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3decades

 

MIRA INFORM REPORT

 

 

Report No. :

506550

Report Date :

30.04.2018

 

                 

IDENTIFICATION DETAILS

 

Name :

IDEA CELLULAR LIMITED

 

 

Registered Office :

Suman Tower, Plot No.18, Sector-11, Gandhinagar - 382011, Gujarat

Tel. No.:

91-79-66714000 / 23232250

 

 

Country :

India

 

 

Financials (as on) :

31.03.2018

 

 

Date of Incorporation :

14.03.1995

 

 

Com. Reg. No.:

04-030976

 

 

Capital Investment / Paid-up Capital :

INR 43593.000 Million

 

 

CIN No.:

[Company Identification No.]

L32100GJ1996PLC030976

 

 

IEC No.:

[Import-Export Code No.]

0395041571

 

 

TIN No.:

24073404839

 

 

GSTN :

[Goods & Service Tax Registration No.]

24AAACB2100P1Z3

 

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not Available

 

 

PAN No.:

[Permanent Account No.]

AAACB2100P

 

 

Legal Form :

A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges

 

 

Line of Business :

The company operates mobile telecommunications in India through three segments: Mobility Services, International Long Distance, and Passive Infrastructure.

(a) Mobility Services: providing GSM based mobile and related telephony services

(b) International Long Distance (ILD): providing international long distance services.

(c) Passive Infrastructure (PI): providing passive infrastructure services.

[Registered Activity]

 

 

No. of Employees :

11784 (Approximately)

 

 

 

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23rd January 2017)

 

MIRA’s Rating :

A

 

Credit Rating

Explanation

Rating Comments

A

Acceptable Risk

Business dealings permissible with moderate risk of default

 

Status :

Satisfactory

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Exist

 

 

Comments :

Subject is a part of Aditya Birla Group and was incorporated in the year 1995. It is engaged in providing telecommunication services.


For the financial year 2018, the company has reported dip in its revenue by 21.12% as compared to the previous year along with operational loss.


The sound risk profile of the company is marked by adequate net worth position along with average debt balance sheet profile.


Rating also takes into account the strong financial and managerial support that company receives from its holding entity backed by its well experienced management team.


The rating strengths are partially offset by highly competitive nature of the industry and regulatory uncertainties surrounding the Indian telecom sector.

The telecom companies are facing huge difficulties due to Reliance Jio’s increasing market share in the telecom industry. It has become difficult for other telecom companies to grow their user base as Jio aggressively adds customers at their expense. Fall in subscribers is just one of the problems staring the other telecom players.

 
Payment seems to be slow but correct.

 
In view of strong parental support, the company can be considered for business dealings at usual trade terms and conditions.


Note: The Board of Directors of subject Company had at its Meeting held on March 20, 2017, approved merger of Vodafone India Limited (VIL) and Vodafone Mobile Services Limited (VMSL) with subject Company (Idea). The said merger shall be subject to receipt of necessary approvals of shareholders and creditors, SEBI, Stock Exchanges, National Company Law Tribunal, the Competition Commission of India, Department of Telecommunications, Foreign Investment Promotion Board, Reserve Bank of India and other governmental authorities as may be required. Key Highlights of the Merger of VIL and VMSL with Idea are as under: – Entire business of VIL and VMSL (excluding VIL’s investment in Indus Towers Ltd., and their certain international network assets and information technology platforms which will be disposed of prior to the merger being effective) will vest in the Company. Merged company shall be governed by the shareholders agreement. Both Vodafone Group and existing promoters of Idea shall exercise joint control in the merged company. Share exchange ratio considered for the purpose of merger scheme is consistent with recommendations of joint independent valuers. Post implementation of the composite scheme of amalgamation and arrangement under the applicable provisions of the Companies Act, 2013, Vodafone Group and existing Promoters of Idea (i.e. Aditya Birla Group and its affiliates) will hold 45.1% and 26% of the equity share capital of the merged company, respectively and the balance 28.9% will be held by the public shareholders. With a view to equalizing the shareholdings of the Vodafone Group and existing Promoters of Idea over a period of time, the existing Promoters of Idea have the right to acquire upto 9.5% additional stake from Vodafone Group under an agreed mechanism. If Vodafone Group and the existing Promoters of Idea do not have equal shareholding by the expiry of the 4th year from completion of the amalgamation, Vodafone Group is obliged to reduce its holding in order to equalise its shareholding with that of the existing Promoters of Idea over the following 5 year period. Until equalization is achieved the additional shares held by Vodafone Group will be restricted and votes will be exercised jointly under the terms of the shareholder’s agreement. Existing Promoters of Idea and Vodafone Group shall have the right to nominate 3 directors each. The Board will include Independent Directors as required under law. Existing Promoters of Idea have the sole right to appoint the Chairman. The appointment of the Chief Executive Officer and the Chief Operation Officer will require the approval of both the existing Promoters of Idea and the Vodafone Group. Vodafone Group has the right to appoint the Chief Financial Officer of the merged company. Certain critical matters of the merged company such as the issue of shares otherwise than on a rights basis, consolidation, subdivision or reclassification of share capital, liquidation, amendments to the constitutional documents, entry into related party transactions, change to the name or key brands or branding strategy of the company, etc. are subject to the affirmative consent of the existing Promoters of Idea and Vodafone Group; and the Combination of Idea and Vodafone will create the scale to meet customer’s rapidly accelerating demand for data consumption and enable significant efficiencies. Run rate operating cost and capex synergies are expected to reach INR 140000 million on annual basis by the fourth full year post completion.

 

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

 

Country Name

Previous Rating

(30.09.2017)

Current Rating

(31.12.2017)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CARE

Rating

Long Term Borrowing = AA+

Rating Explanation

High degree of safety and very low credit risk

Date

14.12.2017

 

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 31-03-2018.

 

BIFR (Board for Industrial & Financial Reconstruction) LISTING STATUS

 

Subject’s name is not listed as a Sick Unit in the publicly available BIFR (Board for Industrial & Financial Reconstruction) list as of 30.04.2018.

 

 

IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS

 

Subject’s name is not listed in the publicly available IBBI (Insolvency and Bankruptcy Board of India) list as of report date.

