MIRA
INFORM REPORT
|
Report Date : |
01.09.2014 |
IDENTIFICATION DETAILS
|
Name : |
VIDEOCON TELECOMMUNICATIONS LIMITED (w.e.f. 29.12.2009) |
|
|
|
|
Formerly Known
As : |
DATACOM SOLUTIONS LIMITED (w.e.f. 12.11.2009) DATACOM SOLUTIONS PRIVATE LIMITED |
|
|
|
|
Registered
Office : |
171-C, 17th Floor, Mittal Court, C Wing, Nariman Point,
Mumbai – 400021, |
|
|
|
|
Country : |
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|
|
|
|
Financials (as on)
: |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
07.06.2007 |
|
|
|
|
Com. Reg. No.: |
16-204763 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.51750.000 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U72900MH2007PLC204763 |
|
|
|
|
PAN No.: [Permanent Account No.] |
AACCD6756F |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business
: |
Providing Telecommunication Services |
|
|
|
|
No. of Employees
: |
Information declined by the management |
RATING & COMMENTS
|
MIRA’s Rating : |
B (27) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow |
|
|
|
|
Litigation : |
Clear |
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|
|
|
Comments : |
Subject is a subsidiary of Videocon Industries Limited. It is an
established company having moderate track record. The company possesses a weak financial profile marked by consecutive
losses recorded in the books resulting in accumulation of losses during 2013.
Further, there seems to be huge external borrowing as well as
unfavorable position between trade receivables and payables which may affect
the liquidity position. The ratings also take into consideration, the infusion of funds as
capital from the promoters which has supported the networth of the company. Trade relations are seems to be fair. Business is active. Payment
terms are reported as slow. In view of experienced promoters and reputed holding company, the
subject can be considered for business dealings with caution. |
NOTES:
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
INDIAN ECONOMIC OVERVIEW
N E W S
As per the latest IMF study, the total weigh of emerging markets in the
GDP of the world on a purchasing power parity basis has seen a sizeable shift.
It highlights how as against 51 % in 2005, the emerging economies now account
for close to 56 % of the global purchasing power GDP as per the latest survey.
And with the emerging economies growing at a faster rate than their developed
counterparts, there are every possibility that the their share goes up further
in the coming years. China may surpass the US over the next few years.
Politics and economics are very intricately connected. They tend to influence
each other in ways that could be very complex and far-reaching. The prospects
of the India’s economy have been seriously compromised due to political
corruption. High inflation, poor standard of living are to a great extent a
result of rampant corruption in the country. China on the other hand, seems to
be facing diametrically opposite challenge. American hedge fund manager Jim
Chanos has been keenly following the political and economic development in the
dragon economy and has figured out something that is quite worrying. He is of
the view that the Chinese economy could be heading toward trouble on account of
new Chinese President Xi Jingping’s very aggressive anti-corruption drive.
Chanos believes tat many things such as apartment sales, luxury products, etc.
were largely bought with dirty money. And it is now beginning to impact
consumption. This may indeed be bad news for an economy that is struggling to
transition from an investment-driven export-oriented economy to a domestic
consumption-driven economy.
A study published by Firstpost has revealed that asset classes like real
estate and equities were the biggest beneficiaries of the liberalization
policies. A firm called Ciane Analytics studied returns from assets
including equities, gold, fixed deposits, G-Secs and real estate since 1991.
Real estate outperformed every other asset classes during the 23-year period
with an annualized return of 20 % ! Equities came in second with annualized
return of 15.5 % ! However, while these returns may seem mouthwatering, the
fact is that the return from equities adjusted for inflation came down to just
7.1 %.
Some brief news are as under
. R-Power to buy Jaypee’s hydro assets
. Investors await justice in NSEL case
. India seeks MFN status from Pakistan ahead of meeting
. Ukrain’s clashes with rebels hinder MH17 crash investigation
. India exploring merger of state-owned hydro PSUs
..Higher costs weigh down profit growth to slowest in 9 quarters
..Wal-Mart to expand wholesale business in India
. GMR group moves to strengthen balance sheet
. Central Bank to sell 4 % stake to Life Insurance Corporation
. Tata Chemicals plans to raise up to Rs 10000 mn.
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2014.
