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3decades

 

MIRA INFORM REPORT

 

 

Report No. :

494434

Report Date :

27.02.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

BHARTI AIRTEL LIMITED (w.e.f. 24.04.2006)

 

 

Formerly Known As :

BHARTI TELE-VENTURES LIMITED

 

 

Registered Office :

Bharti Crescent, 1, Nelson Mandela Road, Vasant Kunj, Phase II, New Delhi – 110070

Tel. No.:

91-11-46666100 / 42666500

 

 

Country :

India

 

 

Financials (as on) :

31.03.2017

 

 

Date of Incorporation :

07.07.1995

 

 

Com. Reg. No.:

55-070609

 

 

Capital Investment / Paid-up Capital :

INR 19987.000 Million

 

 

CIN No.:

[Company Identification No.]

L74899DL1995PLC070609

 

 

IEC No.:

[Import-Export Code No.]

Not Divulged

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

DELB04730F

 

 

GSTN :

[Goods & Service Tax Registration No.]

Not Divulged

 

 

PAN No.:

[Permanent Account No.]

Not Available

 

 

Legal Form :

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

 

 

Line of Business :

The Subject is principally engaged in provision of telecommunication services in India. (Registered activity)

 

 

No. of Employees :

9279 (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++

Minimum Risk

Business dealings permissible with minimum risk of default

 

Maximum Credit Limit :

USD 2900000000

 

 

Status :

Excellent

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Bharti Airtel Limited is one of India’s leading integrated telecommunication service providers and it was incorporated in the year 1995. It is old and established company having excellent track record.

 

For the financial year 2017, the company has achieved marginal growth in its revenue as compared to its previous year but has incurred heavy losses during the year.

 

Rating takes into consideration, the robust financial risk profile marked by adequate net worth base and strong debt protection metrics.

 

Rating continue to derive strength by Bharti’s established market position in the telecom industry in India, its integrated telecommunications operations, its diversified presence across geographies and business verticals, economies of scale with presence in large telecom market.

 

Further the company is listed on BSE and NSE and the price quoted at BSE is held at INR 423.30 against its face value of INR 5.

 

As per quarterly results of December 2017, the company has achieved decent revenue of 1, 26,876 million and has clocked profit margin of 0.54%.

 

However, these rating strengths are partially offset by exposure to regulatory changes and technological risks, and the changing competitive landscape.

Payments seems to be regular and as per commitment.

 

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

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List

 

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

ICRA

Rating

Term Loans = AA+

Rating Explanation

High degree of safety and very low credit risk.

Date

13.02.2018

 

Rating Agency Name

ICRA

Rating

Working Capital Limits = A1+

Rating Explanation

Very strong degree of safety and carry lowest credit risk.

Date

13.02.2018

 

 

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 27.02.2018

 

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: Tel. No.:91-11-46666100

 

Tel. No.: 91-33-40371038-Number is continuously ringing

 

LOCATIONS

 

Registered Office / Corporate Office :

Bharti Crescent, 1, Nelson Mandela Road, Vasant Kunj, Phase II, New Delhi-110 070, India

Tel. No.:

91-11-46666100 / 42666500

Fax No.:

91-11-41666137

E-Mail :

bhartiipo@bhartient.com

corpcomm@bharti.com

compliance.officer@bharti.in

ir@bharti.com

compliance.officer@bharti.in

Website :

http://www.bhartiteleventures.com

http://www.bhartiairtel.in

http://www.bharti.com

http://www.airtel.in

http://www.airtel.com 

 

 

Head Office:

6th floor, Tower A, Plot No. 16, Udyog Vihar Industrial Area Phase 4, Gurugram 122001 – Haryana, India

 

 

Branch Office :

Located At:

 

  • Andhra Pradesh
  • Bihar
  • Delhi
  • Gujarat
  • Haryana, Punjab and Himachal Pradesh
  • Jammu and Kashmir
  • Karnataka
  • Kerala
  • Madhya Pradesh
  • Mumbai, Maharashtra and Gujarat
  • North East States and Assam
  • Orissa
  • Tamilnadu and Chennai
  • Uttar Pradesh
  • West Bengal
  • Uttaranchal

 

 

Circle Offices :

Located at

 

  • Assam
  • Andhra Pradesh
  • Bihar
  • Delhi
  • Gujarat
  • Haryana
  • Punjab
  • Himachal Pradesh
  • Jammu and Kashmir
  • Karnataka
  • Madhya Pradesh
  • Chattisgarh
  • Maharashtra
  • Rajasthan
  • Tamil Nadu and Kerala
  • Uttar Pradesh and Uttaranchal
  • West Bengal and Orissa

 

 

 

 

DIRECTORS

 

As on 31.03.2017

 

Name :

Mr. Dinesh Kumar Mittal

Designation :

Director

Address :

B-71, Sector 44, Noida- 201301, Utter Pradesh, India

Date of Appointment :

13.03.2014

DIN No.:

00040000

 

 

Name :

Mr. Manish Santoshkumar Kejriwal

Designation :

Director

Address :

Flat No 3703, 37th and 38th Floor, Vivarea Building B Wing, Sane Guruji Marg, Jacob Circle, Mumbai – 400011, Maharashtra, India

Date of Appointment :

26.09.2012

DIN No.:

00040055

 

 

Name :

Mr. Sunil Bharti Mittal

Designation :

Wholetime Director

Address :

19 Amrita Shergil Marg New Delhi- 110003, Delhi, India

Date of Appointment :

07.07.1995

DIN No.:

00042491

 

 

Name :

Mr. Rakesh Bharti Mittal

Designation :

Director

Address :

4 Pearl Lane DLF Chattarpur Farms New Delhi- 110074, Delhi, India

Date of Appointment :

07.01.2016

DIN No.:

00042494

 

 

Name :

Ms. Chua Sock Koong

Designation :

Director

Address :

15A OEI Tiong Ham Park Singapore- 268302, India

Date of Appointment :

07.05.2001

DIN No.:

00047851

 

 

Name :

Mr. Vegulaparanan Kasi Viswanathan

Designation :

Director

Address :

F 01,1st Floor, Legacy Caldera 56 SRT Road, Cunningham Cross Road Bangalore- 560052, Karnataka, India

Date of Appointment :

14.01.2014

DIN No.:

01782934

 

 

Name :

Mr. Gopal Vittal

Designation :

Managing Director and CEO (India and South Asia)

Address :

A2/1202, Sector 30 Gurugram – 122001, Haryana, India

Date of Appointment :

01.02.2013

DIN No.:

02291778

 

 

Name :

Mr. Craig Edward Ehrlich

Designation :

Director

Address :

Block B, 6/F, Best View Court 66 Mac Donnell Road, Hong Kong

Date of Appointment :

29.04.2009

DIN No.:

02612082

 

 

Name :

Mr. Tan Yong Choo

Designation :

Director

Address :

22, Park Villas Green, Singapore- 545430

Date of Appointment :

21.01.2010

DIN No.:

02910529

 

 

Name :

Mr. Shishir Priyadarshi

Designation :

Director

Address :

24, Cret De Champel Geneva- 1206, Switzerland

Date of Appointment :

04.02.2015

DIN No.:

03459204

 

 

Name :

Mr. Bernardus Johannes Maria Verwaayen

Designation :

Director

Address :

Flat 7, 1 - 3 Princes Gate London - SW7 1QJ London

Date of Appointment :

12.12.2013

DIN No.:

06735687

 

 

KEY EXECUTIVES

 

Name :

Mr. Nilanjan Roy

Designation :

Chief Finance Officer

Address :

A-4/901, Uni World Spa East, Sector-30, Nh 8, Gurugram – 122002, Haryana, India

Date of Appointment :

05.08.2015

PAN No.:

ABEPR3735L

 

 

Name :

Mr. Pankaj Tewari

Designation :

Company Secretary

Address :

H. No. P2A 106, Princeton Estate, Near Golf Course DLF Phase-5, Sikanderpur, Ghosi (68), DLF QE, Gurugram -122002, Haryana, India

Date of Appointment :

18.07.2017

PAN No.:

ACWPT6979P

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on December 2017

 

Category of shareholder

No. of fully paid up equity shares held

Shareholding as a % of total no. of shares

(A) Promoter & Promoter Group

2683781555

67.14

(B) Public

1312145248

32.82

I Non Promoter-Non Public

1473299

0.04

Grand Total

3997400102

100.00

 


Statement showing shareholding pattern of the Promoter and Promoter Group

 

Category of shareholder

No. of fully paid up equity shares held

Shareholding as a % of total no. of shares

A1) Indian

0.00

 

Any Other (specify)

2002818452

50.10

 

Bharti Telecom Limited

2002818452

50.10

 

Sub Total A1

2002818452

50.10

 

A2) Foreign

0.00

 

Any Other (specify)

680963103

17.04

 

Indian Continent Investment Limited

81150803

2.03

 

Viridian Limited

8493000

0.21

 

Pastel Limited

591319300

14.79

 

Sub Total A2

680963103

17.04

 

A=A1+A2

2683781555

67.14

 

 

Statement showing shareholding pattern of the Public shareholder

 

Category & Name of the Shareholders

No. of fully paid up equity shares held

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

B1) Institutions

0

0.00

 

Mutual Funds/

230135677

5.76

 

ICICI Prudential Mutual Funds (through various accounts)

58611301

1.47

 

SBI Mutual Funds (through various accounts)

44648417

1.12

 

Foreign Portfolio Investors

750856750

18.78

 

Merrill Linch Markets Singapore Pte. Ltd.

