MIRA
INFORM REPORT
|
Report Date : |
22.09.2014 |
IDENTIFICATION DETAILS
|
Name : |
BHARTI AIRTEL LIMITED (w.e.f. 24.04.2006) |
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Formerly Known
As : |
BHARTI
TELE-VENTURES LIMITED |
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Registered
Office : |
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Country : |
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Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
07.07.1995 |
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Com. Reg. No.: |
070609 |
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Capital
Investment / Paid-up Capital : |
Rs. 19987.001 Millions |
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CIN No.: [Company Identification
No.] |
L74899DL1995PLC070609 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
DELB04730F |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Subject
is engaged in providing telecommunication systems and services. |
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No. of Employees
: |
Information declined by the management. |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (81) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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Maximum Credit Limit : |
USD 2600000000 |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Exist |
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Comments : |
Subject is a leading global telecommunication company having excellent
track record. Financial position of the company is sound. Fundamentals of the
company are healthy. Performance capability of the company is high Trade relations are reported as fair. Business is active. Payments
terms are reported to be regular and as per commitment. The company can be considered for business dealings at usual trade
terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
N E W S
Verdict Implications
: Apex court order may alter coal import dynamics. Traders go slow on talks over
coal supply contracts, uncertainty over cancellation of blocks weigh on stocks.
Recent arrest of the
Chennai head of the Registrar of Companies, the ministry of corporate affairs
arm that ensures that companies file all the information required by the
Companies Act is the latest manifestation of a messy fight between a father and
his adopted son for the control of Rs 40000 mn business empire. The Central
Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10
lakhs as bribe from M A M Ramaswamy, a CBI official said.
Central Bureau of
Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.
Infosys maintains
revenue guidance. COO Rao says attrition still an area of concern and it would take
a few more quarters to bring down levels to 13-15 %.
DHL to invest
Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its
e-commerce business model for the Asia-Pacific region.
Blackstone may buy
stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.
Kingfisher Airlines
Ltd grounded in October 2012 under the weight of heavy debt and accumulated
losses, recently approached the Delhi high court for relief in two separate
cases. The airline challenged a notice by Punjab & National Bank alleging
that It had wilfully defaulted on Rs 7700 mn of loans and sought more time to
comply with the requirements under the listing agreements with the Stock
Exchanges.
OnMobile likely to
sack another 300 employees. The lay-offs follow a spate of senior-level exits
over the past two years, starting with of its founder. The overall lay-offs
could number around 600 and are driven by the need to cut costs, says a former
employee.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Term Loans (AA+) |
|
Rating Explanation |
High degree of safety and very low credit risk |
|
Date |
November 2013 |
|
Rating Agency Name |
ICRA |
|
Rating |
Working Capital Limits (A1+) |
|
Rating Explanation |
Very Strong degree of Safety and carry lowest credit risk |
|
Date |
November 2013 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2014.
INFORMATION DENIED
Management Non Co-operative (91-11-46666100 / 42666500)
LOCATIONS
|
Registered Office / Corporate Office : |
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Tel. No.: |
91-11-46666100 /
42666500 |
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Fax No.: |
91-11-41666137 |
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E-Mail : |
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Website : |
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Branch Office : |
Located At:
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Circle Offices : |
Located at ·
Assam ·
Andhra
Pradesh ·
Bihar ·
Delhi ·
Gujarat ·
Haryana ·
Punjab ·
Himachal
Pradesh ·
Jammu
and Kashmir ·
Karnataka ·
Madhya
Pradesh ·
Chattisgarh ·
Maharashtra ·
Rajasthan ·
Tamil
Nadu and Kerala ·
Uttar
Pradesh and Uttaranchal ·
West
Bengal and Orissa |
DIRECTORS
AS ON 31.03.2014
|
Name : |
Mr. Sunil Bharti Mittal, |
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Designation : |
Chairman |