INFORMATION DECLINED
Management Non Co-operative (91-22-22886399)
LOCATIONS
|
Registered Office : |
171-C, 17th Floor, Mittal Court, C Wing, Nariman Point,
Mumbai – 400021, Maharashtra, India |
|
Tel. No.: |
91-22-22886399/ 42555000 |
|
Fax No.: |
91-22-22886797 |
|
Website : |
|
|
|
|
|
Corporate Office : |
296, Udyog Vihar, Phase II, Gurgaon – 122016, Haryana, India |
|
|
|
|
Circle Head Office : |
RMZ Millenia Business Park, Campus 2, 2nd Floor, No 143, Dr. MGR Road,
Kandanchavady, Perungudi, Chennai – 600096, Tamilnadu, India |
DIRECTORS
As on 13.09.2013
|
Name : |
Mr. Rajkumar Nandlal Dhoot |
|
Designation : |
Managing Director |
|
Address : |
Dhoot Bunglow, Station Road, Padampura, Aurangabad – 431001,
Maharashtra, India |
|
Date of Birth/Age : |
11.09.1955 |
|
Date of Appointment : |
12.12.2007 |
|
DIN No. : |
00419480 |
|
|
|
|
Name : |
Mr. Pradipkumar Nandlal Dhoot |
|
Designation : |
Director |
|
Address : |
Flat No. 99, Videocon House, 1st Floor, |
|
Date of Birth/Age : |
22.03.1960 |
|
Date of Appointment : |
12.12.2007 |
|
DIN No. : |
01635315 |
|
|
|
|
Name : |
Mr. Subhash Shamsunder Dayama |
|
Designation : |
Director |
|
Address : |
Flat NO. PL 16B, Vasant Tara Colony, Near Matoshri Jogging Park,
Ahmednagar – 414001, Maharashtra, India |
|
Date of Birth/Age : |
05.05.1961 |
|
Date of Appointment : |
10.06.2008 |
|
DIN No. : |
00217692 |
KEY EXECUTIVES
|
Name : |
Mr. Chandrashekhar Ashok Nagarkar |
|
Designation : |
Company Secretary |
|
Address : |
37/5, Omkar Apartment, Renavikar Nagar, Savedi, Ahmednagar – 414003, |
|
Date of Birth/Age : |
17.03.1976 |
|
Date of Appointment : |
10.06.2008 |
|
Pan No. : |
ACMPN7915R |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 13.09.2013
|
Names of Shareholders |
|
No. of Shares |
|
Videocon Industries Limited, India |
|
738987120 |
|
Videocon International Electronics Limited, India |
|
3826887840 |
|
Jumbo Techno Services Private Limited, India |
|
562875000 |
|
Venugopal Nandlal Dhoot |
|
10 |
|
Pradipkumar Nandlal Dhoot |
|
10 |
|
Rajkumar Nandlal Dhoot |
|
10 |
|
Saurabh Pradipkumar Dhoot |
|
10 |
|
Kail Limited, India |
|
250000000 |
|
Evans Fraser and Company (India) Limited, India |
|
250000000 |
|
Total |
|
5628750000 |
As on 13.09.2013
Equity Share Break up (Percentage of Total Equity)
|
Category |
Percentage |
|
Bodies corporate |
100.00 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Providing Telecommunication Services |
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||||
|
Products : |
|
GENERAL INFORMATION
|
No. of Employees : |
Information declined by the management |
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||||||||||||||||||
|
Bankers : |
Not Available |
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||||||||||||||||||
|
Facilities : |
(Rs.