50873365

1.27

 

Financial Institutions/ Banks

2952907

0.07

 

Insurance Companies

250297036

6.26

 

ICICI Prudential Life Insurance Company Limited (through 2 accounts)

66435909

1.66

 

Life Insurace Corporation of India (through various accounts)

157094561

3.93

 

Sub Total B1

1234242370

30.88

 

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

0

0.00

 

B3) Non-Institutions

0

0.00

 

Individual share capital upto Rs. 2 Lacs

22645569

0.57

 

Individual share capital in excess of Rs. 2 Lacs

8918441

0.22

 

NBFCs registered with RBI

291725

0.01

 

Any Other (specify)

46047143

1.15

 

Trusts

7106974

0.18

 

NRI

1486945

0.04

 

NRI – Non- Repat

684312

0.02

 

Bodies Corporate

27572580

0.69

 

Clearing Members

4660669

0.12

 

Bodies Corporate

2532710

0.06

 

Alternate Investment Fund

1953680

0.05

 

Investor Education and Protection Fund

49273

0.00

 

Sub Total B3

77902878

1.95

 

B=B1+B2+B3

1312145248

32.82

 

 

 

 

 

 

BUSINESS DETAILS

 

Line of Business :

The Subject is principally engaged in provision of telecommunication services in India. (Registered activity)

 

 

Products :

Item Code No.

Product Description

612

Wireless telecommunications activities

 

 

Brand Names :

Not Divulged

 

 

Agencies Held :

Not Divulged

 

 

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 :

9279 (Approximately)

 

 

Bankers :

Bank Name

The Hongkong and Shanghai Banking Corporation Limited

Branch

25, Birla Tower Barakhamba Road, New Delhi – 110001, 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 Loan

31.03.2017

(INR in Million)

31.03.2016

(INR in Million)

Long-term Borrowings

 

 

Term loans Others*

31.000

20.000

Less: Current portion

(15.000)

(10.000)

(*Others include vehicle loans taken from banks which were secured by hypothecation of the vehicles.)

 

 

Total

16.000

10.000

 

Financial Institutions :

Kotak Mahindra Prime Limited, 27BKC, C 27, G Block Bandra Kurla Complex, Bandra (East), Mumbai – 400051, Maharashtra, India

 

 

Statutory Auditors :

 

Name :

S. R. Batlibol and Associates LLP

Chartered Accountants

Address :

Golf View Corporate Tower –B, Sector- 42, Sector Road,, Gurugram – 122002, Haryana, India

Tel No.:

91-124-4644000

Fax No.:

91-124-4644050

 

 

Internal Auditors :

 

Name :

·         ANB Solution Private Limited

Chartered Accountants

·         KPMG

Chartered Accountants

 

 

Cost Auditors :

 

Name :

R.J. Goel and Company

Chartered Accountants

 

 

Secretarial Auditors :

 

Name :

Chandrasekaran Associates

Chartered Accountants

 

 

Memberships :

Not Available

 

 

Collaborators :

Not Available

 

 

Subsidiaries :

Indian:

 

  • Airtel Broadband Services Private Limited (merged with the Company w.e.f April 9, 2015)
  • Airtel Payments Bank Limited (formerly known as Airtel M Commerce Services Limited)
  • Bharti Airtel Services Limited
  • Bharti Hexacom Limited
  • Bharti Infratel Limited
  • Bharti Infratel Services Limited #
  • Bharti Telemedia Limited
  • Indo Teleports Limited (formerly known as Bharti Teleports Limited)
  • Nxtra Data Limited
  • Smartx Services Limited (subsidiary w.e.f. September 21, 2015)
  • Telesonic Networks Limited
  • Wynk Limited
  • Nettle Infrastructure Investments Limited (formerly known as Nettle Developers Limited, subsidiary w.e.f. March 14, 2017)
  • Augere Wireless Broadband India Private Limited (subsidiary w.e.f. June 7, 2016, subsequently merged with the Company w.e.f. February 15, 2017) ^

 

- Foreign

 

  • Africa Towers N.V.
  • Africa Towers Services Limited ##
  • Airtel (Seychelles) Limited
  • Airtel (SL) Limited (sold on July 19, 2016)
  • Airtel Bangladesh Limited (Merged with Robi Axiata
  • Limited w.e.f. November 16, 2016)
  • Airtel Burkina Faso S.A. (sold on June 22, 2016)
  • Airtel Congo (RDC) S.A.
  • Airtel Congo S.A.
  • Airtel DTH Services (SL) Limited #
  • Airtel DTH Services Congo (RDC) S.p.r.l. ###
  • Airtel DTH Services Nigeria Limited ##
  • Airtel Gabon S.A.
  • Airtel Ghana Limited
  • Airtel Madagascar S.A.
  • Airtel Malawi Limited
  • Airtel Mobile Commerce (Ghana) Limited
  • Airtel Mobile Commerce (Kenya) Limited
  • Airtel Mobile Commerce (Seychelles) Limited
  • Airtel Mobile Commerce (SL) Limited (sold on July 19, 2016)
  • Airtel Mobile Commerce (Tanzania) Limited
  • Airtel Mobile Commerce B.V.
  • Airtel Mobile Commerce Burkina Faso S.A. (sold on June 22, 2016)
  • Airtel Mobile Commerce Holdings B.V.
  • Airtel Mobile Commerce Limited, Malawi
  • Airtel Mobile Commerce Madagascar S.A.
  • Airtel Mobile Commerce Rwanda Limited
  • Airtel Mobile Commerce Tchad S.a.r.l.
  • Airtel Mobile Commerce Uganda Limited
  • Airtel Mobile Commerce Zambia Limited
  • Airtel Money (RDC) S.A.
  • Airtel Money Niger S.A
  • Airtel Money S.A. (Gabon)
  • Airtel Money Transfer Limited
  • Airtel Money Tanzania Limited (incorporated on June 10, 2016)
  • Airtel Networks Kenya Limited
  • Airtel Networks Limited
  • Airtel Networks Zambia Plc
  • Airtel Rwanda Limited
  • Airtel Tanzania Limited
  • Airtel Tchad S.A.
  • Airtel Towers (Ghana) Limited #
  • Airtel Towers (SL) Company Limited #
  • Airtel Uganda Limited
  • Bangladesh Infratel Networks Limited ##
  • Bharti Airtel (Canada) Limited ###
  • Bharti Airtel (France) SAS
  • Bharti Airtel (Hong Kong) Limited
  • Bharti Airtel (Japan) Kabushiki Kaisha
  • Bharti Airtel (UK) Limited
  • Bharti Airtel (USA) Limited
  • Bharti Airtel Africa B.V.
  • Bharti Airtel Burkina Faso Holdings B.V.
  • Bharti Airtel Chad Holdings B.V.
  • Bharti Airtel Congo Holdings B.V.
  • Bharti Airtel Developers Forum Limited
  • Bharti Airtel DTH Holdings B.V.
  • Bharti Airtel Gabon Holdings B.V.
  • Bharti Airtel Ghana Holdings B.V.
  • Bharti Airtel Holdings (Singapore) Pte Ltd (merged with
  • Bharti International (Singapore) Pte Ltd w.e.f. July 15, 2016)
  • Bharti Airtel International (Mauritius) Limited^
  • Bharti Airtel International (Netherlands) B.V.^
  • Bharti Airtel Kenya B.V.
  • Bharti Airtel Kenya Holdings B.V.
  • Bharti Airtel Lanka (Private) Limited
  • Bharti Infratel Lanka (Private) Limited ##
  • Bharti Airtel Madagascar Holdings B.V.
  • Bharti Airtel Malawi Holdings B.V.
  • Bharti Airtel Mali Holdings B.V.
  • Bharti Airtel Niger Holdings B.V.
  • Bharti Airtel Nigeria B.V.
  • Bharti Airtel Nigeria Holdings B.V. ##
  • Bharti Airtel Nigeria Holdings II B.V.
  • Bharti Airtel RDC Holdings B.V.
  • Bharti Airtel Rwanda Holdings Limited
  • Bharti Airtel Services B.V.
  • Bharti Airtel Sierra Leone Holdings B.V. (sold on July 19, 2016)
  • Bharti Airtel Tanzania B.V.
  • Bharti Airtel Uganda Holdings B.V.
  • Bharti Airtel Zambia Holdings B.V.
  • Bharti International (Singapore) Pte. Ltd
  • Burkina Faso Towers S.A. ###
  • Celtel (Mauritius) Holdings Limited
  • Celtel Niger S.A.
  • Channel Sea Management Company (Mauritius) Limited
  • Congo RDC Towers S.A.
  • Congo Towers S.A. #
  • Gabon Towers S.A. ##
  • Indian Ocean Telecom Limited
  • Kenya Towers Limited ###
  • Madagascar Towers S.A.
  • Malawi Towers Limited
  • Mobile Commerce Congo S.A.
  • Montana International
  • MSI-Celtel Nigeria Limited ##
  • Network i2i Limited
  • Niger Towers S.A. ###
  • Partnership Investment Sprl
  • Société Malgache de Téléphone Cellulaire S.A.
  • Tanzania Towers Limited
  • Tchad Towers S.A. #
  • Towers Support Nigeria Limited ##
  • Uganda Towers Limited ###
  • Warid Telecom Uganda Limited (Merged with Airtel
  • Uganda Limited w.e.f. July 31, 2016)
  • Zambian Towers Limited ###
  • Zap Trust Company Nigeria Limited ##