 

 

INFORMATION DENIED BY

 

Name :

Mr. Manoj

Designation :

Accountant Head

Contact No.:

91-79-66714000

 

 

Name :

Mr. Sohaib

Designation :

Admin Head

Contact No.:

91-9702236017

Date :

27.04.2018

 

 

LOCATIONS

 

Registered Office :

Suman Tower, Plot No.18, Sector-11, Gandhinagar – 382011, Gujarat, India

Tel. No.:

91-79-66714000 / 23232250

Mobile No.:

91-9702236017 (Mr. Sohaib)

Fax No.:

91-79-23232251

E-Mail :

shs@idea.adityabirla.com

info@idea.adityabirla.com

Website :

http://www.ideacellular.com

 

 

Corporate Office 1 :

Windsor, 5th Floor, Off CST Road, Near Vidya Nagari, Kalina, Santacruz (East), Mumbai – 400098, Maharashtra, India

 

 

Corporate Office 2 :

 

10th Floor, The Birla Centurion, Plot No.794, B Wing, Pandurang Budhkar Marg,

Worli, Mumbai-400030, Maharashtra, India

 

 

DIRECTORS

 

AS ON 31.03.2017

 

Name :

Mr. Himanshu Kapania

Designation :

Managing Director

Address :

B-1/423 Janak Puri, New Delhi-110058, India

Date of Appointment :

01.04.2011

DIN No.:

03387441

 

 

Name :

Mr. Akshaya Moondra

Designation :

Whole-time Director

Address :

601, 6th Floor, Sangeeta Apartments 15th  Road, S'cruz West, Mumbai – 400054, Maharashtra, India

Date of Appointment :

08.07.2016

DIN No.:

02606784

 

 

Name :

Ms. Tarjani Manmukram Vakil

Designation :

Director

Address :

A-1, Ishwardas Mansions Nana Chowk, Mumbai – 400007, Maharashtra, India

Date of Birth/Age :

30.10.1936

Date of Appointment :

30.09.2006

DIN No.:

00009603

 

 

Name :

Mr. Kumar Mangalam Birla

Designation :

Director

Address :

Mangal Adityayan, 20 Carmichel Road, Behind Jaslok Hospital, Mumbai- 400026, Maharashtra, India

Date of Birth/Age :

14.06.1967

Date of Appointment :

20.06.2006

DIN No.:

00012813

 

 

Name :

Mr. Murari Pejavar

Designation :

Director

Address :

2, Gilchrist Avenue, Harrington Road, Chetpet, Chennai-600031, Tamilnadu, India

Date of Appointment :

20.10.2008

DIN No.:

00020437

 

 

Name :

Mr. Sanjeev Aga

Designation :

Director

Address :

1301 Kavita Kunj Chs Limited, Satguru Sanskar, Plot No. 19, Tps Iv, 3rd Road, Near Almeida Park, Bandra (West), Mumbai-400050, Maharashtra, India

Date of Birth/Age :

01.02.1952

Date of Appointment :

29.09.2004

DIN No.:

00022065

 

 

Name :

Mrs. Rajashree Birla

Designation :

Director

Address :

Mangal Adityayan, 20 Carmichel Road, Behind Jaslok Hospital, Mumbai- 400026, Maharashtra, India

Date of Birth/Age :

15.09.1945

Date of Appointment :

20.06.2006

DIN No.:

00022995

 

 

Name :

Mr. Arun Kannan Thiagarajan

Designation :

Director

Address :

Grace Home, 37 Kanakapura Road, Basavangudi, Bangalore-560004, Karnataka, India

Date of Birth/Age :

07.09.1944

Date of Appointment :

02.09.2006

DIN No.:

00292757

 

 

Name :

Mr. Mohanbir Singh Gyani

Designation :

Director

Address :

2137 Cascara Ct Pleasanton 94588 Us

Date of Appointment :

02.09.2006

DIN No.:

00943522

 

 

Name :

Ms. Baldev Raj Gupta

Designation :

Director

Address :

H No.1180, Urban Estate Phase 1, Jalandhar-144022, Punjab, India

Date of Appointment :

13.05.2017

DIN No.:

00020066

 

 

KEY EXECUTIVES

 

Name :

Mr. Akshaya Moondra

Designation :

Chief Financial Officer (KMP)

Address :

601 6th Floor, Sangeeta Apartments 15th Road, S'cruz West, Mumbai – 400054, Maharashtra, India

Date of Appointment :

21.07.2014

PAN No.:

AJJPM6401F

 

 

Name :

Mr. Pankaj Kapdeo

Designation :

Company Secretary

Address :

Building 52, Flat No. 203 Sector 54,56,58, Nerul-400706, Maharashtra, India

Date of Appointment :

25.04.2007

PAN No.:

ADUPK0698P

 

 

Name :

Mr. Manoj

Designation :

Accountant Head

 

 

Name :

Mr. Sohaib

Designation :

Admin Head

 

 

SHAREHOLDING PATTERN

 

AS ON MARCH 2018

 

Category of shareholder

Total nos. shares held

Shareholding as a % of total no. of shares (calculated as per SCRR, 1957)As a % of (A+B+C2)

(A) Promoter & Promoter Group

1855480712

42.56

(B) Public

2503840218

57.44

Grand Total

4359320930

100.00

 

 

 

 

 

 

STATEMENT SHOWING SHAREHOLDING PATTERN OF THE PROMOTER AND PROMOTER GROUP

 

Category of shareholder

Total nos. shares held

Shareholding as a % of total no. of shares (calculated as per SCRR, 1957)As a % of (A+B+C2)

A1) Indian

 

0.00

Individuals/Hindu undivided Family

233333

0.01

Kumar Mangalam Birla

233333

0.01

Any Other (specify)

1528847379

35.07

Grasim Industries Limited

1008540115

23.14

Hindalco Industries Limited

228340226

5.24

Birla Tmt Holdings Private Limited

283798538

6.51

Pilani Investment And Industries Corporation Limited

8168500

0.19

Sub Total A1

1529080712

35.08

A2) Foreign

 

0.00

Foreign Portfolio Investor

326400000

7.49

Oriana Investments Pte Limited

163200000

3.74

Elaine Investments Pte Limited

163200000

3.74

Sub Total A2

326400000

7.49

A=A1+A2

1855480712

42.56

 

 

STATEMENT SHOWING SHAREHOLDING PATTERN OF THE PUBLIC SHAREHOLDER

 

Category & Name of the Shareholders

Total no. shares held

Shareholding % calculated as per SCRR, 1957 As a % of (A+B+C2)