In Millions)
|
|
|
|
|
Banking
Relations : |
--- |
|
|
|
|
Financial Institution : |
SBICAP Trustee Company Limited, 202, Maker Tower ‘E’, Cuffe Parade,
Colaba, Mumbai – 400005, Maharashtra, India |
|
|
|
|
Auditors 1 : |
|
|
Name : |
Khandelwal Jain and Company Chartered Accountants |
|
Address : |
221, Hans Bhawan, Bahadur Shah Zafar Marg, New Delhi – 110002, India |
|
PAN.: |
AAAFK0985C |
|
|
|
|
Auditors 2 : |
|
|
Name : |
Kadam and Company Chartered Accountants |
|
Address : |
Vedant, 8/9, Viraj Estate, Opposite Tarakpur Bus Stand, Ahmednagar – 414003,
Maharashtra, India |
|
PAN.: |
ABBPK8294J |
|
|
|
|
Ultimate Holding
Company : |
Videocon Industries Limited |
|
|
|
|
Holding Company : |
Videocon International Electronics Limited |
|
|
|
|
Subsidiary Company
: |
Datacom Telecommunications Private Limited |
|
|
|
|
Fellow Subsidiary
Company : |
Jumbo Techno Services Private Limited |
CAPITAL STRUCTURE
As on 13.09.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
8000000000 |
Equity Shares |
Rs.10/- each |
Rs.80000.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
5628750000 |
Equity Shares |
Rs.10/- each |
Rs.56287.500 Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2013 (15 months) |
31.12.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
51750.000 |
15000.000 |
|
(b) Reserves & Surplus |
|
(49131.787) |
(28308.788) |
|
(c) Money
received against share warrants |
|
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
|
0.000 |
10000.000 |
|
Total Shareholders’
Funds (1) + (2) |
|
2618.213 |
(3308.788) |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
|
40181.999 |
30600.343 |
|
(b) Deferred tax liabilities (Net) |
|
0.000 |
0.000 |
|
(c) Other long term liabilities |
|
26.640 |
24.102 |
|
(d) long-term provisions |
|
0.000 |
0.000 |
|
Total Non-current Liabilities (3) |
|
40208.639 |
30624.445 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
|
1579.201 |
19620.838 |
|
(b) Trade payables |
|
3000.765 |
1928.092 |
|
(c) Other current
liabilities |
|
3867.016 |
3124.059 |
|
(d) Short-term provisions |
|
15.502 |
32.301 |
|
Total Current Liabilities (4) |
|
8462.484 |
24705.290 |
|
|
|
|
|
|
TOTAL |
|
51289.336 |
52020.947 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
|
15000.253 |
17126.089 |
|
(ii) Intangible Assets |
|
22557.665 |
17379.220 |
|
(iii) Capital
work-in-progress |
|
2362.871 |
5775.084 |
|
(iv)
Intangible assets under development |
|
0.000 |
0.000 |
|
(b) Non-current Investments |
|
0.520 |
0.520 |
|
(c) Deferred tax assets (net) |
|
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
|
3034.047 |
2346.580 |
|
(e) Other Non-current assets |
|
0.000 |
817.142 |
|
Total Non-Current Assets |
|
42955.356 |
43444.635 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
|
0.000 |
0.000 |
|
(b) Inventories |
|
30.804 |
78.970 |
|
(c) Trade receivables |
|
681.297 |
654.785 |
|
(d) Cash and cash
equivalents |
|
1149.305 |
3193.519 |
|
(e) Short-term loans and
advances |
|
6451.436 |
4635.562 |
|
(f) Other current assets |
|
21.138 |
13.476 |
|
Total Current Assets |
|
8333.980 |
8576.312 |
|
|
|
|
|
|
TOTAL |
|
51289.336 |
52020.947 |
|
SOURCES OF FUNDS |
|
|
31.12.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
|
15000.000 |
|
|
2] Share Application Money |
|
|
10000.000 |
|
|
3] Reserves & Surplus |
|
|
0.000 |
|
|
4] (Accumulated Losses) |
|
|
(10836.995) |
|
|
NETWORTH |
|
|
14163.005 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
|
20973.855 |
|
|
2] Unsecured Loans |
|
|
6328.663 |
|
|
TOTAL BORROWING |
|
|
27302.518 |
|
|
DEFERRED TAX LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
|
|
41465.523 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
|
42196.446 |
|
|
Capital work-in-progress |
|
|
0.000 |
|
|
-Preoperative Expenditure Pending Allocation |
|
|
426.517 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
0.520 |
|
|
DEFERREX TAX ASSETS |
|
|
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
164.338
|
|
|
Sundry Debtors |
|
|
553.004
|
|
|
Cash & Bank Balances |
|
|
1109.589
|
|
|
Other Current Assets |
|
|
5.102
|
|
|
Loans & Advances |
|
|
4298.016
|
|
Total
Current Assets |
|
|
6130.049
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
|
6001.857
|
|
|
Other Current Liabilities |
|
|
1247.329
|
|
|
Provisions |
|
|
35.823
|
|
Total
Current Liabilities |
|
|
7285.009
|
|
|
Net Current Assets |
|
|
(1157.960)
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
41465.523 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 (15 months) |
31.12.2011 |
31.12.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