 

 

Associates

 

- Indian

  • Seynse Technologies Private Limited (Stake acquird on February 21, 2017)

 

- Foreign

 

  • Tanzania Telecommunications Company Ltd (‘TTCL’) (Stake sold on June 23, 2016)
  • Seychelles Cable Systems Company Limited Robi Axiata Limited (stake acquired w.e.f. November 16, 2016)

 

 

Joint Ventures

 

 Indian

  • Indus Towers Limited
  • Firefly Networks Limited
  • Forum I Aviation Limited (Investment sold on January 7, 2016)

 

- Foreign

  • Bridge Mobile Pte Limited

 

 

Entities having significant influence over the Company:

- Indian

  • Bharti Telecom Limited

 

- Foreign

  • Singapore Telecommunications Limited
  • Pastel Limited

 

 

Others related parties*

i) Key Management Personnel and their relatives exercise significant influence

 

- Indian

  • Bharti Foundation
  • Bharti Airtel Employees Welfare Trust
  • Hike Private Limited (formerly known as Hike Limited)
  • Cedar Support Services Limited

 

ii) Group Companies

 

- Indian

  • Brightstar Telecommunication India Limited (formerly known as Beetel Teletech Limited)

 

  • Bharti Axa General Insurance Company Limited

 

  • Bharti Axa Life Insurance Company Limited
  • Bharti Realty Holdings Limited
  • Bharti Realty Limited
  • Future Retail Limited (ceased w.e.f. May 01, 2016)
  • Deber Technologies Private Limited (formerly known as
  • Ignite World Private Limited)
  • Hike Messenger Limited (formerly known as BSB
  • Innovation India Limited)
  • Centum Learning Limited
  • Fieldfresh Foods Private Limited
  • Indian Continent Investment Limited
  • Jersey Airtel Limited
  • Nile Tech Limited
  • Y2CF Digital Media Limited
  • Bharti Enterprises Limited
  • Atrium Restaurants India Private Limited
  • Bharti Land Limited
  • Centum Work skills India Limited
  • Oak Infrastructure Developers Limited
  • Gourmet Investments Private Limited

 

Note:

 

* ‘Other related parties’ though not ‘Related Parties’ as per the definition under IND AS 24, ‘Related party disclosures’, have been included by way of a voluntary disclosure, following the best corporate governance practices.

# Dissolved during the year ended March 31, 2017.

## Under liquidation.

### Dissolved during the year ended March 31, 2016.

^ Refer note 5.

 

 

CAPITAL STRUCTURE

 

As on 31.03.2017

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

5500000000

Equity Shares

INR 5/- each

INR 27500.000 Million

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

3997400102

Equity Shares

INR 5/- each

INR 19987.000 Million

 

 

 

 

 

a. Terms/rights attached to equity shares

The Company has only one class of equity shares having par value of ` 5 per share. Each holder of equity shares is entitled to cast one vote per share.

 

Details of shareholders (as per the register of shareholders) holding more than 5% shares in the Company

 

Particulars

As of March 31, 2017

 

No.

% holding

Equity shares of Rs.5 each fully paid up

 

 

Bharti Telecom Limited

1817987

45.48%

Pastel Limited

591319

14.79%

Indian Continent Investment Limited

265861

6.65%

Life Insurance Corporation of India child Fortune Plus Balance Fund

211832

5.30%

Three Pillar Private Limited

199870

5.00%

 

c. Shares held by Bharti Airtel Welfare Trust against employee share-based payment plans (face value of ` 5/- each)

 

Particulars

As of March 31, 2017

 

No.

INR In Million

Opening balance

1,882

524.000

Purchased during the year

--

--

Exercised during the year

(537)

(157.000)

 

1345

367.000

 

d. Dividend paid and proposed

 

Particulars

For the year ended

March 31, 2017

A Declared and paid during the year:

 

Final dividend for 2015-16 : INR 1.36 per share (including dividend distribution tax @ 20.358% of INR 1,107 Mn)

6543

Final dividend for 2014-15 : INR 2.22 per share (including dividend distribution tax @ 20.358% of INR 1,807 Mn)

--

 

6543

B Proposed dividend

 

Final dividend for 2016-17: INR 1.00 per share (2015-16 : INR 1.36 per share)

3,997

Dividend distribution tax @ 20.358%

817

 

4811

 

The proposed dividend is subject to approval at annual general meeting and hence has not been ecognized as liability.

 

During the year ended March 31, 2017 and 2016, the Company has availed tax credit of INR 1,087 and INR 1,807 respectively, on account of dividend distribution tax on dividend received from subsidiary companies.

 

 

 

FINANCIAL DATA

[all figures are in INR Million]

 

ABRIDGED BALANCE SHEET – STANDALONE

 

SOURCES OF FUNDS

31.03.2017

31.03.2016

31.03.2015

 

 

 

 

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders’ Funds

 

 

 

(a) Share Capital

19987.000

19987.000

19987.000

(b) Reserves & Surplus

992086.000

1097304.000

762742.000

I 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)

1012073.000

1117291.000

782729.000

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

503421.000

414570.000

196267.000

(b) Deferred tax liabilities (Net)

18321.000

16984.000

10721.000

I Other long term liabilities

22067.000

20744.000

42036.000

(d) long-term provisions

2330.000

2223.000

1969.000

Total Non-current Liabilities (3)

546139.000

454521.000

250993.000

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

65478.000

6999.000

6259.000

(b) Trade payables

149698.000

119706.000

71232.000

I Other current liabilities

132737.000

150574.000

140675.000

(d) Short-term provisions

1291.000

1189.000

12349.000

Total Current Liabilities (4)

349204.000

278468.000

230515.000

 

 

 

 

TOTAL

1907416.000

1850280.000

1264237.000

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

381176.000

312673.000

256552.000

(ii) Intangible Assets

734052.000

606582.000

277892.000

(iii) Capital work-in-progress

11818.000

28588.000

26561.000

(iv) Intangible assets under development

84184.000

9715.000

64108.000

(b) Non-current Investments

52.000

52.000

383958.000

I Deferred tax assets (net)

