone India.
After the FIPB approval, the matter will go to the Cabinet Committee on
Economic Affairs upon whose approval Vodafone India is expected to become the
first mobile operator in the country to be fully owned by a foreign company.
The government in August relaxed rules to allow foreign companies to own
100 per cent of their businesses in India. Earlier, the FDI cap in the sector
was 74 per cent.
Vodafone’s minority investors include billionaire industrialist Ajay
Piramal, who holds 11 per cent stake in India’s second largest telecom company
by subscriber base.
The remaining nearly 25 per cent interest is with undisclosed minority
shareholders. Analjit Singh, Vodafone India non-executive chairman, is
understood to be one among them.
“The total inflow of foreign investment into India as a result of the proposed
transactions will be approximately Rs 101410.000 Millions. Following the
completion of these transactions, Vodafone will also consider providing
additional funding to VIL by subscribing to equity shares of VIL,” Vodafone had
earlier said.
Vodafone, which entered India in 2007 by buying Hutchison Whampoa in
Hutchison-Essar Limited in a $ 11 billion deal, directly holds 64.38 per cent
stake in Vodafone India.
The telecom major was slapped with a tax liability of over Rs 112000.000
Millions, along with interest, for the 2007 acquisition and is in discussions
with the government to resolve the issue.
FIPB TO TAKE UP
VODAFONE’S RS.101410.000 MILLIONS PROPOSAL ON 6
DECEMBER
Mon, Nov 25 2013
New Delhi: The Foreign Investment Promotion Board (FIPB) will on 6 December
consider the Rs.101410.000 Millions proposal of UK
telecom giant Vodafone to acquire the remaining stake
in its Indian arm.
“The FIPB will meet on 6 December. Vodafone is listed on the meeting
agenda,” an official source told. CGP India Investments
Limited, an indirect Mauritian unit of Vodafone International Holdings
BV, has sought approval from the FIPB, headed by Economic Affairs Secretary Arvind Mayaram, to buy the stake held by minority
shareholders in Vodafone India Limited.
The UK-based telecom major holds a 64.38% stake in the Indian unit. The
proposal, which was listed on the agenda of FIPB’s meeting on 13 November, was
not taken up for want of comments from various ministries.
Opinions had been sought from the Department of Telecom, Department of
Industrial Policy and Promotion, Ministry of Home Affairs, Ministry of External
Affairs and the Department of Revenue.
The government had in August allowed foreign telecom companies to own
100% of their businesses in India.
Previously, the foreign direct investment cap in the sector was 74 %.
Vodafone’s minority investors include billionaire industrialist Ajay Piramal, who holds an 11% stake in India’s
second-largest telecom company by subscribers. The remaining stake is with
undisclosed shareholders. Analjit Singh, Vodafone
India’s non-executive chairman, is understood to be among them.
“The total inflow of foreign investment into India as a result of the
proposed transactions will be approximately Rs.101410.000
Millions. Following the completion of these transactions, Vodafone will also
consider providing additional funding to VIL by subscribing to equity shares of
VIL,” Vodafone had said.
Vodafone entered India in 2007 by buying Hutchison Whampoa’s stake in Hutchison-Essar Limited in a USD 11 billion deal.
The company was slapped with a tax liability of over Rs.112000.000 Millions, along with interest, for the 2007
acquisition and is in talks with the government to resolve the issue.
VODAFONE TO RAISE
INDIAN UNIT STAKE TO 100% FOR RS 101410.000 MILLIONS
Oct 29, 2013
Vodafone Group Plc. said it has sought the government's approval to
invest Rs 101410.000 Millions to raise its stake in its India unit to 100%,
becoming the first overseas telecom operator to take advantage of a relaxation
in foreign investment rules in the sector.
UK-based Vodafone entered India in 2007 by buying Hutchison Whampoa's
local mobile phone business for around $11 billion. Its current direct stake in
Vodafone India Ltd. (VIL) stands at 64.38%, and overall holding is at 84.5%.
Piramal Enterprises holds about 11%, while the balance is owned by financial
investors including Analjit Singh, Vodafone India's non-executive chairman.
"We have always said we would like to increase our holding in the
business and this further investment demonstrates Vodafone's long-term commitment
to India," the world's second largest mobile phone company said in a
statement Tuesday.
It added that once the current transaction is completed, the company
would consider infusing more funds into its domestic unit by subscribing to
shares of Vodafone India which has grown to become the country's second largest
mobile phone operator by subscribers.
"Looking ahead, Vodafone will continue to invest in India to bring
the benefits of mobile communications and financial inclusion to more and more
people across the country," the company said. Analjit Singh or officials
at Piramal Enterprises couldn't be reached for comment.