5091.201 |
6226.248 |
1690.528 |
|
|
|
Other Income |
1.648 |
7.412 |
177.325 |
|
|
|
TOTAL (A) |
5092.849 |
6233.660 |
1867.853 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Employees benefits expense |
1216.406 |
1576.827 |
|
|
|
|
Other expenses |
13815.943 |
14027.713 |
|
|
|
|
TOTAL (B) |
15032.349 |
15604.540 |
9400.129 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(9939.500) |
(9370.880) |
(7532.276) |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
7005.302 |
5085.185 |
1211.038 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(16944.802) |
(14456.065) |
(8743.314) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
3878.197 |
3015.727 |
1685.191 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
(20822.999) |
(17471.792) |
(10428.505) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
(20822.999) |
(17471.792) |
(10428.505) |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
(9.29) |
(11.65) |
(8.6) |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 (15 months) |
31.12.2011 |
31.12.2010 |
|
PAT / Total Income |
(%) |
(408.87) |
(280.28) |
(558.32) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(409.00) |
(280.62) |
(616.88) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(42.56) |
(37.78) |
21.58
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(7.95) |
5.28 |
0.74
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
15.95 |
(15.18) |
1.93
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.98 |
0.35 |
0.84
|
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
|
31.12.2011 |
31.03.2013 |
|
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
|
15000.000 |
51750.000 |
|
Reserves & Surplus |
|
(28308.788) |
(49131.787) |
|
Share Application money
pending allotment |
|
10000.000 |
0.000 |
|
Net
worth |
|
(3308.788) |
2618.213 |
|
|
|
|
|
|
long-term borrowings |
|
30600.343 |
40181.999 |
|
Short term borrowings |
|
19620.838 |
1579.201 |
|
Total
borrowings |
|
50221.181 |
41761.200 |
|
Debt/Equity
ratio |
|
(15.178) |
15.950 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.12.2010 |
31.12.2011 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
1690.528 |
6226.248 |
5091.201 |
|
|
|
268.302 |
(18.230) |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.12.2010 |
31.12.2011 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
1690.528 |
6226.248 |
5091.201 |
|
Profit / (Loss) |
(10428.505) |
(17471.792) |
(20822.999) |
|
|
(616.88%) |
(280.62%) |
(409.00%) |
LOCAL AGENCY FURTHER INFORMATION
|
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 |
---------------------- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
---------------------- |
|
26] |
Buyer visit details |
---------------------- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
No |
UNSECURED LOAN
Rs.
In Millions
|
Particular |
As
on 31.03.2013 |
As
on 31.12.2011 |
|
Short-term
borrowings |
|
|
|
Loans and advances from others |
1579.201 |
19620.838 |
|
Total |
1579.201 |
19620.838 |
|
|
|
|
FINANCIAL PERFORMANCE
During the period, the Company has earned a total income of Rs. 5092.800 Millions as against Rs. 6233.700 Millions for the previous year and total expenditure amounted to Rs. 25915.800 Millions as against Rs. 23705.500 Millions for the previous year. The Company incurred a loss of Rs. 20823.000 Millions as against Rs. 17471.800 Millions for the previous year.
With a view to coincide the financial year of the Company with that of its holding Company viz. Videocon International Electronics Limited the financial year of the Company was extended by a period of 3 (Three) months i.e. up to 31st March,2013. As such the current accounting year comprises of a period of15 Months period i.e. from 1st January, 2012 to 31stMarch, 2013 and therefore the figures for the current accounting period are not comparable.
The paid-up capital of the Company was increased from Rs. 15000.000 Millions to Rs. 51750.000 Millions upto 31st March, 2013. After the Balance Sheet date the paid-up capital of the Company was further increased from Rs. 51750.000 Millions to Rs. 54337.500 Millions up to the date of this report.
OPERATIONS
Quashing of UAS Licenses and subsequent allocation of spectrum to the Licencees:
The Company had been awarded licenses by the Department of Telecommunications ('DoT') to provide Unified Access Services ('UAS') in 21 telecom circles in India with effect from 25th January, 2008 which were valid for a period of 20 years. The Company had also been allocated spectrum in 20 circles and had launched its commercial operations in17 circles.