 

 

 

 

 

 

 

 

 

B1) Institutions

 

0.00

Mutual Funds/

292354955

6.71

Venture Capital Funds

500000

0.01

Alternate Investment Funds

6181515

0.14

Foreign Portfolio Investors

1164850855

26.72

Goldman Sachs India Limited

45425515

1.04

Vanguard International Growth Fund

45357324

1.04

First State Investments ICVC- Stewart Investors Asia Pacific Leaders Fund

75857692

1.74

First State Investments ICVC- Stewart Investors Global Emerging Markets Leaders Fund

52892154

1.21

Franklin Templeton Investment Funds

117194916

2.69

Financial Institutions/ Banks

4179699

0.10

Insurance Companies

204656074

4.69

ICICI Prudential Life Insurance Company Limited

152925389

3.51

Sub Total B1

1672723098

38.37

B2) Central Government/ State Government(s)/ President of India

 

0.00

B3) Non-Institutions

 

0.00

Individual share capital upto INR 0.200 Million

61494586

1.41

Individual share capital in excess of INR 0.200 Million

21214137

0.49

Any Other (specify)

748408397

17.17

Bodies Corporate

23143917

0.53

Clearing Members

3069249

0.07

Director or Director's Relatives

1377999

0.03

Non-Resident Indian (NRI)

2862388

0.07

Overseas Corporate Bodies

712000543

16.33

Axiata Investments1 (India) Limited [Foreign Corporate Bodies]

464734670

10.66

Axiata Investments 2 (India) Limited [Foreign Corporate Bodies]

247265873

5.67

Trusts

5954301

0.14

Sub Total B3

831117120

19.07

B=B1+B2+B3

2503840218

57.44

 

 

BUSINESS DETAILS

 

Line of Business :

The company operates mobile telecommunications in India through three segments: Mobility Services, International Long Distance, and Passive Infrastructure.

(a) Mobility Services: providing GSM based mobile and related telephony services

(b) International Long Distance (ILD): providing international long distance services.

(c) Passive Infrastructure (PI): providing passive infrastructure services.

[Registered Activity]

 

 

Products / Services :

NIC Code No.

Product Description

612

Wireless Telecommunication services

 

 

Brand Names :

Not Available

 

 

Agencies Held :

Not Available

 

 

Exports :

Not Divulged 

 

 

Imports :

Not Divulged 

 

 

Terms :

Not Divulged 

 

PRODUCTION STATUS – (NOT AVAILABLE)

 

 

GENERAL INFORMATION

 

Suppliers :

Reference :

Not Divulged 

Name of the Person :

--

Contact No.:

--

Since How Long Known :

--

Maximum Limit Dealt :

--

Experience :

--

Remark :

--

 

 

Customers :

 

Reference :

Not Divulged 

Name of the Person :

--

Contact No.:

--

Since How Long Known :

--

Maximum Limit Dealt :

--

Experience :

--

Remark :

--

 

 

No. of Employees :

11784 (Approximately)

 

 

Bankers :

Bank Name

IDBI Bank Limited

Branch

IDBI Tower WTC Complex, Cuffe Parade, Mumbai-400005, Maharashtra, India

Person Name (With Designation)

--

Contact Number

--

Name of Account Holder

--

Account Number

--

Account Since (Date/Year of Account Opening)

--

Average Balance Maintained (If Possible)

--

Credit Facilities Enjoyed (If any)

--

Account Operation

--

Remarks (If any)

--

 

 

Facilities :

SECURED LOANS

31.03.2018

INR In Million

31.03.2017

INR In Million

LONG TERM BORROWINGS

 

 

Redeemable Non-Convertible Debentures (NCDs)

NA

13952.360

Term Loans

 

 

Foreign currency loan - From others

NA

19504.570

Rupee loan

 

 

From banks

NA

44942.920

Vehicle loan from banks

NA

169.380

 

 

 

SHORT TERM BORROWINGS

 

 

Bank overdraft

(Secured by way of second pari passu charge on movable and immovable assets of the company)

NA

20.090

Total

NA

78589.320

 

 

Statutory Auditors :

 

Name :

Deloitte Haskins and Sells LLP

Chartered Accountants

Address :

706, B Wing, ICC Trade Tower, Senapati Bapat Road, Pune-411016, Maharashtra, India

Tel No.:

91-22-61854000

Fax No.:

91-20-66244605

E-Mail :

hmjoshi@deloitte.com

 

 

Cost Auditors

 

Name :

Sanjay Gupta and Associates

Cost Accountants

Address :

C-4E/135, Janakpuri New Delhi-110058, India

 

 

Memberships :

Not Available

 

 

Collaborators :

Not Available

 

 

Subsidiaries :

(As on 31.03.2017)
  • Idea Telesystems Limited (ITL)

CIN No.: U74899DL1983PLC016517

  • Aditya Birla Telecom Limited (ABTL)

CIN No.: U64202MH2005PLC158190

  • Idea Cellular Services Limited (ICSL)

CIN No.: U74140GJ2007PLC051881

  • Idea Cellular Infrastructure Services Limited (ICISL)

CIN No.: U45208GJ2007PLC051880

  • Idea Mobile Commerce Services Limited (IMCSL)

CIN No.: U32204DL2007PLC169599

 

 

Associate : (As on 31.03.2017)

Aditya Birla Idea Payments Bank Limited (ABIPBL)

CIN No.: U65923MH2016PLC273308

 

 

Joint Venture of Subsidiary ABTL (JV) :

(As on 31.03.2017)
  • Indus Towers Limited (Indus)

CIN No.: U92100DL2007PLC170574

  • Aditya Birla Capital Advisors Private Limited
  • Aditya Birla Finance Limited
  • Aditya Birla Financial Services Limited
  • Aditya Birla Financial Shared Services Limited
  • Aditya Birla Health Insurance Company Limited
  • Aditya Birla Housing Finance Limited
  • Aditya Birla Insurance Brokers Limited
  • Aditya Birla Money Limited
  • Aditya Birla Money Mart Limited (ABMML)
  • Aditya Birla Nuvo Limited

 

 

Entities having significant influence :

