|
|
|
MIRA INFORM REPORT
|
Report No. : |
491866 |
|
Report Date : |
13.02.2018 |
IDENTIFICATION DETAILS
|
Name : |
VODAFONE INDIA LIMITED (w.e.f.11.10.2011) |
|
|
|
|
Formerly Known
As : |
VODAFONE ESSAR LIMITED (w.e.f.12.07.2007) HUTCHISON ESSAR LIMITED (w.e.f.26.08.2005) HUTCHISON MAX TELECOM LIMITED (w.e.f.01.12.2004) HUTCHISON MAX TELECOM PRIVATE LIMITED |
|
|
|
|
Registered
Office : |
Peninsula
Corporate Park, Ganpatrao Kadam Marg, Lower Parel, Mumbai – 400013,
Maharashtra |
|
Tel. No.: |
91-22-71715000 |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2016 |
|
|
|
|
Date of
Incorporation : |
21.02.1992 |
|
|
|
|
Com. Reg. No.: |
11-119108 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
INR 4534.311 Million |
|
|
|
|
CIN No.: [Company Identification
No.] |
U32200MH1992PLC119108 |
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|
|
|
IEC No.: |
Not Divulged |
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|
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GSTIN/UIN: |
Not Divulged |
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|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
Not Available |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACH5332B |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
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|
|
|
Line of Business
: |
Providing Mobile Telecommunication Services. (Registered Activity) |
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|
|
|
No. of Employees
: |
Information denied by the management |
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+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
Status : |
Excellent |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Exist |
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|
|
|
Comments : |
Subject is a subsidiary of “Vodafone Group PLC” U.K. It is the largest mobile network operator in India and operates in all 22 service areas in the country. It is well-established company having fine track record. Vodafone Group is a globally renowned international mobile communications conglomerate, with operations in 26 countries and over 50 partner networks. From a single operation base with 31 million customers, the company has expanded its operations across the country to cover all 22 telecom circles and service 210 million customers. As per the Registrar of Companies date of balance sheet (i.e. financial filed) is shown as 31.03.2017 but documents related to the financial for the year 31.03.2017 are not available from any sources. With respect to the operational performance during FY-16, the company has reported an average growth in its revenue but has incurred loss during the year under review. The rating takes into consideration the company’s healthy market position in the Indian wireless telecommunication industry and its adequate liquidity position and strong debt protection metrics. The ratings also factor into strong linkage with Vodafone group and need-based support receive from the Group. This rating strength is partially offset by the regulatory and technological changes and tough competition face from same peer group of company. Business is active. Payment seems to be slow but correct. In view of aforesaid, the company can be considered good for normal business dealings at usual trade terms and conditions. |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Long Term Loans=AA |
|
Rating Explanation |
High degree of safety and very low credit
risk. |
|
Date |
23.06.2017 |
|
|
|
|
Rating Agency Name |
CRISIL |
|
Rating |
Short Term Loans =A1+ |
|
Rating Explanation |
Very strong degree of safety and carry lowest
credit risk. |
|
Date |
23.06.2017 |
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
31-03-2016.
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 13.02.2018
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
MANAGEMENT NON-COOPERATIVE (91-22-71715000)
LOCATIONS
|
Registered Office : |
Peninsula
Corporate Park, Ganpatrao Kadam Marg, Lower Parel, Mumbai – 400013,
Maharashtra, India |
|
Tel. No.: |
91-22-71715000 |
|
Fax No.: |
91-22-24963645 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Head Office : |
2nd Floor, Skyline Icon, 86/92, Andheri Kurla Road, Marol
Naka, Near Mittal Industrial Estate, Andheri East, Mumbai-400059, Maharashtra, India |
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|
|
|
Branch Offices : |
Located at: · Delhi · Mumbai · Bangalore · Ahmedabad · Jaipur · Kolkata · Lucknow · Mohali · Hyderabad · Meerut ·
Chennai · Karnal · Kochi · Pune |
DIRECTORS
AS ON 31.03.2017
|
Name : |
Mr. Sunil Sood |
|
Designation : |
Managing director |
|
Address : |
Flat No. 2401/2402 Petit Towers, August Kranti Marg, Kemps Corner, Mumbai
- 400036, Maharashtra, India |
|
Date of Appointment : |
01.04.2015 |
|
DIN No.: |
03132202 |
|
Name : |
Mr. Balesh Sharma |
|
Designation : |
Wholetime Director |
|
Address : |
28, Asopalav Bunglows, Opposite Hotel Signor Thaltej, Ahmedabad -380059, Gujarat, India |
|
Date of Appointment : |
13.04.2017 |
|
DIN No.: |
07783637 |
|
Name : |
Mr. Chittranjan Dua |
|
Designation : |
Director |
|
Address : |
88, Sunder Nagar, New Delhi – 110003, India |
|
Date of Birth/Age : |
03.11.1951 |
|
Qualification : |
MA
(Eco), LLB (Delhi) |
|
Date of Appointment : |
27.09.2006 |
|
DIN No.: |
00036080 |
|
|
|
|
Name : |
Mr. Analjit Singh |
|
Designation : |
Director |
|
Address : |
15, Aurangzeb Road, New Delhi – 110011, India |
|
Date of Birth/Age : |
11.01.1954 |
|
Date of Appointment : |
23.03.2006 |
|
DIN No.: |
00029641 |
|
|
|
|
Name : |
Mrs. Ashwani Windlass |
|
Designation : |
Director |
|
Address : |
N-53, Panchshila Park, New Delhi - 110017, India |
|
Date of Birth/Age : |
02.07.1956 |
|
Qualification : |
B.Com, MBA |
|
Date of Appointment : |
26.05.2012 |
|
DIN No.: |
00042686 |
|
|
|
|
Name : |
Mr. John William Lorimer Otty |
|
Designation : |
Director |
|
Address : |
1, Harvest Place, Wargrave, Reading Berkshire U. K. RG10 8AQ |
|
Date of Birth/Age : |
13.01.1964 |
|
Date of Appointment : |
08.08.2013 |
|
DIN No.: |
02432741 |
|
|
|
|
Name : |
Mr. Vikram Singh Mehta |
|
Designation : |
Director |
|
Address : |
18, Friends' Colony West, New Delhi – 110065, India |
|
Date of Birth/Age : |
30.10.1952 |
|
Qualification : |
BA Maths (Hons),
MA Economics, MA (Energy Economics) |
|
Date of Appointment : |
21.01.2013 |
|
DIN No.: |
00041197 |
|
|
|
|
Name : |
Shyamala Gopinath |
|
Designation : |
Director |
|
Address : |
DG-4, Vasant Vihar, 85, Napean Sea Road, Mumbai – 400020, Maharashtra,
India |
|
Date of Birth/Age : |
20.06.1949 |
|
Qualification : |
M.