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Name : |
Ms. Chua Sock Koong |
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Designation : |
Director |
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Name : |
Mr. Sheikh Faisal Thani Al-Thani |
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Designation : |
Director |
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Name : |
Mr. Ajay Lal |
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Designation : |
Director |
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Name : |
Mr.Ben Verwaayen |
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Designation : |
Director |
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Name : |
Mr. Craig Ehrlich |
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Designation : |
Director |
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Name : |
Mr. D.K. Mittal |
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Designation : |
Director |
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Name : |
Mr. Manish Kejriwal |
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Designation : |
Director |
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Name : |
Mr. Obiageli Ezekwesili |
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Designation : |
Director |
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Name : |
Mr. Rajan Bharti Mittal |
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Designation : |
Director |
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Name : |
Ms. Tan Yong Choo |
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Designation : |
Director |
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Name : |
Mr. Tsun-yan hsieh |
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Designation : |
Director |
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Name : |
Mr. V. K. Viswanathan |
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Designation : |
Director |
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Name : |
Mr. Manoj Kohli |
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Designation : |
Director |
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Name : |
Mr. Gopal Vittal, |
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Designation : |
Managing Director and CEO (India and South Asia) |
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Name : |
Mr. Christian de Faria |
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Designation : |
Managing Director and CEO (Africa) |
KEY EXECUTIVES
|
Name : |
Mr. Mukesh Bhavani |
|
Designation : |
Group General Counsel and Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2014
|
Category of
Shareholder |
Total No. of Shares |
Total Shareholding as
a % of Total No. of Shares |
|
|
|
As a % of (A+B) |
|
(A) Shareholding of Promoter and Promoter
Group |
|
|
|
|
|
|
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|
1747545460 |
43.72 |
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|
1747545460 |
43.72 |
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|
|
|
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|
857180286 |
21.44 |
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|
8493000 |
0.21 |
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|
8493000 |
0.21 |
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|
865673286 |
21.66 |
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Total shareholding of Promoter and Promoter
Group (A) |
2613218746 |
65.37 |
|
(B) Public Shareholding |
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|
72721488 |
1.82 |
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|
3494160 |
0.09 |
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|
210249825 |
5.26 |
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|
709035440 |
17.74 |
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|
995500913 |
24.90 |
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|
129957146 |
3.25 |
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|
33938121 |
0.85 |
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|
8609818 |
0.22 |
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|
216175358 |
5.41 |
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|
57 |
0.00 |
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|
204952716 |
5.13 |
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|
2408353 |
0.06 |
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|
5201883 |
0.13 |
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|
3612349 |
0.09 |
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|
388680443 |
9.72 |
|
Total Public shareholding (B) |
1384181356 |
34.63 |
|
Total (A)+(B) |
3997400102 |
100.00 |
|
(C) Shares held by Custodians and against
which Depository Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
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|
0 |
0.00 |
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|
0 |
0.00 |
|
Total (A)+(B)+(C) |
3997400102 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject
is engaged in providing telecommunication systems and services. |
GENERAL INFORMATION
|
No. of Employees : |
Information declined by the management. |
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Bankers : |
·
Axis Bank Limited ·
ICICI Bank Limited |
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Facilities : |
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Banking
Relations : |
-- |
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Statutory Auditors : |
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Name : |
M/s. S. R. Batlibol and Associates LLP Chartered Accountants |
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Internal Auditors : |
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Name : |
M/s. ANB Solution Private Limited M/s. KPMG M/s. Towers Watson India Private Limited Chartered Accountants |
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Entities where control
exist – Subsidiary/ Subsidiaries of Subsidiary : |
·
Bharti Hexacom Limited ·
Bharti Airtel Services Limited ·
Bharti Telemedia Limited ·
Bharti Airtel (USA) Limited ·
Bharti Airtel Lanka (Private) Limited ·
Bharti Airtel (UK) Limited ·
Bharti Airtel (Canada) Limited ·
Bharti Airtel (Hongkong) Limited ·
Bharti Infratel Limited (“BIL”) ·
Bharti Infratel Limited (Incorporated on June 4,
2013 as Subsidiary of BIL) ·
Network i2i Limited ·
Bharti Airtel Holdings (Singapore) Pte Limited ·
Bharti Infratel Lanka (Private) Limited
(subsidiary of Bharti Airtel Lanka (Private) Limited) ·
Bharti Infratel Ventures Limited (subsidiary of
Bharti Infratel Limited) ·
Airtel M Commerce Services Limited · Airtel Broadband Services Private Limited (formerly known as Wireless Business Services Private Limited)(subsidiary w.e.f. June 25, 2013)* · Wireless Broadband Business Services (Delhi) Private Limited (subsidiary w.e.f. June 25, 2013)*$ · Wireless Broadband Business Services (Haryana) Private Limited (subsidiary w.e.f. June 25, 2013)*$ · Wireless Broadband Business Services (Kerala) Private Limited (subsidiary w.e.f. June 25, 2013)*$ · Nxtra Data Limited (incorporated on July 2, 2013)* ·
Bharti Airtel (Japan) Kabushiki Kaisha
(subsidiary of Bharti Airtel Holdings (Singapore) Pte Limited) ·
Bharti Airtel (France) SAS (subsidiary of Bharti
Airtel Holdings (Singapore) Pte Limited) ·
Bharti Airtel International (Mauritius) Limited ·
Bharti International (Singapore) Pte Limited ·
Airtel Bangladesh Limited (subsidiary of Bharti
Airtel Holdings (Singapore) Pte Limited) ·
Bharti Airtel International (Netherlands) B.V. ·
Bangladesh Infratel Networks Limited (subsidiary
of Airtel Bangladesh Limited) ·
Bharti Airtel Africa B.V. (subsidiary of Bharti
Airtel International (Netherlands) B.V.) ·
Telesonic Networks Limited (formerly known as
Alcatel-Lucent Network Management Services India Limited) (till February 5,
2013) |
|
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|
Other
subsidiaries of Bharti Airtel Africa B.V.: |
·
Africa Towers N.V. ·
Africa Towers Services Limited ·
Airtel Ghana Limited ·
Airtel (SL) Limited ·
Airtel Burkina Faso S.A. # ·
Airtel Congo S.A. # ·
Airtel Direct to Home Services (Kenya) (dissolved
on January 8, 2013) ·
Airtel DTH Services (SL) Limited ·
Airtel DTH Services Burkina Faso S.A. ·
Airtel DTH Services Congo (RDC) S.p.r.l ·
Airtel DTH Services Congo S.A. ·
Airtel DTH Services Gabon S.A ·
Airtel DTH Services Ghana Limited ·
Airtel DTH Services Nigeria Limited ·
Airtel DTH Services T.Chad S.A. (dissolved on
November 6, 2012) ·
Airtel DTH Services Tanzania Limited ·
Airtel DTH Services Uganda Limited ·
Bharti DTH Services Zambia Limited ·
Airtel Madagascar S.A. ·
Airtel Malawi Limited ·
Airtel Mobile Commerce (SL) Limited ·
Airtel Mobile Commerce B.V. ·
Airtel Mobile Commerce Burkina Faso S.A. ·
Airtel Mobile Commerce (Ghana) Limited ·
Airtel Mobile Commerce Holdings B.V. ·
Airtel Mobile Commerce Madagascar (S.A.) ·
Airtel Mobile Commerce Limited ·
Airtel Mobile Commerce (Tanzania) Limited ·
Airtel Mobile Commerce Tchad SARL ·
Airtel Mobile Commerce Uganda Limited ·
Airtel Mobile Commerce Rwanda Limited · Airtel Mobile Commerce (Seychelles) Limited (subsidiary w.e.f. August 9, 2013) · Airtel Mobile Commerce (Kenya) Limited ·
Airtel Money Niger S.A. ·
Airtel Money (RDC) S.p.r.l ·
Airtel Networks Kenya Limited # ·
Airtel Networks Limited ·
Airtel Rwanda Limited ·
Airtel Tanzania Limited # ·
Airtel Towers (Ghana) Limited ·
Airtel Towers (S.L.) Company Limited ·
Airtel Uganda Limited ·
Airtel (Seychelles) Limited ·
Bharti Airtel Acquisition Holdings B.V. ·
Bharti Airtel Burkina Faso Holdings B.V. ·
Bharti Airtel Cameroon B.V. ·
Bharti Airtel Chad Holdings B.V. ·
Bharti Airtel Congo Holdings B.V. ·
Bharti Airtel Developers Forum Limited ·
Bharti Airtel DTH Holdings B.V. ·
Bharti Airtel Gabon Holdings B.V. # ·
Bharti Airtel Ghana Holdings B.V. # ·
Bharti Airtel Kenya B.V. # ·
Bharti Airtel Kenya Holdings B.V. ·
Bharti Airtel Madagascar Holdings B.V. # ·
Bharti Airtel Malawi Holdings B.V. # ·
Bharti Airtel Mali Holdings B.V. ·