(As on 31.03.2017)
  • Axiata Investments 1 (India) Limited (AI1)
  • Axiata Investments 2 (India) Limited (AI2)
  • Birla Institute of Technology and Science Company
  • Birla Sun Life AMC Limited
  • Birla Sun Life Asset Management Company Limited
  • Birla Sun Life Insurance Company Limited
  • Birla TMT Holdings Private Limited
  • Dialog Axiata PLC- Sri Lanka
  • Grasim Industries Limited
  • Hindalco Industries Limited
  • Ultratech Cement Limited

 

 

Others :

(As on 31.03.2017)
  • Agora Advisory Private Limited
  • Bharucha and Partners
  • Breach Candy Hospital and Research Centre
  • Citec Engineering India Private Limited
  • G.D. Birla Medical Research & Education Foundation
  • Svatantra Microfin Private Limited

 

 

Trust :

(As on 31.03.2017)
  • ICL Employee’s Group Gratuity Scheme
  • ICL Employee Superannuation Scheme
  • Spice Communications Limited Employee Superannuation Scheme

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2018

 

Authorised Capital : Not Available

 

Issued, Subscribed & Paid-up Capital : INR 43593.000 Million

 

 

 

 

 

 

AS ON 31.03.2017

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

6775000000

Equity Shares

INR 10/- each

INR 67750.000 Million

1500

Redeemable Cumulative Non-Convertible Preference Shares

INR 10000000/- each

INR 15000.000 Million

 

Total

 

INR 82750.000 Million

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

3605328231

Equity Shares

INR 10/- each

INR 36053.280 Million

 

 

FINANCIAL DATA

[all figures are INR Million]

 

ABRIDGED BALANCE SHEET [STANDALONE]

 

SOURCES OF FUNDS

31.03.2018

31.03.2017

31.03.2016

 

 

 

 

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

43593.000

36053.280

36005.090

(b) Reserves & Surplus

213102.000

201184.310

211646.880

(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)

256695.000

237237.590

247651.970

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

569408.000

516378.280

359040.420

(b) Deferred tax liabilities (Net)

0.000

16791.070

22357.300

(c) Other long term liabilities

31663.000

14941.790

27683.660

(d) long-term provisions

3080.000

3311.000

3353.310

Total Non-current Liabilities (3)

604151.000

551422.140

412434.690

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

217.000

336.500

16455.780

(b) Trade payables

35605.000

39921.330

32038.740

(c) Other current liabilities

70345.000

128544.880

77054.320

(d) Short-term provisions

218.000

161.720

916.330

Total Current Liabilities (4)

106385.000

168964.430

126465.170

 

 

 

 

TOTAL

967231.000

957624.160

786551.830

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

244542.000

221885.230

209633.630

(ii) Intangible Assets

552536.000

539364.600

440079.350

(iii) Capital work-in-progress

6513.000

13243.960

6613.480

(iv) Intangible assets under development

29340.000

62048.000

53774.790

(b) Non-current Investments

18583.000

22265.980

16668.520

(c) Deferred tax assets (net)

8220.000

0.000

0.000

(d)  Long-term Loan and Advances

24.000

25.820

24.980

(e) Other Non-current assets

26791.000

32592.590

22153.860

Total Non-Current Assets

886549.000

891426.180

748948.610

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

45279.000

40247.090

8328.460

(b) Inventories

339.000

542.100

851.460

(c) Trade receivables

8874.000

12580.950

11360.580

(d) Cash and cash equivalents

223.000

312.650

7576.630

(e) Short-term loans and advances

20.000

20.600

16.610

(f) Other current assets

25947.000

12494.590

9469.480

Total Current Assets

80682.000

66197.980

37603.220

 

 

 

 

TOTAL

967231.000

957624.160

786551.830

 

 

PROFIT & LOSS ACCOUNT [STANDALONE]

 

 

PARTICULARS

31.03.2018

31.03.2017

31.03.2016

 

SALES

 

 

 

 

Income

278286.000

352786.460

358036.900

 

Other Income

2982.000

1970.250

1773.430

 

TOTAL

281268.000

354756.710

359810.330

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Employees benefits expense

13968.000

16256.380

14735.230

 

Network expenses and IT outsourcing cost

97449.000

106648.540

92655.820

 

License fees and spectrum usage charges

28667.000

40514.830

41507.830

 

Roaming and access charges

35358.000

42754.440

46653.460

 

Subscriber acquisition and servicing expenditure

0.000

31441.660

30019.480

 

Advertisement and Business Promotion Expenditure

0.000

4554.020

4833.190

 

Marketing, content, customer acqusition and service costs

37298.000

0.000

0.000

 

Administration and other expenses

9089.000

9668.170

8686.000

 

TOTAL

221829.000

251838.040

239091.010

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

59439.000

102918.670

120719.320

 

 

 

 

 

Less

FINANCIAL EXPENSES

49245.000

40108.530

17778.520

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

10194.000

62810.140

102940.800

 

 

 

 

 

Less

DEPRECIATION/ AMORTISATION

83161.000

77000.170

62232.290

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

(72967.000)

(14190.030)

40708.510

 

 

 

 

 

Less

TAX

(25159.000)

(5879.280)

14245.630

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX 

(47808.000)

(8310.750)

26462.880

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

F.O.B. Value of Exports

 NA

6738.000

7484.500

 

TOTAL EARNINGS

 NA

6738.000

7484.500

 

 

 

 

 

 

Earnings / (Loss) Per Share (INR)

(12.95)

(2.31)

7.35

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2018

31.03.2017

31.03.2016

Current Maturities of Long term debt

NA

33820.180

29916.860

Cash generated from operations

NA

107610.690

116828.100

Net Cash from / (used in) Operating Activities

NA

101727.570

108529.010

 

 

KEY RATIOS

 

EFFICIENCY RATIOS

 

PARTICULARS

 

31.03.2018

31.03.2017

31.03.2016

Average Collection Days

(Sundry Debtors / Income * 365)

11.64

13.02

11.58

 

 

 

 

Account Receivables Turnover

(Income / Sunday Debtors)

31.36

28.04

31.52

 

 

 

 

Average Payment Days

(Sundry Creditors / Purchases * 365 Days)

0.00

0.00

0.00

 

 

 

 

Inventory Turnover

(Operating Income / Inventories)

175.34

189.85

141.78

 

 

 

 

Asset Turnover

(Operating Income / Net Fixed Assets)

0.07

0.12

0.17

 

 

LEVERAGE RATIOS

 

PARTICULARS

 