Com, CAIIB |
|
Date of Appointment : |
17.04.2014 |
|
DIN No.: |
02362921 |
|
|
|
|
Name : |
Ravinder Takkar |
|
Designation : |
Additional Director |
|
Address : |
Villa No. 111, Laburnum Condominium Complex Sushant Lok,
Gurugram- 122001, Haryana, India |
|
Date of Appointment : |
06.11.2017 |
|
DIN No.: |
01719511 |
KEY EXECUTIVES
|
Name : |
Manish Dawar |
|
Designation : |
Chief Finance Officer |
|
Address : |
D-502, Lagoon Apartments, Ambience Island, N.H. – 8,
Gurugram -122002, Haryana, India |
|
Date of Appointment : |
15.01.2018 |
|
PAN No.: |
AAGPD5691J |
|
|
|
|
Name : |
Sudhakar H Shetty |
|
Designation : |
Company Secretary |
|
Address : |
1203, Ozone Tower 1, Rustomjee Builders, Off. S. V. Road,
Goregaon West, Mumbai - 400062, Maharashtra, India |
|
Date of Birth/Age : |
03.06.1968 |
|
Date of Appointment : |
01.03.2014 |
|
PAN No.: |
AALPS9504Q |
MAJOR SHAREHOLDERS
AS ON 31.03.2017
|
Names of Shareholders |
No. of Shares |
% shareholding |
|
Al-Amin Investments Limited, Mauritius |
154582753 |
5.49 |
|
Asian Telecommunications Investments (Mauritius) Limited, Mauritius |
186562701 |
6.63 |
|
CCII (Mauritius) Inc, Mauritius |
84917370 |
3.02 |
|
Euro Pacific Securities Limited, Mauritius |
758986306 |
26.98 |
|
Vodafone Telecommunications (India) Limited, Mauritius |
309165696 |
10.99 |
|
Mobilvest, Mauritius |
318870690 |
11.33 |
|
Prime Metals Limited, Mauritius |
415986399 |
14.79 |
|
Trans Crystal Limited, Mauritius |
278020841 |
9.88 |
|
Total
Direct foreign Shareholding (A) |
2507092756 |
89.11 |
|
|
|
|
|
Omega Telecom Holdings Private Limited |
63489774 |
2.26 |
|
Telecom Investments India Private Limited, India |
160975557 |
5.72 |
|
Jaykay Finholding (India) Private Limited |
6367671 |
0.23 |
|
Usha Martin Telematics Limited |
75370065 |
2.68 |
|
Total
Indirect foreign Shareholding (B) |
306203067 |
10.89 |
|
|
|
|
|
Total (A+B) |
2813295823 |
100.00 |
Equity Share Break up (Percentage of Total Equity)
AS ON 27.09.2017
|
Category |
Percentage |
|
Promoters-Body corporate |
100.00 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Providing Mobile Telecommunication Services. (Registered Activity) |
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Products / Services
: |
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Brand Names : |
Not Available |
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Agencies Held : |
Not Available |
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Exports : |
Not Divulged |
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Imports : |
Not Divulged |
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Terms : |
Not Divulged |
PRODUCTION STATUS – (NOT AVAILABLE)
GENERAL INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees : |
Information denied by the management |
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Bankers : |
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Facilities : |
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Auditors : |
|
|
Name : |
Lovelock
and Lewes Chartered Accountants |
|
Address : |
252, Veer Savarkar Marg,
Shivaji Park, Dadar (west), Mumbai 400028, Maharashtra, India |
|
Income-tax
PAN of auditor or auditor's firm : |
AABFL5878L |
|
|
|
|
Secretarial
Auditors : |
|
|
Name : |
Sanjay Grover and Associates Chartered Accountants |
|
|
|
|
Memberships : |
Not Available |
|
|
|
|
Collaborators : |
Not Available |
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|
|
|
Ultimate Holding
Company (AS ON 31.03.2016): |
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|
Intermediate
Holding Company (AS ON 31.03.2016): |
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|
Immediate Holding
Company (AS ON 31.03.2016): |
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Significant
Shareholders (AS ON 31.03.2016): |
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|
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Subsidiaries (AS ON
31.03.2016): |
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|
Entity where Subsidiary
Company has significant influence (AS ON 31.03.2016): |
|
|
Note: * Purchase of Services includes Access Charges, Roaming Cost, IT and business process outsourcing cost, Transmission cost, Intercompany service charges, Rentals, Power and Fuel, Operation and maintenance. ** Sale of Services includes billing for Roaming charges and Access Charges. *** During the current year, on December 11, 2015 and February 11, 2016, pursuant to two court approved schemes, Vodafone South Limited (VSL), Vodafone Digilink Limited (VDL), Vodafone East Limited (VEL), Vodafone Cellular Limited (VCL) and Vodafone Spacetel Limited (VSpL), Vodafone West Limited (VWL), amalgamated into Vodafone Mobile Services Limited (VMSL) with an appointed date of April 1, 2011 and April 1, 2012 respectively. The disclosures in the related party note for the year ended March 31, 2015 continue in the name of the erstwhile legal entity. #Vodafone Group Plc. holds investments in Vodafone India Limited through a chain of intermediary holding companies. Entities other than disclosed above have not been disclosed as they do not exercise control although they hold more than 51% share capital (indirectly). |
|