Bharti Airtel Niger Holdings B.V. # ·
Bharti Airtel Nigeria B.V. # ·
Bharti Airtel Nigeria Holdings B.V. ·
Bharti Airtel Nigeria Holdings II B.V. ·
Bharti Airtel RDC Holdings B.V. ·
Bharti Airtel Services B.V. ·
Bharti Airtel Sierra Leone Holdings B.V. # ·
Bharti Airtel Tanzania B.V. # ·
Bharti Airtel Uganda Holdings B.V. # ·
Bharti Airtel Zambia Holdings B.V. # ·
Burkina Faso Towers S.A. ·
Celtel (Mauritius) Holdings Limited ·
Celtel Congo (RDC) S.a.r.l. # ·
Airtel Gabon S.A. ·
Celtel Niger S.A. ·
Airtel Tchad S.A. ·
Celtel Zambia plc · Airtel Tchad S.A.# · Airtel Networks Zambia Plc (formerly known as Celtel Zambia plc)# ·
Channel Sea Management Company (Mauritius)
Limited ·
Congo (RDC) Towers S.p.r.l. ·
Congo Towers S.A. ·
Gabon Towers S.A. ·
Indian Ocean Telecom Limited ·
Kenya Towers Limited ·
Madagascar Towers S.A. ·
Malawi Towers Limited ·
Mobile Commerce Congo S.A. ·
Airtel Money S.A. (Gabon) ·
Montana International ·
MSI-Celtel Nigeria Limited ·
Niger Towers S.A. ·
Partnership Investments Sprl ·
Rwanda Towers Limited ·
Société Malgache de Telephonie Cellulaire SA ·
Tanzania Towers Limited ·
Tchad Towers S.A. ·
Towers Support Nigeria Limited ·
Uganda Towers Limited · Warid Congo S.A. (subsidiary w.e.f. March 12, 2014) · Warid Telecom Uganda Limited (subsidiary w.e.f. May 13, 2013) (merged with Airtel Uganda Limited w.e.f. February 1, 2014) ·
Zambian Towers Limited ·
Zap Trust Company Nigeria Limited ·
Zebrano (Mauritius) Limited · Airtel Mobile Commerce Zambia Limited (formerly known as ZMP Limited) |
|
|
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|
Associates/Associate
of Subsidiary : |
· Bharti Teleports Limited · Tanzania Telecommunications Company Limited (Associate of Bharti Airtel Tanzania B.V.) · Seychelles Cable Systems Company Limited (Associate of Airtel (Seychelles) Limited) · Telesonic Networks Limited (formerly known as Alcatel-Lucent Network Management Services India Limited) (till February 4, 2013) |
|
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|
Joint
Ventures/Joint Venture of Subsidiary : |
· Forum I Aviation Limited (Joint Venuture of Bharti Airtel Services Limited) · Indus Towers Limited (Joint Venture of Bharti Infratel Limited) · Bridge Mobile Pte Limited · Wireless Broadband Business Services (Delhi) Private Limited (till June 24, 2013)* · Wireless Broadband Business Services (Haryana) Private Limited (till June 24, 2013)* · Wireless Broadband Business Services (Kerala) PrivateLimited, (till June 24, 2013)* · Airtel Broadband Services Private Limited (formerly known as Wireless Business Services Private Limited) (till June 24, 2013)* |
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|
Entities where Key Management Personnel and their
relatives exercise significant influence/Group Companies |
· Beetel Teletech Limited · Bharti Airtel Employees Welfare Trust · Bharti AXA General Insurance Company Limited · Bharti AXA Life Insurance Company Limited · Bharti Enterprises Limited · Bharti Foundation · Bharti Realty Holdings Limited · Bharti Realty Limited · Bharti Retail Limited · Bharti Wal-Mart Private Limited (till December 28, 2013) · BSB Portal Limited · Centum Learning Limited · Comviva Technologies Limited (till December 13, 2012) · Fieldfresh Foods Private Limited · Indian Continent Investment Limited · Jersey Airtel Limited · Nile Tech Limited · Mehrauli Realty and Consultants Limited · Mobinteco Limited · Y2CF Digital Media Limited (w.e.f May 6, 2013) · Hike Limited (formerly known as MessngrCo Private Limited) |
|
|
|
|
Entities having significant influence over the
Company : |
· Singapore Telecommunications Limited · Pastel Limited · Bharti Telecom Limited |
CAPITAL STRUCTURE
As on 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
5000000000 |
Equity Shares |
Rs.5 /- each |
Rs. 25000.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
3997400102 |
Equity Shares |
Rs.5 /- each |
Rs. 19987.001 Millions |
|
|
|
|
|
Reconciliation of the
equity shares outstanding at the beginning and at the end of the year
|
Particular |
For the year ended March 31, 2014 |
|
|
|
No. |
Rs. in Millions |
|
At the beginning of the year |
3797530096 |
18988.000 |
|
Issued during the year (refer note 37) |
199870006 |
999.000 |
|
Outstanding at the
end of the year |
3997400102 |
19987.000 |
Terms/rights attached
to equity shares
The Company has only one class of equity shares having par value of Rs. 5 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting.
During the year ended March 31, 2014, the Board of Directors has proposed dividend of Rs. 1.80 per share (March 31, 2013 Rs. 1.00). The Company, based on an independent legal opinion, has determined that the provisions of the Companies Act, 2013 apply to the proposed dividend for the year ended March 31, 2014, as it would be declared and paid after April 1, 2014. Since the Companies Act, 2013 does not mandate transfer of certain percentage of profits to general reserve, the Company has not transferred any amount to general reserve in respect of proposed dividend.