31.03.2018

31.03.2017

31.03.2016

Debt Ratio

((Borrowing + Current Liabilities) / Total Assets)

0.70

0.75

0.66

 

 

 

 

Debt Equity Ratio

(Total Liability / Networth)

2.22

2.32

1.64

 

 

 

 

Current Liabilities to Networth

(Current Liabilities / Net Worth)

0.41

0.71

0.51

 

 

 

 

Fixed Assets to Networth

(Net Fixed Assets / Networth)

3.24

3.53

2.87

 

 

 

 

Interest Coverage Ratio

(PBIT / Financial Charges)

1.21

2.57

6.79

 

 

PROFITABILITY RATIOS

 

PARTICULARS

 

 

31.03.2018

31.03.2017

31.03.2016

Net Profit Margin

[(PAT / Sales) * 100]

%

(17.18)

(2.36)

7.39

 

 

 

 

 

Return on Total Assets

((PAT / Total Assets) * 100)

%

(4.94)

(0.87)

3.36

 

 

 

 

 

Return on Investment (ROI)

((PAT / Networth) * 100)

%

(18.62)

(3.50)

10.69

 

SOLVENCY RATIOS

 

PARTICULARS

 

31.03.2018

31.03.2017

31.03.2016

Current Ratio

(Current Assets / Current Liabilities)

0.76

0.39

0.30

 

 

 

 

Quick Ratio

((Current Assets – Inventories) / Current Liabilities)

0.76

0.39

0.29

 

 

 

 

G-Score Ratio Financial

(Networth / Total Assets)

0.27

0.25

0.31

 

 

 

 

G-Score Ratio Debt

(Debts / Equity Capital)

13.07

15.27

11.26

 

 

 

 

G-Score Ratio Liquidity

(Total Current Assets / Total Current Liabilities)

0.76

0.39

0.30

Total Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term debts

 

 

STOCK PRICES

 

Face Value

INR 10.00/-

Market Value

INR 68.65/-

 

FINANCIAL ANALYSIS

[all figures are INR Million]

 

DEBT EQUITY RATIO

 

Particular

31.03.2016

31.03.2017

31.03.2018

 

INR In Million

INR In Million

INR In Million

Share Capital

36005.090

36053.280

43593.000

Reserves & Surplus

211646.880

201184.310

213102.000

Money received against share warrants

0.000

0.000

0.000

Share Application money pending allotment

0.000

0.000

0.000

Net worth

247651.970

237237.590

256695.000

 

 

 

 

Long-term borrowings

359040.420

516378.280

569408.000

Short term borrowings

16455.780

336.500

217.000

Total borrowings

375496.200

516714.780

569625.000

Debt/Equity ratio

1.516

2.178

2.219

 

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2016

31.03.2017

31.03.2018

 

INR In Million

INR In Million

INR In Million

Sales

358036.900

352786.460

278286.000

 

 

(1.466)

(21.118)

 

 

 

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2016

31.03.2017

31.03.2018

 

INR In Million

INR In Million

INR In Million

Sales

358036.900

352786.460

278286.000

Profit / (Loss)

26462.880

(8310.750)

(47808.000)

 

7.39%

(2.36%)

(17.18%)

 

 

 

 

ABRIDGED BALANCE SHEET [CONSOLIDATED]

 

SOURCES OF FUNDS

 

31.03.2018

31.03.2017

 

 

 

 

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

 

43593.000

36053.280

(b) Reserves & Surplus

 

229031.000

211269.160

(c) Money received against share warrants

 

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

 

0.000

0.000

Total Shareholders’ Funds (1) + (2)

 

272624.000

247322.440

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

 

569408.000

516378.280

(b) Deferred tax liabilities (Net)

 

659.000

13587.100

(c) Other long term liabilities

 

31663.000

15302.270

(d) long-term provisions

 

3107.000

3842.290

Total Non-current Liabilities (3)

 

604837.000

549109.940

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

 

217.000

347.090

(b) Trade payables

 

35479.000

40776.670

(c) Other current liabilities

 

72391.000

129292.160

(d) Short-term provisions

 

224.000

198.640

Total Current Liabilities (4)

 

108311.000

170614.560

 

 

 

 

TOTAL

 

985772.000

967046.940

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

 

244549.000

228442.960

(ii) Intangible Assets

 

552370.000

539189.450

(iii) Capital work-in-progress

 

6513.000

13302.990

(iv) Intangible assets under development

 

29340.000

62048.000

(b) Non-current Investments

 

16601.000

14784.750

(c) Deferred tax assets (net)

 

12052.000

368.970

(d)  Long-term Loan and Advances

 

24.000

25.930

(e) Other Non-current assets

 

32486.000

32574.750

Total Non-Current Assets

 

893935.000

890737.800

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

 

56304.000

48997.520

(b) Inventories

 

367.000

587.970

(c) Trade receivables

 

8874.000

13139.210

(d) Cash and cash equivalents

 

291.000

827.430

(e) Short-term loans and advances

 

20.000

20.750

(f) Other current assets

 

25981.000

12736.260

Total Current Assets

 

91837.000

76309.140

 

 

 

 

TOTAL

 

985772.000

967046.940

 

 

PROFIT & LOSS ACCOUNT [CONSOLIDATED]

 

 

PARTICULARS

 

31.03.2018

31.03.2017

 

SALES

 

 

 

 

Income

 

282789.000

355757.370

 

Other Income

 

3530.000

3069.350

 

TOTAL

 

286319.000

358826.720

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Trading Goods

 

73.000

279.190

 

Employees benefits expense

 

15430.000

17976.450

 

Network expenses and IT outsourcing cost

 

97334.000

106652.640

 

License fees and spectrum usage charges

 

28667.000

40514.830

 

Roaming and access charges

 

35358.000

42754.440

 

Subscriber acquisition and servicing expenditure

 

0.000

30282.230

 

Advertisement and Business Promotion Expenditure

 

0.000

4576.890

 

Marketing, content, customer acqusition and service costs

 

36090.000

0.000

 

Share in profit / (loss) of joint venture and associates

 

(3224.000)

(4302.930)

 

Share in loss of associate

 

0.000

84.670

 

Fair value (ganin)/ loss on compulsory convertible

 

0.000

290.150

 

Administration and other expenses

 

9362.000

9957.840

 

TOTAL

 

219090.000

249066.400

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

 

67229.000

109760.320

 

 

 

 

 

Less

FINANCIAL EXPENSES

 