Vodafone's move has been widely anticipated since the government lifted
the maximum foreign investment limit on the telecom sector from 74% earlier
this year. "The government has allowed 100% FDI in telecom and operators
will avail this to iron out the legal and operational complexities in running
joint venture partnerships," Hemant Joshi of Deloitte Haskins & Sells
said.
Other Indian telecom operators with majority foreign owners include
Sistema Shyam Teleservices Limited, a unit of Russia's Sistema JSFC; Uninor, a
unit of Norway's Telenor ASA; and Aircel Limited, majority owned by Malaysia's
Maxis. Operators such as Tata Teleservices Limited and Idea Cellular Limited
also have strategic partners in Japan's NTT DoCoMo and Axiata, respectively.
"The cap on the FDI made it mandatory to seek approvals from all
partners at the proportionate level but with just one owner in the boardroom,
the turn around time to make decisions will be much lesser and it will simplify
the structure," Joshi added. For Vodafone, India is a key market.
The fastest growing and second largest telecom market in the world is
also one the British telecom major's major revenue earning geographies.
Moreover, Vodafone India needs cash ahead of spectrum auctions likely in
January next year. While the company hasn't confirmed its participation in
future auctions, Vodafone India head Marten Pieters has said that operators do
need bandwidth to deepen their services.
The India chief has also stated that rules permitting, Vodafone may also
participate in consolidation in Indian telecom for which the company would need
cash.
The British company is flush with funds after its $130 billion deal with
US's Verizon, and has said that it plans to increase its capital expenditures
by $9 billion over the next three financial years, mainly to improve the
quality of its network and focus on wireless broadband for subscribers in Europe
and emerging markets such as India and South Africa.
Vodafone's latest move will also be a shot in the arm for the Indian
government struggling to revive an economy whose growth has slowed to its
lowest in a decade, as it faces challenges of wide fiscal and current account
deficits, and a weak rupee. New Delhi has been desperate for foreign funds to
limit its current account gap this fiscal year ending March 2014 to less than
3.7% of GDP. The company though has had a rough time since it entered India.
The group booked a Ł2.3 billion impairment charge on its Indian
operations in May 2010 due to stiff competition and a fierce price war. It is
also embroiled in a longstanding dispute against the government over local
authorities' moves to tax and levy penalties worth Rs 200000.000 Millions over
the UK company's stake buy from Hutchison Whampoa.
Both parties have agreed to settle it through arbitration. Vodafone has
also moved court against a separate tax demand in an alleged transfer pricing
case. Over time, Vodafone has also struggled with finding partners for its
additional stake. It entered the company with its predecessor Hutchison's
partners - the Essar group. But at the end of a three year period fraught with
regulatory and some managerial disagreements, the two partners parted ways in
2010.
At the time, Vodafone sought an Indian partner to offload 11% equity
that the Essar group held in India. The Piramal group, that was then just
flushed with cash from sale of assets to Abbott, picked up the stake for $640
million with the guarantee of a two year exit with a 17-20% return on
investment. The deadline for that exit is in March.
Vodafone's proposal to buy back equity also dashes hopes of an immediate
initial public offer, which was a likely exit route for the Piramal group.
Despite its tax woes, competitive environment and the regularity
uncertainty following the multibillion dollar 2G spectrum allocation scam, the
company remains upbeat about the sector which is gradually seeing a return of
pricing stability.
The regulator's recommendations on slashing base price of spectrum to be
auctioned in some months and a flat spectrum usage charge, and news that the
government is considering bandwidth sharing and trading and sharing, as well as
industry friendly M&A rules have added to an upbeat mood in the sector.
PIRAMAL TO SELL
STAKE IN VODAFONE ONLY NEXT YEAR
Oct 31, 2013
MUMBAI: The Piramal Group
expects the transaction to sell its stake in Vodafone India back to the telecom
company's UK parent only in the next financial year starting April 1, the
pharmaceutical company's chairman said, adding that the returns on the group's
investment will be "as planned".
On Tuesday, Vodafone Group said it sought the government's approval to
invest Rs 101410.000 Millions to raise its stake in its India unit to 100%,
becoming the first overseas telecom operator to take advantage of a relaxation
in foreign investment rules in the sector.
Vodafone, which entered the country in 2007 by buying Hutchison Whampoa's
local mobile phone business for around $11 billion, currently directly owns
64.38% in Vodafone India Limited (VIL). It, however, indirectly holds 84.5% in
VIL.
Piramal Enterprises holds about 11%, while the balance is owned by
financial investors, including Analjit Singh, Vodafone India's non-executive
chairman.