Details of
shareholders (as per the register of shareholders) holding more than 5% shares
in the Company
|
Particulars |
As of March 31, 2014 |
|
|
|
No. |
% holding |
|
Equity shares of `
5 each fully paid up |
|
|
|
Bharti Telecom Limited* |
1745595460 |
43.67% |
|
Pastel Limited |
591319300 |
14.79% |
|
Indian Continent Investment Limited |
265860986 |
6.65% |
|
Life Insurance Corporation of India |
207987846 |
5.20% |
|
Three Pillar Pte Limited |
199870006 |
5.00% |
*Above holding does not include 1,950,000 shares which have been credited to demat account after March 31, 2014 (March 31, 2013 530,000 shares)
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
19987.000 |
18988.000 |
18988.000 |
|
(b) Reserves &
Surplus |
647293.000 |
522474.000 |
475308.000 |
|
(c) Money received
against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application
money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total Shareholders’ Funds
(1) + (2) |
667280.000 |
541462.000 |
494296.000 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term borrowings |
72717.000 |
98408.000 |
82338.000 |
|
(b) Deferred tax
liabilities (Net) |
9475.000 |
11503.000 |
8367.000 |
|
(c) Other long term
liabilities |
39394.000 |
31708.000 |
25184.000 |
|
(d) long-term provisions |
2095.000 |
1494.000 |
1405.000 |
|
Total Non-current
Liabilities (3) |
123681.000 |
143113.000 |
117294.000 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
12510.000 |
31390.000 |
58956.000 |
|
(b) Trade payables |
62663.000 |
51372.000 |
45121.000 |
|
(c) Other current
liabilities |
106454.000 |
106034.000 |
82000.000 |
|
(d) Short-term provisions |
9453.000 |
5461.000 |
5570.000 |
|
Total Current Liabilities
(4) |
191080.000 |
194257.000 |
191647.000 |
|
|
|
|
|
|
TOTAL |
982041.000 |
878832.000 |
803237.000 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
240682.000 |
264362.000 |
263782.000 |
|
(ii) Intangible Assets |
158100.000 |
167464.000 |
140626.000 |
|
(iii) Capital
work-in-progress |
12442.000 |
10308.000 |
9230.000 |
|
(iv) Intangible assets under
development |
0.000 |
0.000 |
35435.000 |
|
(b) Non-current
Investments |
340348.000 |
271191.000 |
118041.000 |
|
(c) Deferred tax assets
(net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
145180.000 |
89358.000 |
84817.000 |
|
(e) Other Non-current
assets |
17901.000 |
14111.000 |
10924.000 |
|
Total Non-Current Assets |
914653.000 |
816794.000 |
662855.000 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
4891.000 |
10800.000 |
5337.000 |
|
(b) Inventories |
11.000 |
21.000 |
321.000 |
|
(c) Trade receivables |
21655.000 |
22468.000 |
21345.000 |
|
(d) Cash and cash
equivalents |
4460.000 |
3627.000 |
4812.000 |
|
(e) Short-term loans and
advances |
24218.000 |
14133.000 |
98047.000 |
|
(f) Other current assets |
12153.000 |
10989.000 |
10520.000 |
|
Total Current Assets |
67388.000 |
62038.000 |
140382.000 |
|
|
|
|
|
|
TOTAL |
982041.000 |
878832.000 |
803237.000 |
PROFIT & LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
SALES |
|
|
|
|
|
Income |
499185.000 |
453509.000 |
416038.000 |
|
|
Other Income |
8534.000 |
14631.000 |
6247.000 |
|
|
TOTAL |
507719.000 |
468140.000 |
422285.000 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Access charges |
73015.000 |
74212.000 |
58086.000 |
|
|
License
fee and spectrum charges (revenue share) |
54682.000 |
48815.000 |
46942.000 |
|
|
Cost
of goods sold |
22.000 |
19.000 |
183.000 |
|
|
Employee
benefits expenses |
16481.000 |
15113.000 |
13915.000 |
|
|
Power
and fuel |
41697.000 |
35699.000 |
29727.000 |
|
|
Rent |
56904.000 |
52225.000 |
47715.000 |
|
|
Other
expenses |
92711.000 |
92424.000 |
82702.000 |
|
|
Exceptional items |
2071.000 |
0.000 |
0.000 |
|
|
TOTAL |
337583.000 |
318507.000 |
279270.000 |
|
|
|
|
|
|
|
Less |
PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND
AMORTISATION |
170136.000 |
149633.000 |
143015.000 |
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES |
13364.000 |
16523.000 |
13962.000 |
|
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE
TAX, DEPRECIATION AND AMORTISATION |
156772.000 |
133110.000 |
129053.000 |
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
72313.000 |
68267.000 |
59160.000 |
|
|
|
|
|
|
|
Less |
CHARITY
AND DONATION (RS. NIL MN (2011-12 RS. 20 MN) PAID TO SATYA ELECTORAL TRUST
FOR POLITICAL PURPOSE) |
685.000 |
295.000 |
332.000 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE TAX |
83774.000 |
64548.000 |
69562.000 |
|
|
|
|
|
|
|
Less |
TAX |
17772.000 |
13585.000 |
12262.000 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) AFTER TAX
|
66002.000 |
50963.000 |
57300.000 |
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
TOTAL EARNINGS |
35035.000 |
27824.000 |
20122.000 |
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
Capital Goods |
16145.000 |
25516.000 |
17628.000 |
|
|
TOTAL IMPORTS |
16145.000 |
25516.000 |
17628.000 |
|
|
|
|
|
|
|
|
Earnings / (Loss) Per
Share (Rs.) |
16.69 |
13.42 |
15.09 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
|
|
|
|
PAT / Total Income |
(%) |
13.00 |
10.89 |
13.57 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
16.78 |
14.23 |
16.72 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
13.31 |
10.81 |
10.86 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.13 |
0.12 |
0.14 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.13 |
0.24 |
0.29 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.35 |
0.32 |
0.73 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Share Capital |
18988.000 |
18988.000 |
19987.000 |
|
Reserves & Surplus |
475308.000 |
522474.000 |
647293.000 |
|
Net worth |
494296.000 |
541462.000 |
667280.000 |
|
|
|
|
|
|
long-term borrowings |
82338.000 |
98408.000 |
72717.000 |
|
Short term borrowings |
58956.000 |
31390.000 |
12510.000 |
|
Total borrowings |
141294.000 |
129798.000 |
85227.000 |
|
Debt/Equity ratio |
0.286 |
0.240 |
0.128 |
YEAR-ON-YEAR GROWTH
|
Year on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Sales |
416038.000 |
453509.000 |
499185.000 |
|
|
|
9.007 |
10.072 |
NET PROFIT MARGIN
|
Net Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Sales |
416038.000 |
453509.000 |
499185.000 |
|
Profit |
57300.000 |
50963.000 |
66002.000 |
|
|
13.77% |
11.24% |
13.22% |
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 |
No |
|
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 |
No |
|
31] |
Date of Birth
of Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No
of Proprietor/Partner/Director, if available |
No |
|
34] |
External
Agency Rating, if available |
Yes |
|
LITIGATION
DETAILS: IN
THE HIGH COURT OF DELHI AT NEW DELHI CO.PET.