CAPITAL STRUCTURE
AS ON 27.09.2017
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
5000000000 |
Equity Shares |
INR 10/- each |
INR 50000.000 Million |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
2813295823 |
Equity Shares |
INR 10/- each |
INR 28132.958 Million |
|
|
|
|
|
AS ON 31.03.2016
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1000000000 |
Equity Shares |
INR 10/- each |
INR 10000.000 Million |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
453431113 |
Equity Shares |
INR 10/- each |
INR 4534.311 Million |
|
|
|
|
|
FINANCIAL DATA
[all figures are
INR Million]
ABRIDGED
BALANCE SHEET (STANDALONE)
|
SOURCES OF FUNDS |
31.03.2016 |
31.03.2015 |
31.03.2014 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
4534.311 |
4534.311 |
4140.868 |
|
(b) Reserves and Surplus |
124020.000 |
137608.000 |
71721.000 |
|
(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) |
128554.311 |
142142.311 |
75861.868 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
97975.000 |
144037.000 |
136212.000 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long-term
liabilities |
2530.000 |
9504.000 |
2866.000 |
|
(d) long-term
provisions |
12804.000 |
10616.000 |
4675.000 |
|
Total Non-current
Liabilities (3) |
113309.000 |
164157.000 |
143753.000 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short-term
borrowings |
49102.000 |
45117.000 |
58120.000 |
|
(b) Trade
payables |
9602.000 |
7837.000 |
7938.132 |
|
(c) Other
current liabilities |
54173.689 |
30631.689 |
14107.000 |
|
(d) Short-term
provisions |
437.000 |
832.000 |
709.000 |
|
Total Current
Liabilities (4) |
113314.689 |
84417.689 |
80874.132 |
|
|
|
|
|
|
TOTAL |
355178.000 |
390717.000 |
300489.000 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
28464.000 |
25143.000 |
20019.000 |
|
(ii)
Intangible Assets |
110889.000 |
117066.000 |
30764.000 |
|
(iii) Tangible assets
capital work-in-progress |
2396.000 |
1865.000 |
3676.000 |
|
(iv)
Intangible assets under development |
8.000 |
134.000 |
84311.000 |
|
(b) Non-current Investments |
133724.000 |
133724.000 |
71224.000 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d)
Long-term loans and advances |
19761.000 |
17386.000 |
14780.000 |
|
(e) Other
Non-current assets |
1912.000 |
2261.000 |
0.000 |
|
Total Non-Current
Assets |
297154.000 |
297579.000 |
224774.000 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
0.000 |
0.000 |
0.000 |
|
(c) Trade
receivables |
2057.000 |
1628.000 |
1704.000 |
|
(d) Cash and
bank balances |
2164.000 |
1516.000 |
1854.000 |
|
(e)
Short-term loans and advances |
50238.000 |
85927.000 |
68476.000 |
|
(f) Other
current assets |
3565.000 |
4067.000 |
3681.000 |
|
Total
Current Assets |
58024.000 |
93138.000 |
75715.000 |
|
|
|
|
|
|
TOTAL |
355178.000 |
390717.000 |
300489.000 |
PROFIT
& LOSS ACCOUNT (STANDALONE)
|
|
PARTICULARS |
31.03.2016 |
31.03.2015 |
31.03.2014 |
|
|
SALES |
|
|
|
|
|
Income |
43929.000 |
42121.000 |
36840.000 |
|
|
Other Income |
6317.000 |
26355.000 |
15171.000 |
|
|
TOTAL |
50246.000 |
68476.000 |
52011.000 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials
Consumed |
21499.000 |
25528.000 |
24249.000 |
|
|
Employee benefit expense |
1529.000 |
1146.000 |
5649.000 |
|
|
Other expenses |
9703.000 |
8818.000 |
5587.000 |
|
|
Exceptional items before tax |
0.000 |
1965.000 |
0.000 |
|
|
TOTAL |
32731.000 |
37457.000 |
35485.000 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION |
17515.000 |
31019.000 |
16526.000 |
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
19085.000 |
16258.000 |
11936.000 |
|
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
(1570.000) |
14761.000 |
4590.000 |
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
12018.000 |
8481.000 |
5739.000 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX |
(13588.000) |
6280.000 |
(1149.000) |
|
|
|
|
|
|
|
Less |
TAX |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX |
(13588.000) |
6280.000 |
(1149.000) |
|
|
|
|
|
|
|
|
EARNINGS
IN FOREIGN CURRENCY |
|
|
|
|
|
F.O.B. Value of Exports |
1148.000 |
1363.000 |
1907.000 |
|
|
TOTAL
EARNINGS |
1148.000 |
1363.000 |
1907.000 |
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
Capital Goods |
1230.000 |
1272.000 |
2816.000 |
|
|
TOTAL
IMPORTS |
1230.000 |
1272.000 |
2816.000 |
|
|
|
|
|
|
|
|
Earnings / (Loss) Per Share (INR) |
(29.97) |
15.08 |
(2.77) |
CURRENT MATURITIES
OF LONG TERM DEBT DETAILS
|
Particulars |
31.03.2016 |
31.03.2015 |
31.03.2014 |
|
Current Maturities of Long term debt |
30416.000 |
23002.000 |
2973.000 |
|
|
|
|
|
|
Cash generated from operations |
NA |
NA |
NA |
|
|
|
|
|
|
Net cash flows from (used in) operations |
13756.000 |
6206.000 |
8339.000 |
|
|
|
|
|
|
Net cash flows from (used in) operating activities |
11904.000 |
7535.000 |
6228.000 |
KEY
RATIOS
EFFICIENCY RATIOS
|
PARTICULARS |
31.03.2016 |
31.03.2015 |
31.03.2014 |
|
Average Collection Days (Sundry
Debtors / Income * 365 Days) |
17.09 |
14.11 |
16.88 |
|
|
|
|
|
|
Account Receivables Turnover (Income / Sundry Debtors) |
21.36 |
25.87 |
21.62 |
|
|
|
|
|
|
Average Payment Days (Sundry Creditors / Purchases * 365 Days) |
163.02 |
112.05 |
119.49 |
|
|
|
|
|
|
Inventory Turnover (Operating Income / Inventories) |