48130.000

40120.630

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

 

19099.000

69639.690

 

 

 

 

 

Less

DEPRECIATION/ AMORTISATION

 

84091.000

78272.040

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

 

(64992.000)

(8632.350)

 

 

 

 

 

Less

TAX

 

(23310.000)

(4635.390)

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX 

 

(41682.000)

(3996.960)

 

 

 

 

 

 

OTHER COMPREHENSIVE INCOME / (LOSS)

 

 

 

 

 

 

 

 

 

Items not to be reclassified to profit or loss in subsequent periods:

 

 

 

 

 

 

 

 

 

Re-measurement gains/(losses) of defined benefit plans

 

 442.000

 (56.820)

 

Income tax effect

 

 (152.000)

 19.300

 

Group’s share in other comprehensive income of joint venture and associate

 

 (7.000)

 (5.820)

 

OTHER COMPREHENSIVE INCOME / (LOSS) FOR THE YEAR, NET OF TAX

 

283.000 

(43.340) 

 

 

 

 

 

 

TOTAL COMPREHENSIVE INCOME / (LOSS) FOR THE YEAR

 

(41399.000)

(4040.300)

 

 

 

 

 

 

Earnings / (Loss) Per Share (INR)

 

(11.36)

(1.23)

 

 

LEGAL CASE

 

CASE STATUS

 

Case Details

Case Type

Sum Case

Filing No.

304695/2011     Filing date: 25-02-2011

Registration No.

304695/2011     Registration date: 25-02-2011

Case code

203403046952011

 

CASE STATUS

First Hearing Date

25-02-2011

Next Hearing Date

26-09-2014

Purpose of Hearing

Order on Exh

Court No & Judge

13 - 11th Jt.CJJD JMFC Nagpur

 

Petitioner(s) & Advocate(s)

Petitioner - State of Maharashtra LEO
Address - Ofice at 1st Floor Block-C CGO Complex Seminary Hills Nagpur
Advocate - APP

Respondent(s) & Advocate(s)

Respondent - Ms. Idea Cellular Ltd.
Address - 111 Sharda Central Off Karve Rd. Pune
Advocate - 

 

ACTS

Under Act(s)

The Contract Labour Act (Reg. & Abolition),1970

 

 

Under Section(s)

23 24

 

 

Subject

 

 

 

 

 

 

LOWER COURT INFORMATION

 

 

Court No & Name

---

 

 

Case No & Year

---

 

 

Case Decision Date

---

 

 

 

 

FIR DETAILS

Police Station

 

FIR No.

0

Year

0



History Of Case Hearing

Regn. No.

Judge 

Bussiness on Date

Hearing Date

Purpose of Hearing

304695/2011

11th Jt.CJJD JMFC Nagpur

 

25-02-2011

Order on Exh

304695/2011

11th Jt.CJJD JMFC Nagpur

25-02-2011

07-03-2011

Order on Exh

304695/2011

11th Jt.CJJD JMFC Nagpur

07-03-2011

25-03-2011

Order on Exh

304695/2011

11th Jt.CJJD JMFC Nagpur

25-03-2011

25-08-2011

Order on Exh

304695/2011

11th Jt.CJJD JMFC Nagpur

25-08-2011

25-04-2012

Order on Exh

304695/2011

11th Jt.CJJD JMFC Nagpur

25-04-2012

25-10-2012

Order on Exh

304695/2011

11th Jt.CJJD JMFC Nagpur

25-10-2012

13-03-2013

Order on Exh

304695/2011

11th Jt.CJJD JMFC Nagpur

13-03-2013

13-06-2013

Order on Exh

304695/2011

11th Jt.CJJD JMFC Nagpur

13-06-2013

13-09-2013

Order on Exh

304695/2011

11th Jt.CJJD JMFC Nagpur

13-09-2013

13-12-2013

Order on Exh

304695/2011

11th Jt.CJJD JMFC Nagpur

13-12-2013

10-02-2014

Order on Exh

304695/2011

11th Jt.CJJD JMFC Nagpur

10-02-2014

10-04-2014

Order on Exh

304695/2011

11th Jt.CJJD JMFC Nagpur

10-04-2014

26-04-2014

Order on Exh

304695/2011

11th Jt.CJJD JMFC Nagpur

26-04-2014

26-06-2014

Order on Exh

304695/2011

11th Jt.CJJD JMFC Nagpur

26-06-2014

26-09-2014

Order on Exh



Writ Information

Regn. No.

Appellate Case No.

Appellate Authority

Date of Receipt



Case Transfer Details Between The Courts

Regn. No.

Transfer Date

From Court No 
& Judge

To Court No 
& Judge

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check list by info agents

Available in Report (Yes/No)

1

Year of establishment

Yes

2

Constitution of the entity -Incorporation details

Yes

3

Locality of the entity

Yes

4

Premises details

No

5

Buyer visit details

--

6

Contact numbers

Yes

7

Name of the person contacted

Yes

8

Designation of contact person

Yes

9

Promoter’s background

Yes

10

Date of Birth of Proprietor / Partners / Directors

Yes

11

Pan Card No. of Proprietor / Partners

No

12

Voter Id Card No. of Proprietor / Partners

No

13

Type of business

Yes

14

Line of Business

Yes

15

Export/import details (if applicable)

No

16

No. of employees

Yes

17

Details of sister concerns

Yes

18

Major suppliers

No

19

Major customers

No

20

Banking Details

Yes

21

Banking facility details

Yes

22

Conduct of the banking account

--

23

Financials, if provided

Yes

24

Capital in the business

Yes

25

Last accounts filed at ROC, if applicable

Yes

26

Turnover of firm for last three years

Yes

27

Reasons for variation <> 20%

--

28

Estimation for coming financial year

No

29

Profitability for last three years

Yes

30

Major shareholders, if available

Yes

31

External Agency Rating, if available

Yes

32

Litigations that the firm/promoter involved in

Yes

33

Market information

--

34

Payments terms

No

35

Negative Reporting by Auditors in the Annual Report

No

 

CORPORATE INFORMATION (As on 31.03.2017)

 

The Company, a public company domiciled in India was incorporated on March 14, 1995. It is a part of the Aditya Birla Group and its shares are listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) in India (Scrip Code BSE :532822; NSE:IDEA). The Company is amongst the top three telecom service providers in India with pan India operations. It is engaged in the business of Mobility and Long Distance services.