8875.000

23070.000

0.000

(d)  Long-term Loan and Advances

10389.000

28861.000

88381.000

I Other Non-current assets

500161.000

726529.000

19221.000

Total Non-Current Assets

1730707.000

1736070.000

1116673.000

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

8.000

47211.000

(b) Inventories

39.000

53.000

94.000

I Trade receivables

32118.000

31724.000

33110.000

(d) Cash and cash equivalents

1087.000

466.000

3887.000

I Short-term loans and advances

72081.000

43376.000

53942.000

(f) Other current assets

71384.000

38583.000

9320.000

Total Current Assets

176709.000

114210.000

147564.000

 

 

 

 

TOTAL

1907416.000

1850280.000

1264237.000

 

 

PROFIT & LOSS ACCOUNT – STANDALONE

 

 

PARTICULARS

31.03.2017

31.03.2016

31.03.2015

 

SALES

 

 

 

 

Income

622763.000

603003.000

554964.000

 

Other Income

1843.000

1729.000

51930.000

 

TOTAL

624606.000

604732.000

606894.000

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Materials Consumed

0.000

0.000

76.000

 

Purchases of Stock-in-Trade

0.000

0.000

0.000

 

Network operating expenses

145360.000

137889.000

0.000

 

Access charges

80505.000

80236.000

79601.000

 

License fee / spectrum charges (revenue share)

69416.000

69635.000

67062.000

 

Employees benefits expense

17385.000

18648.000

16915.000

 

Power and Fuel

0.000

0.000

41151.000

 

Rent

0.000

0.000

59790.000

 

Charity and Donation

0.000

0.000

292.000

 

Sales and marketing expenses

32320.000

32824.000

0.000

 

Non-operating expense

2324.000

1019.000

0.000

 

Exceptional items

172708.000

6799.000

0.000

 

Other expenses

38524.000

39640.000

95766.000

 

TOTAL

558542.000

386690.000

360653.000

 

 

 

 

 

 

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

66064.000

218042.000

246241.000

 

 

 

 

 

Less

FINANCIAL EXPENSES

29125.000

19745.000

14091.000

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

36939.000

198297.000

232150.000

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION

122034.000

95753.000

75597.000

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

(85095.000)

102544.000

156553.000

 

 

 

 

 

Less

TAX

14161.000

24741.000

24548.000

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX 

(99256.000)

77803.000

132005.000

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

49060.000

41867.000

37274.000

 

 

 

 

 

 

IMPORTS

 

 

 

 

Capital Goods

NA

NA

37221.000

 

TOTAL IMPORTS

NA

NA

37221.000

 

 

 

 

 

 

Earnings / (Loss) Per Share (INR)

(24.84)

19.46

33.02

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2017

31.03.2016

31.03.2015

Current Maturities of Long term debt

33451.000

33434.000

13128.000

Cash generated from operations

NA

NA

207934.000

Net cash flow from operating activity

211656.000

194499.000

179398.000

 

 

QUARTERLY RESULTS

 

Particulars

30.06.2017

30.09.2017

31.12.2017

Audited / Unaudited

Unaudited

Unaudited

Unaudited

 

1ST Quarter

2nd Quarter

3rd Quarter

Net Sales

145065.000

139801.000

126876.000

Total Expenditure

96075.000

92173.000

84154.000

PBIDT (Excl OI)

48990.000

47628.000

42722.000

Other Income

516.000

719.000

800.000

Operating Profit

49506.000

48347.000

43522.000

Interest

13454.000

11464.000

11829.000

Exceptional Items

(40.000)

(835.000)

(473.000

PBDT

36012.000

36048.000

31220.000

Depreciation

31789.000

30690.000

33474.000

Profit Before Tax

4223.000

5358.000

(2254.000)

Tax

1417.000

413.000

(2897.000)

Provisions and contingencies

NA

NA

NA

Profit After Tax

2806.000

4945.000

643.000

Extraordinary Items

NA

NA

NA

Prior Period Expenses

NA

NA

NA

Other Adjustments

NA

NA

NA

Net Profit

2806.000

4945.000

643.000

 

 

KEY RATIOS

 

EFFICIENCY RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Average Collection Days

(Sundry Debtors / Income * 365 Days)

18.82

19.20

21.78

 

 

 

 

Account Receivables Turnover

(Income / Sundry Debtors)

19.39

19.01

16.76

 

 

 

 

Average Payment Days

(Sundry Creditors / Purchases * 365 Days)

NA

NA

342101.05

 

 

 

 

Inventory Turnover

(Operating Income / Inventories)

1693.95

4114.00

2619.59

 

 

 

 

Asset Turnover

(Operating Income / Net Fixed Assets)

0.05

0.23

0.39

 

 

LEVERAGE RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Debt Ratio

((Borrowing + Current Liabilities) / Total Assets)

0.46

0.39

0.35

 

 

 

 

Debt Equity Ratio

(Total Liability / Networth)

0.60

0.41

0.28

 

 

 

 

Current Liabilities to Networth

(Current Liabilities / Net Worth)

0.35

0.25

0.29

 

 

 

 

Fixed Assets to Networth

(Net Fixed Assets / Networth)

1.20

0.86

0.80

 

 

 

 

Interest Coverage Ratio

(PBIT / Financial Charges)

2.27

11.04

17.48

 

 

PROFITABILITY RATIOS

 

PARTICULARS

 

 

31.03.2017

31.03.2016

31.03.2015

Net Profit Margin

((PAT / Sales) * 100)

%

(15.94)

12.90

23.79

 

 

 

 

 

Return on Total Assets

((PAT / Total Assets) * 100)

%

(5.20)

4.20

10.44

 

 

 

 

 

Return on Investment (ROI)

((PAT / Networth) * 100)

%

(9.81)

6.96

16.86

 

 

SOLVENCY RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Current Ratio

(Current Assets / Current Liabilities)

0.51

0.41

0.64

 

 

 

 

Quick Ratio

((Current Assets – Inventories) / Current Liabilities)

0.51

0.41

0.64

 

 

 

 

G-Score Ratio Financial

(Networth / Total Assets)

0.53

0.60

0.62

 

 

 

 

G-Score Ratio Debt

(Debts / Equity Capital)

30.14

22.76

10.79

 

 

 

 

G-Score Ratio Liquidity

(Total Current Assets / Total Current Liabilities)

0.51

0.41

0.64

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

 

 

STOCK PRICES

 

Face Value

INR 5.00/-

Market Value

INR 423.30/-

 

 

 

 

 

FINANCIAL ANALYSIS

[all figures are INR Million]

 

DEBT EQUITY RATIO

 

Particular

31.03.2015

31.03.2016

31.03.2017

 

INR In Million

INR In Million

INR In Million

Share Capital

19987.000

19987.000

19987.000

Reserves & Surplus

762742.000

1097304.000

992086.000

Share Application money pending allotment

0.000

0.000

0.000

Net worth

782729.000

1117291.000

1012073.000

 

 

 

 

Long Term borrowings

196267.000

414570.000

503421.000

Short Term borrowings

6259.000

6999.000

65478.000

Current Maturities of Long term debt

13128.000

33434.000

33451.000

Total borrowings

215654.000

455003.000

602350.000

Debt/Equity ratio

0.276

0.407

0.595

 

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2015

31.03.2016

31.03.2017

 

INR In Million

INR In Million

INR In Million

Sales

554964.000

603003.000

622763.000

 

 

8.656

3.277

 

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2015

31.03.2016

31.03.2017

 

INR In Million

INR In Million

INR In Million

Sales

554964.000

603003.000

622763.000

Profit

132005.000

77803.000

(99256.000)

 

23.79%

12.90%

(15.94%)

 

 

 

ABRIDGED BALANCE SHEET – (CONSOLIDATED)

 

SOURCES OF FUNDS

 

31.03.2017

31.03.2016

 

 

 

 

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders’ Funds

 

 

 

(a) Share Capital

 

19987.000

19987.000

(b) Reserves & Surplus

 

654576.000

647706.000

I Money received against share warrants

 

0.000

0.000

 

 

 

 

(2) Non-controlling interests

 

68750.000

54981.000

(3) Share Application money pending allotment

 

0.000

0.000

Total Shareholders’ Funds (1) + (2)

 

743313.000

722674.000

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

 

896373.000

892686.000

(b) Deferred tax liabilities (Net)

 

9429.000

12512.000

I Other long term liabilities

 