492/2014 AND CA Nos.1749/2014, 1750/2014 and 1751/2014 SAI
SOLAR TANCHOOS (P) LTD. …….. Petitioner Through Versus BHARTI
AIRTEL LTD. ….. Respondent Through
Mr. R.L. Anand, Director of the petitioner company in person. CORAM: HON’BLE
MR. JUSTICE SANJEEV SACHDEVA O
R D E R 04.09.2014 Director
of the petitioner Company is present in person and submits that the counsel
could not appear on account of some medical emergency in his family. He prays
for an adjournment. At
request, adjourned to 25 the September 2014. SANJEEV
SACHDEVA, J |
Company Overview
Bharti Airtel continued to be among the top four mobile service providers globally with presence in 20 countries, including India, Sri Lanka, Bangladesh and 17 countries in the African continent. The Company’s diversified service range includes mobile, voice and data solutions using 2G, 3G and 4G technologies. Its service portfolio also comprises an integrated suite of telecom solutions to its customers, besides providing long-distance connectivity in India, Africa and rest of the world. The Company also offers Digital TV and IPTV services in India.
All these services are rendered under a unified brand ‘airtel’, either directly or through subsidiary companies.
The Company also deploys, owns and manages passive infrastructure pertaining to telecom operations through its subsidiary, Bharti Infratel Limited, which also owns 42% of Indus Towers Limited. Together, Bharti Infratel and Indus Towers is the largest passive infrastructure service provider in India.
Management Discussion
and Analysis
Economic Overview
Global Review
The big picture about the global economy is one of gradual recovery. Global economic activity is strengthening and is likely to improve in 2014-15, as downside risks diminish further. A closer look at some of the economies of the world, however, reveals an uneven picture. The US economy is definitely on a high gear, with strengthening household incomes and corporate balance sheets. On the other hand, the Eurozone is still grappling with lower-than-expected growth. More monetary easing is required in this region to Msustain economic activity and achieve the European Central Bank’s objective of price stability; sustained low inflation or even outright deflation may not augur well for long-term recovery.
The emerging and developing economies are underperforming compared to their full potential, owing to structural bottlenecks. The good news, however, is that advanced economies will create better export potential for the emerging economies to grow, going forward. Governments in the emerging and developing economies are also becoming increasingly aware of their self-imposed bottlenecks, and are responding to industry expectations of policy stability, infrastructural improvements and business- friendly tax regimes.
Indian Economy
A few years ago, India was looked upon as an emerging powerhouse of Asia and the world, with an impressive demographic dividend and a government focused on implementing reforms. However, the adverse impact of lacklustre growth, along with policy uncertainty, frittered away the opportunity. High inflation, declining foreign investment and a weak currency saw the economy lose steam. There was also little focus on the development of human capability (knowledge, skills and connected communities), which could have provided the much-needed spark to steer the economy out of the doldrums.
To make matters worse, in FY 2013-14, the withdrawal of the US Federal Reserve’s Quantitative Easing programme triggered capital flight and the Rupee witnessed significant volatility. The agricultural sector grew moderately during the year because of above average monsoon. However, continued underperformance by the mining and manufacturing sectors impacted economic growth. This marks a second straight year of sub-5% growth, signalling the urgency for radical reforms. The worst may be behind us as the current account deficit and the foreign trade deficit narrowed significantly in the second half of FY 2013-14. The Indian currency has also stabilised, inflation is more under control and exports are showing a positive trend.
Outlook
With half of its population below the age of 30, India is one of the world’s youngest nations. The expected post-election stability should augur well for the country. There is an need to kick-start stalled projects, implement radical policies to accelerate growth, create a more responsive administration, bolster investor confidence through policy stability and create jobs for millions of Indians.
FINANCIAL RESULTS
FOR THE QUARTER JUNE 30, 2014
(Rs. In Millions)
|
Particulars |
Quarter Ended June 30, 2014 |
|
|
|
|
|
|
|
1.