 

 

UNSECURED LOANS:

 

Unsecured Loan

31.03.2018

INR In Million

31.03.2017

INR In Million

Long-term Borrowings

 

 

Redeemable Non-Convertible Debentures (NCDs)

NA

59879.120

Term Loans

 

 

Foreign currency loan - From banks

NA

10580.660

Deferred Payment Liabilities towards Spectrum

NA

367349.270

 

 

 

Short-term borrowings

 

 

Bank overdraft

NA

316.410

Total

NA

438125.460

 

 

INDEX OF CHARGE:

 

SNo

SRN

Charge Id

Charge Holder Name

Date of Creation

Date of Modification

Amount

Address

1

G68068451

100134479

IDBI Bank Limited

01/11/2017

10/11/2017

80000000000.0

IDBI Tower WTC Complex, Cuffe Parade, Mumbai-400005, Maharashtra, India

2

G45168440

100101916

IDBI Trusteeship Services Limited

04/05/2017

-

10000000000.0

Asian Building, Ground Floor 17, R. Kamani Marg, Ballard Estate, Mumbai-400001, Maharashtra, India

3

G13766985

100053173

State Bank of India

08/09/2016

-

50000000000.0

Neville House, J.N. Heredia Marg, Ballard Estate, Mumbai-400001, Maharashtra, India

4

G13770847

100053178

Canara Bank

08/09/2016

-

10000000000.0

1st Floor, A-Wing, Canara Bank BuildingC-14, G- Block, Bandra Kurla Complex, Bandra East, Mumbai-400051, Maharashtra, India

5

G13817010

100053255

Punjab National Bank

08/09/2016

-

20000000000.0

Large Corporate Branch, Maker Tower "E", Ground Floor, Cuffe Parade, Mumbai-400005, Maharashtra, India

6

C61910311

10586444

HDFC BANK LIMITED

24/07/2015

-

300000000.0

HDFC Bank House, Senapati Bapat Marg, Lower Parel West, Mumbai-400013, Maharashtra, India

7

C43990746

10549947

IDBI Bank Limited

23/01/2015

-

19750000000.0

IDBI Tower WTC Complex, Cuffe Parade, Mumbai-400005, Maharashtra, India

8

C11802303

10509697

HDFC BANK LIMITED

24/06/2014

-

300000000.0

HDFC Bank House, Senapati Bapat Marg, Lower Parel West, Mumbai-400013, Maharashtra, India

9

B98509151

10482657

IDBI Bank Limited

14/02/2014

-

5000000000.0

IDBI Tower WTC Complex, Cuffe Parade, Mumbai-400005, Maharashtra, India

10

B80397052

10438864

HDFC BANK LIMITED

29/05/2013

-

300000000.0

HDFC Bank House, Senapati Bapat Marg, Lower Parel West, Mumbai-400013, Maharashtra, India

 

 

CONTINGENT LIABILITIES: (As on 31.03.2017)

 

A) Licensing Disputes:

 

i. One Time Spectrum Charges:

 

In Financial year 2012-13, DoT had issued demand notices towards one time spectrum charges

- For spectrum beyond 6.2 MHz in respective service areas for retrospective period from July 1, 2008 to December 31, 2012, amounting to INR 3691.300 Million, and

 

- For spectrum beyond 4.4 MHz in respective service areas effective January 1, 2013 till expiry of the period as per respective licenses amounting to INR 17443.700 Million.

 

In the opinion of Company, inter-alia, the above demands amount to alteration of financial terms of the licenses issued in the past. The Company had therefore, petitioned the Hon’ble High Court of Bombay, where the matter was admitted and is currently sub-judice. The Hon’ble High Court of Bombay has directed the DoT, not to take any coercive action until the matter is further heard. No effects have been given in the financial statements for the above.

 

ii. Other Licensing Disputes - INR 58318.180 Million. (Previous year: INR 30501.90 Million, Transition date: INR 35520.91 Million.):

 

- Demands due to difference in interpretation of definition of adjusted gross revenue (AGR) and other license fee

assessment related matters. Most of these demands are currently before the Hon’ble TDSAT, Hon’ble High court and Hon’ble Supreme Court.

- Disputes relating to alleged non-compliance of licensing conditions & other disputes with DoT, either filed by or against the Company and pending before Hon’ble Supreme Court / TDSAT.

 

- Demands on account of alleged violations in license conditions relating to amalgamation of erstwhile Spice Communications Limited currently sub-judice before the Hon’ble TDSAT.

 

- Demand with respect to upfront spectrum amounts for continuation of services from February 2, 2012 till various dates in the service areas where the licenses were quashed following the Hon’ble Supreme Court Order.

 

B) Aditya Birla Telecom Limited ("ABTL") has an obligation to buy the equity shares of Indus held by P5 Asia Holdings Investments (Mauritius) Limited (P5) at fair value if:

 

i. ABTL sells its stake in Indus before P5 and P5 is not able to find a buyer for their stake in Indus, or

 

ii. Aditya Birla Group companies collectively cease to be the single largest shareholder of the Company before P5 is able to sell its stake in Indus.

 

In the event ABTL is not able to fulfill its obligation, the same will devolve on the company.

 

C. Other Matters:

                                                                                                                                                         (INR in Million)

Particulars

As on 31st March, 2018

As on 31st March, 2017

Income Tax Matters not acknowledged as debts

NA

73969.180

Sales Tax and Entertainment Tax Matters not acknowledged as debts

NA

1684.320

Service Tax Matters not acknowledged as debts

NA

3041.460

Entry Tax and Customs Matters not acknowledged as debts

NA

332.700

Other claims not acknowledged as debts

NA

2473.840

 

 

FIXED ASSETS:

 

Tangible Asset:

  • Freehold Land
  • Building
  • Plant and Machinery
  • Furniture and Fixture
  • Office Equipment
  • Computer
  • Vehicles

 

 

Intangible Asset:

  • Computer Software

 

 

PRESS RELEASE / WEBSITE DETAILS

 

VODAFONE-IDEA MERGER: VODAFONE SELLS MOBILE TOWER BUSINESS TO AMERICAN TOWER CORP

 

The Vodafone-Idea merger got one step closer, as UK-based Vodafone sold its mobile tower business to ATC, that will soon purchase towers held by Idea.