41469.000

35406.000

(d) long-term provisions

 

7471.000

7350.000

Total Non-current Liabilities (3)

 

954742.000

947954.000

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

 

129442.000

57238.000

(b) Trade payables

 

268537.000

255806.000

I Other current liabilities

 

229253.000

271228.000

(d) Short-term provisions

 

2215.000

2332.000

Total Current Liabilities (4)

 

629447.000

586604.000

 

 

 

 

TOTAL

 

2327502.000

2257232.000

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

 

620088.000

610508.000

(ii) Intangible Assets

 

824181.000

684039.000

(iii) Capital work-in-progress

 

23942.000

47304.000

(iv) Intangible assets under development

 

84443.000

9716.000

(v) Goodwill

 

338082.000

428381.000

(b) Non-current Investments

 

44187.000

28622.000

I Deferred tax assets (net)

 

26262.000

46738.000

(d)  Long-term Loan and Advances

 

0.000

0.000

I Other Non-current assets

 

163167.000

173372.000

Total Non-Current Assets

 

2124352.000

2028680.000

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

 

16923.000

16159.000

(b) Inventories

 

488.000

1692.000

I Trade receivables

 

49838.000

55039.000

(d) Cash and cash equivalents

 

16177.000

50987.000

I Short-term loans and advances

 

0.000

0.000

(f) Other current assets

 

119724.000

104675.000

Total Current Assets

 

203150.000

228552.000

 

 

 

 

TOTAL

 

2327502.000

2257232.000

 

 

PROFIT & LOSS ACCOUNT– (CONSOLIDATED)

 

 

PARTICULARS

 

31.03.2017

31.03.2016

 

SALES

 

 

 

 

Income

 

954683.000

965321.000

 

Other Income

 

1206.000

871.000

 

TOTAL

 

955889.000

966192.000

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Network operating expenses

 

209154.000

201567.000

 

Access charges

 

102786.000

109423.000

 

License fee / spectrum charges (revenue share)

 

92760.000

94928.000

 

Employees benefits expense

 

43032.000

49108.000

 

Sales and marketing expenses

 

71400.000

82410.000

 

Share of results of joint ventures and associates

 

(10449.000)

(10666.000)

 

Non-operating expense (net)

 

1319.000

1024.000

 

Exceptional items

 

11697.000

(21741.000)

 

Other expenses

 

82253.000

88043.000

 

TOTAL

 

603952.000

594096.000

 

 

 

 

 

 

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

 

351937.000

372096.000

 

 

 

 

 

Less

FINANCIAL EXPENSES

 

76974.000

69135.000

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

 

274963.000

302961.000

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION

 

197730.000

174498.000

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

 

77233.000

128463.000

 

 

 

 

 

Less

TAX

 

34819.000

59833.000

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX 

 

42414.000

68630.000

 

 

 

 

 

 

Other comprehensive income (‘OCI’)

 

 

 

 

Items to be reclassified subsequently to profit or loss :

 

 

 

 

Net losses due to foreign currency translation differences

 

(41424.000)

(4920.000)

 

Net losses on net investments hedge

 

(10330.000)

(7108.000)

Add

Net gains / (losses) on cash flow hedge

 

857.000

(724.000)

 

Net gains on fair value through OCI investments

 

107.000

9.000

Add

Income tax (charge) / credit

 

(16.000

503.000

 

 

 

(50806.000)

(12240.000)

 

Items not to be reclassified to profit or loss :

 

 

 

Less

Re-measurement losses on defined benefit plans

 

(73.000)

(129.000)

 

Share of joint ventures and associates

 

(9.000)

(4.000)

 

Income tax credit

 

20.000

25.000

 

 

(62.000)

(108.000)

 

 

 

 

 

 

Other comprehensive loss for the year

 

(50868.000)

(12348.000)

 

 

 

 

 

 

Total comprehensive (loss) / gain for the year

 

(8454.000)

56582.000

 

 

 

 

 

 

Earnings / (Loss) Per Share (INR)

 

9.51

15.21

 

 

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

--

33

Market information

--

34

Payments terms

No

35

Negative Reporting by Auditors in the Annual Report

No

 

 

CORPORATE INFORMATION

 

Bharti Airtel Limited (‘the Company’) is domiciled and incorporated in India as a limited liability company with its shares being listed on the National Stock Exchange and the Bombay Stock Exchange. The registered office of the Company is situated at Bharti Crescent, 1, Nelson Mandela Road, Vasant Kunj, Phase – II, New Delhi – 110070.

 

The Company is principally engaged in provision of telecommunication services in India.

 

 

COMPANY OVERVIEW

 

Bharti Airtel is among the top three mobile service providers globally with presence in 17 countries, including India, Sri Lanka and 15 countries in the African continent.

 

The Company’s diversified service range includes mobile, voice and data solutions, using 2G, 3G and 4G technologies. Its service portfolio comprises Digital TV services, an integrated suite of telecom solutions for its customers, besides providing long distance connectivity in India, Africa and rest of the world. All the services are rendered under a unified brand ‘airtel’ either directly or through subsidiary companies. ‘Airtel Money’ (known as ‘Airtel Payments Bank’ in India) extends product portfolio to further their financial inclusion agenda and offers convenience of payments and money transfers on mobile phones over secure and stable platforms in India, and across all 15 countries in Africa.

 

The Company also deploys and manages passive infrastructure pertaining to telecom operations through its subsidiary, Bharti Infratel Limited, which also owns 42% of Indus Towers Limited. Together, Bharti Infratel and Indus Towers are the largest passive infrastructure service providers in India.

 

 

FINANCIAL RESULTS

 

In compliance with the provisions of the Companies Act, 2013, and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘Listing Regulations’) the Company has prepared its standalone and consolidated financial statements as per Indian Accounting Standards (Ind AS) for the FY 2016-17. The standalone and consolidated financial highlights of the Company’s operations are as follows:

 

The financial results and the results of operations, including major developments have been further discussed in detail in the Management Discussion and Analysis section.

 

Indian Accounting Standards

 

The Ministry of Corporate Affairs (MCA), vide its notification dated February 16, 2015, notified the Indian Accounting Standards (Ind AS) applicable to certain class of companies. Ind AS has replaced the existing Indian GAAP prescribed under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014.

 

Pursuant to the aforesaid notification, with effect from April 01, 2016, the Company has transitioned to Ind AS and the transition date being April 01, 2015. The transition is carried out from accounting principles generally accepted in India being the previous GAAP. Accordingly, basis the accounting policies and Ind-AS 101 exemptions ecognize, the impact of transition has been provided in the opening equity as at April 01, 2015 and figures for the previous year have been adjusted accordingly.

 

The reconciliation and explanation of the effect of transition to Ind AS are given in detail in note 23 and 29 of the standalone and consolidated financial statements respectively.

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

FY 2017 closed on a transformational note. The industry disruption in India hastened consolidation, telecom market moved to unlimited voice, bundled with large buckets of data, and the new entrant finally announced the launch of its paid services. ‘Free pricing’ during the year, by the new operator ecognized the financial health of the industry. Predatory pricing impacted all stakeholders, and hampered government levies and taxes. In this heightened phase of competitive intensity, their priorities for the year centered on retaining and growing their high-quality customer base while ecognized cost, all of which was enabled via their network leadership and an uncompromising commitment to their customers. Airtel is well prepared for this new normal, where the battle for capacity, network reach, and customer experience intersect. In line with the Government of India’s ‘Digital India’ drive, Airtel launched Pan India Payments Bank. Airtel Payments Bank became the first payments bank in the country to go LIVE as it rolled out services nationally.

 

Africa continued to build on a potential turnaround. Airtel remains committed to Africa and during the year their efforts to strengthen their competitive position in weaker markets continued. With war on waste efforts driving opex efficiencies, Africa turned PBT positive during the year. Over the year, they continued to de-lever Africa through strategic stake sale in subsidiaries, tower sales and other asset ecognizedo. The continuing trend of growth in data volumes and correction of prices in voice, as well as the adoption of mobile money is a re-affirmation of the potential growth opportunity in Africa. Coupled with the demographic dividend, Africa would see the benefits of scale in the future.

 

Their investment grade ratings which are awarded and reaffirmed by international credit rating agencies validate that they have built a robust, scalable and sustainable business model. Their focus is to maintain an optimum capital structure at all times and enhance their financial strength. They stay committed to creating value for their stakeholders, while ensuring highest standards of corporate governance.