The Hon’ble Supreme Court of India, vide its order and judgment dated 2ndFebruary, 2012 ('Judgment') in two separate writ petitions, quashed the UAS licenses granted on or after 10th January, 2008 pursuant to two press releases issued on 10th January, 2008 and the subsequent allocation of spectrum to licensees which included the 21 UAS licenses issued and allocation of spectrum to the Company. The order quashing the UAS licenses and the allocation of spectrum was to be operative after four months from the date of the Judgment. By subsequent orders dated 24th April, 2012and 27th August 2012, the Hon’ble Supreme Court directed that the licensees whose licenses had been cancelled were to continue their operations until 18th January 2013. This order was modified by a subsequent order dated 15th February 2013, whereby it was directed that the licensees have to stop operations with immediate effect.
The Hon’ble Supreme Court of India vide its Judgment had also directed the Central Government to grant fresh UAS licenses and spectrum allocation by auction. The DoT, had issued a Notice Inviting Applications (bearing file no. 3-16/2012-Fin./Auction) dated 28th September, 2012 for auction of spectrum in1800 MHz and 800 MHz bands. The Company participated in the aforesaid auction and was declared as a successful bidder of spectrum in six circles in 1800 MHz, namely, Bihar, Gujarat, Haryana, Madhya Pradesh, Uttar Pradesh (East) and Uttar Pradesh (West).
On 3rd March, 2013, the Company has been awarded the Unified Licenses (Access Services) for these six circles with effect from 16thFebruary, 2013 which are valid for a period of 20 years. The Company has also been allotted 5 Mhz spectrum in 1800Mhz category in each of these 6 circles out of which, the Company is already providing its commercial services in 3 circles i.e. Gujarat, Haryana and Madhya Pradesh.
By the order dated15th February, 2013, the Hon’ble Supreme Court of India has, inter-alia, held that the successful applicants in the auction should be allowed to operate in those circles in which they have been successful.
The Company is continuing its commercial operations in 3 circles viz. Gujarat, Haryana and Madhya Pradesh. The Company shall be launching, subject to receipt of the necessary approvals from DoT, its commercial operations in remaining 3 circlesviz. Bihar, Uttar Pradesh (East) and Uttar Pradesh (West) shortly.
INDEX OF CHARGES
|
S. No. |
Charge ID |
Date of Charge Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number (SRN) |
|
1 |
10281971 |
30/03/2011 |
71,500,000,000.00 |
SBICAP TRUSTEE COMPANY LIMITED |
202, MAKER TOWER, 'E', CUFFE PARADE, COLABA, MUMBAI, MAHARASHTRA - 400005, INDIA |
B11035474 |
|
2 |
10245929 |
11/10/2010 |
71,500,000,000.00 |
SBICAP TRUSTEE COMPANY LIMITED |
202, MAKER TOWER, 'E', CUFFE PARADE, COLABA, MUMBAI, MAHARASHTRA - 400005, INDIA |
A97382626 |
|
3 |
10198039 |
07/01/2010 |
10,000,000,000.00 |
STATE BANK OF INDIA |
STATE BANK BHAVAN, MADAME CAMA ROAD, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA |
A77971018 |
FIXED ASSETS
· Building
· Plant and Machinery
· Leasehold Improvements
· Furniture and Fixtures
· Computers
· Office Equipments
· Vehicles
· Computer Software
· License Fees
PRESS RELEASES
DOT MAY ASK CAG TO DROP
OBJECTIONS OVER ENTRY-FEE ADJUSTMENTS
March 21, 2014
The Department of Telecommunications (DoT) may ask the CAG to drop objections raised against four telecom operators, whose entry fee was adjusted against the money they had to pay for spectrum won in the November 2012 and March 2013 auctions.
The Comptroller and Auditor General of India (CAG) had questioned DoT's decision to adjust the entry fee paid by these operators in 2008 against the auction amount in 2012, saying it went against the Supreme Court's ruling.
DoT had allowed a set-off of Rs. 16585.700 Millions for Uninor, Rs. 15068.200 Millions for Videocon Telecommunications, Rs. 16263.200 Millions for Sistema Shyam Teleservices (SSTL) and Rs. 6845.900 Millions for Idea Cellular to be adjusted with the price of spectrum these companies bought in the November 2012 and March 2013 auctions.
According to sources, the DoT had in October 2013 written to CAG that the set-off was allowed on the principle of equal restitution, as recommended by the Empowered Group of Ministers (EGoM).