0.00 |
0.00 |
0.00 |
|
|
|
|
|
|
Asset Turnover (Operating Income / Net Fixed Assets) |
0.12 |
0.22 |
0.12 |
LEVERAGE RATIOS
|
PARTICULARS |
31.03.2016 |
31.03.2015 |
31.03.2014 |
|
Debt Ratio ((Borrowing
+ Current Liabilities) / Total Assets) |
0.68 |
0.64 |
0.73 |
|
|
|
|
|
|
Debt Equity Ratio (Total Liability / Networth) |
1.38 |
1.49 |
2.60 |
|
|
|
|
|
|
Current Liabilities to Networth (Current Liabilities / Net Worth) |
0.88 |
0.59 |
1.07 |
|
|
|
|
|
|
Fixed Assets to Networth (Net Fixed Assets / Networth) |
1.10 |
1.01 |
1.83 |
|
|
|
|
|
|
Interest Coverage Ratio (PBIT / Financial Charges) |
0.92 |
1.91 |
1.38 |
PROFITABILITY RATIOS
|
PARTICULARS |
|
31.03.2016 |
31.03.2015 |
31.03.2014 |
|
Net Profit Margin ((PAT / Sales) * 100) |
% |
(30.93) |
14.91 |
-3.12 |
|
|
|
|
|
|
|
Return on Total Assets ((PAT / Total Assets) * 100) |
% |
(3.83) |
1.61 |
-0.38 |
|
|
|
|
|
|
|
Return on Investment (ROI) ((PAT / Networth) * 100) |
% |
(10.57) |
4.42 |
-1.51 |
SOLVENCY RATIOS
|
PARTICULARS |
31.03.2016 |
31.03.2015 |
31.03.2014 |
|
Current Ratio (Current
Assets / Current Liabilities) |
0.51 |
1.10 |
0.94 |
|
|
|
|
|
|
Quick Ratio ((Current Assets – Inventories) / Current
Liabilities) |
0.51 |
1.10 |
0.94 |
|
|
|
|
|
|
G-Score Ratio Financial (Networth / Total Assets) |
0.36 |
0.36 |
0.25 |
|
|
|
|
|
|
G-Score Ratio Debt (Debts / Equity Capital) |
39.14 |
46.79 |
47.65 |
|
|
|
|
|
|
G-Score Ratio Liquidity (Total Current Assets / Total Current Liabilities) |
0.51 |
1.10 |
0.94 |
Total
Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term
debts
FINANCIAL ANALYSIS
[all figures are
INR Million]
DEBT EQUITY RATIO
|
Particular |
31.03.2014 |
31.03.2015 |
31.03.2016 |
|
|
(INR
In Million) |
(INR
In Million) |
(INR
In Million) |
|
Share Capital |
4140.868 |
4534.311 |
4534.311 |
|
Reserves & Surplus |
71721.000 |
137608.000 |
124020.000 |
|
Money received against share
warrants |
0.000 |
0.000 |
0.000 |
|
Share Application money
pending allotment |
0.000 |
0.000 |
0.000 |
|
Net
worth |
75861.868 |
142142.311 |
128554.311 |
|
|
|
|
|
|
Long-term borrowings |
136212.000 |
144037.000 |
97975.000 |
|
Short term borrowings |
58120.000 |
45117.000 |
49102.000 |
|
Current maturities of
long-term debts |
2973.000 |
23002.000 |
30416.000 |
|
Total
borrowings |
197305.000 |
212156.000 |
177493.000 |
|
Debt/Equity
ratio |
2.601 |
1.493 |
1.381 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2014 |
31.03.2015 |
31.03.2016 |
|
|
(INR
In Million) |
(INR
In Million) |
(INR
In Million) |
|
Sales |
36840.000 |
42121.000 |
43929.000 |
|
|
0.000 |
14.335 |
4.292 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2014 |
31.03.2015 |
31.03.2016 |
|
|
(INR
In Million) |
(INR
In Million) |
(INR
In Million) |
|
Sales |
36840.000 |
42121.000 |
43929.000 |
|
Profit/ (Loss) |
(1149.000) |
6280.000 |
(13588.000) |
|
|
(3.12
%) |
14.91
% |
(30.93
%) |
ABRIDGED
BALANCE SHEET (CONSOLIDATED)
|
SOURCES OF FUNDS |
|
31.03.2016 |
31.03.2015 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
4534.311 |
4534.311 |
|
(b) Reserves and Surplus |
|
147051.000 |
136635.000 |
|
(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) |
|
151585.311 |
141169.311 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
|
556077.000 |
419415.000 |
|
(b) Deferred tax liabilities (Net) |
|
7020.000 |
7276.000 |
|
(c) Other long-term
liabilities |
|
51085.000 |
45997.000 |
|
(d) long-term
provisions |
|
56328.000 |
39294.000 |
|
Total Non-current
Liabilities (3) |
|
670510.000 |
511982.000 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short-term
borrowings |
|
125089.000 |
93867.000 |
|
(b) Trade
payables |
|
58045.000 |
54914.000 |
|
(c) Other
current liabilities |
|
212552.689 |
123166.689 |
|
(d) Short-term
provisions |
|
5336.000 |
16396.000 |
|
Total Current
Liabilities (4) |
|
401022.689 |
288343.689 |
|
|
|
|
|
|
TOTAL |
|
1223118.000 |
941495.000 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
|
327948.000 |
298155.000 |
|
(ii)
Intangible Assets |
|
643775.000 |
401848.000 |
|
(iii) Tangible assets
capital work-in-progress |
|
17846.000 |
24292.000 |
|
(iv)
Intangible assets under development |
|
9321.000 |
710.000 |
|
(b) Non-current Investments |
|
708.000 |
720.000 |
|
(c) Deferred tax assets (net) |
|
0.000 |
7466.000 |
|
(d)
Long-term loans and advances |
|
135522.000 |
72294.000 |
|
(e) Other
Non-current assets |
|
15159.000 |
16998.000 |
|
Total Non-Current
Assets |
|
1150279.000 |
822483.000 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
|
1134.000 |
0.000 |
|
(b)
Inventories |
|
54.000 |
65.000 |
|
(c) Trade
receivables |
|
19171.000 |
15561.000 |
|
(d) Cash and
bank balances |
|
15812.000 |
66916.000 |
|
(e)
Short-term loans and advances |
|
16533.000 |
13738.000 |
|
(f) Other
current assets |
|
20135.000 |
22732.000 |
|
Total Current
Assets |
|
72839.000 |
119012.000 |
|
|
|
|
|
|
TOTAL |
|
1223118.000 |
941495.000 |
PROFIT
& LOSS ACCOUNT (CONSOLIDATED)
|
|
PARTICULARS |
|
31.03.2016 |
31.03.2015 |
|
|
SALES |
|
|
|
|
|
Income |
|
478486.000 |
455501.000 |
|
|
Other Income |
|
4871.000 |
7910.000 |
|
|
TOTAL |
|
483357.000 |
463411.000 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials
Consumed |
|