 

Economic Overview

 

Global Review

 

The financial year 2016-17 was marked by socio-economic uncertainty with widely unexpected outcomes such as UK’s Brexit referendum and the US Presidential election. However, global growth prospects improved and fears of deflation receded towards the end of the year, helped by rising commodity prices and hopes of a fiscal stimulus in the US.

 

The US economy performed better than expectations during the year as US firms grew more confident of future demand. The economy also recorded a lower rate of unemployment. Even for Britain, it was widely believed that the Brexit referendum would hurt the economy. However, consumer confidence did not suffer, and to a large extent the economy was not derailed.

 

If these tailwinds continue, the global economy may pick up steam over the medium term. However, major structural impediments (low productivity growth and high-income inequality) continue to hinder a stronger recovery, especially over the medium term in advanced economies.

 

At the other end of the spectrum are the emerging markets and developing economies, which contribute significantly to global economic growth. These economies now account for over 75% of global growth in output and consumption, almost double their share in the last two decades. According to the IMF, the significant income gaps in these economies vis-ŕ-vis those in advanced economies suggest a significant headroom for growth. This shows that emerging markets and developing economies have a strong potential for growth over the medium term.

 

During 2016-17, the picture for emerging market and developing economies (EMDEs) presented a diverse pattern: Stronger than expected growth in China, supported by continued policy stimulus. Weaker than expected activity in some Latin American countries (Argentina, Brazil and Turkey), which faced a sharp contraction in tourism revenues. Better than expected activity in Russia, in part reflecting firmer oil prices.

 

Going into 2017, encouraging economic dynamics in the first quarter of 2017, along with possibility of fiscal support in many economies, are likely to support global growth.

 

Indian Economy

 

India’s macro fundamentals continued to remain stable during the year, reinforced by concerted policy efforts by the Government. Measures to control food prices and judicious use of monetary policy levers by the RBI kept inflation low throughout FY 2016-17. The country continued to be one of the world’s fastest growing economy, registering 7.1% growth in FY 2016-17.

 

After two years of drought, the monsoon was encouraging during the year, significantly improving agricultural prospects. Lower food prices helped bring headline CPI inflation down to an average of 4.5% in FY 2016-17. This, along with the implementation of the 7th Pay Commission, strengthened rural and urban domestic demand. The Government of India also initiated a seminal economic reform (ecognizedon) to reduce the cash intensity in the economy; and to drive ecognizedon and ecognizedo across all sectors.

 

Despite temporary hardships (which marginally impacted growth), ecognizedon holds potential for long-term benefits by paving the way towards a larger and a cleaner GDP, driven by digital channels.

 

 

The passage of the Constitutional Amendment for paving the way for GST implementation was another landmark policy initiative, which the Government undertook. On the external front, current account deficit remained within comfortable limits. Inflation eased as well, paving the way for 50 bps reduction in interest rates.

 

OUTLOOK

 

India’s growth momentum is likely to accelerate in the second half of FY 2018, with continued focus on infrastructure creation and manufacturing, and trickle-down impact of past policy reforms. In addition, long-term economic growth will be driven by major factors: low interest rates; benign inflation; favourable demographics (half of the population is below the age of 35); and greater focus on ecognizedon and ecognizedo of the economy.

 

Key snapshots

1. India’s digital economy is expected to grow from the current USD 270 Bn to around USD 1 Tn in the next 5-7 years, driven by exponential growth in e-commerce, electronic manufacturing, IT services, financial technologies (FinTech) and telecom.

 

2. The Government of India has set an ambitious target of increasing the contribution of manufacturing output to 25% of Gross Domestic Product (GDP) by 2025, from 16% currently.

 

3. The Government is targeting around INR 25 Tn (USD 376.53 Bn) investment in infrastructure over a three-year period, which will include INR 8 Tn (USD 120.49 Bn) for developing 27 industrial clusters; and an additional INR 5 Tn (USD 75.30 Bn) for roads, railways and port connectivity projects.

 

4. Higher agricultural credit, enhanced allocation for irrigation projects, a crop insurance scheme for farmers

and increased allocations for MGNREGA in the Union Budget will help bolster rural income.

 

African Economy

The financial year 2016-17 was very challenging for the African economy, owing to sharp declines in commodity pricing, slow recovery following the Ebola epidemic, severe drought in Southern and Eastern African countries, political turmoil and fuel shortages in a few countries. However, economic growth improved in the last quarter of 2016.

 

The performance of oil exporting economies is likely to be volatile, while there will be robust growth in economies, which are less reliant on natural resources.

 

There are fundamentally positive dynamics, which play in Africa’s favour, including a growing labour force, increased ecognizedo and advanced technology. Africa has the potential to emerge as one of the world’s most productive and dynamic economies, where the telecom sector continues to witness a revolution in the areas of data and mobile commerce.

 

Mobile has become a platform of choice for creating, distributing and consuming innovative digital solutions in Africa. This scenario is also leading to a tech start-up ecosystem in the region.

 

Key snapshots

1. In Sub-Saharan Africa, recovery is expected in 2017 with growth projected to rise to 2.6% in 2017 as commodity prices rebound, and drought conditions ease.

2. Focus on institutional governance, education and empowerment of youth are likely to be the continent’s growth catalysts for the future.

3. Mobile devices are now the primary means through which about 80% of internet users in Sub-Saharan Africa access the internet.

 

South Asian Economy

 

Sri Lankan economy has transitioned from a primarily agricultural economy to a more ecognize one, driven by services. Last decade marked an improvement in prosperity and a decline in poverty. However, 2016 was marked by a decline in agricultural production, but a pickup in construction and investment led growth for Sri Lanka. Underpinned by growth and bolstered by medium term fiscal support, Sri Lankan economy rode out 2016, despite global headwinds. The outlook for the region is bright as the Government is implementing an economic programme to address macroeconomic imbalances and a large public debt

 

Industry Overview

 

Indian Telecom Sector

India’s total customer base stood at 1,194.58 Mn with teledensity of 92.98%, as on March 31, 2017. The customer

base has grown from 1,058.86 Mn and a tele-density of 83.36% last year. The urban tele-density stood at 171.80%, whereas the rural tele-density stood at 56.91%, as on March 2017. The country’s telecom market continues to witness a strong growth of internet users; and now has the world’s second highest number of internet users. The wire-line customer base is 24.40 Mn at the end of March 31, 2017 vis-ŕ-vis 25.22 Mn at the end of March 31, 2016.

 

Among the service areas excluding metros, Himachal Pradesh has the highest tele-density (147.71%) followed by Tamil Nadu (128.40%), Punjab (118.28%), Kerala (114.75%), Gujarat (113.70%), Karnataka (113.38%), and Maharashtra (109.50%). Among the three metros, Delhi tops with 257.76% tele-density. On the other hand, the service areas, such as Bihar (60.95%), Assam (66.89%), Madhya Pradesh (67.04%), and Uttar Pradesh (74.02%) have comparatively low tele-density.

 

Albeit rural penetration improved during the year and touched 56.91% as on March 31, 2017 vis-ŕ-vis 51.37% as on March 31, 2016, low penetration shows a strong headroom for growth. With urban tele-density of over 170%, brilliant data network along with swift customer service and experience will be the key growth drivers in urban areas. With the government’s favourable regulations /policies and the fast changing highspeed 4G ecosystem, India’s telecommunication sector is expected to witness an exponential surge in data consumption in the coming years.

 

The year saw several business and industry developments, including the entry of a new operator offering free voice and data, leading to an unprecedented wave of consolidation in the telecom sector. During the year, the Company strengthened its spectrum and network footprint significantly through organic and inorganic routes. It is now best placed to capture the data market. During the year, the Company secured spectrum requirements in October 2016 auction (Refer section “Spectrum Auctions in India” on page 31).

 

African Telecom Sector

 

The African continent remains surrounded by unpredictable economic and socio-political climate, marked by depressed commodity and fuel prices and less accommodating global financial conditions. Nevertheless, the continent still holds a huge promise. It is rich in natural resources, and a young population aspiring for a better quality of life.