Before the November 2012 auction, the EGoM on spectrum headed by Finance Minister P Chidambaram had decided to adjust fees of only those companies that win spectrum in the auction.
In the November 2012 auction, Uninor and Videocon won spectrum in six circles each and Idea Cellular in seven circles. SSTL won airwaves in eight circles in March 2013.
The DoT had said the "set-off is not in the nature of refund as it was allowed only in case of participation and winning of spectrum in the auction."
It had also communicated to the CAG that these decisions involve issues of policy and legality and issues of policy cannot be dealt with by audit and issues of legality can only be dealt with by the courts, the source added.
The licences of these companies were cancelled by the Supreme Court in 2012, after which they wrote to the government seeking a refund of the entry fee paid by them or its adjustment against the bid amount if they participated in the auctions in 2012 and 2013.
"It may be mentioned that the actions of the government in allowing the set-off were very much in conformity with the directions of Supreme Court as it had allowed the quashed licences to continue to operate and participate in the auctions," the DoT is believed to have written to the CAG.
According to sources, the DoT communicated to the CAG that the issue may be examined in entirety and the objections raised may be dropped.
VIDEOCON TO ROLL OUT
4G SERVICES IN SIX CIRCLES BY YEAR-END
March 14, 2013
Ahmedabad:
Videocon Telecommunication will roll out long term evolution (LTE) technology for offering 4G services in six circles including Gujarat and Bihar by the end of this year, the company said on Thursday.
"LTE technology offering better speed and connectivity to consumers will in first phase shall be rolled out in six circles of Gujarat, Haryana, Madhya Pradesh, UP-East, UP-West and Bihar by this year end," said Arvind Bali to reporters. He is Videocon's director and chief executive officer.
"The technology offering high-speed data services has the potential to overcome the handicaps posed by the 3G services. LTE can offer 20-50 times higher speed over 3G to consumers," he claimed.
"We got a new spectrum licence on January 18 which enables us to use it for any technology over the next 20 years, and now we shall be taking many leaps during this span," Mr. Bali said.
"We have got pan-India 22 licences for national long distance service and our maximum budgeting shall be for it," Mr. Bali added.
For the troubled telcom industry, Mr. Bali said voice calls will be the big driver going forward. While the growth would be high in data download services.
2G CASE: SUPREME
COURT DISMISSES CURATIVE PETITIONS OF TELCOS, A. RAJA
February 14, 2013
New Delhi:
The Supreme Court today dismissed the curative petitions of several telecom firms requesting re-examination of its verdict cancelling 122 2G spectrum licences allocated during tenure of former telecom minister A. Raja
The apex court also denied permission to Mr. Raja to file his curative petition.
The companies whose petitions were rejected are Videocon Telecommunications Limited, Sistema Shyam Teleservices Limited (SSTL), Tata Teleservices Limited (TTSL) and Idea Cellular Limited.
A bench of Chief Justice Altamas Kabir and justices P. Sathasivam and G.S. Singhvi rejected the plea of the telecom firms and Raja saying "no case is made out".
"We have gone through the curative petitions and the relevant documents. In our opinion, no case is made out within the parameters indicated in the decision of this court...hence, the curative petitions are dismissed."
"As far as the curative petition of Raja is concerned, permission to file curative petitions is rejected," it said adding, "Consequently, applications for stay and appropriate directions are rejected."
A curative petition is filed after the dismissal of review petition and is decided in the chambers of judges.
Earlier on April 3, 2012, the apex court had dismissed the review petitions of Videocon Telecommunications Limited, S Tel Limited, SSTL, TTSL, Unitech Wireless (Tamil Nadu) Private Limited, Etisalat DB Telecom Private Limited and Idea Cellular Limited.
A bench of justices G.S. Singhvi and A.K. Ganguly (since retired), on February 2, 2012, had cancelled the 122 2G licences holding as unconstitutional the policy of first-come-first-served.
Reacting to the dismissal of the curative petition, SSTL in a statement said: It is unfortunate that the Supreme Court has not admitted the curative petition of SSTL. The company believes that it has been unfairly penalized in the February 2, 2012 order by the Supreme Court. While SSTL remains committed to its operations, however, it would be up to the shareholders to decide the go forward strategy of the company."