1474.000 |
1283.000 |
|
|
Purchases of
Stock-in-Trade |
|
576.000 |
755.000 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
|
0.000 |
0.000 |
|
|
Employee benefit expense |
|
17949.000 |
17245.000 |
|
|
CSR expenditure |
|
251.000 |
242.000 |
|
|
Other expenses |
|
319973.000 |
302212.000 |
|
|
Exceptional items before tax |
|
0.000 |
6703.000 |
|
|
TOTAL |
|
340223.000 |
328440.000 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION |
|
143134.000 |
134971.000 |
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
|
64650.000 |
44985.000 |
|
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND
AMORTISATION |
|
78484.000 |
89986.000 |
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
|
89010.000 |
72315.000 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX |
|
(10526.000) |
17671.000 |
|
|
|
|
|
|
|
Less |
TAX |
|
(23747.000) |
17842.000 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX |
|
13221.000 |
(171.000) |
|
|
|
|
|
|
|
|
Earnings / (Loss) Per
Share (INR) |
|
29.16 |
(0.41) |
LEGAL
CASES
CASE DETAILS
BENCH:-BOMBAY
|
Presentation
Date:- |
31/10/2017 |
|
|||||||
|
Lodging No.:- |
WPL/2983/2017 |
Filing Date:- |
31/10/2017 |
Reg. No.:- |
WP/92/2018 |
Reg. Date:- |
12/01/2018 |
||
|
Petitioner:- |
VINAYAK HEIGHTS CHSL. |
|
Respondent:- |
VODAFONE INDIA LIMITED |
|
Petn.Adv.:- |
VIJAY B DHINGREJA (764) |
|
District:- |
MUMBAI |
|
Bench:- |
DIVISION |
||||
|
Status:- |
Pre-Admission |
Category:- |
WRIT PETITIONS (DIVISION BENCH) |
|
Next Date:- |
26/04/2018 |
Stage:- |
FOR ADMISSION - FRESH |
|
Coram:- |
HON'BLE SHRI JUSTICE A.S. OKA |
|
HON'BLE SHRI JUSTICE P.N. DESHMUKH |
|
Last Date:- |
12/02/2018 |
Stage:- |
FOR ADMISSION - FRESH |
|
Last Coram:- |
HON'BLE SHRI JUSTICE A.S. OKA |
|
HON'BLE SHRI JUSTICE P.N. DESHMUKH |
|
Act :- |
Mah. Regional Town Planning Act |
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 |
No |
|
8 |
Designation of contact person |
No |
|
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 |
No |
|
17 |
Details of sister concerns |
Yes |
|
18 |
Major suppliers |
No |
|
19 |
Major customers |
No |
|
20 |
Banking Details |
No |
|
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 |
No |
|
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 |
PERFORMANCE IN BRIEF (AS ON 31.03.2016):
Subject and its
wholly owned subsidiary Vodafone Mobile Services Limited (VMSL) [hereinafter
together referred as "the Group" or "Vodafone India Group"]
offers mobility services for consumers and total communication (telecom)
services to enterprise customers. While the Company is a telecom operator for
Mumbai circle, Vodafone Mobile Service Limited operates other telecom circles
in India. The Vodafone India Group continued its consistent growth during the
financial year in spite of challenges due to regulatory changes in mobile
termination charges, national roaming tariffs and service tax rates as well as
competitive pressures.
Vodafone India
Group is the second largest mobile operator in India with a total subscriber
base of 197.9 million, having added about 14.1 million customers during the
financial year. The customer base of the Company increased from 8.4 million to
8.6 million, witnessing a growth of 3.% in Mumbai circle where it operates.
Data growth of the
Group continues to witness a healthy boost, with data usage over the network
recording a growth of about 63.4% year-on-year, and the active data customer
base increasing by 3.8 million to 67.5 million users.
The 3G customer
base of the Company grew to 3 million, up 11%, and that of the Vodafone India
Group grew to 27.4 million, up 41.4%, year-on-year. Smartphone penetration in
Vodafone India Group's four biggest urban areas is now 52.8%.
During the
financial year, the Group has expanded its network to increase its coverage
area. The Vodafone India Group has added 7,201 2G cell sites, 20,454 3G cell
sites and 7,207 4G cell sites to enhance its network coverage. As at 31 March
2016, the Company has total of 137,332 2G cell sites, 55,466 3G cell sites and
7,207 4G cell sites.
During the
financial year, the Vodafone India Group has launched 4G in five circles i.e,
Mumbai, Delhi and NCR, Kolkata, Karnataka and Kerala which is expected to cover
almost 70% of data revenues of the Vodafone India Group. Vodafone India Group
is also planning to launch 4G services in telecom circles of Rest of Bengal,
Harayana, Gujarat and UP East.
M-Pesa business of
Vodafone m-pesa Limited, a wholly owned subsidiary of the Company, continues to
expand, with 1.3 million active customers as on 31 March 2016, and having
approximately 120,000 agents. During the financial year, M-Pesa has surged from
rank 8 to rank 2 as the fastest growing prepaid instrument (PPI) brand in India
as per National Payments Corporation of India report on transfers to Bank
through IMPS i.e. immediate payment service. In August, 2015, the Reserve Bank
of India granted Vodafone m-pesa limited an in-principle approval to set up a
payments bank.
During the year,
financial performance of Vodafone India Group on a consolidated basis is as
below: The Vodafone India Group's customer base grew to 197.9 million
subscribers with a growth rate of 7.7% on a year on year (YoY) basis.