 

The revenue-weighted currency depreciation vis-ŕ-vis the US Dollar across 15 countries in Africa over the last 12 months

(exit March 31 rates) has been 19.35%, primarily caused by depreciation in Nigerian Naira by 53.7%, Ghanaian Cedi by 12.6% and Uganda Shilling by 7.2%. In terms of the 12-month average rates, the revenue-weighted Y-o-Y currency depreciation has been 15.5%, mainly caused by depreciation in Nigerian Naira by 42.3%, and Malawian Kwacha by 26.2%.

 

A population of over a billion people and growing economic potential are creating new vistas of opportunities for the African telecom sector. Mobile data and digital economy offerings have a significant potential for sustainable growth; and with the smartphone prices coming down and increase in data adaptability, the African telecom market is set to be one of the remarkable success stories.

 

 

Development in Regulations

 

The year saw several regulatory changes and developments. The significant regulatory changes were:

 

India

 

  • Spectrum Auction: In October 2016, DoT concluded the auction process for 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz and 2500 MHz spectrum. Of 1,434.75 MHz (paired) and 920 MHz (unpaired) spectrum was put to auction across bands and service areas, 274.80 MHz of paired spectrum in 800 MHz, 1800 MHz and 2100 MHz bands and 690 MHz of unpaired spectrum in 2300 MHz and 2500 MHz bands was sold for a total consideration of INR 657,891 Mn. Airtel won 173.80 MHz (43.80 MHz of paired spectrum in 1800 MHz and 2100 MHz bands and 130 MHz of unpaired spectrum in 2300 MHz band) of spectrum worth INR 142,436 Mn.

 

  • Spectrum Usage Charges (SUC): DoT has released new guidelines for the computation of SUC, according to which the spectrum assigned through the auction of 2016 will be charged @ flat 3%. The weighted average SUC rate will be computed for all spectrum held by an operator (whether assigned administratively or through auctions or through trading) including BWA spectrum acquired in 2010 subject to a minimum of 3% of AGR (excluding revenue from wire line services).

 

 

  • The separate SUC from use of BWA spectrum has been withdrawn. In these guidelines, DoT has also fixed the floor amount of the SUC to be paid by the operator. The same is fixed as the amount of SUC payable by the operators during FY 2015-16 using the weighted average SUC rate derived after taking into consideration the spectrum acquired through auction of 2016 and excluding the spectrum in 2300 MHz/2500 MHz band acquired/ allocated prior to 2015-16. Further, in case there is a reduction in AGR of the service provider, the floor amount of SUC shall be reduced proportionately.

 

 

  • Harmonisation in 1800 MHz Band: Spectrum ecognizedon refers to uniform allocation of radio frequency bands. During the year, spectrum ecognizedon has been completed in all the 22 service areas, making nearly 188 MHz of paired spectrum available to the Government. The benefit for operators due to this ecognizedon is that the spectrum they currently hold becomes contiguous and, therefore, more efficient, thereby improving network quality and broadband speeds.

 

 

 

UNSECURED LOAN

 

Unsecured Loan

31.03.2017

(INR in Million)

31.03.2016

(INR in Million)

Long-term Borrowings

 

 

Term loans

31457.000

39207.000

Non convertible bonds @

64082.000

65402.000

(@ During the year ended March 31, 2016, the Company had issued 4.375% USD 1,000 Mn (INR 63,973) senior unsecured notes (‘Bonds’) at issue price of 99.304% which are listed on Singapore stock exchange and due for repayment in the year 2025.)

 

 

Deferred payment liabilities **

439205.000

341424.000

(** During the year ended March 31, 2017, 2015 and 2014, the Company had won the auction for spectrum aggregating to 350.6 Mhz. The Company had opted for deferred payment in certain circles for a specified portion of the auction price. The deferred payment liability ecognized in the financial

statements is payable in 10 equal annual installments (including the related interest) after a moratorium of two years.)

 

 

Finance lease obligations

2097.000

1951.000

Less: Current portion (B)

(33436.000)

(33424.000)

 

 

 

Short-term borrowings

 

 

Term loans

65213.000

3975.000

Bank overdraft

265.000

3024.000

Total

568883.000

421559.000

 

 

INDEX OF CHARGES:

 

SNo

SRN

Charge Id

Charge Holder Name

Date of Creation

Date of Modification

Date of Satisfaction

Amount

Address

1

G74903402

100149807

KOTAK MAHINDRA PRIME LIMITED

31/12/2017

-

-

5288115.0

27BKC, C 27, G BlockBandra Kurla Complex, Bandra I,MumbaiMa400051IN

2

G70583182

100140846

KOTAK MAHINDRA PRIME LIMITED

23/11/2017

-

-

1215165.0

27BKC, C 27, G BlockBandra Kurla Complex, Bandra I,MumbaiMa400051IN

3

G60815891

100132293

KOTAK MAHINDRA PRIME LIMITED

25/10/2017

-

-

5247144.0

27BKC, C 27, G BlockBandra Kurla Complex, Bandra I,MumbaiMa400051IN

4

G52447307

100120642

KOTAK MAHINDRA PRIME LIMITED

30/08/2017

-

-

2858520.0

27BKC, C 27, G BlockBandra Kurla Complex, Bandra I,MumbaiMa400051IN

5

G40720799

100089094

KOTAK MAHINDRA PRIME LIMITED

25/03/2017

-

-

3068275.0

27BKC, C 27, G BlockBandra Kurla Complex, Bandra I,MumbaiMa400051IN

6

G38304697

100083102

KOTAK MAHINDRA PRIME LIMITED

22/02/2017

-

-

1870680.0

27BKC, C 27, G BlockBandra Kurla Complex, Bandra I,MumbaiMa400051IN

7

G38304887

100083104

KOTAK MAHINDRA PRIME LIMITED

22/02/2017

-

-

2163805.0

27BKC, C 27, G BlockBandra Kurla Complex, Bandra I,MumbaiMa400051IN

8

G35134410

100075965

KOTAK MAHINDRA PRIME LIMITED

11/01/2017

-

-

4340070.0

27BKC, C 27, G BlockBandra Kurla Complex, Bandra I,MumbaiMa400051IN

9

G35133867

100075963

KOTAK MAHINDRA PRIME LIMITED

10/01/2017

-

-

2481990.0

27BKC, C 27, G BlockBandra Kurla Complex, Bandra I,MumbaiMa400051IN

10

G32522096

100070152

KOTAK MAHINDRA PRIME LIMITED

22/12/2016

-

-

2923025.0

27BKC, C 27, G BlockBandra Kurla Complex, Bandra I,MumbaiMa400051IN

 

 

 

CONTINGENT LIABILITIES:

(INR in million)

PARTICULARS

31.03.2017

31.03.2016

(i) Taxes, Duties and Other demands (under adjudication / appeal / dispute)

 

 

Sales Tax and Service Tax

11245.000

11259.000

Income Tax

12527.000

16282.000

Customs Duty

4317.000

4254.000

Entry Tax

5509.000

5061.000

Stamp Duty

404.000

404.000

Municipal Taxes

121.000

122.000

Department of Telecom (‘DoT’) demands

36540.000

4809.000

Other miscellaneous demands

962.000

818.000

(ii) Claims under legal cases including arbitration

matters

 

 

-Access Charges / Port Charges

8733.000

8196.000

Others

599.000

610.000

 

 

FIXED ASSETS

 

STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31ST DECEMBER 2017

 

         INR in million

 

 

Particulars

quarter ended

quarter ended

9 months ended

 

 

 

31.12.2017

30.09.2017

31.12.2017

 

 

 

Unaudited

1

 

Income from Operations

 

 

 

 

 

Sales/Income from Operations (Gross)

126876.000

139801.000

411742.000

 

 

b) Other Operating Income

800.000

719.000

2035.000

 

Total Income from Operations (Net)

127676.000

140520.000

413777.000

2

Expenses

 

 

 

 

a)

Access Charges

33160.000

35191.000

105153.000

 

b)

Network operations Expenses

16820.000

21985.000

59806.000

 

c)

Licence fees and operation Charges

12882.000

14632.000

42922.000

 

d)

Employee benefit expenses

4202.000

4242.000

12870.000

 

e)

sales and marketing Expenses

7695.000

6578.000

22123.000

 

f)

Other expenses

9381.000

9194.000

29065.000

 

Total Expenses

84140.000

91822.000

271939.000

 

 

 

 

 

 

 

Profit /(Loss) from operations before other income, finance costs and exceptional items

43536.000

48698.000

141838.000

 

Depreciation And Amortization

33474.000

30690.000

95953.000

 