VIDEOCON TELECOM TO LAUNCH 4G
SERVICES BY DECEMBER 2014
Videocon
Telecommunication’s plans launch its 4G services using FDD-LTE technology by
December 2014, according to a report by ETTelecom. It would initially launch the services in
Gujarat, Haryana, Madhya Pradesh and Chhattisgarh. At the 4G World
India conference, Videocon Telecom CEO Arvind Bali said to ETTelecom
that it plans to launch the services between December to January and would
launch it in 10 towns initially.
It also plans to launch
IPTV and other services based on 4G. The company is currently in talks with equipment
vendors and plans to launch 4G services directly, where it hasn’t launched 2G
services yet. It is also planning to share spectrum to expand its
operations across the country.
Airtel already provides
4G services in
VIDEOCON GOES WITH HUAWEI FOR 4G PACKET CORE
Huawei would be implementing
LTE-ready Packet Core for Videocon Telecom, says the press release. Videocon
has already announced Nokia as its partner for telecom equipment.
Videocon
plans to cover the cities of Ahmedabad in Gujarat, Indore in Madhya Pradesh and
Panipat in Haryana in the initial phase of 4G deployment. The company has
license in six circles of Gujarat, Madhya Pradesh-Chhattisgarh, Haryana,
UP-East, UP-West and Bihar.
This agreement encompasses the
Evolved Packet Core (EPC) technology for the Core Network. The EPC will be
implemented to cater to Videocon Telecom’s nation-wide data services rollout.
The PCRF (Policy & Charging
Rules Function) feature implemented in the EPC allows differentiated services
as per customer requirements like application based pricing, differentiated
bandwidth, user profile monetization etc. addressing market segments in a
focused manner, leading to an effective Customer Experience Management (CEM),
says the press release.
"This network will provide
a larger data coverage and reduce the overall CAPEX and OPEX leading to an
improved profitability and lower costs to end users. Once the network is fully
commissioned, our customers can expect improved data quality and a richer
broadband experience,” says Arvind Bali, Director and CEO of Videocon Telecom.
RAJKUMAR DHOOT EXITS
VIDEOCON'S TELECOM ARM: SOURCES
Industrialist Rajkumar Dhoot has resigned as Chairman and Managing
Director ofVideocon Telecom,
people familiar with the development said on Tuesday.
The resignation is believed to have been submitted a few weeks
ago, the people said, asking not to be identified. The reason for the
resignation is not immediately known.
When contacted, Videocon Telecom CEO Arvind Bali refused to
confirm or deny the news.
Videocon Telecom is a subsidiary of the $5 billion Videocon Group. Rajkumar Dhoot is the younger
brother of Venugopal Dhoot, Chairman of Videocon Group. In June last year,
Rajkumar Dhoot was re-appointed as Managing Director of the telecom arm for a
five-year period till 2018 with substantial powers to steer ahead the
struggling company.
The 58-year-old had been part of the telecom business from its
inception in 2008. The Group had invested Rs 10,000 crore in the telecom
business but suffered a jolt when the Supreme Court ordered the cancellation of
the company's licences - along with those of many other mobile-phone operators
-- in February 2012.
The Group again rolled out the telecom business in January last
year and Rajkumar Dhoot's role was expanded to help in the re-launching
efforts. The larger managerial role entrusted to him was widely seen as a
precursor to some sort of succession planning in the group. Today, the three
Dhoot siblings-Pradipkumar Dhoot being the third-have their children working in
the group. Rajkumar Dhoot's exit comes at a time when the telecom sector is
about to see further competition once billionaire Mukesh Ambani's Reliance Jio
Infocomm enters the fray.
Videocon, a consumer electronics and home appliances giant, also
has interests in oil and gas, Direct-to-Home (DTH) television, mobile handsets
and power. The group has invested the most in the telecom business. The group
is hanging on to telecom even though it is not a big force because of the
synergy it can derive from two other growing businesses-mobile handset and DTH.
Some say Videocon could also exit the telecom business if the regulations allow
and if it gets the right price.
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.60.47 |
|
|
1 |
Rs.100.35 |
|
Euro |
1 |
Rs.79.86 |
INFORMATION DETAILS
|
Information
Gathered by : |
HNA |
|
|
|
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
NKT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
2 |
|
--RESERVES |
1~10 |
1 |
|
--CREDIT LINES |
1~10 |
2 |
|
--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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
|
|
|
|
TOTAL |
|
27 |
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.