Vodafone India
Group continued its consistent growth during the financial year, in spite of
changes in regulations in mobile termination charges, national roaming tariffs
and service tax rates as well as competitive pressures. Vodafone India Group is
the second largest leading telecom operator in India, having a revenue market
share of 22.2% (Includes fixed line revenue of all operators) in financial year
in a highly competitive multi-player telecom market.
Revenue from
operations of Vodafone India Group stood at INR 478,486.000 million,
representing a growth of about 5.04% as compared to the previous financial
year. The increase is primarily driven by expansion of subscriber base and
higher data usage, Intra-Circle Roaming (ICR) revenue, Fixed line revenue and
revenue from Indus Towers Limited (a Joint Venture Company) which has been
offset by lower voice revenue mainly due to regulatory changes.
The consolidated
performance for the financial year ended 31 March 2016 has been consistent
despite challenging circumstances largely due to strong growth in data revenue.
Data revenue was 45.2% higher due to higher usage. Voice revenue was 4.7% lower
due to impact of increase in Service tax rates, Swach Bharat tax, Mobile
Termination rate and Roaming rate regulation. During the financial year, the
subscriber growth rate was 7.7% on a year on year basis which has been offset
by 7% lower Rate Per Minutes (RPM) and 1.9% lower Minutes of Usage (MoU)/ per
subscriber (sub).
The PBIDTA
increased to INR 143,135.000 million, a growth of 1% as compared to previous
year. The marginal increase in PBIDTA is due to increase in total cost by 5.7%,
attributable to increase in rental, power and fuel in the year due to the
increase in cell sites roll out of 34,862 sites and other expenses increase due
to capital expenditures, increase in customer base by 9% and increase in
marketing spends.
The consolidated
net profit after tax stood at INR 13,221.000 million for the financial year as
compared to loss of INR 171.000 million recorded during the previous financial
year. The better performance is primarily on account of savings in tax expenses
on account of set-off of tax losses versus tax profits amongst merging
entities, details of the merger (amalgamation) is given elsewhere in this
report.
OUTLOOK FOR FINANCIAL YEAR 2016-17 (FY17) (AS
ON 31.03.2016):
Industry growth is
expected to be driven by data usage and traffic growth through customer
addition. With respect to smart phone penetration, it is expected that the
industry will continue to witness surge in smartphones leading to increase in
data usage however with yield erosion. The revenue is challenged by changes in
regulations like additional 0.5% Krishi Kalyan cess thereby increasing the
overall Service tax increase from 14.5% to 15.0% and competitive pressures.
Revenue growth for
the Company in FY17 is expected to be through driving customer value
management, strengthening network and providing superior customer experience.
Data uptake is expected to increase on account of evolving 4G ecosystem and
increase in coverage, growth in smartphone penetration and high bandwidth
consuming applications, video streaming and downloads. However the pressure on
data realization is expected to continue.
There would also
be focus to accelerate mobile internet by prioritizing coverage to counter the
competition. Competitive Long-Term Evolution (LTE) technology coverage in 9
circles and strong 3G coverage in 16 markets will account for 91% of total
revenue. Emphasis would be given on making Customer Experience simple and
effortless and drive the "My Vodafone" app as the primary interface
for customers. Drive brand affinity through insightful network and product
propositions.
UNSECURED LOANS:
|
Particulars |
31.03.2016 INR In Million |
31.03.2015 INR In Million |
|
LONG TERM BORROWINGS |
|
|
|
Term loans from banks |
12000.000 |
10000.000 |
|
Rupee term loans from others |
1231.000 |
2596.000 |
|
Deferred payment for acquisition of fixed assets |
61399.000 |
61399.000 |
|
Loans and advances from others |
3307.000 |
11971.000 |
|
SHORT TERM BORROWINGS |
|
|
|
Rupee term loans from banks |
9102.000 |
6617.000 |
|
Commercial paper |
40000.000 |
38500.000 |
|
Total |
127039.000 |
131083.000 |
INDEX OF CHARGE:
|
SNO |
SRN |
CHARGE ID |
CHARGE HOLDER NAME |
DATE OF CREATION |
DATE OF MODIFICATION |
AMOUNT |
ADDRESS |
|
1 |
A65857302 |
80039461 |
IL & FS TRUST
COMPANY LIMITED |
16/02/2006 |
25/05/2009 |
280000000000.0 |
IL & FS FINANCIAL
CENTREPLOT NO C22 G BLOCK BANDRAKURLA COMPLEX BANDRA EASTMUMBAIMH400051IN |
FIXED ASSETS:
Tangible assets
- Plant and equipment
- Furniture and fixtures
- Vehicles
- Office equipment
- Computer equipments
- Leasehold improvements
Intangible assets
- Computer software
- Licenses and franchise
- Licenses
WEBSITE DETAILS
PRESS RELEASES
VODAFONE, IDEA MAY
HAVE A NEW BRAND NAME AFTER MERGER
FEBRUARY 12, 2018
MUMBAI: Vodafone India and Idea BSE 1.01 % Cellular, India's second-and thirdranked telcos that are merging, are working on a new name and brand identity for the combined entity, which may come into effect a year after the transaction closes, people familiar with the matter said.
"There
will be a new brand identity — work has started on it," a senior
consultant working on the merged company's new identity said, speaking on the
condition of anonymity due to non-disclosure agreements. The UK-based Vodafone
and the Kumar Mangalam Birla-owned Idea are chalking out a new positioning that
will attract customers and retain the recall value associated with both the
parent companies, according to the people.
The two
companies didn't respond to ET's emailed queries. The merger will create
India's largest mobile phone operator by subscribers and revenue market share.
The companies expect the deal to close in the first half of 2018, though
experts said it may come through by March-April. The companies are in the final
leg of getting regulatory approvals for the merger, which will allow them to
better take on Reliance Jio Infocomm and current No. 1 telco Bharti Airtel in
an intensely competitive market that has eroded revenue, profit and cash flows.