Income from operations |
136278.000 |
|
|
|
|
2.Expenditure |
|
|
Access charges |
18894.000 |
|
Employee benefit
expenses |
4181.000 |
|
Cost of goods
sold |
24.000 |
|
Power and fuel |
10226.000 |
|
Rent |
14984.000 |
|
License
fee and spectrum charges (revenue share) |
15883.000 |
|
Depreciation
and amortization charges |
18786.000 |
|
Other
accounting expenses |
24207.000 |
|
Total expenses |
107185.000 |
|
|
|
|
3. Profit from operations before other income and
financial costs Exceptional items and tax |
29093.000 |
|
4. Other income |
1763.000 |
|
5. Profit from ordinary activities before finance costs
Exceptional items and tax |
30856.000 |
|
6. Finance costs |
2716.000 |
|
7. Profit from ordinary activities after finance
costs but before exceptional items and Tax |
28140.000 |
|
8. Exceptional item |
-- |
|
9. Profit / (Loss) from ordinary activities before
tax Expense: |
28140.000 |
|
10.Tax expenses |
6536.000 |
|
11.Net
Profit / (Loss) from ordinary activities after tax |
21604.000 |
|
12.Extraordinary Items (net of tax expense) |
-- |
|
13 Profit / (Loss) for the period |
21604.000 |
|
14.Paid-up equity share capital (Nominal value Re.
5/- each) |
19987.000 |
|
15. Reserve excluding
Revaluation Reserves as per balance sheet of previous accounting year |
668874.000 |
|
16.i) Earnings per share (before extraordinary
items) of Re. 5/- each) |
|
|
(a) Basic |
5.405 |
|
(b) Diluted |
5.405 |
|
Earnings per share (after extraordinary items) of
Re. 5/- each) |
|
|
(a) Basic |
5.405 |
|
(b) Diluted |
5.405 |
|
Particulars |
Quarter Ended June 30, 2014 |
|
|
|
|
A. Particulars of shareholding |
|
|
1. Public Shareholding |
|
|
- Number of shares |
1384181356 |
|
- Percentage of shareholding |
34.63% |
|
2. Promoters and
Promoters group Shareholding- |
|
|
a) Pledged /Encumbered |
|
|
Number of shares |
Nil |
|
Percentage of shares (as a % of total shareholding of the
promoter and promoter group) |
Nil |
|
Percentage of shares (as a % of total share capital of the
company) |
Nil |
|
|
|
|
b) Non Encumbered |
|
|
Number of shares |
2613218746 |
|
Percentage of shares (as a % of total shareholding of the
promoter and promoter group) |
100% |
|
Percentage of shares (as a % of total share capital of the
company) |
65.37% |
|
|
|
|
B.
Status of Investor Complaints as on June 30, 2014 is as follows |
|
|
Complaints Pending as on April 1, 2014 |
Nil |
|
Complaints received during the quarter |
1 |
|
Complaints resolve during the quarter |
1 |
|
Complaints Pending as on June 30, 2014 |
Nil |
SEGMENT REPORTING – PREPARED AS PER INDIAN GAAP (AS STANDALONE
ONLY)
|
Particulars |
Quarter
Ended June 30, 2014 |
|
|
|
|
1.
Segment Revenue |
|
|
Net sales/income from each segment |
|
|
a)
Mobile Services India |
118672.000 |
|
b) Telemedia Services |
10040.000 |
|
c)
Airtel Business |
14445.000 |
|
d) Unallocated |
-- |
|
Total |
143157.000 |
|
Less: Inter Segment Eliminations |
6879.000 |
|
Net
Sales/ Income |
136278.000 |
|
2.
Segment Results |
|
|
Profit/(Loss) before tax and net Finance Charges
from each segment |
|
|
a)
Mobile Services India |
27336.000 |
|
b) Telemedia
Services |
1899.000 |
|
c)
Airtel Business |
1274.000 |
|
d) Unallocated# |
(465.000) |
|
Total |
30044.000 |
|
Less: Inter Segment Eliminations |
-- |
|
Total
profit/loss) before tax and Net Finance |
30044.000 |
|
Less : |
|
|
Net Finance Costs / (Income) |
1904.000 |
|
Exceptional Items |
-- |
|
Total Profit Before
Tax |
28140.000 |
|
3.
Capital Employed |
|
|
(Segment assets - Segment
liabilities)* |
|
|
a) Mobile
Services India |
296360.000 |
|
b) Telemedia
Services |
20381.000 |
|
c)
Airtel Business |
5423.000 |
|
d) Unallocated** |
346842.000 |
|
Total |
669006 |
Note:
1. The above financial results for the quarter ended June 30, 2014 have been reviewed by the Audit Committee and approved by the Board of Directors in their respective meetings held on July 29, 2014.
2. Notes to the consolidated financial results form part of the notes to the
standalone financial results.