Finance Costs

15768.000

15843.000

45872.000

 

Finance Income

(3939.000)

(4379.000)

(9125.000)

 

Non-operating Expenses

14.000

351.000

463.000

 

Profit /(Loss) before exceptional items and tax

(1781.000)

6193.000

8675.000

 

Exceptional Items

473.000

835.000

1348.000

 

Profit /(Loss) before tax

(2254.000)

5358.000

7327.000

 

Tax Expense:

 

 

 

 

Current Tax

(1527.000)

489.000

689.000

 

Deferred tax

(1370.000)

(76.000)

(1756.000)

11

Net Profit /(Loss) from ordinary activities after tax

643.000

4945.000

8394.000

 

Other Comprehensive Income:

 

 

 

 

-       Remeasurement of Defined benefit plans

64.000

30.000

41.000

 

-       Tax (Charge) / Credit

(22.000)

(10.000)

(14.000)

 

Other Comprehensive Income for the year, net of taxes

42.000

20.000

27.000

 

Total Other Comprehensive Income for the period

685.000

4965.000

8421.000

 

 

 

 

 

12

Paid up equity share capital (Eq. shares of  INR 10/- each)

19987.000

19987.000

19987.000

13

Reserve excluding revaluation reserves

 

 

 

14

 

Earnings per share (before/after extraordinary items) of  INR 5/- each

 

 

 

 

 

Basic & Diluted

0.16

1.24

2.10

 

 

AUDITED STANDALONE SEGMENT WISE REVENUE SEGMENT ASSETS AND SEGMENT LIABILITY FOR THE QUARTER AND NINE MONTHS ENDED 31ST DECEMBER 2017

 

Particulars

quarter ended

quarter ended

9 months ended

 

31.12.2017

30.09.2017

31.12.2017

1.Segment Revenue

 

 

 

Net sales/income from each segment

 

 

 

a)Mobile Services

103004.000

115916.000

340353.000

b)Airtel Business

25456.000

25187.000

75453.000

c)Unallocated

6010.000

6188.000

18730.000

Total

134470.000

147291.000

434536.000

Less Inter Segment Eliminations

7594.000

7490.000

22794.000

Net Sales/Income

126876.00

139801.000

411742.000

 

 

 

 

2.Segment Results

 

 

 

Profit/(Loss) before tax, finance costs/(Income) and exceptional items from each segment

 

 

 

a)Mobile Services

2705.000

11077.000

25312.000

b)Airtel Business

7152.000

6179.000

18775.000

c) Horres Services

1093.000

1039.000

3418.000

Total Segment Results

10950.000

18295.000

47505.000

Unallocated

(888.000)

(287.000)

(1620.000)

Total

10062.000

18008.000

45885.000

Less :

 

 

 

(i) Net Finance Cost

11829.000

11464.000

36747.000

(ii) Non-operating Expenses

14.000

351.000

463.000

(iii) Exceptional Items

473.000

835.000

1348.000

Profit/(Loss) before tax, finance cost and exceptional items

(2254.000)

5358.000

7327.000

3. Segment assets

 

 

 

a)Mobile Services

1341521.000

1332272.000

1341521.000

b)Airtel Business

95927.000

85985.000

95927.000

c) Horres Services

46914.000

45442.000

46914.000

Total Segment assets

1484362.000

1463699.000

1484362.000

d) Unallocated / Inter-segment eliminations

515009.000

536790.000

515009.000

Total assets

1999371.000

2000489.000

1999371.000

 

 

 

 

4. Segment liabilities

 

 

 

a)Mobile Services

335268.000

35430.900

335268.000

b)Airtel Business

34899.000

31377.000

34899.000

c) Horres Services

19495.000

17112.000

19495.000

Total Segment liabilities

389662.000

402798.000

389662.000

d) Unallocated / Inter-segment eliminations

593080.000

581835.000

593080.000

Total liabilities

982742.000

984633.000

982742.000

 

Note:

 

1. The said financial results for the quarter and nine months ended December 31, 2017 have been reviewed by the Audit and Risk Management Committee and approved by the Board of Directors in their respective meetings held on January 18, 2018.


2. The above financial results are extracted from the Audited Interim Condensed Standalone Financial Statements of the Company, which are prepared in accordance with Indian Accounting Standards ('Ind AS') as prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder


3. During the quarter ended December 31, 2017, the Board of Directors of the Company approved the scheme(s) of arrangement under section 230 to section 232 of the Companies Act, 2013, for the demerger of consumer mobile business of Tata Teleservices Limited and Tata Teleservices (Maharashtra) Limited into the Company. The said transaction is subject to requisite regulatory approvals.


4. During the quarter ended December 31, 2017, the Company has entered into an agreement to sell 15% equity stake in Bharti Telemedia Limited, a subsidiary of the Company. The said transaction is subject to requisite regulatory approvals and other closing conditions


5. During the quarter ended December 31, 2017, the Board of Directors approved a scheme of arrangement under section 230 to section 232 of the Companies Act, 2013, for the transfer of the optical fiber cable business to the Telesonic Networks Limited, a wholly owned subsidiary of the Company. The said transaction is subject to requisite regulatory approvals


6. Exceptional items during the quarter ended December 31, 2017 represent charge of INR 473.000 Million towards operating costs on network re-farming and up-gradation program Tax includes impact of INR (164.000) Million pertaining to above exceptional item and INR (1610.000) Million pertaining to re-assessment of tax provisions for previous periods


7. The Board of Directors at its meeting held on January 18, 2018, has declared interim dividend for the financial year 2017-18 of INR 2 84/- per equity share (face value : INR 5/- each).


8. On January 8, 2013, the Department of Telecommunications ('DoT') issued a demand on the Company for INR 51,353 Mn towards levy of one time spectrum charge Based on a petition filed by the Company, the Hon’ble High Court of Bombay, through its order dated January 28, 2013, has directed DoT to respond and not to take any coercive action until the next date of hearing The Company, based on independent legal opinions, till date has not given any effect to the above demand


9. Previous period figures have been re-grouped / re-stated basis the Ind AS 101, 'First-time Adoption of Indian Accounting Standards’ exemptions as considered in the Ind AS financial statements for the year ended March 31, 2017, wherever required

 

 

PRESS RELEASE

 

AIRTEL JOINS GLOBAL ALLIANCE TO BRING HIGH-SPEED IN-FLIGHT DATA CONNECTIVITY TO CUSTOMERS

 

"Airtel has joined the Seamless Alliance which will usher in a new era of open innovation for mobile operators and   airlines by empowering mobile operators to extend their services into airline cabins," the statement said.

 

February 26, 2018

 

India’s largest telecom operator Bharti Airtel on Monday said it has joined a new global collaboration to bring high-speed and uninterrupted in-flight data connectivity to mobile customers. The global partnership Seamless Alliance, whose other founding members include OneWeb, Airbus, Delta and Sprint, will work towards leveraging satellite technology to offer high-speed data connectivity to mobile users even when they are up in the air, an Airtel statement said.

 

“Airtel has joined the Seamless Alliance which will usher in a new era of open innovation for mobile operators and airlines by empowering mobile operators to extend their services into airline cabins,” the statement added. The global initiative, announced today in Barcelona, will also look at bringing into its fold other industry operators beyond the five founding members.

 

Together, these members hope to “eliminate the immense costs and hurdles commonly associated with acquisition, installation, and operation of data access infrastructure”.  This will be done by streamlining system integration and certification, providing open specifications for interoperability, increasing accessibility for passengers, and enabling simple and integrated billing, the statement added.

 

“We are delighted to be a founding member of this innovative technology platform to bring seamless connectivity to customers in the true sense,”  Gopal Vittal, CEO (India & South Asia), Bharti Airtel, said. Over 370 million mobile customers across Airtel’s global network will be able to enjoy uninterrupted access to high-speed data services even while they are in-flight, he added.

 

Airtel is the third largest mobile operator in the world with operations in 16 countries across Asia and Africa. “We look forward to collaborating with all partner members to ensure this platform goes Live at the earliest,” Vittal said.

 

 

 

 

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 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 64.66

UK Pound

1

INR 90.65

Euro

1

INR 79.69

 

 

INFORMATION DETAILS

 

Information Gathered by :

SPR

 

 

Analysis Done by :

NSR

 

 

Report Prepared by :

SUJ

 

SCORE FACTORS

 

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

 

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.