"A new brand will help them start afresh without any baggage," said Jessie Paul, chief executive officer of marketing advisory firm Paul Writer in Bengaluru. "With Vodafone's strength in its urban circles and Idea Cellular's in rural areas, a new brand from scratch makes more sense." In March 2017, both the companies said that the brand strategy of the combined company will be developed in due course and will leverage customers' affinity for the existing brands, built up over the past decade.
Senior
executives in the telcos aware of the developments said it will be a while
before any new brand is rolled out. "Nothing is locked as of now and all
options are open. We are veering towards maintaining status quo for at least
one year," said a senior executive aware of the developments at one of the
telcos. "It's very likely that one unified brand will emerge," said a
senior executive at an advertising firm that has worked with one of the telcos.
"The operational chaos that would ensue as a result of a new brand,
however, would be a major issue, naturally."
Idea and
Vodafone India have hired Aon to chalk out salary structures, pulled in Bain
Consultants to advise on overall strategies and have roped in leadership
management company Spencer Stuart to shortlist candidates for major roles in
the combined entity.
SC ISSUES NOTICE TO
BHARTI AIRTEL, VODAFONE, IDEA ON CCI’S CHALLENGE
FEBRUARY 05 2018.
Supreme Court issues notices to Bharti Airtel, Vodafone India and Idea
Cellular on a challenge by Competition Commission of India (CCI) to setting
aside a probe against them on allegations of cartelisation
New Delhi: The Supreme Court on Monday issued notices to telcos Bharti Airtel Limited, Vodafone India Limited and Idea Cellular Limited on a challenge by Competition Commission of India (CCI) to setting aside a probe against them on allegations of cartelisation.
A bench headed by justice A.K. Sikri refused to grant an interim stay on the probe order and said that the matter would be heard on merits.
CCI opposed setting aside of the probe by the Bombay high court through counsel P.S. Narasimha, who told the court, “A high court cannot injunction investigation. Once its complete, then such a right may arise.”
CCI had moved the apex court on 24 January in appeal against an order of the Bombay HC setting aside a probe against the three telecom companies on complaints of cartelisation by Reliance Jio Infocomm Limited.
Abhishek Manu Singhvi, appearing on behalf of the complainant, said that the investigation procedure was non-evasive and paper-based where telcos would be required to submit documents sought by them for the purpose.
On 21 September, the Bombay HC had ruled that the CCI had no jurisdiction to interpret contract conditions or policies of the telecom sector, which was governed by the Telecom Regulatory Authority of India (Trai) Act, 1997.
The order was passed on a plea by Idea, Bharti Airtel, Vodafone India and the Cellular Operators Association of India (COAI) seeking quashing of the CCI order directing an investigation into allegations of cartelisation made by Reliance Jio.
Reliance Jio had questioned the jurisdiction of the Bombay HC and said the case must be heard by the Delhi HC since the CCI order was passed in Delhi. This was rejected by the court.
The matter will be heard next on 19 February.
IDEA CELLULAR,
VODAFONE MAY START OPERATING AS ONE ENTITY FROM APRIL
JANUARY 15 2018.
Mumbai: Idea Cellular Limited and Vodafone Group Plc’s Indian unit are likely to start operating as a single unit from April, two people aware of the matter said.
The two companies, which are currently negotiating one of the most complex mergers in India, will create the world’s second largest and India’s largest telecom operator, surpassing Bharti Airtel Limited, post completion of the merger process. It will have almost 400 million customers with 35% customer share and 41% revenue market share. It will have a revenue of INR 816000.000 Million and an operating profit of INR 244000.000 Million.
“If everything goes as per plan, we are looking at the first week of April to start operations as one entity,” said one of the two people cited above on condition of anonymity.
This would also mean that the merger will complete at least three months before the earlier deadline of first half of calendar year 2018.
On Friday, the National Company Law Tribunal (NCLT) approved the proposed merger between Vodafone India Limited and Idea Cellular.
The two companies now require only the Department of Telecommunications’s (DoT) approval to proceed with the merger, having already received clearance from both the antitrust watchdog Competition Commission of India (CCI) and the Securities and Exchange Board of India (Sebi), in July.
“We expect DoT approval to come in the next 45-60 days,” said the second person aware of the matter.
This person added that once these companies receive DoT nod, they will have to get the new entity registered with the Registrar of Companies.
“Following which, there would be a board meeting that will announce the names of board members,” this person said. Announcement related to the executive management team will also be made in the meantime.
An Idea spokesperson did not respond to an email questionnaire sent on Wednesday.
A Vodafone India spokesperson said that his company has nothing more to add than what it said in November when the company stated it expects to complete the merger in the first half of calendar year 2018.
Vodafone Group and Idea Cellular’s parent Aditya Birla Group in March 2017 announced the merger, aimed at dominating a market that Mukesh Ambani’s Reliance Jio Infocomm Limited had disrupted with free voice calls and low data prices following its commercial launch in September 2016.
The merger agreement is based on equal rights and equal shareholding between Idea Cellular’s promoters and Vodafone Group.
To achieve this, Vodafone has kept its 42% stake in Indus Towers Limited, valued at around $5 billion, out of the deal’s purview. It can also contribute INR 25000.000 Million more as debt into the merged entity.
Promoters of Idea Cellular Limited on 4 January said they will invest INR 32500.000 Million and the company plans to raise a similar amount to strengthen its balance sheet.
As a result of a change in Idea’s shareholding following the proposed capital raising, Aditya Birla Group and Vodafone agreed that the former will buy a minimum of 2.5% of the merged entity from Vodafone, or such stake as is required in order for it to ultimately own at least 26% of the merged entity, Vodafone said in a statement 4 January.
Since the Idea-Vodafone merger itself is the result of consolidation triggered by a price war started by Jio, it is unlikely that the merged entity will be a price warrior itself.
It will focus on profitability and revenue.
AIRTEL, IDEA, VODAFONE
TO BEAR BRUNT OF CUT IN INTERNATIONAL CALL TERMINATION CHARGES
JANUARY 16 2018.
Annual operating profit of Airtel and the Vodafone-Idea combine will take a hit of INR 5000.000 Million and INR 6200.000 Million, respectively, due to the cut in international call termination charges
New Delhi: The Telecom Regulatory Authority of India’s (Trai) decision to reduce the international call termination charge from 53 paise a minute to 30 paise a minute will crimp the earnings of Bharti Airtel Limited, Idea Cellular Limited and Vodafone India Limited, analysts said.