 

Date: 05.04.2018

 

Telecom infrastructure firm American Tower Corporation and Vodafone India said that they have completed the INR 38500.000 Million deal under which ATC has bought the mobile operator’s tower business.

 

“Vodafone India has completed the sale of its standalone tower business in India to ATC Telecom Infrastructure Private Limited for an enterprise value of INR 38.5 billion,” the mobile operator said in statement. ATC had signed a pact last November to acquire around 20,000 mobile towers of Vodafone and Idea Cellular for total value of around INR 78500.000 Million.

 

“We are pleased to acquire this portfolio, which will complement our existing footprint and help us serve our tenants in India as they expand 4G services in the coming years,” ATC’s EVP and President, Asia, Amit Sharma said. The purchase of Vodafone mobile towers adds nearly 10,200 sites to the existing Indian portfolio of 58,000 mobile towers of ATC.

 

The completion of this deal brings the Idea and Vodafone merger a step closer. The closure of INR 40000.000 Million mobile tower sale deal between ATC and Idea is now awaited. According to government sources, the merger of Idea and Vodafone is likely to be cleared after the closure of Idea-ATC deal. “We expect regulatory processes to be completed by end of this month (for closure of deal with Idea). The Department of Telecom is driving it. We are hopeful of completing the deal by May,” Sharma said.

 

Vodafone said that the company along with Idea announced their intention to sell their individual standalone tower businesses to strengthen the combined financial position of the merged entity. “The merger is expected to complete in the first half of the current calendar year,” Vodafone said.

 

The purchase of around 20,000 mobile towers are expected to generate approximately INR 21000.000 Million in property revenue and approximately INR 8000.000 Million in gross margin during their first full year in ATC’s portfolio. “The guidance was for full year. We will now focus on synergising operations of these towers and increasing their operational efficiency,” Sharma said.

 

 

VODAFONE-IDEA MERGER: CEO BALESH SHARMA TO LEAD INDIA'S LARGEST TELECOM CHAIRED BY KUMAR MANGALAM BIRLA

 

The existing leadership teams of Idea Cellular and Vodafone India will continue to manage their separate businesses until the merger becomes effective

 

Date: 23.03.2018

 

Vodafone Group Plc and Idea Cellular on Thursday announced the proposed leadership team of the combined business, which will come into effect after the Vodafone-Idea Cellular merger has been completed. This is in line with the original merger announcement of 20 March 2017, which said that the management team of the combined business would be confirmed prior to closing. The joint enterprise of Vodafone and Idea Cellular, currently country's number two and number three telecom companies, respectively, would unseat Bharti Airtel to grab the top slot. Once the deal goes through, Vodafone will own 45.1 per cent stake in the merged entity, while Idea Cellular will have a 26 per cent stake. However, this will happen after paying INR 38740.000 million cash for a 4.9 per cent stake. The remaining 28.9 per cent will be held by other shareholders.

 

Vodafone-Idea Merger Gets A Step Ahead; 10 Things To Know

 

Kumar Mangalam Birla will be the non-executive chairman of the merged company. A non-executive chairman is entrusted with no operational responsibilities but only enjoys the board responsibilities, said Vodafone.

 

Balesh Sharma, currently chief operating officer of Vodafone India, will be the CEO. Mr Sharma will be responsible for the combined business's strategy and its execution as well as driving integration, according to a statement from Vodafone.

 

CFO Akshaya Moondra, currently chief financial officer at Idea, will head the finance function of the merged entity. Ambrish Jain, currently deputy managing director at Idea, will be the chief operating officer (COO) of merged entity.

 

Nick Gliddon, currently director, Vodafone Business Services at Vodafone India, will be responsible for the Enterprise Business while Manish Dawar, currently CFO of Vodafone India, will have the overall responsibility for integration planning, governance and execution in the Kumar Mangalam Birla-led telecom company.

 

Sashi Shankar, currently chief marketing officer at Idea, will be responsible for marketing and brand strategy for the consumer business. Vishant Vora, currently chief technology officer of Vodafone India, will have responsibility for networks and overall technology strategy.

 

Prakash Paranjape, currently chief information officer at Idea, will be responsible for the IT operations of the Kumar Mangalam Birla-led merged company.

 

The existing leadership teams of Idea Cellular and Vodafone India will continue to manage their separate businesses and be accountable for each company's operational performance until the merger becomes effective.

 

It is only the upon completion of the merger which is expected to come into effect by the first half of the current calendar year - that the two businesses will cease to operate as distinct and competing entities.

 

For the merger, the companies first approached the approval of Competition Commission of India (CCI). On July 24, last year the CCI gave its approval to the merger of two telecom companies. On October 13 last year, shareholders of Idea Cellular gave their approval to the scheme relating to the merger of its mobile business with Vodafone India. Over 99 per cent of Idea shareholders voted in favour of the merger at the shareholders' meeting on October 12, 2017, stock exchange filing by Kumar Mangalam Birla-led Idea Cellular stated.

 

Following the shareholders' approval, the companies sought approval from the National Companies Law Tribunal (NCLT). As the NCLT approved the proposed merger, the companies are now free to approach the department of telecom for the final approval.

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No 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

INR

US Dollar

1

INR 66.78

UK Pound

1

INR 92.89

Euro

1

INR 80.74

 

 

INFORMATION DETAILS

 

Information Gathered by :

RUB

 

 

Analysis Done by :

PRY

 

 

Report Prepared by :

BHG

 

 

SCORE FACTORS

 

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

YES

--OTHER MERIT FACTORS

YES/NO

YES

 

RATING EXPLANATIONS

 

Credit Rating

Explanation

Rating Comments

A++

Minimum Risk

Business dealings permissible with minimum risk of default

A+

Low Risk

Business dealings permissible with low risk of default

A

Acceptable Risk

Business dealings permissible with moderate risk of default

B

Medium Risk

Business dealings permissible on a regular monitoring basis

C

Medium High Risk

Business dealings permissible preferably on secured basis

D

High Risk

Business dealing not recommended or on secured terms only

NB

New Business

No recommendation can be done due to business in infancy stage

NT

No Trace

No recommendation can be done as the business is not traceable

 

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

 

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 are as follows:

 

·         Financial condition covering various ratios

·         Company background and operations size

·         Promoters / Management background

·         Payment record

·         Litigation against the subject

·         Industry scenario / competitor analysis

·         Supplier / Customer / Banker review (wherever available)

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.