3. Reserves and surplus as at June 30, 2014 include Rs. 1,297 Mn, towards
employee stock option outstanding
account (net of the related deferred cost) of the Company.
4. On January 8, 2013, the Department of Telecommunications (‘DoT’) issued a
demand on the Company for Rs 51,353 Mn towards levy of one time spectrum
charge. Based on a petition filed by the Company, the Hon’ble High Court of
Bombay, through its order dated January 28, 2013, has directed DoT to respond
and not to take any coercive action until the next date of hearing. The
Company, based on independent legal opinions, has not given effect to the one
time spectrum charges in these financial results.
5. The financial results for the quarter ended March 31, 2014 are the balancing
figures between audited results in respect of the full financial year 2013-14
and the published year to date figures upto the third quarter of financial year
2013-14.
6. Previous year’s/ period’s figures have been regrouped / rearranged, wherever
required.
PRESS RELEASE
Airtel may have to pay Rs. 4360.000 Millions
for merging Qualcomm 4G arm
Telecom major Bharti Airtel may have to cough up Rs 4360.000 Millions for merging Airtel Broadband Services with itself towards differential spectrum cost and migration fee, DoT sources said. Airtel Broadband Services (ABS), formerly Wireless Business Services Private Limited -- a telecom company founded US chip maker Qualcomm -- was acquired by Airtel last year. The DoT sources said the 2013 deal is resulting in a merger which is leading to migration of a licence meant for only internet services to another type of permit that allows use of spectrum for all kinds of telecom services and not just internet.
ABS holds broadband wireless access spectrum in four service areas - Delhi, Mumbai, Kerala and Haryana, that can be used for 4G services. The company has internet service provider licence. Airtel is now moving from its present permit called Unified access Service Licence (UASL) to new licence which is called Unified Licence (UL) and can provide all kind of telecom services, having no objection from security agencies, under this permit with resources and infrastructure it has.
"The Access Services division of the DoT has deemed the proposed merger of ISP holding BWA spectrum with UASL licencee as equivalent to migration of ISP with BWA to UL with authorisation to use BWA for voice service," the source said. Bharti Airtel declined to comment on the matter. "Taking into account the extant balance period of ISP licence and the entry fee payable for UASL in the 4 service areas where ABS holds BWA spectrum, amount payable has been assessed at Rs 4360.000 Millions," the source said.
The access division of DoT is learnt to have calculated latest price of BWA spectrum held by ABS on the basis of prime lending rate of SBI as the company had acquired airwaves in 2010 and auction determined rates are valid for one year only.
"The amount of Rs 4360.000 Millions is difference between entry fee and market price," the source said. Reliance Jio Infocomm, which holds pan-India BWA spectrum, had to pay about Rs 16730.000 Millions for migrating from ISP licence to UL last year. It is now free to use its BWA spectrum for all kind of telecom services.
Bharti Airtel stock
price
On September 22, 2014, Bharti Airtel closed at Rs 415.10, up Rs 0.25, or 0.06 percent. The 52-week high of the share was Rs 419.90 and the 52-week low was Rs 282.10.
The company's trailing 12-month (TTM) EPS was at Rs 19.52 per share as per the quarter ended June 2014. The stock's price-to-earnings (P/E) ratio was 21.27. The latest book value of the company is Rs 166.93 per share. At current value, the price-to-book value of the company is 2.49.
VIEW INDEX OF CHARGES:
No
Charges Exist for Company
UNSECURED LOANS
|
PARTICULAR |
31.03.2014 (Rs.
in Millions) |
31.03.2013 (Rs.
in Millions) |
|
LONG TERM
BORROWINGS |
|
|
|
Term Loans: |
|
|
|
From Banks |
54876.000 |
71059.000 |
|
From others |
35228.000 |
39714.000 |
|
Deferred Payment Liabilities |
1026.000 |
0.000 |
|
Total Unsecured
Loans |
91130.000 |
110773.000 |
|
Less: Current
maturities |
|
|
|
From Bank |
12642.000 |
8294.000 |
|
From Others |
5785.000 |
4091.000 |
|
|
18427.000 |
12385.000 |
|
|
|
|
|
SHORT TERM
BORROWINGS |
|
|
|
Loans |
|
|
|
From Bank |
12510.000 |
8395.000 |
|
Loans repayable on demand |
|
|
|
Cash Credit |
0.000 |
5.000 |
|
Loans from related parties |
0.000 |
22990.000 |
|
Total |
12510.000 |
31390.000 |
FIXED ASSETS
·
Leasehold Land
·
Freehold Land
·
Building
·
Plant and Equipment
·
Furniture and Fixture
·
Vehicles
·
Office Equipment
·
Computer
·
Leasehold Improvements
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 records 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. 60.80 |
|
|
1 |
Rs. 100.06 |
|
Euro |
1 |
Rs. 78.46 |
INFORMATION DETAILS
|
Information
Gathered by : |
DIP |
|
|
|
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
TRU |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
81 |
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.