The move will also impact newcomer Reliance Jio Infocomm Limited, which was advocating a cut.
The latest move by the telecom regulator is expected to result in an annualized Ebitda hit of INR 5000.000 Million to Bharti Airtel and INR 6200.000 Million to the proposed combined entity of Idea Cellular and Vodafone India, a report by Kotak Institutional Equities dated 15 January said.
Ebitda—or earnings before interest, tax, depreciation and amortization—is a measure of operating profitability.
Idea Cellular and Vodafone India, which are currently negotiating a merger to create India’s largest telecom operator, are likely to start operating as a single unit from April, Mint reported on 15 January.
The new international call termination rate will be effective starting 1 February.
The cut in international call termination charge could result in Bharti Airtel’s Ebitda for the January-March quarter falling by INR 840.000 Million, according to Mint calculations, based on estimates by Kotak Institutional Equities.
The termination charge is payable by an international long-distance operator to the Indian telecom operator on whose network an overseas call terminates.
Kotak has derived the impact on telcos by pegging the annual international incoming traffic into India at around 75 billion minutes, which implies annualized revenue of roughly INR 40000.000 Million for the access providers and a 43% cut in international call termination charge would result in an impact of roughly INR 17000.000 Million on industry revenue, of which Bharti Airtel has a 33% share, Vodafone India 23% and Idea Cellular 18%.
“The cut is negative, but will not have a huge impact on the sector as such because the volume of incoming voice traffic is not that much,” an analyst said, requesting anonymity.
“The hit to operators could be even lower than this if you take into account the demand elasticity benefits arising due to the cut,” another analyst said, also on condition of anonymity.
The cut follows a steep reduction in the domestic interconnection usage charge—paid by one operator to another for calls made to the latter’s network—to 6 paise a minute from 14 paise, effective 1 October.
The Cellular Operators’ Association of India (COAI), a lobby group, had sought a hike in the international call termination charge from 53 paise a minute to INR 3.5 a minute. Reliance Jio had pushed for a cut to 6 paise.
“COAI is of the view that the reduction in international termination charge is against national interest, as the country will lose precious foreign exchange,” Rajan S. Mathews, director general of the lobby group, said in a statement on Friday.
The resulting loss to telecom service providers is expected to be approximately INR 20000.000 Million annually, and this will also lead to a loss in revenue to the exchequer, from both licence fees and goods and services tax, Mathews said.
COAI also conceded that its member Jio has a divergent view on this issue.
“That Jio was the only major access provider in India to support a cut in international termination charge is interesting to note. We understand that Jio has a minuscule market share of the current international termination market in India; however, this would have changed over time as Jio gained share, we believe,” said the report by Kotak Institutional Equities.
“While this cut makes incumbents weaker and caps their cash flows, it is also negative for Jio. When Jio attains some more market share, this will come haunting them. But it has to get to that market share level so this is the strategy (to weaken incumbents),” said the second analyst cited earlier.
Supporting the cut does not have any direct cost reduction benefit for Jio unlike the domestic interconnect usage charge cut, nor does it gain Jio any customer goodwill, the report by Kotak Institutional Equities said, adding that the cost-benefit equation in front of Jio was causing incumbents immediate hurt at the cost of shrinking a high-profitability source of industry revenue in which Jio would have participated at some point.
4G SMARTPHONES MAY
COST JUST INR 500 VERY SOON
FEBRUARY 08, 2018
Bharti Airtel, Vodafone India and Idea Cellular are working with handset companies to make cheaper 4G smartphones costing as low as INR 500 effectively.
If you have been looking to buy a smartphone to be part of the digital revolution but can't afford one, there's some positive news for you.
Bharti Airtel, Vodafone India and Idea Cellular are working with handset companies to make cheaper 4G smartphones, costing as low as INR 500 effectively, reported Economic Times.
The telcos are planning to offer users bundled voice and data plans for INR 60-70 a month.
"We will gear towards low-cost smartphones via alliances. Smartphones are expected to become cheaper, so for an offering with them, it makes more sense than setting up our own phones," an executive at one of the telcos told the paper.
The move is likely to counter Reliance Jio's latest INR 49 a month plan for JioPhone users, whose effective cost is INR 0.
ET quoted an executive at another operator saying that their aim is to lower the effective prices of smartphones to the level of feature phones. If possible, bring it down further with bundled data and voice packages and cashback offers.
An executive at a smartphone maker told the paper cost of making an affordable VoLTE feature phone is around INR 800, which is more than a JioPhone. Therefore, it would be challenging for telcos to bridge that gap with offers alone.
"There will have to be a subsidy involved on feature phones, which they won't be able to give, so the better option is to go for low-cost smartphones," the executive told the paper on condition of anonymity.
Bharti Airtel, Vodafone India and Idea Cellular declined comment.
India has billion-plus mobile subscribers, of which, about 65-70 percent are feature or basic phone subscribers typically use 2G voice services. The telcos' target subscribers account for nearly 50 percent of the telecom sector's revenue.
Analysts believe that the telcos are hoping to retain their users and upgrade them to smartphones to increase data consumption in the medium to long term, however, low-cost smartphones bundled with voice and data plans will hurt average revenue per user (APRU) in the near term.
Rajan Mathews, Director General of the Cellular Operators Association of India, told the paper that bundling smartphones with data and voice plans is a better option considering the revenue pressures for bringing a new feature phone and subsidising it.
"They will have to revise pricing, may not go head to head, but could bring in plans for phones starting from INR 60-70 range," Mathews told the paper.
Disclosure: Reliance Industries Limited is the sole beneficiary of Independent Media Trust which controls Network18 Media and Investments Limited.
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 records 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 64.28 |
|
|
1 |
INR 89.02 |
|
Euro |
1 |
INR 78.93 |
INFORMATION DETAILS
|
Information
Gathered by : |
PUJ |
|
|
|
|
Analysis Done by
: |
NYT |
|
|
|
|
Report Prepared
by : |
KVT |
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 |
NO |
|
--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)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.