"This is a good thing. It is happening as we had envisaged,"
Piramal Group chairman Ajay Piramal told ET on Wednesday. He described
Vodafone's decision as a step in the right direction for the Piramal Group. The
Piramal Group had earlier anticipated it would exit through an initial public
offer of Vodafone India shares. Exit through IPO or not, the Piramal Group is
more concerned about the return on its investment, which at the time of investment
in 2011 it had said should be between 17% and 20% annually.
"It will have a return as planned," said Piramal, adding that
it really didn't matter how the exit was taking place. Piramal, however, hasn't
yet decided where he would deploy the funds from the stake sale.
"We will see where it goes at the time," said Piramal. The
Piramal Group had always maintained Vodafone for it was a financial parking of
resources from its deal with Abbott. In September 2010, the group sold its
profit making India pharmaceutical business putting around Rs 100000.000
Millions in its coffers, net of tax and debt repayment requirements.
The group announced it was looking to enter new businesses, but
meanwhile the cash lay idle.
Almost a year later, the group invested over $1.2 billion, (roughly Rs
72000.000 Millions at current exchange rate, but closer to Rs 50000.000
Millions when it was invested) to pick up 11% in Vodafone India from Vodafone's
then partner, the Essar group.
Piramal had then said that the investment in Vodafone was to buy time
till current research activities, including drug discovery business developed.
The company also has investments in financial services which could need capital
by next year. However, the group hasn't made any significant announcement on
drug discovery advancement or trials of technology that could need such a large
investment, said an analyst with a domestic brokerage.
BOMBAY HIGH COURT
DISMISSES VODAFONE'S PLEA IN TRANSFER PRICING CASE
Sep 6, 2013
MUMBAI: The Bombay High Court
on Friday dismissed a petition filed by Vodafone India Services Private
Limited, which had argued that the income tax department had no jurisdiction
over the UK-based telecom company's outsourcing unit in Pune.
The court, while dismissing the petition, clarified that transfer
pricing authorities have the right to investigate suo-moto on any cross border
deals, and gave the telecom company the option to seek an alternate remedy.
The court also directed the tax department not to serve an order or final
assessment notice till November 30.
A division bench comprising Justice SJ Vazifdar and Justice RY Ganoo
said in an order, "We found that in an earlier case (old Vodafone
litigation) alternate remedy was not argued, but here the parties have argued
about alternate remedy at length and hence they have the option to go to the
Income Tax Appellate Tribunal (ITAT)."
A division bench of the court suggested to Vodafone to appeal against
the tax order in ITAT. In February 2012, the British telecom group had knocked
at the court's door, challenging the jurisdiction of the tax department's
transfer pricing order that proposed to add around Rs 85000.000 Millions to its
Indian subsidiary's taxable income.
When asked whether the verdict would strengthen the income tax (IT)
department's stance in other transfer pricing cases, Tejveer Singh, senior
standing counsel for the income tax department, said, "Once a judgment is
delivered on a specific point of law, it acts as a precedent and is binding for
that specific point of law and the onus shifts to the other side to prove that
the judgement is distinguishable.""
Transfer pricing is the practice of arm's length pricing for
transactions between group companies to ensure that a fair price is levied.
"The Bombay High Court's decision today focused solely on procedure
and not on the merits of Vodafone's case," said a Vodafone spokesperson in
response to an email query. "The Court ruled that the matter should be
looked at by the tax tribunal in the first instance, rather than passing it
directly to the Bombay high court. The high court also extended the stay on the
final assessment order, already granted by the court and the company now has
almost twelve weeks to review its options."
In a similar dispute in December 2011, the Bombay high court had
dismissed metals giant Hindalco's writ petition that challenged a transfer
pricing order that sought to add nearly Rs 11550.000 Millions to the company's
taxable income. The high court observed that the Birla Group entity could exercise
alternate remedies or forums for an appeal, including the Dispute Resolution
Panel.
Vodafone is embroiled in the most controversial tax dispute with the
government for its acquisition of Hutchison Whampoa's Indian arm in 2007. Post
this transaction, the IT authorities raised a Rs 112000.000 Millions tax demand
which was challenged by the British company in both the high court as well as
Supreme Court. The apex court ruled in favour of Vodafone, saying tax
authorities don't have any jurisdiction to tax the acquisition. However, the
government revived the case by introducing retrospective amendment, which
affected other such big-ticket deals as well.
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. 58.59 |
|
|
1 |
Rs. 98.66 |
|
Euro |
1 |
Rs. 79.81 |
INFORMATION DETAILS
|
Information
Gathered by : |
HTL |
|
|
|
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
BVA |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
-- |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTERS |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
62 |
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.